Community Voices

4-11-08 COMMUNITY VOICES: With car insurance, it now pays to shop around

Posted on April 11, 2008 by lstrattan
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By Ernie Mizher

There has been much talk about the deregulation of our state’s auto insurance market. This new system of setting auto insurance rates is referred to as “managed competition” and other states like Rhode Island have had it in place for some time.

In Massachusetts, up until now, the Commissioner of Insurance set all auto insurance rates. If you asked for a quote for the same insurance coverage from different companies, you would essentially get the same price. Under this system there was very little reason to shop around.

As of April 1 however, insurance companies will begin to set their own rates, although the Commissioner of Insurance will still approve them.

In addition, insurance companies can now offer consumers an array of coverages, limits and deductibles that were not available before.

Most who have something to say on the subject are touting the savings in premiums that drivers with good records should experience. Others are concerned that drivers with poor records will not be able to afford their rate increase and that the number of uninsured cars on the road will rise.

Under the old system, Massachusetts law required that specific surcharges be applied for certain accidents and traffic violations.

Under the new system, insurance companies will choose their own rules to determine if and how they will impose surcharges on your premium for accidents and traffic violations.

Ultimately, no matter what your driving record, the message to consumers should be to evaluate your options when it comes to auto insurance.

Most insurance agents represent several different insurance carriers. And in order to remain competitive, many insurance companies are offering new discounts as well as new coverage additions.

When your auto insurance policy is up for renewal, your agent should review your coverage with you. If not, ask your agent for a detailed review and ask if the carrier you’re with is still the right one for you. Also, make sure you are getting all the discounts you are entitled to.

Now that Massachusetts auto insurance is competitive, you will need to shop around for the best deal, just like any other purchase you make. And don’t forget to factor service into the equation.

Of course, insurance can be very technical and unless you have had a claim, it’s hard to measure the service of your carrier. That’s where the insurance agent comes in handy.

Making all of these insurance choices alone can be confusing, so use your local agent to help you sift through it all.

Ernie Mizher is first vice president and licensed producer for Citizens-Union Insurance, LLC.

COMMUNITY VOICES: Money matters in decision to stay married

Posted on April 10, 2008 by lstrattan
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By Juli Parker

Apr 05, 2008

When Tammy Wynette first wrote the words “Stand by your man,” she suggested it was hard to be a woman loving just one man because “he’ll have good times doing things that you don’t understand.” And that even if you don’t understand him, if you love him, you should forgive him because “after all he’s just a man.”

When reading these lyrics closely, it seems Wynette did not think too highly of men’s intelligence.

But what of the intelligence of those women who do “stand by their man” like Silda Spitzer, Suzanne Craig, Dina Matos McGreevey, Wendy Vitter and Hillary Clinton?

In most of the commentaries written about these political wives who stood by their men, writers tend to express three views: 1) They are disgusted that these women accepted the infidelity; 2) They feel it is a political move to show the public that if she can stand by them, then their constituents still can; and 3) They feel she is standing by her man to support their children.

Yet, there is a reason that women stand by their men that has not gotten much attention: money.

Has anyone addressed what is at stake financially if these women pack up and leave their politically connected spouses?

Statistically, a woman’s standard of living can decrease 10 to 25 percent after a divorce. If you are living a comfortable upper-class life, as most of the aforementioned women are, divorce is an economic gamble.

Furthermore, women who divorce tend to lose their social networks. Would you be willing to lower your income and lose your friends?

Even battered women stay with their batterers because of money. And being beaten up by your husband is far more damaging than being cheated on!

These might be financial risks that women like Spitzer, Craig, Vitter and Clinton were not willing to make.

And in Clinton’s case, it is clear she had future goals in mind when she stood by her president.

She knew the Senate and her own candidacy for president had a better chance in a political partnership than being single.

Would she even be a viable candidate today if she was single? Marriage seems to be an unwritten requirement to run for president.

When we look at these women who stand by their cheating men, perhaps we should stop first and look at their checking accounts and think about how much they might be giving up before we judge them.

Juli Parker is the director of the Women’s Resource Center and is on the faculty at the University of Massachusetts Dartmouth.

COMMUNITY VOICES: Does the mortgage crisis have a silver lining?

Posted on April 10, 2008 by lstrattan
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By Nicholas M. Christ

Published March 29, 2008

Citizens-Union Savings Bank’s economic outlook at the beginning of the year called for a weakening first half of 2008. We expected sub-prime mortgages, scheduled to reset nationally, would continue to place a drag on the nation’s economy with a rippling effect into other sectors. It is fair to say that we have seen this play out in our markets and the economy.

I am encouraged, however, by the swift and significant actions at the Federal Reserve and I applaud Federal Reserve Chairman Ben Bernanke’s performance in providing liquidity and ultimately stability to a very volatile market. The Federal Funds Rate has been successfully cut from 5.25 percent to 2.25 percent over the course of the past several months and I feel reassured that the Federal Reserve stands ready to provide funding if the system shows further signs of weakening.

It is important to note that unscrupulous and under-regulated mortgage companies caused the sub-prime mortgage crisis, not community banks and credit unions. In addition to the questionable lending tactics of these mortgage companies, bad loans were packaged together, graded inaccurately by rating agencies, and sold as high-quality investment vehicles with credit enhancement into the secondary market. Too many questionable home loans that people couldn’t afford were made and then sold on the secondary market to unsuspecting investors.

Community banks and credit unions have always used a common sense approach to mortgage underwriting. We have not and do not participate in sub-prime lending. Our first and foremost concern has always been our relationships with our customers. Long-term relationships are not based on a single transaction but rather are built over years of honest service to our clients. And while banks and credit unions did not create the crisis, we have been banding together to offer assistance. In fact, the Fall River/New Bedford Housing Partnership was formed for this specific purpose. Citizens-Union along with BankFive, Bank of Fall River, Fall River Municipal Credit Union, St. Anne’s Credit Union and others are working hard to provide valuable assistance to individuals and families facing the risk of foreclosure.

The silver lining to all this is that declining real estate prices are making homes more affordable for new buyers. It’s sad to see people losing their home, but eventually someone else is going to move into that home. Qualified borrowers are finding many homes to choose from at reasonable prices, although it’s back to basics. Potential homebuyers will need to conform to the practical lending agreements that reputable banks have had in place all along, i.e. 20 percent down or purchasing private mortgage insurance.

Another positive is that interest rates are very low and traditional banks and credit unions have plenty of money to lend. So there is no need to worry about that. In Massachusetts, our community financial institutions are in great shape and have plenty of credit available to help consumers. With adversity comes opportunity. This could be an opportune time for a qualified first-time homebuyer, or anyone looking to purchase a home, to get the deal they’ve been waiting for.

Christ is president and Chief Executive Officer of Citizens-Union Savings Bank