Flooding has devastated many parts of the US over the past weeks and months. That’s why AAA is warning car buyers on the risks of purchasing a flood-damaged vehicle. According to AAA, following Hurricane Katrina in 2005, there were cars damaged by floods shipped throughout the US that were sold as both new and used cars.

Buying these cars can create risks. Many buyers unknowingly purchase a flood damaged car, according to AAA. “Depending on the vehicle make, model and age, the cost of a thorough cleaning and drying may exceed the car’s value,” said John Nielsen, director, AAA Auto Repair in a news release.  ”In many cases, insurance companies ‘total’ flood-damaged vehicles that are then sold to salvage companies. However, rather than being disassembled for parts, some of these vehicles end up being purchased by individuals who bring varying levels of expertise to the restoration process.”

If a car has been submerged in flood waters, more repairs may be needed than just a good cleaning. Some of the inner-workings of the car are very hard to dry out and can lead to a quicker deterioration. It may work properly after the flood, but it won’t hold up over time according to AAA experts. The electrical systems of a car can run into corrosion or oxidation that reveals itself months after the flood. According to AAA you can obtain a CARFAX Vehicle History Report which may reveal the car’s involvement in a flood. You can also use your sense of smell– detecting dampness is important. Look for signs of water stains or mud in odd places such as under the dashboard. Finally, you’ll want to have the car inspected thoroughly before purchase.

Here’s some good news for about 76,000 for-hire truckers working in the US. The federal government no longer requires these folks to carry cargo liability insurance. According to the Insurance Journal, the new rule began on March 21 and says that for-hire carriers no longer need this coverage. That impacts about 30% of the nation’s truckers.

The new rule does not apply to household goods motor carriers and household goods freight forwarders. The FMCSA or Federal Motor Carrier Safety Administration says that it doesn’t think it’s necessary for them to control cargo insurance that benefits commercial shippers. “Commercial shippers should be able to protect their own property loss and damage interests in the marketplace without continued FMCSA intervention,” the agency said according to the Insurance Journal.

In the past, the government required carriers to have evidence of insurance filed with the FMCSA. About 150,000 motor carries are already exempt from this mandate for a variety of reasons. The federal government’s requirement to hold cargo insurance dates back to as early as 1935.

Fidelity Investments announced that they are seeing significant growth in their Health Savings Account business. They’ve added 14 new HSA clients which marks a 52% increase over the previous year. In a news release the company explained how customers using Fidelity HSA are taking advantage of tax benefits of having this medical account.

On average, participants contributed $2,620 in 2010 which included both personal additions and employee contributions. “The continuing rise of health care costs combined with health care reform really drove the adoption of HSA-qualified health plans  by employers last year and thus the growth of HSAs,” said William Applegate, vice president, HSA products, Fidelity Investments in a company news release.  “As for participants, it is clear that many are using the health-savings product to help manage not only their current medical expenses but also plan for future expenses, with nearly all participants carrying some balance over to the following year.”

Currently Fidelity has 74,000 HSA participant accounts. One in five of those participants contributed more than $5,000 to their account in 2010. About half added around $2,500 in 2010. By law, in 2011 the maximum an individual can contribute is $3,050 and for families that number is $6,150. HSA’s allow consumers to make pre-tax contributions, realize tax-free growth and make withdrawals for qualified medical expenses.

ABC News may have helped the wife of a Vietnam War vet avoid getting her insurance coverage axed over a two-cent error. ABC News says when the cancer patient made a payment to Ceridian, the company that distributes the couple’s COBRA insurance, they made a two-cent mistake. The check was made out for $328.67, when it should have been $328.69. That mistake prompted the insurance company to cancel coverage.

When the company found that the couple had not made their full payment they issued this statement, “We did not receive a full and timely payment and [the insured] was provided several notices of the shortage and a grace period reminder notice on the last invoice, along with extended grace dates as provided for under COBRA regulations,” the company said according to reports. “Since the payment was not full, it fit into the definition in the regulations of an ‘insufficient payment.’ … Ceridian understands nothing is more important than one’s health. … Unfortunately, we simply do not have the capacity to be able to personally call continuants and remind them of the status of their Cobra benefits.”

Once ABC News got involved, however, the insurance company had a chance to rethink their decision. “We’ve reviewed the situation thoroughly,” a rep for the company told the news agency. “And we’re pleased to say… [the policyholder's] insurance coverage was reinstated.” However, Ceridian did not feel that it needed to apologize for the error.

A powerful storm rolling through the Midwest on to the east coast is creating winds equal to those of a category 3 hurricane, according to weather experts. ABC news says the storm developed gusts up to 81 miles per hour, impacting residents spanning from Illinois to Tennessee. Funnel clouds, forceful winds and powerful rain were all a part of the system.

Because of this strong weather, Ohio Department of Insurance Director Mary Jo Hudson told the state’s residents to take precautionary measures and review steps for filing insurance claims. According to Cincinnati.com, Hudson advises those with damage to:

* Call your insurance company as soon as possible.

* Protect your property and salvage what you are able to.

* Inspect property and cars for damage following the storm.

* Photoraph any damage in case you decide to file claims.

* Provide your insurance company with up-to-date contact information.

* Use written estimates to back-up claims.

* Only use reputable contractors.

* Don’t pay for repairs entirely up front.

* Review contractors with the Better Business Bureau to make sure they don’t have any outstanding complaints.

Consumers are getting hit and hit hard at the gas pumps. The price for gas is on the rise with no relief in sight. This is distressing to motorists who are on the constant lookout for new ways of saving gas.

Hybrids, car pooling, and scooters are popular methods and now pre-paid gas cards are added to the mix.