Rising gas prices are everywhere in the news as the fall-out continues. One article fears for $5 gas by July 4, others focus on the unlikely winners in the wake of such high prices at the pump, like Segway scooters. Meanwhile, if you are driving in your car still these days, it will get easier to choose which satellite radio service to purchase, since the FCC approved the merger of XM and Sirius.

News nuggets you need to know today:

• Rise in gas ripples through the economy
• Gas prices forcing many to pick up and move
• Floods May Send Gas Up 15 Percent
• $5 Gas Likely by July 4th; Get Ready for 'Stay-Cation'
  
• Price Jolt: Electricity Bills Going Up, Up, Up
• High Gas Prices Boost Interest in Segway Scooters
• Gas Prices, Economy Ease Shortage of Truckers
• Where to Find Deals as Inflation Soars

Elsewhere on the Web:

• CEO Pay Climbs Despite Companies' Struggles
  
• Five Ways to Cut Car Insurance Costs
  
• Slash Your Grocery Bills: 3 Steps for Reining in Costs
  
• Some Employees Buy Own Laptops, Phones for Work
  
• He's Big Bird: Caroll Spinney Loves Every Feather
• The Necktie, Knot What it Used to Be, Still Hangs On
  
• Nike Lets Sponsored Swimming Change Brands
• New Kits Can Turn Your Car into a Hybrid
  
• How Much You Need In Your Wallet For Your Next Flight
  
• Protect Your Child from Online Dangers the 'Cyber Dad' Way
  
  
  
  

I'm not sure why this is considered news. Any adult with common sense knows that when you make claims on your auto insurance policy, your rates are likely to increase. There's very simple logic behind it: Those who have more accidents and cost the insurance companies more should have to pay their fare share through higher rates.

Insurance companies have been gathering data for a zillion years. Every bit of information is tracked and they use it to determine who's a greater risk to them. If the chances are higher that you will cost the insurance company money, then you're going to pay a higher premium.

But here's a little known tidbit mentioned in the video below: Your auto insurance rates might go up even I you don't file a claim for an accident. If you contact your insurance company about an accident you've had, but decide not to file a claim, they might still record the information about the accident in their database. And when it comes time to renew your policy, that accident may affect your premiums.


Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

The concept of automobile insurance is simple: You pay the insurance company a premium. They invest your money, hope to earn something on it, and if you have an accident, they pay for the damage. Of course, the limits they will pay and the things they will pay for depend upon the specifics of your policy.

But what if your insurance premium was $5,000 to $10,000 a year? Could you afford it? Would you cry foul?

The sad truth is that insurance companies must charge premiums that are high enough to compensate them for the risk they take with you as a driver. If you've got a history of reckless driving, there's a higher chance that you'll cost them money down the road. So they're going to charge you more money in the form of your insurance premium.

It makes sense, doesn't it? Those who cost the insurance company more should pay more. And believe me, insurance companies have huge departments called underwriting that are paid to analyze data and determine how big of a risk you are. Then they tell you exactly how much you'll have to pay.