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Gabi Insurance Review | Can You Save Money?

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Let’s face it, hunting for auto or home insurance is a pain. It’s a numbers game and it can take you weeks just to sift and sort through rates.

Who has time for that? Thankfully, we live in the information age and there are services out there that can help. Today we’re reviewing one of those services, a relative newcomer called Gabi.

So, how does it rate?

We’ll give you the scoop about what Gabi is, how it works, and how it rates against competitors so that you can decide if this is a time-saver or not worth your while. Let’s take a closer look at Gabi Insurance and the service that they provide!

What Is Gabi?

Gabi is a nifty little bit of modern technology. Licensed to broker insurance in 50 states, Gabi’s ‘gimmick’ is that instead of giving a list of places and rates, they will ask you about your needs and sift through that information to simply find you the best rate.

How Does Gabi Work?

This is where things get interesting. You can give Gabi information about your current insurance plan and from there, it compares it to more than 40 top providers that are part of its network. Many of these are major players in the insurance industry, so you don’t have to worry that you’re being ‘pawned’ on a potentially unreliable ‘underdog’ provider.

https://www.bbb.org/us/ca/san-francisco/profile/auto-insurance/gabicom-1116-876760

If your current plan is the best rate, Gabi will tell you this, and if you don’t have a plan at all yet then you can simply answer a series of questions and Gabi will find you a provider within seconds. Oh, did we mention that Gabi also scans your driving record?

It’s impressive technology and we have a feeling that they’re on to something here.

Gabi also lets you enter in more variables in your search, such as student or senior-level coverage, and can help in finding discounts for purchasing coverage for multiple vehicles.

As far as homeowners insurance, Gabi helps to make sure that you aren’t missing out on potential rate-changers, such as previous claim-free years or owning a top-of-the-line home security system.

Everything gets factored in so that you can instantly get the lowest rate possible without having to read through 30+ projections and listings.

It’s basically like having an independent insurance agent at your beck and call, who can do the work of days in mere seconds or minutes.

Doe Gabi Include Major Providers?

We’d mentioned that several major providers are covered. Here are a few examples of members of Gabi’s network of providers to give you an idea:

  • Allstate
  • Nationwide
  • Geico
  • Progressive
  • Travellers
  • Mercury Insurance

Does It Cost To Use Gabi?

Gabi is a free-to-use, deriving their capital from the insurance companies that they are referring you to, rather than you paying anything. All you need to do is go to their website and you can use the tool completely free of charge.

What Makes Gabi Different from the Competition?

One very important distinction that Gabi makes is that they are not an aggregator. An aggregator makes a commission redirecting you to another provider and also makes money from selling your personal data.

Gabi is not an aggregator, but a broker, and as such, they sell you the policy directly and they provide you with service throughout the life of the policy that you’ve selected. This is a notable difference, as it were, as most of the ‘referral’ companies out there are contributing to the huge amount of spam that you are getting daily.

It’s refreshing to be able to use a service without the worry of that, so we are giving Gabi a thumbs-up on this aspect.

They also take things a step further, as their money-saving proprietary AI continues to search for savings throughout the lifetime of your policy. This way, you may take advantage of lower rates with other providers as they come available.

This takes out the need to constantly review your insurance out of worry and as such, saves you even more time in the long run.

The Breakdown: How Does Gabi Rate in Actual Use

The actual experience is very streamlined. You upload your current provider information, Gabi searches this and your driving record, and you are presented with quotes. When you select a quote you are given a chance to purchase said insurance but you will still need to cancel your old policy.

You will also need to find out your current provider’s refund policy if you already have insurance. While most providers will give you a prorated refund, you’ll still need to calculate the difference to determine if you are still saving. Aside from automating this portion of the experience, Gabi seems quite useful.

What We Liked About Gabi

We liked a lot of things about Gabi and we’ll sum them up below:

  • Savings – Comparing rates through competitors’ searches, the information appears good so you can indeed save money. Gabi reportedly saves customers about $800 on average and we’re inclined to believe that. The tool seems to work as advertised.
  • Ease of use – It’s nice being able to use your existing policy, as most of us have spent a good amount of time selecting exactly the right coverage in the first place. This option means that you don’t have to worry about losing any coverage that you already have by accident and that gives a little peace of mind.
  • Wide coverage range and major providers – With 40+ providers and a wide range of different coverage types that you can purchase, Gabi should fit the needs of just about anyone who needs auto or home insurance.
  • Quote bundles are available – Gabi lets you do searches for home and auto insurance bundles, which can save you money and make it easier to manage your coverage. This is a nice option that not all providers give you.
  • Privacy – It’s a breath of fresh air not having your personal information blasted all over the internet and that’s not something that you see every day with this kind of service.

Where We Felt Gabi Could Use Some Improvement

Every service has its caveats and here is where we felt that Gabi could use some improvements:

  • While they have a lot of providers, we would like if their network was expanded to include more than their current 40+ as there are likely still some deals out there being missed.
  • The quote that you are given still has to be reviewed by the actual insurance company, so there could be changes. This is something to consider before canceling your old policy.
  • Gabi doesn’t read .pdf files very well and so if you upload a .pdf of your policy then you will have to wait for them to report back. This can take up to 2 days, so we were a little disappointed there.

The Final Verdict

All in all, we have to say that we were impressed with Gabi’s innovative business model. You essentially get the services of a dedicated independent agent with everything being done at the speed of a machine. While we hope they expand their network a bit, our testing indicated that the savings were indeed significant.

Consider our verdict a solid thumbs-up for Gabi and we’re looking forward to seeing what they do in the future. In the meantime, you don’t have to take our word for it.

Feel free to give them a test so that you can see it for yourself. As Gabi does not sell your information, you won’t be added to any mailing lists and the service is free to use.

We think that you might be pleasantly surprised!

Image by:[Samad Murghal]

Five Ways to Relieve Medical Debt

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The average American will actively do everything they can to avoid a trip to the hospital or the emergency room. The funny thing is that they are not hesitant to receive medical care…just the bill afterward.

Most Americans are so desperate to steer clear of medical debt that many people who need to go to the hospital are calling for Ubers instead of ambulances, opting to pay approximately ten dollars for a ride as opposed to spending one thousand dollars minimum (in addition to their actual hospital visit).

Such practices are not new, and these methods for reducing medical debt are often necessary to keep most Americans financially afloat.

Hospital bills for even relatively minor injuries, such as cuts that are barely deep enough to require stitches, tend to cost thousands of dollars, even if the injured person has decent health insurance. 

Fortunately, there are a few different ways to find relief for medical debt.

Keep reading to discover these methods for yourself. 

Relieving Medical Debt: Five Useful Options 

If you are struggling with medical debt, the situation may feel dire, but it is not entirely hopeless. The debt can seem staggering, but it does not necessarily have to be. Here are five helpful methods for reducing the excess expenses that come with medical bills. 

Establish a Payment Plan 

One of the simplest ways to resolve a bill that cannot be paid in a single installment is to establish a payment plan. Most medical providers can work out a scheduled payment plan that breaks down the debt over several months until the total has been covered.

If you are uncertain if the medical provider would be willing to create a payment plan, there is no harm in asking. Be sure to inquire about billing fees or any additional charges associated with establishing a payment plan, as well. This will allow you to avoid being ambushed by extra costs. 

Establish an Income-Driven Hardship Plan 

You may qualify for an income-driven hardship plan if you have both a low income and a large amount of medical debt. Like payment plans, income-driven hardship plans break medical bills into smaller payments.

Unlike regular payment plans, an income-driven hardship plan can also potentially reduce the amount you owe. You may want to ask your medical provider about both types of plans. Please note that you may have to have or apply for Medicaid to qualify for an income-driven hardship plan. 

Use a Medical Credit Card 

Your medical provider may take medical credit cards if they are not willing to accept a payment plan. Some healthcare providers will carry applications for these cards in their offices. See more information here:

https://www.aarp.org/money/credit-loans-debt/info-2019/paying-medical-debt.html

A medical credit card is designed specifically to cover medical expenses, and in some instances, they are used to pay for specific procedures, such as dental care or eye surgeries. Most of these cards have an interest-free period ranging from six to twelve months. 

However, be wary of deferred interest. If you are unable to pay off your debt within the six to twelve month “interest-free” period, all of the interest that builds up during that time will accumulate and significantly inflate the amount you owe. Most credit cards, medical or otherwise, charge an average interest rate of 20%. 

Hire a Medical Bill Advocate 

If you are feeling especially overwhelmed by your medical debt, particularly if you were in the hospital for a lengthy amount of time and are facing a mountain of bills, you may want to hire a medical bill advocate.

These advocates negotiate on your behalf, and they are experts in reducing medical debt. Medical bill advocates know how to identify overcharges or errors. Do the math to determine whether hiring a medical bill advocate will ultimately save you money before hiring anyone.

Negotiate Costs Yourself 

Lastly, if your medical debt has already gone to a collection and you feel capable of doing so, you might be able to negotiate your medical debt on your own.

Debt collectors have probably bought your debt for a ridiculously cheap amount, and this knowledge will give you leverage when you discuss reducing your bills with them. 

You may also wish to do the work of a medical bill advocate and speak directly with your provider about lowering costs.

Examine your bills closely—even if the thought of looking at them again makes you anxious—to find any charges that appear to be too high or even incorrect. Consider combining this option with a payment plan to reduce your medical debt most effectively. 

Conclusion 

While medical debt is a nightmarish concept for most Americans, for some, it is an unpleasant reality. Excessive medical bills have the potential to rob many people of their finances before even taking overcharges or errors into account (despite insurance coverage, too, in many instances). 

Thankfully, many tactics for avoiding or relieving medical debt are readily available via the internet and word of mouth these days. These methods make it so that getting strapped with medical bills for both planned and unplanned visits to medical providers does not have to be so overwhelming and financially destructive.

Image by camilo jimenez

The Nuts and Bolts of Obamacare

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The Patient Protection and Affordable Care Act (PPACA) – known as “Obamacare” – was passed into law on March 23, 2010, and its main provisions were recently upheld by the Supreme Court.

The act is the largest and most sweeping healthcare reform ever enacted in the United States and will affect almost every aspect of the industry.

The act contains thousands of provisions that began to be implemented when the bill was passed and will continue to come into law between now and 2020. There are more provisions than can be covered in one article, but here is a summary of the most significant ones, and only those that relate directly to the general public. These provisions are complicated so the descriptions below will be brief.

Healthcare Coverage Provisions

These changes have the most effect on benefits, beneficiaries, exclusions and limitations as they exist in typical modern health plans.

Lifetime benefits. Effective this year, and applying only to new policies, insurance companies can no longer impose lifetime limits on “essential benefits”, like hospital stays.

Dependent coverage. Your children can stay on your health insurance plan up until they turn 26, even if they don’t live with you, aren’t in school, or might be married. This provision is in effect right now.

Dropping coverage. Insurance companies can no longer terminate coverage on patients when they get sick. This is also already in effect.

Preventative care services. Beginning August 1, 2012, all new plans are required to cover certain preventive services like mammograms and colonoscopies that won’t be subject to co-payments, deductibles and co-insurance provisions. Beginning in 2018 this requirement will extend to all existing insurance plans, and will also require check-ups without co-payments.

Pre-existing conditions. As of January 1, 2014, insurance companies will not only be prohibited from turning down customers with pre-existing medical conditions, but they won’t be able to charge higher premiums either. Gender based premium differences will also disappear. The only listed exception to the rule are smokers.

Deductibles. Beginning January 1, 2014, and only on employer sponsored plans, there will be a maximum deductible of $2,000 for single coverage, and $4,000 for other plans.

Subsidies

There are actually several subsidy provisions, but this one is the most sweeping.

Health insurance exchanges. As of January 1, 2014, health insurance exchanges will be set up by the individual states to subsidize insurance premiums for millions of people based on household income as a percentage of the federal poverty level. Insurance premiums will be capped at certain levels based on income relative to the poverty level, with the highest subsidies going to those households earning less than 133% of the poverty level, and the lowest going to those earning up to 400% of it. This is a complex provision, but it appears that the subsidy will come in the form of a refundable tax credit, which means the recipient will get the credit even if they pay no income taxes.

New Taxes

There are many tax changes pursuant to the act, but here are the ones that are most relevant to the largest number of people.

Payroll reporting. For 2012 and beyond, employers must report on your W2 the value of health insurance benefits they provided during the year. There are no apparent tax consequences to this – yet!

Medical deductions for income tax purposes. Currently, there’s a limitation applied to the deductibility of medical costs for income taxes; you must first reduce the amount of your medical expenses by 7.5% of your adjusted gross income and deduct the difference. Beginning January 1, 2014 the 7.5% reduction will rise to 10% of adjusted gross income.

Translation: fewer people will be able to deduct medical expenses in the near future.

Direct taxes. As of January 1, 2013 there will be an additional tax of .9% on earned incomes above $250,000 for married couples filing joint, and $200,000 for singles. The Medicare tax is also being increased. An additional 3.8% Medicare tax will apply on “unearned income, specifically the lesser of net investment income or the amount by which adjusted gross income exceeds $250,000 for married filing joint, or $200,000 for singles.”

“Cadillac insurance plans”. High cost insurance plans—defined as those costing in excess of $27,500 for families and $10,200 for individuals—will have an excise tax imposed on them beginning in 2018. The tax rate: 40%.

Penalties

In addition to new taxes, the bill imposes penalties.

Penalty for non-coverage. As of January 1, 2014 the act will impose an annual penalty on those who don’t have health insurance plans. The penalty will start out as the higher of $95 or 1% of gross income, but rising in 2016 to a minimum of $695 for indivduals and $2,085 for married filing joint, or 2.5% of income. This penalty was a major part of the recent Supreme Court case on the act, and was upheld with the logic that Congress has the authority to “levy the penalty as a tax”, rather than an attempt to force people to get insurance coverage.

Employer penalties. Beginning January 1, 2014, employers with more than 50 employees will be subject to a penalty of $2,000 per employee if the employer does not provide health insurance coverage for full-time employees.

Other provisions

Health insurance for Congress. Beginning in 2014, not only members of Congress but also their employees will be moved out of the Federal Employees Health Benefits Program, and into a plan provided under the act. In effect, Congress will be subject to the same health care plans the rest of us are.

Medicare Part D. By 2020 Medicare Part D for prescription drug coverage will be ended.

There are numerous other provisions that will affect both Medicare and Medicaid that are too complex to discuss here. Due to their complex nature, these provisions has been simplified – this is a summary presentation of the act, not a line-by-line breakdown.

Also keep in mind that the bill is still moving through the system and will be amended as it does. Any of these provisions could be modified, reduced, expanded or even canceled before, during or after implementation.

What are your thoughts about Obamacare?

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