TIME

Here’s What a Ticket Does to Your Car Insurance Rate

Car driving through intersection with photo enforced camera radar.
Theo Fitzhugh—Alamy New technology aims to help drivers avoid getting speeding tickets from one of these roadside cameras.

Demographic differences play a big role

Getting a traffic ticket is bad enough, but what’s even worse is getting stuck with higher insurance premiums as a result. Whether or not a ticket will mean those costly extra charges, though, depends on a few things — and they’re factors that are largely out of your control.

In a new survey, InsuranceQuotes.com digs into the demographics of who pays higher insurance premiums after getting a ticket, and it finds that not all drivers are created equal.

First, the good news: Just under one in five drivers will be stuck paying higher premiums after getting a ticket, compared to nearly a third just two years ago.

When it comes to avoiding a premium hike after the fact, being older helps. InsuranceQuotes finds that drivers under the age of 50 are three times likelier to pay higher rates after a ticket than those 50 years old and older. Part of this could be due to how often insurance companies take a peek at your driving record: Younger drivers — who have a reputation for riskier driving — are checked more frequently than older drivers.

But drivers under the age of 30 are actually less likely to get tickets in the first place than those between the ages of 30 and 49, the survey finds.

Wealthier drivers are also more likely to get ticketed. Those with incomes of $75,000 or higher were the most likely income bracket to be ticketed — although they’re less likely that the poorest drivers to see a subsequent rise in their insurance rates.

While 21% of the wealthiest drivers paid higher premiums after a ticket, 24% of those earning under $30,000 a year had to pay higher rates. Drivers who earn between $30,000 to just under $50,000 fare the worst: 27% of those who got tickets saw higher rates.

In terms of income brackets, the sweet spot seems to be the upper-middle income bracket, as just 7% of those who earn between $50,000 and just under $75,000 paid higher premiums after a ticket.

Also, racking up more than one moving violation also increases the likelihood of having to pay more for insurance. While the most common citation, by far, is speeding, other common infractions include driving without a license, not using a seat belt, running a red light or stop sign, or using a cell phone while driving. InsuranceQuotes finds that, among drivers who have been ticketed over the past five years, just over 10% accrued four or more tickets.

MONEY Autos

3 Ways to Avoid Costly Rental Car Insurance

airport sign for car rental companies
Chris Rank—Bloomberg via Getty Images

When you rent a car, you will be asked if you want car rental insurance. You might already have it — but it may have gaps. Here's how to figure it out.

I’ve been rear-ended in a rental car by a hit-and-run driver. And on my last business trip, the rental agent almost foisted a car with a scratched-up bumper on me. (Thankfully, I remembered to inspect the vehicle before I left the lot and asked for a different one.) So I know firsthand the importance of making sure you have adequate coverage when you rent a car. Without it, you could face enormous bills and a damaged credit rating if you can’t pay them.

But I am also frugal, so there is often a tug-of-war going on in my head when I rent a car: do I pay for the rental car company’s coverage or not? Purchasing it can literally double the cost of a car rental. Sometimes the coverage is even more expensive than the daily rental rate.

Fortunately there are some good alternatives for those who want to be protected and save money.

1. Your Own Car Insurance

If you own a car, then you (hopefully) have car insurance, and this is probably your first line of defense. You want to make sure you are adequately covered in four areas:

Loss of use: If you wreck a rental car, the rental agency will charge for the days that car is unavailable to other customers. My own auto insurance does not provide this coverage, so I use a credit card that fills this gap. (More on that in a moment.)

Collision/Comprehensive: Collision coverage typically covers damage to the vehicle if you are involved in an accident, while comprehensive coverage often pays for damage to the car due to theft, vandalism, flood, fire etc. Remember, your current deductible will apply. (Using the right credit card to pay for the rental can be helpful, since it may cover your deductible.)

Liability: This generally covers damage to another vehicle(s) and/or medical bills to others injured in an accident you caused. If you have an umbrella policy, that coverage may provide additional protection.

Medical/ Personal Accident Coverage: Does your personal auto insurance offer coverage for medical bills sustained in an accident, and will that extend to a rental car? Do you have good medical insurance? (Note, consumers who are injured in an accident sometimes find their own medical insurer balks at paying those medical bills.)

2. Your Credit Card Coverage

Many credit cards offer rental car coverage. This insurance is usually secondary to your personal auto policy, and that the claim will first be filed with your own insurer. (A few credit cards automatically include primary coverage.) But it may cover deductibles or expenses that your personal auto insurance doesn’t, such as loss of use. However, you’ll need to be aware of exclusions, which may include rentals in some foreign countries, certain types of vehicles such as pickup trucks or full-sized vans, or travel on unpaved roads. Full-time students may also be excluded from coverage.

Like most third-party coverage, it typically covers expenses related to the rental car but not to other cars you damage or people or property you damage in an accident. For example, when I reviewed the coverage offered by the credit card I use most often, I noticed the following are not covered:

  • Damage to any vehicle other than the rental car;
  • Damage to any property other than the rental car, owner’s property, or items not permanently attached to the rental vehicle;
  • The injury of anyone or anything.

Perhaps the most important thing to keep in mind here is that you need to read the details about what is and isn’t covered before you get to the rental car counter.

If you’re thinking about getting a new credit card that provides rental car coverage, keep in mind that your credit score will be a factor in whether you’re approved. You can check your credit scores for free on Credit.com to see where you stand.

3. Private Third-Party Coverage

If you purchase travel insurance, you can often add rental car coverage for a small additional fee, says Damian Tysdal, publisher of TravelInsuranceReview.net. But, as with credit card coverage, it usually doesn’t cover everything. “It is really just for collision and loss of use,” he says. “It won’t cover a car you hit, or harm to others.”

You can also purchase coverage through a third party, even if you don’t buy travel insurance. For example, American Express cardholders can buy “Premium Rental Car Coverage” for most rentals for a flat fee of $19.95 or $24.95 per rental (not per day). It is primary coverage, and there is no deductible. It also provides additional coverage for accidental death and secondary coverage for medical expenses, and covers vehicles the basic automatic coverage doesn’t (such as luxury vehicles and SUVs).

Other third-party services such as Protect Your Bubble, offers rental car coverage for $7.99 per day and covers rental car damage and theft, and personal effects protection, with no deductible. However, like other third-party coverage, it doesn’t include additional liability coverage or personal accident insurance so you’ll want to make sure you are adequately covered there through your own insurance policy or find out whether that coverage is available through your rental agency.

“If you are looking for the best coverage, look to your personal auto insurance,” says Tysdal. If you don’t own a car or have minimal coverage on your vehicle, you may need to piece together the best coverage you can from the options available.

More from Credit.com

This article originally appeared on Credit.com.

TIME United Kingdom

Daring Thieves in London Have Made Off With as Much as $300 Million in Valuables

A police forensics officer enters the Hatton Garden Safe Deposit company in London Tuesday May 7, 2015 after it was burgled over the weekend.
Dominic Lipinski—AP A police forensics officer enters Hatton Garden Safe Deposit Ltd. in London on April 7, 2015, after it was burgled over the weekend

No, this is not a movie plot

A crack team of thieves broke into a vault in central London’s gem district over the weekend and raided up to 70 safety deposit boxes, making off with a staggering fortune in jewels, cash and other heirlooms.

Though police have not confirmed the value of the haul, the former chief of the Flying Squad (a London police branch that specializes in organized crime) Roy Ramm estimates the jewelry stolen during the heist could be worth as much as $300 million, reports the BBC.

Users of the safety deposit boxes at Hatton Garden Safe Deposit Ltd. still do not know if they are among the victims, as police continue to forensically examine the scene.

One local jeweler, Michael Miller said he “felt sick” at the prospect of losing up to $74,000 of uninsured watches and jewelry.

Many other users of the depository did not insure the contents of their boxes because of the high cost of premiums.

“If you can’t afford your jewelry insurance, you put it in a safety deposit box which is going to cost you between £300 [$450] to £400 [$600] a year and you know it is the most secure place you can put it,” said James Riley, a gem industry expert.

Using heavy cutting equipment, the thieves are believed to have accessed the vault via a lift shaft, drilling into the vault to reach the boxes.

“There is still a concern that the thieves may have had some kind of inside knowledge,” said BBC News correspondent Daniel Sandford.

Tracing the stolen gems would be nearly impossible says diamond dealer Neil Duttson. “Once diamonds have been recut and polished there is no geological map,” he said.

[BBC]

MONEY Insurance

Millions of Americans’ Flood Insurance Rates to Increase

With the National Flood Insurance Program in debt, many Americans will see a 25% premium increase in their flood insurance.

TIME Innovation

Five Best Ideas of the Day: March 17

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. Is it time for the Jews to leave Europe?

By Jeffrey Goldberg in the Atlantic

2. The divorce rate is falling. Here’s why that’s bad news for some Americans.

By Sharadha Bain in the Washington Post

3. Across the planet, cost and class determine who lives and who dies.

By Paul Farmer in the London Review of Books

4. The U.S. should consider joining — rather than containing — the Chinese-led Asian Infrastructure Investment Bank.

By Elizabeth C. Economy in Asia Unbound

5. Trade unions in Cleveland will launch a “pre-apprentice” program to prepare high school kids for construction jobs.

By Patrick O’Donnell in the Cleveland Plain Dealer

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

MONEY Insurance

Injured Workers Are Getting Raw Deals

People injured on the job are getting shortchanged by workers' compensation, while employers and insurance companies are benefiting.

MONEY Insurance

The Fastest Way to Shore Up Your Safety Net

Treadmill screen with dollar sign on it
Alamy

You can make sure you have enough life insurance in less time than it takes to make a sandwich

As part of our 10-day series on Total Financial Fitness, we’ve developed six quick workouts, inspired by the popular exercise plan that takes just seven minutes a day. Each will help kick your finances into shape in no time at all. Today: The 7-Minute Insurance Check-Up

You’ll need some financial info for this one. Pull together an overview of your investments, what you owe on your mortgage, the amount of life insurance you currently have, as well as saving and debt numbers.

0:00 Visit lifehappens.org, and select “Start calculating your life insurance needs.”

0:21 The first part asks about the expenses your family will incur if you die. Life-Happens suggests budgeting $15,000 or 4% of your estate. A funeral typically costs about $10,000, so if you won’t leave major debts, $15,000 is fine.

2:30 Next, you’ll calculate the money your family would need if you died today, and how much your spouse might earn. While your clan won’t need to replace 100% of your income, you will want to cover regular expenses.

4:19 Step 4 asks for an estimated inflation rate (pre-populated with 3%) and after-tax net investment yield (pre-populated with 6%). To be more conservative, decrease the yield.

5:00 Now the site will spit out a suggested amount of coverage. This is a good starting point but may miss some details. Say you’d like to cover a portion of your kid’s tuition; the calculator doesn’t allow for partial payment.

5:59 Go to intelliquote.com for instant quotes on term-life policies from a range of insurers. (Don’t be surprised if you get some sales calls.)

Easy, right? Next you’ll want to do an insurance inventory to check the health of all your policies. Not only will you be better protected, you might save some money too.

Previous 7-minute Workouts:

MONEY Baby Boomers

How to Work Less—Without Giving Up Your Career

Briefcase with fishing lures
Zachary Zavislak

It's called "phased retirement," and it's catching on.

The youngest baby boomers have just turned 50, bringing retirement within sight for the entire generation. But many boomers don’t expect to work at full throttle until the last day at the office. More than 40% want to shift gradually from full- to part-time work or take on less stressful jobs before retiring, a recent survey by Transamerica Center for Retirement Studies found.

It’s a concept called phased retirement, and it’s catching on. Last November the federal government okayed a plan to let certain long-tenured workers 55 and up stay on half-time while getting half their pension and full health benefits. Says Sara Rix, an adviser at AARP Public Policy Institute: “The federal government’s program may influence private companies to follow their lead.”

Formal phased-retirement plans remain rare; only 18% of companies offer the option to most or all workers. Informal programs are easier to find—roughly half of employers say they allow older workers to dial back to part-time, Transamerica found. But only 21% of employees agree that those practices are in place. “There’s a big disconnect between what employers believe they are doing and what workers perceive their employers to be doing,” says Transamerica Center president Catherine Collinson.

So you may have to forge your own path if you want to downshift in your career. Here’s how:

Resist Raiding Your Savings

Before you do anything, figure out what scaling back will mean for your eventual full retirement. As a part-timer, your income will drop. Ideally you should avoid dipping into your savings or claiming Social Security early, since both will cut your income later. If you’re eligible for a pension, the formula will heavily weight your final years of pay. So a lower salary may make phased retirement too costly.

Cutting back your retirement saving, though, may hurt less than you think. Say you were earning $100,000 and split that in half from 62 to 66. If you had saved $500,000 by 60, and you delay tapping that stash or claiming Social Security, your total income would be $66,700 a year in retirement, according to T. Rowe Price. That’s only slightly less than the $69,500 you would have had if you kept working full-time and saving the max until 66.

Start at the Office

If your employer has an official phased-retirement program, your job is easier. Assuming you’re eligible, you might be able to work half-time for half your pay and still keep your health insurance.

Then ask colleagues who have made that move what has worked for them and what pitfalls to avoid. Devise a plan with your boss, focusing on how you can solve problems, not create new ones with your absence. Perhaps you can mentor younger workers or share client leads. “Don’t expect to arrange this in one conversation—it will be a negotiation,” says Dallas financial planner Richard Jackson.

Without a formal program, you’ll have to have a conversation about part-time or consulting work. To make your case, spell out how you can offer value at a lower cost than a full-time employee, says Phil Dyer, a financial planner in Towson, Md.

Giving up group health insurance will be less of a financial blow if you are 65 and eligible for Medicare, or have coverage through your spouse. If not, you can shop for a policy on your state’s insurance exchange. “Even if you have to pay health care premiums for a couple of years, you may find it worthwhile to reduce the stress of working full-time,” says Dyer.

Do an Encore Elsewhere

This wind-down could also be a chance to do something completely different. Take advantage of online resources for older job seekers, including Encore.org, RetiredBrains.com, and Retirement-Jobs.com. You can find low-cost training at community colleges, which may offer programs specifically to fill jobs for local employers. Or, if you want nonprofit work, volunteer first. Says Chris Farrell, author of Unretirement, a new book about boomers working in retirement: “It’s a great way to discover what the organization really needs and how your skills might fit in.”

Sign up for a weekly email roundup of top retirement news, insights, and advice from editor-at-large Penelope Wang: money.com/retirewithmoney.

MONEY car insurance

When it Makes Financial Sense to File an Auto Insurance Claim—and When It Doesn’t

When to file a car insurance claim
Guido Mieth—Getty Images

How to tell if the bump in your premiums will exceed the money you'll get back

Getting into a car accident is bad enough—you’re shaken, your vehicle is damaged, and worst of all, you or someone else may be hurt. Adding insult to injury, auto insurers these days are hiking policyholders’ rates sky-high after just one accident, even when a driver has an otherwise impeccable record.

A single claim boosts the premium by an average of 41% nationwide, according to a recent study by InsuranceQuotes.com. And in some states, the jump can be as much as 76%. (Massachusetts, California, and New Jersey are the worst.)

Considering that the average premium is $815, a fender-bender could cost you an additional $334 to $619 per year.

Even simply calling your insurer to discuss your options can have consequences. “As soon as you start talking about something that just happened, it goes on your record—it’s called an inquiry,” says Amy Danise with Insure.com. “If you build up inquiries, even if you never get a dime from a claim, you can still be viewed as high-risk, and that can affect your rates.”

All this means that you’ve got yet another thing to think about after a crash: whether you should file a claim or pay repair costs out of pocket. This road map can help you make at least that part of the situation easier.

When You’ve Had an Accident and Someone Else is Involved

You’re better off claiming, says Laura Adams, senior analyst for InsuranceQuotes.com.

If you’re at fault, and you hit another person or vehicle, he has the right to make a liability claim against you, and he could potentially sue. With insurance, you’re entitled to a legal defense and coverage of a judgment against you up to a certain amount. “The average liability claim is $15,000,” says Adams. “In those cases, it’s hard to conceive of a situation where you wouldn’t want to make that claim.”

Even if the damage seems minor, and you and the other driver agree that you’ll handle everything yourselves, that approach can backfire. “I’ve heard of cases where the other person called later and said, ‘Send me $3,000,’” says Insure.com’s Danise.

And if you wait too long to loop your insurer in—say, after you’re notified that the other driver has filed suit against you—the insurer could deny your claim entirely.

“You’re better off saying, ‘Here’s my insurer, here’s my policy number,’ and handing it off so the insurer can deal with that person,” says Danise.

150218_FF_CarAccident_ClaimPrice

When You’ve Had an Accident and No One Else Is Involved

Let’s say you back into your garage door or hit a guardrail when you skid in the snow. You’re at fault, but the only car affected is yours.

As long as you’re fairly sure there won’t be any lingering medical issues, you’re better off paying out of pocket if you can afford it.

Of course, the more money it costs to fix, the less you can probably afford it—and the more it will raise your rates.

For property damage claims of under $1,000, rates will go up 18% on average, according to numbers from Insure.com. For claims over $1,000, it’s more like 29%.

Not sure? Check out the “When to Make an Insurance Claim” calculator at InsuranceQuotes.com to see how it looks in your state.

When Your Car was Damaged, but Not in an Accident

If a tree limb falls on your hood or your car gets burglarized, that’s not your fault—and insurance companies generally won’t punish you for it.

Even if you file a comprehensive claim of $2,000 or more, you’re looking at an average rate hike of just 2%, or about $18, according to InsuranceQuotes.com. So if the damage goes above your deductible by more than a few hundred dollars, there’s no harm in claiming it.

…And If You File a Claim For Any Reason and See Your Rates Rise as a Result

Ask your insurer for the surcharge schedule—which should tell you how long it will be before your premiums return to normal levels.

Also, remember that not all insurers give accidents the same weight, so you can always shop around for a cheaper policy.

More from Money.com:

25 Ways to Get Smarter About Money Right Now

How I Plan for the Stock Market Freak-out…I Mean Sell-off

What Women Can Do to Increase their Retirement Confidence

MONEY Health Care

Why You’re Still Paying for Birth Control Even Though It’s “Free” Now

150211_FF_BirthControl
Laura Johansen—Getty Images

Most women with private health insurance can get contraception for free, but a lack of information means some are still paying out of pocket—even when they shouldn't be.

A record scratch sounded in my head one weeknight this January, when a pharmacist at my local drugstore told me my birth control pills would—for the first time—cost more than $50 a month.

Strange, I thought, since I could have sworn I heard contraception was one of the preventive health services that are free under the Affordable Care Act, and that the law was rapidly expanding access for most women, with at least 67% of insured women on the pill paying $0 (up from only 15% in 2012), according to a recent study by the Guttmacher Institute. Perplexing.

After all, I don’t work for an exempted religious organization or a company such as Hobby Lobby, which in a Supreme Court case last year won the right to deny contraceptive coverage because of conflicting beliefs. And the same pills—Ortho Tri-cyclen Lo—cost me nothing under my old health plan. Sure, I had switched insurance companies in the new year (to Aetna, the third largest in the country), but I’d opted for a high-premium Gold plan. A monthly copay on par with the cost of an iPod shuffle seemed hefty and unfair.

So I left the pharmacy empty handed and went home to call Aetna.

My happiness was brief when a customer service agent informed me that—while most brand-name pills had a copay—I could simply switch to a free generic version of the same compound. The problem? Turns out there is no generic version of Ortho Tri-cyclen Lo yet. So I was trapped, much like women whose insurance companies have denied them coverage for the NuvaRing, reasoning that they can take generic pills with the same hormones—even though the Department of Health and Human Services has been clear that the ring is a distinct form of contraception (and should therefore be free).

I hesitated to simply choose a different generic for a reason that should not surprise the many other women who have tried multiple birth control methods: Switching from pill to pill in the past caused me side effects, which thankfully subsided once I finally found one that worked for me.

“People respond differently to different pills and a change can cause side effects like irregular bleeding and headaches,” says Jill Rabin, an ob-gyn and professor at Hofstra North Shore-LIJ School of Medicine. “There’s no predicting how someone will do unless they try it.”

The pressure I felt to switch seemed especially unjust given this aspect of the law: While women can be charged a copay for brand name drugs when an equivalent generic is available, this Department of Labor FAQ explains, “if, however, a generic version is not available, or would not be medically appropriate for the patient” as determined by her doctor, “then a plan or issuer must provide coverage for the brand name drug … without cost-sharing.”

When I brought my dilemma (and the fact that I was a journalist planning to write about it) to Aetna’s director of communications, Susan Millerick, she took swift action. Within a week, I had my Ortho Tri-cyclen Lo, free of copay.

“It is always Aetna’s intent to abide by the laws that govern our health benefits coverage, and to fairly interpret and apply all laws and regulatory guidance on behalf of our customers and members,” Millerick wrote in an email.

Millerick’s explanation for what had happened suggests any woman would be wise to question any insurer denial for contraceptive; she said Aetna’s “service reps erred” in not telling me about the option to appeal the copay. I should have been told that I could just ask my doctor to call and verify that I really needed my pill and that a different generic would not suffice.

The good news for many women is that simply being informed of your options—and getting your doctor on your side—may be enough to go from paying a wallet-draining copay to nothing at all, says Rabin.

“Figuring out the best contraception that minimizes cost and maximizes efficacy is a conversation that should be between doctor and patient,” Rabin says. “Most doctors don’t want that decision taken out of their hands and would be happy to help make that call for their patients.”

For those women who encounter more resistance than I did—or find, as Kaiser Health News reported, that certain insurers are even trying to wriggle out of covering generics—there are other resources to turn to, like the National Women’s Law Center. Their website has clear instructions on how to fight back if you think your insurer is unfairly denying you free birth control, with templates for appeal letters and a free hotline (866-745-5487) for additional assistance.

Even with all the progress, thousands of women have been contacting the NWLC’s hotline in recent months after running into problems getting free contraceptives, says Mara Gandal-Powers, a lawyer at the NWLC.

Generally, the biggest obstacle to free birth control access right now is ignorance, she says. Many women—and their insurance representatives, doctors, and pharmacists—aren’t on the same page about whether their particular contraception should have a copay or not. Instead of doing a double take at the cost of their contraceptives, Gandal-Powers says, some women never question the charge.

That’s a compelling reason to double check your insurer, pharmacist, and even doctor’s assumptions.

“There is definitely a lot of education that still needs to happen,” says Gandal-Powers, “not just among women themselves but also among health care providers and pharmacists.”

Beyond a lack of education, a few more obstacles to universally free birth control remain. Besides the religious exemption, there’s also a subset of insurance plans that are “grandfathered” in such a way that they don’t have to cover contraception right away—though they will in coming years. Enrollment in grandfathered plans is dropping, with only 26% of covered workers enrolled in a grandfathered health plan in 2014, down from 56% in 2011, according to the Kaiser Family Foundation. Another exception is self-funded student plans.

The takeaway? If you’re paying more than $0 for birth control, it can’t hurt to do a little digging. If you are lucky (and persistent), you could end up pushing your insurer to better comply with the law—and save hundreds of dollars a year, to boot.

Your browser is out of date. Please update your browser at http://update.microsoft.com