The Insurance Insider

Confessions of an Insurance Agent

November 7th, 2006

Myth: Gadgets reduce fuel consumption

Gas prices seem to be on the decline following the hefty increases we experienced last summer.  And yet with all things cyclical, we can expect price hikes to appear at some point in the future. Don’t fall prey to some of the latest consumption reducing gimmicks, some of which are questionable at best, while others border on “scams.”

gas prices are on the rise(NewsUSA) - With reports of dwindling oil reserves and volatile gas prices, the average motorist is looking for ways to save at the pump.

But Jeff Stokes, vice president of World Energy Solutions (symbol WEGY), an energy services company based in St. Petersburg, Fla., warns motorists not to fall prey to gas-saving scams that seem to crop up when gas prices peak.

“While some emerging technologies do look very promising, high gas prices always seem to bring out some less-than-reputable firms with the latest gas saving gadget,” Stokes said.

Automotive experts are warning consumers to be wary of these and other claims for enhancing fuel performance:

* Some products and procedures are patently fraudulent, such as magnets that are supposed to be placed on the fuel lines.

* Others claim to be the result of some “secret” technology suddenly available after years of suppression by carmakers.

* Some actually work, but minimally so. Fuel additives promise better mileage by removing buildup and deposits but so do the detergents already blended in gasoline.

* Still others actually decrease miles per gallon. “Vortex generators” promise to mix the fuel and air in such a way that it burns better, but the added turbulence causes incomplete burning and lower mileage.

At present there are no magic bullets. Sensible driving habits and regular vehicle maintenance are everyday ways to improve gas mileage.

Meanwhile, vehicle manufacturers and legitimate aftermarket companies are working on improving old technologies or developing entirely new ones.

Carmakers are introducing continuously variable transmissions and engines that use all cylinders under acceleration but step down to fewer cylinders during highway speeds.

And some companies are working on technologies that will stand between today’s gasoline engines and the hydrogen-powered cars of the future. World Energy Solutions, for example, is developing a hydrogen-oxygen system that could have both industrial and automotive applications. Currently in the prototype stage, the technology uses water to create hydrogen-oxygen gas that is then injected into the car’s combustion systems along with gasoline to enhance mileage.

For more information on this and other energy-saving approaches from World Energy Solutions, visit http://www.wesinc.net/.

There are some proven steps you can take to actually reduce fuel consumption: make sure your tires are inflated to the proper PSI, avoid excessive idling, and open those windows rather than run the air conditioner on hot summer days.

October 22nd, 2006

Absurd Insurance Court Awards

You’ll notice that we continue to reference truthorfiction.com as a source in true, fiction, or unproven insurance industry claims. Quite simply, they are my first source for verifying the legitimacy of e-mail letters boasting absurd claims.  Here’s another shining example:

Only in America

Highlight:

This email lists seven alleged court decisions in various states in the U.S. that awarded large cash awards to people under apparently absurd circumstances, including occasions when they were responsible for their own injury or loss.  Later versions say these court cases have won the “Stella Award,” named after an elderly woman who won a large award from a lawsuit against McDonalds’s.

I encourage you to visit truthorfiction.com anytime you receive an e-mail that “sets you off” - it’s probably not true!

October 22nd, 2006

Chairman of Progressive Insurance Donates to ACLU

It’s been reported that the former chairman of Progressive Insurance (Peter Lewis)was the single largest donor to the ACLU (some $8.5 million). Truthorfiction.com has investigated this claim and at the time of this post, it appears “unproven.”

Peter Lewis remains a board member of Progressive Insurance Companies. His term is set to expire in April, 2007.

In the interest of full-disclosure, let me advise my readers that my insurance agency actively promotes Drive Insurance from Progressive for our clients.  “Drive” is the division of Progressive Insurance Companies promoted by Independent Insurance Agencies in the United States (Progressive Direct is sold via a 1-800 number directly to insureds). 

I personally feel that if proven true, Mr. Lewis’ contributions to this organization are abhorent.  However, he is free to do as he wishes with his own money just as you and I are free to donate our personal funds to the organization(s) of our choosing.

I have been consistently impressed with the cutting-edge approach to best-serving the insurance marketplace that Drive Insurance from Progressive has taken.  My clients have been well-served by their consistently competitive insurance product pricing and the company’s exceptional claims service.  Drive Insurance remains the leader in providing car insurance via the independent agent system in the United States.  Their policies and procedures continue to be emulated by most major insurance carriers. They remain the third largest U.S. private passenger auto insurance group and the largest writer of car insurance via the Independent Agent system.

October 22nd, 2006

How to avoid a traffic ticket

Truthorfiction.com has done it again! They’ve exposed a popular urban legend about how to avoid a traffic ticket.  Here’s the link: http://www.truthorfiction.com/rumors/t/tickets.htm

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