Insurance World

Insurers have added coverage for identity theft to their offerings in addition to the traditional life, health, pet, travel, and automobile coverage. The yearly costs attributed to crimes involving identity theft are staggering. While services are available to help you keep track of your personal information, they come at a price and may not be worthwhile.

Citi Credit Monitoring Service may be of value, since it is available online, its web site is secure, and the firm guarantees your privacy will be protected. This site lets you review your credit accounts and files on a regular basis in a relatively inexpensive manner. Other companies offer coverage for identity theft and include software that helps to track identity theft activities and offers help if you become a victim of this crime. The software also provides your FICO and additional monitoring options.

If you become a victim of identity theft, you may also become a victim of the court system. While millions of people suffer from identity theft, few go to court to fight for the restoration of their identity. The court process can take a very long time, and since identity thieves generally establish credit and bank accounts in your name, you may be the one on the hook for prosecution from creditors and the courts.

Many people believe that victims of identity theft have done something to expose themselves to this crime and that, therefore, it is their own fault. This is not the case. Cases of identity theft increase every year, and millions of people are affected. Doctors, lawyers, politicians, judges, and other educated people often become the victims of identity theft. The criminals themselves are often highly educated, working in respected careers in order to gain access to information they can steal. The poor are often made scapegoats for the crime, while the real criminals go unpunished.

It can be to your advantage to obtain identity theft insurance. You never know who the thief might be or when a theft may arise. The insurance coverage usually costs just a few dollars per month. You may also purchase the identity-theft software for a one-time fee. IN some states, laws have been enacted to prohibit the publication of personal identifying information. However, with so much information online, the Internet is fertile ground for ‘hackers’ who gain access to databases containing personal data on millions of people. Therefore, you should take any and all precautions you can to protect yourself from identity theft.

Car insurance takes a significant portion out of a lot of people’s incomes, but for younger drivers it can be beyond reach on a low income. Under normal circumstances a new driving licence is a clean one, with penalty points for motoring offences not making an appearance until after at least a little time on the road. These two facts make motorcycle ownership a much more attractive proposition for impecunious young people.

There is however a noteworthy exception to this. It is only relatively recently that mini motorbikes have made an appearance, and their use has been taken up avidly by juveniles, but already legislation has had to be amended to deal with their illegal use. This is resulting in the motorbikes being confiscated and in some cases crushed; and their owners being prosecuted.

There would appear to be little point in prosecuting a juvenile as a result of a motoring offence, but the authorities have decided to use the law to enable them to deal with offenders in a fairly unique way. Even though the offenders are usually children, who are several years from being old enough to hold a driving licence, they are hit with penalty points. These are placed on record, and when a first licence is applied for the penalty is applied and the licence endorsed.

The offences being committed which give rise to these penalties are usually based on laws relating to vehicle use. It is illegal to use any vehicle unless the driver has a licence and the vehicle is taxed and insured; if these requirements are not met then use is only permitted on private land and is subject to the land owner giving permission.

The problem is that the majority of mini motorbikes are used on public land, pavements and roads, and it is doubtful if the (usually) youthful riders are aware that any offence is being committed. It is however even more doubtful if the riders have contributed to the cost of the motorbike in any way. So the machines have mostly been bought by parents who should be aware of the law and should show a greater sense of responsibility.

A number of accidents have already occurred when riders have collided with pedestrians, road users and miscellaneous obstructions. Make no mistake – these machines may be small, but modern engine design has ensured that they are capable of speeds which are out of all proportion to their size. Both riders and their victims have ended up in hospital, and in some cases in intensive care as a result of their injuries.

Bad enough if the damage ended there, with an injured child or pedestrian, distraught parents and a costly motorbike confiscated and crushed, but the delayed effect can also be traumatic. It is likely that all parties to the accident will have forgotten about the other penalty until the young person applies for their first licence on reaching qualifying age.

If the licence is granted it will carry the record of the forgotten penalty points. O.K. so where’s the problem, you may ask. A licence was wanted and has been issued. The problem lies in the next requirement which is insurance. Every company approached for a quotation will ask about the driver’s record, and when they learn that the licence has penalty points on it their interest will fade rapidly.

There will be an instant and fairly savage mark up in the premiums to be paid. This is likely to vary according to the severity of the offence, from a relatively mild but still pricey cost increase for minor offences to swingeing increases for more serious offences such as dangerous driving. Any mention of a drink driving offence will make insurance almost impossible to obtain due to the prohibitive cost, assuming that cover is not refused outright.

An insurance company spokeswoman has given some examples of actual costs. A youthful male Fiesta driver with a penalty free licence is quoted as facing comprehensive insurance payments of around Ј37 per week, but the same lad with a dangerous driving conviction has to find almost Ј48 per week. This is a 29% increase and is a considerable sum to pay out every week.

Note that whilst a young female driver in the same position would pay the same 29% increase for a dangerous driving conviction, the relevant figures in her case would be under Ј24 per week on a clean licence or over Ј30 per week with the conviction. This is because of the higher accident risk for young males.

So generous parents need to consider carefully. They could be doing their offspring no favours in the long term by splashing out on a mini motorbike for them before they obtain a licence and can then ride legally.