HEALTH INSURANCE INFORMATION

The rising cost of medical care and the resulting pressure on health insurance premiums makes health insurance top priority if you want to have your health expenses covered at a reasonable cost. The current health insurance system is quite complex and constantly changing. The information below may help answer your questions:

What kinds of health insurance are there?

There are essentially two kinds of heath insurance: Fee-for-Service and Managed Care. Although these plans differ, they both cover an array of medical, surgical and hospital expenses. Most cover prescription drugs and some also offer dental coverage. Fee-for-Service These plans generally assume that the medical professional will be paid a fee for each service provided to the patient. Patients are seen by a doctor of their choice and the claim is filed by either the medical provider or the patient. Managed Care More than half of all Americans have some kind of managed-care plan. Various plans work differently and can include: health maintenance organizations (HM0s), preferred provider organizations (PPOs) and point-of-service (POS) plans. These plans provide comprehensive health services to their members and offer financial incentives to patients who use the providers in the plan.

AUTO INSURANCE INFORMATION

What is auto insurance?

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage: Property coverage pays for damage to or theft of your car. Liability coverage pays for your legal responsibility to others for bodily injury or property damage. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium. Q: If I don't have auto insurance, and am involved in an accident that is completely not my fault, will the party at fault's insurance pay for the repairs to my car? A: Yes, assuming that unlike you, the “party at fault” is carrying at least basic liability coverage, his or her insurance will pay for the damage incurred by their client. However, if the fault for the accident is shared, for example 50-50, then the other driver’s insurance will cover his or her portion of the damage, but will only cover your portion if the other driver is also carrying uninsured motorist insurance. However, uninsured motorist insurance is not obligatory in every state, and you should not count on it. Whatever the insurance situation of the other party, not carrying auto insurance is against the law, so you would be wise to buy it. Penalties for non-compliance with insurance laws vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states.