Cutting the accelerating cost of car insurance

The price of car insurance soared 23% over the past five years.

(Money Magazine)

Claims, however, are at best just keeping up with inflation, says the Consumer Federation of America's Mark Romano: "You're certainly not getting any more for your money."

Should you have an accident, make sure your coverage pays off.

Road to recovery

Call the cops. Report even minor incidents, since some damage -- to a car's electronics, say -- can take weeks to emerge.

"We see this often," says Randy Hanson, Allstate's director of auto claims. (A report won't raise your premium; a ticket or claim might.)

Related: Quick guide to car insurance

Collect evidence. Use your smartphone to record the backup you'll need for a claim. Free apps like WreckCheck (and others from large insurers) guide you through photographing the scene and obtaining information from other drivers and witnesses.

Get your due. Your insurer's favored repair shop may cut corners, says Romano; a dealership specializing in your make -- or a garage it refers you to -- will likely do better.

Related: 5 great big cars

Car totaled? Use prices on kbb.com to negotiate payment for a comparable car.

First Published: August 8, 2013: 5:17 PM ET

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China inflation steady as economy stumbles

NEW YORK (CNNMoney)

Consumers paid 2.7% more for goods and services in July than they did a year ago, the government's National Bureau of Statistics reported on Friday. Inflation this year has been very moderate in China, removing at least one worry for officials in Beijing as the world's second largest economy enters what appears to be a sustained slowdown.

Stocks in China advanced after the data were released. The Shanghai Composite Index spiked 0.6% and the Hang Seng Index gained 0.5%.

In March, the government said it aimed to keep the annual inflation rate at 3.5% or lower. If price gains stay in the moderate range, the government should have more room to pursue stimulus measures.

"There remains more than sufficient room for Beijing to step up fine-tuning measures as and when needed," economists at HSBC noted.

Related story: China fines six companies for baby formula price fixing

But the government must also consider the politically touchy issue of food prices -- the most important gauge of cost of living expenses in China.

It accounts for more than a third of the country's inflation calculation, and for rural families, it makes up the bulk of expenses.

The rising cost of food continues to be the major driver of inflation, led by climbing pork prices, Capital Economics analyst Qinwei Wang wrote in a statement before the data was released.

In July, overall food prices rose 5% over last year, while pork prices increased 1.7% compared to the previous month. Vegetable prices jumped 2.2% from June, an increase likely caused by a drought in southern China.

Nomura economist Zhiwei Zhang said he expects CPI to remain stable at around 2.7% in the third quarter of this year. For the fourth quarter, he estimates the annual inflation rate will spike above 3% due to a seasonal increase in prices.

First Published: August 8, 2013: 11:11 PM ET

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FCC to vote on reduced rates for prison phone calls

The FCC unveiled a plan to bring down exorbitant rates for phone calls from behind bars.

NEW YORK (CNNMoney)

The Federal Communications Commission will vote Friday on whether to reduce the rates inmates and their families pay for interstate calls from prison, a measure long demanded by civil rights groups.

A typical 15-minute, state-to-state call costs $17 in some states, compared to about $1 in New York, where prison phone rates have already been reformed. That can make communication with family members prohibitively expensive for many inmates.

The commissioners will vote on whether to impose a cap of 25 cents a minute for a collect call, and 21 cents a minute for a debit or prepaid call. That is less than one-fourth the current rate in some locations.

"This is a means to help strengthen families," FCC Acting Chairwoman Mignon Clyburn told CNNMoney. "Communication is key, particularly when families are separated."

The changes would apply to interstate calls at all incarceration facilities, including federal and state prisons, county jails, and juvenile detention centers.

FCC officials will also discuss on Friday whether caps should be applied to calls made within state boundaries. Clyburn said the commission could issue new regulations on that issue in the months to come.

Related: Prison exclusive: Bernie Madoff can't sleep

Many prisons offer exclusive deals to phone service providers in exchange for astronomical commissions that can add up to 88% to the cost of a call. The proposed regulations would prevent providers from recovering the cost of these commissions for long-distance, interstate calls.

The proposed changes have been in the making for months, as the FCC moves to break up what it refers to as a monopoly of prison phone service companies charging exorbitant rates. The reforms would still allow service providers to make a profit, according to the FCC. The top providers are GTL, Secururs, Pay-Tel, Telmate and CenturyLink (CTL, Fortune 500).

Jeff Hansen, chief marketing officer at Telmate, said rates should be "accessible for inmates and their families, [but] the question is what level is fair is reasonable."

"It's not realistic to compare normal, everyday call rates to what happens with an inmate call," Hansen said. "They're just not typical phone services -- we have to monitor and save and track every communication that's done by an inmate, and that requires pretty advanced systems."

Given the variation in facilities around the country, Hansen said Telmate would prefer to see regulation of rates handled at the state and local level.

The other companies did not respond to requests for comment.

Clyburn said that in crafting the proposed regulations, regulators "took everything into consideration, from security to cost structure to the impact on families and the impact on companies."

Multiple studies, she said, affirm that keeping in touch with families and friends helps lower recidivism among inmates. Beyond the inmates, she added, the lofty rates are a burden for the 2.7 million children with parents behind bars.

"These are children who still want to keep in touch with their parents, but currently the regime for those in 42 states is unaffordable," she said.

Related: Enron's Skilling gets decade lopped off prison sentence

The FCC's vote will come more than a decade after a U.S. District Court dismissed a class action lawsuit led by Martha Wright of Washington, who said that she paid $1,000 per year to cover the costs of her grandson's phone calls from various state prisons. The judge referred Wright to the FCC.

-- CNNMoney's David Goldman and James O'Toole contributed reporting.

First Published: August 9, 2013: 12:23 AM ET

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Nearing retirement, with 3 tuition bills to pay

The Keunings imagine a retirement filled with kayaking -- if they can get there.

(Money Magazine)

Six years out from their target date, the Duluth, Minn., duo have roughly $500,000 saved. Selling the small ad agency they own could net them another $150,000, they figure. (None of their five grown children is interested in taking it over.)

Where they stand

Assets
Home, cabin, office building	$815,000
Retirement accounts	$531,700
Cars	$23,500
Checking/savings	$6,900
Total Assets	$1,377,100
Liabilities
Car loans	$10,000
Credit cards	$40,100
Mortgages (home, office)	$489,200
Total Liabililties	$539,300

The sale of a vacation cabin and office building could add $250,000 to the pot. Even so, they'll likely come up short.

Saving more -- they now put away $12,000 of their $150,000-plus income -- will be tough. The Keunings carry hefty loans on their home ($334,000) and office ($156,000).

Plus, they're trying to pay off $40,000 in credit card debt from home repairs. And they're helping support their three youngest kids with college tuition, student loan payments, and rent. Total outlay: $32,000 annually.

"We know we spend a lot on them, but it's something we want to do," Kim says. "So how do we do that and everything else?"

Three fixes

Mortgage the plastic. The average rate on Kim and John's plastic is 15%. To pay off the cards, Indianapolis financial planner Michael Kalscheur suggests they take out a $40,000 30-year mortgage on their paid-off vacation cabin.

At 4%, the loan would cost about $200 a month vs. their current payment of $1,300.

Related: How much will you need for retirement?

They plan to sell the cabin just before retirement, and when they do they can use the proceeds to pay the rest of the mortgage.

Redirect the payments. In the meantime, they can use the extra $1,100 in monthly cash flow to pay off their car loans. Once that $10,000 debt is wiped out, they'll have $1,600 a month to build their emergency fund. Kalscheur wants them to have at least $20,000.

When this is complete, in about nine months, they should max out their Simple IRAs (in 2013, they can each put in $14,500).

Related: Balancing retirement with supporting adult children

Assess income needs. Following this plan, Kim and John will have almost $1.6 million in six years, after selling the business, office, and cabin. That will allow them to retire with about 72% of their income.

If they want more room in their budget -- to, say, escape Minnesota's winters -- they'll have to work a little longer. Or they can beef up the business to sell it for more by nixing debt, locking clients into contracts, and recruiting employees who'll be indispensable to the next owner, Kalscheur says.

First Published: August 7, 2013: 7:07 PM ET

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Wal-Mart agrees to safety improvements at 2,857 stores

HONG KONG (CNNMoney)

The retailer will also pay a $190,000 fine to settle the matter, which stems from violations found at a Rochester, NY store during an inspection performed by the Occupational Safety and Health Administration.

The agency had accused Wal-Mart of unsafe working conditions and lax training for employees who had operated trash compactors. The inspection turned up equipment that did not have proper safeguards, blocked exit routes and the use of cleaning chemicals without eye protection.

The agreement will ensure that company trash compactors will remain locked while not in use, and employees will receive new training in their use. The company is also required to provide training on how to properly handle chemicals.

Related story: Worker wages at Wal-Mart

Wal-Mart spokesman Randy Hargrove said that after learning of problems at the Rochester store, the retailer "immediately addressed them and reinforced the company's guidelines."

"We will continue providing training to our associates nationwide, including addressing the areas outlined in the settlement," Hargrove said. "We are pleased this resolves the issues that were raised."

Related story: Wal-Mart pays $82 million fine for dumping hazardous waste

The agreement covers 2,857 stores in the 28 states that follow OSHA recommendations.

"This settlement will help to keep thousands of exposed Wal-Mart workers safe and healthy on the job," said assistant secretary of labor for OSHA David Michaels. "We hope this sends a strong message that the law requires employers to provide safe working conditions."

First Published: August 8, 2013: 12:35 AM ET

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Honda aces crash test. Kia and Nissan fail

The Kia Soul and Forte (shown here) earned the worst possible rating of "Poor" in the Insurance Institute's new "small overlap" crash test. Part of the problem was that the cars' steel structure didn't provide enough protection, the Insitute said.

NEW YORK (CNNMoney)

The Institute put 12 new compact cars through the test, including two- and four-door versions of the Civic and two Kia models. The Kia Soul and Forte, as well as the Nissan Sentra, earned the worst possible rating of "Poor" in the test.

Kia and Nissan both pointed out that their cars have performed very well in other Insurance Institute and government crash tests. Kia also noted that the "small overlap" crash test "goes well beyond federal requirements."

Both automakers said they would review the test results as they seek to make further safety improvements in their cars.

This was the first time compact cars were subjected to this new type of front crash test. In it, the cars are propelled at 40 miles an hour and strike a crash barrier with just one quarter of the front bumper on the driver's side. That concentrates impact forces into a small area that often falls outside crash protection structures built into the cars. The impact also spins the car violently.

The test mimics a type of impact that accounts for nearly a quarter of all front crashes with serious or fatal injury to front seat occupants.

"In the worst cases safety cages collapsed, driver airbags moved sideways with unstable steering columns and the dummy's head hit the instrument panel," David Zuby, the Institute's chief research officer, said of the test results in a written statement.

Also, side curtain airbags sometimes didn't deploy or they didn't provide coverage far enough forward in the car to be of any help, he said.

In the case of the two Kia models, the cars' seatbelts spooled out too much, allowing the crash test dummy to move too far forward. At the same time, the side curtain airbags didn't provide protection that far forward in the car, allowing the dummy's head to hit the windshield pillar and instrument panel. The Kias' steel structure also provided insufficient crash protection in the tests, according to the Institute.

When the IIHS put a group of luxury cars through the same test in August, the first time results for the new test were released, only two cars out of 11 got top marks. The Institute has also put mid-sized cars and small SUVs through the new test.

Gallery - Coolest million dollar cars from Pebble Beach

In this case, while only the Civics earned the top possible rating of "Good" in the side impact test, the Dodge Dart, Ford Focus, Hyundai Elantra and Scion tC were rated "Acceptable." That was good enough to earn them, along with the Civic, the Institute's "Top Safety Pick Plus" award. That award is reserved for cars that perform well in all of the Institute's crash safety tests.

The Chevrolet Sonic, Cruze and Volkswagen Beetle earned "Marginal" ratings in the test. The Toyota Corolla wasn't tested because Toyota (TM) will be releasing a completely redesigned Corolla later this month.

First Published: August 8, 2013: 12:38 AM ET

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Find out if a company shares your values

Protestors rallied outside of Chic-fil-A following the CEO's comments opposing same-sex marriage.

NEW YORK (CNNMoney)

Finding out the answers to those questions may be harder than you think.

"More and more consumers [are saying], 'If I'm supporting this company by buying a product or investing in it, I want to make sure it supports my personal values, and I don't want to buy from a company that doesn't,' " said Dara O'Rourke, associate professor of environmental and labor policy at the University of California, Berkeley, and co-founder of Good Guide, a website that rates and reviews over 5,000 companies based on their environmental, health and social policies.

But unless a company has been all over the news because of a controversial policy or view -- like Chic-fil-A when its CEO came under fire for opposing same-sex marriage -- you'll have to do a little digging.

Of course, what one person feels is ethical, another might think is wrong. So we're all on our own in deciding the role our values play in where we put our money. Here are just a few hot button issues and places to start your research.

Animal rights: Find out if a company is testing its products on animals by looking at lists from PETA (People for the Ethical Treatment of Animals) and the Coalition for Consumer Information on Cosmetics.

Related: What businesses owe the world: Then and now

Environment: Climate Counts, a nonprofit aiming to combat climate change, scores companies based on their carbon footprint, impact on global warming, stance on climate legislation and public disclosure of climate policies and actions. More than 100 companies have been rated so far. IBM (IBM, Fortune 500) and L'Oreal are among the high scorers.

Health: The Organic Consumers Association has a directory of green and organic companies that lets you search by state. For makeup and cosmetics, The Environmental Working Group maintains a cosmetics safety database that scores companies and products based on their ingredients and how safe they are for your body, including whether they contain anything suspected to cause cancer or developmental or reproductive problems.

LGBT rights: To gauge how friendly a company is to its lesbian, gay, bisexual and transgender employees, the Human Rights Campaign has a Buyer's Guide to Corporate Equality that scores companies based on their LGBT policies, including whether they offer domestic partnership benefits or transgender-inclusive health insurance. ExxonMobil carries the lowest score of negative 25. Gap (GPS, Fortune 500), Chrysler, Citibank (C, Fortune 500), Kellogg (K, Fortune 500) and Walt Disney (DIS, Fortune 500) all boast perfect scores.

Related: Does sustainability matter to investors? Depends who you ask

Oil and fracking: Hydraulic fracturing, a practice known as "fracking" that involves injecting water, sand and chemicals into the ground at high pressure to crack shale rock and bring oil to the surface, has been driving the energy boom in the United States. But it has environmentalists up in arms.

It's easy enough for those opposed to fracking to avoid the major companies involved with the practice. It can be harder, though, to determine when you are indirectly supporting the cause by doing business with a firm that is invested in a fracking company.

TD Bank (TD), for example, has come under fire for holding shares of TransCanada (TRP), the oil giant behind the controversial Keystone XL pipeline. Without all of the attention from environmentalists, however, this may not have been so obvious for TD Bank customers.

You can find out whether your bank, retirement plan provider or investment firm has a big stake in a company you don't like simply by looking at that company's major shareholders, which are listed on financial websites like Morningstar or CNNMoney.

Faith-based investing: There are a number of investing firms that invest only in companies that are aligned with certain religious beliefs. Many of these are aimed at the world's two largest religions, Christianity and Islam.

The Biblically Responsible Investing Company, for example, invests in companies based on 60 criteria that it says are "important to Christians." This means your money won't be placed in companies that donate to organizations that support abortion rights, provide domestic partnership benefits to lesbian and gay employees or are involved in the sale of pornography or cigarettes.

The Amana Mutual Funds Trust, meanwhile, is an Islamic fund that only makes investments that it deems "consistent with Islamic principles," screening out interest-bearing securities and companies involved with alcohol and pornography, among others.

First Published: August 6, 2013: 5:46 PM ET

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