Why You Need Uninsured/Underinsured Motorist Coverage

Hope you`re covered if you get into a fender-bender and discover that the at-fault driver is uninsured. In that unpleasant situation, your auto insurance will kick into gear if you have uninsured/underinsured motorist protection, and among those who would steer you in the direction of those sentiments are auto insurance industry representatives such as Nicole Mahrt, Dave Snyder, Dan Kummer and Sharon Cooper.

Think of uninsured/underinsured motorist coverage as an important self-help tool that generally is pretty affordable. It`s important for people to protect themselves in case they get into an accident with someone who either has no auto insurance or doesn`t have enough coverage, says Mahrt, western regional public affairs director for the American Insurance Association. "You probably can`t afford to drive without it."

"Everyone does need it if you live in a state that mandates that coverage, and about a dozen states do," says Mahrt`s colleague, Dave Snyder, vice president and assistant general counsel for the American Insurance Association in Washington, D.C. "Your auto insurance provider should be able to tell you whether that coverage is mandated or is optional. Beyond that, if you buy it, you need to determine how much coverage you need. How much you need depends on whether you have health insurance and whether you want to be compensated for ‘pain and suffering,` which you get with UM/UIM."

"You can protect yourself from being hurt financially by buying uninsured/underinsured motorist protection," points out Kummer, director of auto insurance for the Property Casualty Insurers Association of America in Des Plaines, Ill. "Without uninsured/underinsured motorist coverage, you have little likelihood of gaining payment for damages you or your vehicle sustain if you`re involved in an accident with a driver who is either underinsured or driving without any coverage," says Kummer.

Selective Insurance Senior Vice President Sharon Cooper characterizes uninsured/underinsured motorist protection as "an important coverage for consumers because it protects them in situations they can`t plan for. Without the coverage, their only recourse may be to sue an individual to cover their losses if (that other driver) doesn`t have insurance or enough insurance."

Uninsured coverage also covers you if a hit-and-run motorist hits your vehicle. "With this coverage," Kummer continues, "you and your passengers receive compensation for medical expenses, lost wages and other injury-related losses. You can sue that person, but if that driver has nothing, you`ll get nothing even with a favorable judgment."

Underinsured motorist protection pays you for damages that surpass the amount of coverage carried by a driver who is underinsured. "That's valuable, because many drivers carry minimum limits, and that may be insufficient to cover your injuries and lost wages," notes Kummer.

The Insurance Information Institute's Carolyn Gorman extolled the virtues of such catastrophic coverage. "You absolutely need this coverage, because, if you get into an accident with someone who is driving without insurance or doesn`t have enough of it, you want to be made financially whole again. You have to protect yourself fiscally and physically, and uninsured/underinsured motorist protection can help you in that regard."

Uninsured motorist protection can help you in another way. "Let`s say you`re a pedestrian. If you carry this coverage and you get hit by a car while you`re trying to cross the street, the coverage could pay your medical expenses and lost wages," says Gorman, vice president for III, based in New York.

Insuring Your Home-Based Business Car

To buy commercial or personal car insurance coverage for your car: That is the question…asked by most home-based business owners when considering what kind of car insurance to purchase for their car. As luck would have it, most business owners have enough coverage under their personal auto insurance policy to protect their investment; however, that is not always the case for all home-based business owners!

“As long as you’re not driving other people around a lot of the time, you're probably fine with a personal auto insurance policy,” says Ed Charlesbois of The Travelers. “For instance, if you operate a delivery service out of your home, you're going to need a commercial car insurance policy that will cover your business assets in the event you're involved in a car accident. However, if you're a real estate broker and you drive clients around from time to time, you can get away with having just a personal auto insurance policy.”

Auto Insurance Costs For Your Home-Based Business
Home-based business owners need to pay attention to liability limits in order to protect their personal and business assets as well. That’s why your liability limits and deductibles are major factors in how much you’re going to pay for auto insurance. The higher your car insurance limits and the lower your deductible, the higher your car insurance premium rates will be. When determining your car insurance premium, auto insurance companies typically look at the number of miles you drive, who drives your vehicle, your driving record and your claims history.

“To help minimize their financial risk, home-based business owners should consider heightening their liability limits,” noted an official from Insurance.com. “In the event of an accident, the injured party may come after you as an individual and as a business, so by having higher liability, you are saving yourself from potential headaches in the future.” Whether or not you choose commercial or personal auto insurance, your protection is the same, but the cost of commercial may be slightly higher than that of personal.

Insure What You Haul
If your business requires you to shuttle equipment from job-to-job, and you have a home-owners or renters policy, your business equipment will have minimal coverage. However, depending on the value of your equipment, your home-owners or renters policy may not be enough and you may need to take out a rider to cover your equipment.

Business Owners Policy
Business Owners Policies cover property damage and your liability risks on and off the business premises. On the average, Business Owners Policies will cover up to $10,000 to replace lost, stolen or damaged equipment, so long as it isn’t a permanently attached piece of equipment.

If you are a home-based business owner and would like to make sure you are getting the most out of your car insurance, log on to Insurance.com’s auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers – helping you find the best and cheapest auto insurance coverage for your home-based business.

Car Insurance Costs May Vary for Select SUVs

Insurance premiums depend on several factors, including your age, sex, place of residence, and driving record; the amount and type of coverage you select; and whether you drive your vehicle primarily for business or personal purposes. This explains why one driver might pay a different premium than another for the same make of motor vehicle.

But why might it cost you more to insure one sport utility vehicle (SUV) than another?

In addition to the factors listed above, insurance companies also:

• Consider the likelihood that a particular brand of vehicle will be stolen, vandalized, or involved in an accident
• Track the costliness of repairs
• Obtain their information by consulting various claim statistics

The Highway Loss Data Institute, for example, indexes the amount of money insurance companies have paid out (on average) for collision, injury, and theft claims for various types of motor vehicles. Therefore, the SUV that is most attractive to thieves across the country will probably be more expensive to insure than the one that is stolen least often.

In addition to these industry wide statistics, insurance companies consider their own experience with claim payouts. For instance, if one company has paid numerous claims regarding a particular make of SUV, it may charge higher insurance rates for that type of SUV than another company would. For that reason, it's wise to obtain quotes from several insurance companies before insuring your SUV.

Note: In some cases, the state, not the insurer, decides how each vehicle is rated.

The Most Expensive States for Auto Insurance

Good drivers out there who feel that they're paying too much for the bad drivers take heed. Good drivers in New Jersey and DC are paying through the nose to cover the costs of the less careful, while bad drivers in South and North Dakota live in auto insurance heaven despite their wanton ways.

That's a bit unfair to the Garden State and the Nation's Capitol-those are considered entirely urban and probably shouldn't be compared to rural states. Leaving those two alone would then give Massachusetts and New York the dubious distinction of being the most premium-heavy jurisdictions. Natives won't be surprised-all over the Union these states' streets (or at least the drivers on them) are reputed to be especially mean. When was the last time you heard of a New York cabbie pleasantly yielding the right-of-way with a wave and a smile?

Here are the most expensive states for auto insurance:

1. District of Columbia
2. New Jersey
3. Massachusetts
4. New York
5. Connecticut
6. Delaware
7. Nevada
8. Rhode Island
9. Louisiana
10. Arizona

The Many Benefits of Auto Club Membership

Auto club memberships (such as AAA) can have many advantages, well beyond just road services and hotel discounts. Even if you don't own a car, consider joining an auto club. Membership in an auto club (also known as a road and travel club) may save you money and offer other attractive perks.

Some places, such as hotels and stores, may not advertise discounts, so always ask. In fact, the savings you experience may even pay for yearly membership fee ten times over.

Emergency road services
One of the key benefits of auto club membership is free emergency roadside service. Even if you don't own a car, these services may come in handy if you're borrowing someone else's car or riding along as a passenger. Roadside services include:

• Towing up to a certain distance (e.g., 50 or 100 miles)
• Tire changing
• Jump starting
• Vehicle extrication (if stuck in a ditch, for example)
• Key retrieval (if you lock the key in the car)
• Gasoline (if you run out of gas)
• Minor mechanical repairs and adjustments

Discounts, discounts, and more discounts
Auto club members typically receive discounts (or cash back, in some cases) for a wide variety of products and services, such as:

• Lodging at hotels, motels, campgrounds, and RV resorts
• Restaurants
• Car rentals
• Airfare and train tickets
• Auto repairs and parts at certain facilities
• Admission to movie theaters, theme parks, and other types of entertainment
• Computers and Internet service
• Insurance
• Retail and outlet stores (we know one customer who saved 30% on her eyeglasses at a national eyeglasses chain, which more than paid for her auto club membership)

Insurance discounts and protection
You may already know that auto club members often receive discounts on their auto and homeowners policies. What you may not know is that other insurance products may be offered through your auto club at low cost, such as:

• Group term life insurance
• Short-term medical insurance
• Long-term care insurance
• Personal umbrella liability insurance
• Flood insurance
• Insurance for your personal valuables
• Insurance for small-business owners

Yes, there's more
Here are just some of the other perks you might enjoy as an auto club member:

• Maps, foreign travel books, and other publications
• Trip routing services
• Travel agency services and vacation planning
• Mortgage services (including lower rates and closing costs)
• Auto loan financing
• Expert advice about car maintenance and the car-buying process
• Bail bond protection and reimbursement of legal costs
• Emergency check-cashing services
• No-fee traveler's checks
• Credit card membership and services

For more information, visit the American Automobile Association’s site at aaa.com. You can find other auto clubs online as we

Auto Insurance Rates On The Rise

A recently released auto insurance study shows that rates are continuing to climb, but you can minimize your financial pain if you "shop around" for coverage.

Shop Around
Insurance prices for the same coverage can vary by hundreds of dollars, "so it pays to shop around. Get at least three quotes," urges Jeanne Salvatore, vice president of consumer affairs for the Insurance Information Institute (III) in New York.

"Use different tools to extract the best terms and conditions such as logging on to various insurance websites, phoning carriers, and talking to friends," says Janine Gibford, government affairs advocate for the Association of California Insurance Companies (ACIC), in Sacramento.

Raise deductibles
Raising the comprehensive/collision deductible "is one of the easiest ways to cut your auto insurance bill," points out Salvatore. Bumping up the deductible can save a consumer about 15% to 20% on comp/collision coverage costs. Just be sure you can afford the deductible in the event of an accident or claim.

Lower coverages on older vehicles
Gibford has a second cost-saving tip for consumers. They can save "quite a chunk of change" if they decide to drop collision and/or comprehensive coverages on their older vehicles, she says.

Make sure you can afford that new car
Auto insurance costs should enter the equation when shopping for a new or used car. "The choice of car will have a lot to do with how much you'll pay for insurance," said Salvatore. "Things like the cost of repairs, the likelihood of theft, and a vehicle's overall safety record can all affect how much you pay for insurance. If you can't afford proper coverage, then you shouldn't buy that car."

Look for discounts
Salvatore noted that a number of insurers offer discounts for car features that decrease the chances of injury or theft, such as air bags, anti-lock brakes, and anti-theft devices.

Laura Toops, spokeswoman for the National Association of Independent Insurers, Des Plaines, Ill, mentioned steering wheel locking devices and car alarms that " would serve as deterrents to would-be car thieves, and most insurers will recognize that and give you a break on your insurance premium".

Having multiple cars and drivers on your policy typically provides discount opportunities as well, as can defensive driving courses and AAA membership.

Keep your driving and credit histories clean
Salvatore emphasized that safe driving records save money over the long haul. "Those with clean driving records, meaning no moving violations or history of at-fault accidents, will pay less for insurance than drivers with spotty records."

Credit scores are an important rating factor for most insurance companies. Peter Gorman of the Alliance of American Insurers talks about the role of credit scoring in insurance underwriting. Gorman cites "strong statistical evidence in numerous studies that policyholders with good credit are more likely to take care of potential problems that could lead to losses, like repairing a leaky roof or water pipe or replacing worn auto brakes before they occur and result in expensive claims." Just another reason to maintain a good credit history.

And don't forget to shop around
To fuel your drive to find the best insurance deal, be sure to shop around for the company that works best for you! There just may be another company out there that better fits your profile. Since prices can vary by hundreds of dollars, it’s certainly worth your time to shop around.

How Much Will My Insurance Rate Increase After One Accident?

It's no accident that drivers often save money on their auto insurance bills if they haven`t been in a fender-bender or any other roadway accident. On the other hand, if you have been in at least one vehicular accident, chances are you`re going to pay more for car insurance when your policy comes up for renewal. Insurance industry experts such as Carolyn Gorman point out that this increase can "vary" for several reasons.

The amount is "going to vary from state to state and from one insurer to another," says Gorman, vice president of the Insurance Information Institute, which is based in New York. "But a lot depends on the nature and severity of your vehicular accident and who's found to be at fault. If you were driving drunk, you are going to be in deep trouble with the insurance company and the law. In that situation, you're likely to have your policy non-renewed. However, you can still get insurance, but it's going to cost you a lot more."

State Farm Insurance Co., for example, typically ratchets up your premium if an insured is found to be "at-fault" for a vehicular accident - meaning any accident in which the company pays more than $750 in property damage liability and collision claim payments, according to State Farm spokesman Bill Sirola. State Farm policyholders should expect to see the increase at renewal time on their liability, collision, and personal injury protection or medical payments coverages, Sirola confirms.

"If you've had a good record, and you've been with a particular company for more than five years, companies such as Allstate won't necessarily bump up your rates if you're found to be at-fault in a relatively minor vehicular accident," says Daniel Kummer, director of auto insurance for the Property Casualty Insurers Association of America, in Des Plaines, Ill.

Your rate rise depends on various factors such as state law and your insurance company rating plan," says Dave Snyder, American Insurance Association vice president and assistant general counsel.

Snyder says that "a minor accident may be forgiven under state law or by an insurance company. On the other hand, there could be severe insurance and legal consequences if there is a major accident with serious bodily injury and the at-fault driver is operating the vehicle under the influence of alcohol. There could be a dramatic increase in insurance rates or even a cancellation of coverage, subject to state law. But beyond that, there could be heavy fines and even jail time involved."

Some companies such as State Farm have a forgive-the-first-accident policy, but qualifications vary from company to company. When purchasing auto insurance, be sure to ask if that particular insurer has a forgive-the-first-accident program and if so, how you might qualify.

Making More Informed Choices for the New Year

The start of each year often inspires people to improve their lives. This year, the experts at Insurance.com suggest that people broaden their list of New Year resolutions by evaluating their personal life, auto and homeowners insurance needs for the coming year.

During the last year, people may have seen pay raises, higher monthly expenses or the birth of a new baby. These kinds of changes in circumstances and responsibilities can significantly effect a family's insurance requirements.

"Insurance.com recommends that policyholders take a more active role in managing their insurance coverage this year," said Steven Paul, vice president at Insurance.com, the online insurance resource. "They can start by understanding their policy needs, then shopping around and comparing their current rates with other providers."

The insurance resolutions are simple:

Resolution #1 - Life Insurance
Carry Enough Coverage: "I will not fall short in protecting my family's future." While people do not like to dwell on the subject of life insurance, policyholders should understand how much coverage they need to protect themselves and their families. The life insurance coverage most people carry is not sufficient, which can lead to a false sense of security. Policyholders should resolve to carefully think about their family's future needs and evaluate whether their current policy would adequately protect their family in the case of misfortune.

Insurance.com offers a few guidelines to help policyholders establish the appropriate amount of coverage, beyond the need for "final costs," such as funeral expenses. Regardless of which spouse is the primary breadwinner, both need to carry coverage to replace any lost income or rise in household expenses if one were to die. In addition to purchasing coverage that would provide regular income, policyholders should consider adding more protection to cover the sum of their outstanding debt, as well as adequate protection to cover six months of emergency living expenses for their family. Finally, some policyholders may choose to purchase still more protection in the amount needed to ensure a college education for all of their children.

Resolution #2 - Homeowners Insurance
Maximize Existing Coverage: "I will ensure my policy fits both my property and liability needs."

Because homeowners insurance offers a broad range of protection, determining the right amount and type of coverage can be confusing. While property insurance covers the structure of a home and its contents, carrying the appropriate amount of liability coverage provides equally important protection for personal liability, medical payments, damage to someone else's property and personal injury to others. Without adequate liability insurance, homeowners could put themselves at risk for a catastrophic financial loss, if, for example, they were responsible for an accident that resulted in a lawsuit.
Liability typically provides coverage for up to $100,000 in damages. However, some homeowners may decide they need a higher level of coverage based on their individual situations.

Resolution #3 - Auto Insurance
Be an Educated Consumer: "I will not renew my auto insurance passively."

Each year, many drivers receive their car insurance renewals by mail and file them away without a second glance. With auto insurance costs rising, drivers should consider a more proactive approach to renewing their policies this year. The experts at Insurance.com suggest drivers shop around and consider the following questions before renewing their auto insurance for the coming year:

• Does their current provider offer competitive rates?
• Is the underwriting insurance company financially solid and able to support claims?
• What discounts are offered by their provider and are they receiving all of the discounts for which they are eligible?
• What level of customer service does their current insurer offer? Does the company provide extended hours of operation, 24-hour claims service and knowledgeable staff?

Taking time to review insurance coverage and comparison-shop for competitive rates can help drivers save money on their insurance policies in the coming year.

How Your Driving Record Impacts Your Insurance Rate

In most states, the motor vehicles department has a "point" system, which is used to track your driving record. Generally, each type of infraction (moving violations, parking tickets, at-fault accidents, driving under the influence, etc.) is assigned a certain point value. When you are found guilty of one of these infractions, the appropriate number of points is added to your driving record. The more points you have, the worse your record.

Typically, an auto insurance company has the right to review the driving record of anyone who applies for an auto insurance policy from that company.

The purpose of this initial review is two-fold:

1. To determine whether you meet the insurer's standards of insurability (i.e., whether you will be issued a policy at all)
2. To evaluate your risk potential (i.e., how much your insurance will cost).

However, each insurance company has its own method of evaluating applicants, so the points on your driving record may or may not have a direct impact on the rates you pay for auto insurance.

Once you are issued a policy, your insurer probably has the right to review your driving record at any time (depending on your state). Of course, few insurers have the resources or the inclination to run daily checks on the driving records of every policyholder, so the frequency of these checks actually may be quite low. There are, however, certain times when you can be relatively sure an insurance company will be checking your record. These include:

• When you initially apply for coverage
• When you request a change to your policy (increased coverage amounts, etc.)
• When you add a vehicle to your policy, or change the covered vehicle
• When your policy comes up for renewal

If a review of your driving record uncovers negative information, there's a chance your insurance rates will increase. Insurers typically use their own "point" system to determine the amount of the increase (if any). Although these systems can vary, most insurers use a system based on the Safe Driver Insurance Plan, which is issued by the Insurance Services Office (ISO).

The Safe Driver Insurance Plan lists different types of auto accidents and moving violations, and assigns a "point" value (from 0 to 4) to each type based on the severity of the incident. Under the Plan, as you accumulate points, you are assessed surcharges that generally result in higher insurance rates. The number of points charged determines a premium increase.

Ensure Timely Collection From Your Insurance Company

Your state has some form of regulation that defines what is acceptable conductin the insurance industry. Many states have enacted an "Unfair Insurance Practices Act" or an "Unfair Claims Settlement Practices Act". Or, the regulations may be found in a broader law that encompasses all trade practices.

The specifics of these regulations vary widely from state to state, but, generally speaking, an insurer is required to:

1. Acknowledge your claim within a certain time frame, such as 15 days;
2. investigate your claim promptly;
3. make a good faith attempt to process a prompt, fair, and equitable settlement of claims in which liability is reasonably clear.

Additionally, an insurer may not refuse to pay your claim without a valid reason.

If you feel that your insurance company's agent or claims adjuster has violated your state's regulations, talk to that person's supervisor. If you get no satisfaction, file a complaint with your state's insurance department. If the department receives enough similar complaints, it will conduct an investigation. If it finds that the insurance company has a pattern of misconduct, it may impose a fine, punitive damages, or, for especially grievous offenses, revoke the company's license.

A minority of states allow you to sue an insurance company privately for a regulations violation against you individually. If you find yourself in such a dispute, some legal rules may help you, such as:

1. Coverage provisions will be construed broadly;
2. limitation and exclusion provisions will be construed narrowly; and,
3. ambiguities in the policy will be interpreted in your favor.

In some states, if you are successful in court, you may only recover the amount of your claim. But, in other states, you may also be awarded legal fees and punitive damages.

Here are a few tips that may be useful for dealing with an insurer about a claim.

Before you buy the policy:

• Take notes while the agent is explaining the proposed coverages and save them for future reference.
• Read the proposed policy and understand the key terms, such as deductibles, exclusions, and limitations.
• Complete the application form honestly and thoroughly.

Before you have a claim:

• Read your actual policy to understand coverages

When you have a claim:

• Review your policy and notes
• Promptly notify the insurance company of the loss
• Do not exaggerate the claim
• Keep a log of all correspondence with the insurance company (especially telephone calls)
• Gather materials to prove your claim (e.g. receipts)
• Always keep copies of any documents you give to the insurance company
• Get your own estimate of the loss
• Do not submit to an "examination under oath" without legal representation
• Do not sign a check or release until you are satisfied it is fair

Most and Least Expensive Cars for Claims

You may know that it costs more to repair some cars than others, and more to insure some cars than others. It may not have dawned on you that this also translates into higher claims payments from you insurance company. What does that mean to you? Higher claims typically lead to higher insurance rates. For example, when you file a claim with your insurance company, there’s a good chance that your rates will go up at the time of renewal. The dollar amount of that claim can have a big impact on your rate increase. Below you’ll find the most and least expensive models for various types of claims.

Models that are among the most expensive for theft claims include:

• Acura Integra two-door
• Acura Integra four-door
• Jeep Wrangler
• Jeep Cherokee four-door
• Honda Prelude two-door

Models that are among the most expensive for injury claims include:

• Suzuki Esteem four-door
• Mitsubishi Mirage four-door
• Kia Rio four-door
• Mitsubishi Mirage two-door
• Kia Sephia four-door

Models that are among the most expensive for collision claims include:

• Lexus IS 300
• Hyundai Tiburon two-door
• Kia Spectra four-door
• Suzuki Esteem four-door
• Mitsubishi Mirage four-door and Audi A6 Avant Quattro station wagon (tie)

Models that are among the least expensive for theft claims include:

• Buick LeSabre
• Mercury Grand Marquis
• Buick Century and Saab 9-5 four-door (tie)
• Buick Park Avenue and Pontiac Montana (tie)

Models that are among the least expensive for injury claims include:

• GMC Yukon XL 1500 two-wheel drive
• GMC Yukon two-wheel drive
• Chevrolet Tahoe two-wheel drive
• GMC Yukon XL 1500 four-wheel drive
• GMC Sierra 2500 four-wheel drive

Models that are among the least expensive for collision claims include:

• GMC Yukon two-wheel drive
• GMC Yukon XL 1500 two-wheel drive
• Chevrolet Tahoe two-wheel drive
• Ford Excursion two-wheel drive
• Ford Escape two-wheel drive

Easy Ways To Avoid Auto Accidents

It’s no accident that numerous motorists avoid collisions by applying basic safety principles on America’s roadways. First of all, insurance industry spokeswoman Heather Ryndak urges drivers to buckle up, drive defensively, obey the rules of the road, and be courteous behind the wheel.

Auto accident prevention is a deadly serious matter to Ryndak who cited disquieting statistics proffered by the National Highway Traffic Safety Administration (NHTSA), in Washington, D.C. The NHTSA reports that driving distractions are to blame for about 4,300 crashes every day on U.S. roads. “Driving safely is a matter of personal responsibility,” contends Ryndak, spokeswoman for the Property Casualty Insurers Association of America (PCI), in Des Plaines, Ill.

Ryndak advises motorists to take various “steps to prevent distractions from affecting their driving performance,” and her PCI colleague, Dan Kummer offered specifics. “Topping our list is don’t drink and drive,” points out Kummer, PCI director of auto insurance. “One-third of all auto accidents are related to drunken driving.” There are a number of driver distractions to avoid when driving, says Kummer.

Motorists can minimize distractions by: pulling over to a safe place to …

• Dial numbers and talk on cell phones
• Pick up items from floormats
• Change radio stations
• Change CDs
• Look at a map or read newspapers
• Take care of personal needs such as eating or personal grooming

“Dialing a phone number or checking your voice mail requires you to punch in codes or numbers, and that’ll draw your attention away from the roadway,” says Tully Lehman, spokesman of the Insurance Information Network of California.

Kummer calls on motorists to avoid aggressive driving. “Don’t escalate a potentially dangerous situation by angrily gesturing at a motorist who cuts you off on the freeway. If such a situation is escalating, don’t take matters into your own hands, call the police.”

Motorists should exercise courtesy when driving to avoid problems on the roadways. Adds Kummer: “It seems as if courtesy is something of a lost art. If someone sees you use your turn signal before changing lanes, they often speed up to cut you off. Let them pass; don’t try to force your way in. Many accidents occur because of aggressive driving.”

If you’re in an accident, Kummer suggests that you “pull over to the side of the road, exit your vehicle and exchange insurance information behind roadway safety railings.”

Kummer urges motorists to keep a safe distance between your car and the vehicle ahead of you in your lane. “As a general rule of thumb, there should be a separation of at least one car length for every 10 miles an hour you are driving.”

Lastly, Lehman offers another simple but effective driver safety recommendation. “Slow down in foul weather. In rain or snow, you should give yourself more distance for braking in case traffic comes to an abrupt halt.”

10 Tips for Avoiding Auto Accidents

1. Avoid drinking and driving.
   
2. Minimize distractions such as reading newspapers or talking on the cell phone when driving.
   
3. Properly maintain vehicles. Tune up cars according to maintenance schedule, and especially take note monthly of tire condition.
   
4. Do not encourage aggressive drivers. Let other aggressive driving behavior roll off your back, or call the police. Losing your temper could worsen the situation.
   
5. Leave a safe distance between your cars and others. For every 10 miles per hour of speed, leave at least one car length space between your vehicle and the vehicle ahead.
   
6. Maintain a constant speed. Don’t continually slow down or speed up.
   
7. Adjust mirrors properly and check the side and rear-view mirrors every 15 seconds.
   
8. Take defensive driving classes to improve your ability to drive and be better prepared for the unpredictable behavior of other motorists.
   
9. Proceed with great caution through intersections. Intersections are the center of most accidents. When entering an intersection, look left, then right, then left again to ensure the area is clear.
   
10. Be sufficiently aware of road conditions and be more visible. Keep your lights on at dusk and dawn and during rain, as is the law in most states. Understand basic vehicle dynamics, such as knowing how to recover from a skid.

Source: Property Casualty Insurers Association of America (PCI), in Des Plaines, Ill.

Insuring Teenage Drivers

As you may have already discovered, insuring a teenage driver can be very expensive. Drivers under the age of 25 pose the greatest risk to insurers because of their high level of at-fault accidents. Insurance companies seek to limit their exposure by charging higher insurance rates for 16- to 24-year-olds than for any other age group.

How expensive is it?
One option for insuring a teenage driver would be to add your teenager to your existing auto insurance policy once he gets his permanent driver's license. Although this can still be an expensive prospect, your teen might be able to take advantage of certain discounts as a driver on your policy (e.g., safe-driver and multiple-car discounts for which you are eligible).

If you drive an expensive vehicle, it will be even more costly to add your teen to your policy. In this case, you might want to buy your son his own car (a used economy model, of course) and insure it in his name, rather than add him to your own policy. Older vehicles generally pose less risk to insurance companies, because repairs tend to be less expensive than repairs to newer models. Lower risk for the insurer typically translates into lower insurance premiums for you.

What are my options?
The only way to determine your most cost-effective option is to contact your insurance company and shop around with other companies while you’re at it. If you're thinking about purchasing a used car for your teen, be prepared to tell your insurer the make, model, and year of the cars you're considering. This way you can receive accurate insurance quotes. These quotes can help you decide whether to purchase separate insurance for your son or add him to your policy; they may also help you decide which car to purchase, if you go that route. So, get quotes for him as an addition to your policy, as well as for him under his own policy.

Shop Around
You should shop around for other insurance companies by going online for multiple quotes. You may find that it’s less expensive to insure your household drivers with another company, even by several hundreds of dollars. And couldn’t you use that savings for the college fund?

Should You Buy Rental Car Insurance?

If you're renting a car this summer, you'll probably be asked to purchase an insurance package from the rental car company. Even if you're fairly confident that you don't need the insurance, an agent can sound awfully convincing. Don't be put on the spot. A little bit of research could save you from making the mistake of buying coverage you don't need or foregoing coverage that you should have.

The best way to protect yourself
In general, the best way to protect yourself when using a rental car is to purchase a regular automobile insurance policy that explicitly extends collision and comprehensive coverage to rental cars in any state or country. If you don't own a car and you rent on a regular basis, you might want to purchase a "nonowner" policy that will give you the same type of coverage. Unless you have an individual policy that explicitly extends coverage to rental cars, you should be cautious if you wish to avoid exposure to liability when renting a car.

Doesn't my credit card issuer automatically insure me when I rent a car?
Many major credit card companies claim to provide you with insurance coverage when you use their card to rent an automobile. However, you should read the fine print or get written verification from the company, because the coverage provided by your credit card is not always full coverage.

Some cards only offer coverage if you rent your car from a particular agency. Some limit the days for which coverage is available. Some will only provide coverage for certain types and/or classes of cars. With some cards, the coverage is not automatic and you must enroll in a program to get coverage. Some cards that advertise automatic rental insurance really only reimburse you for the deductible that you would have to pay under your regular insurance policy. Still others may provide only collision and comprehensive coverage, leaving you exposed for personal injury or property damage to others.

This is not to say that all credit cards fail to provide the coverage you need when you rent a car. It merely illustrates that you shouldn't blindly rely on your credit card issuer to protect you. Carefully examine the terms of your credit card agreement, then act accordingly

What about coverage offered by the rental agency?
The insurance packages that you purchase from a rental car agency (typically called "loss damage waivers") may or may not provide the protection you need. In your rush to get out of the airport, you may not realize that the loss damage waiver you purchased insures the rental car against theft, but not the contents. That could be a big surprise when your laptop computer and expensive camera are stolen from the rental car along with your luggage, and the rental agency rejects your claim (check your homeowners insurance policy in this case--you may be covered). Similarly, you may discover that the loss damage waiver you purchased for liability only provides limited coverage. Further, many loss damage waivers exclude certain items and/or situations from coverage.

Again, this is not to say that rental car agencies are unable to provide you with the protection you need. It is merely to illustrate that you should read the fine print, or get verification from an agent if you have any doubts.

What if I have a regular policy, but it isn't full coverage?
It is possible that you have insurance on your personal car, but you don't carry collision and comprehensive, or sufficient liability coverage. It may not be necessary to call your agent and add all that additional coverage just so that you will be protected when you rent a car in Mexico during your upcoming vacation. You can probably close the gaps in your coverage using loss damage waivers and coverage offered by your credit card insurer. However, as discussed above, you need to be cautious. You want to be sure you are getting the coverage you need.

Other sources of coverage
If you have suffered a loss that isn't covered under your auto policy, don't forget to check your other insurance policies. For example, if personal property has been stolen from your rental car, it may be covered under your homeowners or renters policy. Similarly, certain medical policies may cover costs of injuries not covered under your regular automobile plan.

As always, check with your insurance company to find out exactly what’s covered under your own auto insurance policy.

Take Advantage Auto Insurance Discounts

Drivers may assume that rates are similar among insurance providers, so they may not shop around for the best price. Buying a policy without researching it first, however, could be an expensive mistake.

If drivers take advantage of discounts that many providers offer, they can significantly reduce the cost of car insurance. Understanding the factors that impact auto insurance premiums can help savvy shoppers make better decisions about their coverage and possibly save themselves some money in the process.

The most auto insurance discounts fall into one of three categories. Read below to identify possible discounts that could help you save on auto insurance this year.

1. Policy-Related Discounts:

• Carefully select coverage - For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of a car against its current premium combined with its deductible, it may make sense to drop some coverage. Another way to lower a premium is to select a higher deductible. The money saved annually could be significant, especially if the vehicle is never involved in an accident.
  
• Consolidate - Most providers offer multi-policy and multi-vehicle discounts. Consolidating policies - combining car and homeowners insurance - offers convenience and can save both time and money. Additional discounts may also be available for people who have more than one vehicle insured with the same provider.

2. Vehicle-Related Discounts:

• Choose a highly rated model - Do some research before buying a car. Industry agencies assign a rating to every car model based on historical collision, injury and theft claims, among other factors. The higher the rating, the more consumers will reduce their premium. Conversely, choosing a flashy red sports car with a lower rating can significantly raise a premium because insurance providers associate the model with more risk, due to the increased probability of theft and fast drivers.
  
• Take preventative measures - Many providers award discounts to customers who take steps to protect their cars from physical damage and theft. By opting for anti-lock brakes, airbags, alarm systems and other security devices, consumers often can save significantly on their premiums.

3. Driver-Related Discounts:

• Drive carefully - A clean driving record can save money. The more careful and experienced the driver, the less risk insurance providers take, therefore lowering the premium. Some insurance companies also offer discounts to policyholders who complete a defensive driving class.
  
• Drive a friend to work - The premium also ties to how often a car is used. Discounts can apply to carpool participants, for example, because each individual's car is at less risk than if they commuted separately. Commuter discounts also are available for car owners using public transportation because their vehicles will have lower annual mileage than if they drove to work each day.

There are many ways that policyholders can save on their coverage. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles.

Give Your Automobile Insurance Policy a "Tune-Up"

National Car Care Month is a time when you should think about performing some preventative maintenance to improve your car's safety and help avoid breakdowns. It is also a good time for you to review and update your auto insurance policy to be certain you have the coverage you need. Depending on who you are, National Car Care Month is celebrated in both April and October.

A periodic review of an automobile insurance policy works in the same way that regular maintenance helps a car's performance, keeping it safe and dependable so it is there when you need it. By re-evaluating policy coverage on an annual basis, drivers can confirm that they have enough protection year-in and year-out as their circumstances change.

The experts at Insurance.com provide these general guidelines for drivers reviewing their policies:

Detail Your Car, Detail Your Policy - As your life changes, so do your automobile insurance needs. The Declarations Page is an important summary of your policy terms, coverage limits, and who or what is protected. Periodically updating this information is important because it can impact your coverage needs as well as the price of your premium, even if the update is simply a change of address. For example, if you are moving from crowded city streets to a quiet suburban neighborhood, you could save significantly on the cost of your collision coverage because a less populated area decreases your chances of being in an accident.

Look Out for Coverage Potholes - One of the most often overlooked areas of an automobile insurance policy is the Insuring Agreement. It is crucial that you review this portion of your policy for exclusions -specific events and circumstances not covered by the policy. Understanding exclusions can help you identify any holes in your coverage.

Roadmap Your Coverage - Required coverage types and minimums vary from state to state, so the level of coverage can often be a personal decision based on the age and worth of your vehicle and your other assets. There are four common types of insurance that you should review and update:

Liability - This type of insurance offers you protection if you injure or damage someone else or his property while driving your car. As your personal assets grow, it is critical that you increase your liability coverage. If not, your most valuable assets - including your home - could be seized as payment if your liability coverage fell short and a judgment was made against you.

Medical Payments Coverage - Regardless of who is at fault in an accident, owning this type of insurance will cover you if medical expenses are incurred by anyone involved in the accident.

Uninsured/Underinsured Motorist Coverage - This type of insurance protects you against losses caused by another motorist who is either uninsured, underinsured, or unidentified, such as a "hit and run."

Collision and Comprehensive - This type of insurance is optional and covers the cost of physical damage to your car. While most cars are damaged through a collision with an object or another car, harm to a vehicle or its contents can occur in other ways as well. For example, if a tree falls on your parked car, repairs could be very costly if you did not carry comprehensive coverage on your policy. However, if the car itself is old and only worth $500, it may not be cost effective to carry this type of insurance.

Performing routine car maintenance can prolong your car's life and improve its safety. Similarly, taking the time to review, understand and update your auto insurance policy can provide you with the increased security and comfort that comes with having the proper coverage.

Please note that this description/explanation is intended only as a guideline.

Protecting Your Child When Driving

An insurance trade organization official focused on why many children die in vehicular crashes. "…Kids typically die because they were out of position, meaning that the child in the seat belt, car seat, or booster was either not properly put into the restraint or the child got out of the restraint," according to Dan Kummer, director of personal lines-auto for the Property Casualty Insurers Association of America (PCI), headquartered in Illinois

Drive with peace of mind, knowing you're doing everything you can to protect your child's life when you're behind the wheel of the family car. Remember – that's precious cargo you're transporting in your back seat. Make sure your children are properly secured, before you start the car.

Buckle up for some sobering statistics on highway deaths, figures that underscore the importance of using proper child restraints for young passengers – a child car seat, booster, or seat belt.

In 2003, the National Highway Traffic Safety Administration reported that there were a total of 42,643 traffic fatalities in the United States. The age group of children up to 14 years old accounted for 5 percent (2,136) of those traffic fatalities.

Consider sound advice from Russ Rader, spokesman for the Insurance Institute for Highway Safety, in Virginia. Many children who die in vehicular crashes were riding completely unrestrained, said Rader. "Riding unrestrained in a motor vehicle always has been the greatest hazard for children."

Rader and the American Insurance Association's David Snyder both emphasized the importance of children riding in the back seat of a car. Rader identifies the back seat as the safest spot for young passengers. "This was true before airbags, and now it's doubly true. Infants and children riding in back seats cannot be in the paths of inflating airbags," said Rader.

Snyder brought up a second reason. The back seat generally affords more distance before you hit anything hard. And, secondly, the child is less likely to hit the airbag, which can cause injury, said Snyder, vice president and assistant general counsel at AIA, in Washington, D.C.

All states have child restraint laws for riding in automobiles, with most covering children of all ages but some only address specific age groups. Thus, there can be a gap in a state law impacting children in, say, the six to 12 age group categories. These are kids who may be too big for child safety seats and too small to fit into vehicle-equipped seat belts meant for older children and adults.
An insurance industry executive explains why booster seats are important to child safety in automobiles. Booster seats are valuable because they boost your children up about four inches, enabling them to correctly fit into your car seat belts, says Carolyn Gorman, vice president in the Washington, D.C., office of the Insurance Information Institute (III).

Make no mistake – using child safety seats in automobiles won't necessarily lead to a reduction in your auto insurance premium. Various factors go into determining what rates you pay for car insurance, said Kummer, who named some - type of vehicle, a driver's hometown, number of miles driven annually, and driving record, to name a few. "Child safety issues relate to saving lives, and policyholders who don't become involved in accidents tend to pay less for auto insurance coverage than those who have faced tragedy from highway crashes," Kummer maintained.

Kummer's take on car insurance premiums gets no argument from III's Carolyn Gorman. Motorists get better insurance rates if they have a clean driving record and aren't involved in any accidents on the roadways, Gorman says. "There are no studies that I know of on the correlation between a driver's use of child safety restraints in automobiles and auto accidents, but one might conclude that those who takes steps to protect their children and other passengers in their cars are, indeed, safety conscious and are more likely to have good driving records than those who speed along the highways without wearing seatbelts."

Lastly, keep in mind some travel advice from insurance industry spokesman Tully Lehman. As a case in point, Lehman singled out section 27365 of the California motor vehicle code that stipulates that every car rental agency in California must inform customers that state law requires all children under 6 years of age who weigh less than 60 pounds to be transported in the back seat of the vehicle in a child restraint system.

In California, the car rental agency is required to provide for rental a child restraint system if the customer does not have one available, said Lehman. "Regardless of which state you and your family visit, if you're renting a car there, be sure to know the rules of the road as they apply to child safety seats, because if only for the safety of your child, you'll want to be in compliance with applicable state regulations or laws."

The Cost of Owning a Vehicle: The nation's highest and lowest auto insurance, gas, and parking

"Oh, if only I had more time, more money, and more hair!" lamented Milton (not his real name), a middle-aged CPA, his new roadster stuck in traffic. He had the top down, and because traffic was at a standstill, the heat and fumes generated from the highway full of idling cars was unbearable: "Here I am, living in the Motor City of all places, and I am spending more on auto insurance than I would be in any other city in the nation." Then he thought (as no doubt many Michigan drivers do), "Why, I could be living in Roanoke, VA, where on average, drivers pay $4,404 less per year than I do." He mused on how the savings would be enough to pay for the hair transplants he wanted.

Five most expensive cities for auto insurance

1. Detroit, MI: $5,162
2. Philadelphia, PA: $4,142
3. Newark, NJ: $3,482
4. Los Angeles, CA: $3,225
5. New York City, NY: $3,127

Five least expensive cities for auto insurance

1. Roanoke, VA: $758
2. Wapakoneta, OH: $871
3. Chattanooga, TN: $911
4. Green Bay, WI: $948
5. Raleigh, NC: $949

Fill up the tank - empty out the pocket
If our driver had added in the cost of gas, he might have broken down completely. Michigan`s gas prices are somewhere near average, but with gasoline prices nationwide around 25% higher than a year ago, that`s not much to celebrate.

Five most expensive states for gasoline

1. California: $2.641
2. Nevada: $2.533
3. Hawaii: $2.540
4. Washington: $2.493
5. Oregon: $2.482

Five least expensive states for gasoline

1. Minnesota: $2.043
2. New Jersey: $2.064
3. Oklahoma: $2.066
4. Missouri: $2.075
5. Ohio: $2.123

Are things really that bad?
It depends how you look at it. When the average annual cost of car insurance is over $5,000, the cost of premiums is a significant portion of most families` household budget. What is worth celebrating is the fact that in spite of the higher prices, Americans can still indulge their addiction to overpowered, fuel-guzzling motors. Adjusted for inflation, gas prices are actually lower than they were 20 years ago, especially when compared with much of the world. That should be at least a small consolation when filling the tank costs over $50.

To injury is added insult
Back to our friend Milton, who has finally arrived at his destination and is now looking for parking. He knew that the average daily rates across America had increased 3.5% from a year ago. His only consolation today is that parking in Detroit is considerably less than it is in Boston. Too bad he can`t find his wallet.

Five most expensive cities for parking

1. Honolulu, H:I $32.75
2. Boston, MA: $30.00
3. San Francisco, CA: ($23.90)
4. Chicago, IL: ($22.50)
5. Los Angeles, CA: ($20.90)

The five least expensive cities for parking

1. Orlando, FL: ($6)
2. Dallas, TX: ($6)
3. Phoenix, AZ: ($6.75)
4. Detroit, MI: ($7)
5. Memphis, TN: ($7)

Singing the Praises of Graduated Drivers Licensing Programs

Why are these programs so important?
Statistics show that the fatality crash rate for 16-year-old drivers dropped sharply after states started implementing graduated licensing laws in the mid-1990s. For instance, fatal crash involvement based on the population of 16 year-olds declined 26 percent during the 10-year period ended in 2003. This is the main finding of a new Insurance Institute for Highway Safety study (IIHS). The overall number of 16-year-old drivers in fatal crashes decreased from 1,084 in 1993 to 938 in 2003, while during the same period there was an 18 percent increase in the 16-year-old population.

Graduated licensing programs consist of three stages/phases:

• Stage One (Learner's Permit) - The young driver must be accompanied by a licensed adult.
• Stage Two (Intermediate License) - The driver takes a behind the-wheel road driving test and can drive alone, with restrictions. There are limits on night driving and transporting teen passengers.
• Stage three - Full licensing.

Teenagers still a major road hazard
But make no mistake -- even with the encouraging findings of the IIHS, teenage drivers still shape up as a major hazard on America's highways. Teenagers drive less than most older drivers, but - alarmingly -- the number of crashes and crash deaths are disproportionately high for teenage motorists. Want proof?

The IIHS reports that, based on crashes of all degrees, the crash rate per mile driven amount 16 to 19 year olds ranks four times greater than the risk among older drivers. Vehicular accident risk runs highest for 16 year olds, according to the IIHS. Matter of fact, the crash rate per mile driven is twice as high among 16 year olds as it in among those in the 18-19-year-old age group.

So why are the crash rates so high among young drivers? It's because of "young drivers" immaturity combined with driving inexperience," answered IIHS spokesman Russ Rader. He says that the immaturity is evident "in the speeding, tailgating and other risky driving practices of many young drivers."

What can you teach your teenage driver to help them drive more safely?
Here are five important driving tips that every teen should know:

• Drive defensively
• Limit distractions
• Buckle up for safety
• Don't drink and drive
• Obey the speed limit

Car Thieves Favor Foreign Car

Car thieves have strong preferences. They prefer stealing imports rather than domestic models, according to the newly released car theft study of the National Insurance Crime Bureau (NICB).

The NICB reviewed auto theft data reported to the West Virginia-based National Crime Information Center and from that information developed this list of the make, model, and model year of the most reported stolen vehicles in 2004.

Top Ten Most Stolen Vehicles, 2004

1. 1995 Honda Civic
2. 1989 Toyota Camry
3. 1991 Honda Accord
4. 1994 Dodge Caravan
5. 1994 Chevrolet Full Size C/K 1500 Pickup
6. 1997 Ford F150 Series
7. 2003 Dodge Ram Pickup
8. 1990 Acura Integra
9. 1988 Toyota Pickup
10. 1991 Nissan Sentra

In 2004, 1,237,114 motor vehicles were reported stolen, representing a drop of 23,357 vehicles from 2003. Overall in the United States, motor vehicle theft fell by 1.9 percent from the previous year.

According to NICB Chief Executive Officer, Robert M. Bryant, while this slight decrease in theft is a positive sign, there is still work to be done. "Now, all of us in the fight against vehicle theft and insurance fraud must ensure that we continue the momentum and bring this national crime problem under control," said Bryant, president and chief executive officer of the NICB, an Illinois-headquartered organization that focuses on combating insurance fraud and vehicle theft.

NICB's latest report follows one it did earlier in 2005 on identifying the U.S. metropolitan areas with the highest auto-theft rates for 2004. California holds the dubious distinction of having seven of the 10 metropolitan areas with the highest auto-theft rates.

The NICB points out that the metropolitan area of Modesto, California, heads the list for the second straight year. The report is based on an analysis of statistics collected by the Federal Bureau of Investigation for 336 metropolitan areas in the U.S.

Metropolitan Areas with Highest Vehicle Theft Rates, 2004
(2003 placement in parenthesis)

1. Modesto, CA (1)
2. Stockton-Lodi, CA (3)
3. Las Vegas, NV (4)
4. Phoenix-Mesa, AZ (2)
5. Sacramento, CA (5)
6. Oakland, CA (7)
7. Visalia-Tulare-Porterville, CA (15)
8. San Diego, CA (9)
9. Fresno, CA (6)
10. Seattle-Bellevue-Everett, WA (11)

The Highway Loss Data Institute (HLDI) reports a disturbing trend, indicating that insurance claims for stolen cars are experiencing the biggest increase in port areas. The hardest hit locales include New York, Miami and in Southern California (San Diego and Los Angeles), confirms Kim Hazelbaker, senior vice president for HLDI in Arlington, Va.

Adds Hazelbaker: "The new Cadillac Escalade, Lincoln Navigator and other high-dollar SUVs are becoming a very popular theft target for organized car theft rings, because this has become an extremely lucrative business for them. They have the stolen cars loaded into containers for shipping on land and sea to Third World countries. In the post 9/11 era, cargo inspectors at the major ports tend to focus most of their energy on goods coming into the country, and maybe a bit less on what's going out."

Your Car Has Been Stolen? Insurance Companies Offer Advice

In the unfortunate event that your car gets stolen, there is sage insurance advice being offered by Carolyn Gorman, vice president of the Insurance Information Institute (III), a nonprofit insurance information organization in New York, and Sam Sorich, president of the Association of California Insurance Companies (ACIC).

Gorman calls on drivers to be prepared in the event their car gets stolen. She suggests that "you'll have already taken proper steps to ensure you have suitable insurance as well as having obtained the information you'll need to contact the police department for filing reports and for notifying your insurance company to begin the claims process."

"Many consumers who shop for the lowest auto insurance rates fail to consider some inexpensive options that can save them a lot of money down the road," reveals Gorman, citing replacement rental car coverage as an example, pointing out that it costs "only a couple dollars a month." Under normal circumstances, renting a car for one day "can cost more than a full-year of auto rental coverage."

She notes that most insurance companies wait an average of two to four weeks if the stolen car is not found before authorizing the purchase of a new car, so the victim could end up paying as much as $1,000 to rent a car during the interim if they don't have rental car replacement coverage.

Gorman urges auto insurance customers "to review their policies once a year to make sure they will cover your needs if your vehicle is stolen or damaged in a crash."

ACIC's Sam Sorich notes that "insurers play a vital role in combating vehicle thefts. Insurance companies have staffs that are dedicated to investigating theft claims." Sorich calls on drivers to support insurance company efforts by taking simple but effective steps, notably securing their vehicles. "Lock your cars, install anti-theft devices, and leave nothing in the car that might attract thieves such as purses or wallets."

Tips to Prevent Car Theft
Worried about the possibility of your car being stolen? If so, the National Insurance Crime Bureau urges you to follow a "layered approach" to auto theft protection by employing the following steps:

1. Common Sense:
   Deploy the cheapest, most basic form of defense … lock your car and take your keys.
2. Warning Device:
   Use a visible or audible warning device/alarm system that can help ensure that your car remains where you left it.
3. Immobilizing Device:
   Keep a would-be thief from staring or taking your car by using "kill" switches, fuel cut-offs, and smart keys. They are among the devices which are high and low tech, but extremely effective.
4. Tracking Device:
   Consider the higher end of high tech tracking devices. These are among the newer devices available, and they can alert both you and law enforcement the moment an unauthorized user moves your vehicle.

Hybrid Cars Capture the Fancy of Some Drivers

A Mercury Insurance Co. marketing representative waxes enthusiastic about her Honda Civic, which shouldn't come as a great shock because, after all, it is a popular model, but Debbie Perea's car is quite different than most you see on America's roadways. Perea proudly drives a hybrid, a car that uses a combination of gas and electric power.

"I love it," Perea says about her 2003 Honda Civic Hybrid. "It's a great little car, and it definitely saves me money on my daily commute to and from work. I drive 20 miles each way, five days a week, and I spend $20 a week on gas. I drop about $50 every time I fill the tank on my Sequoia (Toyota SUV)."

Hybrid tradeoffs
However, there are tradeoffs with hybrids. Perea says her Hybrid doesn't take off quick, say, when entering freeway traffic. "But it gets up to the speed of freeway traffic pretty quickly. I don't mind giving up a little bit on a car's pep when I'm saving as much as I am at the gas pump. Gas prices have been going up and up, and there's no end in sight. So, I think that I'm coming out ahead by driving a hybrid. I don't see that many hybrids around when I'm driving, but I'm sure there will be a lot more out there on the roadways very soon."

Hybrids and Auto Insurance Rates
In terms of car insurance, Perea says she's paying about the same price for comp/collision protection on her hybrid as she is on her 1998 Honda Civic.

Perea's boss, Bruce Norman, said, "obviously we insure at least a few hybrids, including my secretary's, but so far there are relatively few of her type of car out there on the road today. I know Debbie sure likes her car. The numbers out there could increase in time. We'll know more in a few years in terms of how they gain in popularity and their insurance claims experience, but it's a little early at this point to give any hard and fast underwriting or claims opinions," said Norman, senior vice president of marketing, at Mercury's corporate headquarters in Brea, Calif.

Kim Hazelbaker, senior vice president of the Insurance Institute for Highway Safety, in Arlington, Va., said only the Toyota Prius and Honda Civic hybrids have enough data for IIHS to rank them in terms of losses, and both came out in 2004. "Right now, we would have to say they're a little better than other vehicles of similar size and type. People are willing to pay extra for the hybrid, so they might be a different breed of driver than those who are buying a gas-driven Civic that is less expensive," Hazelbaker said.

"That means that you've got a very select group buying hybrids," added Hazelbaker. "They might be driving differently than the average person and driving them in different settings, at different times and in different areas. These people are into fuel economy and may be more safety conscious than owners of more conventional cars. They're not going to be burning rubber down the streets of their neighborhood and driving aggressively on freeways. Therefore, they would presumably be better insurance risks than those who drive aggressively on America's roadways."

"I definitely believe that high technology vehicles including hybrids will change the landscape of the insurance market," said John Eager, senior director of claims services at the Property Casualty Insurers Association of America, in Des Plaines, Ill. "We're expecting to see a diminished frequency of claims as high technology vehicles including hybrids continues to improve over time."

Eager cited another impact of hybrid vehicles and other technology. "I anticipate an increase in severity of physical damage claims. When a hybrid car gets into an accident or any car with high technology for that matter, you're going to have a greater chance of a total loss. The repair of hybrids is something that our organization and others in the industry are looking at."

A spokeswoman for the Insurance Information Institute offered no bold predictions on auto insurance premiums for hybrid owners. "It is just too early to tell what effect these hybrid vehicles will have on insurance premiums," says Carolyn Gorman. "If in the future, the loss history shows fewer claims, then premiums will be lower for these cars. If the opposite is true, then premiums would be higher."

Three Life Events That Can Greatly Affect Your Auto Insurance Rate

Getting married, becoming divorced or widowed, or embarking upon your golden years; all of these events can have a huge impact on our lives, but we bet you never thought that these changes could also influence your auto insurance rate. It`s true! And it just might have you reevaluating your auto insurance policy.

I Do
Getting married is a very exciting time in one`s life. It`s a new beginning, the merging of assets and the chance to receive a bigger discount on your auto insurance rate. That`s right: marriage can actually save you money!

Many insurance companies offer discounts for multiple cars. So by having all your automobiles under one policy, you can save money and cut down on multiple bills and policies you may have. During this time you may also want to shop around and compare the quotes and policies of other insurance companies. This will help you find the best rate and coverage for you and your new spouse.

Widowed or divorced
Being recently divorced or widowed is a very difficult and upsetting time in one`s life. Unfortunately, it is also a time when you need to reevaluate your auto insurance coverage. Depending on your situation, you may be the only full-time driver in your household, which means your rate may go up. Even worse, it may go up higher than you can afford.

However, there are things you can do to try and keep your costs down. For starters, shop around. Although your current insurance provider may have given you the best rate while you were married, that doesn`t always mean they will be able to do the same when you are single. Also, take a good look at your plan. What you once needed as a married couple may no longer apply as a single person.

With the loss of an extra income, your budget might also become tighter. If this is the case you might want to consider looking into raising your deductible or eliminating your comprehensive and collision coverage. Even though you may not want to, these changes could make a considerable difference in your auto insurance rate.

Retirement
Retirement is a perfect time to travel, spend time with loved ones and review your auto insurance coverage. Since you no longer need to drive to and from work each day, your annual mileage will more than likely drop, which can mean a nice rate decrease for you! Plus, you may also discover that you no longer need multiple cars and that one car suits you just fine. By downsizing to one car you will not only save on gas, but you will also help reduce your auto insurance rate.

Another way veteran drivers can save on auto insurance is by participating in AARP`s Mature Driving Course or AAA`s Mature Operator Program. Many insurance companies provide discounts to seasoned drivers who participate in these refresher courses. So it might be worth a try!

It never hurts to shop around
No matter what change you may be going through in life, it never hurts to do a little comparison-shopping. To help expedite your investigation, logon to Insurance.com`s auto comparison module. Here, you will be able to compare the rates of up to 12 insurance providers, helping you save time and money on your auto insurance

Hybrid Vehicle Ownership Costs

Thinking about purchasing a hybrid to save on gas? What if we told you that owning a hybrid could also decrease your auto insurance rate?

That`s right, starting February 2006; at least one of Insurance.com`s auto insurance partners will be offering hybrid car owners a 10% discount on auto insurance rates. According to preliminary research, hybrid owners tend to fall into a preferred insured category, associating hybrid owners as low risk drivers and therefore warranting lower premiums. Hybrid vehicle sales have at least doubled every year since the first car was offered in 1999. This trend shows no signs of slowing. Auto insurance providers are starting to reach out to serve this growing market group with innovative products to meet the changing needs of their customers.

In the past, hybrid ownership was confined to those attracted to new technologies and the environmentally conscious. However, with the aftermath of hurricane Katrina, where gas prices rose as high as three dollars a gallon, the number of hybrids on the roads has increased. Currently there are over 328,000 registered hybrid vehicles on the road, mostly residing in California, Virginia, Washington, Florida, Los Angeles, San Francisco, Washington, D.C. and New York. And who exactly is driving these money saving automobiles? The hybrid owner profile is married men and women ranging from the age of 41 to 60.

Hybrid tax breaks
In addition to saving money on gas and auto insurance rates, new owners will also benefit from a new federal tax break established for 2006. These tax breaks will come in the form of tax credits, ranging from $3,150 for buyers of the Toyota Prius to $250 for Chevrolet`s Silverado pickup truck, according the American Council for an Energy-Efficient Economy (ACEEE.)

To help you compare the savings of each hybrid model, the ACEEE has developed a chart displaying the make, model and estimated tax credit per car.

Current Models
Make	Model	Estimated Tax Credit
Ford	Escape Hybrid (2wd)	$2,600
Ford	Escape Hybrid (4wd)	$1,950
Honda	Accord Hybrid	$650
Honda	Civic Hybrid (auto)	$2,100
Honda	Civic Hybrid (manual)	$1.700
Honda	Insight (auto)	$2,600
Lexus	RX400h	$2,200
Mercury	Mariner Hybrid	$1,950
Toyota	Highlander Hybrid (2wd)	$2,600
Toyota	Highlander Hybrid (4wd)	$2,200
Toyota	Prius	$3,150

Upcoming Models (based on estimated specs)
Make	Model	Estimated Tax Credit
Chevrolet/GMC	Silverado/Sierra	$250
Lexus	GS450h	$1,300
Nissan	Altima	$1,300
Toyota	Camry	$1,300

*These tax credits are estimated. The exact hybrid tax credit amounts will be determined by the I.R.S.

This tax break won`t last forever. The new tax credit sets a limit of 60,000 hybrids per carmaker. After the manufacturer has hit this mark (based on the quantity of hybrid vehicles manufactured and delivered to dealerships, rather than hybrids actually sold), the credit will begin to phase out over a 15-month period, reducing the chance for those who buy late in the year to receive the same breaks as their fellow hybrid owners received in early 06.

And as always, there are some basic rules that must be met in order to qualify for this money saving tax credit:

• Purchase and take delivery of a qualifying vehicle on or after Jan. 1, 2006.
• Purchase the vehicle new, not used.
• Purchase the vehicle with the intention of using it, not re-selling it.

So do all these incentives and discounts really make a difference to prospective car shoppers? You bet! Hybrid dealerships are happily reporting long waiting lists and fast sales. According to one Honda salesman in Gardena, California, "If the car is available, they get it as soon as possible. " Sounds like you have to be lucky to get your hands on one of these money saving machines! If you do, Insurance.com`s auto quote comparison tool can help you leverage new hybrid discounts as they become available by comparing auto insurance rates from up to 12 insurance provider partners.

Tips For Buying a Car

Buying a new car is an exciting experience, though it can be complicated. There`s a lot of choice out there, and it can be intimidating. You want to make sure you`re getting the best deal, and that you end up with the car that`s right for you.

Here are a few ideas and thoughts that might help.

General Trends
Today, fuel efficiency is a major concern. Manufacturers have taken the high gas prices to heart, and are producing models that promise better mileage. Indeed, gas-electric hybrid cars are in high demand, and some auto insurance companies are offering enticing discounts for hybrid cars.

Before You Buy
Think about your needs. Got a big family? Check out the safest vehicles best suited for your clan. Do a lot of driving? You`ll probably want a car that`s comfortable to drive, balanced with reliability and good gas mileage. Think about what you`ll be using your vehicle for, and shop accordingly.

Do some research before you even leave the house. Check the internet for information on safety and reliability on various models. You might have your heart set on a particular manufacturer, but don`t let that distract you from the facts and figures that determine how good their cars really are (or aren`t).

Check your current car`s Blue Book value before you go shopping - you may be surprised to find out that dealers consider your car to be worth much less when it comes to trading it in. Be aware of its true value, and you could save money.

More and more vehicles are coming with technology packages that include GPS systems, satellite radios and more. These can be very tempting, but quite expensive. Many of these features will require monthly fees, so keep that in mind. However, having systems integrated into your vehicle right from the factory is certainly easier than adding them later.

What can you really afford to pay each month for your car? Always have your budget in mind, and consider that your monthly expenses for your car should include gas, maintenance and insurance. Stretching your bank account an extra fifty dollars a month for a nicer model may cost you even more if the gas mileage is worse, while a more reliable car could end up saving you money.

When You`re Shopping
Not only is comparison shopping a great way to find the best auto insurance rates, it could save you thousands of dollars when looking for a car. Compare car prices at different dealerships, or online at various sites (including the manufacturers` own website), and you might be very surprised at the difference.

Consider arranging financing for your car before you visit the dealership. Talk to your bank, or credit union. You might be able to get a better interest rate from a different source, or at least have more control over your repayment schedule. In order to do this, you`ll need to have a very good idea of the car you want and how much it will cost. Bear in mind to include money for any optimal packages you wish to include in the vehicle.

Know what you want - be aware that some sales people will try to steer you to the cars they want to sell. If you end up with a better deal, or different car, and that's alright for you, then good. But don't be strong-armed into a vehicle you don't want. For instance, if you want to buy a SUV, don't be talked into buying a truck.

When taking a car out for a test drive, some dealers might ask to get a photocopy of your license before you go. You may want to consider not doing this. Instead, request that one of their staff accompany you on the test drive, and hang on to your license. Some dealers might take the opportunity to run a credit report on you while you are gone using the information on your license which could this negatively impact your credit score.

If you don't like how you're being treated, or if you have any doubts at all about the salesperson or dealership, just leave. You'll quickly find the dealer that's right for you, and soon after, you'll be driving the car that's right for you, too.

Auto Insurance: The Protection You Need

On average, a motor vehicle crash occurs every 5 seconds, a person is injured in an accident every 11 seconds, and a fatal injury occurs every 12 minutes. Those are scary thoughts as you head out the door to school, work or to the store and convincing evidence of why auto insurance coverage is so necessary.

However, you can rest a little easier knowing that the crash fatality rate per 100 million vehicle miles traveled is the lowest it has been since record keeping began 30 years ago, registering at 1.46, and remained below 1.50 for the second consecutive year in a row. According to the National Highway Traffic Safety Administration's (NHTSA) 2004 Early Edition Report, the number of police-reported motor vehicle crashes occurring on the highways dropped to under 6.2 million from more than 6.3 million in 2003, and persons injured in these crashes continues to steadily decline as well.

This reduction is due in part to the national campaigns aimed at increasing safety belt use and reducing impaired driving. Currently the seat belt law is mandated in all 50 states, which greatly helped reduce the number of persons killed in auto accidents in 2004. The countrywide campaign for drinking under the influence has also greatly helped reduce alcohol-related fatalities for the second consecutive year in a row.

Time plays a big part.
Even with all these new preventive measures, accidents are still happening. This is why the focus has turned to on which days and at what time accidents are occurring. According to the NHTSA, Saturday and Sundays nights between Midnight and 3 a.m. are the deadliest 3-hours on the road, with a total of 2,451 fatal crashes in 2004, seventy-six percent of these accidents involved alcohol.

So you now know what time of day to try and avoid, but do you know that time of year? The Early Edition Report indicates that August topped the charts with the most fatal crashes in one month and December had the most overall automobile accidents, totaling 601,000- something to keep in mind during your vacation and holiday travels!

Your car can affect your car accident.
The vehicle you drive can also play a large role in your car accident. Passenger cars and light trucks accounted for nearly 95 percent of the 11 million vehicles involved in motor vehicle crashes in 2004. Large trucks only accounted for 15 percent of the vehicle accidents. In addition, we saw an increase in vehicles rolling over during an accident. Of the vehicles that rolled over, utility vehicles presented the highest rate at 36.2 percent in fatal crashes, 9.6 percent in injury crashes and 2.4 in property-damage-only-crashes. Regardless of the crash severity, the majority of these accidents occurred during daylight, in normal weather conditions, while the vehicle was going straight.

Protect yourself with auto insurance.
Accidents do happen, but you can follow some simple safety measures while driving. These include wearing your seat belt at all times, obeying the speed limit, being cautious of your surroundings and having auto insurance. By having auto insurance, you are able to protect yourself, your family, passengers and other drivers from incurring additional heartache and financial burden.

If you are in the market for auto insurance or would like to make sure you are receiving the best package for the price, logon to the Insurance.com's auto quote comparison tool . There, you'll be able to compare car insurance rates from up to 12 insurance providers, helping you evaluate various auto insurance premiums while helping you find the best package for your overall needs.

The DUI Scarlet Letter and the impact it has on your auto insurance policy.

Is Florida going pink? If Senator Mike Fasano, of New Port Richey, Florida gets his way many Florida residents just might be. Late last year, Senator Fasano filed a bill that would require DUI offenders to drive with bright pink licenses plates bearing the letters DUI. "Maybe it will embarrass people and keep them from drinking and driving," Fasano said. "Maybe they`ll think twice." The proposed bill also has a provision that allows police officers to pull over and check on the driver at any time, without probable cause. If passed, Florida will join Ohio, Iowa and Minnesota, all with similar laws in place.

Currently, Ohio has one of the strictest DUI laws in the country. Ohio DUI offenders are issued yellow plates with crimson numbers. These plates are issued at a judge`s discretion to people with more than one DUI conviction and restricted driving privileges. Many feel this punishment is a reflection of the Nathaniel Hawthorne`s 1850 novel "The Scarlet Letter," which is about a woman ordered to wear the letter "A" as punishment for adultery. In Iowa, DUI offenders` plates contain the letter "Z", Minnesota`s plates bear a unique series of numbers and in Oregon, drunk drivers are required to display a sticker on their licenses plates.

And how well does this law really work? Only a few studies on effectiveness have been conducted to date but one Oregon study showed that offenders in Oregon who had their vehicle plates tagged had lower rates of DUI offenses, moving violations, and repeat DWS offenses than similarly eligible offenders whose vehicle plates were not tagged.

Drunk driving and auto insurance
States are not the only ones cracking down on drunk driving - auto insurance companies are too!

Even though states forbid insurance companies to deny coverage to policyholders because of race, religion, residence, age or occupation, they can cancel your policy for reasons such as:

• Having your driver`s license suspended
• Having too many traffic violations
• Being convicted of a felony, criminal negligence or drunk driving - DUI

Insurance companies generally deal with convicted DUI customers by issuing higher rates or through cancellation or non-renewal of policy.

If your insurance company chooses to raises your rates, you will more than likely be labeled as a high-risk driver. In this case, you`ll likely have to file proof of insurance for three, or sometimes five, years with your state`s department of motor vehicles. In addition, to remove your license suspension, your insurance company will be required to provide the DMV with an SR-22 form, which notifies the state of your proof of insurance. An SR-22 also means your insurance company is required to notify the DMV if it cancels your insurance for any reason.

Most states require convicted drunk drivers to get an SR-22 from their insurance agency, so in most instances you can`t avoid your insurance company finding out. This notice can also trigger your insurance company to cancel your policy mid-term or terminate your policy at the end of the term. However, your insurance company is required to send you a letter stating why you`ve been canceled. Then it is up to you to try and find another insurer while having a cancellation on your claim history.

In other instances, some insurance companies don`t offer SR-22 policies, so you may find that your policy is not renewed, or even canceled.

Also keep in mind that your insurance company has up to three years to cancel your policy or raise your rates because of a DUI.