Drive without insurance? Then you'd better stay out of Ohio, where the state is considering a program that uses red-light cameras and insurance company databases to check passing traffic for uninsured motorists. The system would use license plate numbers to verify driver insurance. According to the Columbus Dispatch, officials in Chicago, who are considering the same system, from InsureNet of Novi, Michigan, think that such a program could generate $200 million in additional revenue for the Windy City.

When the system identifies an uninsured motorist, the driver would be sent a letter instructing him to take care of the problem. If he doesn't, a fine will soon follow. In Ohio, that fine is $125 for a first offense, $300 for a second and $550 for a third.

The system is already being provided to law enforcement, free of charge, so even those uninsured drivers who managed to dodge the cameras can be busted if they catch the attention of a local gendarme. The system can also provide them lien reports in real time.

I'm all for requiring drivers to carry insurance, but I'm not pleased by the prospect of insurance company databases being opened for InsureNet's searches. I can see how this would be a good deal for the insurance companies, because it will drive business their way. For the general public, however, this feels like another step toward a Big Brother future.

Imagine that you are mowing the lawn, and your lawn mower pitches a stone into one of your windows, cracking the glass. So you put a little piece of wood in front of the glass to cover the breakage, and go back about your business. You'll get the window fixed later.

One week later, you receive a letter from your homeowner's insurance carrier, stating that your coverage is going to be dropped. The letter cites your unkempt landscape and the boarded up window as the reasons for your loss of coverage.

Don't laugh, this could happen to you!

According to a report from ABC7.com News, that is almost exactly what has happened to one homeowner in Florida.The difference between that story and my hypothetical one is that it was a golf ball which cracked that homeowner's window. The story indicates that the home in question is well kept, and that the homeowner hasn't filed a loss claim in 20 years.

No one wants to deal with filling out insurance claim forms, filing for survivor benefits from the Social Security Administration, or the other necessary paperwork when a relative dies. That's what lawyers are for.

But what if you can't find the insurance policy or various investment accounts that your dad never told you about? Or maybe he did, but you don't know where they are?

Enter WeRemember.org, a Web site that went live earlier this week that acts as a centralized database where people can put their preparations into place so that their designated beneficiaries can find the policies to make claims and get the insurance money, among other things.

Currently, tax-free health benefits from employers are the largest tax break in the nation. The estimated 2010 cost of this tax advantage is $155 billion and is projected to increase to $924 billion by 2014, according to the White House office of Management and Budget.

Note that these costs are just estimated potential revenue gains if the Treasury were to tax employer health insurance benefits.

Tax writing committees in Congress are busy drafting a plan that will place a cap on these tax breaks that currently benefit high income employees with top notch insurance policies. Their plan will call for these individuals to pay taxes on part of their received benefits. Congress plans to unveil this health care proposal next week.

The Associated Press reports that "Driven to desperation, a growing number of financially strapped car owners are torching, sinking or ditching their vehicles and then reporting them stolen to cash in on the insurance." In Las Vegas, car insurance fraud cases are up more than threefold and other police departments are reporting smaller but still meaningful increases in the crime.

If you're reading this and thinking about setting your car on fire or driving it into a ditch and reporting it stolen, please, please, please don't do that. You might get away with it, but you might not. And if you don't, you could end up in jail for a long time -- and that, combined with penalties and legal fees, won't exactly help your financial situation.

If you're among the alpha wave of car shoppers returning to the showrooms, here's a tip: before you sign on the bottom line for that shiny new ride, check on the cost of insurance. The wrong choice can cost you thousands per year. Insure.com has just released its list of the most and least expensive vehicles to insure.

Leading the pack in the highest cost to insure is the Nissan GT-R, Motor Trend's Car of the Year. This lightening-fast production car claims to be able to cruise at 185+ mph. I suppose if you can afford one at $76,840, you won't worry about the $2,533 per year insurance.

When times are tough, we all look for ways to better plan repairs and cut unexpected costs. If you own a home, you may be more tempted to purchase a home warranty to help avoid the financial surprise of an unexpected repair.

But the real question is whether home warranties truly offer the peace of mind they claim on the brochure. Will owning a home warranty cover an air conditioner that gives out mid-summer, or a water heater that leaks and turns your basement into a swimming pool. The answer is: maybe.

When Elizabeth Romanaux was laid off from the Liberty Science Center in Jersey City, N.J. on Feb. 27, she was hired back almost immediately to work three days a week doing grant writing and public relations for the museum, located just outside New York City.

"I'm grateful for the work; it's still fun to do even though the circumstances have changed," said Romanaux, 53. That included a loss of her health insurance benefit, a "painful blow" for the science center's former vice president of communications.

But thanks to a new law, Romanaux enjoys the same medical and vision benefits as before -- and pays just $140 a month, meaning she will save more than $2,300 over the course of 2009.

Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.

Click here to ask Ken and Daria your question.

We're all looking for a safe place to invest these days, especially those of us reaching retirement age. Annuities have become a popular option due to their tax benefits. The payments can be either fixed or variable – and choosing between the two can come with major consequences!

The Dolans have strong feelings on this topic. Find out which one they recommend in their video below.

Dear Ken and Daria,

I am retired and looking for safe income investments. Which is better: fixed annuities or variable?

-Rene


Ken and Daria Dolan can help you find solid investments for your money, even in a not-so-solid economy! Get started now at the Invest Wisely section of Dolans.com.

Suppose the student attending a private school or college that you're footing the bill for gets ill during the school year and is forced to withdraw. What about the tuition you've already paid? Can you get it back?

Often the answer is no, which, as you might imagine, can result in inconsiderable ill will or even lawsuits. To head off this exposure, some schools include the cost of tuition refund insurance in their fees. This assures the school that it can keep the money while appeasing the sick student's parents. The question is, does the insurance cost reflect the real probability of this occurring, or is it an overly expensive niche product?

The insurance comes in four flavors; compulsory, in which all students are covered and all students pay the premium as part of their fees; mandatory, in which those who choose a payment option other than full-year up-front are required to buy it; opt-out, where the insurance is included in the fee but can be removed on request; and voluntary.

Just as foreclosures and deed in lieu transactions are rising, an increasing number of Americans are also abandoning luxury cars they can no longer afford.

But some people are adding a creative twist: Instead of simply abandoning the car or handing the keys back to the lender, they're dumping them in ditches and then reporting them stolen hoping to collect a fat insurance settlement. Insurance claims are on the rise and the Wall Street Journal reports (subscription required) that "Authorities report a growing number of cars dumped in the Great Lakes, burned along remote New Jersey roadsides and driven into canals in California.

The phenomenon is acute in Las Vegas, where sharp declines in tourism and construction have left thousands of workers unemployed and broke."

If you're considering doing something like this, here's the best advice: Don't. Sure, there's a reasonably good chance that you'll get away with it but if you get caught you will probably end up in the slammer. Even if you don't get caught, you're participating in a scam that jacks up insurance costs for everyone else.

Another form of car insurance fraud that's also on the rise -- and can more directly victimize innocent bystanders -- is the "staged accident." Check out the video below.

It's going to be a while before (and if) the Obama Administration can put its healthcare-for-all plan in place, but I wonder if any employers will still be offering healthcare plans by that time.

A new survey out this month by workforce research firm Hewitt Associates found that 19% of the 343 employers it asked are planning to stop offering health benefits over the next three to five years. That's a fourfold jump from just last year, when only 4% were planning an exit strategy. (Thanks, Workforce.com)

For those who still offer health benefits for the employees they don't lay off, keeping workers healthy is the major workforce issue this year, up from #2 on the list in 2008. Actually the term they used is "promoting employee accountability" and the specific health conditions they're going to be on the lookout for in their workforce are asthma, cardiovascular disease, depression and diabetes. So don't expect free doughnuts on Friday even when the economy bounces back, but maybe they'll keep the mental-health counselor on staff?

Dentistry appears to be one profession that the recession might not bite. The 17 % average profit margin of dentists' offices was higher than that of any other industry in 2008, according to Sageworks, which uses data from 9,000 CPA firms across the country. Aside from tooth grinding and other nervous habits that bring folks to the dentist, insurance issues appear to be driving the profits.

More and more folks are losing their dental insurance and are skipping cleanings and other preventive care to save money. So when they do go to the dentist they need more expensive treatment to alleviate the pain. And while many of us will endure physical pain, very few of us will walk around with an aching mouth. In fact, if you are like me, you will go to almost any lengths to keep an attractive smile and a good bite.

I have had braces as an adult, porcelain crowns put on most of my molars, and more root canals that I can count. I have had peroxide cleanings, bonding put on the front teeth and whitening. I have the most beautiful smile that money can buy.

The weather may not suggest it at the moment, but the time is near where those of us who love to get out on the water will be getting our boats in tiptop shape for the season. Now would be a good time to review your boat insurance to make sure you aren't overpaying or undercovering your yacht.

The Boat Owners Association of the U.S. offers this checklist for insurance shoppers:

Yes, folks, that's right. The awesome institution that is American International Group (AIG) has now gone to the United States government for a third handout. You might remember that little old bailout given to AIG last year worth $85 billion. In no time, AIG went back to the feds and got its welfare upped to $150 billion.

Now the company is back at the trough, looking for more billions paid for by the taxpayers. How did we get here? Seriously. This bailout madness is just insane. It started out that certain companies like AIG were "too important to fail." Well they keep failing even with all the federal money they're getting, and I'm wondering when enough is enough.

Does anyone really think these morons running AIG deserve a third gift from us? I happen to think they didn't deserve the first or the second. I tend to think that I deserve to keep my own money based on my hard work, and that I shouldn't have to give it to idiots in suits. But who am I? Just a little old accountant trying to make a buck. Maybe if I were smarter, I'd be an executive at a continuously-failing company like AIG, getting the feds to do the dirty work of stealing your money and turning it over to me.