How To safely Buy Car Insurance & Avoid Scams

According to Progressive Auto Insurance, here is the breakdown of reasons that cars are stolen in the U.S.: 55% were unlocked, 34% left the windows open, 6% left keys in the car!

Driving around without car insurance is illegal in most states
Do not drive around without auto insurance, it is illegal. In fact, most auto insurance companies will not insure you if you are currently uninsured. They won't even give you a quote. This is why it is important that you never let your car insurance coverage lapse. Allstate and GEICO are probably the only companies who will still give you car insurance coverage if you are currently uninsured.

Always shop around for the lowest car insurance rates
Note: Unfortunately, if you don't currently have car insurance, you won't be able to use Comparison Market, in this case, try GEICO instead. Comparison Market gives you a better way to shop for auto insurance. Instantly compare accurate rates from America's top insurance companies, including Travelers, The Hartford, Liberty Mutual, Safeco and others. Comparison Market and BestCarInsuranceSite allow you to:

• Shop for your car insurance easily, making apples-to-apples comparisons
• Save money on your auto insurance
• Receive accurate, real-time auto insurance quotes
• Make an informed choice

Don't fall into the gap!
If you owe more on your car than it is worth, if you lease, or if you put down less than 20%, you should get Gap Coverage from Gapinsurancequotes.com. Most people refer to it commonly as "gap insurance". Don't even bother buying it from dealers, they charge $500-$700 when you can get it online directly from Gapinsurancequotes.com for less than 1/2 the car dealers. If you owe $20,000 on your car, but it's only worth $16,000, you're upside down. You total the car, or it's stolen, your insurance company gives you $16,000. You must still come up with $4000 to pay off the bank, plus your $500 deductible! Gap coverage protects you against this. The better ones cover up to $500 of your deductible.

Why you must get a copy of your driving record
I highly suggest you get a copy of your drivers license record BEFORE shopping for insurance. Many of us have errors in our driving report that drive up our auto insurance rates. I once paid a traffic ticket and attended driving school, but they never credited my driving record! How did I find out? Allstate canned me! That's not the way you want to find an error on your driving record. In the newspaper, a clerk of the court admitted they had a 20% error rate, and shrugged it off as normal. So lucky 20% me had my license suspended by mistake. Don't let this happen to you! Trust me, you don't want to go through what I did to fix it. If you go to driving school or pay fines, keep the receipt in your wallet for 3 years or until you renew your license! If you get pulled over by the police, it's your only salvation from being arrested for driving with a suspended license. Just like your credit history determines your car loan approval, your driving record determines how expensive your auto insurance will be.

Car Insurance - Accident Scams

Insurance company’s country wide spends millions of dollars yearly to defend against misleading car accident claims by mischievous individuals looking to reap the benefits of the insurance claims. How do auto insurance scams affect you? Well not to mention the obvious possible outcome of death due to car accident scams gone wrong. Who do you think actually pays for the cost of the scams? Not the insurance companies, you pay because the insurance companies raise premiums to compensate for the loss. It is an unfortunate outcome for the honest citizen. What can you do to help yourself and the insurance companies? Educate yourself to help prevent possible car accident traps that are practiced today. Contact you insurance provider if you think you have been scammed or witnessed a scam. It is possible that you insurance provider could reward your effort.

Below is a list of scam techniques practiced today by many criminals.

Paper Accident

When a criminal actively solicit others in the auto repair and salvage industry to participate in accidents that only exist on paper. Shady lawyers, doctors and insurance agents are normally part of this as well. The perpetrator will keep the claim lower than 1,000 dollars knowing that most insurance companies do not send investigators to examine a claim at that amount.

Hit & Run

When a perpetrator reports a factious hit and run to their insurance provider.

Swoop and Squat

When a perpetrator abruptly swoops in front of a car and quickly squats or stops. An accomplice moves to the side of the targeted victim to prevent the trapped car from swerving out of the way. The passengers of the squat car all report injuries that are supported later by a doctor or a chiropractor that are in the scam.

Sideswipe

A tactic used in multiple turn lanes at an intersection. A perpetrator will continue to take the multiple left turns until another car suddenly maneuvers into the lane in which the perpetrator suddenly speeds up to force a collision.

T-Bone

This is normally conducted with the absence of any hostile witnesses. The perpetrator waits at an intersection and intentionally rams into a car as it passes. When the police arrive, bogus witnesses are planted to tell the police officer that the victim ran a stop sign or red light.

Wave

A tactic normally conducted in heavy traffic, and when there is a merge. The perpetrator waves to the victim, pretending to yield the right of way. As the victim begins to merge, the perpetrator quickly accelerates to initiate contact. When the police arrive, the perpetrator denies ever giving up the right of way.

Shady Helper

This could happen after an honest accident. A stranger approaches you after an accident and offers numbers to an auto repair shop, lawyer or doctor. This could be a setup. The auto repair shop often pads your repair cost, and a doctor may give you shady treatment or none at all. A lawyer may even try to convince you to sue the insurance company.

Most scams are performed by professionals that run practice drills before actually committing the crime. They are normally very professional and skilled at their craft, but that does not mean you can not take steps from being victimized. Here are some measures that can be taken to shift the advantage to your side.

Keep a disposable camera, paper and pen in your glove department. A picture speaks a thousand words is an old cliché, but it can be very valuable in an accident. After an accident, take unlimited pictures of every car including the passengers. Get as much information down on paper about every participant in the accident including witnesses. The pictures along with the note taking will leave little room for the perpetrators to lie about damage to their vehicle and persons after the fact. If you think an accident has been staged, get good details about the accident!

Below is a good list of details that you should obtain in an accident.

Exchange information with the driver.
Drivers License, vehicle registration and proof of insurance
Count the number of people in the car and get there:
Name
Address
Telephone Number
Make note if they were wearing seatbelts
Did they act injured only after the police arrived?
Get the names, address and phone numbers of anyone that witnessed the accident
Call the police if it seems staged!

This is all good information to know, but why should I care about helping the insurance companies catch these criminals if I am not the victim? This is a good question that many citizens ask themselves. Why do you want to help deter insurance fraud crime? Because you the honest citizen pays for the cost, not the insurance company nor the criminal. The burden of cost is transferred from the insurance company next time your insurance premiums increase.

What you pay?

Record Blemished – As you know, insurance companies keep a record of personal driving records to measure the risk of insuring motorists. The driving record is what determines your eligibility to be insured by the insurance company. Whether an accident staged or not, your record will be affected as well as your driving record.

Victims Terrorized, Killed – Staged accidents for insurance claims is very hazardous to your health. It only takes one mistake by you or the perpetrators to take your life or your loved ones.

Premiums Raised – Everyone’s auto insurance premiums rise because insurance companies pass the cost of bogus insurance claims to honest citizens.

Which type of health insurance is right for you?

Whether you are eligible for group insurance or choosing an
individual plan, you should carefully compare costs and coverage.
Be sure to compare:
1. Premiums.
2. Coverage/benefits.
3. Access to doctors, hospitals, and other providers.
4. Access to after hours and emergency care.
5. Out-of-pocket costs (coinsurance, copays, and
deductibles).
6. Exclusions and limitations.
Even if you do not get to choose your health plan—for example, if
your employer offers only one plan—you still need to understand
your coverage. What kind of services are covered by the plan? What
steps do you need to take to get the care you and your family
members need? When do you need prior approval to ensure
coverage for care (for example, elective hospitalization for scheduled
surgery)? How are benefits paid; do you have to submit a claim?
Make sure you understand how your plan works. Don’t wait until
you need emergency care to ask questions.

If you are choosing between indemnity and managed care plans,
remember that they may differ in several important ways, including:
• How you access services.
• How you obtain specialty care.
• How much and sometimes how you pay for care.
Despite these differences, indemnity and managed care plans share
some features. For example, both types of plans cover a wide array
of medical, surgical, and hospital services. Most plans offer some
coverage for prescription drugs. Some plans also have at least partial
coverage for dentists and other providers.
The major difference between indemnity (nonnetwork
based coverage) and managed care
plans (network-based coverage) concerns
choice of doctors, hospitals, and other
providers; out-of-pocket costs for covered
services; and how bills are paid.
Be sure to check on the physicians and hospitals
that are included in the plan.

How do you get health insurance?

Most people get health insurance through their employers or
organizations to which they belong. This is called group insurance.
Some people do not have access to group insurance. They may
choose to purchase their own individual health insurance directly
from an insurance company. Many Americans get health insurance
through government programs that operate at the national, State,
and local levels. Examples include Medicare, Medicaid, and
programs run by the Department of Veterans Affairs and
Department of Defense.

Group Insurance
Group health insurance is typically offered by employers. Or, if you
are a member of a union, professional association, or other group,
you may be able to get group coverage through that organization.
Some employers allow employees to choose between several plans,
including both indemnity insurance and managed care. Other
employers offer only one plan. Some group plans offer dental
and/or vision benefits as well as medical benefits. So it is important
to compare plans to find the one that offers the benefits you need
most. Once you enroll in a health insurance plan, you usually
cannot change to another plan until the next open season, usually
set once a year.
When group health insurance is an employee benefit, your
employer usually pays a portion or all of the premiums. This means
your costs for health insurance premiums will be lower than they
would be if you paid the entire premium alone.
When you get group insurance through membership in an
organization, you usually will benefit from being a member of a
large group. You may pay less for premiums than an individual
would pay. However, the organization often does not pay a share of
the premium, meaning you may be responsible for paying the entire
premium yourself.
Individual Insurance
If you are self-employed or your employer does not offer health
insurance, you may not have access to group insurance. You may,
however, be able to purchase individual coverage directly from an
insurance company. When you buy your own health insurance, you
will be responsible for paying the entire premium rather than
sharing the cost with an employer. You should shop around to find
a plan that fits your needs at a price that you are willing to pay.

Most self-employed workers are able to deduct their health
insurance premiums from their Federal taxable income, providing
them with an important tax saving. Most States also offer similar
tax preferences. If you are self-employed and buy individual health
insurance, you should consult a tax advisor to find out if you are
eligible for this deduction.
Insurance plans differ greatly from one company to another and,
within an insurance company, from one plan or product to another.
Some plans have multiple products (options) from which you can
choose; read carefully through the “fine print” to be sure you
understand the various choices.

health insurance guides

If you have ever been sick or injured, then you must know how important it is to have health coverage. But if you’re confused about what kind is best for you, you’re not alone.there are many kinds of health insurance policies and in this health insurance guide i will try to explain health insurance in brief.
The term health insurance refers to a wide variety of insurance policies. These range from policies that cover the costs of doctors and hospitals to those that meet a specific need, such as paying for long-term care. Even disability insurance—which replaces lost income if you can’t work because of illness or accident—is considered health insurance, even though it’s not specifically for medical expenses.

Today, there are many more kinds of health insurance to choose
from than were available just a few years ago. Traditional differences
between and among plans may no longer apply. Also, there is an
increased emphasis on the role of consumers in managing their own
health care and health care finances. There is a focus on providing
information on the cost of care and health care quality—at the level
of the physician, physician group, and hospital—to help consumers
and employers choose among the many options available to them.

New Health Care Marketplace

Things have changed a lot since the 1970s, when most people in the
United States who had health insurance had indemnity insurance.
Indemnity insurance is often called fee-for-service or traditional
health insurance. This type of coverage generally assumes that the
medical provider (usually a doctor or hospital) will be paid a fee for
each service provided to the patient—that is, you or a family member covered under the policy.

in this health insurance guide i will try to explain that you do you need health insurance?

As medical care advances and treatments increase, health care costs
also increase. The purpose of health insurance is to help you pay for
care. It protects you and your family financially in the event of an
unexpected serious illness or injury that could be very expensive. In
addition, you are more likely to get routine and preventive care if
you have health insurance.
You need health insurance because you cannot predict what your
medical bills will be. In some years, your costs may be low. In other
years, you may have very high medical expenses. If you have health
insurance, you will have peace of mind in knowing that you are
protected from most of these costs. You should not wait until you
or a family member becomes seriously ill to try to purchase health
insurance.

Now the next thing explained in this health insurance guide is that How do you get health insurance?

Newport Car Insurance Company

Newport offers a personal auto program with competitive rates for "clean drivers" all the way to drivers with minor and major accidents or violations. Newport also provides an auto management solution that has a proven positive underwriting result for over 20 years.

Newport Customer Service: 1-866-671-5048
Newport Claims Service: 1-800-285-2524
Online Policy Services: arrowheadexchange.com

Newport boasts superior customer service and they offer non-credit scored competitive rates for drivers that don't want their credit used in scoring auto insurance.

The Hartford Car Insurance - Hartford Auto Insurance - Hartford Policy

Hartford Customer Service: 1-800-624-5578
Hartford Claims Service: 1-800-243-5860

The Hartford provides individuals and families with the products and services they need to protect and grow their wealth. In addition to offering home and automobile insurance, they offer 529 college savings plans, variable universal life and universal life insurance products, individual annuities, and mutual funds, The Hartford helps to ensure a secure financial future for its customers.

Direct General

Direct General Insurance Company a partner for car insurance quotes and auto insurance policies. Simply, enter your zip code or postal code and start your quote. You can compare car insurance rates and purchase a policy online or through our call center. In your location we may offer Direct Insurance quotes and/or other insurance companies.

Direct General Customer Service: 1-866-376-6463
Direct General Claims Service: 1-800-403-1077

One of the first and most important things you can do to save money on your auto insurance, is to shop around before you buy your policy. Sometimes even if you can afford your current policy, others may offer the same policy for a cheaper price. Remember, the insurance business is highly competitive and smart consumer who shops around can easily benefit from it.

Progressive Insurance - Progressive Car Insurance

CarInsurance.com is proud to call Progressive Insurance Company a partner for car insurance quotes and auto insurance policies. Simply, enter your zip code or postal code above, start your quote and you can compare Progressive car insurance rates. We offer Progressive's agency product, so you can compare quotes and policies online.

Progressive Customer Service: 1-800-925-2886
Progressive Claims Service: 1-800-776-4737

There are many benefits from choosing to shop online, you can choose from a variety of car insurance coverages to fit your lifestyle and explore "what if" scenarios, such as how much will your insurance change if you move, buy a car or add a driver. It's up to you to explore the possibilities — and it takes very little time to compare rates on CarInsurance.com. It is always important to list all household members on your policy, even if they do not drive your car.

Factors That really Affect Your Car Insurance Premium

Many factors affect the premium you will pay for auto insurance. Each is a statistically based risk for a specific population. The higher the risk associated with a person, the more he or she is likely to pay for coverage. We have elaborated on some of the risk factors below, but there are numerous others, including driver's gender, miles driven per year, purpose for using the vehicle (commuting to work, using for work, leisure only), etc.

• Age
  Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
• Gender
  Women are statistically safer drivers, but that trend is changing as more female drivers get on the road.
• Marital Status
  A married person will pay less than a single person with an identical driving record.

You can think about these factors and determine what you can do to change them in your situation. You may be able to save on insurance based upon these decisions:

• Geography
  Where you live makes a difference. Folks living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.
• Driving Violations
  Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your premium will get lower.
• Vehicle Type
  A cheap car will cost less to insure than that status symbol SUV sitting on 24" rims.
• Accident Claims
  A driving record that is clean and free of accidents will hold far better for you than lots of tickets and/or accidents.
• Credit Rating
  Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium. Monitor your credit rating free to see if you can get a better score. A better credit score will save on insurance premiums.
• Occupation
  Insurers have statistically found a correlation between your occupation and risk. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day.
• Education
  A higher education can save on your premiums.
• Driving distance to work
• Miles driven each year
• Years of driving experience
• Business use of the vehicle
• Whether or not you currently have auto insurance and how high are your limits
• Theft protection devices (often results in discounts)
• Multiple cars and drivers (another opportunity for discounts)

Car Insurance for young Drivers

The statistics about teenage drivers aren't good. According to the Insurance Institute for Highway Safety (IIHS), 16-year-olds get into accidents almost six times more often than drivers between the age of 30 and 59. No wonder car insurance premiums are so high for this age group.

However, not all car insurance companies take the same dim view of young drivers. And some discounts are available to help you cut costs. Remember, the higher the risk, the higher the cost of insurance premiums. Let this be your guiding principle as you shop for insurance.

Here are 10 suggestions to help lower premiums and keep your teenager's license free of violations:

1. Help your teen learn the laws and follow them to the letter. By far, the best way to lower car insurance costs for teens is for them to keep their driving record clean. Make safe driving a family project. In some states, restrictions apply to new drivers. Parents should know what the laws are and insist that their sons and daughters follow them.

2. Set a good example. Do you break the speed limit and tailgate? Do you yell at other drivers when you're behind the wheel? If you do these things, how can you expect your children to act differently? Start watching your own driving long before they get their license and you'll have a much easier time convincing them to be safe drivers. Remember, actions speak louder than words.

3. Put your teenager on your policy. Rather than setting up an independent policy for your teen driver, put them on your auto insurance policy as an additional driver. In this way, all the discounts applied to your policies will be passed on to them.

4. Pay your teenager to get good grades. Here's a creative tip — find out how much you save if your teenager gets a good grade point average and pass it on to them. Usually, having a 3.0 or higher GPA will reduce your car insurance premium by 10 percent. Figure out exactly how much this saves you and give that money to your teenager. This accomplishes two things. First, it provides a direct reward for academic performance. Secondly, it motivates them to continue getting good grades.

5. Enroll them in driver education courses. Discounts are available for teens who take recognized driving classes. But call your car insurance company to find out which schools are covered before paying big bucks.

6. Steer clear of sports cars. Don't try to live vicariously through your teenager by giving them the hot car you couldn't get in high school. Getting your teenager a safe car to drive, with the latest safety equipment, will lower your premiums. Not only will you save money on car insurance, but fast driving will be less of a temptation.

7. Get their support. Don't assume that your teenager wants to vacuum clean your wallet. Ask them for help cutting costs and point out that you will share in the savings (see rule #4). Tell them how much car insurance costs and show them how this fits into the family budget. If nothing else, you will score points for treating them as adults.

8. Talk to your kids about drugs and alcohol. This is a tough subject to broach with teenagers, who think they have everything under control. But the consequences of saying nothing can be catastrophic. Take the time to lay down some guidelines in this important area.

9. Take traffic school to beat tickets. Once a ticket is on your teen's license, it takes months to get the violation removed. Instead, encourage them to take traffic school if the judge allows it. A day spent thinking about the consequences of unsafe driving can bring rewards for years to come.

10. Ride with your teenager. Your teenager was a safe driver last year when he or she got a license. But what's happened since then? Let your son or daughter take the wheel while you sit back and relax in the passenger seat. If you see them doing something that breaks rules or seems unsafe, point this out in a diplomatic way. If they are doing a good job driving, praise them for their efforts.

Record and Compare Quotes

While you're researching companies, make notes in a separate computer file or on a piece of paper divided into categories. This will keep you from duplicating your efforts. When you visit the different online insurance sites, you should take note of several things:

• Annual and monthly rates for the different types of coverage — make sure to keep the coverage limits the same so that you can make "apples-to-apples" comparisons
• An 800 number to call for questions you can't get answered online
• The insurance company's payment policy (When is your payment due? What happens if you're late in making a payment?)
• Discounts offered by the insurance company that pertain to you
• The insurance company's consumer complaint ratio from your state's department of insurance Web site (more on this later)
• The insurance company's A.M. Best and Standard & Poor's ratings (more on this later)

Review Your Driving Record and Current Insurance Policy

Before you begin shopping for insurance you should check the following: the status of your driving record, your current coverage and the premiums you are paying.

You should know how many tickets you have had recently. But time plays tricks and our memories repress painful incidents. If you can't remember how long that speeding ticket has been on your record, check with your state's DMV. If your record will soon improve, and the points you earned will finally disappear, wait until that happens before you get quotes. Nothing drives up the price of insurance like a bad driving record.

Also, you should contact your auto insurance company or pull out a recent bill. Jot down the amount of coverage you have and what you are paying for it. Take note of the yearly and monthly cost of your insurance since many of your quotes will be given both ways. Now you have a figure in mind to try to beat.

Your car is stolen and then crashed.

If the thief crashes into someone or something, you won't be held responsible for the damages done to other people and their property, but you probably will have to use your collision insurance to pay for the damage to your car. Don't count on the thief having auto insurance, let alone enough money to spring for repairs and medical expenses. Even if the thief has insurance, his company won't pay for his criminal act.

Your friend drives your car without your permission and crashes it.

You're not likely to be held accountable for the damages because your friend borrowed your vehicle without your knowledge. In this case, your friend's insurance (assuming he or she has it) will kick in first. If your friend isn't covered, you'll probably need to use your collision insurance to cover the damages to your own vehicle and your liability insurance would cover damage to others' property. Bear in mind that insurance companies will assume a friend has permission to use your car unless there are clear indications that you denied permission, such as a drunken friend who takes your car without your knowledge.

Your uninsured friend drives your car and causes a lot of damage.

Lending your car to an uninsured friend can land you in a world of hurt. In this case, your uninsured friend has put you in a really bad spot. If the damage your friend causes exceeds your policy limits, the injured party can come after you for medical and property-damage expenses.

Your friend drives your car and causes an accident with a lot of damage.

Let's say the accident your friend causes results in serious bodily injury to others and property damage. Liability coverage consists of two parts: bodily injury liability and physical damage liability. The driver's policy covers the driver and all passengers in the vehicle for bodily injury. The car owner's liability covers property damage caused by his or her car. Liability insurance also covers the cost of your legal fees in the event that you are sued.

But if the damage exceeds your insurance liability limits, the courts can attach your personal assets, such as your home, to recover damages. Liability coverage won't pay for damages beyond the limit for which you are insured.

Cases in which you and your friend share the cost of the accident are known as "pro rata." If your friend was at fault, your insurance companies can share the cost. For example, say your friend causes $11,000 in property damage while driving your car. You have $25,000 in property damage coverage and your friend has $15,000; total coverage is $40,000. You and your friend may share the cost proportionally. Initially, your insurance would likely pay the full cost of the accident. It would then seek compensation from your friend's insurer to recover his or her share.

Your friend drives your car and causes an accident with just a little damage.

If you loan your car to a friend, he causes an accident and both of you have car insurance, your insurance will pay and you'll have to pay your deductible. The reason? Your auto insurance policy insures your vehicle plus "you, any relative, and anyone else using your car if the use is (or reasonably believed to be) with your permission."

When your friend crashes your car: The rules of auto liability

If you drive your car and cause an accident, your insurance will pay for the damages you cause, as defined in your policy. If your friend crashes your car, you may assume that he (and his insurance) is responsible. In fact, you are on the hook. Here are a number of accident scenarios and what you can expect to happen.

Stop Insurance Fraud - Top 10

1) Do not buy the first policy you come across. With most things you shell out money for, you shop around and weigh against prices and features. Insurance purchase should be no different. Always get hold of quotes from a number of companies and judge against benefits and rates ahead of paying your first premium. The bottom line is to weigh the pros and cons of the available options before narrowing down your choice to the ultimate one.
2) Be careful to buy your policy only from authorized companies and agents/agencies. Unauthorized insurance procedures are illegal, and their policyholders are as good as unprotected against the risks apparently insured against, as also the danger of being hoaxed. You can verify the authenticity of an insurer by calling the Louisiana Department of Insurance.

3) Be sure about the credibility of an agent as also of a company. A classic case in point is when the price quoted sounds too good to be true; it may very well be a bait for you to grab, and lose. Low premiums are worthless if you receive bad service or the company is incapable to cover your claim.

4) Fill out your application carefully, with utmost attention to the all of the otherwise minute details. An error or two creeping in here and there may catch you unawares derail you. Never put your signature on blank forms or blank applications. Inaccurate, imperfect or false information on your application can lay your insurance coverage on the line. It is an offense to furnish false information on an insurance application or claim. Don't allow an agent to sway you to say anything or file data that is not to the best of your knowledge.

5) Premium is of premier importance; it is always at a premium. Never pay your premium in cash. Always make check or money order payment of your insurance premiums. Ensure that you have a receipt that clearly shows that you paid the premium in reality. Whenever possible, pay direct to the insurance company, instead of through the agent.

6) Look ahead to getting a copy of your policy from your agent in a fair period of time. (Note: For auto insurance, an ID card is NOT regarded as a copy of policy.) In case of non-receipt of your policy, contact your agent first, and then your state's Department of Insurance.

7) Read your policy right away to bear out that it contains the coverage you conversed with your agent. If everything is not in place, get in touch with your agent straight away or return your policy.

8) Bear in mind there is a free-look period in which you are given time to assess a policy once you have received it. Ensure that you utilize it to the best effect. All life and health policies have to have a free-look period of at a minimum of 10 days; some may have longer.

9) Keep copies of all insurance records, including copies of all premium payments, for future reference, if the situation so demands. Keep additional copies in a safe-deposit box, in a waterproof and fireproof container, or with a trusted friend or legal practitioner.

10) Contact your state's Department of Insurance to know details of a company's or an agent's license standing, A.M. Best rating, complaint history, or to lodge a complaint.

If everything is not crystal clear...
If you are under the impression that your insurance company has inappropriately declines to issue or renew your policy, or turns down payment of all or part of a legitimate claim, you should ask questions first and then complain if required.

First, you should contact your agent or company representative. Oftentimes a slip-up has been made and will be set right upon inquiry. When putting up a query to your agent or company, ensure providing them your name, address, telephone number, policy number, type of policy, and the nature of your problem.

Complaints / Fraud
What happens if you're still in dark? If you do not get a fitting reply from your agent or company or to report deceit, you should not hesitate to lodge a complaint with your state's Department of Insurance.

Avoid Distraction & Drive Safe

According to the National Highway Traffic Safety Administration (NHTSA), 25% of all police-reported traffic accidents can be blamed, in part, on driver distraction. While no one distraction gets all of the blame, recent advances in technology have caused a spotlight to shine upon cell phones, and increasingly, iPods and other media players. Several states have enacted laws regarding the use of cell phones while driving and other legislation is pending. With or without a law, however, it is ultimately up to us to make a conscious decision to limit distractions and drive safely.
Cell Phone Safety
Much controversy exists over cell phone safety while driving. Some proponents of cell phone legislation firmly believe that it is the physical handling of the phone, such as dialing or scrolling to look for a number that causes the dangerous driver distractions we hear about in the press, on the television news, and over the Internet. Others, as firmly convicted as the former, believe it is the conversation itself that distracts drivers, and therefore oppose cell phone legislation that includes hands-free mandates.

The issue isn't likely to be resolved any time soon. While more states are passing laws and/or introducing legislation regarding the use of cell phones while driving, it will be some time before ongoing research is able to draw the appropriate conclusions. In the meantime, we have to police ourselves, just as we do every time we get behind the wheel. In the same way that most of us buckle our seat belts not to avoid getting a ticket, but because we believe we'll be safer, we must give due diligence to the use of cell phones while we're driving.

To millions of people, a cell phone is as necessary as car keys when preparing to go somewhere in the car. To their credit, they have saved countless lives because, as long as we can get a signal, we can summon help immediately from almost anywhere. Many people drive with a cell phone for the express purpose of being able to use it in the event of an emergency. Next to the safety factor, the convenience is unparalleled to most modern conveniences.

The whole issue of using cell phones while driving isn't confined to teenagers chatting with their friends either. Business men and women continue conversations started in the office, make multi-million dollar deals, and corporate life and death decisions, all while driving through rush hour traffic. We make appointments, check on sick children, get our bank balances, and occasionally, argue with someone, all while making split-second decisions that can, and has had horrifying consequences.

Until we're subject, as some of us already are, to laws that ban the use of cell phones while driving, or at least require some sort of hands-free device, we'll have to rely on our own judgment to stay safe while driving. To that end, consider equipping your cell phone with a hands-free device that you can use while driving. Investigate the voice prompt capability on your cell phone that may allow you to answer the phone with your voice only.

Think twice about the calls you routinely make while driving. Is it imperative that you make that phone call right then, or can it wait until you've reached your destination? If you absolutely have to make calls while you're on the road, keep the conversations to a bare minimum. If you know you have an important call to make, arrange to do so when you're not driving. Remember, ongoing research suggests it's not just the physical act of handling the phone that causes a driver to be distracted, but the conversation he or she is engaged in plays an important role also.

iPod Safety
Most of us have driven with our favorite tunes since we first learned to drive, so driving with music playing is certainly nothing new. However, as technology advances, we're able to do much more than listen to music. Just like cell phones allow users to do much more than talk, iPods allow users to do much more than listen. With hours and hours of video playback and thousands of photographs and songs contained on these mind-boggling gadgets, an otherwise careful driver with a clean driving record can find herself in a perilous situation in mere seconds.

Whether fooling with the gadget itself, or getting so caught up in the content so as to be distracted, iPod use while driving is an accident waiting to happen without conscious thought beforehand. For one thing, avoid the use of headphones or ear buds while driving because you never know what you may hear in a split second that could save your life or the lives of others. You can integrate your iPod with most car stereo systems and enjoy the stereo sound without anything interfering with your hearing.

Perhaps the most important suggestion however, is to choose your audio before you begin driving, rather than searching for something while your eyes should be on the road. Whether you've downloaded an audio book or have a favorite playlist, you can set this up before you take the wheel and enjoy it just as much as you would otherwise. Save the video playback for later, even if you think you won't be tempted to glance over at the screen. Just one sideways glance is all it takes to distract a driver to danger.

Canada Car Insurance Money Saving Tip

You can utilize many tips and tricks when you are looking into auto insurance. However, there is one major one that we usually forget to look into that can help you save money:
Those who are shopping for car insurance in Canada usually remember to discuss the obvious factors that can help their premiums with their agent. These are generally driver's training classes they have taken, dropping collision coverage from an older car, using your car only for pleasure and not work, and the like. However, those who get a quote in Canada may forget to mention that they have anti-theft devices installed on their auto. If you do not mention you have this, you may be missing out on some major insurance discounts over the life of your auto insurance premium!

Canadians pay approximately 1.2 billion per year in auto theft costs. This includes legal bills, the insurance costs, as well as any medical bills that occur if the theft involved injuries. It is therefore in everybody's best interest, even Canadian insurance companies, to use anti-theft deterrents on your vehicle and to get the insurance discounts associated with having them. Any type of insurance discount gets you more money in your pocket!

You can use three different types of anti-theft devices. When you know and understand them, you can get a better price on your Canadian auto insurance quote:

1. Mechanical - Devices such as a locking bar can prevent the steering wheel from moving, until the owner unlocks it himself or herself.

2. Car alarms - You can install an alarm in your car that causes alarms and lights to go off if someone tries to break into your vehicle.

3. Electronic - These are immobilizers that will cut off the power to the ignition, making the car impossible to start.

These three anti-theft devices probably sound very familiar to us. The most familiar are the electronic immobilizers, as the Government of Canada has just recently made them mandatory. These three categories can be broken down as well into two more categories of anti-theft deterrents:

Active Devices: These anti-theft deterrents require that you have to turn them on yourself to make them operate.

Passive Devices: These come on automatically when the engine is turned off, so you do not have to worry about forgetting. Canadian auto insurance companies prefer that their customers have passive devices as they consider them the better of the two. This is because we do not run the risk of forgetting to turn them on, causing our cars to be stolen.

Take advantage of all the possible discounts you can receive before you settle on a car insurance quote. Write down any anti-theft devices your vehicle may have, what kind it is, and anything else that you believe could save you money on your auto insurance. Ask about each discount. Do not just assume that because an engine immobilizer is now mandatory that you automatically get the discount. Make a point of asking to receive every discount you are entitled to!

OnlineAutoInsurance.Com Helping Californians Find the Right Auto Insurance

Comparison shopping is the most effective way to find the best price on automobile coverage. OnlineAutoInsurance.com is proud to provide a service specifically designed to help Californians find the lowest possible rates available. By providing visitors with instant quote comparisons from multiple companies, residents have a better chance of saving on policies. The website also provides valuable resources and tools for effective shopping and a better understanding on how to choose the right policy.

Like most states, California auto insurance laws have set minimum requirements for liability coverage. However, the state has one of the lowest limits required in the country. For this reason, consumers are strongly urged to consider comparing higher limits when shopping for policies. This can be extremely beneficial in the event of a traffic accident where the cost of injuries and property damage exceed the state's minimum requirements. The minimum legal coverage may prove inadequate to protect one from having to pay out of pocket to cover another party's medical care or repair bills.

The Internet makes it possible for consumers to get several quotes from different companies all on one website. This sort of side by side comparison makes it much easier to see the different rates being offered for the same level of coverage and make an informed decision about what policy to purchase. By visiting http://www.insurance.ca.gov/0100-consumers/0060-information-guides/0010-automobile/Auto-insurance-101.cfm one will see that the state's Department of Insurance recommends shopping around because the laws of the state allow companies to determine their own rates based on their previous experience and losses. Since no two companies have had the same loss history, each will quote an applicant differently. This is why it is a good idea to quote as many companies as possible.

For more information about how California residents can find the right coverage at the right price, visit http://www.onlineautoinsurance.com/california/ for more details, answers to frequently asked questions, help choosing coverage and free quotes.

CarInsurance.Com Premium Index Shows Latest Car Insurance Trends

U.S. annual auto insurance premiums averaged $1,674 in September 2009! Get a quote for car insurance and compare your rate to the CarInsurance.com Premium Index (CPI). CPI reports the lowest annual car insurance rates customers received when they compare quotes at CarInsurance.com. CPI includes trends and tools that assist drivers to find the best rate. Getting a car insurance quote is the only way to compare and save.

Many websites offer the ability to compare car insurance rates. CarInsurance.com is a name you can trust. They offer tools and resources that help you make an informed decision before you buy auto insurance. CarInsurance.com gives consumers the information and resources they need to make informed auto insurance decisions.

The only way to save is to get a free car insurance quote and see what the insurance marketplace has to offer. You could go from site to site to compare rates, but that would be a big waste of your time. CarInsurance.com is easy to use and their goal is to show you how much you can save on your car insurance. The rates are accurate since they come directly from the insurance companies. Shoppers can conveniently purchase the selected policy immediately while remaining on the CarInsurance.com website.

If you review each state, you can see that compared to the national average, some states are less expensive to live in. For example, last month Arizona's average car insurance rates were 2% lower than the national average. Arkansas's insurance rates were 34% lower than the national average. Michigan was 20% higher and Pennsylvania was 27% higher than the national average. You can review your local car insurance costs and state car insurance information here:

http://www.carinsurance.com/Average-Premiums.aspx

A simple car insurance quote at CarInsurance.com will help you compare car insurance rates quickly and instantly online. In addition, you can speak with a licensed agent at anytime. With insurance rates fluctuating in 2009, you have to get auto insurance quotes to find the best car insurance for your situation. CarInsurance.com makes it easy to Click, Compare, Save!

About CarInsurance.com, Inc.

CarInsurance.com gives consumers the ability to instantly compare and buy competitive auto insurance rates directly from multiple insurance companies. Consumers have an easy website to review the rates of multiple insurance companies, but also when ready to purchase, consumers have the option of completing the transaction online or by talking directly to a licensed agent. For more information about CarInsurance.com, please visit http://www.CarInsurance.com. The same insurance team has owned and operated the CarInsurance.com domain since 1995, making it one of the first online car insurance websites. CarInsurance.com helps consumers and companies by providing companies new customers through real-time quoting and underwriting. Save your time. Save your money. ®

Finding Low Down Payment Auto Insurance in a Time of Need

Effectively shopping for auto insurance is the key to locating a policy with a low down payment. Unfortunately, many consumers are unaware of the importance of properly comparing payment options in order to locate a carrier offering low start up costs for the coverage desired.

First off, it is important to understand that premiums and payment plans are not standardized across insurers; each one offers unique rates and installment options. With that in mind, it takes a bit of research to find low down payment auto insurance which is well worth the effort.

The Internet is a great starting point to locating low down payments because it allows for easy premium and payment plan comparisons. Insurance quote comparison websites like http:// www.onlineautoinsurance.com offer the ability to enter basic driver and vehicle information only once in order to compare rates from a multitude of top rated insurers.

By completing comparisons, the chances of finding an affordable start up and installment options are increased as more choices become available. Additionally, there are other ways to lower the initial costs of coverage such as these "9 Ways to Lower Your Auto Insurance Costs" provided by the Insurance Information Institute:

http://www.pueblo.gsa.gov/cic_text/cars/autoinsu/autoinsu.htm.

Consumers who choose to shop on their own should make sure that they are knowledgeable about the coverage that they need and understand policies to ensure that they become properly insured and to avoid not being protected in unexpected situations. If one is uncertain of their needs, an agent can be helpful and may be worth time involved in making contact; just be sure to understand any applicable fees which may be negotiable.

SOURCE Online Auto Insurance, LLC

Originally published by Online Auto Insurance, LLC.

Making Online Car Insurance Shopping Easier Wins Progressive Two WebAwards

Two car insurance Web sites from Progressive that make it easier for drivers to buy and service their insurance policies or to find a local independent insurance agent recently received WebAwards from the Web Marketing Association. Progressive.com earned an Outstanding Web Site award and progressiveagent.com won a Standard of Excellence award.

Web sites entered in the WebAwards are evaluated on seven criteria including design, copywriting, innovation, content, interactivity, technology, and ease of use. Web sites from 47 countries and across 96 industries were judged during this year's competition. The Web Marketing Association was founded in 1997 and produces the annual WebAward competition.

Key Facts

Progressive.com earned the Outstanding Web Site award

Progressiveagent.com earned the Standard of Excellence award.

Progressive.com is the Web site for car insurance shoppers who prefer to buy directly from the company.

Progressiveagent.com is the Web site for car insurance shoppers who prefer to start their research on the Internet before buying from a local independent insurance agent.

These are the eighth and ninth WebAwards won by Progressive.

Quotes

Toby Alfred, Progressive's customer acquisition manager

"Winning WebAwards shows that we've created effective online tools for people who want to quote and buy insurance either directly from the company or through an independent insurance agent. We're honored to once again be recognized by an organization with a history of setting high benchmarks and industry standards for Web site development."

Karen Barone, business leader for Agency distribution

"Being honored with a WebAward is affirmation that progressiveagent.com is an easy-to-use Web site that makes it simple for independent insurance agents to do business with their customers and with us."

Multimedia Resources

Progressive.com screenshot

Progressiveagent.com screenshot

About Progressive

The Progressive Group of Insurance Companies, in business since 1937, is one of the country's largest auto insurance groups, the largest seller of motorcycle and personal watercraft policies, and a market leader in commercial auto insurance based on premiums written.

Progressive is committed to becoming consumers' #1 choice for auto insurance by providing competitive rates and innovative products and services that meet drivers' needs throughout their lifetimes, including superior online and in-person customer service, and best-in-class, 24-hour claims service, such as its concierge level of claims service available at service centers located in major metropolitan areas throughout the United States.

Progressive companies offer consumers choices in how to shop for, buy and manage their auto insurance policies. Progressive offers its products, including personal and commercial auto, motorcycle, boat and recreational vehicle insurance, through more than 30,000 independent insurance agencies throughout the U.S. and online and by phone directly from the Company. Private passenger auto products and prices are different when purchased directly from Progressive or through independent agencies. To find an agent or to get a quote, go to http://www.progressive.com.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at (NYSE:PGR).

Tips to avoid low credit scores

• Keep an updated list of all accounts, due dates, balances and credit limits
  (automate your bill paying process).
  
• Pay bills as soon as they arrive (as many as 100 points can be deducted per default).
  
• Keep an eye on all accounts carefully (keep balances low and spend around 1/3rd
  of your credit limit).
  
• Minimize credit card applications (avoid unnecessary credit).
  
• Check your credit report at least once a year.
  

Credit Affects Your Insurance

The fact that credit history influences the chances of getting approved for a loan
is common knowledge, but most people are unaware their credit score determines how
much they pay for insurance. In many cases, insurance companies do not properly
disclose these tactics and individuals are notified after their insurance rate has
increased.

Take the example of Mathew Williams from New York. He was notified by his insurance
company that his annual premium would be increased by $628 based on his recent credit
score. Matt moved fast to check his credit report online and found his credit score
had fallen from 680 to 540, a drastic decrease. He had recently been in a car accident
and numerous unpaid medical bills were left on his credit. So not only did he eventually
have to pay these medical bills, Matt was forced to pay the higher insurance premiums.

A credit score can range between 300 (lowest) and 850 (highest). Theoretically it can
be 900 but that's rare. Credit scores ranging 600-650 are considered fair and over
700 is pretty good.

Why is an individual's credit score used by insurance companies to determine rates?
The insurance companies evaluate risk and then reward customers who are less likely to
incur losses with lower premiums. The best way to do this is by using the credit scores
reported by the credit unions to determine if the applicant is responsible. It is
important to realize your credit score affects the cost of your insurance premiums.
Insurance companies are looking at the credit report to measure insurance risk rather
than credit-worthiness.

An insurance research firm found out that 92% of the top 100 auto insurance companies
in the country use credit data when underwriting new policies. These factors which are
considered by insurance companies that are relevant to calculating risk include,
bankruptcies, judgments, collections and delinquencies. The different number and the
types of credit accounts a customer has and the length of account history are also
considered. Insurance companies say that credit scores are justified to correlate a
low credit score with increased risk. According to studies, people who fail to pay
their bills are more likely to file a claim.

Today, more than 90% percent of auto insurance companies nationwide use credit scores
as a means of deciding rates. A large number of home insurance companies are slated
to follow the same standard. Currently, California and Maryland are the only states
that prohibit credit-based insurance scoring.

The laws and regulations that govern insurance are decided at the state level. This
means that your place of residence actually determines what information companies
gather and how they can use it, to assess insurance risk. It is important to be
focused on removing the negative points from your credit report to increase chances
of receiving lower insurance rates. Insurance Policyholders are classified as
preferred, average or high-risk. This classification has a considerable impact on
what rate an insurance company charges you.

Is PIP Necessary When You Have Health Insurance?

Personal injury protection, or PIP as it’s commonly known, is a type of auto insurance that covers everyone in your car in case you are involved in a vehicle-related accident. Some also would call PIP “no fault” insurance because it pays benefits such as required medical care regardless of who is to blame for the accident.

The question that often comes up is whether a person with health insurance also needs to have PIP. Consider:

- Health insurance companies many times will want you to reimburse them if you receive money from another insurer in a personal injury settlement stemming from the accident.

- Health insurance typically doesn’t cover such expenses as wages that a person loses because of the vehicle accident. PIP provides such coverage.

- The deductible on health insurance may be costly. PIP, however, requires no deductible. It pays all needed and reasonable medical expenses as long as they don’t exceed the value of the policy.

Some drivers already may have PIP. In that case, check what its monetary limits are and weigh whether they are enough to cover medical care you may need. In any case, an auto insurance agent can answer questions related to this.

What happens if you are in an accident that is not your fault? The liability coverage that is part of the policy carried by the driver who’s at fault should cover any damages you may suffer. It doesn’t matter whether you have or don’t have PIP. But what if the driver who caused the accident doesn’t have liability protection for some or any of the medical care you need? This is probably why you should have a PIP policy. That way you get the care that you must have without worrying about how the medical care bills will be paid. And it doesn’t have to be a costly policy. Coverage worth at least $10,000 is not too expensive to purchase, especially when it comes to your peace of mind.

Even if you don’t actually buy PIP coverage, sometimes you still can use its benefits. Say you’re in accident while in someone else’s vehicle and it is covered by PIP. By being in the vehicle, you should be able to make a claim to cover any medical benefits that you may need after a wreck or other mishap. Another example is if you’re in accident while driving in a state that requires drivers to have PIP coverage. Your policy automatically should provide benefits that meet the minimum limits in that state.

Since the benefits of PIP seem to be handy in a variety of scenarios, it’s better to have PIP in addition to your regular health insurance. For the relatively small price of the policy, the fear of not having protection after an auto accident is eliminated.

What Types of Damage Does Full Coverage Insurance Cover?

You will be faced with many options while you are looking for car insurance. You will certainly have many questions and concerns that can be answered by doing the proper research. Not only will you have to learn all you can about the many different car insurance companies there are out there but you will also have to learn about the different types of car insurance coverage that is available to you. You will want to familiarize yourself with the terms and options available to you so that you can make the best decision. The most common types of car insurance coverage you will see are Personal Liability, No Fault and Full Coverage. It will be up to you to decide on the type of coverage you feel best meet your needs.

When you see the term full coverage this coverage will most likely cover property damage and bodily injuries for everyone that is involved in the accident. You may also hear full coverage car insurance referred to as comprehensive coverage, collision coverage or physical damage. This type of coverage will cover almost any type of damage that may be sustained from an accident involving an automobile or not. Full coverage car insurance will also cover damage sustained from theft, fire, windstorms, vandalism and even hail. However there may be some things that your particular car insurance company may exclude. Some of the things they may exclude can be the theft of mobile radios, cd players, radar detectors, camper trailers or any other items that may not have been permanently installed into the car. You should be sure to ask your car insurance representative what items are included in your full coverage so that you can know which items you will have to insure on your own.

When it comes to car insurance that will protect you from a huge financial loss Full Coverage car insurance most certainly gives you that protection. It provides enough coverage in the case of an unfortunate accident so that you won’t have to come out pocket with a hefty amount of money that you are unable to afford. When looking for the appropriate car insurance you should definitely do the proper research on the car insurance company as well as the policies they are offering. Alongside full coverage insurance you may also want to consider getting Uninsured motorist bodily injury. This type of car insurance coverage protects you in the case you are involved in a car accident with a person who doesn’t have car insurance or is under insured. It is usually not included in Full Coverage car insurance but can be added on to your car insurance policy. With Full Coverage car insurance and Uninsured motorist coverage you are pretty much covered from every angle however you do want to consult with your car insurance representative and ask all of the questions you may have so that you know what is covered and what is not as each type of coverage may vary depending on the car insurance company you are using.

When You Should Switch From Full Coverage to Liability

When you are choosing car insurance, it can be confusing and even overwhelming. There may be many options and terms that you are unfamiliar with. You can understand car insurance a little better by familiarizing yourself with two major types of coverage. They are Full Coverage and Liability.

Full Coverage Insurance

You may hear a lot of car insurance companies recommending that you get Full Coverage car insurance. This can be very beneficial depending on your situation. Full coverage insurance covers your car if you are in an accident. Whether it was your fault or the other driver’s fault doesn’t matter. Your car will be covered. There are two parts two full coverage car insurance. One is Comprehensive Insurance and the other one is Collision Insurance. Comprehensive Insurance covers you if damage is caused to your vehicle by anything else but another vehicle. Collision Insurance covers you if you are hit by another vehicle whether it was your fault or not.

If you are still paying on your automobile Full Coverage may be the best option for you. Also if you are purchasing a new vehicle, your finance company will require that you get Full Coverage car insurance in order to keep the loan. If you happen to be finished paying for your vehicle and are a safe driver you may want to consider Liability insurance. However, if you have a teenager who will be driving your car or a person older than 75 driving your car, you may want to keep Full Coverage car insurance on your car.

Liability Coverage Insurance

This type of insurance only covers you and any damage you’ve have done to the other vehicle. If you were to get into an accident and it was your fault, Liability Coverage will cover the driver of the other car, any property you may have damaged and the driver. It will not cover the cost of your car. Therefore, if you choose this type of insurance it is best that you feel confident in the safety of your driving and are finished paying for your car.

If you are trying to decide whether switching from Full Coverage car insurance to Liability car insurance is right for you, you should ask yourself a few questions. Am I OK with replacing my car by myself if someone hits me and doesn’t have insurance? If any thing else happens to my car, such as fire, am I able to pay for another car? Am I confident in my driving skills? These questions will help you confidently choose the right coverage for you.

Esurance and Full Coverage

Is Esurance full coverage insurance?

Yes, Esurance does offer full coverage car insurance. Esurance offers a variety of insurance products, including auto and motorcycle insurance. Traditional policies usually include collision, liability, and comprehensive coverage. Keep in mind that how complete your insurance policy is will depend on your individual needs. For example, full coverage for you might not entail medical payments coverage because you already have a quality health insurance plan. Similarly, if you have a large amount of assets, you might require higher amounts of liability protection in order to fully protect your financial well-being.

Full Coverage vs Liability - Which Is Better

At the opposite ends of the car insurance spectrum are full coverage and liability only. In reality, there are many steps in between these polar opposites and there are even multiple levels of full coverage and liability only. However, car insurance can best be understood by first fully comprehending the differences between these two extremes.

Liability Only Car Insurance

Car insurance is regulated at the state level, and therefore, each state has its own guidelines concerning the minimum car insurance coverages that are required. One thing that is for certain, though, is that all states have laws regarding the minimum amount of liability coverage you must have in order to legally drive your vehicle. But what is liability coverage? It is insurance that covers damage you cause to other people (outside of your car) and their property.

State minimums are expressed in three parts. For example, Colorado's legal minimums are 25/50/15. The first number refers to the maximum amount your insurance company will pay for injuries sustained by a single individual, per accident; the second number refers to the maximum amount your insurer will pay for all injuries in a single accident; and the third number is the maximum amount your insurer will pay for property damage, per accident. So for Colorado, this translates into $25,000 of bodily injury coverage per victim; $50,000 of bodily injury coverage per accident; and $15,000 of property damage coverage per accident.

Keep in mind that these are the state minimums - it may be wise to carry coverage in excess of them. Keeping with the Colorado example, if you were in an accident that caused $100,000 in bodily injury damages to another motorist, your insurance would only cover the first $25,000. For the other $75,000 the injured motorist could come after you! This may or may not apply in so-called "no-fault" states, of which there are 12.

Full Coverage Car Insurance

What is known as "full coverage" is actually two forms of coverage on top of liability - comprehensive coverage and collision coverage. A motorist can elect to have comprehensive coverage without collision, but not collision without comprehensive. A car insurance policy with liability and comprehensive coverage would be something in between the legal minimum and "full coverage."

Comprehensive coverage is sometimes referred to as "other-than-collision" coverage, or OTC. Obviously, it covers damages to your vehicle that arise from something other than a collision. Examples include theft, fire, weather damage, etc., but the insurance companies confuse the issue by including accidents with animals as part of comprehensive coverage, rather than collision. The logic behind this is that comprehensive is designed to cover things that are less likely to be your fault.

Collision coverage is an optional add-on to comprehensive - although it isn't optional if you still owe money on your car! Finance companies require borrowers to carry full car insurance coverage on their vehicles.

Getting Something for Your Money - That's the Name of the Game

Too many people look at insurance as an annoying expense. In reality, it is an investment - a financial product - and it should be viewed as such. Whether you want liability only, full coverage, or something in between, you need to make sure you are not paying more than you have to for the coverage you need. The best way to ensure you're getting a good value is by comparison shopping online. In many cases, customers are able to save money while simultaneously increasing their coverage.

Car Insurance Premiums - Where Do They Go? How Insurance Companies Use Them

All states require drivers to have at least some form of minimal liability coverage, but would you want auto insurance if you didn’t have to have it? Assuming you’re sane, the answer is yes. And if you’re not, you probably shouldn’t be behind the wheel of a car to begin with.

A Popular (But Tired) Myth - Insurance Companies Are “The Bad Guys”

Auto insurance company executives are one of the few groups of people who are probably happy about higher gas prices. For one, “pain at the pump” discourages people from driving, which means fewer accidents. But more importantly, oil company CEOs have become the new “bad guys” of the business world, replacing the insurance execs.

Part of the reason that insurance companies have such a bad reputation is that there are some shady agents out there. There are even some disreputable firms, and not just the fly-by-night companies, either. But in reality, the overwhelming majority of insurance agents are good people, just like your friends and neighbors. In fact, you probably have at least one friend or neighbor who is an insurance agent. And even more so, the vast majority of the major insurance firms are solid, 100 percent ethical companies devoted to servicing the needs of their clients.

What We Have Here Is a Failure to Communicate

So where does this myth come from? Generally, from the public’s lack of understanding just what insurance is and how it works. Schools don’t teach Insurance 101, and this is to the public’s detriment. Then again, since insurance companies are hurt most by the misunderstandings and misinformation, the industry should take it upon itself to educate the public. Until then, here’s a basic primer:

Insurance is pooled risk. The financial risk posed by an auto accident - the property damage, medical bills, legal judgments for “pain and suffering,” etc. - is too great for most individuals to bear. Therefore, people voluntarily opt into insurance pools, wherein they pay an insurance company a “premium” in order to assume that risk on their behalf. This is an important thing to remember - the insurance company is taking risk off your hands, assuming responsibility for the damage you may cause while behind the wheel.

The people who are insured, technically known as “insureds,” hope that they never have to file a claim. They hope that their premiums will be “wasted,” in that sense. But they’re not really wasted - the premiums you pay go to pay for claims filed by other people in your insurance pool. By the same token, any claims you may file and are awarded come from the premiums paid by your fellow insureds.

What About the Bottom Line?

Of course, the insurance business is not a charity. In the American system of free enterprise, the insurance companies deserve to make a profit. In fact, they deserve to make as much profit as they possibly can.

Who’s looking out for you, then? Well, you should be!

The capitalist system works when you make sure that you’re an informed consumer. There are hundreds, possibly thousands of insurance companies out there competing for your business. They will give you the best deal they can because they want your premiums. What’s to stop them from not paying your claims? Think about it - a company that treated its customers poorly wouldn’t be able to survive in a competitive market place, would it? Competition not only keeps prices down, it keeps companies honest too.

The best way to look out for yourself is to review your insurance coverage at least twice a year. Use the internet as a comparison shopping tool. Make the insurance companies compete for your business, not the other way around. In this way, you are in control, and the so-called “bad guys” are at your service.

Are SUV’s harder to insure or more expensive?

Not only do they have a higher ticket price at the dealership and cost a mint to fill-up, SUV’s are also a magnet for high insurance premiums. On average, it costs 10-20 percent more to insure a SUV than a regular car.

So why the big increase?

More often than not, SUVs cause more damage to other vehicles when they are in accidents. Chances are that a goliath SUV will do some pretty hefty damage to a two-door convertible. This raises the payout rates for the insurance company, and therefore liability premiums increase.

Even if you are a safe and careful driver, SUVs have historically fared much better than their counterparts in accidents. This is not to say that a driver in an SUV is safer necessarily, but they feel safer. And this feeling of safety is exactly the reason why many drivers still choose to drive the behemoths. It is estimated that about 12% of all vehicles on US roads are Sports Utility Vehicles.

But SUVs aren’t without their own inherent dangers. While progress has been made in safety design and roll-over prevention in the past years, SUV’s still have a greater potential to flip during high-speed turns, in collisions, or when avoiding accidents. They sit higher off the ground, which means their center of gravity is less balanced and they become “top-heavy”. To the insurance company, rollover accidents are very costly in terms of vehicle repairs and personal medical expenses.

SUVs have also recently become very coveted among car thieves, costing millions of dollars in replacement claims. According to the Highway Loss Data Institute, the Cadillac Escalade was the most stolen vehicle in 2004. To replace the Escalade, an insurance company can pay upwards of $18k.

Repairs on an SUV are also quite expensive. Insurance companies will pay quite a bit of money towards body and engine work, even in the most negligible collision. This is because SUVs do not have to meet the bumper standards set by the federal government’s in terms of withstanding fender benders. Just a slight tap on the rear can cost hundreds of dollars.

The high risk factors of SUVs equate to a potential for high medical, liability, and settlement payments for the insurance company, and they must recoup those costs in the form of higher premiums.

Tips for Insuring Your Teen Driver

Money Saving Tips

Auto insurance companies often have certain stipulations that, if your teenager meets, can save you money. On average male teenagers will cost you more than a female. In order to avoid such high premiums here are some tips:

• Comparison Shopping- Don’t always settle on the insurance company you have in order to insure your teen driver. There is no law stating you and your teenager have to be with the same insurance company. If your current company offers you a discount for adding a family member then perhaps you should look into this offer. Just remember, comparison shopping is always a good decision.
• Higher Deductible- The higher your deductible the lower your premium. It may be a bit of a gamble, but if you choose a $1,000 deductible your premium could be manageable.
• Conservative Cars- Certain cars, like sedans, offer much better insurance rates than other cars. Buying your teenager a sports car will only add to your insurance nightmare, but buying them a Toyota Camry will soften your insurance blow.
• Study, Study!- If your child maintains good grades, usually over a 3.0 GPA, you can get your premium discounted by up to 15% in most cases.
• Driver’s Ed- If your teenager graduates from a driver’s education class you will most likely see a break on your premium. It is also a much quicker way to go about getting one’s drivers license.
• Out of Towner- If your college student goes to an out of state college, or some scenario in which you know they won’t be driving a car, you can take them off your policy and save a whole bunch of money.

Be a Good Parent

You are going to have to live with the high rates of teenage driving, because there is no way to avoid it. You could prevent your child from driving, but that seems like an unrealistic solution. Your best bet is to work with your child and make them a better driver so you can save money in the long run. Make sure your child limits the amount of passengers they drive around, avoids driving at night and make sure they are not texting or talking on their cell phone while driving.

Premium Increases for Teenagers & Speeding Tickets

How much would my car insurance premiums increase if I have one accident on my record and just received my first speeding ticket? I am 19 years old and have an excellent GPA.

It is impossible to quote you an exact number because your premiums depend on so many variables. Insurers all have different policies on how tickets impact premiums. While some companies have a first-ticket forgiveness policy, others will raise your rates as soon as they learn about the ticket. The fact that you are 19 and have an accident on your record means that your rate increase will probably be higher than it would for other drivers. Unfortunately, your GPA might win you a small discount with your insurer, but it will not be enough to combat the rate increases that come with accidents and moving violations. One option you might consider is attending traffic school if you can. You might be able to remove the ticket from your record, in which case your premiums would not go up.

I just got a speeding ticket. How much will this change my car insurance rates? Should I try to fight the ticket?

Every insurer will have a different policy on rate increases following a moving violation. If you have an otherwise clean driving record, some insurers might forgive your first moving violation, meaning it will not affect your rates. Similarly, you might have the option of attending traffic school to get the ticket taken off of your record, in which case it would also not impact your premiums. If you have this option, take it. Alternatively, you could go to traffic court to try to fight the ticket. When it comes to fighting traffic tickets, showing up is half the battle. Chances are, the officer who wrote you the ticket won’t show up, and even if he/she does, you have a good chance of getting the ticket reduced to a non-moving violation. A non-moving violation will cost you less money in fines and will have no impact on your insurance rates.

I Just Got My First Ticket. Will My Car Insurance Go Up?

Everybody makes mistakes. But, when it comes to driving a motor vehicle, mistakes that result in a ticket can cost you big time.

It’s important to realize that driving is not a right, it is a privilege. If you abuse the privilege, chances are you will end up with a suspended driver’s license. You’ll also end up with a lot of fines and attorney fees. In fact, some traffic infractions will land you in jail, such as drinking under the influence of drugs or alcohol or leaving the scene of an accident you were involved in.

Although each state has their own set of driving rules, most of the 50 states utilize the Department of Motor Vehicles (DMV) point system. It’s easy to find out the point system utilized in your home state. Simply visit the DMV website at www.dmv.org.

Typically one or two tickets for minor violations won’t land you in too much hot water. Depending on the violation, it may not even affect your car insurance. Things like rolling through a stop sign or expired license plates generally will not raise your insurance rates.

However, if the traffic ticket you received is due to reckless driving or leaving the scene of an accident, your car insurance might be cancelled or the premium could increase substantially.

If your state utilizes the DMV point system, it’s important to realize that points remain on your driver’s license for three years. If you incur too many violation points within a certain period of time, your car insurance rates will increase. Worse yet, you could end up losing your license altogether.

Many of the common traffic violations have a point value assigned to them. Every time you receive a ticket, the points are deducted from your license. Generally, if you accrue 12 points within 12 months, your license will be suspended for 30 days. If you accrue 18 points within 18 months, your license will be suspended for 90 days. And, 24 points within 36 months will cause you to have your license suspended for one full year.

If you receive a ticket for leaving the scene of an accident with damage, or a speeding violation that results in an accident, six points will be deducted from your license. Typically, these types of violations will result in a car insurance premium increase.

If you receive a ticket for reckless driving, running a red light, exceeding the speed limit by 16 mph or more, or attempt to pass a school bus that has stopped; four points will be deducted from your license. Typically, these types of violations will result in a car insurance premium increase as well.

If you receive a ticket for exceeding the speed limit by 15 mph or less, violating child restraint regulations, or driving with an open container; three points will be deducted from your license.

Again, these will vary depending on the state in which you reside, but this generalization should help give you an idea of how the DMV point system works.

You can’t escape having violations reported to the DMV. However, there are a few things you can do to clean your driving record up.

If you receive a traffic ticket that results in points against your license, you might be able to attend a driver improvement course. Many states offer this course online and taking it can provide multiple benefits.

Typically, these classes take four hours to complete. However, if a judge orders you to enroll in a course, you may be required to participate in a course that lasts for eight hours.

By taking the driver improvement course, you will be eligible to receive a fine reduction, which might be as much as 18 percent. Additionally, no points will be deducted from your license, nor will your car insurance rates increase. This applies only if there was no accident associated with your traffic ticket.

Obviously, it’s best to observe and obey all traffic laws and avoid getting a ticket in the first place. However, if you do obtain a ticket, by all means visit the DMV website and educate yourself about the options available.

Obama says he’ll fix AIG payout scandal

US President Obama has been trying to defuse public anger over bonus payments by the bailed out insurance giant AIG.

Billions of public funds have been poured into the ailing insurance company, but many Americans were outraged when it paid out around 120 million euros in bonuses to top officials.

Obama has cultivated an image as a crusader for change and there was this pledge from the US president:

He said: “ I’ll take responsibilty. I’m the President.”

Washington has been engulfed in a poltical feeding frenzy about who knew what and when over the payments of bonuses by corporations like AIG, bailed out with billions of public cash.

The Republicans have been demanding to know why the US Treasury did not lay down conditions about bonuses before handing over rescue money.

The (Australian) AOG Insurance Agency scandal

A Short History

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Nov. 5, 1993

On 5 November 1993, Andrew Evans and the rest of the AOG National Executive acted to terminate their contract with insurance consultant and AOG Pastor, Greg Sowerby, and also sacked two AOG Insurance Agency employees—Meredith Sowerby and Henry Sheppard. Those actions were within their rights and, had Andrew Evans and his mates simply paid out the monies owing to the people in question, they could have all gotten on with their lives. But instead, Andrew Evans and the rest of the AOG National Executive chose to withhold wages and commissions owing to those three people. They also seized control of the Independent Churches Insurance program belonging to Greg Sowerby.

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Intimidation

When Greg Sowerby attempted to go into the Church Insurance business for himself—in competition with them—the AOG National Executive began a process designed, on the one hand, to intimidate him and, on the other, to frighten away his potential customers.

False Allegations of “Fraud”

First they paid a solicitor to threaten him with unspecified legal action for speaking to “their” customers. When that didn’t work, they paid the same solicitor to lodge a complaint of “fraud” against Pastor Sowerby with the South Australian Police. Greg and Meredith Sowerby have had their home invaded by the Police, had a filing cabinet of documents relating to Greg’s Independent Churches Insurance program impounded, were interrogated for many hours on several separate occasions—both at Police Headquarters and at their home. They have been embarrassed in front of their neighbours; slandered in front of their customers; and their children have been frightened and humiliated.

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AOG National Executive lodge “Letter of complaint” against investigating police officer

The AOG National Executive made an accusation against Pastor Greg Sowerby to the South Australian police of “embezzlement” and “falsification of accounts” on 13 December 1993. That complaint went first to the Fraud Task Squad, then, on 15 March 1994, because there was no evidence of any fraud, it was passed to Detective Senior Constable Brenton Rowney of Adelaide Criminal Investigation Branch (CIB). At 6:05 pm on the same day he attended the home of Greg and Meredith Sowerby and seized the Independent Churches Insurance program files and began the difficult task of trying to sort the truth from the various allegations. But this was not good enough for Andrew Evans and the rest of the AOG National Executive, and so they paid Lewis Hutchinson, Commercial Lawyers, to lodge an official “Letter of Complaint… concerning the investigation by Det B.J. Rowney No 2781/4…” We do not know the date on which the complaint was lodged, but the detective’s written defence is dated 18 May 1994. Addressed to the “Officer in Charge, Adelaide C.I.B.”, it occupies thirteen pages. According to Detective Chief Inspector Peter Graham (formerly of Adelaide CIB), there were two complaints made against the officer—first that he was “procrastinating”, and second, that he had adopted “a conciliatory rather than an investigative role” in handling the case. The question to be answered is, Why did the Executive place such pressure (with its implied threat to his career) on the police officer? Were they hoping to impress on the officer the true nature of Christian forgiveness and thus win the man to Christ? Or were they trying to pressure him into hastily laying criminal charges against Pastor Greg Sowerby, thereby vindicating their slanderous actions?

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AOG’s accusations demolished

The report by Detective Senior Constable Brenton J. Rowney is far too long to reproduce in full. But it contains a number of statements that completely demolish the AOG’s accusations against Greg Sowerby. For example: Contrary to the statement by the Executive’s solicitor on 22 December 1993, that “you were not permitted to sell insurance apart from personal contacts of your own”, the detective states: “There is no directive to prevent Sowerby from selling his own I.M.S. insurance Non A.O.G. policies as opposed to selling A.O.G. policies. Sowerby was allowed to run his own business as a side issue by Nation(al) Executive of A.O.G.” The Executive have made much of some comments by individuals employed at ANSVAR. But the detective made the following comment: “There is correspondence from Ansvar that stated they believed the profits from the business between Sowerby and Ansvar was to benefit A.O.G. Churches and not Sowerby. There is no available documentation to support this allegation.” And on the subject of who the Independent Churches Insurance program belonged to: “The original application that is made to Ansvar to open the agency is made in the name of G.M. & M.A. Sowerby (Insurance Management Services). There is no other documentation other than the original application.” And again: “There is no documentary evidence to support any claims made by Ansvar, in fact the only documentary evidence supports an agreement between Ansvar and G.M. and M.A. Sowerby (Insurance Management Services).”

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No charges to answer…

After an exhaustive investigation that lasted almost a year—and which included numerous direct requests to various members of the AOG National Executive (including Andrew Evans) to provide evidence to back up their accusations—the South Australian Police completed a report which showed that Pastor Greg Sowerby had no questions to answer. The various accusations made against him by a group of professional religious leaders had no basis in fact. The investigating Police Officer made a comment in the report that: “I have doubts as to the quality of any witness within the AOG Insurance Fund”. The files which had been seized by the Police were returned to their rightful owner—Greg Sowerby. [ Read the Police Report for yourself. ]

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Andrew Evans refuses to speak to the detective Chief Inspector

On 13 December 1994, Greg and Meredith Sowerby and myself met with AOG National Executive members Brian Houston and Steve Penny at the Adelaide Airport. The meeting was marred by several attempts at verbal intimidation by the two National Executive members. But the worst aspect of the meeting was their total denial of the AOG National Executive’s actions in paying a solicitor to lodge an official complaint against Detective Brenton Rowney. (Apparently the Executive resented the fact that the police had spent some of their time clearing up cases involving rape, murder and robbery, rather than focusing exclusively on their trumped-up charges—charges which were unsupported by any evidence.) On the next day, Greg spoke by phone to Detective Chief Inspector Peter Graham and repeated the denials of the Executive members. The Inspector offered to speak to any National Executive member who would ring him. He would read out the exact details of the charges and who laid them. Greg informed the Executive of this opportunity for them all to obtain the facts, only to be greeted by a deafening silence. The National Executive members, Andrew Evans most noticeably, already knew all they wanted to about this cowardly attempt to hurt Pastor Greg Sowerby by casually damaging the career of an innocent policeman.

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“Reconcilation”

In early November 1996, after three full years of intimidation, humiliation and torment, Pastor Greg Sowerby finally bowed to the financial pressures being exerted on his surviving business and signed a piece of paper drafted by the AOG National executive. Since that time, Andrew Evans has been trumpeting that he has achieved “reconcilation” with his victims. But ask yourself this question: If, after many years of faithful service to your church, you were sacked, had your business stolen, were falsely accused to the Police, suffered an intense twelve month Police investigation, were defamed nationally in front of your colleagues, and then were suddenly “reconciled”, what would you expect to see happen? —Would you expect to be offered your old job back? —Would you expect to have your business returned to you? —Would you expect to receive a public apology? —Would you expect to have the Police Report showing that there were no charges to answer published by your now reconciled enemies? —Would you expect to receive compensation for your losses? —Would you expect to see the many AOG churches who deserted your Fuelcard business (only to have those churches pay a higher price for fuel) return? You would probably expect all of those and possibly more. What has Greg Sowerby received from the AOG National Executive since being “reconciled” with them? Not only has Greg received none of those things, but the AOG National Executive is spending many tens of thousands of dollars to sue him in the Federal Court. They have been able to use economic duress to force Greg into signing a worthless piece of paper with the word “Reconcilation” on it, for their own propaganda purposes. But there is no more reconciliation today than there was on 22 June 1996, when they commenced that legal action against him. The advantage of arranging purely cosmetic “reconcilations” is that they can keep gullible AOG pastors quiet, without paying any of their debts