Auto Insurance and Cell Phones

Studies have shown that driving while texting can be as dangerous as driving under the influence. Because of this many states have passed legislation to make certain types of cell phone usage against the law. In some cases, using a cell while driving can cause you to obtain a "careless driving" violation which may impact your auto insurance rates.

In the past decade six states have passed a ban on cell phone use while driving. These states include Connecticut, California, New York, New Jersey, Washington and Utah. The District of Columbia has also passed this. There are six states who have authorized cities to ban cell phone use including Pennsylvania, Ohio, New Mexico, Michigan, Massachusetts and Illinois.

To learn more on this topic you can read the full article http://www.iihs.org/laws/cellphonelaws.aspx.

Health Insurance Reform - What Do Doctors Think

Lindsey Tanner wrote an article entitled “Doctors signal they’ll work with Obama” published in the Associated Press discussing Obama's meeting with the American Medical Association (AMA).

The AMA is a group of doctors representing the nation. Traditionally, the AMA is conservative and have fought previous administrations' health care reform attempts. There was speculation that they were going to create an obstacle for Obama and his health insurance plan. But after Obama spoke to the doctors at their annual meeting in Chicago, the AMA signaled that they won't close the door on his health insurance proposal. Specifically, they are not against the part where public health insurance will compete with private insurers.

Obama's trip to Chicago for this meeting shows how much the President values the AMA's support. They would have liked a stronger endorsement, but this is a small battle in the large fight ahead for the Obama administration.

Auto Insurance Prices Drop in May

More and more Americans are trying to save money so it comes as good news that auto insurance rates dropped in May according to an article on IFAWebnews. The average rate was as low as $1871 in May, 2009. It got as high as $1950 in Sept, 2008.

It's a good time for lower auto insurance rates because industry experts say new auto sales will be increasing, potentially by 9%, in June over May. Dealers are trying to get 2009 cars off the lots to make room for the 2010 cars coming in. As buyers purchase new cars they will need to update their auto insurance policies and many will shop around. Because of the economy slump new car sales have been down. A pick up in car sales will have an impact on auto insurance. Having a new car may change your insurance rate so it's important to get a quote from numerous auto insurance companies to ensure you are getting the best deal.

Health Care Spending Needs to be Lowered

A report was released today by President Obama's economic team stating that the growth in health care spending needs to be decreased from 6% to 4.5% to show huge benefits for the economy. Some of these benefits would include creating up to 500,000 new jobs and increasing the average family income by $2600 over the next 10 years. Cutting these health insurance costs and covering the 46 million people who are currently not insured would increase economic stability by about $100 billion per year.

This goal is incredibly aggressive and barely seems possible. Obama's economic advisers realize that decreasing spending by 1.5% will be very challenging, but if the goal can be attained it could mean a huge benefit for companies, families and the US economy, which is definitely needed. Health care spending right now accounts for 18% of gross domestic product and could be up to 34% by 2040 if reform does not take place. Obama also met with industry leaders recently who are pledging to find $2 trillion in health savings over 10 years. It is definitely a priority on Obama's agenda and he thinks reform is a must.