Shopping for car insurance

Knoxville (WVLT) - We are all trying to save money where ever we can, and that's even the case when it comes to car insurance.

Here are a few tips to follow for car insurance review.

The National Association of Insurance Commissioners recommends that consumers review car insurance policies every year. Yet, only about 20 percent to 35 percent of people actually do so.

There are many benefits to annually reviewing your car policy. Either you will confirm you have the right coverage for your needs, or you'll gather crucial information for making smart decisions about switching providers.

If you decide to shop around for a better deal, investigate new companies carefully to avoid any policy pitfalls. Most consumers simply look for the best price, it's important to consider other factors. Can the new company successfully underwrite a policy under the terms you request? Is it considering rate hikes in the near future? Time your switch so that you won't have a lapse in coverage.

Determine if your needs have changed. Think about whether recent life changes require you to add new coverage.

Check your current discounts first. Many insurance companies provide discounts to consumers who purchase multiple policies.

Always compare apples to apples from one company to another.

Get accurate quotes from companies. Look for quality reputation of the insurance company.

The insurance association says they find a lot of people are underinsured, some policy holders may have only $25,000 of coverage to repair someone else's vehicles. If you consider that the average car is in the $25,000 to $35,000 range, then multiple-car accidents will wipe out your coverage. The other people involved in the accident will be looking to you personally to make-up the difference.

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Part 3: 10 ways to save $1,000

NEW YORK – Sometimes it takes creativity to cut back. Whether you're getting squeezed by credit card bills or saving for a big purchase like a car or home, there are some easy ways to save big chunks of change many people aren't thinking about. Here are a few, with assists from personal finance experts Jeff Yeager and Lynnette Khalfani-Cox.

1: Haggle

Paying full price is so 2005. But if you're like many Americans, you can't negotiate your way out of a parking lot. Learn and save. Things such as rent, bank fees, electronics, apparel and even food can be had at a discount just by asking -- or by offering to pay cash.

2: Get neighborly

If you stay closer to home, you'll save big. AAA estimates it costs more than $8,000 a year to operate the average car. Driving 15 percent less amounts to a $1,200 savings in that case.

3: Raise your deductibles

On home and car insurance, agreeing to pay a higher deductible, say $1,000 instead of $250 or $500, can save you a bundle in premiums.

4: Choose term life insurance

You're only covered for a set amount of years, but you can get a lot more for a lot less cash. A 20- or 30-year term policy will cover the life of a mortgage and be there until kids are out of college. For a healthy 35-year-old man, $500,000 of insurance can be had for $30 a month for 20 years. That same amount in whole life could cost hundreds a month.

5: Butt out

Taxes on smokes are going up again, putting the average price of a pack of Marlboros at more than $5. A pack a day at that price costs $1,825 a year.

6: Open an IDA

An individual development account is a special savings account that helps low-income workers buy homes or cars or start businesses. The accounts are matched by donated dollars at a 1-to-1 or 1-to-2 ratio. More people qualify than one might think. Visit www.idanetwork.org to find out more.

7: Drive a stick

They can run about $800 less than an automatic and get two to four miles a gallon more, according to Consumer Reports. They cost less to fix, and you earn cool points.

8: Get a roommate

Your home is typically your biggest monthly expense. Whether you rent or own, cut your cost and make a new friend.

9: Take a staycation

Turn off the phone, disconnect the computer and stop your mail. Check for resident discounts on local attractions and explore some great restaurants.

10: Do some sit-ups

Is that New Year's resolution slimming your wallet more than your waist? Consider ditching the pricey gym membership and save on gas getting there.

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High tech allows parents to watch teen driving via Internet

SPOKANE, Wash. - A program designed to help teen drivers change their bad habits is catching on. It allows parents to see and hear exactly what their kids are doing in the car. It's called the "Teen Safe Driver Program" and is the brain-child of American Family Insurance. A tiny camera installed inside the car, records sights and sounds inside and outside the vehicle. It records risky driving behaviors such as swerving, hard braking and sudden acceleration. Those clips are then sent in for analysis where experts grade the driver. A report card is then sent to the drivers' parents along with video clips.

news source : http://www.msnbc.msn.com/

Auto Insurance Rates Rise as Unemployment Numbers Climb

In these hard times, consumers definitely do not need any more price increases. But recent evidence shows that when unemployment rates rise, so do auto insurance quotes. The economic downturn in America has caused many drivers to drop their auto insurance policies to cut their personal financial costs, resulting in more and more drivers hitting the road uninsured and vulnerable.

A recent article on Insuranceagents.com discusses how the increase in uninsured drivers is affecting auto insurance rates because uninsured drivers are more susceptible to car accidents, eating into insurers profits. Nationally, a more than 13 percent of drivers are driving uninsured. These people are 10 times more likely to get into an accident, according to the Insurance Information Institute.

"Millions and millions of dollars are paid each year by insurance companies to people injured by uninsured drivers," according to the article on Insuranceagents.com, Uninsured Drivers Cause Auto Insurance Quotes to Increase . "Someone's got to foot the bill for that, and it usually will end up coming from insured drivers' premiums … "

Though auto insurance rates are climbing in many places across America, it doesn't mean it's impossible to find affordable car insurance. The article on Insuranceagents.com details how and where to look for affordable car insurance rates. It also includes the answers to questions and concerns many drivers might be asking as it gets harder and harder to keep up with their auto insurance payments. Sources for finding affordable auto insurance quotes can include the Yellow Pages, recommendations from friends and family, and the National Association of Insurance Commissioners.

news source : http://insurancenewsnet.com/

MOTORISTS PREPARED TO LIE TO KEEP PREMIUMS DOWN

ABOUT a quarter of motorists would be prepared to lie to insurers to keep their premiums down, it has been disclosed. As many as 28% said they were prepared to withhold information about their exact mileage, a survey by insurance information company Gocompare.com showed. And 22% would consider lying about exactly where they parked their car, with 10% prepared to be less than truthful about whether their vehicle was used for work.

The survey of 1,510 motorists also showed that a number of drivers would cut back on some insurance "extras", with 57% prepared to forego a courtesy car, 40% breakdown cover and 36% legal expenses cover. Nearly two in three of those questioned said they were trying to beat the recession by using their cars less and driving in a more fuel-efficient manner. Gocompare.com chief executive Hayley Parsons said: "On the one hand, it is understandable that motorists are economising by driving more efficiently, but it's worrying that so many are considering such a risky approach to saving money as withholding information from their insurer.

"With people feeling the effects of the recession, everyone is looking to save on their outgoings. The important thing to remember is that while it might be tempting to alter certain details or omit key information, this is treated as fraud by insurers and could result in your policy being invalidated."

news source : http://www.motorstoday.co.uk/

No insurance benefits for teen in stolen car

TRENTON, N.J. - New Jersey's Supreme Court says a passenger in a stolen vehicle can't collect medical benefits under an auto insurance policy, even if they don't know it was stolen.

Thursday's 5-2 ruling, which overturned an appellate court, upholds a plain reading of an exclusion under auto insurance policies. It denies coverage to someone who is in or driving a vehicle without the permission of the owner or other named insured. The case involved a 14-year-old East Orange boy who suffered a broken leg and other injuries in an October 2004 accident.

His grandmother, with whom he was living, tried to collect medical benefits under personal injury protection coverage. Liberty Mutual Insurance Co. denied the claim.

news source : http://www.newsday.com/news/

Keep auto appeals board

The state's auto insurance reform measures have benefited consumers, but the dissolving of the Division of Insurance Board of Appeals on April 1, as advocated by insurance commissioner Nonnie Burnes, would constitute a step backwards. We support efforts in the Legislature to pass a bill protecting the appeals board. The "managed competition" system implemented last year meant that Massachusetts was no longer the only state in the union in which car insurance rates were dictated by government. Commissioner Burnes argues that with the introduction of competition there is no longer need to provide drivers with a place to contest auto accident surcharges, but she is overstating the benefits of competition.

"Managed competition" means that the system is not fully competitive, and as long as it is not, an avenue for appeals must be kept open. Ms. Burnes' assertion that drivers unhappy with surcharges can simply move to an insurer with a more lenient policy assumes that companies differ dramatically in the way they handle accidents, which is not necessarily the case. "The accident follows you," Frank Mancini, the president of the Massachusetts Association of Insurance Agents and a supporter of the appeals board told The Boston Globe. "It doesn't go away if you move to another insurer."

Ms. Burnes proposes that the insurance companies provide two reviews for customers unhappy with their surcharges, but we don't see the companies reversing decisions in favor of drivers too often. If we have learned anything in recent months it is that government must provide oversight of industry, and that applies to the auto insurance industry as it does business in Massachusetts.

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