Does Your Occupation Affect Your Auto Insurance Rate?

Think your occupation does not affect your auto insurance rate - think again! In Insurance.com's 2006 Occupation Report, results show that your occupation can greatly impact your car insurance premium.

Compiled from data from their partnering auto insurance companies, Insurance.com's report shows that scientists, pilots/navigators and actors/performers/artists pay the lowest insurance rates at an average of $935.76 per year. Attorneys/lawyers/judges, executives and business owners pay the highest insurance rates at an average of $1,383.63 per year.

Why such a big difference between occupations? According to David Roush, CEO of Insurance.com, attorneys/lawyers/judges, executives and business owners have highly stressful jobs, which require them to spend more time in their cars and talk more frequently on their cell phones than the average driver. "Taking all of these factors into account, you can see why some occupations are coined as "high-risk" and typically pay more for auto insurance then others," stated Roush.

As for scientists, pilots/navigators and actors/performers/artists, Roush says that there are a number of reasons why these occupations pay less for auto insurance. For one, scientists are viewed as being very meticulous and detailed-oriented people, which translates to good driving habits on the road. This outstanding attention to detail typically means scientists are safer drivers, resulting in lower auto insurance premiums.

The same goes for pilots and navigators whose jobs require them to be focused on the safety and wellbeing of others - skills that are often transferred over to their driving habits as well. "Pilots and navigators are often very safe drivers because their driving record not only impacts their personal life, but also their professional life," noted Roush. "If a pilot or navigator was to get into an accident or receive a DUI, their career opportunities would be restricted or even worse, eliminated."

Actors, performers and artists are also at the lower end of insurance premiums because their jobs require them to work in the city, where they are more apt to commute via train or bus to work, versus driving - limiting their time in the car and reducing their chance of getting into a car accident.

However, receiving discounts on auto insurance is not a new concept. For years, insurance companies have been giving discounts to members of "affinity groups," such as AARP, AAA, alumni groups and other associations. These discounts are just now being extended to certain occupations as well, noted Roush.

Wonder if your occupation can save you money on your auto insurance? To find out, simply logon 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 auto insurance rate and best professional discount for your budget.

To see where your occupation falls in the Insurance.com's 2006 Occupation Report, see the table below:

Rank (lowest to highest)	Occupation	Average Premium
1	Scientist	$870.20
2	Retired	$917.63
3	Currently not working	$934.10
4	Pilot/Navigator	$965.94
5	Disabled	$968.14
6	Actor/Performer/Artist	$971.10
7	Librarian/Historian	$1,008.86
8	Farmer	$1,015.62
9	Student	$1,028.96
10	Public Official	$1,068.83
11	Design Services	$1,070.87
12	Waiter/Bartender/Host	$1,071.25
13	Engineer	$1,087.56
14	Athlete	$1,088.29
15	Homemaker	$1,091.73
16	Instructor/Coach/TA	$1,098.86
17	Breeder/Groomer/Trainer	$1,102.83
18	Clerk/Cashier	$1,105.93
19	Computer/Math/Research	$1,110.15
20	Chef/Baker	$1,114.89
21	Teacher/Dean/Educ Degree	$1,121.15
22	Machine Operator	$1,126.34
23	Architect	$1,130.71
24	Machinist/Toolmaker	$1,131.33
25	Marketing/Advertising	$1,135.33
26	Cleaning/Janitorial	$1,136.02
27	Mechanic	$1,138.33
28	Repair/Maintenance	$1,142.89
29	Null	$1,146.46
30	Military Officer	$1,147.96
31	Tradesman/Manufacturer	$1,150.80
32	Customer Service	$1,151.92
33	Other - Prof w/Coll Degree	$1,156.33
34	Construction/Skilled Worker	$1,159.93
35	Technician	$1,160.09
36	Other - No College Degree	$1,181.74
37	Bank/Clerical/Office Staff	$1,190.75
38	Nanny/Caretaker	$1,193.97
39	Military E5+	$1,196.27
40	Admin. Asst./Secretary	$1,209.26
41	Clergy	$1,209.72
42	Driver	$1,209.94
43	Health Care Worker	$1,212.75
44	Finance/Ins Prof w/Degree	$1,213.17
45	Barber/Beautician	$1,214.47
46	Sales/Real Estate	$1,215.04
47	Government GS1-GS5	$1,215.50
48	Self Employed	$1,217.59
49	Professional Worker	$1,219.49
50	Security/Prison Worker	$1,227.74
51	Administrator	$1,229.80
52	Supervisor/Asst. Manager	$1,231.67
53	Manager/Director	$1,240.14
54	Government GS6 or higher	$1,262.45
55	Police/Fire - other	$1,264.62
56	Medical Doctor/Dentist	$1,277.63
57	Military E1 to E4	$1,294.69
58	CPA/Comptroller	$1,301.36
59	Police/Fire - Lt/Cptn/Chief	$1,314.88
60	Nurse	$1,316.40
61	Attorney/Lawyer/Judge	$1,370.39
62	Executive	$1,375.38
63	Business Owner	$1,405.11

SUV Owners Pay More for Insurance

Hortencia Privett is like thousands of other owners of Sports Utility Vehicles (SUVs). Privett admits that she loves what she drives, a silver 2002 Jeep Liberty, but insurance experts caution that she and other SUV owners have to pay considerably more for insurance than those tooling around town in smaller cars.

The cost to insure an SUV is generally 10 to 20 percent more than a car, depending of course on a driver's location, claims experience, credit history and other factors, confirms Loretta L. Worters, vice president of communications for the Insurance Information Institute, in New York. "Yes auto rates for SUVs are generally higher than for automobiles," says Worters. "Rates of course correlate to risk -- and there are a lot of risk factors with SUVs. Not so much what affects them, but what they do to other vehicles."

Cutting to specifics, Worters pointed out that an SUV's "potential for liability and medical payments coverage losses is a real concern to the industry. Pedestrians hit by SUVs have a 300 percent higher risk of serious injury than if they were struck by a passenger car. There's also greater injury in cars that are hit by SUVs than it would be with another car."

Privett acknowledges that she has to pay more for coverage, but that's okay with her under the circumstances. "I feel safer in my SUV," explains Privett, an office secretary in Illinois. "I've had an SUV for three years, and I wouldn't go back. Even though I have to pay more for insurance, it's worth the added cost to me."

Privett's SUV sentiments are hardly unique. It's been reported that SUVs accounted for upwards of 24 percent of all new-vehicle sales in the United States for 2003 and, with well over 20 million on the road today, SUVs represent almost 12 percent of all registered vehicles in the U.S.

The safety reputation of an SUV or other vehicle type certainly has a bearing on insurance costs. On the subject of SUV safety, a spokesman for the Insurance Institute for Highway Safety (IIHS) brings up what he considers to be a misconception about SUVs.

"The misconception is that many people think that SUVs are safer than cars, and they're not," says IIHS's Russ Rader. "Vehicle crash statistics that we compile each year show that pound for pound, if you're comparing vehicles of a similar weight, SUVs tend to be less safe than cars."

Rader says that cost of repair is a big issue from an insurance standpoint. "SUVs can be costly to repair in minor crashes, because they don't have to meet the federal government's standards set for bumpers on cars in terms of withstanding crashes in commuter traffic or parking lots," explains Rader.

Says Rader: "Most SUVs aren't built like cars and don't drive like them. Yes, they're higher and you can see the road ahead better, but that height also gives them a higher center of gravity, which makes them less balanced than sedans -- and more likely to flip."

Insurance trade organization officer Dan Kummer focuses on high liability claims costs involving large SUVs in vehicular accidents. "If you have a large SUV and you hit a mid-sized or smaller vehicle, you are likely to pay higher liability costs when your policy comes up for renewal," says Kummer, director of personal lines for the Property Casualty Insurers Association of America, in Des Plaines, Ill.

Profile of a bad driver: Are you one?

Surely you've seen them on the road: They're swerving in and out of lanes, ignoring rules of the road, and engaging in other rude — and dangerous — behavior. Or maybe you are that bad driver?

A focus group of 30 drivers from Boston who have collectively been involved in 84 accidents over the past three years, and have received 49 speeding tickets, 39 moving violations, and 92 parking tickets, indicates there are some common characteristics to bad drivers. Take a look at these questions to find out if you fit the profile.

1. When you reach a stop sign and no one is coming from another direction, do you roll through instead of stopping?

An overwhelming majority (87 percent) of the bad drivers say they should be able to speed, go through stop signs, and break other driving rules and regulations as long as no one gets hurt.

2. Do you talk on the cell phone while driving instead of pulling off and stopping to talk?

A total of 77 percent of bad drivers say they do this either frequently or occasionally. Only 13 percent say they never talk on a cell phone while driving.

3. Do you take your coffee and muffin or other food and drink on the road with you, driving with one hand while using the other to eat?

Sixty percent of those in the study say they either frequently or occasionally eat while they're driving. In fact, several of the participants say they have spilled drinks and attempted to clean up the spill while driving.

4. If you're out shopping in a crowded area and are looking for a parking space, do you get so focused on your search that you lose sight of the cars and pedestrians around you?

More than half of the participants say that when they're trying to find a parking space in a crowded area, they can become so focused that they become oblivious to other drivers and pedestrians and often get into accidents, whether on the street or in a parking lot.

5. Do you hate driving behind SUVs or other large vehicles that obstruct your view?

More than 60 percent of bad drivers say they are frustrated driving behind SUVs because they are wide and tall and block their vision. In fact, more than 70 percent believe SUVs should be required to drive in a separate lane on the highway.

6. Does your driving change when you go into areas with higher police presence?

Nearly all of the participants strongly agree with the statement that they drive more carefully when they know police are in the area. In addition, most participants say they check their rearview mirrors regularly for police cars.

7. Does listening to music while you drive sometimes leave you oblivious to all but the music?

Ninety-three percent of participants say they listen to the radio while driving, and 73 percent of them listen to music. Most say listening to the radio has often caused them to become distracted and in some cases they say listening to loud music has caused them to be more aggressive on the highway.

8. Do you find yourself in confrontations on the road, either through verbal arguments or hand gestures, because of either your own driving habits or the habits of others?

While 87 percent of the bad drivers consider themselves at least somewhat courteous drivers if not very courteous, at least half also admit to making obscene or rude gestures or comments to other drivers, particularly those who cut in front of them on the highway. Participants also say, however, that they appreciate a thank-you gesture for letting another driver into their lane, and often give a wave of thanks themselves when they cut into traffic.

9. Does your "work hard, play hard" lifestyle leave you sleepy behind the wheel at times?

Fifty percent of those in the study say they have almost fallen asleep while driving and an additional 10 percent say they have wanted to shut their eyes while driving and almost did. The study found that most participants lead a busy lifestyle that sometimes leaves them sleep-deprived.

10. When you're driving with passengers, do you turn around to talk, taking your eyes and mind off the road?

Nearly all group members acknowledged that they are distracted when they have passengers in their vehicles, and most say during conversations they'll turn their heads and stop paying attention to the road. This held true especially for drivers with small children.

If your answers agree with the answers from the focus group, it's likely you tend to be a more aggressive driver than average. Like members of the study, you may also pay more for your auto insurance. Within the study group, 53 percent pay a surcharge on their auto insurance because of their driving records.

These bad drivers have other characteristics that you may recognize in your own life. Most say they lead very stressful lives without enough time to accomplish all their activities in a day. They all consider themselves either somewhat or very outgoing and all have a fair to great amount of confidence in the way they behave. And 90 percent say they've told a "little white lie" to protect someone's feelings.

The group was broken down into three age groups, from 18 to 25 years old, 26 to 45 years old, and 46 to 59 years old. There were 19 men and 11 women in the study, commissioned by RightFind Technology, a company developing new products to help insurers make better decisions on auto insurance premium rates for specific drivers.

While the study is based on a small group and should be considered a hypotheses rather than a conclusion, "our study identified several personality attributes that seem clearly linked to accident involvement,” says Donald Bashline, one of the owners of RightFind. "Witnessing these focus groups was a revelation."

Courtesy of Insure.com

Insuring a Teen Driver in Single-Parent Home

If your teen is away at school, living part-time with an ex-spouse, or spending a significant amount of time away from your single-parent home, you may be wondering if you are still required to keep them on your car insurance policy. Insuring a teenage driver can be an expensive endeavor, but depending on the circumstance and practices of your car insurance company, you may not be required to keep them on your auto insurance policy.

Divorced parents
The first thing single parents should do when deciding on which policy to claim their teen driver on, is to check the language in their car insurance policy or contact their auto insurance company for details. Some car insurance companies suggest that the parent who has custody of the teen while they are in school is responsible for having that teen driver on their auto insurance policy, while others say it is the parent who has custody of the child more than the other.

In some instances, if both parents have the same auto insurance company, the child will automatically be covered on both policies. The reason behind this is that some companies define "an insured" as "a person related to you by blood, marriage or adoption who is a resident of your household."

Honesty is the best policy
If you don't list your teen driver on your car insurance policy, you are risking more than you may know. For instance, if you neglect to list your teen driver during your application process or failed to add your teenager once they have received their driver's license; your auto insurance company could cancel your auto insurance policy for misrepresentation. Worse yet, if your teenager is involved in an accident or traffic violation and you don't have them on your auto insurance policy, you could risk having your car insurance policy become nonrenewable.

However, all auto insurance companies handle insuring teen drivers and single-parent homes differently. Some companies require that all drivers be named on both parents' car insurance policies, regardless of how much time they spend between households.

Worst case scenario
If your state permits auto insurance companies to void policies for misrepresentation, and your teen is in an accident and you file a claim, YOUR policy could be voided because you failed to tell them about your teen driver. So play it safe and contact your car insurance agent or company immediately once your teen has received his or her driver's license.

High risk teen drivers
Recently, The National Highway Safety Administration released the statistic below showing just how much of a risk teen drivers are to themselves and to others on the road.

• In 2004, 5,896 teenage drivers were killed in traffic accidents. Teens accounted for 28% of all the drivers involved in motor vehicle fatalities

Teen drivers pose a higher risk of accidents than other groups of drivers, which is why the car insurance rates for this age group are so high. "On average, parents can expect to see a 50-100% increase in their car insurance rates once their teen has been added to their auto insurance policy," stated David Roush, CEO of Insurance.com. "However, many companies do offer parents discounts to help reduce the cost of insuring their teenager, such as 'Good Student Discounts' which are available to teen drivers who have a grade point average of 3.0 or above.

California's Low Cost Auto Insurance Program

In an effort to make sure everyone has and can afford car insurance, law officials in California have launched a new Low Cost Auto Insurance program for low income residents. This program will help eliminate the amount of uninsured drivers on the road, while reducing the financial burden many auto insurance companies and insured drivers have been feeling due to the large amount of uninsured motorists on the road.

"By law, California residents are required to carry a minimum of $15,000 per person for bodily injury liability coverage, $30,000 per incident and $5,000 for property damage. Reasonable insurance limits, but ones that are often accompanied with higher auto insurance rates - causing a financial strain upon many residents that do not have the means to pay for auto insurance," stated David Roush, CEO of Insurance.com. "By rolling out this plan, California is helping to make auto insurance affordable and obtainable for all drivers, no matter what their income level is." Currently, California's new Low Cost Auto Insurance program offers a slimmed down version of their current plan, allowing qualified drivers to carry $10,000 per person for bodily injury liability coverage, $20,000 per incident and $3,000 for property damage.

Who is eligible for this plan?
In order to qualify for this reduced cost car insurance plan, the resident must be a driver in good standing, reside in one of the approved counties, their household's gross annual income must be 250% or less than the federal poverty level and the value of their automobile cannot exceed $20,000. To view a detailed listing of the federal poverty income levels and the qualifying income levels visit the AIPSO's website.

What exactly is a driver in "good standing"?
In order to qualify as a "good standing driver", motorists must meet the following criteria:

• Be at least 19 years old and have been driving for at least three consecutive years
• Have no vehicle code felony or misdemeanor convictions on their driving record
• Have no record of a fault accident involving bodily injury or death in the past three years
• Have no more than one property-damage-only insurance claim in which they were at fault or one point for a moving violation within the last three years
• Is not a college student claimed as a dependent for federal or state income tax purposes
• Cannot have an in-force liability insurance policy for another vehicle
• Must demonstrate they have been continuously licensed for 18 months in the U.S. or Canada, if previously licensed in another country

Eligible counties
In order to take advantage of California's car insurance program, qualifying residents must reside in the following counties:

Alameda
Fresno
Los Angeles
Orange
Riverside
San Bernardino
San Francisco
San Diego

Cost
The cost of the program varies from driver to driver depending on where they live and if the driver elects to add Medical Payments Coverage and Uninsured Motorist Bodily Injury coverage to their policy. To get a rough estimate of how much you would have to pay under this new plan, see the AIPSO's chart below.

RATE PER VEHICLE - ANNUAL PREMIUM
	Liability	Medical (optional)	Uninsured Motorist BI (optional)
Alameda County	$322.00	$18.00	$32.00
Contra Costa County	$317.00	$17.00	$28.00
Fresno County	$299.00	$34.00	$51.00
Imperial County	$210.00	$18.00	$32.00
Kern County	$239.00	$19.00	$30.00
Los Angeles County	$355.00	$29.00	$65.00
Orange County	$312.00	$24.00	$37.00
Riverside County	$246.00	$14.00	$32.00
Sacramento County	$383.00	$23.00	$49.00
San Bernardino County	$283.00	$18.00	$40.00
San Diego County	$268.00	$15.00	$26.00
San Francisco County	$322.00	$26.00	$39.00
San Joaquin County	$295.00	$23.00	$35.00
San Mateo County	$307.00	$17.00	$25.00
Santa Clara County	$290.00	$14.00	$24.00
Stanislaus County	$359.00	$35.00	$44.00

In addition to these rates posted above, there is also a 25 percent surcharge for unmarried males between the ages of 19 and 24, due to the fact that this age group statistically has the most accidents of any other group.

How to register
If you are interested in signing up for this low cost auto insurance program and you live in one of the qualifying counties, contact the California Auto Assigned Risk Program at 1-800-622-0954.

If you are not eligible for California's auto insurance program, but would like to see how you can lower your auto insurance rate, visit 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 auto insurance rate for your limited budget

Defining No-Fault Insurance

In most states, auto insurance functions under a traditional fault-based system. Under this system, insurance companies make payments based on each person's degree of fault in an accident. However, long and costly court battles may be required to determine who was at fault in many accidents. In an attempt to reduce this problem, thirteen states (CO, FL, HI, KS, KY, MA, MI, MN, NJ, NY, ND, PA, and UT) have adopted an alternative no-fault system of insurance.

Under a no-fault system, when you have an accident, your auto insurance provider automatically pays for your damages (regardless of fault) up to a specified limit. In exchange for this guaranteed payment, you must forego some of your rights to sue the other driver involved in the accident. By the same token, you are also protected from being sued in the event you are at fault in an accident. There are elements of no-fault in all auto insurance coverage. For example, medical payments and property damage are typically paid regardless of fault.

Under a pure no-fault system, your auto insurance provider pays for any economic damages (such as medical bills, lost wages, etc.) up to the policy limit, and you are completely prohibited from suing a negligent driver for "non-economic" damages (such as pain and suffering, loss of companionship, etc.).

At the present time, no states function under a pure no-fault system. Instead, all thirteen no-fault states have adopted a modified no-fault system. This means that your insurer still pays for your economic damages up to the policy limit, but you may be allowed to sue for non-economic damages if the amount of these damages exceeds a specified threshol

When Should You Get Car Insurance For Your Teen?

Don`t dawdle about getting auto insurance for your teenager. When should you buy car insurance for your son or daughter who is old enough to drive? The sooner, the better, answers Nicole Mahrt of the American Insurance Association and the Hartford`s Jane Fernald.

"As soon as he or she gets a license, add your child to your policy," contends Nicole Mahrt, western region public affairs director for the American Insurance Association. "It`s important to make sure your children have auto insurance, because statistics show that teenage drivers are more prone to accidents than those in most other age groups."

"As soon as he or she starts to drive," answers Jane Fernald, assistant vice president of underwriting operations at The Hartford. Fernald advises parents to notify their insurance provider as soon as their teen receives his or her learner`s permit and again when a valid driver`s license has been issued. In most states, continued Fernald, "a driver with a learner`s permit is afforded coverage under the automobile policy of parents or guardians and (coverage) extends to the registered vehicle that the learner is driving."

American Insurance Association`s Dave Snyder says that he has had both of his children under his policy for several years, including the time while they were attending colleges away from home. "We have them listed as insured (aka occasional drivers)," says Snyder, AIA vice president and assistant general counsel, in Washington, D.C. "If you cover them under your policy, they`ll probably have more coverage than they could afford if they had to buy their own policies on their own."

Carolyn Gorman of the Insurance Information Institute says her organization offers various tips on car insurance protection for your teenage son or daughter. Here are four key ones for your consideration.

• Add your teenager to your auto insurance policy. Doing that would cost less than having your child purchase his or her own policy. You could qualify for a multi-policy discount if your child`s own car is covered by your auto insurance company.
• See if your auto insurer will give you a discount for the period in which your child is living away at school. That assumes that your teenager is attending a college that is at least 100 miles from home and leaves the vehicle at home.
• Encourage your child to earn good grades and take a driver training course. Most insurers will provide discounts if your child is at least all "B`s" in school and for completing recognized driving courses.
• Serve as a good role model. Remember, your children learn by example. Your teenage driver may mirror you actions behind the wheel, so be sure you demonstrate good driving habits at all times. That means using your seat belt, not drinking and driving, and avoiding distractions such as fiddling with the car radio.

For more information, on teen driving, log on to the web sites of the Insurance Institute for Highway Safety and the Department of Transportation.

Taking the Top Off the Price of Convertibles

In The Graduate, Dustin Hoffman’s manic ride to rescue his true love from the altar is one of the iconic images of American cinema — it takes place in a convertible. Thelma and Louise make their run for freedom in a convertible. Nick Nolte’s renegade cop of 48 Hours drives an old Cadillac with the top always down.

The message is clear: if you want cool, racy, stylish, and a bit outlaw, you don’t do it in a motorized cocoon — you do it in a ragtop. Convertibles are just more fun to drive. But they’re also more expensive.

First, are they safe?
Many think that it is due to safety concerns that convertibles are more expensive to insure. While it is true that convertibles generally do carry higher insurance premiums, it’s not for safety reasons. The conventional wisdom is that with the new safety standards, convertibles are nearly as safe as hardtops. Though they are inherently less stiff than hardtops, they are reinforced to compensate. New devices, from pillars that pop up in a rollover to side-curtain airbags will allow your parents to get a good night’s sleep. Even the Car Talk guys, known for being fanatical in their devotion to safety issues, claim that the convertibles are “pretty darn safe.”

The initial price tag
But there are other factors besides safety. For starters, that top is going to mean a lighter wallet. The Audi TT convertible, for example, is $2,000-$3,000 more expensive than the coupe. The Corvette convertible is a staggering $7,000 more expensive than the coupe (but who gets a convertible for practical reasons?)

Why convertibles are more expensive to insure
And the costs will continue afterwards. A Ford Mustang convertible will cost about $200 more per year to insure than the hardtop. Part of this is due to theft: many models of convertibles are among the most stolen of all cars. The Chevrolet Corvette convertible had the second-highest loss payment rate of all cars. Additionally, soft tops are generally not found on econocars, but on high-performance and sports cars, which naturally carry higher insurance rates.

But then again, why be practical?
Like many of life’s pleasures, if you have to have it, practical concerns will take a back seat to desire. An extra $200 in insurance probably won’t kill you if you can already afford a convertible. And on those summer days when the weather is perfect, you’ll be getting a tan while the drivers of hardtops will be turning green.

10 most affordable convertibles*

1. Volkswagen New Beetle, $21,025
2. Mazda Miata, $22,363
3. Ford Mustang Convertible, $24,020
4. Mitsubishi Eclipse Spyder, $24,372
5. Chrysler Sebring Convertible, $24,670
6. Toyota Camry Solara Convertible, $24,980
7. Toyota MR2 Spyder, $25,055
8. Honda S2000, $33,060
9. BMW Z4, $33,795
10. Audi TT Roadster, $35,160

*2003 Models

Understanding Your Options for a Totaled Car

An auto insurance company's decision to declare a car a total loss is based on two factors:

• 1.) The value of the car
• 2.) The amount it would cost to repair the covered damage

Basically, if the cost of repairs exceeds the car's value, the insurance company will declare your car totaled and give you a cash settlement rather than pay for the repairs. So a relatively minor accident could be enough to total an older or inexpensive car, while a very serious accident may not cause a more expensive model to be totaled.

What can I expect to get for my totaled car?

When your car is totaled, the insurance company has an obligation to "make you whole," as that is defined in the policy. This essentially means you have to be left in approximately the same financial position you were in before the accident. To accomplish this, the insurance company will typically write you a check for the actual cash value of the vehicle, minus any deductible on your policy. After the settlement is paid, the damaged car goes to a salvage yard, where it is typically auctioned to the highest bidder and used for parts. The insurance company keeps the proceeds of this sale.

What if I want to keep my car?

If you want to keep your damaged vehicle, some insurance companies will forgo the auction process and turn the car over to you (usually in cases where the car is over 10 years old). They will still have to pay you the actual cash value of the car, minus any amount the car would have brought at auction. At that point, it is up to you to pay for the necessary repairs. If your insurer allows you to do this, you will have to inform your insurer right away if you want your car back. Once it goes to the salvage yard, you'll have little chance of getting it back, since only licensed auto salvagers are normally allowed to attend these auctions.

Even if your insurer allows you to keep the car, it may not be worth the time and expense to get it back on the road if your state has a number of special requirements you must satisfy (e.g., buying a salvage title or having the car inspected by the state police after it's been repaired).

Remember, the check you receive from your insurer is for the actual cash value of the vehicle, which may not match the cost of a similar car in the real world. If you think the settlement amount your insurer offers you is too low, but you don't want to go to the trouble of having the damaged vehicle repaired, you may be able to negotiate a higher settlement. To do this, you'll need to bring in an independent appraiser (probably at your own expense). If this appraisal is significantly more than the insurer's internal appraisal, the insurer may agree to increase your settlement.

Car Insurance For Young Adults

Typically, young adults are going to pay more for their car insurance than anyone else under age 70, because they are considered the riskiest on the road. However, young adults can lower their auto insurance rate by taking a defensive driver course, raising their comprehensive and collision coverage deductibles, commuting through public transportation, buying a home or renters policy through the same car insurance company, or buying a safer car.

Ways to Save on Your Car Insurance
One way to save money on your auto insurance is to purchase a vehicle with front and side airbags, antilock breaks, automatic seatbelts and daytime running lights. Many auto insurance companies give discounts for these safety features, not to mention cars with these features are generally cheaper to insure! Another way to save a few bucks is to join an auto club, such as American Automobile Association (AAA), or taking advantage of discounts through your employer.

In the event you own an older vehicle, it may be a good idea to drop the collision and comprehensive coverages from your car insurance policy, because both coverages require you to pay a deductible in the event you file a claim, and in some cases, that may be more than your car is worth.

If you were recently married or are about to be married, you will notice a considerable drop in your auto insurance rates. That’s because insurance companies view married couples as more “stable” and less of a risk. Also, when you turn 25, you can expect to see a decrease in your auto insurance rate because auto insurance companies view people 25 and older as a more “stable driver”.

Living With Mom and Dad
If you still live with your parents, but don’t own your own car, you are still eligible to remain on their policy. This will save you money because your parents are considered lower-risk drivers and will likely have a better auto insurance rate than if you had car insurance on your own. However, if you purchase your own vehicle, most car insurance companies will require you to buy your own insurance, to avoid any confusion as to who the car belongs to.

Financial Picture
To save money, you should look into what other insurance coverages you already have and see if you’re paying for double-coverage. If you have health insurance through your employer, you can waive Personal Injury Protection (PIP), which pays for your medical expenses in the event of an accident. At times, some car insurance companies will allow you to limit medical damages under your uninsured motorist coverage in exchange for a lower premium.

Just be careful as to not sacrifice adequate car insurance to save a couple extra bucks. For instance, if you’re in a major accident with an uninsured motorist, and your medical bills are high, you will end up paying for those bills, not the uninsured motorist!

If you think you’re paying too much for car insurance and would like to get quotes from other auto insurance providers, 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 budget.

Car Accidents Happen Closer To Home Than You May Think

Where you live is an element that insurance companies use in the process of setting up your insurance rates. Auto insurance companies often look at how often car accidents and theft occur close to your home when determining your car insurance rates.

Progressive asked 11,000 of its auto insurance policyholders who reported accidents in 2001 how close to home they were when the accident happened. Fifty-two percent reported they were five miles or less from home, and an astounding 77 percent reported they were within 15 miles of home!

Typically, if you live in an accident-prone area, insurers will assume your risk is higher because most people do their driving near home.

Where Accidents Occur Most

Miles from home	Percentage of accidents
1 mile or less	23%
2 to 5 miles	29%
6 to 10 miles	17%
11 to 15 miles	8%
16 to 20 miles	6%
More than 20 miles	17%

In addition:

• Accidents were more than twice as likely to occur one mile from home compared to 20 miles from home
• One percent of reported accidents took place 50 miles or more from home
• The region with the highest percentage of reported accidents occurring less than five miles from home was the Northeast, followed by the Midwest, West, Great Plains, Gulf, then Mid Atlantic

Where does my state fall?

Northeast Region:
Connecticut, Maine, New Hampshire, New York, Pennsylvania, Rhode Island, and Vermont

Midwest Region:
Iowa, Indiana, Minnesota, and Ohio

Western Region:
Arizona, California, Oregon, and Washington

Great Plains Region:
Colorado, North Dakota, New Mexico, Oklahoma, South Dakota, Texas, and Utah

Gulf Region:
Alabama, Florida, and Mississippi

Mid-Atlantic Region:
Delaware, Washington, D.C., Georgia, Kentucky, Maryland, North Carolina, Virginia, and West Virginia

If you think you’re paying too much for car insurance because you live in an accident-prone area, 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 cheapest auto insurance coverage for your area and state.

Your Auto Insurer Knows Plenty about You

Your auto insurance company probably has a lot of your personal information, and that`s not necessarily a bad thing. For instance, auto insurers get a hold of your driving record, credit history, and other info to use in making decisions such as whether to cover your vehicles and how much to charge you for coverage.

Many insurers use credit information to determine your insurance risk score. You`ll likely pay less for car insurance if you have a good credit score, a history of paying bills on time and no bad debt. Insurers see a direct relationship between your insurance risk score and the chances of you filing a claim. Conversely, an insurance applicant who has a history of being late on bill payments and who often opens and closes savings or credit accounts wouldn`t be as good an insurance risk.

You won`t be able to obtain your insurance risk score, but you can assume that it`s comparable to your credit score.

Providing insights on credit scoring/rating are insurance industry experts Carolyn Gorman, Dick Luedke, Nichole Mahrt and Dave Snyder. Your credit rating may affect what you pay for auto insurance, so keep tabs on it, recommends Gorman, vice president of the New York-based Insurance Information Institute. Gorman believes that credit makes auto insurance rates more accurate, fair and objective. The use of insurance scoring varies from state to state and company to company, says Gorman, but the insurance industry believes that drivers with long, stable credit records have fewer accidents than drivers who don't.

Gorman says that there are various Internet services that permit consumers to check their credit rating and offer suggestions on how to improve their scores.

"Motor vehicle records are invaluable to a company in the assessment of auto insurance risk, and to the extent they are not accurate, we are unable to assess that risk as well as we might otherwise be able to," says State Farm spokesperson Dick Luedke.

Credit scoring is another tool that enables insurers to estimate risk, according to Nicole Mahrt, western regional public affairs director for the American Insurance Association. "It helps them accurately price the product for you so that you pay a premium that reflects your individual risk characteristics."

Mahrt`s AIA colleague, Dave Snyder traveled a different road on the topic. "Because driving experience is so important as a predictor of insurance risk, insurers try to gather as much pertinent information as they can about the drivers, and that would include state motor vehicle records and related data from other sources."

Word of warning from insurance trade group executive Daniel Kummer. "You could end up with legal difficulties or get in trouble with your auto insurer by leaving citations or convictions off an insurance application. Doing that could make you vulnerable to fraud charges. And misrepresenting your driving record on your insurance application by leaving out reference to citations for DUI or other moving violations could give the insurance company grounds to cancel your policy," warns Kummer, director of auto insurance for the Property Casualty Insurers Association of America in Des Plaines, Ill. "And if you make such an omission in your application, you might get caught by the insurer, and it`s likely your rates will go up as a result."

Shopping for Affordable Auto Isurance

Many insurance companies issue automobile insurance, so there should be little trouble finding a good one. There are many shopping options when looking for insurance:

1.) Shop online to compare multiple companies and rates at once. You’ll save time and probably money as well, if you take the time to shop around.

2.) Contact a local insurance agent. You may want to look for an independent agent who can explain coverage and give you quotes from several companies. The best way to find a good agent is by asking for recommendations from people you know.

3.) You can also purchase insurance from a company that sells directly to consumers rather than through agents.

Remember that your profile will be a good fit for some companies but possibly not for others. This can result in quite a big variance in rate quotes. Shopping around will help you find the policy that’s right for you.

Compare premiums offered by various companies and look for high customer service standards and financial strength. The ability to pay a claim promptly will be important if you're ever involved in an accident. Resources for researching insurance companies include state insurance bureaus and consumer reference guides.

Finally, you should ask about discounts. You may benefit from multi-car and/or multi-driver discounts. You may receive a multiple policy discount if you purchase your auto insurance coverage through the same insurer that covers your homeowners or renters insurance. An insurer may also offer you a discount if you have a safe driving record or have completed a driver's education course.

Take the time to compare multiple companies and rates to make the decision that’s right for you.

Top 10 Most Frequent Auto Repairs

Every car owner dreads it. The call from your mechanic telling you that your regularly scheduled tune-up has uncovered a major repair problem--and it's going to cost you. Aside from your car payment, your monthly insurance premium may be your second-largest car-related expense According to MotorService, an auto industry trade magazine, the most frequent auto repairs include:

1.) Brake system
2.) Lube/oil change/filters
3.) Cooling/heating (radiator)
4.) Ignition/electronic control
5.) Steering/suspension
6.) Carburetor/fuel system
7.) Electrical
8.) Transmission/clutch/rear axle
9.) Auto air conditioning
10.) Exhaust system

In addition to auto repair services, there are many other costs associated with owning a car, including car payments, commuting expenses (e.g. gas, tolls, parking), and insurance premiums. Here are some tips that can help car owners save money.

Keep your repair costs in check
One of the most important things you can do to avoid costly auto repairs is preventive maintenance. Regularly scheduled trips to your mechanic can save you money in the long run. Either follow your car manufacturer's maintenance schedule, or ask your repair shop if they have their own schedule.

When bringing your car in for repairs, be sure to ask for a written estimate ahead of time. You'll also want to make sure that the repair shop will get your approval to perform any work that exceeds a certain amount.

Lower your commuting expenses
Many car owners overlook the cost of commuting when determining their monthly car expenses. In addition to gas and toll charges, you may need to factor in fees to park your car. Car pooling, either with coworkers or through a car pooling service, and taking advantage of public transportation (e.g. train, bus) in your area can greatly reduce your commuting expenses.

Lower your insurance premiums
Aside from your car payment, your monthly insurance premium may be your second-largest car-related expense. If you're looking to save money on your premiums, follow these simple steps:

• Shop around--in most states, premiums vary widely from company to company, so it often pays to compare policies
• Increase your deductible--typically, increasing your deductible will result in a lower premium
• If you drive an older car, consider dropping collision and/or other-than-collision (also known as comprehensive) coverage
• Take advantage of discounts--ask your insurer what types of discounts they offer (e.g. low mileage, antitheft devices, air bags, antilock brakes, safe driver)