5 Car Insurance Tips

How much you pay for auto insurance depends o­n several factors, including your age and marital status, where you live, and what you drive. You can't do anything about your age, and few people will move just to lower their insurance premium. You can, however, choose a vehicle that costs less to insure.

In this article, we'll give you all of the helpful tips you need when getting car insurance.

1. Know Your Coverage Types

What is your car insurance actually insuring? Although you're buying a single insurance policy covering a specific vehicle, a number of components make up the final cost:

• Bodily injury liability: Covers injury and death claims against you, and legal costs, if your car injures or kills someone.



• Property damage liability: Covers claims for property that your car damages in an accident. Because liability coverage protects the other party, it is required in all but three states.



• Medical payments: Pays for injuries to yourself and to occupants of your car. This is optional in some states. In "no-fault" states, personal injury protection replaces medical payments as part of the basic coverage.



• Uninsured motorist protection: Covers injuries caused to you or the occupants of your car by uninsured or hit-and-run drivers. "Under-insured" coverage also is available, to cover claims you may make against a driver who has inadequate insurance. In some states, as many as 30 percent of drivers are uninsured.



• Collision coverage: Covers damage to your car up to its book value. Collision coverage carries a deductible, which is the amount per claim you have to pay before the insurance takes effect. The lower the deductible, the higher the premium. While it is legally optional, a lending institution or leasing company usually requires collision coverage.



• Comprehensive (physical damage): Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible.

2. Your Vehicle Affects Your Premium

­Y­ou might want a sports car or a fancy SUV, but your insurance company may charge you more to protect you while driving it.

Insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or "totaled" in an accident. How expensive the vehicle is to repair -- including parts and labor -- can also affect the cost. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents.

Industry-wide information on injury claims, collision repair costs, and theft rates by vehicle model is available from the Highway Loss Data Institute (HLDI). You can write them at 1005 North Glebe Road, Arlington, VA 22201. HLDI is affiliated with the Insurance Institute for Highway Safety (IIHS).

According to HLDI, the lowest injury claims are from large vehicles -- cars, pickup trucks, and sport-utility vehicles. Small 2- and 4-door cars have the highest injury claims. Small cars also are among the highest in collision costs, along with sports cars.

If you have your heart set on a sporty vehicle, you'll probably pay dearly. Insuring a high-performance car can easily cost two or three times the insurance amount for an ordinary model.

Sport-utility vehicles, the hottest market segment, often have higher insurance rates than mid- and full-size cars, but some SUV models are relatively cheap to insure. SUVs are "hot" for other reasons: They are among the most frequently stolen vehicles, and they are more expensive than most cars. Cadillac's Escalade is currently the most popular model sought by thieves, but it's followed by the Nissan Maxima sedan. SUVs also can cost more to fix after an accident if the 4-wheel-drive system is damaged.

However, insurance companies set rates based on their own experience. If Company A has more collision and theft claims for a particular vehicle than Company B, then A will charge more for the same coverage. It all boils down to a company's actual experience with a particular vehicle or category of drivers. That is why it pays to shop around for insurance.

3. Who You Are Affects Your Premium

Factors that you can least control may have the greatest impact on your insurance costs. Your age, gender, and driving record are key factors that affect your insurance premium.

Single males under the age of 25 pay the highest rates. Statistics show they are involved in the most accidents, so insurance companies charge young men higher premiums than women of the same age. Married men, who statistically have fewer accidents, pay less than single men. A handful of states do not allow rates based on sex or age, but that prohibition has tended to result in higher rates for women, not lower rates for men.

If you are convicted of moving traffic violations or of causing an accident, your premiums will likely go up, no matter what your age. Drivers with clean records -- no tickets, no accidents -- pay the lowest rates.

Where you live also plays a big role in how much you pay. Urban areas, with their greater population densities and heavier traffic, get higher rates than rural areas. According to the Insurance Information Institute, the average insurance expenditure in mainly urban New Jersey -- traditionally the most expensive state -- in 2002 was more than double that of North Dakota, a rural state with the lowest average premiums. High costs in states such as Florida, Massachusetts and New York are attributed to growth in fraud and theft.

In most states, too, insurers set rates by zip codes. If you live in a major city like Chicago or Los Angeles, you will probably pay more than if you lived in a nearby suburb.

4. Decide How Much Coverage You Need

While it is dangerous to be underinsured, having too much insurance can be an expensive mistake as well. Without insurance, your property is put at risk in an accident that is your fault. The minimum amount of insurance required in your state is seldom enough.

State law may require as little liability coverage as $15,000 per person, $30,000 per accident, and $5000 property damage. About half of the states require $25,000 per person and $50,000 per accident. Half of them require $10,000 in property damage coverage. If you can afford it, buy more than the minimum. After all, $10,000 for property damage may not be enough if you hit a $100,000 Mercedes-Benz.

The more assets and income you have, the more insurance you need. Most insurers recommend liability coverage of at least $100,000 per person, $300,000 per accident, and $50,000 property damage if you have assets to protect, such as a house. Some insurers also recommend a $1 million "personal liability umbrella" policy issued in conjunction with homeowner's coverage. State Farm reports that such coverage averages $270 a year, but the amount varies significantly depending on location and other factors. An "umbrella" policy could protect a family from financial ruin in a major lawsuit.

Like buying a car, there is no single best solution when it comes to buying insurance. Rates vary widely. Surveys suggest that you could pay anywhere from $500 to $2000 annually for the same coverage from different companies. Shop for insurance by consulting two or three of the largest insurers, such as State Farm and Allstate. Then, contact one or two independent agents who can quote premiums from more than one company. In addition, there are direct-marketing companies, such as GEICO and Progressive, which do business over the phone rather than through agents and offer some of the lowest rates. Ask for an itemized list of coverages and costs.

"We're price-competitive," said spokesperson Dick Luedke of State Farm, whose rates dropped somewhat during 2004. But with so many factors involved in setting rates, it's wise to check several prospects.

In 2004, the average price of auto insurance nationwide was $871, according to the Insurance Information Institute. They expected that the cost of auto insurance would rise by 3.5 percent in 2004, which would be the smallest increase in four years.

Don't forget the Internet. Many companies now offer online quotes, and insurance shopping on the Web allows you to compare rates from multiple providers in the comfort of your own home.

5. You Can Reduce Your Premiums

­The biggest difference you can make is to buy a vehicle that qualifies for a discount or at least doesn't carry a surcharge. Ask your insurance agent about the cost of insuring vehicles you are interested in before you make your purchase decision. Here are several other ways that you can save money on your car insurance:

• Most companies give a break to those who drive less than 7500 miles a year. If you take public transportation instead of driving to work, your premium will go down. Out of the question? Try carpooling.



• Make sure you get all the discounts you are entitled to. You might qualify if your vehicle has an alarm, for example. Discounts used to be given for such safety features as airbags, but they're fading away as those items become more commonplace. Discounts might also be available if you insure your vehicles and your home with the same company. People who pass a defensive-driving course or don't smoke or drink often get discounts.



• Review the status of all the drivers in your family with your agent. Most discounts apply only to one portion of the policy, so don't expect dramatic savings.



• Increase your deductible for collision and comprehensive. Switching from a $100 deductible to $1000 can reduce the collision portion of your premium by 30 percent, said Luedke. You'll still be covered for catastrophes, but you foot the bill for fender-benders. Also, think twice about filing small claims with your insurance: Why risk a premium increase?



• Shop around. Instead of just renewing, study the fine print of your policy to see if its terms -- or your situation -- have changed. Another company might have better rates, but you won't know unless you shop. Most insurers give rates over the phone and many via online computer services, making it easy to compare premiums.



• Drop collision coverage on older cars. Claims are limited to "book" value, so you're not likely to get much anyway if you car is more than seven years old. A good rule of thumb is to drop collision when the annual premium reaches 10 percent of your car's value.



• Be a good driver. Avoid accidents and traffic violations and you will be rewarded with good-driver discounts. Bad driving is expensive. The "safer you can be" on the road, Luedke said, "the lower your premiums."



• Drop coverage for such extras as towing costs or the expense of renting a car while yours is in the shop. The savings are probably small, but your new-car warranty's roadside assistance provision may provide them at no cost.



• Have your teenager share the family car instead of owning his or her own. Be sure to tell your agent if your son or daughter makes the honor roll or moves away to college. Both qualify for discounts with most companies.



• If your group health insurance provides generous coverage, consider dropping the medical-payments portion of your policy.



• Keep your credit rating healthy. A growing number of insurers are considering a person's credit score when setting rates.

Source

Autoinsurance.com: Usage-Based Auto Insurance Race Heating Up

Los Angeles, CA (PRWEB) July 20, 2012
Sprint announced Thursday that it is offering a trial run for use of its technology suite to insurers seeking to establish usage-based insurance (UBI) programs, further complicating an already crowded fight among auto insurers who are capitalizing on an increasingly popular coverage option, according to autoinsurance.com.
Sprint’s Integrated Insurance Solutions(IIS) employs a “cloud-based system” that collects driver data that can be analyzed by auto insurance companies for rating purposes and presented to policyholders so that they can review their habits on the road. The system utilizes the telecommunications giant’s nationwide 3G network to transmit the data.
Sprint is offering IIS as a three-month “jump start” program to all insurers.
The offering is the latest in the arena of UBI, which bases coverage rates on a motorist’s habits behind the wheel and other driving data. For example, frequent hard braking can run up costs, while the opposite can lead to discounts.
IIS technology was tested in a pilot program in Arizona through a partnership with Esurance,accor ding to a Sprint statement.
Esurance recently launched its first UBI program in Texas “based on the success of that program,” adding yet another player in the race between insurers for the most-effective UBI program.
The company's offering a fully established network for driver monitoring could make it much easier for more insurers to offer usage-based discounts. Progressive already has its usage-based program, which it developed on its own, available in about 80 percent of the country.
Last week, Progressive announced that its UBI program, called Snapshot, would be open to policyholders at competing insurers as a one-month trial. Participants who test-run the program will be able to review their possible coverage savings before deciding if they want to switch insurers.
Progressive’s Snapshot has long been the largest UBI program in the market but has since seen competitors’ offerings edge into its territory.
In May, State Farm announced a partnership with Ford in which cars equipped with the automaker’s SYNC connectivity systems will be able to enroll in its UBI program. Under the partnership, such vehicles will be ready to participate in State Farm's Drive Safe & Save upon purchase.
The burgeoning UBI market has also produced some nasty competition. The Hartford and State Farm are currently facing a lawsuit brought by Progressive, which alleges that it is "suffering from the effects" of patent infringement.
Copyright:(c) 2012 PRWEB.COM Newswire

Source

Replacing Misguided Health Care Law Begins with Repeal

Last week, the House voted on a bipartisan basis to repeal President Obama's misguided health care law. I voted in favor of repealing the law for five reasons.

First, it increases the cost of care. The non-partisan Congressional Budget Office found that the law will actually increase health insurance premiums for families by $2,100, in direct contrast to the President's campaign trail promise that his plan would reduce premiums by $2,500.

Second, it would cause twenty million Americans to lose their employer-sponsored health insurance according to the non-partisan Congressional Budget Office. The Obama Administration's own Department of Health and Human Services estimates that 80 percent of small businesses and 64 percent of large businesses will discontinue offering health insurance to their employees.

Third, it interferes in the doctor-patient relationship. The law creates 159 new boards, offices, and panels within the federal government to make health care decisions for individuals.

Fourth, it piles more debt on our children and grandchildren. At a time when we already borrow 40 cents on every dollar the government spends, the law would add another $1.8 trillion over the next decade. We do not have the money.

Fifth, it is a job killer. The Congressional Budget Office estimates that nearly 800,000 jobs will be lost because of Obamacare. As last week's jobs report made clear, we cannot afford to further erode the employment situation.

While I remain committed to repealing this misguided law, we must work to reform the underlying problems in our health care system. As opposed to the divisive politics and underhanded tactics used to enact it, we should come together and put our best ideas forward to replace the law.

To this end, I have cosponsored reforms that would:

Enact Medical Liability Reform

Sensible tort reforms would cut back on unnecessary tests and procedures that are only ordered to defend against frivolous lawsuits, saving patients time and irritation while saving all of us money.

Allow Interstate Competition for Health Insurance

Allowing Americans to buy the same plans available to residents of other states would increase competition and help reduce costs while providing more choice.

Source: http://insurancenewsnet.com/article.aspx?id=350541

Man admits damaging homes, collecting insurance money to fix them

One of two men charged with damaging homes throughout Lehigh County to make it appear that hail was the culprit, then making repairs and getting paid through the homeowners' insurance, has pleaded guilty.

Dominik Sadowski, 35, on Tuesday pleaded guilty to conspiracy to commit insurance fraud, a felony.


Lehigh County Judge Douglas G. Reichley sentenced him to four years of probation. Sadowski must also pay a $2,000 fine and $14,500 in restitution within two years.


Sadowski, who used to have a Sellersville address but now lists Hypoluxo, Fla., as his home, was charged with similar crimes in New Jersey. He was sentenced there Wednesday, receiving 100 hours of community service and four years' probation.


Sadowski's codefendant, Marcin Porzkowski, 36, of Quakertown, failed to show up for a preliminary hearing after his arrest and remains at large, authorities say.


An investigation determined that more than 100 homes may have been intentionally damaged in the scheme, police say.


According to court papers:
The Lehigh County Auto Theft and Insurance Fraud Task Force said it received numerous complaints from homeowners, insurance companies and contractors since April 2009 about shady business practices from a company that was soliciting repair work to supposedly hail-damaged homes.


Homeowners said they were unaware their homes had been damaged by storms until representatives from Precision Builders came unannounced and told them they had damage and could repair the work, which would be paid for by their insurance company.


Precision Builders also told the homeowners it would pay any deductible if homeowners advertised the business by placing a sign on their front yard.


Investigators conducted surveillance at homes in Lower Macungie and Salisbury townships and found that home inspectors for Precision Builders were using a screwdriver handle wrapped in duct tape and their knuckles to cause the damage.


Further investigation determined that Porzkowski and Sadowski instructed inspectors on how to cause damage to make it appear as though it had been caused by hail.


Later, insurance company adjusters told detectives the damage was inconsistent with hail.
Detectives said Precision Builders hired Eastern Contracting, Porzkowski's company, to do the repair work on homes. Sadowski was an inspector for the company.


Porzkowski and Sadowski were each charged with two counts of corrupt organizations, insurance fraud, criminal mischief and theft by deception.


Source: http://insurancenewsnet.com/article.aspx?id=345345&type=newswires

Pennsylvania DCED Announces Website Offering New Digital Flood Insurance Rate Maps

To help residents and businesses to be better prepared for the risk of flooding, the Department of Community and Economic Development  has launched a website containing the new Digital Flood Insurance Rate Maps established by the Federal Emergency Management Agency (FEMA).   

"Having up-to-date, digital access to Flood Insurance Rate Maps is a critical tool for homeowners and businesses when preparing for flood-related emergencies," said Department of Community and Economic Development Secretary C. Alan Walker.   "Residents and local businesses can use the maps to determine if they are located in a floodplain and community officials can access the information to effectively create floodplain-management strategies to ensure public safety."        


The new website, www.pafloodmaps.com, contains a digital version of FEMA's floodplain maps which were established to designate specific areas that are special hazards or risk premium zones in order to determine whether flood insurance is required.
The site provides information to municipal officials, residents, and insurance agencies and brokers. It also alerts users to the potential risks and responsibilities associated with being located in a floodplain. 


The website also features an interactive risk-identification tool that allows users to enter an address and access information relating to that property. Users will also be able to determine if a property is in a floodplain, specific building code regulations that pertain to a property, and if there is a mandatory flood insurance requirement for that address.
The Governor's Center for Local Government Services (GCLGS), housed within DCED, provides technical resources and assistance for companies considering merger, consolidation and regional efforts. The center also serves as a resource for local government officials, developers, and citizens interested in planning to improve, grow and enhance communities.


Source; http://www.therepublic.com/view/story/747e08fc417143099e14944317fb466a/OR--Chemical-Spill

Summer Travel, Entertaining can Bring Special Insurance Concerns

HARRISBURG, Pa., June 1, 2012 /PRNewswire-USNewswire/ -- The Pennsylvania Insurance Department is reminding consumers to keep insurance needs in mind when vacationing, entertaining or enjoying other warm-weather activities.
For your home and property:

• Installing a pool, or already have one? Pools increase your liability risk so you will need to bring your homeowners policy up-to-date. Most policies include a minimum of $100,000 worth of liability protection, but pool owners may want to consider increasing the coverage amount to at least $300,000 to $500,000. 

Having a yard sale? Your homeowners and renter's insurance policies may provide liability protection to cover you against lawsuits if someone is injured or items are damaged on your property, but read your policy to be sure.
Taking an extended vacation? Insurance companies may consider unoccupied homes as high risk because they are at increased risk of theft, vandalism, fire, and water damage. Check with your insurance company before you leave for a long trip.

• Hosting a party? Consumers should look into a social host liability policy, which covers claims arising from injuries that may occur in your home. Policies can be purchased for limits ranging from $50,000 to $2 million.
  

For your means of travel:

• Renting a car? Your declarations page should state whether the coverage and deductibles you have on your own car apply to a rental vehicle. If it does not, consider buying the rental car insurance coverage offered by the agency.  
• Do you own a boat or a jet ski? If you own a personal watercraft, it is wise to purchase insurance coverage that includes bodily injury, property damage, liability and theft. If renting any type of watercraft, be sure to ask what type of insurance coverage the owner or operator has.
  

For your health and belongings:
Some insurance coverage does travel.

• Traveling away from home? Depending on your location and medical condition, you will want to check with your health insurance company to find out what type of coverage you have when you travel. Be sure to carry your insurance card with you.  

Items stolen while on vacation? In most cases, your homeowners policy will cover your personal property anywhere in the world, less your deductible.  Be sure to read your policy for dollar limits on items such as jewelry, firearms and silverware.
Need to insure your trip? Some insurance companies offer bundled packages of travel insurance that cover problems like identity theft, delayed or lost baggage, cancellation or medical issues. But just like any other type of policy, be sure to review it thoroughly because not all policies are the same.

• If you chose to insure your trip, be sure you are purchasing travel insurance and not cancellation waivers. Waivers are not insurance and are not regulated by the Insurance Department.
  

Visit the Pennsylvania Insurance Department online at www.insurance.state.pa.us.
Media contacts: Rosanne Placey or Melissa Fox, 717-787-3289
SOURCE Pennsylvania Department of Insurance
Source: PR Newswire (http://s.tt/1dawZ)

Which Car Insurance Is Best for Your Business?

If you run a business, you know insurance is important. Especially if part of your company's services requires putting employees behind the wheel. But  what should you look for when it comes to choosing a car insurance plan?

This is one choice you don't want to speed through. While commercial auto insurance premiums can often be more expensive, they can save you money in the long run.

Here are some questions you should consider when shopping for a policy for your business.

What kind of cars will be covered?
Depending on your company's business model you may or may not own the cars being driven by your employees. Regardless, if your workers are driving for your company, you'll want to make sure any vehicles they're operating are protected in case of an accident.
>Many companies offer "hired or non-owned" car insurance options. These additions can cover any vehicle operated by employees, regardless of ownership. It can even include protection for rented cars.

Do you need a personal or commercial policy?
As mentioned earlier, commercial insurance is generally much more expensive. However, it's not always required for a business. If your name is on a car's title, than you have to get personal insurance. However, if your company is listed as the vehicle's owner, than a commercial policy is required.
But just because you can get away with a cheaper personal policy, doing so might not be the best choice. Some features, like business interruption coverage, are only available under commercial policies. That particular option is important if your driver is injured on the job. It can allow you to recoup lost income while your employee is recovering.

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