10 Ways to Lower the Cost of Driving

From saving gas to lowering the cost of routine maintenance, a few simple habits keep costs in check.

For most Americans, driving is a necessity of life. But as budgets tighten and fuel prices fluctuate, many people are looking for ways to trim the price of driving. When buying a car, opting for a used vehicle can cut the cost of ownership from the very first day. The price is normally thousands less than for the same car new. In addition, a lower price means less sales tax, less money to finance the purchase, and a lower premium on any collision and comprehensive insurance. To get the best fuel economy, choosing a four-cylinder engine rather than a V6, or a V6 rather than a V8, is usually the way to go. Likewise, small, light cars tend to be more miserly with fuel than are larger vehicles. To compare specific models, go to the Environmental Protection Agency's web site at www.fueleconomy.gov. Once you've bought a vehicle, you can still go farther for less money if you follow a few common-sense practices. To aid your efforts, keep a notebook in the car, and for a few months write down everything you spend on driving--fuel, maintenance, tolls, and parking. Knowing where the money goes is the best guide to finding significant places to save. Here are some other tips.

NO LOITERING

Think of it this way: while idling, your car is getting zero miles per gallon (mpg). Don't let the engine run at idle for any longer than necessary. After starting the car in the morning, begin driving right away; don't let it sit and "warm up" for several minutes. An engine actually warms up faster while driving. With most gasoline engines, it's more efficient to turn off the engine rather than idle for 30 seconds or longer. Think about going into a fast-food restaurant rather than waiting in a long line for the drive-through window.

EASY DOES IT

Driving smoothly and steadily makes the best use of your fuel. If you can, avoid hard acceleration or braking. When you move out from a standstill, bring the car up to speed briskly but not abruptly. You want to get up to cruising speed without straining, and then stay there. Once up to speed, maintain a steady pace in top gear. Varying your speed a lot wastes fuel. According to the EPA, the most fuel-efficient speeds are between about 25 and 60 mph. Smooth acceleration, cornering, and braking not only save fuel, but extend the life of the engine, transmission, and brakes.

DON'T BE A DRAG

At highway speeds, over 50 percent of engine power goes to overcoming aerodynamic drag. Try not to add to the drag by carrying things on top of your vehicle. A loaded roof rack can decrease a car's fuel economy by 5 percent. Even driving with empty ski racks wastes gas. In addition, if you have air conditioning, don't ride with your windows open on the highway; this also disturbs the outside airflow and creates extra drag.

STAY WARM

An engine runs most inefficiently when it's cold. It not only uses more fuel during this period, but also creates the dirtiest emissions and suffers the most wear. Avoid lots of short, separate trips--and unnecessary cold starts--by combining as many errands as possible into one trip.

GETTING REGULAR

If your car specifies regular fuel, don't buy premium in the mistaken belief that your engine will run better. Using premium fuel in those circumstances is like buying bigger sneakers in the hope they'll help you run faster. Most cars are designed to run just fine on regular gasoline. Furthermore, many cars that recommend premium fuel also run well on regular. You can check with your dealership as to whether your engine is designed to handle either grade. If so, try a tankful or two of regular. If you see no difference in mileage or engine performance, stick with it.

BUY BARGIN FUEL AND OIL

Off-brand gasoline is most often identical to what is sold at franchised gas stations. Shop for the cheapest. Likewise, look for promotional sales at quick-lube shops. Just make sure the shop uses the correct service-grade and viscosity oil for your car. Following your car's recommended oil-change intervals is sufficient, which for most cars driven under normal conditions is 7,500 miles. While oil companies and lube shops may recommend changing oil every 3,000 miles, this can be an unnecessary expense. You can change the oil yourself-typically for $10 or so for oil and a filter. But since a commercial oil change routinely costs $20 or so, you have to weigh whether the savings is worth the time and effort, plus the hassle of safely disposing of your used oil.

STAY TUNED

The EPA mileage that's posted on new-car window stickers is based on a well-tuned and properly maintained vehicle. Running a car in subpar condition can lower that figure dramatically. A poorly tuned engine can cut gas mileage by 10 to 20 percent. Modern electronically controlled engines don't need the frequent and extensive tune-ups of older cars, but they still need regular maintenance and suffer component failures. A clogged air filter alone can cause up to a 10 percent increase in fuel consumption. Be sure to follow the maintenance schedule in your owner's manual, and act promptly if you sense any unusual sounds, smells, or vibration. . Dealership service departments tend to have the most up-to-date tools, equipment, and experience with your car, so they're the places to go if the problem is a real puzzle. But any good mechanic can perform routine service and repair, and independent shops or service stations are often cheaper than using the service department at a dealership.

ROUTINE ISN'T ALWAYS THE SAME

Before you have routine maintenance performed on your vehicle, call around for the best price. Even different dealerships of the same brand can charge varying amounts for the same service interval. Routine maintenance can also be done by independent shops, which are generally less expensive than dealerships. Just keep good records in case you later have a warranty claim. Check in your owner's manual to make sure that the price includes all necessary service, but doesn't add in unnecessary extras. If you're handy, you can also do simple maintenance yourself; just keep all receipts as proof of what parts or fluids were used and when.

WATCH THE TIRES

Keep your tires properly inflated. Underinflated tires require more energy to roll, which not only wastes fuel but wears the tires faster. According to the EPA, one tire that's underinflated by only two psi will result in a 1 percent increase in fuel consumption. Underinflated tires can also build up excess heat, which can lead to tire failure. Check tire pressures monthly when the tires are cold. The recommended tire pressures are found on a label inside the car--usually in a doorjamb or inside the glove-box lid.

SHOP FOR INSURANCE

Some insurers charge twice as much as others for the same customer and car. Using the Internet or the Yellow Pages, shop around for the best insurance-rate quotes you can find. You should carry ample liability insurance, but you don't need to splurge much on collision and comprehensive if your car is getting on in years. Once collision and comprehensive premiums reach 10 percent of the car's book value, consider dropping them. Also raise your deductibles to the highest limit you are comfortable with: say $500 or $1,000. Recheck the insurance market for competitive rates every year or two.

Copyright © 2002-2006 Consumers Union of U.S., Inc.

Gap auto insurance can be worthwhile, but do your research

OPINION Jim Flynn

On Halloween (which, in retrospect, seemed appropriate), I took my 12-year-old fishing truck into the dealership for an oil change. Much to my surprise, four hours later I was driving home in a new fishing truck.

As with most automobile purchases, I learned some things. Let me share a few.

First, car dealers, like other businesses, have found themselves victims of identity-theft fraud, and they have learned to be cautious about who they are dealing with. So, be prepared to produce detailed personal identification information. (I had the sense that, after my buying experience, I deserved not only a new fishing truck but also a top-secret security clearance.) For this reason, and before you get too far down this path, it’s a good idea ask the dealership about its privacy policy.

The dealership should be willing to assure you, in writing, that it’s not going to peddle your personal identification information to others who will use it to pester you to buy things you don’t need or want.

Next, thanks to a very knowledgeable (and patient) finance manager, I learned about gap insurance. Gap insurance comes to your rescue if your vehicle is declared a total loss because of accident or theft, and the amount you receive from your regular insurance — that is, the then-value of your vehicle minus your deductible — is less than the amount you owe on your loan or lease.

This situation can easily occur during the early years of a loan or lease because the vehicle’s value goes down much faster than your debt. Since even a stripped-down vehicle (without leather upholstery, heated seats, electronically adjustable cupholders, etc.) can cost more than $30,000 these days, the amount of the gap can be several thousand dollars — enough to send you into bankruptcy.

The gap is particularly acute in a lease transaction in which the down payment — technically, a capital-reduction payment — is likely to be low and your monthly payments are unlikely ever to create equity in the vehicle (unless you park it in your garage and never drive it).

For this reason, lease contracts will usually require gap coverage, and its cost will be built into the monthly payment. Companies that make automobile loans, and that know what they’re doing, may also require gap coverage, especially if there has been only a small down payment.

Although the concept of gap insurance is simple enough, it gets complicated when you begin to look at the details and your options for coverage.

Those options will vary from state to state. In Washington, for example, auto insurers must offer gap coverage on an optional basis. Not so in Colorado. Two household-name insurance companies I checked with don’t offer the coverage in this state.

And, it’s not clear whether this coverage is in fact insurance, subject to state laws requiring insurance companies to (at least in theory) be solvent. Gap coverage might just be a simple contract, in which event the solvency of the company offering the coverage becomes a more important issue.

If your own auto-insurance company doesn’t offer gap insurance, your dealership most likely will, and it might even be fairly priced. Same thing with your lender.

But you need to shop around. Several companies sell gap insurance over the Internet. You’ll find them quickly if you do a search for “automobile gap insurance” or anything close.

Consider your need, and compare terms of coverage and cost, before you buy.

Contact Jim Flynn c/o The Gazette, P.O. Box 1779, Colorado Springs 80901; fax 578-8836 or e-mail jtflynn325@hotmail.com. Not all questions can be answered.

source: www.gazette.com

Compete, Inc. Will Work with Esurance to Increase Marketing and Advertising Effectiveness

Compete’s Financial Services Practice Will Provide Competitive Benchmarking and Regional Insurance Industry Insights

BOSTON--(BUSINESS WIRE)--Compete Inc. today announced that Esurance has selected Compete to provide regional competitive intelligence in the online auto insurance industry. Esurance, a direct-to-consumer auto insurance company, has significantly outpaced the market in driving growth in online quotes. While working with Compete, Esurance expects to further grow the conversion rate of consumers visiting its Web site.

Consumers are increasingly turning to the Internet as a critical source of auto insurance information. Online quotes among the top five auto insurance companies grew 7% during the first nine months of 2006 versus the same time period in 2005. Esurance selected Compete for its insurance industry expertise and for the quality and granularity of its online consumer behavior data. Powered by two million consumers, Compete’s database permits unrivaled analysis of online auto insurance applications by competitor, at a state level. For Esurance, Compete will provide services to assess the effectiveness of its offline and online advertising in referring and converting consumers on its Web site.

“Esurance is a data-driven company, and we look forward to leveraging Compete's robust data to further refine our marketing activities,” said Megan Hanley, vice-president of direct marketing at Esurance. “Compete’s ability to provide detailed information about specific markets will help us better understand and reach our target.”

Compete will provide monthly analysis at both the national and state level, allowing Esurance to respond even more rapidly to market changes. In addition, Compete will study the competitive landscape and benchmark conversion metrics.

"Esurance is looking to Compete to size online auto insurance quotes market wide so that the company can enhance its marketing campaigns in near real-time," said Stephen DiMarco, vice president of marketing and client services at Compete. "With Compete’s insights, Esurance can make even more precise marketing and advertising decisions."

About Esurance

Esurance, a subsidiary of White Mountains Insurance Group, Ltd. (NYSE: WTM), provides personal auto insurance direct to consumers online and through select online agents. Through Esurance’s Web site, www.esurance.com, customers can get instant quotes, view comparison quotes, buy an Esurance policy, and print their proof of insurance card— all in minutes. Esurance also offers policyholders the ability to make policy changes and file claims instantly online, demonstrating its commitment to improving the entire insurance process from quote to claim.

About Compete, Inc.

Compete, Inc. is the only online market research firm that creates value for both consumers and marketers. Compete’s research is powered by millions of people who share their online behavior to create a more trusted, transparent, and valuable Internet. Consumers use Compete to stay safe when they surf, save when they buy, and discover the best new websites. Leading companies turn to Compete to understand how these consumers consider, buy and engage with their own and rival brands. Carlson Hotels Worldwide, Esurance, Hyundai Motor America, Upromise, DaimlerChrysler and other innovative companies rely on Compete’s real-time insights to improve the return on their marketing investments.

Compete is headquartered in Boston, Massachusetts, with offices throughout the US. For more information, please visit http://www.competeinc.com.

Mass. Insurance Division Will Push Ahead on Auto Insurance Overhaul

By Bruce Mohl, The Boston Globe

Nov. 11--The state Division of Insurance yesterday pushed ahead with proposed changes in the state's auto insurance system that could affect one of every four drivers in the state, even as some lawmakers and companies urged the agency to wait until Governor-elect Deval Patrick has a chance to review the issue.

Senator Marc R. Pacheco, a Democrat from Taunton, called it "an arrogance of power" to implement in the final days of the Romney administration a new system for apportioning among insurance carriers the drivers that no company wants to insure voluntarily.

Boston City Councilor Stephen Murphy, who said he worked as a Suffolk County coordinator for Patrick and his lieutenant governor running mate Tim Murray, said it was time for the division to step back. "I know this issue is very much on Mr. Patrick's and Mr. Murray's radar screen," he said.

Officials with the Patrick campaign declined to comment.

Insurance Commissioner Julianne M. Bowler was not at yesterday's hearing. Her spokeswoman said Bowler was in Napa Valley outside of San Francisco making a presentation at an insurance conference.

Sherman W. Saltmarsh, an insurance agent from Winchester and a former state lawmaker, called it a "disgrace" that Bowler was not present for a hearing on such an important matter. With rates dropping and companies making healthy profits, Saltmarsh said, the changes should be put on the back burner.

Bowler has been pushing for several years for a system where drivers that no company wants to insure voluntarily would be assigned individually to carriers based on market share. Under such a system, industry officials say, companies could refuse to insure any driver they deem high risk. Officials say as many as 1 million drivers could end up being assigned to a carrier, and lose access to group, good-driver, and other discounts that their current carrier may provide.

The current system for handling drivers that no company will cover voluntarily assigns agents who represent many of those drivers to carriers.

That system lets individual drivers choose their own carrier, but it is prone to manipulation by the companies and some firms have ended up with a greater share of high-loss drivers than others.

Amica Mutual Insurance testified yesterday that it is at a $2 million competitive disadvantage under the current system, despite recent changes designed to equalize losses.

Amica, Metropolitan Property & Casualty, Liberty Mutual Insurance, and several other carriers urged Bowler to push ahead with her assigned risk plan.

Attorney General Thomas F. Reilly, in testimony delivered by a top aide, also urged the division to move ahead, but Reilly urged the commissioner to modify her rules so that drivers with clean records for at least three years would not end up being assigned.

"Under the commissioner's new rule, nothing will prevent insurers from simply placing all residents from urban territories in the plan," Reilly said.

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To see more of The Boston Globe, or to subscribe to the newspaper, go to http://www.boston.com/globe.
Copyright (c) 2006, The Boston Globe

10 most costly U.S. catastrophes

Craig Guillot

Hurricane Katrina
Date: Aug. 2005
Cost when occurred: $406,000,000,000
Cost in 2006 dollars: $42,390,000,000

Hurricane Andrew
Date: Aug. 1992
Cost when occurred: $15,500,000,000
Cost in 2006 dollars: $22,530,000,000

WTC, Pentagon attacks
Date: Sept. 2001
Cost when occurred: $18,800,000,000
Cost in 2006 dollars: $21,640,000,000

Northridge, Calif., earthquake
Date: Jan. 1994
Cost when occurred: $12,500,000,000
Cost in 2006 dollars: $17,200,000,000

Hurricane Wilma
Date: Oct. 2005
Cost when occurred: $10,300,000,000
Cost in 2006 dollars: $10,750,000,000

Hurricane Charlie
Date: Aug. 2004
Cost when occurred: $7,475,000,000
Cost in 2006 dollars: $8,068,000,000

Hurricane Ivan
Date: Sept. 2004
Cost when occurred: $7,110,000,000
Cost in 2006 dollars: $7,674,000,000

Hurricane Hugo
Date: Sept. 1989
Cost when occurred: $4,195,000,000
Cost in 2006 dollars: $6,898,000,000

Hurricane Rita
Date: Sept. 2005
Cost when occurred: $5,000,000,000
Cost in 2006 dollars: $5,220,000,000

Hurricane Frances
Date: Sept. 2004
Cost when occurred: $4,595,000,000
Cost in 2006 dollars: $4,960,000,000

Notes:
1. Dollar amounts refer to property and business interruption losses only and do not include life and liability losses.
2. Dollars adjusted for inflation using the CPI calculator provided by the Bureau of Labor Statistics.

Source: Insurance Information Institute

Insurance is a buyer's market right now

By Frank Greve

McClatchy Newspapers

WASHINGTON - Want some money? Ask your insurer for it.

Longer life expectancy and safer vehicles are driving down payouts for insurance companies. Your insurer - or a competitor - should be able to deliver the same level of protection for less, according to industry analysts.

"It's a good time to shop," J. Robert Hunter, the director of insurance for the Consumer Federation of America in Washington, said Monday. "A lot of companies are marketing aggressively."

The payoff for an hour of comparison-shopping, said Hunter, a former Texas insurance commissioner, could top $100 in the first year.

Many insurers can afford to be generous, having prospered in a year of mild hurricane activity, almost no big payouts for terrorism and high auto-insurance premiums. Berkshire Hathaway Inc., for example, which sells catastrophic insurance and owns GEICO, the huge auto insurer, last week reported more than four times the third-quarter net income it declared last year.

The industry's boom in cash also reflects a multi-year cycle that encompasses aggressive premium increases since 2001 to cover big payouts from catastrophes such as Sept. 11 and Hurricane Katrina.

Lower insurer risks for term life insurance - the kind that pays off if a person dies within a specified number of years, typically 20 - should make that product cheaper, too, The Wall Street Journal reported Monday. The reason: Life expectancy was 76.1 years a decade ago in the United States; today it's about 77.9. With Americans living longer, insurers don't need to set aside as much money in reserves to pay claims. They can invest it or reduce their prices and woo new business.

Robert Hartwig, the chief economist for the Insurance Information Institute, a trade group, attributes the decline in vehicle collisions, which also is helping to drive down insurance payouts, to tougher licensing rules for teenagers plus more air bags, wider use of electronic stability control and other vehicle design improvements. Another big factor, Hartwig added, is that "baby boomers are now in their statistically safest driving years."

To profit from the current auto insurance market, Marlys Harris, the finance editor of Consumer Reports, the monthly consumer magazine, recommends that drivers get three quotes, either online or by calling insurance companies. Most people don't shop around, she said. "On average, they shop for auto insurance once every 11 years."

The best Web site for comparison shoppers, according to her magazine's research, is www.insure.com. Shoppers who want to research how readily companies pay claims can spend $26 to join Consumer Reports for a year. They'll find a survey of claims experience in the Personal Finance section of www.consumerreports.org.

Harris said insurers' quotes were merely guidelines; individual policies are set by personal factors, such as driving record, car model, whether children drive the car, past claims histories and credit ratings.

Why credit ratings? "There's an absolutely irrefutable relationship between good credit and safe risk," Hartwig said.

To buyers of term life insurance, Hunter recommends www.term4sale.com, which takes no commissions from insurance companies. Many other sites charge insurers for listings or commissions, so they're often incomplete.

According to The Wall Street Journal, homeowner insurance premiums are down, too, although only about 0.2 percent.

Workers' compensation-insurance costs are down 3.5 percent, the daily business newspaper reported, reflecting the latest phase in a long-term drop in workplace injuries.

Avoiding Insurance Surprises: Does Your New Car Have the Coverage It Needs?

Auto manufacturers have rolled out 2007 new car lines, and consumers can find great deals as car dealers seek to unload 2006 inventories. However, new car buyers should make certain that they have auto insurance that properly protects their sizable investments--or they may regret it.

"Take a few minutes to ensure that you truly have the auto insurance you need," said Ron Moore, manager of product development at MetLife Auto & Home. "Surprisingly, a new car depreciates up to 30 percent during the first year, and many insurers will take a deduction for depreciation during this time. That means that a person could pay $20,000 for a vehicle, but only receive $14,000 if it is 'totaled.' In addition, if you have a loan on the vehicle or if the vehicle is leased, the bank or leasing company could ask you to pay for the difference between the amounts the insurance company pays and the payoff amount of the loan or lease. As a result, you might have to pay several thousand dollars out of your pocket."

Moore also noted that many people assume all of the features of their new vehicle are automatically covered. "People just assume their auto insurance will cover the entire vehicle and everything in it," stated Moore. "If your new vehicle has any add-ons that are not standard equipment, such as a mobile video player for the kids or a GPS or navigation system, they may not be covered by some insurance companies. By asking the right questions, however, you can avoid some nasty surprises, and also, find ways to save money on the insurance you're purchasing."

Not every insurance policy is the same, and many consumers miss out on available insurance discounts. So, before purchasing a new vehicle, ask the following questions:

-- What does my auto coverage actually cover? Determine in advance the level of protection actually afforded under the terms of the policy. For example, if your new car is damaged beyond repair, will your auto insurer replace the vehicle with a new one, or take that deduction for depreciation?

-- Is image everything? Certain cars look great and catch the eye, but you may end up paying more for the flair. Cars that are expensive to repair or have historically higher theft rates carry higher insurance costs. Specialty vehicles and sports cars typically cost more to insure.

-- If my new auto is damaged beyond repair, would I be able to pay off the loan or lease? Does my insurance company offer Lease or Loan Gap coverage?

-- Would the extras that were added to my auto, such as special rims and tires, or video players, be covered if an accident occurred? Would my auto insurer cover the whole cost of the customization, or would they only pay a limited amount?

-- Can I use the accessories to my advantage? If your new vehicle comes equipped with such things as anti-theft/alarm devices or anti-lock brakes, you may qualify for discounts.

-- Are there other discounts that I qualify for? Insurers offer discounts for a number of factors: driving record, certain safe driving courses, the number of drivers using the vehicle, low annual mileage, and whether the vehicle is kept in a garage overnight or parked on the street.

-- Can my good driving record work for me? In the event of a loss, certain insurance companies will reward customers for good driving habits, by reducing your deductible for each year of loss-free driving. Make sure to ask whether your company offers it.

-- How safe is the vehicle? Besides ensuring greater peace of mind, vehicles that are considered "crashworthy" usually cost less to insure. Before making your final decision, pay a visit to www.highwaysafety.org to rate your prospective purchase.

To get a better feel for the safety level of a prospective purchase, MetLife Auto & Home offers a free brochure called "Shopping for a Safer Car." This informative 20-page booklet outlines what safety factors should be considered, to reduce the risk of death or serious injury in the event of a crash. Another free brochure, on "Injury, Collision, and Theft Losses," summarizes the most recent insurance injury, collision, and theft losses of passenger cars, pickup trucks, and SUVs. Both have been co-branded with the Insurance Institute for Highway Safety, and are available by calling 1-800-638-5433 (MET-LIFE).

MetLife Auto & Home(R), a subsidiary of MetLife, Inc. MET, is one of the nation's leading personal lines property and casualty insurance companies, insuring over 3.8 million autos and homes. MetLife Auto & Home has developed a reputation for innovation in product design, being the first insurer to introduce certain product enhancements that provide greater value to consumers, including Identity Theft resolution services to both its auto and home insurance customers, offered at no additional charge. Identity theft resolution services are not available in all states, such as Massachusetts (available homeowners only) and North Carolina. The company was named among the industry's leaders in customer service according to J.D. Power and Associates 2005 Auto and Homeowners Insurance Studies(SM). For more information about MetLife(R) and its affiliates, visit www.metlife.com.

MetLife Auto & Home is a brand of Metropolitan Property and Casualty Insurance Company and its affiliates, Warwick, RI.

Contact Information: MetLife Ted Mitchell, 401-827-3236 tjmitchell@metlife.com or David Hammarstrom, 401-827-2273 dhammarstrom@metlife.com

Cheap car tires

© 2006 BusinessWire
source: home.businesswire.com

Insurance claimants face roadblocks

By MARSHALL LOEB

MarketWatch

A car accident can be devastating physically, emotionally and financially. And while auto insurance is supposed to cover you, you may not get what you need if you can't prove your losses. Money magazine offers the following tips on how you can make the most of your claim:

•Pay attention to your policy before anything actually happens. Find out what is not covered – this is usually outlined in the exclusions section.

•When you get in an accident, try to keep good records. You may be rattled, but take the names and license numbers of all the drivers involved, identify any witnesses, write down your version of events and try to get photos. Be sure to request the police report as well. Call your insurance company as soon as you can and take good notes on any conversations you have regarding the claim.

•Be careful when using your insurer's network of preferred providers to get your car fixed. These auto shops might offer faster turnaround because you can bypass an insurance adjuster but they may compromise quality because the insurance companies pressure them to keep costs down. So go with an auto shop you trust – it might be worth the extra time.

•Request that the auto shop use original equipment manufacturer (or OEM) parts in your repair.When you look at your repair order, scan it for generic parts – they will be labeled with an "LKQ" (like kind and quality). If you insist on OEM parts, which are less likely to rust and will fit better, you have a good chance of getting your way.

•If your insurance company tells you your car is totaled, they mean that the car's market value after the deductible is less than the cost of repair. Thus, the company will pay you the value of the car rather than paying for repairs. But the car's value is determined as if the car were in average condition before the accident. So if your car was in exceptional condition, provide documents to support your claim.

•Keep track of any expenses you incur as a result of the accident: medical, home-car, baby-sitting, etc. Some policies may reimburse you for some of these costs.

The Big Three Asks For Healthcare Help

Ford, GM, and Chrysler have asked for legislation from the government to help with healthcare costs. The auto companies are hoping for new laws to make affordable generic drugs more accessible to their workers. They’re also lobbying for a Federal high risk insurance that would reimburse companies insurance plans for large medical claims.

American auto companies have been hit with staggering losses, and are looking for ways to cut costs. It’s estimated that the cost of providing benefits at GM adds an extra $1,500 to the price of its cars.

The auto companies claim they can’t compete effectively with foreign automakers. Foreign workers often receive their healthcare through government programs rather than through their employers.

Healthcare costs for U.S. companies have been rising steadily for years. Many companies are turning to consumer directed health plansas a way to save money. With these plans, workers are responsible for paying a larger portion of their insurance premiums. The plans often provide workers with more flexibility in receiving care, and stay in effect when they change jobs.

Source: www.insurelane.com

Want to lower your auto insurance? Here are some inventive ways to save

Dan Lewis gets a migraine when he thinks about the $3,000 he pays annually in car insurance, but he's actually a darling to insurance companies. He's had no accidents and only one traffic ticket in the last decade--all on four cars: a Lincoln Navigator, which he drives for nights out on the town, a Chevy pickup for hauling items, a Toyota Camry, and a Hyundai Accent, which he drives when he wants to save money on gas.

"It's important to me to get every discount available," says Lewis, 45, owner of D.L. Enterprises, an investment firm in Jonesboro, Georgia. "With the present state of the economy and owning my own business, I take every opportunity to save money on car insurance."

With escalating insurance costs in every industry, consumers such as Lewis relish any type of available discount or incentive. Farm Bureau insurance gives Lewis a multicar discount and the best rate for his good driving record. He also gets discounts for renewing his contract and having antilock brakes and an antitheft device. Those are a few of the major discounts that drivers can expect to receive. But there are plenty of others.

Progressive Direct (www.progressive.com), the No. 3 auto insurance company in the nation with 9.5 million personal auto policies, is offering its customers $50 for every six months of data they share through the TripSensor device. In order to help the company more accurately assess the type of driver you are, TripSensor captures information such as the miles, speed, and time of day your vehicle is driven.

In addition, according to Insure.com (www.insure.com), drivers can lower their premiums by comparison shopping at their state insurance department's Website, considering higher deductibles, dropping collision and/or comprehensive coverage on older cars, and researching group insurance and corporate discounts through organizations such as AAA or your alma mater. Also ask about discounts for air bags, automatic seat belts, antitheft alarms, antilock brakes, driving school attendance, and safe vehicles.

Some insurance carriers offer specialized discounts. According to Horace Mann (www.horacemann.com/insurance), your agent can do a lot of the leg work to get you the discounts you deserve. If you're insured with a large company, however, you may not have an individual agent. So be sure to inform your insurance carrier of the following things that may impact your rates: moving, your military service, and your occupation or any professional affiliations.

Source: autocheapinsurance.sulekha.com

What are some good companies to buy cheap car insurance in Louisiana?

Best Answer - Chosen By Voters

To buy cheap car insurance in Louisiana you may want to consider Allstate, GEICO, State Farm, Metlife and Progressive.

Here is some information on state auto insurance requirements:

Minimum State Insurance Requirements for Louisiana:

The state of Louisiana follows a Tort system meaning someone must be found to be at fault for causing the accident, and that person and their insurance company is responsible for all the damages. You should be aware that the details of a tort system vary from state to state and it is best to check with your state insurance regulator. Visit our State Insurance Regulators page for a list of links to all the state insurance regulators websites.

Louisiana state law requires minimum Bodily Injury Liability coverage of $10,000 per injured person up to a total of $20,000 per accident, and Property Damage Liability coverage with a minimum limit of $10,000. This basic coverage is often referred to as 10/20/10 coverage.

Personal Injury Protection (PIP) in your coverage helps pay for "reasonable and necessary" medical expenses for you and your passengers. While Louisiana state law does not require a minimum Personal Injury Protection, some insurers offer this as an optional coverage.

Additionally, you can get Uninsured/Underinsured Motorist coverage for any bodily injury caused by an uninsured driver. While Louisiana state law does not require this coverage, you can purchase this as an optional coverage for added protection.

I hope that helps you find some cheap auto insurance in Louisiana.

If you want to compare quotes for auto insurance I recommend InsureMe. They give you up to five free quotes from top-rated auto insurers nationwide - http://www.insureme.com/landing.aspx?ref...

Some tips to help you save on auto insurance: ask about good drivers discounts, good student discounts, anti-theft device discounts, multiple vehicles discounts, try a higher deductible, annual premium payments, lower physical damage coverage limits on older vehicles, and get your home and auto insurance with the same insurer - this could save you up to 15% more.

Source(s):www.carinsurance.com

via: answers.yahoo.com

Cheap Auto Insurance Quotes - Tips For Getting The Lowest Rate

Finding auto insurance quotes online is easy, but finding the cheapest auto insurance rates can be more of a challenge. To get the lowest quotes, follow these tips to help you find ways to trim possibly hundreds off your auto insurance quotes.

1. Give them details – If you don’t provide information about your zip code, marital status, car’s safety features, and annual commuting miles, by default insurance companies will quote you a higher auto insurance rate. Provide as much detail as possible to make sure you get each discount that you qualify for.

2. Shop around – Auto insurance rates can vary as much as 300% between companies for the same coverage. You can save hundreds of dollars a year by comparing prices between companies. Don’t forget to check out your current insurance company, they may have lower rates for new customers that you may be able to negotiate for yourself.

3. Raise your deductible – Higher deductibles equal lower insurance premiums. For example, increasing your deductible from $250 to $500, can save you a hundred dollars or more on your annual premium. However, plan on having additional financial resources to cover the deductible in case of an accident.

4. Cut the miles you drive – For drivers who travel on average 40 miles or less a day, they qualify for a low mileage discount with most insurance companies. Consider carpooling or taking public transit a couple of days a week to reduce your car’s mileage to qualify for the discount. By flying or taking a train for vacations instead of driving, you can further reduce the miles on your car.

5. Switch drivers – For married couples, compare insurance quotes between the male as the main driver and the female as the main driver. You may get a lower quote if the female is insured on a truck and the male is insured on the minivan. Teens should also be insured on safer cars such as the family sedan, rather than a sports car.

6. Add an anti-theft device – By installing car alarms or a tracking system in your car, you will get a discount from auto insurance companies. Since anti-theft devices reduce the risk of your car being stolen, insurance companies pass on the savings to you. A certified defensive-driving class can also reduce your premium for three years with most insurance companies.

To view our list of recommended companies for auto insurance online, who can give you multiple insurance quotes from different companies, visit this page: Recommended Auto Insurance Companies Online.
Carrie Reeder is the owner of eZerk, an informational website with articles and the latest news about various topics.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder

Auto Repair Insurance

Extended Warranties - Myths And Facts

How much insurance does one need? You have the big four: home, health, life, and car insurance. Then there’s a second category, which starts getting a little hazy with credit card insurance, purchase protection plans, fraud insurance and more. Extended warranties, also called extended service contracts, or extended service policies fall into the mist of this second category.

Extended warranties are supposed to pay (in full or in part) for specified repairs for a specific period of time after the expiration of the factory warranty. They can be a great value. They can also be a significant waste of money. It gets quite foggy in the details. What exactly is covered? How long? How much? Are there hidden charges?

There are numerous extended warranty companies and an even wider variety of warranty packages available: silver, gold, platinum, platinum-plus, and a host of other confidence-building words. What’s the best plan, and are extended service contracts worth the money? Extended warranties, like life insurance policies, are a numbers game. They’re a gamble. You pay $2500-$4500 for a 2 year, 100,000-mile protection plan and hope that you get at least that back in warranty repairs. The provider on the other hand, hopes to pay out less than it insured.

There are three major types of plan providers: The manufacturer, the dealership/third party, and third party providers. Each one has its assets and liabilities (discussed ahead).

What exactly is covered in an extended service plan? As mentioned above, what’s covered depends on the package purchased. Some plans only cover the power train: the mechanical components of the engine, transmission, and rear-end. Others cover the power train plus some electrical components. Still others cover electrical, advanced electrical, and computer components. Some only cover what’s listed in the contract. This is called a “Stated” or “Named” contract. This means that if it’s not stated, it’s not covered. Some cover bumper-to-bumper, similar to a manufacturer warranty, except trim pieces, upholstery, exterior components, cosmetic items, and a number of other exclusions.

Never before has the adage, “The devil’s in the details,” been so applicable.

Manufacturer Extended Plans: Extended service plans from the manufacturer are the best in terms of coverage, convenience, and quality. Coverage is similar to the warranty while the vehicle was under its original factory warranty–with similar exclusions stated above. The billing is direct, meaning you don’t have to pay out-of-pocket, except for a deductible, if applicable. Quality is great too, as an extended warranty from the manufacturer will only use factory parts. They also have money, so there’s less risk of bankruptcy.

The down side of manufacturer extended service plans is that they are not cheap. These plans are generally the most expensive, require low mileage standards, and necessitate servicing your vehicle at a dealer for coverage.

Dealership/Third Party Plans: Extended warranties from a dealership are actually from a third party insurer. These providers are “generally” reputable, but not always. However, if there is an issue (such as the warranty provider filing chapter 11, which is quite frequent in the extended service contract business), the dealer “may” step in to cover any repairs that would have been covered under the defunct plan. Also, claims are easier: billing is direct because the dealership has a working relationship with the provider, and there is usually agreement on price.

Some dealers set up their own “internal extended warranty,” which is honored by the selling dealer. This is rare, and should not be confused with a manufacturer warranty. Important: extended warranties are often passed off as “manufacturer” warranties. They’re not. This is a sales trick. Also be aware that there is a significant mark up, as the dealership is merely acting as the middle man. Lastly, extended warranty companies often go bankrupt without warning.

Third Party Plans: These plans are called third party plans because they are outside the responsibility of the manufacturer and the service center performing the repairs (unless there’s a working relationship with a repair shop as stated above).

There are hundreds of extended service contract companies. Some have good reputations, some don’t. Third party plans are frequently sold by used car dealers. You may also receive an official looking notification in the mail stating that your warranty is expiring, and directing you to call an 800 number ASAP. This is a marketing tactic by an independent warranty provider. Despite the “official” appearance of the postcard or envelope, it’s not from the manufacturer. Manufacturers do not send out reminders about warranty expirations.

Given the wide-variety of third party plans there are numerous red flags.

1) Claims: Extended warranty companies will be quick to tell you that filing claims is easy, and that the service center gets paid immediately via a credit card. Thus, there’s no out-of-pocket expense for you. However, the warranty company can’t dictate a service center’s policies. Some service centers will only accept payment from the repair customer. Thus the burden is on the repair customer to fill out the forms, contact their warranty company, and await reimbursement via check, which can take 2-8 weeks.

It is the service center’s responsibility to contact the extended warranty company to let them know what’s wrong with the vehicle and to check coverage. This process can take anywhere from 20 minutes to 20 days, sometimes more, depending on the degree of repairs and especially the amount. (See $1000 and Adjusters ahead)

Service centers and extended warranty companies frequently battle over the “fair” price of repairs. Many repair shops no longer negotiate, and just state the price, leaving the contract holder (i.e., the service customer) responsible for the difference.

2) Rentals: Rental coverage is a great benefit. However, there are fixed rates and time limits. In other words, the warranty company is not going to pay to have you drive a Mercedes-Benz, even if you drive a Benz. Rental allowances range from $25 to $35 per day. Also, rental coverage is based on the number of hours it takes to repair the vehicle, NOT how long your car has been at the shop.

3) $1000 and Adjusters: Repairs that approach $1000, or that require a significant amount of work, will be cause for the warranty company to call in an adjuster to confirm the diagnosis. This will delay the repairs by a minimum of 24-48 hours. It may cost you additional money when an adjuster is involved. You may be charged to have your vehicle pulled back into the shop for inspection, as well as for the time spent with the adjuster.

4) Tear-down Charges: In many cases, an extended warranty company will require that a particular component be taken apart for inspection to determine if the repair is indeed needed and covered. This puts the service customer in a very awkward position. The customer will have to authorize potentially hundreds of dollars of tear-down expense in the hopes that the repair is covered. If it’s not, the customer is out the hundreds in tear-down PLUS the actual repair. This does happen!

Common Myths:

1) “Extended warranties cover maintenance services and brake work.”

No. Extended warranty plans do not cover maintenance or wearable items. Brake pads and rotors are wearable parts. Maintenance such as coolant, brake and transmission flushes, tune-ups, services, oil changes, bulbs, wipers, and more are not covered.

2) “They told me it’s bumper-to-bumper, so it covers everything right?”

Wrong. Not even a factory warranty covers everything. When pitching the sale for the extended warranty, one is very often lead to believe that he or she will have nothing to worry about. This is just not true on so many levels. For example, if your bumper falls off it’s not covered.

3) “I don’t have to pay anything, right?”

Wrong. Despite the claims of 100% coverage, there are many factors involved. The labor rates, labor hours, diagnostic times, parts prices, and machine work are just a few items that often conflict with a service center’s policies. Some extended contracts only pay a maximum of $55 per hour, and only allow one half hour for diagnostic time. This is generally unacceptable to the service center, as labor rates have skyrocketed to over $100 per hour at many dealerships, and average $75 at local shops. Moreover, with the complexity of today’s vehicles, diagnostic time is at a premium. The customer pays the difference.

4) “If I have an expensive problem, I can just purchase an extended service contract.”

It’s unethical, but it’s an option many attempt. However, most service contracts have a minimum time requirement before the first claim can be filed: usually three months. Also, many contracts require that your vehicle be inspected by a service center to check for pre-existing conditions–just like life insurance.

5) “My contract lasts up to 100,000 miles.”

Only if the time limit doesn’t run out first. All extended warranty plans have a time limit. For example, a typical contract will state that the vehicle is covered for two years or 100,000 miles, which ever comes first. During the sales pitch, however, the emphasis will be on the 100,000 miles, not the time.

6) “If my car breaks, it gets fixed like new.” Actually, depending on the contract, an extended warranty company can insist on installing remanufactured or even used parts.

Items commonly not covered by extended warranties: * Any component with a pre-existing condition * Any component related to a Technical Service Bulletin (TSB) * Many components that has been updated by the manufacturer * Extra components necessary “due to manufacturer updates” to complete the repair * Trim pieces: molding, cup holders, dashboard, console, body parts, glass * Many accessories: radios, DVD players, TVs * Many expensive electronics: climate control units, navigation assemblies

Service contract positives: Some service contracts are transferable, and may thus increase the resale value of a vehicle. Many come with trip interruption reimbursement, towing and 24-hour road side. Some plans can also be financed, or have E-Z Pay Plans. Others offer a money-back guarantee.

What should you do? You’ll get lots of advice about doing the research, comparing plans, and reading the fine print. This is all sound advice. But what about doing the math?

Let’s say a plan costs $2500 for 2 years or 100,000 miles, whichever comes first. To break even you’ll need a minimum of $1250 per year in covered repairs, excluding regular maintenance. Remember covered is the vital word here.

Another way to break it down is to anticipate having to pay $104.17 per month over the next two years in “covered” repairs. Do you want to take that bet?

What could happen? You could double your money or more in repair work. You could conceivably get a new engine and transmission (or used ones anyway). You could also easily spend $2500 for a service contract, and still have to pay another $2500 for repairs, which for a variety of reasons, were not covered under your plan. Now you’re out $5000.

Alternatively, you could keep the initial $2500. In many ways all an extended warranty does is prepay for repairs. You could stick the money in the bank and collect interest. Then you could withdraw the money for repairs as needed.

Another consideration that’s rarely discussed is the cause of the problems. Many car repairs problems are the result of wear and tear, neglected maintenance, physical damage, or acts of God–such as flood damage. None of this is covered. The gamble only covers failed components.

If the vehicle you’re driving does cost $2500 to $4500 in repairs due to outright failed components, is it a vehicle you even want to consider keeping? A vehicle that needs this kind of repair work due to mechanical, electrical, or computer failures may not be worth it. The $2500-$4500 would be better spent on an upgrade to a quality vehicle rather than insuring a lemon.

There’s no question that auto repair is expensive, and even quality cars break from time to time. But do they breakdown to the tune of $2500-$4500? That’s a hefty bet on a “possibility.”

Terence O’Hara from the Washington Post makes an excellent assessment about extended warranties in general. He writes:

…extended warranties play upon a basic human trait to avoid loss, even if it means sacrificing a possible future gain…the gain is all the other things of value that a consumer could buy with the money that was spent on a warranty

What’s the best plan? Money in your bank account!

By: Theodore Olson, Mon Oct 30th, 2006

Progressive CEO says drivers doing more auto insurance shopping

CHICAGO (MarketWatch) -- Empowered by the Internet and bombarded by ever-increasing auto-insurance advertising, consumers are shopping more aggressively for insurance, and prices are coming down, according to the chief executive of Progressive Corp. (PGR), the nation's third largest auto insurer.

"There is a power shift to the consumer," President and CEO Glenn M. Renwick said during Progressive's third-quarter conference call Friday.

He said that at times in the auto-insurance industry, growth has come from rising premiums rather than an increasing number of customers, although "we are not seeing that now." Renwick called the pricing atmosphere "deflationary" and said that for customers facing renewal in particular, pricing was an important factor.

"We want to make sure we don't lose them to someone else at a price we would be comfortable with."

Renwick said other insurers also are lowering rates, with part of the impetus being that the frequency of accidents has either stayed steady or dropped every year since 1999.

More auto insurance price quotes are being generated by "electronic agents," which indicates that more consumers are using the Internet or other non-traditional ways of shopping for insurance. "It is definitely a growing trend," Renwick said.

Renwick also spoke of the company's planned partnership to offer homeowners insurance through a partnership with Homesite Insurance Group. Renwick said the estimated rollout date was around Jan. 20, with the product being offered through independent agents in Ohio, Pennsylvania and Oregon. Progressive will earn a commission on polices that are sold through its direct-to-consumer marketing.

Progressive, already a heavy advertiser, has increased its advertising substantially in 2006, including non-traditional media such as the Internet, the company said Friday.

But the company plans "no major changes" to its typical 10% to 10.5% commission paid to agents who bring in new customers.

Last month, Progressive reported third-quarter net income of $409.6 million, or 53 cents a share, up from $305.3 million, or 38 cents a share, last year.

Net premiums written rose 1% to $3.6 billion.

Policies in force for Progressive's drive, or agent, business dropped 1% in September from the same month last year to 4.5 million. For its direct-to-consumer business, policies in force rose 5% to 2.4 million. Its special lines policies in force, which includes motorcycle, watercraft and other vehicles, rose 8% to 2.9 million, and its commercial auto business rose 9% to 506,000 policies in force.

Shares of Progressive dropped 13 cents to $23.48 in recent trading.

-Contact: 201-938-5400

Insurance and Your Credit Report

Insurance companies use several factors to determine your premiums, including your driving record, age, the type of car you drive, marital status, and your address. But increasingly, companies are using your credit history as an indicator of how likely you are to file a claim. Called an insurance risk score, this controversial number is calculated using a special formula similar to a credit score but developed specifically for insurers. This formula is currently unavailable to consumers; however, many states are currently considering legislation to regulate the use of this score. In fact, Maryland and Washington have passed laws that restrict the use of credit information by insurance companies.

A few things have been made public about your insurance risk score recently. We now know that five main financial factors are evaluated to calculate your insurance risk score:

1. Your payment history: Your record of paying credit bills in the past, number of adverse public records (i.e. bankruptcy, collections, liens), and the amount of delinquencies on your credit record account for about 35% of your insurance risk score. This is the largest factor in your insurance rating.

2. Amount of debt you owe: The number of accounts you have open, the types of accounts, and the amount you have charged all combine to count as 30% of your risk score.

3. Length of credit history: The amount of time that you've had credit and the specific length of time that you have had certain accounts make up 15% of your risk analysis.

4. New credit: 10% of your risk analysis is calculated based on your recent credit activity. Your number of new accounts, recent inquiries, and efforts to re-establish troubled credit are grouped into this category.

5. Types of credit in use: The number and activity of credit accounts including credit cards, retail store accounts, and mortgages count for another 10% of your risk evaluation.

Although consumers can't access their own insurance risk score, simply knowing that your credit history is used by insurers can help you get a better deal. If you have excellent credit, you may want to use it to your advantage and shop around for the best insurance rates possible. If you have troubled credit, you may want to stay with your current insurer until your finances improve.

By understanding some of the credit factors that go into your insurance assessment, you are empowered to improve your insurance risk score. Take charge of your credit and get the insurance rate you deserve.

source: blog.insweb.com

Auto Insurance and Staged Auto Accidents

There are a lot of dishonest people out there who for whatever reason make decisions that compromise the safety and well-being of innocent people. A reflection of this is in the auto insurance scams that happen every day, under the guise of an everyday small fender bender. Imagine getting into a small accident that results in a small dent and then wrangled into an enormous and stressful insurance claim that could cost you thousands of dollars over the course of years. According to the Coalition Against Insurance Fraud (CAIF), “often these accidents are staged by organized crime rings that bilk dozens of unsuspecting drivers.”

Below are list of common scams classified by the CAIF:

Swoop and Squat
A suspect vehicle suddenly swoops in front of you and jams on the brakes, causing a rear-end collision. Often the suspect car has passengers who pretend to have painful back or neck injuries, even though the collision was at low speed. The driver and passengers then make large collision and injury claims against your auto policy.

Drive Down
You're trying to merge into traffic, and a dishonest driver slows down and waves you forward. He then crashes into your car, but denies waving you into traffic and blames the accident on you. Crooked drivers may also wave you out of a parking space with the same come-on.

Shady Helpers
A stranger may approach you at the crash site, or telephone you soon afterward. Maybe you just had an honest accident, or it was all a setup. Regardless, this stranger tries to convince you to get repairs at a specific auto-body shop, seek treatment from a certain doctor or chiropractor, or visit a lawyer he knows who can help you sue for injuries. Be careful — it may be a setup: That body shop may try to illegally pad your repair bill. The doctor or chiropractor may give you shoddy or no treatment, but bill the auto insurer thousands of dollars. The lawyer may encourage you to sue the auto insurer for thousands of dollars even if you have only minor or no injuries.

Not only can your life become incredibly stressful, but your driving record could become blemished with a costly claim, and your premiums may skyrocket accordingly. Perpetrators can also put your life in risk with their schemes. In fact, the CAIF sites that an entire family, including an infant daughter, died when their car was hit by a truck when a staged accident went wrong.

10 Tips to Protect Yourself Against Staged Auto Accident Fraud:

1. Just don’t tailgate. Allow plenty of space between your car and the car ahead of you. This will give you ample time to stop if the lead car suddenly jams on its brakes.

2. Look beyond the car in front of you while driving. Apply your brakes if you see traffic slowing.

3. Count how many passengers were in the other car if you're in a collision. Get their names, phone numbers and driver's license — more people may file claims than were in the car. Also get the car's license number.

4. Keep a pen and paper in your glove compartment so you're always ready.

5. Keep an eye on how the passengers of the other car behave? Did they stand around and joke, but suddenly act injured when the police arrived?

6. If you can, keep a disposable camera in your glovebox. Take pictures of the other car, the damage it received — and the passengers.

7. Call the police to the scene. Get a police report with the officer's name, even for minor damage. If the police report notes just a small dent or scratch, it'll be harder for crooks to later claim serious injuries or car damage.

8. Get involved if you're a witness. Watch for the warning signs of a scam, and help the honest victim with details.

9. Contact your state insurance fraud bureau if a stranger tries to steer you to an unknown body shop, doctor, chiropractor or lawyer. Give officials the names, addresses and phone numbers of these providers. Only see medical and legal providers you know and trust, or at least ones that are recommended by people you trust. Never let yourself be suckered by a stranger off the streets.

10. Keep careful records of your medical treatments — dates, treatments given, and diagnoses. Compare your records against the statements you receive to make sure the bill wasn't padded or treatments outright fabricated.

Call the National Insurance Crime Bureau if you suspect a scam.
The toll-free number is 1-800-835-6422. Give license plate number, location of the accident, people involved, why you think this was a fraud, and as many other details as possible.

source: blog.insweb.com

Save on Auto Insurance

Auto insurance doesn’t have to be as expensive as most people complain it is - and the best part is you probably have a big say in how much you’re going to pay for your auto insurance policy.

There are a myriad of factors that go in to figuring out how much your auto insurance policy is going to cost you - where you live, the type of car you drive, your credit score, etc. Thankfully, there are many variables that you have control over which can help make your auto insurance policy as least costly as possible.

Here are some simple things you can do in order to minimize your auto insurance costs:

1. Be a good and defensive driver. It’s no secret that the more accidents you are involved in and the more moving violations you have on your record the more you’re going to pay for auto insurance. So, with that being said, try and drive the speed limit, pay attention to the cars around you and anticipate driving conditions.
2. Do not EVER drink and drive. Aside from the terrible danger you pose to both yourself and other motorists, if you get nailed with a DWI, you’re going to need a good lawyer and some deep pockets for all the money you’re going to have to fork over to get any company to offer you auto insurance. And that’s only if you’re lucky enough to not have injured or killed anyone. Moral of the story - don’t drink and drive.
3. Ask for discounts. Auto insurance companies offer discounts for almost anything you can think of - good grades, your education level, your job, having a short commute, etc. Call up your auto insurance company and ask them what sort of discounts you may qualify for. Realize, they’re not going to call you offering these discounts (they don’t mind if you over pay), so you’re going to have to be proactive and call them.
4. Raise your deductible and stop submitting small claims. This is probably the easiest way to decrease your auto insurance bill. By raising your deductaile, you will have to pay more out of pocket for repairs to your car should you be at fault for an accident (or your car is damaged by Mother Nature, on the receiving end of a hit and run, etc.), but it will lower your premiums, so in the end you should still come out ahead.
5. Combine auto and home insurance companies. Do you own both a car and a home? It’s probably worth it to look at trying to get one company to cover both policies, as most major insurance companies will offer you a significant discount of one or both of your insurance bills.

Obviously, this isn’t an all intensive list of things you can do to easily reduce your auto insurance premiums, however the nice thing about this list is all of the items relate to things you control. Be a good driver, ask for discounts, raise your deductible and combine policies and you could be looking at a much lower auto insurance payment.

source: www.savingwithoutabudget.com

Every 25.5 Seconds a Vehicle is Stolen in the U.S.

Hot Wheels, the National Insurance Crime Bureau's companion study to its annual Hot Spots auto theft report examines data reported to the National Crime Information Center (NCIC) and determines the vehicle make, model, and model year most reported stolen in 2005.

For 2005, the most stolen vehicles* in the nation were:

1. 1991 Honda Accord
2. 1995 Honda Civic
3. 1989 Toyota Camry
4. 1994 Dodge Caravan
5. 1994 Nissan Sentra
6. 1997 Ford F150 Series
7. 1990 Acura Integra
8. 1986 Toyota Pickup
9. 1993 Saturn SL
10. 2004 Dodge Ram Pickup

In 2005, 1,235,226 motor vehicles were reported stolen which is 2,625 fewer than in 2004. Using the FBI's average valuation of $6,173 per stolen vehicle, this amounts to over $7.6 billion in losses in 2005-just in vehicle value alone.

The FBI Uniform Crime Report divides the nation into four regions: Midwest, Northeast, South and West. The Midwest with 22.3% of the nation's population reported 225,519 vehicle thefts (an increase of 0.4% over 2004) and represents 18.3% of the total number of vehicles stolen in 2005; the Northeast with 18.4% of the population reported 129,835 vehicle thefts (a decrease of 9.5% from 2004) and represents 10.5% of the total stolen; the South with 36.3% of the population reported 412,033 thefts (a decrease of 2.3% from 2004) and represents 33.4% of the total number of vehicles stolen. Finally, the West with 23.0% of the population reported 467,839 vehicle thefts (an increase of 4.5% over 2004) and represents 37.9% of the total number of vehicles stolen.

With only 62.1% of stolen vehicles recovered last year the question becomes, what happens to the over 450,000 vehicles still outstanding? The short answer is that they fuel a number of related insurance fraud and vehicle theft activities. For example:

Exports: NICB Agents have recovered a significant number of stolen vehicles from foreign countries. It is not unusual for stolen vehicles to be shipped intact to other countries where prospective buyers can have them for a fraction of what they would legitimately cost and with no questions asked.

Whether enclosed in shipping containers at coastal ports or simply driven across the border into Canada or Mexico and elsewhere, exports contribute to the tens of thousands of stolen vehicles which are never recovered.

NICB's Foreign Operations group actively pursues the repatriation of stolen vehicles in foreign countries and works closely with U.S. embassy personnel and foreign government officials to return those vehicles. Just in 2005, over 3,000 vehicles were returned to the U.S. from Belize, Costa Rica, El Salvador, Dominican Republic, Guatemala, Honduras, Jamaica, Lithuania, Mexico, Nicaragua and Venezuela.

Owner Give-Ups: An owner give-up is the term that describes a vehicle that has been reported stolen by its owner when the owner is actually making a false theft report. In these situations, vehicles are driven into ponds, lakes, or quarries, set on fire in sparsely populated areas, or even driven into Mexico and abandoned with their owners filing "theft" reports later.

Owner give-ups are often motivated by economic factors. If a person owes more on a vehicle than it is worth, having it stolen allows the owner to walk away from the debt. Similarly, on a lease where the usage has exceeded the terms of the lease, theft becomes an option.

Chop Shops: A good percentage of stolen vehicles end up in chop shops. These are places that dissemble stolen vehicles and sell their parts to individuals, dealers, body shops -- just about anyone who has a need but has no scruples. Thieves can sell the individual parts from older models for more money than the vehicle is worth intact.

This fraud is exacerbated when an unethical body shop submits a repair bill to an insurance company showing it obtained and used original equipment manufacturer (OEM) replacement parts when in reality the parts used were obtained from a chop shop. The insurance company pays the higher invoice cost and the body shop pockets the difference. (Visit our Web site to see this in graphic detail.)

A Layered Approach to Protection: To protect their investment, Robert M. Bryant, NICB's President and Chief Executive Officer, encourages vehicle owners to follow its "layered approach" to auto theft prevention by employing simple, low-cost suggestions to make their vehicles less attractive to thieves. NICB's four layers are:

Common Sense: The cheapest form of defense is to simply employ the anti- theft devices that are standard on all vehicles: locks. Lock your car and take your keys.

Warning Device: Having and using a visible or audible warning device is another item that can ensure that your car remains where you left it.

Immobilizing Device: "Kill" switches, fuel cut-offs, and smart keys are among the devices which are high and low tech, but extremely effective. Generally speaking, if your car won't start, it won't get stolen.

Tracking Device: If your vehicle is stolen, these systems help law enforcement track and recover it and return it to you. Some systems will even inform you if your vehicle has been moved without your knowledge.

* This report reflects only stolen vehicle data reported to NCIC in 2005. No further filtering of information is conducted, i.e., determining the total number of a particular make and model currently registered in the U.S. for comparison purposes.

See the full report at http://www.nicb.org.

Source: National Insurance Crime Bureau

Nine Ways To Save On Your Policy

The Insurance Information Institute has nine suggestions to help you save on your auto insurance policies. Auto insurance premiums can vary from company to company and from coverage to coverage, so be sure to shop around.

1. Comparison shop.
Use consumer information provided by your state's insurance department. Where they're available, insure.com has published state insurance department auto rate guides. These guides tell you what coverages you need and show you sample rates, usually from th

e biggest companies. Visit your state's page by choosing your state from the menu at the top of this page.

2. Ask for higher deductibles.
When you file a claim, a deductible is the amount of money you pay before your insurance company kicks in. Higher deductibles mean lower premiums. For example, increasing your deductible from $200 to $500 on collision coverage could reduce your cost by as

much as 30 percent.

3. Drop collision and/or comprehensive coverage on older cars.
If you own a car that's worth less than $1,000, you'll probably pay more for the coverage than you would ever collect on a claim. Your bank can tell you how much your car is worth, or check out the Kelley Blue Book.

4. Buy a "low-profile" car.
Cars that are expensive to repair or that have a high theft rate generally have higher insurance costs.

5. Take advantage of low-mileage discounts.
Some insurance companies offer discounts to drivers who put fewer than a predetermined number of miles on their vehicles each year.

6. Consider insurance cost when making a move.
Costs tend to be lowest in rural communities and highest in cities, where more traffic congestion occurs.

7. Find out about discounts for automatic seatbelts or air bags.
Your insurance agent should let you know about these discounts when you purchase your coverage. Most policies give discounts for air bags and automatic seatbelts.

8. Ask about antilock brakes.
Some states, including Florida, New Jersey, and New York, require insurers to give discounts for cars equipped with antilock brakes. Some insurance companies give the discount no matter where you live.

9. Ask about other discounts.
Some companies offer discounts for insuring more than one car, also insuring your home with them (known as a multiline discount), having no accidents in three years, being a driver over 50, taking driver training courses, and having antitheft devices. Plus, remember good-student discounts when you are insuring a teen driver.

For more in-depth information on auto, health, home and life insurance, visit insure.com.

source: finance.yahoo.com

Michigan Auto Insurance Agents Top Ten Accident Guide Available at MichiganAutoLaw.com

Detroit, MI (PRWEB) November 1, 2006 -- Michigan Auto Insurance agents now have access the Top Ten Auto Accident Guide available at http://michiganautolaw.com/autoaccident_topten.php. The guide was produced by Michigan Auto Law as a free consumer resource to help auto insurance agents better protect and educate their customers about the most common mistakes made by victims of Michigan car, truck and motorcycle accidents.The Top Ten guide reviews Michigan no fault law, statute of limitations, how to apply for benefits, medical care and documentation and the most common mistakes made by injured victims. Auto Insurance agents across Michigan have free access and approval to establish direct links to the Top Ten Guide from their web sites and interactive newsletters to make the information more accessible to victims and family members. Instructions for linking directly to the guide are available at http://michiganautolaw.com/howtolink.php.

The guide is one of many consumer resources available to Michigan auto accident victims and their families. All information is available at no charge and is a recommended link for Michigan auto insurance and advocacy web sites devoted to helping injured victims.

The Top Ten Auto Accident Guide was authored by Michigan Automobile Attorney Steven M. Gursten. Mr. Gursten was also recently selected as "Lawyer of the Year" for 2005, by Michigan Lawyers Weekly, the state's largest legal periodical. Steve was selected after winning a $9 million settlement for one of his clients -- reported as the largest settlement for pain and suffering in Michigan in more than 10 years.

About Michigan Auto Law – Gursten, Koltonow, Gursten, Christensen & Raitt, P.C.
Michigan Auto Law has been recognized as Michigan's largest personal injury law firm practicing exclusively in serious car, truck and wrongful death cases. For more than 30 years and three generations, the firm has been helping people throughout Michigan, achieving more million dollar verdicts and settlements for car and truck cases than any other Michigan law firm. For more information about Michigan Auto Law, call 1-800-777-0028 or visit www.michiganautolaw.com.

Source: news.yahoo.com

How are Auto Insurance Companies Making Money

Many of you would have insured your vehicle and will be paying your premium regularly. You will also be claiming amount from the insurance company when your vehicle gets repaired or when it meets with any accident.

But how many of us know how the insurance company is benefited from this? How does it pay its employees? How does the insurance company make a profit by getting a meager amount in terms of premiums where it has to pay hefty amounts for claims? The fact is that the insurance companies are making good amount of money and are one of the profitable areas of business.

Actually the amount the company pays for its claims is very much less compared to the premium it collects from its customers and is thus benefited by the underwriting profit. It is the combined ratio of the company, which is nothing but the loss ratio added to the expenses ratio, which determines the underwriting profitability of the company.

If the combined ratio is less than 100% it indicates profit for the company and any thing above 100% is a loss. There are also other insurance companies, which make money on ‘Float’ instead of underwriting profit. This means these companies collect investment income on the money reserved for claims.

There are some insurance companies, which manage to make profit even though their combined ratio is above 100%. These companies invest the amount received as premium from the customers and are benefited from the interest they earn before they pay out claims.

Actually the return from this investment helps the company to offset any underwriting loss, which naturally results in the company’s profit. But many of these companies, depending on the laws existing in the area where they operate find it prudent to invest in government bonds and other lower risk investments, which may earn lower returns.

These companies ensure that the cost of funds i.e., the extra amount it has to pay is less than the returns received from the investments. Although insurance companies mainly depend on underwriting profit, the financial market now expects the companies to earn profit by investing the amount received by them.

The fact is that these insurance companies use a wide historical data while figuring out the losses and decide the premium based on it ensuring a certain percentage of profit for them.

Further it is always advisable to inquire about different insurance companies before taking policy because the premium rate differs from company to company. So think and ensure that you always choose the company that offers best services with low premium to get the best benefit.

If you find this information useful you should visit the site Travel insurance | Farmers insurance

Article Source: http://EzineArticles.com/?expert=Byiban_Antony

Used Car Loans

Want to buy a used car but just don't have the funds sat in your bank account? If so, why not consider taking out one of the many used car loans available on the loans market.

Used car loans are specifically designed by loans companies to provide used car buyers with a competitive finance arrangement through which to purchase a used car. Flexible loans terms are available from used car loans companies, as well as low APR deals suitable for used car purchases. Used car loans of up to £20,000 can be arranged on an unsecured basis, with loans companies offering higher loans amounts if security is supplied.

Advance plan your used car loans

When buying a used car it pays to do some advance planning and arrange your used car loan ahead of the search for a used car. There are many loans companies out there offering loans for used car purchases, so it makes sense to shop around to get the best loans deals for buying a used car. Look for car loans that are flexible to your needs and offer a low APR, so your monthly used car repayments on any loans taken out won't be sky-high.

As with all types of loans, you should first determine how much you can afford to borrow on loans to buy a used car. Loans calculators are available on the Internet and can be used to calculate loan and repayment amounts in accordance with different APRs. It is important to take into account other financial commitments too, including other loans, when calculating the loans amount that you can comfortably borrow to purchase a used car.

If you intend to buy your used car from a used car trader where they offer car loans / finance for their used cars, then do make sure that the loans deal you sign up to is better than the loans deal that the used car trader can offer. The APR rate is the critical thing here. On car loans tailored for used car purchases the APR rate - i.e. the rate of interest you'll pay on top of the used car purchase price - can be as low as 6%. Finance loans deals through used car traders may have a higher APR, so pushing the total cost of buying a used car up to an unacceptable price.

One final thought. When negotiating the price of a used car with a trader, they may accept your lower offer providing that you take up one of their loans to finance the used car purchase. If this is an option then do check the terms and conditions of their loans carefully, paying special attention to the loans APR rate, as the savings from your negotiation on your used car may not be as attractive as first imagined when you consider the final costs attached to their loans!

About the Author:

Matthew Bourne has been working in the loans, mortgage and life insurance industry for over 10yrs and is currently working for http://www.loansgalaxy.com/car-loans/

Read more articles by: Matthew Bourne

Article Source: www.iSnare.com