Kaʻū News Briefs, Sunday, April 14, 2019

     The legislation passed the House on nearly partisan lines by a vote of 232-190. The measure now moves to the Senate for consideration.

Kamehameha Schools reaches out to Kaʻū keiki.

     Said Gabbard, "Today's vote and passage of the Save the Internet Act is a stand against the pervasive influence of corporate interests in our democracy and the FCC's repeal of net neutrality. It will help to provide fair and open access to the Internet, ensure the free flow of information, and prevent big companies from stifling competition online. This bill also restores vital FCC authority to bring broadband—especially the educational and economic opportunities it provides—to rural and tribal communities to address the fact that nearly a quarter of the people in these communities do not have access to broadband internet services at home."

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NEW HAWAIʻI DEMOCRATIC OFFICERS FOR HAWAIʻI ISLAND won election at the county convention in Honokaʻa yesterday. Heather Kimball, from Hamakua, a graduate in environmental sciences from University of Hawaiʻi - Hilo, is the new Hawaiʻi County Chair for the Democratic Party. She takes the place of former County Council member Margarette Wille, who stepped down after completing her term.

     Key findings in WalletHub's recent report state that 54 million Americans say they don't understand their car insurance. The report found that 75 percent of drivers – 125 million people – say they want the best car insurance, not the cheapest coverage; 14 percent of people say they would not buy car insurance if not legally required, with millennials being two times more likely than boomers to agree; 71 percent of people say it's unfair for gender to be a factor in car insurance pricing, with 65 percent saying they feel the same way about credit scores affecting car insurance costs.
     The average adult in the U.S. spends roughly $1,000 per year on coverage, according to the Bureau of Labor Statistics – more than is spent on fruits and vegetables, alcoholic beverages, or pets, for example. 64 million people, or 26 percent, say they want the cheapest car insurance rather than the best coverage.

Kaʻū's Special Places inspire keiki paintings from the Boys & Girls Club.

     WalletHub reports that a lack of financial literacy also plays a major role in consumers' attitudes toward car insurance. Roughly 54 million people – 22 percent of U.S. adults – say they do not understand their car insurance, WalletHub found. In other words, as invested as Americans are in protecting their vehicles, "millions of drivers still need a learner's permit when it comes to their car insurance policy."

Bernie Freitas and Dr. Gaku Yamaguchi talk about more outreach with physicians coming to homes in the future.

     Part of the reason for consumers' uncertainty is the selection of insurance companies and regulations. Douglas Heller, an insurance expert with the Consumer Federation of America, told WalletHub, "There are at least three areas in which the state in which you live will affect how much you pay for coverage." Minimum coverage levels vary by state. "Each state monitors, or regulates, the insurance industry in different ways," Heller said. "In some states, such as California, before raising or changing rates and pricing practices, insurance companies must go through a strict review by government actuaries, lawyers, and other experts to ensure that rates are not inadequate, excessive, or unfairly discriminatory." The third reason, according to Heller, is that "states may have different risk profiles related to things like traffic density, road conditions and maintenance, weather, and the cost of injury care and car repair."
     This, along with a general lack of subject-matter understanding among consumers, may also help explain why 63 million people, or 25 percent of U.S. adults, have never switched car insurance policies. Picking a policy the first time may have been hard enough, and no one wants to trade down by mistake.
     There are also some trends in car insurance pricing that many consumers do not agree with on the basis of fairness, reports WalletHub. For example, people with no credit pay an average of 67 percent more for car insurance than people with excellent credit. Two-thirds of WalletHub survey respondents believe it's unfair for credit scores to affect car insurance costs, yet most drivers don't realize just how much of an impact their credit actually has.

Event sponsor Ed Olson and Mayor Harry Kim.

     Hawaiʻi is one of only three states that ban the use of credit data in car insurance pricing, but "all should," said J. Robert Hunter, director of insurance with the Consumer Federation of America. "It is a proxy for prohibited classes of income and race." In other words, credit data could be a seemingly palatable way for car insurance companies to discriminate against certain groups, reports WalletHub.
     Car insurance companies also factor gender and geography into policy pricing. More than 70 percent of surveyed people said it's unfair to include gender in car insurance pricing. In contrast, 50 percent think zip codes should factor in. WalletHub reports that it may be that gender and geography have a legitimate role in insurance pricing given their impact on risk.
     Robert L. Rabin, the A. Calder Mackay Professor of Law at Stanford Law School, said a "combination of road design, speed limits, enforcement and driving culture," make it more risky to drive in some cities and states than others.

Nona Makuakane signs up kids for Summer Fun.

     Susan A. Shaheen, co-director of the Transportation Sustainability Research Center at the University of California, Berkeley, said, "Differences in weather patterns, traffic congestion and crime are key underlying factors, too. Often variations in rates are impacted by geography, and more specifically, weather." Other important considerations include "city size and traffic congestion – which can contribute to higher accident rates – demographic variations in the average age of a metro area – younger drivers and older adults can be associated with higher levels of risk – and crime – both vehicle theft and vandalism."
     New tools are making it easier than ever to find the best car insurance at the lowest price, reports WalletHub. There are several steps in particular that cost-conscious drivers can take to save on car insurance:

     Take advantage of discounts: Being a veteran or student, signing up for paperless statements, having a good driving record, bundling policies, and anti-theft systems are all possible ways to get discounts.

Family therapist Joe Soon explains programs of Child & Family Services. Photos by Julia Neal

     Build good credit: People with no credit pay 67% more than people with excellent credit on average.
     Drive safely: Safe drivers with no history of accidents, tickets, or arrests can look forward to cheaper rates than people who haven't been as responsible.
     Look locally: Plenty of car insurance companies only cater to customers in certain regions or states. These local insurers may provide lower rates but are often overlooked. Make sure to include them in insurance comparisons.
     Choose a higher deductible: An insurer may lower monthly rates in return for a lower deductible. This approach makes the most sense for infrequent drivers.
     Consider pay-per-mile plans: The insurance company will place a device in the insured vehicle that tracks mileage, and may also track speed and braking, all of which would influence rates.

     There are also things state and local governments can do to improve the car insurance landscape for their constituents. Douglas Heller of the Consumer Federation of America said, "The most significant thing a state can do to promote inexpensive car insurance is require insurance companies to justify their rates and practices before they can raise prices on drivers. Since governments require that drivers purchase auto insurance, the government has a special obligation to ensure that prices are fair and affordable."