A new study found that insurance claims submitted for damaged HVAC units were overpaid by 65%. That includes claims submitted during the first half of 2011. The study found that many insurance companies were paying for entire units to be replaced when minor repairs would have done the job just fine. “Our research found that the average claim submitted to insurance companies was the result of a homeowner being told by an HVAC company that their unit was in need of a full replacement, when in actuality, a minor repair would bring the system back to pre-loss condition,” stated Damon Stafford of HVAC Investigators, the company responsible for the study in a news release. “It becomes a self-fulfilling prophecy … homeowners experience an issue, contact a local HVAC contractor, and in turn unknowingly file a fraudulent claim. That’s in essence how the game has worked for the past 30 years.”

Insurance fraud is the second most costly white-collar crime after tax evasion. That’s according to the Insurance Information Institute. Insurance fraud totals more than $29 billion a year. The National Insurance Crime Bureau says that fraud causes insurance premiums to increase by nearly $300 every year per household. For many insurance companies, it’s cheaper to pay the claim than to hire professionals to seek the truth.

HVAC Investigators assists with investigating heating and air conditioning claims. They diagnose the damage and make a recommendation of whether replacement or repair is needed. “We’re excited about the positive impact we’re having on the insurance industry,” Stafford remarked in a news releaes. “We realized several years ago that the HVAC property claims were on a dangerous trajectory, and fraud was taking its toll. When carriers understand that they can save, on average, somewhere between $3,000 and $4,000 per claim, they begin to grasp that this is something they should be paying attention to. It’s important, and everyone we come into contact with ‘gets it.’ It’s very rewarding work.”

No matter what goal you’re working towards– taking a trip to Europe, buying a home, helping your kids through college– you likely need money to make it happen. But a new survey from nonprofit LIFE Foundation found that only one in six working Americans consider their paychecks their most valuable assets. The organization says many people fail to consider what their back up plan is in the event that they become sick or injured and can no longer work.

If you become disabled, your finances will most likely be impacted. According to LIFE Foundation, a 25-year-old who earns $50,000 a year could lose $3.8 million in future earnings if they become permanently disabled. Despite that information, fewer than one in three workers carry long-term disability coverage according to the US Department of Labor. “Most people don’t realize that they have a three in 10 chance of suffering a disabling illness or injury that could keep them out of work for three months or more,” Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation said in a statement. “Disability insurance makes sure that financial hardship doesn’t follow the physical and emotional toll that comes along with disability. It’s insurance for your income. When you think about it, your most valuable asset isn’t your home, car or jewelry. It’s what allows you to pay for all these things – it is your paycheck.”

Wondering how to get disability insurance? For many it’s available through employers. Your employer may offer short and long term group policy coverage at little or no cost. You can also check with professional associations which can offer insurance options to members.

For those people looking for a way to reduce their car insurance, home insurance or other insurance premium costs, you may want to look at your credit report. Your credit report is not often thought of as having a link to your car insurance needs, but it is, in fact, one of the biggest and best tools for you to use to get a lower cost. The reason for this is your insurance provider’s need to know how risky it is to work with you. Some companies are using credit reports to determine risk factors related to car insurance.

What’s The Link?

What could be the link between credit scores and insurance premiums? Many car insurance providers, home insurance providers and even some other insurance companies use credit scores to determine how much of a risk you are to them. If you are a new customer with a company, for example, the company will likely pull a credit report on you to determine what type of a borrower you are. Here’s why.

• If you have a higher credit score, research and evidence points to you having, most likely, smaller car insurance plans.
• If you have a lower credit score, evidence shows that you are more prone to having more car insurance claims.

The two may not seem like they should be linked, but in fact they are. This information on the link between credit history and claim filing is one based on research from the various car insurance companies. They looked back at drivers over a period of time and found a link between these two factors. In short, those drivers who have good credit scores are also better drivers.

What You Can Do

How will your credit report affect your application with an insurance company? The fact is, that depends on what is on your credit report. If you have not done so yet, get a free copy of your credit report at AnnualCreditReport.com (the only, government-authorized site for accessing your free credit report from each of the three largest credit bureaus.) Then, ensure it is up to date and accurate.

It is also a good idea to be a good credit user. Make your payments on time. Ensure you pay down debt and live within your means. By doing these things, you not only boost your ability to manage your credit debt, but you also may end up with a lower car insurance premium or house insurance premium as a direct result. If your credit score goes up, do not expect your car insurance company to automatically reduce your premium, but you can call the insurer and ask for a better rate.

Idaho, like most of the country, has been affected by this year’s record-breaking spike in the cost of crude oil The cost of gas in Idaho, like most places in America, has topped $4 per gallon. Statistics from the Idaho Department of Insurance indicates that Idaho residents have coped with this situation by ditching their cars. More and more Idaho residents have started to rely on public transportation, carpooling, biking, rollerblading, or walking, rather than keep paying $40 a week for gas.

Although most drivers pay attention to is the risk their vehicles run of being stolen, a large number of them don’t take into account the frequency at which their vehicle types are stolen on a national level. Even if you protect your vehicle well, it could still be one of the types that are targeted the most often by car thieves, and thus you’re not only at a higher risk in general of having it kidnapped, you also may suffer when it comes to getting your car covered by insurance companies, since they pay attention to the type of vehicles that are stolen the most often and adjust the rates as necessary to reflect this kind of information.