Car Insurance

Auto-insurance researchers: 'Cell phone bans don't help reduce crashes'

2011-12-20T02:51:00.000-08:00

All those fancy in-car docks and voice navigation? Utterly pointless. At least according to the Insurance Institute for Highway Safety, who reckons that it's not the phone that's the issue, but "the full spectrum of things that distract." The IIHS (funded by a group of car insurers) compared crash data between states that had instituted cell phone bans and those that hadn't. According to its research, while the ban had reduced phone use (whoa, really?), it hadn't helped reduce crash rates. The National Transportation Safety Board has presented several studies linking cell phone use to an increased chance of crashing and their latest proposals would ban most hands-free systems found in major car makers' vehicles today. Hear that? That was the sound of hundreds of third-party accessory manufacturers recoiling in horror.

Single Day Car Insurance - Five Critical Questions and Answered

2011-11-29T02:34:00.000-08:00

One day car insurance obviously tops your vehicle or visit for a single day. This is an innovative approach to the typical policy that people usually pay on a yearly basis. The distinction actually lies on the way you travel or the number of times you use your car on the road.

If you are using your car for work every day, then you certainly have signed up for an annual car insurance plan with your selected functions and policy that matches your wants best. You will even wonder what good one day car insurance can do to you with your current way of life. This can actually help you during an unexpected trip, short trips or travel ideas that are not protected with your latest total plan.

Here are 5 basic questions that most people ask related to car insurance offers and programs, mainly for one day car insurance.

Who are certified for this type of short-term insurance?

You must be at least 21 years of age but not more than 75 years old to avail this temporary insurance for 1 day or even up to 28-day policy. one day car insurance tops such autos as cars, motorbikes and vans.

Can I use it outside the UK or even use for imported cars?

Both the US and UK require vehicles to be insured while on the road. However, there are certain rules and insurance plans that govern each country or point out that could be several in some ways to each other. For instance, if you are in the UK, you are not allowed to get car insurance for a single day for an brought in car.

You cannot also use your one day insurance policy outdoor the UK. There might be some exceptions to such rules as some companies are now giving extensions or affiliate groups for better business options but you have to check things out first before making a purchase to match your wants best.

Is it free to obtain line reviews online?

It is absolutely free to get prices and compare all other existing insurance plans and packages from several companies. There are many insurance companies giving free quotes and reviews with all other leading firms in the industry of car insurance.

You just have to get into your choices and compare as many rates as you want. However, do not be fooled with some websites that try to improve their business with exaggerated advertising plans. You have to check points very carefully and in no way react on an impulse. Make sure to get the right program or coverage that will fit to your models of excellent while thinking of your funds and your travel issues.

How do I process documents and cost?

The whole process is very simple here. Once you have decided what insurance choice and firm to offer with, you can now directly go to this specific company website and start your transaction. Application for one day car insurance is executed online in a very systematic way.

Technology can lower your car insurance premiums

2011-09-11T00:41:00.000-07:00

Your car-insurance premiums probably have little to do with how well you drive. Rates are usually based on statistical averages for gender, age, marital status, where you live and what kind of vehicle you drive.

But now technology may help you get a break on insurance premiums. Progressive’s user-based insurance, called Snapshot, is now offered in 37 stateS.

Here’s how it works: You plug a palm-size tool into the diagnostic port in your car (all cars made after 1996 have one), and it pulls data from the car’s computer and sends it to Progressive via a cellular network. The tool tracks the time of day you drive, your mileage, and your acceleration and braking rates. After 30 days, you may earn an initial discount; after six months, you send the tool back and become eligible for a permanent discount of up to 30 percent. There’s no cost to enroll, and Progressive cannot raise your rates based on the data collected.

Allstate has a similar program, called Drive Wise, currently available in Arizona, Illinois and Ohio. The tool collects the same data as Progressive’s, plus the number of times you exceed 80 miles per hour. You get a 10-percent discount at sign-up, which is replaced by a discount of up to 30 percent after your first policy period.

The UK Office of Fair Trading will be examining recent reports of major car insurance premium rises

2011-09-11T00:39:00.000-07:00

The watchdog agency has said that it will look to establish whether reports that motor insurance premiums have jumped 40 per cent in a year are true, and will also seek the reasoning behind the rise.

Officials also said that it would specifically look into any practices that raised any concerns about competition or consumers. The offices has called on insurance companies and other organisations and enterprises in the industry to provide evidence, including website for premium price comparison.

The agency also expressed that it was interested in reports that premiums in Northern Ireland were much higher than elsewhere in the UK, and said that it would examine provisions for replacing cars after accidents as well as add-on products offered by insurance firms.

OFT personnel are to gather evidence on the matter in the coming five weeks and are expected to table a report sometime in December. The findings will determine whether it will look deeper into rising auto insurance premiums.

The news comes after a report from the AA in April that said motor insurance prices had recently risen at the fastest rate ever seen, noting that premiums had jumped 40 per cent in only 12 months.

Spotlight on soaring car insurance costs

2011-09-11T00:20:00.000-07:00

High quality global journalism requires investment. The car insurance industry has had a busy week.

On Thursday, the Office of Fair Trading, the consumer watchdog, announced it would launch an investigation into soaring car insurance premiums.

Any motorist who has had to renew their car insurance recently will be fully aware of how big these rises have been. We’re not just talking about price increases of 10 or 20 per cent. Family members and friends alike have complained to me that their premiums have often doubled in price.

In fact, according to the AA’s British Insurance Premium Index, average insurance premiums have rocketed by as much as 40 per cent in a single year. To make matters worse, this follows a 30 per cent rise in premiums in 2010.

The consumer watchdog is set to examine whether there are any competition or consumer issues that need to be addressed. It will start collecting evidence of over-pricing and is expected to publish its findings in December.

So the OFT’s probe into insurance costs is likely to be welcomed by motorists up and down the country.

But that’s not the only good news for motorists this week.

On Friday, the government announced it would ban the referral fees paid by lawyers and claim management companies to insurers in personal injury claims.

The payment of referral fees has been repeatedly blamed by insurers as one of the main factors pushing car insurance premiums upwards.

Often termed the insurance industry’s “dirty little secret”, insurers will sell on the details of their customer’s car accident to a personal injury lawyer who will in turn pay the insurer a referral fee for doing so.

This then leads to an increasing number of personal injury claims being made as lawyers and claim management companies phone and send texts to the motorist encouraging them to sue for compensation.

Insurers are blaming this increase in claims for the rise in insurance premiums as they look to pass the legal costs onto the motorist, while pocketing the referral fees that led to that claim being made in the first place.

It is this system that the government wants to remove. Justice minister Jonathan Djanogly said: “The ‘no-win, no-fee’ system is pushing us into a compensation culture in which middle men make a tidy profit which the rest of us end up paying for through higher insurance premiums and higher prices.”

“Honest motorists are seeing their premiums hiked up as insurance companies cover the increasing costs of more and more compensation claims. Many of the claims are spurious and only happen because the current system allows too many people to profit from minor accidents and incidents.”

Auto insurance carriers turn focus toward direct channels

2011-08-12T00:31:00.000-07:00

More American consumers than ever are bypassing agents and buying auto insurance straight from insurers, prompting several big-name carriers to focus on a more direct approach to selling policies.

Financial data from several major coverage providers, coupled with new research on consumers' buying habits, show a fast-growing trend that is aided in part by consumers' increasing use of the Internet.

"Some of the larger auto insurance companies are approaching the point where they'll be selling more policies to drivers directly than through agents," says Cesar Diaz, CEO of quote-comparison site AutoInsurance.com. "Others, though, are behind the curve and are just now focusing on direct channels."

Progressive and GEICO set the trend

GEICO and Progressive jumped onboard the direct sales bandwagon early on, and that method continues to pay off for both carriers.

In 2005, slightly more than 34 percent of Progressive's personal vehicle policies were purchased directly, with the remaining bought through agencies. But the percentage of Progressive policies sold directly has steadily increased as the company has grown to become the fourth-largest car insurer in the country. Between 2005 and 2010, the share of Progressive auto policies sold directly grew annually by an average of 2.1 percentage points. As of June 2011, 45.1 percent of the company's active auto policies had been purchased through a direct channel. If the current trend is sustained, the majority of Progressive's policies will be sold directly by about 2013.

GEICO credits its direct-to-consumer model with helping to keep coverage costs low. The strategy seems to be working. The insurer maintains only a handful of agents, and it has become the third largest auto coverage provider in the country and the No. 1 direct-channel car insurer, according to Standard and Poor's.

Allstate shows desire to go direct

The company with the second largest share of the country's car insurance market, Allstate, is focusing on direct channels. The company announced in May it would be purchasing the parent company of Esurance, a completely direct-to-consumer provider, for about $1 billion.

Executives say the purchase will help Allstate compete with providers like GEICO and Progressive.

The fact that the second-largest vehicle insurer in the country is worried about competing with the third- and fourth-largest serves as a testament to the power of GEICO and Progressive's direct-sales approach.

Susan Kleinman, a director at marketing research company comScore, noted in a statement accompanying a recent report on consumer trends that, in the past few years, GEICO and Progressive have accounted for "more than 50 percent of all quotes submitted online."

Agents vs. computers

Statistics show that insurance shoppers more and more are turning to the Internet for policy purchases. In May, comScore released a report reflecting data from more than 1 million American consumers and a survey of more than 4,000 Internet users on their buying habits. The results indicated 61 percent had purchased a policy through an agent, either in person or over the phone. That represents a decrease of 6 percentage points from 2009.

Meanwhile, the share of respondents who purchased coverage through the Web increased by 5 percentage points, bumping its share up to 20 percent over just two years. The same report showed even greater long-term growth in the volume of auto policies purchased online. According to comScore, the annual volume increased by 82 percent between 2006 and 2010.

Why go direct?

In the early 2000s, analysts criticized coverage providers for failing to take full advantage of the Internet as a means of selling policies. The common logic was that consumers considered the buying process too complex to navigate on their own and that an agent could help walk them along.

But insurers recognized this apprehension and have reacted by filling their websites with resources that can help consumers make their own educated buying decisions. And the emphasis on direct channels may make cheap premiums easier to track down. Agents typically get a commission from insurers on every policy sold, but when consumers go directly to the insurer, commissions are out of the picture. This can lead to significant savings through the larger coverage providers and could result in lower rates for the average driver.

According to the comScore report released in May, 32 percent of respondents who had not purchased a policy over the Web before said they were likely to do so in the future.

Auto Insurance for Beginners

2011-08-12T00:28:00.000-07:00

If yоu arе unfamiliar with thе basics оf auto insurance and аre now forced intо thе process оf finding а policy, yоu cоuld рrоbаblу uѕe a bit оf help.

Fortunately, thе internet offers an abundance оf information tо hеlр you select thе policy or policies уou need, аѕ wеll аѕ research companies and compare rates tо maximize savings. Take а fеw moments to read thrоugh thiѕ article tо learn аbout the basics.

Auto Insurance Policies

Car insurance policies vary in order tо provide protection for those іn а variety of circumstances. You can tailor policies to fit yоur specific neеds оncе you havе met minimum requirements. Most states wіll require somе form of liability coverage tо protect уou іn case of bodily injury аnd property damage fоr which yоu arе responsible. Collision vehicle insurance сan bе purchased tо provide benefits to repair уоur vehicle іf you arе involved іn аn accident. Comprehensive coverage rounds оut yоur auto insurance bу providing benefits fоr repairs іn thе case оf damage due to a variety оf issues: fire, theft or vandalism. You may аlѕо want to conѕider (in ѕomе states іt іs required) uninsured/underinsured motorist insurance аѕ well аѕ personal injury protection coverage.

Auto Insurance Companies

Choosing thе best auto insurance company iѕ essential to finding quality coverage. Insurance companies аrе not all the same. There arе differences іn the way they handle claims, provide customer service, and (the big one) how muсh theу charge. Rates fоr car insurance аrе nоt controlled, so thеre are vast differences іn rates frоm company to company. Research is rаther easy, аs thеrе are plenty оf resources on the web tо hеlр yоu find a company thаt iѕ financially stable and that offers the quality оf claims аnd customer service уou аre seeking. Also, online rate quotes will hеlр you to compare rates from company to company tо ensure уou hаve access tо thе bеѕt rates available.

Auto Insurance Policy Elements

As уou examine a car insurance policy, thеre аre sеvеral items уоu wіll want tо pay partісular attention to. These include thе deductibles, monetary coverage limits, types оf damages covered, аnd cost-value versus replacement-value claims settlement. You саn manipulate eасh оf theѕе elements to increase your coverage and tailor it tо yоur specific needs. When gathering rate quotes, іf уоu manipulate theѕe elements for еach set of quotes, you can quickly get аn understanding of how much protection уou саn afford.

Online Auto Insurance Quotes

One great thing abоut thе internet is that yоu can shop fоr аnd purchase auto insurance from top companies in a matter оf minutes. Rate quotes аrе аvаilаble frоm thе most reputable companies ѕuсh аs Progressive, GEICO, Nationwide аnd others. The quotes arе free, non-obligatory, and tаkе only minutes tо gather. It will tаke abоut 15 minutes to fill out the form, and, аѕ long аѕ yоu provide accurate information, quotes that reflect hоw much уou will pay fоr a раrtісulаr auto insurance policy will be available.

If уou want thе beѕt coverage whіle аlsо saving money, yоu ѕhоuld gather at lеast 5 rate quotes. The mоre quotes уou gather, thе mоre уou wіll sеe glaring differences іn rates. Hundreds оf dollars pеr year can bе saved simply bу comparison shopping.

Stamping out of the Women’s Car Insurance

2011-03-09T04:17:00.000-08:00

The court has already decided to all intents and purposes to bring to an end the diverse rates charged to men and women.

Women’s car insurance was already eradicated in which, prejudice opposed to them will still be present including the truth that on wellbeing, existence or tour insurance according on sexual category will be dropped as well.

Setting the women’s car insurance aside, Malta Confederation of Women’s Organisations representative Ms. Renee Laiviera, shared that the drawbacks on wellbeing and existence guidelines is already prevalent around the world. Prejudice in women is also present at times on personal annuity since men have a shorter expectancy of existence.

The National Council of Women representative, Grace Attard not only greeted the decision of the court with open arms, but also with an open mind wherein the assembly approved so long as it was functional across the board together with the insurance about wellbeing. Women’s car insurance, although phased out of the insurance industry, a provisional exclusion authorized the utilization of sexual category as a basis for the estimation of payments and remuneration if pertinent and truthful numerical information are employed and made available.

How to Get Low Cost Teen Auto Insurance

2011-03-09T04:16:00.002-08:00

Once kids hit the adolescent stage, their parents start popping maintenance pills for hypertension. This may be a bit of an exaggeration but we can’t erase the fact that as soon as teens reach the age where they can legally drive, parents can only kiss low-cost car insurances goodbye. It’s hard enough to continually remind your child about the dangers of irresponsible driving. But don’t lose hope. There is a way where parents can get low-cost car insurance.

Insurance companies can give lower rates if your kid/s is/are performing well in school. Good academic performance means that the child is capable of exercising good responsibility.

Regardless of whether you have a teen driver in the house or not, taking a higher deductible works well for getting cheaper car insurance. You can go from a $250 deductible to a $1000 deductible, because you will find that it will definitely lower your rates.

Some sneaky insurance company would sometimes automatically assign the youngest driver to the most expensive vehicle. This can be really expensive. A good advice is to check with your insurance company so that you can assign your kid to a less expensive car.

Lastly, you can get discounts if your kid/s will sign up to supplemental driver’s ed classes. This can definitely lower down your insurance rates.

Rules on How to Find Low-Cost Student Car Insurance

2011-03-09T04:16:00.001-08:00

If you are a student and in need of car insurance, most likely you will find that most the policies that is usually offered can be quite expensive. And yet, there it is still a chance that you can find policies that are affordable. Here’s how.

1. While looking for insurance, check if the company offers discounts. Some companies usually do not offer discounts to students.

2. Improve your academic performance. Usually if a company finds out that a student has good academic performance, it surely means that he/she is capable of driving responsibly. Although sometimes this fact has no reflection over a driver’s performance.

3. Taking a Driver’s ed course initiates effort and sincerity that you want to try to be a good, responsible driver. The insurance company may provide you with low-cost rates if they find out that you are trying your best.

4. Girls are always assumed to be better drivers, and so they mostly get cheaper policies.

5. Driving an old car is better than driving a spanking new sports car. Why? Because the more swanky your car is, the same thing goes with insurance. We’re not saying that you get a beat up old bug, but you get the gist. The lesser the value of the car, the cheaper your policies.

Using Social Media in Car Accident Claims

2011-03-09T04:15:00.000-08:00

With the increasing popularity of social media and its burgeoning influence in every aspect of one’s life, can now be used in settlement negotiations. If a person suffers from an accident, it is important that he and his family must be well compensated. If you know how to look, you can definitely use social media when you try to obtain your claims.

In order for the victim to get enough compensation, one should need to determine how much this accident has crippled his way of life. For example, if a victim is an athlete, and then the accident has cost him to lose or cripple a part of his body and could no longer perform in the same manner previous to the accident, they can gather evidence through social media. They can gain access to his account, get videos and pictures where they can get the evidence that is needed to prove that the accident indeed has cost him his way of life.

If you are sceptical about a claimant’s statements, you can always have his social networking site to get the information that you need. The internet contains tons of information that can definitely aid in supporting a claimant’s statements. It comes to no surprise that social media has definitely influenced our way of life, even in the legal world.

Automobile Insurance Rates Kept Low with Safe Winter Driving Tips

2011-02-12T20:10:00.000-08:00

BIRMINGHAM, Ala., Feb. 11, 2011 /PRNewswire/ -- The unpredictable weather this year has caused many fair-weathered states to experience a bit of winter's snowy wrath. Many residents are unfamiliar with driving techniques for this type of hazardous weather, which can lead to accidents and increased liability and full coverage auto insurance premiums. Here are safe winter driving tips to reduce accidents and coverage rates.

1. Drive slowly. Leave early to avoid speeding, especially when conditions are hazardous. When there is snow and ice on the road, traction is reduced and so should the speed of a car. If the weather is exceedingly dangerous, save unnecessary trips for when conditions improve. The best way to prevent an accident and keep automobile insurance rates low is to avoid driving when unneeded.

2. Increase the follow distance. A three second follow distance from the car ahead should be followed in normal conditions. When roads are slippery or at nighttime, this time should be increased to at least five seconds. Rear-ending someone will be an at-fault accident and will likely increase the automobile insurance prices of a policy.

3. Use brakes effectively. If brakes are slammed on quickly, the car will usually spin out of control. Drivers should anticipate slowdowns and gently apply pressure. Most cars today have anti-lock brakes that should not be pumped but should have consistent pressure applied.

4. Be aware of where ice forms. This is usually on overpasses, bridges, intersections and shady areas. Slow down and remain alert. If the car hits a patch of black ice, remove pressure from the gas pedal and do not brake. Do not overcompensate with the steering wheel; rather, make small and slow adjustments. When the car regains traction, reduce speed and stay alert.

5. Do not rely too heavily on technology. Even if the automobile has four-wheel drive, new winter tires, electronic stability control and anti-lock brakes, good driving techniques still need to be employed.

Do you need rental car insurance?

2011-02-12T20:05:00.000-08:00

Many people think they have adequate insurance coverage when driving a rental car, either through their personal car insurance policy or via extended coverage on a credit card. In many cases, that's not true.

Without adequate coverage, you could be held responsible for all or some of the expenses associated with an accident -- even if the accident is deemed not your fault or is the result of a defect associated with the car. And the possibility of driving an unrepaired rental car that's been recalled is substantial. A recent report by the National Highway Traffic Safety Administration said that 30 percent of recalled cars in the U.S. aren't repaired, since there is no law requiring recalled cars to be repaired.

Determining if you have adequate rental car insurance coverage is not as simple as confirming you have rental car coverage on your personal car insurance policy. This coverage can vary widely by state and insurer. For example, drivers who have some rental car coverage on their personal car insurance policy may find that it only covers rentals when your car is in the shop -- but not if you rent a car for travel. Other policies may not provide enough coverage due to policy limits. For instance, in the event of a total loss you may be limited to the value of your personal car, which may not be enough if the car you are renting is worth more.

Many credit card companies offer the "perk" of added rental car insurance when the cars are rented using that specific credit card. However, the most common perk is the reimbursement of your deductible, which is usually only reimbursed after your insurance company settles the claim.

If your credit card company provides rental car coverage beyond reimbursing the deductible, make sure you read the fine print carefully. Some cards require you to pay the bills first and will reimburse you later. Some limit or don't cover cars that are rented for an extended period of time, and some credit cards won't cover certain types of cars that are rented.

Even if you do have adequate coverage, you will still be responsible for your deductible, if applicable, and your coverage will be limited to the coverage and amounts you have purchased. If this coverage is not enough, you will be held liable for the remainder by the rental car company and potentially by any injured parties.

If you learn that you are not adequately covered when renting a car, you can purchase additional coverage from the rental car company. Most rental car companies offer a wide variety of coverage, ranging from those to cover the deductible on your personal auto insurance policy to extensive coverage that would protect you, your passengers, the rental car, your belongings and the other people and cars involved. Ask about these optional products and be sure to read all the documentation to understand the coverage you are purchasing before you sign the rental agreement.

Senate passes lower car insurance levels

2011-02-12T20:04:00.000-08:00

MADISON — The state Senate passed bills Tuesday that would lower minimum levels of car insurance and make it more difficult to approve of sales and income tax increases.

Car insurance would still be required under the bill passed on a bipartisan 25-7 vote, but the levels of coverage required would drop. Democrats approved higher limits in 2009 when they controlled the Legislature. Most of the changes took effect in 2010 after more than 20 years of no changes.

The higher requirements were a popular campaign target for Republicans who won control of the Legislature in the November election, and they passed the bill quickly. Republican Gov. Scott Walker has said he supports the lower minimum and will sign the bill if it’s passed. It cleared the Assembly last week on a preliminary vote, but Democrats used a procedural move to delay a final vote until later this month.

Medical profession most likely to claim on their car insurance

2010-11-04T03:39:00.001-07:00

The medical profession are the most likely to make a claim on their car insurance, making up 5 out of the top 10 professions who’ve made a claim on their motoring policy within the last 12 months.

The survey was carried out by price comparison website, confused.com, which questioned a range of drivers with different occupations to discover if profession has a bearing on the number of claims made.

GPS topped the poll, with 33% of them making a claim on their car insurance policy in the last year. Psychologists and district nurses were next in line, with 30%, while hospital doctors made up 29% of claimants last year, and 27% of dentists and opticians. Surprisingly police officers were also high up on the list, with 26% of those questioned having made a car insurance claim within the last 12 months.

In contrast, white van men, painters and decorators, mechanics and other manual professions featured much lower down on the list making up 85% of the bottom 20 of the professions least likely to make a claim. In the last year only 10% of construction and farm workers have made a claim, but car valets were found to be the profession least likely to claim, with just 9% having done so in the last year.

Information About CAR INSURANCE

2010-09-18T00:38:00.002-07:00

Making a Claim

Before making a claim, ask your insurer if in the event of a theft, whether your insurance includes cover for personal belongings or replacement locks and will they immediately authorise repairs from recommended agents. It's also worth checking whether a courtesy car is included in the price quoted and for how long so that you can make necessary preparations.

Most car insurance companies will have a claims helpline that generally operates for most hours of the day. Adding roadside assistance into your policy will give you access to emergency help lines that operate 24/7.

It is important to be honest when answering all questions that your insurer may ask. Do not give any false information as it will, more than likely, come back to haunt you.

Costs

When it comes to deciding which policy is most catered to your need and what benefits are right for you it can often help to understand the perspective of the car insurance company. There are certain factors that will contribute highly towards the cost of your policy such as:

Age and gender – Younger drivers and learner drivers are less experienced and therefore considered more likely to be involved in an accident. Women are now offered lower premiums by an increasing amount of companies, as statistics prove they are less accident-prone than men.

Insurance Group – Most cars are given an insurance group ranking based on the level of risk involved with each car type and group (often based on likely repair costs). High-powered performance cars will generally be in the highest group (up to group 20) whereas a small car will be generally lower ranked and therefore should receive cheaper car insurance.

Cost of vehicle – If you drive a classic or performance car you can expect to pay a higher premium as these cars generally cost more to repair and maintain than others.
Engine size – Generally, the more powerful the car, the more likely it is to be involved in a high-speed accident.

Your location – if you happen to live in an area deemed to have a high crime rate or high density of traffic then you can expect to pay more as your car will be classed as more susceptible to a theft or an accident respectively.

Your history – If you have been involved in previous accidents then your cover will be more expensive.

Cutting Costs

These are just some of the ways to reduce your premium and get a more competitive quote:

No claims bonus – The longer you go without making a claim the better, as you will be building up your 'no claims bonus' (sometimes known as 'no claims discount'). In some cases a five-year no claims bonus can save you as much as 65% on your premiums.

Excess charge – Many companies issue policies that have a 'compulsory excess' (and sometimes a 'voluntary excess'). This is the amount of money you are willing to pay in the event of an accident, e.g. if your excess was £100 and the total cost of repairs was £300 then you would pay £100 and the insurance company would also pay £200 but if the cost of repairs was £100 or lower you would pay the total cost. The more money you're willing to pay as excess, the lower your premium will become.

Car security – Installing security (alarm, immobiliser or tracker) can reduce the cost of your premium, as it will lessen the likelihood of it being stolen.

Young drivers – Adding a parent to your insurance, or an older, more experienced driver, can reduce costs.

Parents – The addition of one or more teenagers to your policy can significantly increase the cost of your policy.

Modifications – Alloys, bumpers, window tints, racing seats, colour changes and adding a spoiler are all modifications that could deem you as a ‘boy racer’ and add to your premium.

Shopping around

Call centres and busy high street dealers can make searching for car insurance policies a long and tiring process. Thankfully the internet has made shopping around more simple and efficient. In addition, some insurers will offer as much as a 20% discount to people who buy their car insurance online, plus there is now a wide range of comparison tools available online to help you pick the most suitable deal.

When researching and buying car insurance there are four main options:

Insurance Brokers – Aim to deliver the customer choice by utilising their computer systems, but can only present the insurers with whom they have deals.

Direct Insurers – Cut out the middleman as commissions paid to brokers can be saved if the insurer gives the benefits to you. Include: Direct Line, e-Sure, Admiral, Hastings , 1st Alternative, Churchill, Privilege, MoreThan and Elephant.

Branded Providers – Established names who have added insurance to their extensive list of products, including: Tesco, Virgin Money, MBNA, Sainsbury's, Marks and Spencer and the Post Office.

Full Search Provider – A full search provider provides you with a full search of the market that includes a list of potential car insurance providers.

Car Insurance

2010-09-18T00:38:00.001-07:00

In the UK, car/motor insurance is compulsory for any person intending to drive or operate a motor vehicle and should not be neglected.
Insurance policies range from the basic 'third party' to 'fully comp', but shopping for the right policy at the right cost from the right provider can prove to be a very long and overwhelming challenge.
Luckily the internet can save a lot of time and hassle as it contains hundreds of car insurance search tools and comparison sites that allow you to compare car insurance quotes from a wide cariety of car finance companies.
Types of Cover
It is illegal to drive in the UK without insurance and therefore the minimum standard of cover you can take out is 'third party', which covers:
Liability for injuries to others, including passengers.
Liability for damage to someone's property.
Liability of passengers for accidents caused by them.
Liability arising from the use of a caravan or trailer while attached to the car.

After 'third party' comes 'third party fire and theft' which is similar to 'third party' with the addition of a payout being made if a driver's vehicle is stolen or set on fire.
A fully comprehensive car insurance policy is widely regarded as the 'top of the range' policy and will payout for all of the areas covered by third party fire and theft with the addition of paying for any damage to your own vehicle regardless of who caused the accident. It also covers loss of, or damage to, personal effects in the car.
Business car insurance, also known as 'commercial car insurance' meets the needs of small businesses with company vehicles.
Though polices vary between individual car insurance companies, benefits generally include a courtesy car, free cover for driving in Europe and, in some cases, legal aid as long as your are not at fault for the accident.

Car insurance policyholders told to check registration plates

2010-09-18T00:37:00.001-07:00

Car insurance policyholders have been reminded about the legislation surrounding number plates and how they are displayed.

Drivers in Essex might find they are pulled over for showing alternative fonts, spacing or colours instead of the regulation figures that are bold on a plain background.

Adam Pipe, casualty reduction manager for Essex Police said: "The main problem with misrepresented number plates is that we cannot quickly identify a car or its owner if it is stolen or used in crime."

Indeed, he added that the issue is compounded by the fact that automatic number plate recognition technology does not work when a non-regulation item is in place.

Motorists could also do well to fit anti-tamper screws to their registration plates, as criminals have been known to fit them to stolen cars to change their identity - a practice which sees them get away with speeding fines and driving off from petrol stations without paying.

Compare Car Insurance Rates with Your Head, Not Your Heart

2010-09-18T00:35:00.001-07:00

Americans are famous for their brand loyalties – but as they are hopefully discovering, that loyalty has pretty much been a one-way street. Citizens United v. FEC notwithstanding, corporations are not people, have no feelings and aside from their public image, care for nothing but the bottom line – and you, too, should care only about the bottom line, especially when you compare car insurance rates.

Unfortunately, too many drivers let loyalty and inertia get in the way of finding the lowest auto insurance rates.

The Competition is Brutal – For Insurers

While too many industries have been allowed to consolidate into virtual monopolies over the past thirty years, the property and casualty insurance industry has been a notable exception. Yes, there are huge corporate conglomerates (Berkshire-Hathaway is one example; it began as an insurance company but now controls many business entities that have nothing to do with insurance), but there are also small, regional insurers – and everything in between.

And they’re all locked in brutal competition for the consumer dollar.

Whether you pay by the month or bi-annually, your policy comes up for renewal twice a year. By failing to take advantage of this opportunity to switch insurance companies, drivers may be losing out on the chance to get cheaper car insurance, potentially wasting hundreds of dollars every year.

The Old Marketing Ploy

Merchants from street vendors to trans-national corporations have played the same game since the Babylonians invented modern capitalism three thousand years ago: lure customers in with low prices, then turn around and raise them once they’re hooked in.

Many auto insurers are no different; they attract new customers with inexpensive auto insurance rates initially, then raise them later on, figuring that those customers won’t bother to compare car insurance quotes elsewhere.

It is true that in some areas and for many drivers, auto insurance rates are on the rise – largely due to increased demand for larger profits from the private health care industry (which affects personal injury claims) as well as more cars on the road (increasing the number of accidents) and a rising rate of fraudulent claims by people desperate for money in today’s carefully-engineered economic disaster. However, if you have been honest and a careful driver, who has not had any moving violations recently, nor made any large claims, it’s worth your while to spend a few minutes on the World Wide Web to find the rates.

Haggle!

It’s also possible that if you’ve been a good customer and haven’t made any claims or had serious moving violations or an accident in the last few years, your present insurer will make you a deal – if you confront your agent with a number of better quotes from competitors.

On the other hand, remember that your insurance needs are unique, and a cheaper policy may not necessarily be the best car insurance for you. For example, if you live in a small town with a low crime rate and drive an older vehicle, you probably don’t need theft coverage.

Car insurance costs pushed up by administration fees

2010-09-18T00:34:00.001-07:00

Motorists are paying more for car insurance as a result of rising administration fees, according to Defaqto.

The independent financial research company found providers are frequently adding these fees to their products and that the scale of administration fees imposed on consumers has also risen dramatically since 2004.

In the past six years, the percentage of car insurance policies charging setup fees has increased from two per cent to seven per cent, while the number adding adjustment fees has shot up from 17.3 per cent to 67.1 per cent.

Mike Powell, insight analyst for general insurance at Defaqto, said: "There has been a noticeable and significant trend for motor insurance policies to charge administration fees for features that were in many cases previously standard services. Many consumers will be unaware that they may actually be paying a set up fee or a renewal fee for their motor insurance . Such fees will be detailed in the accompanying documentation or in the renewal quote ."

Compare car insurance to overcome rising premiums

2010-07-25T21:13:00.002-07:00

Car insurance premiums are rising at their fastest-ever rate, making it all the more important that drivers compare car insurance policies to find the cheapest deals.

According to the latest AA British Insurance Premium Index, premiums rose by more than 11% during the three months to June 30th and the average annual comprehensive car policy now exceeds £704.

This is the biggest increase since the index was first collated 16 years ago and is being blamed on fraudulent claims.

"The latest British Crime Survey (published July 15th) suggests that crime levels are falling, but crucially it misses a new 21st-century wave of fraud such as providing false information and claiming for non-existent personal injuries," said AA president Edmund King.

"Last year, the cost of meeting claims exceeded premium income by 22% and the spiralling increases we're seeing show that insurers are trying to fill that chasm," he added.

Consumers can save money by performing a car insurance comparison and locating the best-value deals.

However, the cheapest policies may not provide the same level of cover as pricier options, and M&S Car Insurance recently advised drivers attending summer festivals to check they have adequate cover for their journey.

One in five young drivers 'have raced on roads'

2010-07-25T21:13:00.001-07:00

The majority of young people have been a passenger in a car driven by another young person at more than 40mph in a 30mph limit, a survey has found.

Research by road safety charity Brake and FedEx Express questioned 2,800 youngsters about their experiences of driving.

Nearly one in four (23%) admitted that they had raced on a public road, while 10% had overtaken a vehicle without being able to see what was coming in the other direction.

Brake campaigns officer Ellen Booth said: "Many young people get a thrill from driving fast with their friends in the car, but because of the way young people's brains develop, they often don't yet have the ability to control their thrill-seeking tendencies."

Young motorists who crash while driving at speed will almost certainly need to compare car insurance offers more carefully in the future, as the incident will lead to higher premiums.

However, speeding-related incidents can also lead to the death of drivers, passengers, nearby pedestrians or people travelling in other vehicles.

"Brake is urging the government to take steps now to stop more families suffering the devastation of the death of a teenager," Ms Booth added.

The road safety charity recently urged the government to take a zero tolerance approach to drink driving by banning the consumption of any alcohol before getting behind the wheel of a car.

Safety system could save car insurance customers

2010-07-25T21:12:00.000-07:00

Car insurance customers should look for ESC on new vehicles.

Take-up of a car safety innovation designed to prevent dangerous skids is low in the UK because most car insurance customers do not even know of its existence, it has been claimed.

A survey of 16,000 motorists in June by The AA and polling company Populus found that just two-fifths of drivers know about electronic stability control (ESC).

The computerised technology works by detecting loss of steering control and automatically applying the brakes to individual wheels, thereby minimising skids.

Experts claim that the system could save 250 lives a year in the UK and it is claimed to be the most important car safety innovation since the seatbelt.

However, the AA poll found that nearly 28% of 18 to 34-year-olds regard ESC as a pointless accessory, despite the fact that this age group could benefit the most.

A campaign is now trying to improve awareness and encourage car insurance customers to ask for ESC when they buy a new car.

AA president Edmund King observed: "Other optional extras like fancy wheels, paint schemes and other add-ons may make the car look more flash, but do nothing in a crash."

Tips on how young drivers can keep the cost of insurance low

2010-06-13T01:48:00.000-07:00

The cost of insurance is the biggest hurdle facing young drivers according to a study carried out by I-Kube who specialise in the provision of cover for new drivers. 90% of those questioned as part of the survey said that the cost of cover was the biggest barrier to getting on the road, the expense of buying a car was voted as the second biggest obstacle. With the cost of car insurance proving an issue for young drivers, here are some helpful hints to keep the cost of cover down.

Shop around to find the best deal. Use price comparison sites, but also seek out companies which specialise in cover for young drivers. Finding a policy which is most suited to you personally will help to bring the cost down.

Go with an insurer which recognises Pass Plus. By undertaking this driver training course, which is aimed at those who have recently passed their test, you could see your insurance premiums drop by up to 35%

Buy a car which you can afford to insure. As your first car, it’s a wise decision to opt for a vehicle which is in the lowest possible insurance group in order to keep your cover low. Before you actually buy your first car, get a few insurance quotes so you can determine whether or not you can afford to insure it.

Add another driver to you policy. By adding a more experienced driver to your car insurance policy such as a parent, you could see your premiums decrease. However you must remain as the main driver of the vehicle not the older driver. Falsely naming a parent or more experienced driver as the main driver on a policy is known as “fronting” and is against the law.

Follow these tips in order to find the cheapest car insurance policy for your first car.

All Car Insurance And Home Insurance Costs Could Rise

2010-06-13T01:47:00.000-07:00

Currently IPT is charged at 5% on all car and home insurance (contents and buildings) policies.

It’s charged at 17.5% on all travel insurance policies too but there is no IPT charged on Life Insurance policies.

But as the Government tries to reduce the financial debt of the country, IPT on such as car and home insurance could be doubled to 10% or rise even further.

According to the AA’s British Insurance Premium Index, the average cost of car insurance is currently just under £583 with an extra £29 added for IPT. If the tax rose by 10%, it would add almost £60 to the average policy cost.

The worry is that insurance premiums are predicted to rise significantly over the next year anyway. Increasing IPT might be the ’straw that breaks the camels back’ and means many families simply decide they cannot afford to buy insurance cover.

Of course you need to buy car insurance at it is a legal requirement.

EVERYONE with an insurance policy in UK could be forced to pay £135 premium tax

2010-06-13T01:46:00.000-07:00

Anyone with home or car insurance could be stung by a tax levy of up to £135 in the emergency Budget, experts warned yesterday.
They fear the Treasury will increase insurance premium tax, which is levied on the most common types of cover.
With the cost of many policies expected to soar even without taking the tax into account, some experts claim premiums could rise by as much as 30 per cent.
They believe it could trigger a massive 'insurance gap' as cash strapped families decide they simply cannot afford to pay for cover.
At present, IPT is charged at 5 per cent on all car, contents and building insurance policies.
But this could be doubled to 10 per cent, or more than trebled to 17.5 per cent, as the Government battles to slash the country's financial black hole.
IPT - currently worth around £2.25billion a year to the Exchequer - is already charged at
17.5 per cent on travel insurance, but is not charged at all on life insurance.
The average cost of a car insurance policy - before IPT - is currently £583 a year, according to the latest research from the AA's British Insurance Premium Index.
With IPT charge at 5 per cent, this adds an extra £29 on to the policy. If the levy was raised to
17.5 per cent, the tax charge would rise to £102. At the top level, the average contents insurance would rise from £66 (including 5 per cent IPT) to £74, and the average buildings insurance would jump from £124 to nearly £140.

Anyone with average policies for car, buildings and contents insurance would therefore pay a total of £135 in IPT, £96 more than now.
Added to this is the fact that some types of cover, such as motor insurance, have soared by an average of 22 per cent over the past year, while the AA is already predicting that average premiums will rise again this year by between 15 and 20 per cent.

German car insurance prices up, market murky -HUK

2010-03-20T21:11:00.001-07:00

FRANKFURT, March 17 (Reuters) - Insurer HUK Coburg, vying with Allianz (ALVG.DE) for leadership of Germany's 20 billion euro ($27.6 billion) motor insurance market, is raising prices but says it's too early to say the industry's price war is over.

Financials

"We are raising our tariffs by a single-digit percentage on average," a spokesman for HUK, the German mutual insurer, said on Wednesday.

"We don't necessarily see this as the end of the price battle," the spokesman added.

HUK's price changes go into effect on April 1 and the single-digit percentage rise is relative to the prices prevailing at the start of 2010.

The rise was in response to higher damage claims and it cannot be excluded that prices might decline again later in the year, as they had done in past years, the spokesman said.

The comments dampen repeatedly expressed hopes for a turnaround in the segment, which has been a drag on property and casualty insurance performance in Europe's biggest economy.

Total motor insurance premiums have drifted downwards for years in Germany as the price war pitted listed insurers such as Allianz, AMB Generali (GASI.MI) and AXA (AXAF.PA) against not-for-profit mutuals like HUK Coburg.

Allianz reported last week that its underwriting loss in the segment widened in 2009 from 2008, while premium income fell 3.4 percent to 3.3 billion euros. [ID:nLDE62A25S]

Prices were at the level of 20 years ago, Allianz said.

HUK has been gaining on Allianz in terms of the total number of vehicles it insures, with each company now insuring around 8.5 million vehicles.

A survey in Germany's Handelsblatt newspaper released ahead of publication on Thursday pointed to tariff price rises in double-digit percentages for some types of policies.

The growing cost of hidden insurance charges

2010-03-20T21:10:00.001-07:00

Consumers have been urged to check the small print when renewing their car and home insurance after accusations that the industry is increasingly turning to hidden charges to boost profits during the downturn.

Aviva recently announced profits of £1.3 billion last year, up from a loss of £885 million in 2008. Meanwhile, AXA’s profit was €3.61 billion (£3.2 billion), up from €923 million. At the same time, consumer groups report an increase in complaints about hidden charges, extortionate interest rates and policy exclusions.

James Daley, of Which?, the consumer organisation, says: “Consumers need to be more careful than ever when buying insurance today. We’re concerned about the growing tendency for insurers to charge customers for making relatively minor changes to their policy, such as updating their address or adding a named driver. Charges should be proportionate and should relate to the actual cost involved. This should be a matter of pence, not pounds.”

Here Times Money rounds up the pitfalls to look out for in each of the biggest insurance categories.

Car insurance A significant hidden cost on car claims is policy cancellation fees of £25 to £50 or one month’s premium. These fees are often higher for first-year policyholders. Moreover, some insurers insist that those who cancel policies pay back previous claims, citing “breach of contract”.

Ian King, of The Times business news desk, recently had to pay £101 to Kwik-Fit Insurance Services for the privilege of cancelling his car insurance policy.

When he queried the charge, he was told that the majority was commission payable to the insurer in the event of a policy being cancelled more than 14 days after it started.

Kwik-Fit also levied “an instalment charge” because he had been paying monthly, explaining that his payments to date were for the insurance, with the instalment charge — described as “interest” — only payable towards the end of the policy.

Mr King says: “The way they charge interest appears identical to what the credit card companies were doing until the Government recently told them not to. Kwik-Fit told me that this was all in the policy document. However, given that its policy documentation is the size of an Argos catalogue, it knows very well that few customers will bother ploughing through it.

“The company hides behind the small print hidden in the documentation whenever its customers query why they are being gouged.”

Insurers often charge for policy amendments, too, such as £25 to change your address or add a named driver. They may also increase a policyholder’s premium based on a change of postcode. For example, one policyholder wrote to us when she was charged an additional £510.16 on the remaining six months of policy with Sainsbury’s Bank because she moved from the B17 postcode to the B30 area. Another correspondent was charged £10 to change her name on a policy after getting married.

Martin Lewis, of Moneysavingexpert.com, says that the many policyholders who forget to report such changes are at risk of invalidating their cover. “It is so easy to forget when you’re preoccupied about moving house or whatever, but it’s worth being extra careful as you risk the consequences of driving uninsured,” he says.

One Times Money reader forgot to tell his insurer that he had been made redundant when he came to renew. When he later tried to claim after a minor accident, he was told that his cover was void. Having been “refused cover” added £150 to his next policy with a different insurer. He says: “It is especially irritating as I do a lot less mileage now than when I was in work.”

Car insurance policies also routinely feature high excesses — to the extent that experts advise drivers to avoid claiming for any damage less than £500 because the payout, after excess, is unlikely to be worth the loss of a no-claims disount. There are often significant exclusions, too. For example, some policies are worded to cover leisure driving, but not commuting. And most standard examples will not cover damage from “wear and tear”.

Home insurance Insurers are busy introducing higher excesses on high-frequency claims, says Julie Owens, of the comparison site Moneysupermarket.com. “There might be a £250 excess for ‘escape of water’, for example, on a policy where the standard excess for most claims is £100. Subsidence is another big issue where policies have a separate excess from their standard. In many cases, this excess is now set at above £1,000.”

Five auto insurers must recalculate customer bills

2010-02-21T01:36:00.000-08:00

The Massachusetts attorney general has settled with five auto insurance companies that may have charged higher rates to customers because of inaccurate driving-record information.

The settlements, announced yesterday, total more than $100,000 and involve Metropolitan Property & Casualty; Liberty Mutual Insurance Co.; Peerless Insurance Co.; Plymouth Rock Assurance Corp.; and Pilgrim Insurance Co.

The state said the companies failed to update at-fault determinations reported to the Comprehensive Loss Underwriting Exchange, a private database used to establish driving histories, after the state’s Board of Appeal reversed those findings. That may have resulted in higher rates and premiums for drivers with the five insurers.

“We are pleased that the settling insurance companies cooperated with our review and agreed to work with our office to fix this problem,’’ Attorney General Martha Coakley said. “If this problem had not been caught and corrected, this incorrect data might have plagued consumers and inflated their premiums for years to come.’’

As part of the settlement, the insurers will pay the state more than $100,000 within 10 days. They will have 120 days to identify customers who may have been overcharged and recalculate rates. This month, the attorney general’s office had a similar settlement with Commerce Insurance Co., which agreed to pay the state $40,000.

Factors influencing auto insurance rates

2010-02-21T01:35:00.000-08:00

Insurance companies and industry groups are saying the recall of more than 8 million Toyota cars and trucks shouldn't have an impact on insurance rates. The price of auto insurance is determined by many factors, and isn't limited to just the model you drive, the cost to fix it and its overall safety record.

The Insurance Information Institute, a trade group for the insurance industry, said the average driver pays about $850 a year in insurance. Your bill can be influenced by several factors:

DRIVING RECORD

The more accidents and serious traffic violations you have, the more you'll pay. You may also pay more if you haven't been insured for a number of years.

MILES DRIVEN

The more miles you drive, the more chance for accidents, the more you'll pay. If you drive less than 10,000 miles a year, you will pay less. Some companies will give discounts to policyholders who carpool.

WHERE YOU LIVE

Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.

DRIVER'S AGE

Mature drivers generally have fewer accidents than less experienced drivers, particularly teenagers. So insurers usually charge more if teenagers or young people below age 25 drive your car.

THE MODEL

Cars that cost more, have high theft rates, cost more to repair or have poor safety records cost more to insure.

DRIVER'S CREDIT

Some insurance companies use credit scores as a factor in insurance rates. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. Regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.

AMOUNT OF COVERAGE

The larger your policy, the more you'll pay. However, you may qualify for discounts. Some insurance companies offer discounts if you have your homeowners and auto insurance policies with them, for example.

The Associated Press

How can I save money on car insurance?

2010-01-10T02:50:00.002-08:00

There are a variety of considerations when reviewing your car insurance policy. Age, credit history, vehicle type and other factors weigh in.

So some things you can control, others you can't.

SmartMoney Magazine produced "10 Things Your Auto Insurer Won't Tell You." Here's some of what the magazine found:

• Avoid sports cars and opt for a car with a lower engine capacity.

• Ask about commissions, and have prospective agents explain their recommendations.

• Since many insurers do factor in credit history, it's important to get your credit report from each of the three bureaus — TransUnion, Experian, and Equifax — and check them for errors before you shop for insurance.

Three Easy Ways To Save On Your Car Insurance

2010-01-10T02:50:00.001-08:00

NAPSI)-While looking for ways to save money, many Americans may overlook their car insurance premiums.

That could be a costly mistake. Taking a few minutes to review and adjust your auto insurance policy could save you hundreds of dollars per year.

Saving on your car insurance is easier than you might imagine. Here are three ways to reduce your costs, as well as an estimate of potential savings based on the national median rate of about $1,400 per year reported by InsuranceRates.com. If you pay more than the median rate, you could save even more.

1) Take a hard look at your deductible. According to the Insurance Information Institute (III), raising your deductible from $250 to $1,000 could reduce your collision and comprehensive coverage costs by up to 40 percent. You'll incur higher costs should you need to file a claim, but the amount you'll save on your premiums may be well worth it.

Estimated Savings: $170 per year

2) Combine your auto insurance policy and either home or renters insurance policy with a single insurer. According to the III, converting to a multiline policy could save you as much as 15 percent on your auto premium. Plus, you'll have one fewer bill to pay each month.

Estimated Savings: $210 per year

3) If you can afford to, pay your auto insurance premium in one lump sum. Many insurers charge a fee to break up your premium into monthly payments, and even a few dollars a month could amount to a hefty surcharge.

Estimated Savings: $60 per year

In addition, make sure you shop around and speak with agents from several different companies. Insurance providers often specialize in different types of drivers, and depending on your personal circumstances, it's probably worth your while to compare quotes.

Car Insurance firm advise motorists this Winter

2010-01-10T02:27:00.000-08:00

As the big freeze grips the country, de-icing the car in the morning can become quite a chore which is why so many drivers leave their vehicle unattended and running while they nip back into the warm. The Association of British Insurers (ABI) has tapped into this and released new guidelines for motorists who are concerned about the safety of their cars.

One of the biggest problems during this time of year is opportunist thieves who spot unattended vehicles and take a chance. In order to avoid the loss of vehicles and belongings, the ABI has recommended that driver’s stay inside their cars while it warms up and the windows clear.

The latest information comes hot on the heels of the shocking revelation that 27 cars had been stolen in just two hours as drivers left their vehicles unattended in this manner. The sudden crimewave took place in Lancashire, but it’s a countrywide problem.

Nick Starling, Director of General Insurance, explained that while the cold weather may put motorists off when it comes to hanging around outside, it certainly doesn’t bother would-be thieves!

“It only takes seconds for thieves to strike. Stay with your vehicle while it warms up, so that it’s you that drives away in a warm car, not a thief” he said.

Twenty-Four Charged in Cross-State Car Insurance Fraud Case

2009-12-28T19:56:00.000-08:00

HARRISBURG — A total of 24 people, including 17 New York residents, six from New Jersey and one Pennsylvania resident, have been charged with insurance fraud and other related offenses after falsely claiming to be Pennsylvania residents in order to obtain substantially lower rates on their automobile insurance.

Attorney General Tom Corbett said the practice, known as rate evasion, involved out-of-state residents providing false information to the Pennsylvania Department of Transportation (PennDOT) in order to obtain PA drivers’ licenses or vehicle registrations. That information was then used to obtain Pennsylvania insurance policies for their vehicles.

“Because of differences in automobile insurance premiums and coverage requirements, some New York or New Jersey drivers can save anywhere from one-thousand to four-thousand dollars per year by falsely claiming to live in Pennsylvania and insuring their vehicles here,” Corbett said. “The real financial losers in this scam are the honest drivers of Pennsylvania, whose premiums increase when their insurance companies pay claims for drivers who lied about living in our state.”

Corbett said it is estimated that rate evaders account for $12 to $15 million per year in insurance claims on Pennsylvania policies, which is money that comes directly out of the pocket of every other driver in this state in the form of increased premiums.

“One of the most important factors used to determine an auto insurance premium is where your car will be principally garaged and used,” Corbett said. “Large urban areas, like New York City, tend to have more auto accident claims and have higher rates than rural areas in nearby Pennsylvania, like the Poconos.”

Typically, rate evaders are trying to obtain insurance coverage for the lowest possible cost, so they normally obtain the minimum required coverage in Pennsylvania. When they are involved in an accident in their home state, the coverage requirements for that state apply and the cost of the accident claim increases.

Corbett said that while the false information provided by rate evaders constitutes sufficient grounds for an insurer to cancel a policy, the duped insurance company may still have to pay the medical expenses and repair costs for all the other individuals involved in the accident.

Additionally, a survey by the Insurance Research Council found that New Yorkers are more likely to agree that it is acceptable to increase an insurance claim in order to make up for insurance premiums paid when no claim was made, and the National Insurance Crime Bureau reports that New York ranks 9th in the nation for staged auto accidents. These and other factors serve to increase the cost of auto insurance claims in New York.

Corbett said the increased cost of higher claims that are paid for accidents involving rate evaders are paid by all the law-abiding drivers in Pennsylvania in the form of higher insurance premiums.

Rate evasion, along with other types of insurance fraud, can be reported to the Attorney General’s Insurance Fraud Section by visiting “Complaints” section of the Attorney General’s website, at www.attorneygeneral.gov.

Corbett said the defendants who have been arrested and preliminarily arraigned include Ilya Bratman, 32, of Brooklyn, NY; William Copenny, 25, of Brooklyn, NY; Amir Ka-El Cummings, 25, of Brooklyn, NY; Carlos Estrada, 43, of Pennsauken, NJ; Ilya Guberuk, 56, of Brooklyn, NY; Brian Hayes, 32, of Teaneck, NJ; Estelle Howe, 45, Brooklyn, NY; Garfield Babagee, 27, of Bronx, NY; Anthony Lopresti, 42, of Flemington, NJ; Maxime Mathe, 37, of Saint Albains, NY; Rose Michel, 25, of Jamaica, NY; Antonio Perez-Delossantos, 37, of Brooklyn, NY; Elsa Perez-Delossantos, 38, of Reading, PA; Irena Potocka, 42, of Trenton, NJ; Anna I. Prosteva, 42, of Trenton, NJ; Keith Queen, 52, of Camden, NJ; Mekiva Reed, 35, of Brooklyn, NY; Jacqueline Santiago, 32, of Woodhaven, NY; Kareem Sims, 34, of Staten Island, NY; Laurell V. Sobers, 32, of Brooklyn, NY and Ala Uddin, 32, Brooklyn, NY.

Defendants still being sought include Juan F. Coreas, 28, of Brentwood, NY; Stephen McFarlane, 31, of Brooklyn, NY and Ilias Stefou, 32, of Flushing, NY.

Each of the defendants is charged with one count of insurance fraud (filing or presenting false, incomplete or misleading information to a government agency), a third-degree felony punishable by up to seven years in prison and a $15,000 fine; along with one count of insurance fraud (filing an application for insurance containing false information) and one count of false application for certificate of title or registration, which are both first-degree misdemeanors which are each punishable by up to five years in prison and $10,000 fines.

The charges were filed before Harrisburg Magisterial District Judge LaVon A. Postelle. Preliminary hearings for Laurell Sobers and Anna Prosteva are scheduled for Jan. 12th, 2010 at 10 a.m. Preliminary hearings for the other defendants are scheduled for Feb. 2, 2010 at 9:15 a.m. All of the hearings will be held at Dauphin County Central Court.

The defendants will be prosecuted in Dauphin County by Senior Deputy Attorney General Mark A. Bellavia and Deputy Attorney General Jennifer B. Peterson of the Attorney General’s Insurance Fraud Section.

Corbett said the arrests are the result of a collaborative effort by law enforcement agencies in Pennsylvania, New York and New Jersey. He thanked the Harrisburg Police Department, Brooklyn District Attorney’s Office, Bronx District Attorney’s Office, Staten Island DA's Office, Brooklyn Warrant Unit, New York Police Department Uniform Patrol, Queens NYPD Fugitive Unit, Camden County District Attorney’s Office and the Camden City Police Department for their cooperation and assistance with this investigation.

The secret rule that could cost you hundreds

2009-12-12T20:40:00.000-08:00

This secret rule could cost you hundreds and hundreds of pounds, if you're not careful....

It seems logical that if you have the option, you should always claim on your insurance. What's the point in paying for home insurance, if - for example - you don't claim for stolen possessions after you've been burgled?

And if somebody shunts you in your car, of course you are going to claim for the damage on your car insurance - that's what it's there for.

But watch out. If you end up making a couple of claims over a couple of years, then you might want to think twice before making a further submission.

It might just cost you a small fortune.

Time to make a claim?
One member lost her front door keys a couple of years ago, and made a claim on her home insurance for her locks to be replaced. It was a relatively small sum - but it was the principle of the thing: she'd paid for cover, so she wanted to get her money's worth!

Then, sadly, she was burgled twice over the next 18 months, and so had to make two more claims on her home insurance.

When the time came to renew the policy, she was faced with a pretty small shortlist when the time came to get a new policy - a choice of just one!

No insurer would even offer a quote, except for her existing insurer. And even then they were proposing to DOUBLE her premiums - to over £700!

Three strikes and you're out!
Each time you make a claim, your insurer puts a strike against your name. And while it's important to remember that all insurers are different, and so will view things in slightly different ways, warning bells tend to start to go off if a prospective customer has made three claims in the last three years.

Norwich & Peterborough Building Society, which serves as an insurance broker for many different insurance companies, told me that such a rate of claims is seen as higher than the average, hence insurers' 'concern'.

Some insurers, including M&S Money, are open about the fact that three claims in the last three years is seen as the cut-off mark, while esure and Legal & General are even more strict. For home insurance, Legal & General will only offer you a quote if you've made a maximum of two claims in the last three years, while esure will only offer you a quote if you've made a maximum of one claim (buildings/contents or both at the same time) in the last three years. Any more, and you'll have to look elsewhere.

However, other firms such as Halifax Home Insurance, LV=, RBS Insurance, Admiral Insurance, Britannia and Co-operative are less open about their policy. They say that, while your claims history will always play a part in their decision of whether to cover you or not, such information is simply a factor, and not fundamental to their final verdict.

That's what they told me anyway, knowing I was going to publish their answers. When my colleague applied for insurance, she got a far less ambiguous response. She was rejected outright by Halifax and National Insurance & Guarantee Coporation (part of the Royal Bank of Scotland), as well as Direct Line, Aviva, Zurich, Royal & Sun Alliance. All cited 'three claims in the last three years' as the reason, failing to even bother to go through the quotation process once they learned of this fact.

So it seems the 'three strikes and you're out' rule is not something all insurers want you to know about. Could it be that they're hoping you'll be caught out and have to fork out a huge premium to get back the money they paid out on your claims?

Car insurance is no different
Perhaps understandably, you'll also face difficulty getting car insurance if you have made a succession of claims in a short period of time.

Let's start again with esure, which is similarly stringent with its car insurance - if you are a new customer, and have made more than one 'at fault' claim (where losses were unrecoverable), then you will not be offered cover.

If you are an existing customer, and have had three 'at fault' claims in the space of a year, you will similarly not be offered cover, while if you make three 'not at fault' claims, at best you can expect an increase in your insurance premiums, though renewal is by no means guaranteed.

It's worth noting Halifax car insurance is underwritten by esure, so operates the same rules.

LV= explained it is the same story across the market. As it is not your fault if you are on the receiving end of three accidents in a year, you are likely to find cover relatively easily. However, if those accidents were your fault, then understandably insurers will view you as a greater risk, and will be less likely to want to cover you.

So what should you do?
While I can understand operating such a policy with car insurance, I am genuinely staggered that if you are particularly unlucky with your home insurance, you face such an uphill battle getting covered.

If you are about to make your second or third claim in a relatively short space of time, the first thing you should do is call your insurer. Explain the situation to them, and determine just how your claim is likely to impact future premiums.

It may be that while you are entitled to make the claim, getting £50 from your insurer isn't worth the hassle in the long run.

Change your excess
When you arrange home or car insurance, you will have to agree on an excess figure. This is the figure you agree to cover, before the insurance kicks in.

And increasing that excess figure has long been a tactic you can employ to reduce your insurance premiums. The higher the excess, the lower the insurance premium. (Read Slash your insurance costs for more tips on how to cut your premiums.)

I reckon that knowing how insurers will react when you make several claims means it is an even better idea to increase your excess. Let's face it, if you know that you are not even allowed one claim a year without having to pay for it somewhere, at some point... well, you are only going to claim if it's worth doing so.

By upping your excess, it will remove all temptation to make a claim for something relatively cheap (like replacing the locks). And you might as well pay as little as possible for the policy upfront and hope that you don't have to make a claim.

Of course, if you take this approach, you may have to fork out hundreds of pounds suddenly, in the event of a claim. So it's wise to then save up some emergency cash in a savings account, so that you'll always have enough to pay the excess and get the claim processed quickly. Read build up an emergency savings pot for more help.

Alternatively, of course, you could keep your excess low, and simply decide not to make more than three claims in three years. But this is a more risky approach, as your home may suffer from circumstances beyond your control, such as a fire or flood.

But what do you think is the best option? Tell us using the comments box below or post a question on Q&A to get other lovemoney.com readers' thoughts!

Speak to a broker
One piece of advice was repeated by pretty much all of the insurers I spoke to.

If you find yourself in a similar position to my colleague, with three claims over three years, speak to an insurance broker. As they have access to some of the more niche offerings out there, chances are they will be able to find an insurance firm who is happy to offer you cover, and likely at a cheaper rate than a steep jump in premiums from your existing insurer.

You won't necessarily get cover from a household name and there may be extra restrictions imposed (such as installing a burglar alarm), but it will most likely save you a few quid.

So what about my colleague? Well, she eventually found an insurer through a broker called Homer Blakey, which offered her a new home insurance policy on the basis that the excess for any theft claim would be increased to £500. Having (sensibly) increased her home security following the burglaries, she was happy to agree to this condition, and so managed to reduce her premiums to £368, a saving of more than £350.

So, overall, a happy ending in the end... but it sure wasn't fun for her, getting there!

Car insurance firm warns of break-in risks

2009-12-11T01:21:00.001-08:00

Britain's drivers have become less security-conscious than before, a car insurance provider indicated today (December 10th).

Admiral found that 73% of motorists left valuables such as mp3 players and handbags in their cars in easy view of thieves, making their vehicles a tempting target for break-ins.

When the same question was asked last year, 71% of drivers said they were leaving the items on display.

Meanwhile, just 76% of motorists agreed that they "frequently" or "sometimes" worry about the risk of suffering a break-in, down from the 80% who said the same in 2008.

The financial cost of these thefts is commonly covered by the motorist's car insurance policy.

Admiral managing director Sue Longthorn said: "It's a worrying trend that more motorists are happy to leave expensive items on show in their cars. It only takes seconds for an opportunistic car thief to break a car window and grab what's inside.

"At this time of year, people will often leave their Christmas shopping on show on the back seat of their car."

Admiral polled 3,000 motorists over the course of its survey.

Car Insurance for Teenagers: What You Don't Know May Hurt You

2009-12-11T01:17:00.000-08:00

When you add a teenager on to your car insurance, the premiums may get higher. There are some ways to save if you have a teenage driver in the house, which is important in today’s troubling economic times.

First, the type of car that your teenager is driving should be considered. A sports car is not the kind a teenager should drive, as these types of cars are higher to insure to begin with. Add in a new, inexperienced teenaged driver, and your insurance will be significantly higher. Finding a vehicle that doesn’t come with a high theft rate will help you chances at getting lower rates. Preferably you want to look for a car with an excellent safety rating, airbags, abs brakes, and an anti-theft system as these factors will help to keep car insurance for teenagers lower.

Some insurance companies will give your teenaged driver a discount if they have great grades or are on their school’s honor roll. Since these teenagers are thought to be more responsible because they get higher grades, they are considered a more responsible driver. You can also get better car insurance for teenagers if your child takes a defensive driver’s course. The cost of the class, even if your teen already has a license, may be well worth the break you get for insurance.

Your teenager should start out with as clean a record as possible to get the best rates. If they prove to be a safe and courteous driver, and receive no tickets or cause any accidents, your insurance may be lowered over time. So teach your teen safe and defensive driving, and be sure that they never, ever drive under the influence.

Compare prices with as many companies as you can before choosing car insurance for teenagers in your home. When you use an online service, you can compare three or more companies at one time, and see where you can get the best deal. You will be able to see just what a company can offer you in terms of liability, comprehensive and collision, and other coverage. Comparing the rates of many companies at once can help you get the best rates for teens, especially when you need it the most.

Ways of Handling Automotive Insurance with Your New Teen Driver

2009-09-17T03:07:00.000-07:00

When you get a new vehicle, you feel so happy and excited. What age you are does not seem to matter, the feeling is the same. If you are in your teens, you now have a feeling of independence. No longer are you required to have your parents drive you to school. There are two things that you must have in order to take off in that new car that you just got. You must make sure that you driver’s license is current and that you have adequate auto insurance to protect you.

Having an automotive insurance policy is vital, essential, responsible, and required. Depending on the state you live within, you will need to have a certain amount of coverage in order to be legal to drive your car. What would happen if you were driving closer than you should to another car and they slam on their brakes? Most likely, you will rear-end them. Without having insurance, you are going to find yourself in a lot of trouble. Accidents can occur at anytime, and being a new driver tends to add to that.

Even if you are a very cautious, new driver, accidents can still happen. You must remember that someone on the road is not being as cautious and accidents happen in the blink of an eye.

Showing your parents that you are responsible is very important when you get your car. Let them know that you want to discuss your automotive insurance and make sure that you have a policy in effect at all times. If you are a parent that just assisted your teen in acquiring a car, you can make this a stipulation that insurance is a must in order for them to keep the car.

Many affordable car insurance policies can be attained online. Making a deal with your teen about them covering the monthly payment is a great way for them to get a sense of responsibility. If for some reason they do not pay the payment each month, the car is taken away from them. This will help them to understand the importance of keeping car insurance current and shows them that without an insurance policy, you cannot drive the vehicle you have.

Comparing Auto Insurance Quotes Made Easy

2009-09-17T03:05:00.001-07:00

Every year, the cost of acquiring anew vehicle increases. This prompts consmers to look for ways to cut down on costs of their auto insurance premiums. Finding affordable auto insurance quotes from different auto insurance companies promotes the best playground to discover inexpensive car insurance quotes online.

In the past, having an option of getting several auto insurance quotes means
spending countless hours talking from one agent to another. Finding auto
premium quotes using the Internet is easier; however, much time is still spent
in filling in forms repetitively from one company to the other.

Who has time to call an agent or fill-out an application from several car
insurance companies and wait for days or weeks to get a reply? It's a choice
between talking on the phone all day, haggling for discounts, or spending 5
minutes online. Majority of individuals would prefer the latter. With
AutoQuoteNow's innovative service, people have been saving their time and
money by reducing premiums drastically.

In order for consumers to receive their car insurance quotes in just minutes,
not days, all they have to do is fill-out a short online form. Car insurance
quotes are then instantly sent via email. The site recognizes that there are a
number of variables that affect insurance prices. These variations depend on
the underwriting criteria and profits of the company in the previous year.
It's therefore important to acquire several insurance quotes from two or more
insurance companies to save money. To compare insurance quotes online is the
quickest and most efficient way to rake in the cheapest car insurance today.

AutoQuoteNow only provides the best and trustworthy premium carriers of
today's market. Each inquiry is thoroughly searched, but takes only a few
minutes to provide a comprehensive result. The website's extensive archive of
articles, tips, guides, FAQ's, and news bits provide the visitors with up to
the minute information helping them decide which one will best suit their
needs. It also covers states and major cities in the United States, providing
a more accurate and realistic information in the country.

The key to save money on car insurance premiums is the ability to compare
which one can provide the service needed at a minimal cost. AutoQuoteNow is a
trusted source for its unbiased data presentation for consumers.

Car Insurance dodgers to face fines of up to £1,000

2009-09-17T03:00:00.000-07:00

Car insurance will be required for all vehicles under new Government plans, making it an offence to keep an uninsured vehicle as well as to drive it when uninsured.

Road Safety Minister Paul Clark has confirmed new measures to catch those who keep or drive a car without car insurance.

The new measures will mean uninsured vehicles will be identified by the DVLA working with the insurance idustry.

Those motorists identified as having an uninsured vehicle will receive a letter advising them that they have a set period in which to get the vehicle insured or they be fined.

If the vehicle is then not insured the keeper will be given a £100 fine (reduced to £50 if paid promptly) and 3 license points.

If the vehicle remains uninsured, even if the fine is paid, the keeper could face court prosecution and/or the vehicle could be clamped, impounded and ultimately disposed of. Those who deliberately ignore the law could be fined up to £1,000.

Those vehicles with a Statutory Off Road Notice (SORN) will not need to be insured.

Uninsured driving is a major issue that does need tackling.

It’s estimated that uninsured and untraced drivers kill 160 people and injure 23,000 people each year.

There’s a maximum fine of £5,000 for driving whilst uninsured with up to 8 penalty points on your licence. Around 300,000 are convicted for uninsured driving each year.

A new offence was introduced last year of causing death by driving while unlicensed, disqualified or uninsured.

Having published its consultation results on how the new uninsured vehicle scheme will operate, the Departement for Transport will draft the regulations with them expected to come into force in the next financial year.

Dealing With The Rising Cost of Car Insurance

2009-08-27T18:34:00.001-07:00

According to the AA British Insurance Premium Index, car insurance premiums are on the increase. The upward adjustment of premiums is attributed to a number of different causes, including fraud, an upswing in personal injury claims, and theft of automobiles and accessories. Fortunately, there are a couple of ways you can offset the increase and keep your car insurance costs within reason.

One approach is to adjust the deductibles associated with various components of your coverage. By increasing them, you may find that you save a considerable amount over the course of a year. Just make sure you have the funds in a savings account where you can access them quickly if necessary.

Another easy way to lower your car insurance rates is to determine if you have some of the extras covered in some other manner. For example, if you have free towing service through your motor club membership, there is no point in paying for the service through your car insurance. By eliminating duplicated services, you will easily offset any general premium increases.

Shop around for more competitive rates in general. You may find that other reputable companies are offering the coverage you need for a significantly lower price. Before changing providers, take the time to verify the reputation of any competitor and check references to make sure you will receive prompt and efficient service should you have an accident.

Taking the time to look closely at the terms of your current coverage has the potential to pay off in a big way. Spend some time today looking over your existing coverage, as well as comparing your policy to offerings from other providers. You may find the time and effort pay off in a big way.

Do You Need Motor Insurance?

2009-08-27T18:32:00.000-07:00

In spite of laws that require every motor vehicle on the road must be insured, more and more drivers are choosing to take their chances and drive without benefit of insurance coverage. Much of the upswing in uninsured motorists has taken place since the beginning of the recession, and can often be traced to consumer efforts to cut expenses when and as possible.

While the desire to trim expenses is understandable, driving without motor insurance can be a costly decision. In addition to the fines that may be incurred if the motorist is stopped and cannot produce proof of coverage, there is also the possibility of the lack of insurance being reported to lenders who have extended the car loan on the vehicle. Most lenders require that insurance be maintained for the duration of the loan; failure to do so could mean the loan is cancelled and called due in full immediately.

In addition, there is also the possibility of being involved in an accident. Without proper motor insurance, the repercussions can be devastating in terms of medical care and vehicle replacement. All in all, there is no good reason to do without this type of insurance.

If you currently do not have coverage, check with several insurance companies to find the best price on motor insurance. You can even go online and obtain quotations from companies like RAC Car Insurance to use as your starting point. The sooner you have proper coverage, the sooner you can rest easy about any problems with the local authorities or the lender who financed your auto loan.

Car insurance rate setting hits Detroiters unfairly

2009-08-27T18:26:00.000-07:00

Jacked up insurance rates are driving people out of Detroit and other Michigan cities, and forcing tens of thousands of motorists to commit fraud or roll without coverage. Residents of the nation's poorest big city pay the highest average auto insurance premiums. Shelling out $4,000 a year, or more, is not uncommon in Detroit, while up to half of its motorists drive uninsured.

It's partly because of so-called territorial ratings, which allow insurance companies to base rates partly on where drivers live. It's not red-lining, nor is it illegal. Regardless of their driving records, motorists with Detroit ZIP codes get charged more, insurance companies argue, because they live in riskier neighborhoods.

Aren't poor schools, unreliable buses and Comcast Cable punishment enough for those of us who live here?

So far, politicians have opted for easy answers to the urban insurance crisis, like proposing to ban insurance companies from using credit histories. It's a good idea, but it will do little, if anything, to close the gap between city and suburban rates. Many urban residents also benefit from good-credit discounts.

The problem goes beyond Detroit, Flint, Benton Harbor and other urban centers. Statewide, 17% of all motorists drive uninsured, up from 11% in 1989, says the Insurance Research Council. Michigan's economic slump will make matters even worse. Nationally, a percentage-point jump in the jobless rate corresponds to a similar increase in the rate of uninsured drivers.

Unable to pay for coverage, some drivers buy fake insurance certificates for $50 or $60. Others get a bogus suburban address in a lower-risk ZIP code.

A sales rep in Warren, when I leased a new car eight years ago, advised me to get a phony address outside Detroit and then forward my mail to my real residence in Detroit. "All my Detroit customers do it," he told me.

Some drivers purchase insurance on monthly payments and then let the coverage lapse after the first month.

Southeast Michigan's lousy public transportation system leaves low-income workers with little choice. Tens of thousands of Detroiters like Sylvester Long end up driving uninsured.

Long, 50, earns $9 an hour, or about $270 a week, working four days a week, stripping and waxing floors. Even with a good driving record, Long had to pay nearly $200 a month to insure his 1995 Pontiac minivan. He couldn't continue to cough up almost a week's pay every month for auto insurance -- so he drove without it.

It caught up to him last month. Coming home from a neighborhood skating rink on a Sunday night, Long was rear-ended while he waited at a red light at Hayes and Kelly on Detroit's east side. He was treated for hip and back injuries at St. John Hospital and missed three weeks of work.

With his vehicle totaled, Long now gets to work by bus, riding 90 minutes each way from his home in northeast Detroit to his job in the New Center area. If the city cuts Sunday service, he'll lose a ride to work. Long told me he's in continual pain but can't get adequate medical care because he didn't have auto or health insurance. "The insurance rates are ridiculous," he told me last week. "They have to get the rates down to, say, $100 a month for people to afford it."

This year, I cut my auto insurance rates almost in half by shopping around, as the Insurance Institute of Michigan recommends. Still, rates will remain out of reach for many other city residents, even with the best deal. Reducing theft, arson and fraud are long-term solutions, but people need relief now.

Uninsured drivers put themselves at great risk and can even reduce what insured drivers collect in accidents. Government requires people to buy insurance. It should also help control the costs. The insurance industry has proposed cuts in mandated coverage or medical benefits, but Michiganders appear unwilling to accept changes to Michigan's unlimited no-fault system.

It's time to refuel the debate on territorial ratings. Setting rates by ZIP codes leads to some real absurdities, such as big differences in premiums for drivers living one block south of 8 Mile in Detroit and one block north in Ferndale.

Michigan can't fix a system that forces many city dwellers to drive uninsured without eliminating or restricting how insurance companies use addresses to set rates. Until then, drivers like Long will pay an unfair penalty for living in the D.

Classic car auto insurance is cheaper than enthusiasts may think

2009-08-27T18:25:00.000-07:00

It seems counterintuitive for a classic car policy to cost less than a traditional one, but the reason is simple: Collectible cars are pampered.

Got a classic car, like a 1960s-era Mustang or a gull-wing Mercedes? You could be paying too much to insure it.

Roughly half of classic car owners put their collectible vehicles on a standard auto insurance policy without realizing that they could be paying too much for inadequate coverage, said Ford Heacock III, chief executive of Heacock Classic, a Florida-based insurer of antique and collectible cars.

"A lot of people who are into car collecting as a hobby might not be paying attention to things like insurance," he said. "They just call their agent and add the car to their policy."

Or maybe you inherited Aunt Mabel's Chrysler 300 and are unaware that policies for collector cars even exist.

Insuring a classic with a traditional auto policy is a mistake for various reasons, Heacock said.

For one, traditional insurance is based on the notion that a car's value will decrease over time. But a classic car is likely to appreciate, especially if you're restoring it. You don't want to get a depreciated value if something happens to your pristine 1967 Jaguar XKE, he noted. But if you have a standard policy, that's generally what you'll get.

When buying a classic car insurance policy, which is offered by dozens of specialized insurance companies throughout the country, you and the insurer both agree to the car's replacement value. That price will be based on your assessment of the car's value and the price the car has brought at auction and in collector's sales. If the car is destroyed, you'll get that agreed-to value without having to dicker about depreciation.

It may seem counterintuitive that the premiums would be lower on a policy that provides a higher replacement cost. But the reason is simple: Classic and collectible cars are pampered (and driven infrequently and carefully).

"At the heart of insuring classic cars is the idea that this is your baby and you are not going to do anything to hurt it," said Candysse Miller, executive director of the Insurance Information Network of California and an avowed car buff.

How much cheaper is classic car insurance? The answer varies widely based on the insurer and vehicle.

A State Farm spokesman said it might cost $470 annually to cover a 1968 Camaro with a traditional policy -- with a lot of caveats. (Specifically, the driver had 30 years of experience, multiple discounts and a perfect driving record.)

State Farm would cut that rate by about 20% to $380 annually if you mentioned that it was a collectible car and that you planned to drive it mainly to shows and to show off, said State Farm spokesman Bob Devereux.

Heacock's classic car insurance company would charge even less for similar coverage -- about $290 -- and wouldn't even inquire about the specifics of your driving record.

Why? Because State Farm uses dozens of factors to price your policy, while Heacock has a simpler model. They're mainly looking at the car's value and how it is going to be used. Heacock explains that if you're driving it solely in parades and to and from auto shows, the chance of getting T-boned on the highway -- or slamming into another driver -- is pretty slim.

These low prices come with plenty of restrictions, however. Heacock doesn't cover youthful drivers. (Don't apply if you're younger than 30.) The car can't be driven more than 5,000 miles a year and it had better have a home in the garage, not in the driveway or yard. State Farm specifies that it's insuring you to drive in parades and to car shows -- not to work or to the supermarket.

"We're not looking to insure your second car," Heacock said. "We're only interested in insuring cars that are getting some extra attention."

What isn't necessarily required to secure classic car insurance is an expensive antique vehicle. If a car draws enthusiasts and is driven like a collectible, it probably can be insured like a collectible, said Miller of the Insurance Information Network.

The Chevrolet Impala that you had in college could qualify, as could Grandma's Morris Minor. You could also get classic car insurance on a late-model Ferrari, Lamborghini or Corvette.

But the right insurer and policy are going to vary based on the type of car you have and how (or whether) you drive it. This is a highly specialized niche market, Miller noted. Some companies specialize in antique cars, some in muscle cars or race cars, others in elegant classics.

Moreover, the premium charged for a car that is on display is a fraction of what it is for a car that's on the road, Heacock said. Typically, Heacock figures that a collectible car can be insured for a premium amounting to 1% of its value.

But the most expensive car his company insures is covered for one-tenth of that amount. The reason: It's a $6-million Le Monde-winning race car that's on display and almost never driven. The owners want insurance just in case the garage burns down. They're not concerned about liability for hitting another car on the road.

"These are not off-the-shelf policies," Miller said.

If you're in a car club, ask your fellow Duesenberg or Corvair enthusiasts where they bought their insurance, she said. If you get the right insurer, they're likely to be as enthusiastic about your car as you are. Often, they can even help you find replacement parts if you need help restoring it.

Why You Need Car Insurance

2009-08-27T18:20:00.000-07:00

According to data released by the Motor Insurers’ Bureau, more young drivers are taking chances by failing to secure car insurance. While in some cases, it is due to the fact young drivers are not always aware that maintaining auto insurance is mandatory. However, the underlying problem is more likely to be the high rates charged by some insurance providers.

While auto insurance can be high, especially for young drivers, opting to forego the coverage can lead to a number of unpleasant consequences. Many drivers between the ages of 17 and 20 experience an accident during their first year of driving. When it comes to light they are uninsured, there is the chance that the vehicle will be seized and heavy fines will be imposed. In addition, there is a good chance that the driver will be sued and could find himself or herself in a great deal of legal trouble.

The solution is to compare prices for basic auto insurance coverage. Fortunately, there are ways to find good deals that have affordable premium payment arrangements. One potential source is eCarInsurance, which offers a pay as you go form of coverage. It is also advisable to obtain coverage and cost information from a number of different agencies, so that the consumer has a good feel for what type of options are currently available.

While it can be difficult to find coverage that is both sufficient and affordable, drivers of any age would do well to investigate their options. Finding a way to pay for car insurance coverage could be a much less expensive strategy, especially if an accident should occur.

Kids, College and Insurance

2009-08-18T22:36:00.000-07:00

My daughter will start college in a few weeks and I'm wondering what I need to do about insurance for her.

You should contact your insurer before your child goes to college. You may need to make a few adjustments to protect her and her belongings while she's away -- and you could save some money in the process.

Car insurance. If your daughter moves 100 to 150 miles away for college and leaves the family car at home, your car-insurance premiums could be trimmed by up to 30%. And she'll still be covered when she's home on vacation.

If she takes one of the family's cars with her to college, your premiums will rise or fall depending on the type of car and the location of the school (if it's in an area with higher insurance costs). Contact your insurance company or agent for your best option. It's usually a good idea to keep your child on the family policy so she can benefit from any multicar (or multipolicy) discounts, as well as any breaks you've accumulated for being a longtime customer.

This might also be a good time to shop around to see if you can get a better deal. The companies that offer the best rates for empty-nesters with children at college may not be the same as the ones that offer the best deals for young families. You can find rates from many companies at InsWeb.com or find an agent in your area at the Independent Insurance Agents & Brokers of America. Also see What You Need to Know About Auto Insurance and How to Trim Your Car Insurance Bill for more information about shopping for the best deal.

Renters insurance. If your daughter is living in a dorm, then your own homeowners insurance may cover her stuff. But ask your agent or insurer about the rules and limitations. Some policies, for example, cap dorm-room protection to 10% of your total coverage for possessions. Your daughter's computer, electronics and other items could be surprisingly expensive to replace, so do a quick calculation to make sure you have enough coverage.

If your daughter lives off-campus, however, you probably need to buy renters policy, which will cover her possessions and provide liability coverage if anyone is injured in her apartment. Policies tend to be just $200 to $300 per year, and buying renters insurance through the company that provides your homeowners and auto coverage could get you a discount on all of the policies. Be sure to tell the insurer whether your child's name is on the lease.

Health insurance. Even though most children can stay on their parents' policies while they're full-time students, find out what coverage the policy will provide if she's moving out of town. If you have an HMO that lets you use doctors and hospitals only in your area, your child could end up with big expenses for any visits to a doctor or hospital while away at school.

College health-insurance policies are one alternative, but be careful before signing up. Some policies have low deductibles but also very low coverage maximums -- as little as $50,000 per accident or illness, with limits of just a few thousand dollars for each kind of surgery or care. That could leave you and your child with tens of thousands of dollars in uninsured expenses.

If your daughter is healthy, she may do better to buy her own policy (go to eHealthInsurance.com or find a local health insurance agent at The National Association for Health Underwriters). Premiums for healthy people in their late teens and early twenties run as little as $50 to $100 per month in most states (except New York and New Jersey, where premiums for young people are much higher because insurers must cover everyone and generally charge the same rates).

She could save even more money by buying a policy that has a high deductible -- and high coverage limits -- which will protect her against major medical expenses. Many high-deductible policies now cover preventive care, which may be all she needs if she's healthy. And if her policy has a deductible of at least $1,150, she can open a health savings account and make a tax-deductible contribution of up to $3,000 in 2009, which she can use tax-free for medical expenses in any year. Most college students are unlikely to have an extra $3,000, but you could give her the money to contribute to the account. That would help her build up a stash to cover deductibles and co-payments in the future, when she may have more medical expenses.

The Perks to Your Car Insurance Policy You Should Never Say No To!

2009-08-18T22:33:00.000-07:00

There's nothing like the word "perk" to make us perk up our ears. We're taught from a very young age to look for the perks in everything, and to always take advantage of the chance to add a little extra value to whatever we're spending our money on. Why, then, do so many people say no to the perks that go hand in hand with their car insurance policy?

Believe it or not, there are actually tons of perks that go hand in hand with the average car insurance policy that most drivers never take advantage of for one reason or another. Let's take a look at those perks, and why ignoring them is one of the worst choices you could ever make!

If you were out of state and you happened to get in an accident, what would you do? Would you patiently ride with the tow truck to the garage, wait for them to check in your car then take a cab back to your hotel, only to spend the rest of your vacation either paying a fortune in cab fares or pacing the floor of your hotel room because you don't have anywhere else to go? That's no way to spend your time. Unfortunately, renting a car for the rest of that vacation doesn't come cheap.

This is where your car insurance company comes into play. Many car insurance companies offer rental insurance along with their standard insurance policy at very little extra cost. With that rental insurance you can afford to rent a car for the rest of the time that your car is out of commission instead of being left scrambling while you wait for the mechanics and the insurance appraiser to catch up.

EMERGENCY ROADSIDE ASSISTANCE

It started with AAA, but it didn't stop there! Emergency roadside assistance is something that every driver needs at some point or another, and since purchasing that assistance from companies like AAA has become so popular many car insurance companies have started lumping it in with their regular insurance packages. With emergency roadside assistance you've got someone to call when you're locked out of your car, you've run out of gas or you've got a tire that needs changing, and you're usually covered for (x) miles of tow assistance without any additional costs.

ADDITIONAL MEDICAL INSURANCE

One of the biggest bills that you're going to have looming over your head after an accident is medical care. If you have health insurance through your job or your partner it's not that big a deal, but if you don't it can turn into a major problem. (Especially when you consider the fact that most emergency rooms charge you $500 or more just to step in and say hello!) With additional medical insurance through your car insurance company you're insured against the bills resulting from your accident, and you can put the money in your savings account to use doing more important things.

Like picking up another set of wheels.

With all of these perks just sitting at their fingertips, why would anybody say no? Some people are afraid of the additional costs. Some people just don't think it's necessary. Some drivers have all of these services through other providers. Whatever the case, before you say no out of hand take a second to see what your car insurance provider has to offer. You might be surprised at just how easily you can make those perks work for you.

Car Insurance Guide For Recent Graduates

2009-07-22T22:42:00.000-07:00

Health insurance is obvious, but recent grads may not realize they need other types of coverage.

Automobile

Car insurance is required by every state except for New Hampshire and Wisconsin, so it's likely that you already own this if you have a car. If you're buying a car for the first time, you should be aware that the model you buy will be a large factor in determining how much you pay to insure it each month. Young people who drive Volvos are less likely to get into an accident than those who drive Hummers. As a result, Volvos are cheaper to insure.

Auto coverage is one of the more competitive and transparent forms of insurance, so it's smart to shop around among providers like Geico, Allstate ( ALL - news - people ), State Farm and Progressive ( PGR - news - people ). Consider buying liability, collision, comprehensive and uninsured motorist coverage, especially if your job requires a long commute and more time on the road. One smart way to lower your premiums is to opt for a relatively high deductible. That means you'll pay for minor damage yourself, but if you do incur such cost they may not set you back any more than you've saved through the higher deductible.

Auto Insurance - Compare The Top Car Insurance Policies On One Website

2009-07-14T21:48:00.000-07:00

Getting the best auto insurance quotes can be a major hassle. Not anymore, now you can get quick free quotes from multiple insurance companies on one website. Start saving $598 or more today.

If you are looking for auto insurance quotes at prices that you can afford, it can be very time consuming to research all of the companies to find the best deal for you. You want a price that you can afford that has the coverage you need. An Atlanta based company has just launched a unique website that will allow users across the United States to select which car insurance company they prefer. It then gives you the rates of other major companies from the same website. All you have to do is put in your zip code and press go. This will give you the best possible rates for Atlanta Car Insurance or any other city across the US.

Getting Auto Insurance quotes has never been easier. You now no longer have to spend hours at a time researching the best car insurance companies to find the best deal. Now all of the car insurance companies will be listed in one convenient location and tell you how much you will have to pay. This will help you compare auto insurance rates in the quickest amount of time possible.

Quick Tips on Selecting the Best Auto Insurance Company:

1) Make sure you research various car insurance companies for the best quotes.

2) Don't be fooled into skimping on coverage for a cheaper rate.

3) Make sure you compare the same coverage with each auto insurance agency.

Selecting the best auto insurance agency doesn't have to be as time consuming as it was in the past. Now customers can research the top companies all on one convenient website.

Saga Car Insurance Warns of the Implications of Breaking Speed Limits

2009-07-14T21:43:00.000-07:00

Saga, a leading car insurance provider in the UK, is well equipped to warn that speed limits are there for a reason, and very a good reason at that - safety.

The law currently states that the speed limits are set at 30mph in built-up areas, 40mph in less densely populated areas, 60mph on single carriageways and 70mph on dual carriageways and motorways. Some residential areas have a speed limit of just 20mph, especially near schools.

cars breaking speed limits
It is easy to exceed speed limits but consider this: if a driver hits a pedestrian at 35mph the accident is twice as likely to be fatal than if the vehicle hits them at 30mph. A sobering fact.

Motorists caught speeding, either by the police, or by the growing number of speed cameras placed along UK roads, can expect points on their licence, a fine, and in some extreme cases, a ban. Not a good way to keep car insurance premiums low.

One thing that's all too easy to forget is that speed limits indicate the maximum speed allowed in a particular area - not the safest. Road or traffic conditions may dictate otherwise. On the other hand, it can sometimes be the case that drivers, in fact, drive too slowly - staying within the speed limit doesn't make it safe. A prime example being that a driver puttering along at 35mph in the middle lane of the motorway. Within the limit, yes. Safe? No.

Speed limits also differ depending on the size of the vehicle being driven. For instance, for a car towing a caravan the maximum speed is 50mph. This prevents the possibility of 'snaking'. The same speed limit also applies to lorries fitted with trailers.

According to the Department for Transport, every year on the UK's roads 40,000 serious injuries and 1,000 deaths are directly attributed to speeding drivers. So think twice before you are tempted to speed. Saga therefore urges drivers to take a little time to think about speed limits when on the road.

Want to Save Even More Money on Your Car Insurance?

2009-07-09T22:55:00.000-07:00

Believe it or not, there are even more ways to save money on car insurance. As you have heard already, when you look around, you can find ways to save money on just about everything. It is also important to know that you probably have not heard them all, either.

As you know, rates on many things are often reduced if you belong to a particular membership, or club. Philip Reed at Edmunds.com, says that this is also true about automobile insurance, too. Although there is a membership cost, it usually will enable you to lower your insurance costs enough to offset the price of the membership. One such membership that cones with this type of benefit is AAA. Another group may even be your alumni association or another professional group you belong to.

Membership in this type of club may also give you other discounts, too, such as reduced rates in hotels and restaurants. Belonging to such a group could save you as much as 15% for a hotel - according to Philip Reed. This sounds like an excellent and possibly fun way to get discount car insurance and save money.

Who cheats more on insurance claims - policyholders or insurers?

2009-06-30T23:45:00.000-07:00

The Coalition Against Insurance Fraud posted this video on its Web site last week from the ABC channel in Pensacola about a Florida woman who allegedly asked her insurance company for more money than she owed on a Hurricane Ivan claim.

Insurance fraud accounts for about $30 billion a year - or 10 percent - of the insurance industry's property and casualty losses, according to the Insurance Information Institute. The losses cost the rest of us more on our premiums.

But policyholders aren't the only ones accused of gaming the system. Paul Berger, founder of Coral Springs-based Claim Solvers, represents policyholders in claims disputes and says insurance companies regularly low-ball claims to save money. Almost 40 percent of the complaints that Florida insurance policyholders filed this year so far are for claims handling practices, including claims delays and denials, according to the National Association of Insurance Commissioners.

That begs the question: are more insurance claims underpaid or overpaid? I haven't found any data yet for home insurance claims. But Automall Network recently did a study of cars that were written off and found that by their estimates, more than half of the claims were potentially overpaid (not necessarily due to fraud but because of inaccurate damage estimates) and about 38 percent were potentially underpaid. (Insurance companies write off -- or pay policyholders for the value of a car -- when the car is stolen or damaged to the extent that replacing or fixing it exceeds what it's worth.)

Insurance premiums go up for drink-drivers

2009-06-23T22:06:00.000-07:00

Car insurance premiums will become "very expensive" following a conviction for drink-driving, an insurance group has warned.

Drivers who are caught over the limit while behind the wheel will realise there are resultant financial costs as well as legal and social implications, the Association of British Insurers (ABI) explained.

A spokesman for the ABI said: "You would have to be living in a nuclear bunker for the last 20 years not to realise drink-driving is a very dangerous, reckless and irresponsible thing to do.

"Not only is [drink-driving] unsafe for all the other reasons, but it could also have a very severe impact on all your premiums for many years to come."

The comments follow the publication of a study by Direct Line Insurance, which revealed 34% of adults have got in a car with someone they suspected of being over the legal limit.

More than two-thirds of those questioned remained in the vehicle despite thinking the motorist was unfit to drive.

Beating the Rate Hike on Car Insurance

2009-06-23T22:03:00.000-07:00

Gas prices are down by a third from a year ago, but the costs of owning a car may be heading up, courtesy of your auto insurance. After two years of staying flat, rates rose an average of 2.5 percent in 2008 and could rise up to 7 percent this year—the biggest increase in more than five years, according to brokerage firm Stifel Nicolaus. Some tips to avoid the jump:

Bargain hard
Insurance companies may refuse to budge if you ask for a rate rollback. But “there’s always room to bargain,” says Michael McRaith, director of Illinois’s insurance division. One thing your underwriter might do is apply new discounts. Some carriers offer discounts for professional degrees—even a master’s in education may qualify—while others may apply a “persistency” credit just for being a longtime customer. If you’ve started working from home or get laid off, let your insurer know you’re no longer commuting by car. You could save up to 10 percent, for example, if you now drive less than 10 miles a day.

Tweak your policy
Most experts don’t advise going with your state’s minimum liability coverage, since a lawsuit over a severe bodily injury could then wipe out your net worth. But opting for a higher collision deductible—from $500 on a typical policy to $1,000—could knock 5 percent off the premium on that line of the policy, analysts say. Most consumers file claims only once every eight to 10 years, so you’ll probably come out ahead in the long run, says Jeanne Salvatore, senior vice president at the Insurance Information Institute. Bundling your auto and home insurance with the same carrier could shave a few bucks too, as could trading in your car for one that’s less costly to insure.

Get smarter about credit
Underwriters use a credit-based score to help calculate your premium—and if you have a few black marks on your record, you’ll probably get hit hardest. Paying overdue bills and fixing errors on your credit report are good places to start. Using less of your available credit can hike your score too, according to Fair Isaac, the big credit-scoring firm. Insurers such as State Farm may also give you a break for a hardship such as a job loss, divorce or identity theft. Only certain hardships qualify, and only if they negatively affect your score. But you won’t get a break if you don’t ask.

How to Save Money When You Buy Auto Insurance

2009-06-23T22:00:00.000-07:00

Buying auto insurance is not the same thing as buying an electronic item in a store - although it would be nice if it were that easy. Instead, in order to find a good deal and save money on auto insurance, you will need to do some research and shop around.

Getting the best deals, however, means that your research does not begin with getting online auto insurance quotes. Instead, it actually should begin with you talking to an insurance agent about two things:

• Which cars should you avoid
• Which cars will give you the best auto insurance rates

You see, it needs to start here because trying to get discount auto insurance on a car that will cost you more in auto insurance just because it's sporty or on a Top Ten Most Stolen Car List does not make sense. By knowing which cars to avoid, it will enable you to get a deal you can live with, and your friends (who are paying way more than you) will envy you for.

If you want the best car insurance deal, why not get a really good one! One that will let you save money and put some of it in the bank.

Coverage for cats is a growing policy with many auto insurers

2009-06-17T01:18:00.000-07:00

Earlier this month, CBS 47 TV out of Fresno, Calif., reported on a close call for a County resident when her car was rear ended and forced into a canal full of water west of the city. The CBS 47 coverage of the incident indicated that the woman managed to get out of her car with her cat that was in a carrier and swim to safety.

The accident underscores the fact that not only you are at risk when you are behind the wheel, so is your cherished cat or dog in the car with you. Recognizing the devotion of many pet owners to their companions, several forward thinking auto insurance agencies now are extending coverage to pets, generally only cats and dogs, at no additional cost.

Progressive, the third largest auto insurer in the nation, was the first to offer its pet accident coverage beginning in 2007. The company covers vet costs up to $1000 for a cat or dog if they are injured or 'worse' when you are in an accident. The coverage is automatically included in the company’s collision coverage. Progressive indicates the coverage even extends to a cat or dog owned by a relative living with you.

In 2008, Farmers Insurance Group followed suit with pet coverage up to $600 per pet for medical treatment or financial coverage if the pet dies in an accident. According to Farmers, the policyholder must have both collision and liability insurance to be eligible for the coverage

There are of course some limitations to this coverage and it will vary by provider. If the accident is deemed to be your fault, the coverage may not extend to your pet. If the accident was not your fault, the other driver’s insurance may be responsible for paying the vet bills for your pet. Progressive will provide vet bill coverage regardless of who is found at fault.

You’ll want to check with your insurer to find out if it provides such coverage in the event of an accident. AAA Northern California, Nevada and Utah, for example, does not provide this coverage, according to a representative.

Regardless of which provider you use, keep in mind your cat should always be in a carrier when you are driving to prevent it from roaming in your vehicle and distracting you. The California Department of Motor Vehicles cites a study by The National Highway Traffic Safety Administration (NHTSA) and Virginia Tech Transportation Institute (VTTI) which indicates that 80 percent of crashes and 65 percent of near crashes involve some form of driver distraction of which pets loose in a car is included.

So with summer travel ahead, make sure you’ve got your cat or dog covered for safety.

Saving your green: How to save money on auto, car or truck insurance

2009-06-17T01:17:00.001-07:00

Whatever you own or are thinking of owning, you have to insure it. And there are things the car insurance companies simply aren't telling you, so I am. Here are the tip tips to save money on your auto insurance:

Older car? Drop collision. If your car is seven or eight years old or worth less than $2,500, think about taking the risk and dropping the comprehensive and collision from your insurance quote. Chances are your deductible is closing in on the value of your car anyway, and a major collision will send the car to the junk dealer and you to the dealership.

Buy your home insurance and auto insurance with different companies. So many things are being bundled these days -- from cell phones to Internet and cable TV - you would think that having your home and auto insurance with the same company would save money, but it might actually be costing you money. Do your research. You could discover that having separate policies will be cheaper.

Minimum liability is probably not enough. You may think you can only afford the minimum coverage required by law. But, there's a good chance those minimums won't come close to covering the costs of a serious accident, which could mean you could be paying a lot more than you bargained for if it's your fault and you don't live in a no-fault state.

Shop around for lower rates: A State Farm agent only quotes State Farm. Same for Allstate, even Geico, whose super-cute gecko with the British accent I have an absolute crush on. So what are the chances their agent will tell you to shop around for the best deal? Even independent agents only represent a few auto insurers. Shopping online allows you to fine-tune the deductibles and coverage you want and then compare auto insurance rates side-by-side. .

Go green to keep some green: Look for auto insurance quotes from companies that offer "green" discounts for driving a hybrid, choosing paperless statements or electronic payment plans. Even signing your policy with an e-signature can help cut your premium costs.

Consider paying that claim yourself: If you've backed into the garage, think twice about asking your company to repair it. Besides the possibility your rates will go up at renewal, that small claim could jump-start your rates next time you shop. An accident can only affect your rates for three years, but many companies look back five or seven years when deciding if they want to offer you a quote. Do you really want to increase your current insurance costs for being dumb and careless in your own garage five years ago?

Don't buy that turbo convertible or mid-life crisis exotic sportscar: All vehicles are not created equal. Small or large, old or new, the type of car you drive affects your auto insurance rate, which are based on complicated algorithms auto insurance companies use to determine how expensive it might be to pay a claim.

Saving Money on Car Insurance

2009-06-17T01:13:00.000-07:00

It’s important to drive your vehicle knowing you’re insured against accidents, theft and any other unpredictable event that could damage or harm your vehicle. But you don’t have to shell out and pay high bills in order to ensure that you and your vehicle are insured. If you hunt around and compare car insurance deals then you’re sure to find that there are a number of ways to save money on car insurance.

Car insurance experts have noted that one way to cut down on your car insurance costs is to purchase the vehicle that’s right for you. Therefore, don’t buy high-powered cars or farm trucks unless they are necessary, as their insurance can often cost much more. Also note to insurers if you live in a city, as this could mean you drive your vehicle less. In fact, changing your driving habits to ensure that you drive less will decrease the price of your insurance and also make sure that your vehicle is safe and protected more of the time.

If you’re sharing the vehicle with a number of drivers, be sure to insure the oldest driver, as older drivers are considered more reliable when it comes to driving. In addition, note if young people won’t drive the vehicle - as this can increase the cost of insurance.

Always be sure to drive carefully. Drivers who have a number of accidents on their records already will find their insurance costs increase. It pays to be safe when it comes to vehicle insurance, so be sure to take your time and drive responsibly.

Likewise, avoid breaking the law. As such, don’t drive using your mobile phone. What's more, always be sure that everyone in the vehicle is wearing a seatbelt. Following these laws will decrease your chances of receiving fines that will increase your insurance premiums.

If you’re a woman, then there are many advantages to benefit from. Women save money when purchasing car insurance, as they are seen as responsible drivers who rarely get into accidents. Furthermore, car insurance for women is readily available from most car insurance dealers with discounts added in.

If you’re out to find the best deal, then always be sure to shop around different insurance companies. Before buying car insurance make sure it’s the right choice for you, and you’re sure to save money.

And whilst it is a known fact that the car insurance women buy will often be cheaper compared to what men are offered, it is good to know that there are other ways you can save money and find the right car insurance plan for your needs.

No-fault regime's no magic bullet

2009-06-09T02:04:00.000-07:00

No-fault regime's no magic bullet

By Christopher Tan , Senior Correspondent

IN AN attempt to stamp out inflated claims and runaway premiums, insurers and Singapore's consumer watchdog body are proposing to restructure motor insurance here.

The most radical change they propose is a move to a no-fault regime - one that does away with third-party claims as well as lengthy and costly litigation that the current system tends to encourage.

The Consumers Association of Singapore and the General Insurance Association (GIA) will jointly table a set of proposals to these effects to the Government later this month.

In a no-fault system, a motorist who gets into an accident will claim against his own policy, regardless of whether he is at fault.

He will give up his right to sue the other party, unless negligence is evident - for instance, in the case of drink-driving.

Claims for the all-encompassing but medically hard to prove "pain and suffering" may also be greatly restricted.

Genuine injuries, however, should still be claimable.

In addition, the no-claims discount (NCD), which rewards good drivers with lower premiums, may be far less generous than today, or dropped entirely, because insurers will have to rework their risks to even out their exposure in a no-fault regime.

What are the advantages of a no-fault system?

Claims will be settled speedily, and repair costs will be capped since it will no longer be "the other party" who will pay for them.

And there will be not much need for legal intervention.

But is a no-fault motor insurance regime really better than the current liability system and will it result in lower premiums?

Going by the experience in other countries, it is not clear.

Data collated by the National Association of Insurance Commissioners in the United States, published in 2005, revealed that premiums were 19 per cent higher in states with no-fault regimes than in those without.

And in states where no-fault laws were repealed, motorists experienced sizeable average premium savings.

Another example worth examining is that of New Zealand, which embraces the no-fault system for injury claims.

Vehicle repair claims, however, are settled using the liability regime.

Ms Bronwyn Howell, acting director of New Zealand's Institute for the Study of Competition and Regulation, told The Straits Times that it was difficult to ascertain how the no-fault regime had affected premiums.

She said this was because the country had adopted the practice for over 30 years now, and there has been no competition from alternative compensation schemes to compare with.

In a study she published in 2002, Ms Howell noted that "if...individuals are not required to pay for the losses that they cause, then they will take fewer precautions than is optimal and more adverse events will occur".

Indeed, it was partly this concern that derailed Malaysia's plans to switch to no-fault.

The Malaysian Attorney-General mooted the idea in 2007.

But the proposal faltered when it met with strong opposition, chiefly from lawyers.

Their arguments included:

- accident victims will not be represented by lawyers and will be at the mercy of insurers;

- high chance of insurance fraud - for example, a person may make a claim for self-inflicted damages;

- other countries are looking to drop no-fault and revert to the liability regime.

One thing that sank the proposal, according to one top lawyer, was the "inevitability" of higher premiums in a no-fault environment.

"In a no-fault system, the good drivers subsidise the bad drivers," said one critic.

A no-fault plan does not always prevent fraud either.

In New York, a billion-dollar-a-year "no fault fraud industry" thrived between 1995 and 2007.

Criminal rings recruited conspirators - often immigrants - to stage accidents and file exorbitant claims.

It is unlikely the no-fault system will be the silver bullet to kill Singapore's inflated claims monster.

To slay the beast, we must cut off its legs.

One of the legs is the high cost of cars here.

The cost however is made up largely of taxes.

So do we need to insure the tax value of a car?

When asked several years ago whether they would insure cars without the certificate of entitlement (COE) element, insurers here said "yes", but they offered a small discount, something like 5 per cent.

Next, contrary to popular belief, motorists here are required only to have insurance covering third-party bodily injury.

The law does not require them to insure the vehicle itself.

But as far as can be established, no insurer offers such a policy.

Such a policy should theoretically be cheaper than what motorists are paying now, since the vast majority of road accidents do not result in injury, even if fake injuries seem to be on the rise.

What will happen if vehicles are not insured?

Drivers are likely to exercise more caution, because they know they will have to pay for each and every dent themselves.

And workshops are likely to charge less since they know you will be paying for the repairs yourself.

What if there is major damage?

One option would be to scrap the car and recover the residual taxes.

The Government can make this less painful by allowing the unused portion of an irreparable car's taxes to be transferred to a new vehicle.

This practice, if allowed, will also make for safer motoring, as there will no longer be a need for dubious repair practices - such as replacing a whole damaged rear portion by welding on a section sourced from the scrapyard.

Many insurance-covered repairs currently cost more than the open-market value of a car - the cost of the car before taxes.

This means it costs more to repair a car than to make a brand-new one.

If Case wants radical change, it should look beyond no-fault policies.

Young drivers struggle to get car insurance

2009-06-09T02:03:00.001-07:00

Many insurers will not offer cover to people who are aged under 21, while in some cases firms will not insure people under 25.

The AA has warned that this is reducing competitiveness in the insurance industry and driving up premiums, which is in turn encouraging fraud. The organisation is calling on the insurance industry to do more to recognise steps taken by young motorists to improve their driving.

It has recently teamed up with the police to offer free driver safety training to young people who are deemed to be at risk, such as those who have been caught speeding, using mobile phones while driving or not wearing seat belts.

The scheme, called Drive Smart, was launched in north Wales last month and the AA Charitable Trust plans to fund at least 2,000 free courses across the country.

Simon Douglas, director of AA Insurance, said: "It's disappointing that while both the police and the Government recognise the benefit of training courses such as Drive Smart in reducing accident rates among high-risk young drivers, the insurance industry so far has not.

"Perhaps it's time for greater investment in targeted driver training at a younger age to enable new drivers to get on the road safely and responsibly, help reduce claims and make insurance more affordable."

How to cut your premiums
Shop around extensively. Different companies will take very different views about your risk
Restrict the number of drivers covered
Insure third-party only
Take Pass Plus lessons within a year of passing your test
Try a specialist broker

Car insurance deals 'more expensive' for convicted phone users

2009-06-09T02:00:00.000-07:00

People who have been convicted of using their mobile phones while driving are seeing their car insurance premiums go up, AA Insurance has claimed.

Additionally, in many cases people who have been found guilty of the offence are not being offered any cover at all.

This jump in insurance premiums will end up being more than the actual fine people receive for being convicted.

However, despite this crackdown by police and the insurance industry, many still flout the law, the AA claimed.

"Driving while using a hand-held mobile telephone places you at much greater risk of having an accident and thus making an insurance claim," said the firm's car insurance director, Simon Douglas.

"It significantly slows reactions and reduces ability to control the car properly, especially in an emergency.

"Insurance companies rightly take such offences very seriously and in an extreme case, could void a policy."

The issue has been in the news of late, following the three-month jail sentence handed out to Labour peer Lord Ahmed after he was found guilty of texting while driving.

The Most Expensive Cars to Insure

2009-06-04T19:46:00.000-07:00

That little gecko can't save you 15 percent or more on car insurance if you bought a Nissan GT-R, apparently. Or a Dodge Viper. Or a Hummer H2. He might have a deal for you, though, if you're driving a Hyundai Santa Fe.

Insure.com has posted its list of the most, and least, expensive cars to insure. They explain, "Sports cars dominate the ‘most expensive' list, with the GT-R driving away with the top bill." On the other end of the scale, "Low rates tend to reflect a vehicle's safety, which is why larger cars and minivans dominate the least-expensive list." The website examined the average insurance premium on 300 different 2009 model year cars, assuming in every case that the driver was a 40-year old man with a 12-mile daily commute. They found that "Cars shoot to the top of the ‘most expensive to insure' list because their drivers have submitted frequent and expensive car insurance claims. On the other hand, when a car model attracts experienced drivers who don't crash often, all drivers of that model benefit."

Ten Most Expensive Cars to Insure:

Rank Average Premium Vehicle

1 $2,533 Nissan GT-R

2 $2,446 Dodge Viper

3 $2,236 BMW M6

4 $2,186 Ford Shelby GT500

5 $2,088 Mercedes-Benz G-Class

6 $2,071 Audi S8

7 $2,020 BMW M5

8 $1,912 Hummer H2

9 $1,881 Lexus IS F

10 $1,819 Porsche 911

Ten Least Expensive Cars to Insure:

Rank Average Premium Vehicle

1 $832 Hyundai Santa Fe

2 $840 Kia Sportage

3 $848 Hyundai Entourage

4 $857 Kia Sedona

5 $870 Kia Rio5

6 $871 Honda Odyssey

7 $881 Smart Fortwo

8 $911 Saturn Vue

9 $913 Mazda Tribute

10 $915 Chrysler Town & Country

Looking to lower your car insurance rates or just trying to understand your policy? Check out our Car Insurance Center for information on getting the most out of your auto insurance.

If you're in the market for a new car, check out the U.S. News rankings of this year's best cars as well as this month's best car deals.

New techniques used in car insurance claims

2009-06-04T19:44:00.000-07:00

The use of cognitive interviewing should reduce the number of fraudulent car insurance claims for low-value vehicles, one insurance provider has claimed.

As the recession continues, an increasing number of drivers are lodging stolen car claims for vehicles worth less than £5,000, esure has revealed.

In many of these cases the car is just hidden in a garage or lock up by the owner and has not in fact been stolen, the insurer said.

Voice Risk Analysis technology is now being used by esure when interviewing claimants to identify micro changes in a speaker's voice which can indicate whether a person is telling the truth or not by showing stress.

Gordon Hannah, director of claims and operations at esure, said that the company needs to be "extremely vigilant" when investigating vehicles which do not fit the stolen car profile.

"We have found cognitive interviewing to be an effective way of spotting and clamping down on attempted fraud. A skilled interviewer can easily spot flaws and inconsistencies in cover stories that enable us to investigate more effectively," he added.

Car cover: Cheap is not always best

2009-05-14T00:30:00.000-07:00

For many of us, paying for insurance protection is often seen as an unnecessary cost rather than a service. I'm no different. I try to get the cheapest deal with the best cover, or what I think is a suitable cover without paying an arm or a leg for it. Buying car insurance is one such example.

It does not help that the General Insurance Association (GIA) requires vehicle owners to report all car accidents to their insurers within 24 hours or by the next working day, as of last June. It does not matter how minor the accident is, and the requirement applies even if there is no obvious damage to the vehicle.

Personally, I find it troublesome to be subjected to the requirement if the accident is minor, involves no injuries and can be settled amicably between the two affected parties.

Despite the unfavourable feedback from some motorists on the new motor claims framework, GIA was adamant that the new procedure should not be taken lightly. Not complying with it will result in penalties, including the loss of 10 percentage points on your no-claim discount (NCD) and the risk of having your claim prejudiced or declined later by insurers.

This tough stance was the latest attempt by the insurance industry to curb runaway claims, which drove motor underwriting losses to an all-time high of $214 million last year.

GIA's rationale is that people are less likely to lie or have less chance to collaborate with workshops to submit inflated claims within the first 24 hours of an accident.

In Singapore, it is compulsory to buy car insurance. My husband had let me pick the firm to insure the car with and the specific cover. When I was renewing his motor policy in January, I chose to pay as little as I could for the best cover. I had toyed with the option of paying an additional premium to protect his NCD but decided against it, thinking that the chance of claiming was slim based on our good track records.

To recap, this is how the NCD works. If you have not made a claim for a year, you are entitled to an NCD on renewal, which reduces the policy premium for the following year. This means that after five years of zero claims, it is possible to enjoy an NCD of 50 per cent (which my husband did), which effectively halves your motor premium the following year.

Now, I wished I had paid a higher premium to buy an optional 'NCD protector', which is a cover against the loss of the NCD. This would have ensured that my husband's 50 per cent NCD was protected in the event of a claim. While AHA does not offer this benefit, some insurers such as HSBC and Income do.

Another benefit that I wished I had bought was for the use of another car while my husband's was in the workshop. This would have added only another $95 to the annual premium.

Without the 'NCD protector' and because of the current claim on his policy, my husband can expect a reduction of his NCD by 30 percentage points to 20 per cent come next year's renewal. He can also expect a possible loading on the renewal premium, depending on the amount of the claim and the degree of the driver's liability in the accident.

I will definitely weigh the consequences of such decisions more carefully in future. Cheap is not necessarily the best.
By Lorna Tan

Car insurance on the continent causes confusion, says moneysupermarket

2009-05-14T00:23:00.000-07:00

Almost half of UK motorists could be putting themselves at risk because they do not know whether or not their car insurance policy would cover them for driving in Europe, research from moneysupermarket.com has found.

An increasing number of Brits could be opting to drive to Europe for their summer holidays this year, as the credit crunch puts a stop to more expensive long-haul trips, but 49 per cent of UK drivers do not know what they would be insured for if something went wrong.

Almost a third of British drivers believe that a fully comprehensive car insurance policy will provide the same cover abroad as it would at home, but only 20 of the big brand car insurance providers offer the same cover automatically.

Meanwhile, more than a fifth of drivers believe that their policy will be automatically downgraded and provide third party cover when they head across the channel in their motors, moneysupermarket's research discovered.

Moneysupermarket warns drivers to beware of automatic downgrades, as nine insurers will automatically downgrade the policy so that it matches the minimum level of cover required for the country of destination, and another provider downgrades their customers' cover to include third party protection only.

Mr Sweeny said: "When driving in continental Europe, motorists need to be aware a provider could automatically downgrade a fully comprehensive policy," and this will happen "as soon as the wheels hit continental soil."

Therefore, it is crucial that drivers study the small print of their car insurance policy before they set off, Mr Sweeny urges. "If you were unfortunate enough to have a crash whilst abroad and were only covered for third party, you could find your great holiday getaway turns into an expensive motoring nightmare," he added.

Moneysupermarket also warns that cover can sometimes be limited, lasting only for the first 30 days that the driver is on the continent, whereas other car insurance providers offer unlimited cover, within reason.

Steve Sweeney concluded: "If your motor insurance policy does automatically downgrade you, it's worth speaking to your insurer ahead of your trip so you can make amendments to your policy if needs be – most providers allow policy holders to upgrade their cover for around £20 for a trip to the continent."

Cutting Back On Car Insurance

2009-05-06T10:07:00.001-07:00

The economic downturn is seeing more and more drivers, keeping and maintaining their old cars, rather than buy new ones to save money on car insurance.

Ron Brunell, an agent with B & B Coverage, an insurance broker in Valley Stream, N.Y. says more and more people are shopping around, asking for price quotes while looking for other ways to save on car insurance.

Ask any insurer, including St. Paul, Minn.-based Travelers Cos. or Bloomington, Illinois’s State Farm Insurance, and they both say they have noticed recently that customers are tending to keep cars longer, rather than trading them in for newer models. According to State Farm, more drivers are opting for higher deductibles as a way to cut premium costs.

It makes sense to hold on to your car for a number of years, as cars of today have greater potential to last longer than those of decades past. But, one must still keep in mind that rapid depreciation lowers an aging car’s value, increasing a likelihood of it being over insured.

According to insurers, consumers may buy more coverage than they need, if they lose track of how much their vehicles are worth.

Drivers often do not realize that the amount of collision and comprehensive coverage can be reduced from the high levels lenders typically require, after they have finished paying for the car. Collision covers damages caused by road accidents, while comprehensive covers theft and damage that is not caused by another car.

When a car’s value falls to a few thousand dollars, you should consider dropping collision and comprehensive coverage altogether. After a point, it makes more sense for the owner to simply pay out of pocket for damages, but in contrast liability coverage should not be reduced, as it covers damage to other people or their property, as an old car is not less likely to hurt or damage someone than a 2009 model.

You can also shrink your insurance premium by increasing the deductible, which allows the driver to assume some of the risk previously covered by the insurer.

Carrying plenty of liability insurance also ensures you are covered in case of a collision with an uninsured motorist. According to an Insurance Research Council report, about one in seven U.S. drivers was uninsured in 2007, a figure expected to reach one in six in 2010.

You can track your vehicle’s value online on edmunds.com and nadaguides.com, and find out how much they will pay if the covered vehicle is completely damaged in an accident. Insurers advise drivers to speak regularly with their agents to ensure their coverage matches the car’s value.

Investment losses, shaky employment and other financial pressures are helping keep people away from new-car dealerships, as they hang on to their older car models.

Car crash: The death of the American auto

2009-05-06T10:04:00.000-07:00

In America, we rarely catch a glimpse of the end of a car's life. The efficiency of highway response provides only rare chances to rubberneck at a disturbing tableau of mangled steel; parts rust in remote junkyards; and the news seldom covers crashes unless they are spectacular, like a 30-car pileup.

The majority of automotive images we take in have the sweeping grandeur of the car commercial, the sexy adrenaline-charge of the Hollywood chase, or the gleaming novelty of the auto show. On the road, too, many vehicles are freshly minted: Americans have bought 80 million new ones since 2004. A shimmering car emerging from one of the nation's more than 90,000 car washes is a far more frequent sight than that of a junker disappearing into a crusher. Our ideas about the automobile are consequently wrapped up in notions of newness, progress, and national and personal economic success.

It is a century in the making, this mythology of the American car. In that time, life, liberty, and the pursuit of happiness was lifted from the Declaration of Independence and remade as a tagline for Cadillac.

It took the extremity of the economic crisis for consumers to begin to deconstruct the myths and reclaim our independence. Americans are now seeing their cars not as the emblem of their socio-economic rise but an unsustainable encumbrance. Unable to pay for repairs or deductibles, they are abandoning broken cars in their driveways and hopping on bikes or mass transit. Facing unaffordable payments, some are resorting to fraud. Insurance scams are exploding across the country as people recognize that their vehicles are worth more dead than alive.

During the bubble, many of us traded in our cars every few years simply because we grew tired of them or a new model beckoned. But now, at all income levels, we are recognizing our automotive overspending and overdependence. The loss of a long-held job lays bare previously overlooked costs of ownership. Our obsession with gas prices is put into perspective as we finally examine the full burden of depreciation, financing, insurance, maintenance, repairs, parking, fees, tolls, taxes, and multi-car garage mortgages. The average family is shocked to discover that, payments hidden in various tax bills aside, it spews $14,000 annually out the tailpipe. This recession-forced budget exercise makes carpooling seem more brilliant than inconvenient and public transportation suddenly attractive.

We are starting to notice that when we shop less, we drive less; and when we drive less, we shop less. Nationally, peak traffic had shifted from weekday commuting times to 1 p.m. on Saturdays, reflecting how many of our trips were not to work to earn income but to Wal-Mart and Home Depot to spend it. En route, radio and billboard ads drew us into more stores for impulse buys. More conscious of the true costs of driving, we are rethinking not just these discretionary trips but the very structure of our lives. Because we could afford to drive there, we bought larger houses in far-flung exurbs; we now revisit the appeal of in-town living and walkable neighborhoods. The "need" for three cars and the reasonableness of driving 15,000 miles a year are being challenged.

So with the economic crash has come a visible crash of the car industry. Auto sales in March were down more than a third from a year ago, the 15th month in a row of declines. Six million fewer cars are likely to be sold in 2009 compared with two years earlier, despite lower gas prices. Obviously, most of these foregone purchases were optional.

Televised scenes of smoldering auto carcasses in the desert reveal only the smoke: the fire is the unsustainable car system combusting. As an object of reverence and desire, the meteor of excess, the American auto has come down to earth.

Your Credit Score Can Affect Car Insurance Rates

2009-04-24T01:26:00.000-07:00

Another trickle-down effect of America's credit crisis: car insurance companies are using your credit score to help determine if you'll be covered behind the wheel.

A Springfield insurance agent says car insurance rates have gone up about 5% in the past five years. Companies are really looking at those credit scores and using them to determine your rate.

You still have options if your score recently took a nosedive.

"It is very competitive," Jeff Lindsey of Allstate says about the car insurance market.

He says companies can afford to be picky about who they insure.

"We take a picture of what you look like at a given time," Lindsey says. "We'll use everything from credit to loss history."

That's a double whammy for anyone who's lost money lately, and it can affect your car insurance rate.

"Some companies could require you to have a certain credit score, some may rate you differently on price," he says.

Lindsey says as long as you keep your insurance current, you'll get a green light from insurance companies.

"Most companies don't really look at that at renewal," he says.

But if you miss a payment and let your insurance lapse, you'll pay for it.

"You're going to have a little bit of sticker-shock," Lindsey says.

He says forget perks and benefits like company loyalty that save you money every year.

"You're going to almost start over, so you may go back to an almost standard rate," Lindsey says. "It's going to be that way for at least a year."

He says don't be afraid to communicate with your insurance agent.

"Call us before you cancel and say, 'Hey, I can't make the payment.'" Lindsey says. "If you've been a client for awhile, there may be a skipped bill option."

Insurance companies can't forgive a missed bill, but they can look into policies that would give you a 30-day extension.

"We may be able to do some coverage options or things that could allow you some more time on your insurance bill without letting it lapse," Lindsey says.

He says he did see clients miss payments in December and January, but since then, most clients can afford to make payments on time. Lindsey says that's perhaps some "good news" on the money front, and we don't get that a lot these days.

There is a state agency that oversees all insurance sold in Missouri. The Missouri Department of Insurance out of Jefferson City regulates insurance practices.

20% of drivers forget their MOT and invalidate their car insurance

2009-04-24T01:22:00.000-07:00

Research by uSwitch.com shows almost 20% of drivers forget their MOT renewal date. Driving without a valid MOT ceritificate invalidates a car insurance policy.

Of the 4.7 million drivers who forget their MOT renewal date, over 3 million admit to carrying on driving illegally even once they know their MOT certificate is out of date.

It takes a third of these drivers a month to book their MOT once the renewal date has passed.

Whether it’s because of sheer forgetfulness or a change of car, driving without an MOT is illegal and automatically invalidates your car insurance policy.

If as a driver you are involved in an accident whilst driving without a valid MOT certificate you are liable for the damages yourself - you are ould not be able to make a claim to your insurance company.

Car accident costs can be expensive. The average cost of a car insurance claim according to the AA is nearly £2,500.

Not only that though, when you do renew you car insurance, your premiums are likely to be significantly higher if you have an IN10 offence.

This is the offence you would be charged under if found driving a car without an MOT - it is for using a vehicle uninsured against third party risks.

So it is clearly worth making sure you get your MOT on time and of course make sure you keep your car insurance valid.

More Auto and Car Insurance Fraud Cases In Bad Economy

2009-04-22T00:19:00.000-07:00

The faltering economy is to blame for a rise in motor vehicle fraud cases nationwide, according to investigators who tell ABCNews.com that never before have they seen owners so desperate to get rid of their wheels, even if it means breaking the law.

For Modesto, Calif., resident Dennis Bicek, car payments on his Infiniti G35 became such a burden that police allege he hired a man to steal and burn the vehicle to collect the insurance. Bicek claimed to police that his car had been stolen from a local golf course.

"The primary motive was for economic means," said Sgt. Brian Findlen, the public information officer at the Modesto Police Department. "This individual found that he could no longer afford the vehicle he had purchased and made the choice to commit a criminal act to ease the financial burden."

Bicek's car was eventually located nearby by firefighters who found the burned-out hulk. Bicek and the two men he allegedly hired to do the job face charges of arson and conspiracy to commit arson.

Messages left at Bicek's home by ABCNews.com were not immediately returned.

According to James Quiggle, the spokesman for The Coalition Against Insurance Fraud, such cases have been on the rise since the economic recession began in December 2007.

"A growing number of stressed-out consumers around the U.S. are ditching unwanted vehicles to try and stop them from falling off a financial cliff in the recession," said Quiggle.

According to the Insurance Research Council, an organization that does research on behalf of the insurance industry, automobile insurance fraud added between $4.8 billion and $6.8 billion to auto claim payments in 2007, the most recent year data was compiled.

National statistics on the number of auto fraud cases that occur are not available, said Quiggle, who says that because each insurance company maintains their own statistics on fraudulent claims -- and because they each consider different acts to be fraudulent -- no "omnibus of data" exists.

Quiggle said he's seen cases of car owners getting rid of their vehicles in a variety of ways, from sinking them in lakes and ponds where evidence can "lie submerged for decades," to the most popular disposal method: arson.

"It's most common to torch vehicles because the hope is that they can destroy the evidence or make it appear [to their insurance companies] that the car was stolen by a fire-minded vandal," said Quiggle.

Does your car insurance cover you for road rage?

2009-04-22T00:17:00.000-07:00

Research from Sainsburys Car Insurance shows that 58% of motorists have been victims of road rage in the last year. Alarmingly though most car insurance does not specifically cover personal injury from road rage.

According to Sainsburys, of those people who have been a victim of road rage, some 330,000 motorists have been physically assaulted during the incident.

Drivers have felt road rage for a number of different reasons, the highest percentage being for tailgating.

This is followed by drivers pulling out at junctions when they shouldn’t and changing lanes without indicating.

The South West interestingly has the highest percentage of people who have been the victim of road rage at 65%.

That said, the percentage for Yorkshire and Humberside, West Midlands, North West and Eastern regions are all 60% or more.

Staying calm whilst driving clearly needs to be worked at by many people. Advice from Sainsbury’s includes:

Give yourself plenty of time to get to your destination
Ensure your seating position is comfortable
Work out your route in advance and listen to the radio for traffic news
and perhaps most importantly count to 10 before reacting to somebody else’s poor driving.

Sainsbury’s Bank was the first supermarket bank, established in 1997. It is a 50:50 joint venture between Sainsbury’s and Lloyd’s Banking Group.

There are numerous providers of car insurance, including of course Sainsbury’s Bank.

With so many different policies to choose from there are also car insurance comparison sites, such as Gocompare.com.

These comparison sites enable you to quickly get car insurance quotes that you can easily compare, helping you to find the best car insurance for your needs, including personal injury for car rage if you want it.

Their stories have evolved, for better and for worse

2009-02-22T02:57:00.001-08:00

Last year, as the recession worsened, we introduced you to struggling Nevadans. They were the faces of the growing economic calamity. Among them: a financial adviser, a carpet cleaner, a hotel receptionist, a mechanic and his wife.

Here’s an update on their lives.

• • •

We met Jack Safar, the mechanic, in October, trying to peddle 10 DVDs for cash at a pawnshop.

His wife, Elizabeth, had lost her part-time job as a car insurance saleswoman, couldn’t get another job and didn’t qualify for unemployment benefits. They had $30 in savings, a $93 gas bill and $620 in monthly car payments that weren’t being paid.

To save money, they were prepared to put Pongo, their 3-year-old Dalmatian, up for adoption.

Sun readers offered to take in Pongo. One man bought the Safars two big bags of dog food, for Pongo and 7-year-old Yorkshire Pebbles.

Some readers questioned why the Safars weren’t giving up their $40-a-month DirecTV package.

After their story was published, Wendy Marcisofsky, who manages a collection agency, said she wanted to talk to Elizabeth — not about a payment plan, but to interview her for a possible job.

Marcisofsky, manager of Progressive Management Systems’ local office, saw in Elizabeth someone with a background in customer service needing an opportunity. Four days later, Elizabeth was hired — as a collection representative, of all things.

“I put myself in their shoes,” says Elizabeth, 38, of the empathy she extends people who are delinquent in their payments. “What I’m going through, they’re going through.”

The Safars are still behind on their car payments — Elizabeth is making $11 an hour — but their vehicles are no longer in danger of being repossessed.

And they kept Pongo.

• • •

In the past eight years, Wally Grogitsky got cancer, lost his mother, beat cancer, discovered that his then-business partner had been embezzling money from their carpet cleaning company and divorced his wife (whom he’s since remarried).

His life hasn’t always been so trying. His Certified Carpet Cleaning made $250,000 in 2000.

But in October, the 49-year-old was earning $1,000 a month net and had just let his one employee go. Carpet cleaning wasn’t a priority for homeowners. Expecting little government help, Grogitsky told us at the time: “I’m going to have to be my own light at the end of the tunnel.”

The Grogitskys’ situation has worsened.

Business has slowed even more, and expenses outweigh earnings.

The Grogitskys are five months behind on a home mortgage that is far more than what the house is now worth. If they can get $249,000 for it, they’re still $122,000 short of what they paid. They’ve moved out to make selling the house easier and are now renting a house.

Lisa Grogitsky, a 46-year-old nurse, has drained much of the 401(k). Wally sometimes cashes checks after completing a job just to gas up his truck, and one of their children, a college student in Reno, called recently to say her tires were bald.

Wally worries that financial woes are straining his marriage. Money problems partly prompted their divorce.

“We’re worried the light at the end of the tunnel is a train that’s gonna run us over,” he says.

• • •

Jeff Ballek, 48, expected to weather the economic storm. A financial adviser who says he foresaw the collapse, Ballek and his family moved here in 2005 from St. Paul, Minn., with a four-year savings reserve.

When a promised job didn’t pan out, he started his own financial company, knowing it would take three years to make it viable. Because of the economy, he’s a year behind schedule — and says he’s got only a year left in savings.

He and his wife make a combined $75,000, much of which is put back into his business. He still needs bridge loans to keep his business afloat.

Ballek can’t escape his tumult, not when he’s advising clients gripped by similar fears.

“If I’m not thinking about something with us — which is maybe 25 percent of the time — then I’m looking at someone else’s situation, which could happen to us,” he says. “It’s a vicious cycle.”

• • •

When the original MGM Grand opened in 1973, Maria Chenes was 18 years old and working as a front-desk clerk.

For most of the next 35 years, Chenes worked at hotels, including an 18-year stint at Harrah’s Entertainment. Harrah’s laid her off last summer. Her union notified her three times of jobs, but nothing panned out, she told us in October.

In December, Chenes decided to leave casinos, take her $1,000-a-month union pension and find something new. The 54-year-old was going through a divorce (and still is) and had no savings.

News of Chenes’ story reached the mother of one of her son’s former soccer teammates, who offered her a job as an office manager at a nonprofit agency. The salary is just pennies less than the $15 an hour Chenes earned at Harrah’s and the work is socially significant: Her employer helps low-income people and seniors with emergency home repairs.

Car prices set to zoom

2009-02-14T23:53:00.000-08:00

New and used car prices are about to increase sharply, so prospective buyers should act now, motoring industry leaders say.

Motor Industry Association chief executive Perry Kerr says the industry is looking at a potential 40 per cent price increase driven by the falling dollar.

Another price-driver is the introduction of emissions standards, which limit imports to later-model, more-expensive vehicles.

If you can buy a car that's been in stock in New Zealand bought at a better exchange rate, then you may never buy that car cheaper, the Automobile Association's Jack Biddle says.

Figures for new and used car sales have fallen and Kerr says it is a good time to bargain with dealers, most of whose margins are about 10 per cent.

A dealer pays the finance cost of a car while it is on the floor, so will be keen to move stock. Biddle says salespeople will "do their utmost" to sell a car - and that may mean a discount or other incentive, such as fitting a tow bar or giving the best possible price on a trade-in. "You can never offend a salesman," says Biddle. "Ask them if this is the best deal they can do for you."
Giltrap Toyota in Auckland is throwing in warranties, service plans, AA road service and on-road costs worth at least $2500 on new models other than limited editions. The Winger Hyundai dealership in Greenlane favours giving price concessions over giveaways.

Globally, the car industry is suffering, with sales down 45 per cent in some parts of the United States.

Turners Car Auctions' chief executive Graham Roberts says his company sold more than twice as many repossessed cars last year compared to 2007 and he's expecting the number to keep rising.

"People are feeling the pinch and defaulting on their loans where a large percentage of the car's value was financed when it was very easy to access money," he says.

Turners' finance company has seen a surge in applications to its highest level as other finance companies have collapsed. Cars are also being auctioned by owners as their insurance or registration comes up for renewal.

"They've made a decision to go from a two-car family to one," Roberts says, marking a shift from New Zealand's earlier position in the top three countries for car ownership per capita worldwide.

"You're not going to get any change from $2000 for annual running costs on even a low-end car when you take insurance and other costs excluding fuel into account. It goes up from there, depending on whether you've borrowed and the type of car."

A SHARP DEAL
* Don't get caught up in "cash backs" - ensure you understand the deal.
* Shop around - the same make and model of car can differ in price between dealerships.
* If you have a car to trade in, see if you could get more by selling it privately.

Recession causes many drivers to drop insurance

2009-01-24T06:45:00.001-08:00

(NECN: Worcester, MA) - During tough economic times, car insurance is sometimes one of the things people drop first. But that doesn't mean it's safe.

Studies released this week are showing startling numbers of people driving without insurance. Which is both risky, and illegal in many states.

Travelers Insurance vice president Susan Scott says the recession has caused many drivers from coast to coast to drop their policies. Scott credits the Bay State's strict enforcement regulations for its number one ranking.

Car, home & Business Insurance

2009-01-17T22:29:00.000-08:00

The death toll from cholera in Zimbabwe has reached 2225, the United Nations said on Friday, warning that prevention measures were not working.

The UN's humanitarian coordination office (OCHA) said in Geneva that a growing number of deaths were occurring beyond the reach of health workers in rural areas, with 87 percent of the country's districts now affected by the disease.

The new death toll is 119 more than the 2106 reported by the World Health Organisation on Wednesday, while the number of people affected is up from 40 448 to 42 675.

"We've noticed a growth in the death rate outside the health system, of people in their homes, especially in the countryside," OCHA spokesperson Elisabeth Byrs told journalists.

"What we're worried about is the 51 percent who are 'community deaths'," she said.

"That proves that the results we were hoping for from the prevention campaigns and the distribution of medicines and supplies... are not being felt," she added.

The UN pointed to a "meltdown" in social and economic facilities in Zimbabwe, hit by political crisis and runaway inflation, that stopped the provision of clean water and proper hygiene, generating a cycle of "infection and re-infection", especially in rural areas.

Public health staff at government-run treatment centres were underpaid and in need of financial support to ensure continued treatment there, Byrs said.

Meanwhile, most of the working trucks left in the country are being snapped up for a massive food aid operation that is targeting six million people this month alone, leaving essential medical supplies by the wayside.

The OCHA said red tape was blocking the importation of more vehicles that were "desperately needed".

An added concern is the imminent flood cyclone season, which stands to worsen the impact of cholera, a water-borne disease. Zimababwe's government this week put out flood warnings as rivers swelled, the UN said.

On Thursday, neighbouring countries sounded the alarm about the rising number of infections, fearing an ever increasing regional spillover.

Detroit's woes extend beyond the auto industry

2008-12-20T23:02:00.000-08:00

Schools, scandal beleaguer city

By David Crary and Corey Williams
Associated Press / December 21, 2008

DETROIT - One measure of how tough times are in the Motor City: Some of the offenders in jail don't want to be released; some who do get out promptly reoffend to head back where there's heat, healthcare, and three meals a day.

"For the first time, I'm seeing guys make a conscious decision they'll be better off in prison than in the community, homeless and hungry," said Joseph Williams of New Creations Community Outreach, which assists ex-offenders.

For now, better times seem distant. Detroit has, by many measures, replaced New Orleans as America's most beleaguered city.

The jobless rate has climbed past 21 percent, the embattled school district just fired its superintendent, tens of thousands of homes and stores are abandoned, the ex-mayor is in jail for a text-messaging sex scandal.

And overarching these woes is the near-collapse of the US auto industry, Detroit's vital source of jobs and status for more than a century.

"We're the Motor City," said Scott Alan Davis, who oversees community development projects in one of the worst-hit neighborhoods. "When the basis for that name collapses, that's started to scare people."

Among the worried is Warlena McDuell, 81, a retired surgical technician who shares a home with her cancer-stricken daughter. On a recent weekday, she was among hundreds of Detroiters filling grocery carts at a food bank.

"It's a depression - not a recession," McDuell said, with the authority of someone who has lived through both. "It will get worse before it gets better."

Behind her in line was Benjamin Smith, 77, who once held jobs with Uniroyal and Chrysler. Maneuvering his cart slowly, one hand gripping a cane, he was unable to muster much cheer when someone extended holiday good wishes.

"How are we going to do well?" he replied. "Everything's busted up."

The roots of Detroit's current plight go back decades. Court-ordered school busing and the 12th Street riots of 1967 accelerated an exodus of whites to the suburbs, and many middle-class blacks followed, shrinking the city's population from a peak of 1.8 million in the 1950s to half that now.

About 83 percent of the current population is African-American. Detroit's crime, poverty, unemployment, and school dropout rates are among the worst of any major US city. Car and home insurance rates are high. Chain grocery stores are absent, forcing many Detroiters to rely on high-priced corner stores.

"There's always been a real can-do spirit among our people," said the Rev. Edgar Vann, pastor of Second Ebenezer Church. "That's being beaten down right now. . . . These times, unlike others, have sapped a lot of that spirit from them."

Vann, in addition to overseeing a 5,000-member megachurch, founded the Vanguard Community Development Corp., which under Davis's leadership is building homes and offering education programs in the blighted North End.

One apartment complex, for the elderly, is rising near two grade schools recently closed by the city that now sit empty and ransacked. "It's death to the neighborhood," said Vann, with some anger in his voice, as he gestured to homes that had been abandoned and vandalized since the schools shut down. He worries that despair may take a toll.

For all its woes, Detroit has no shortage of residents offering to tackle them. There are 15 candidates for the Feb. 24 special mayoral election necessitated by the conviction of Kwame Kilpatrick for trying to cover up an affair with a former top aide.

The challenges are daunting. Mayor Ken Cockrel Jr. said Friday the city's deficit is approaching $300 million, and he ordered all departments to cut their budgets by 10 percent. The public school district faces a deficit exceeding $400 million, prompting the state to declare a financial emergency. The district's superintendent, Connie Calloway, was fired on Monday.

About 44,000 of the 67,000 homes that have gone into foreclosure since 2005 remain empty, and it costs about $10,000 to demolish each vacant house, according to city planning officials.

Mannai Auto sponsors Team AA Motorsports at Losail Sprint

2008-12-14T00:21:00.000-08:00

True to its Motorsports heritage, Subaru was right in the thick of things at the recent Sprint at Qatar's world-famous Losail circuit.

Sponsored by Mannai Automotive. Qatar's female driver Reem Al Khater and the professional driver Abdul Wahid Abdul Haye made an impression driving the Subaru Legacy. In an event that featured 22 drivers facing each other off to clock the best time around the specially designed circuit, the Legacy team managed to run an impressive 1.44.00 and 1.44.03 minute sprint coming in3rd (Abdul) and 4th (Reem) in their class. 'We're thrilled with the performance of both car and drivers,' said Dharmesh Bhatt - Subaru Sales Manager, Mannai Automotive. 'This is the 3rd such event that we've sponsored this year and we're committed to continuing our support of motorsports in Qatar.'

Mannai trading is part of the publicly held Mannai Group and the sole importer of such prestigious automotive brands as Cadillac, Hummer, GMC, Opel and Subaru in the country. The new Subaru Legacy 2009 is distinguished by revised styling featuring chrome crossbars and a central Subaru logo that represents the company's aeronautical heritage. It also has an all new front sheet metal with a larger grille opening, new front and rear bumper fascias, and new headlights and taillights. The new front and rear design features reduced overhangs for a sportier appearance.

Inside, the Legacy sports a redesigned instrument panel and all new interior fabrics. A telescopic steering column and a new integrated ignition key/remote entry unit are now standard. Distinctive electroluminescent gauges, formerly featured only on the turbo Legacy and Outback models, will now be on the 6-cylinder models for 2009.

On the premium models, a redesigned steering wheel offers additional controls including audio system, cruise control, the multi-information display and separate Subaru Intelligent Drive (SI-DRIVE) controls. SI-DRIVE allows the driver to maximize engine performance, control and efficiency by choosing from among three selectable modes - 'Intelligent', 'Sport' and 'Sport Sharp.' The driver selects the preferred performance mode by using a rotary dial on the center console or the newly added button on the steering wheel.

The Legacy and the Outback both have a stellar safety leadership record. Beginning 2008, the hi-tech Vehicle Dynamics Control (VDC) stability and traction system has been available in more Legacy and Outback models, and the Tire Pressure Monitoring System (TPMS) is now standard on all Legacy and Outback models. Consequently, the Subaru Legacy has secured the highest honors from the Insurance Institute for Highway Safety. Both the Outback and the Legacy have also received the highest possible rating in crash tests from the National Highway Traffic Safety Administration.

'These two vehicles are among the safest cars on Doha's roads as of today,' says Helmy. 'And they're certainly two of our vehicles that we're proudest of as far as performance and safety go.'

Largest Collection Of Latest Cars Showcase At Oman Motor Show 2008

2008-12-08T03:04:00.000-08:00

Motoring enthusiasts in the sultanate only have until today to view the largest collection of the latest car models under one roof as Motor Show 2008 enters its final day at the Oman International Exhibition Centre in Seeb.

‘The latest car models from the world’s major auto manufacturers are truly impressive, and the exhibition effectively showcases the exciting developments in the industry with the participation of leading car dealers in Oman that represent a wide range of automotive brands,’ he explained.

Paul pointed out that Motor Show 2008 prominently features the newly launched models of 17 popular automotive brands, such as Audi, Chrysler, Citroën, Daihatsu, Dodge, Ford, Great Wall, Hino, Jeep, Kia, Lexus, Mazda, Peugeot, Seat, Skoda, Toyota, and Volkswagen. The various types of vehicles on display include 4-wheel drives, saloon cars, sports utility vehicles, pickup trucks, luxury vehicles, sports cars, sedans and hatchbacks, trucks, minis and convertibles. Many of the new models were unveiled during the exhibition itself, marking their formal introduction to the vibrant auto market in the sultanate.

Motor Show 2008 also showcases all-terrain vehicles from Yamaha and Polaris, Yamaha motorbikes and the Segway personal transporter. In addition, the exhibition displays a wide selection of auto parts & accessories as well as motoring products and services, including car loans, heat-control films, comprehensive car servicing/maintenance, automotive tyres, car insurance, Toyota genuine parts, lubricants and many other products.

The Vauxhall Flextreme Concept Car Receives the 'red dot' Award

2008-12-02T07:03:00.000-08:00

The Vauxhall Flextreme concept car has been recognised by an international jury for its outstanding design and has received the prestigious red dot award in a ceremony in Singapore.

The international red dot design award ranks among the largest and most renowned design prizes in the world. The red dot Singapore prize is awarded to the best design concept "that has the power to improve our world in the future". It is granted to products by an international panel of design experts who base their criteria on degree of innovation, functionality and formal quality. In 2007, the Saab Aero X concept car won the prestigious award.

"The high number of quality entries made this competition extremely challenging and, hence, winning the red dot an exceptional achievement," says Ken Koo, President of the red dot design award in Singapore.

The Flextreme was conceived at General Motors' European Design Center and premiered in 2007 at the International Motor Show (IAA) in Frankfurt. The car is a study of the future design of the monocab segment, incorporating alternative energy propulsion with fresh, bold styling. Vauxhall/Opel is the European leader in monocabs, a segment it helped pioneer with the Meriva and Zafira.

The Flextreme uses the new design language introduced under the direction of British GME Design Vice President Mark Adams and was first brought to market this year with the Vauxhall Insignia. With rear-hinged 'Flex doors' that enable comfortable access to the interior, a large transparent roof and twin tailgate doors that open from the side and swing upward, the Flextreme embodies Vauxhall's tradition of flexible and practical body concepts with attractive designs.

The concept car features GM's innovative extended-range electric vehicle technology system recently showcased in the Chevrolet Volt. An electric motor, powered by a lithium-ion battery, propels the Vauxhall Flextreme for up to 55 km on electric-drive-only. A 1.3 turbo-diesel onboard engine operates as a range extender and is used to drive an electric generator when the battery's energy has been depleted. The range extender is able to generate additional electricity to power the car for hundreds of additional kilometres.

"We are very pleased to have been awarded this prize," says Adams. "It is confirmation from our peers that Vauxhall/Opel is on the right track of offering bold, dynamic style along with great versatility and innovation."

Red dot awards have been presented to many renowned companies, including Apple, and Nokia. With the granting of this award, the Vauxhall Flextreme will join a variety of products - ranging from kitchen gadgets to electronic devices. Kenneth Parkinson, Vice President of design for General Motors Asia Pacific, accepted the award in Singapore on behalf of the European team.

CARZ FOR GIRLZ: Top 10 Car "Don'ts"! Avoid At All Costs!

2008-11-29T02:41:00.000-08:00

By Ilsye Gordon & Friends

Want to hear something both sad and completely incriminating? The crash rate for 16-year-old drivers is almost 10 times the rate for drivers aged 30-59. That's about 7,000 deaths a year by car accidents in this country. There are other issues at hand us girls need to look out for when it comes to cars, such as our safety, health and finances. Perhaps you've heard the lecture before, but from one young girl to another, make sure you have the following common sense points down!

#1: DO NOT co-sign for someone else's car loan. The quickest way to loose a pal and ruin your credit is to take long-term financial responsibility for someone who cannot handle their money – you're getting asked because the person is not credit worthy on their own (can you say big red flag?!). If they "default" on the loan or basically cannot make the car payments, you are absolutely, without a doubt, one hundred percent stuck with paying for the car.

#2: DO NOT leave your running car unattended. First of all, you're wasting gas and contributing to more carbon dioxide emissions or a larger carbon footprint. Also, if someone steals your car, you can't really call it a car jack if no one held you up to take your vehicle.

#3: DO NOT lend your car out to others. What are you going to do if they crash it? You have no contract stating they will pay you back for the damages. And when parents get involved, which is completely unavoidable in a situation this sticky, they might be the ones deciding who is at fault … and not everyone will agree it was the driver. People can act crazy in situations like this!

#4: DO NOT let others tell you how to drive. There is nothing as distracting as backseat (or front seat) drivers. Don't allow your friends to goad you into racing, speeding, or making illegal moves. Even parents. Although they might have a serious point to make, let them know you'll hear them out when you get off the road.

#5: DO NOT let a guy influence you to do something you're not sure of inside, outside or around a car. Love – or obsession – has a crazy way of increasing the size of your heart but shrinking the smart parts of your brain. All decisions have consequences, and some you just won't appreciate. Why jeopardize your finances, health, safety, or general future for the sake of going along with someone else's idea? You'll agree in the end it's just not worth it.

#6: DO NOT take that cell phone call or text that message. Or be willing to pull over and park to do your business. Take head many states have laws against this behavior. Getting a ticket of any kind could cause your car insurance to skyrocket!

#7: DO NOT drive when under the influence. Combining the inexperience of driving with the inexperience of drinking is a bad mix. A car accident can ruin your life and the life of your parents – college, career, finances, friends and self-worth – all changes for the worse in an instant.

#8: DO NOT drive an unsafe car. Get that rattling noise or brake issue fixed! Look here on The Auto Channel for affordable vehicles – SUVs, trucks, compacts, CUVs and sedans – and study their safety ratings on braking, side impact crashes, and airbag deployment

#9: DO NOT pick up a hitchhiker or stranger. If you sense someone needs help, pull over at the next exit and call the highway patrol. Put your safety first and your Good Samaritan sense second. You're a female, after all, and naïve, young women are often a target for violence.

#10: DO NOT think a Car Fairy is going to come around and buy you a car. No matter what your parents might have (or have not) promised you, start putting your coins and dollars into a self-created car fund. I don't care if you're the next star on MTV's Sweet Sixteen – take some responsibility and learn how to afford yourself!

Warning over whiplash 'epidemic'

2008-11-15T19:18:00.000-08:00

The number of claims for whiplash injuries following road accidents is soaring, say British insurance firms.

The Association of British Insurers (ABI) says that its members receive almost 1,200 claims of this type every day, worth £2bn a year.

The injuries themselves cost the NHS an estimated £8m a year, it says.

The AA said that drivers could reduce the risk of whiplash injuries by adjusting the head restraints in their cars to the right height.

Whiplash happens when soft tissues in the neck are damaged by sudden movement, and are often linked to road accidents in which the patient's car has been hit from behind.

While many cases involve relatively mild pain and soreness for a few days afterwards, in a small number of cases, it can lead to permanent disability.

The ABI's report on the injury names the UK as the "whiplash capital" of Europe, accounting for three quarters of personal injury claims related to motor accidents.

In 2007, more than 430,000 people claimed for whiplash, a figure which had risen by a quarter over the preceding five year period.

Stephen Haddrill, the director general of the ABI, said that it was now an "epidemic" which produced "unacceptable costs" for the state, individuals, and businesses.

"Insurers want to reduce whiplash, provide fast care and compensation and tackle fraudulent claims.

"We call on the Government, road safety groups, the medical and legal professions and other stakeholders to work with us on a campaign to reduce this problem."

Too close for comfort

One of the biggest causes highlighted by the ABI was "tailgating" - driving too close to the car in front, and it called for the government's proposed new framework for learner drivers to emphasise safe following distances.

In addition, it wants car retailers to show buyers how to adjust the head restraint on their new vehicle.

The AA said that whiplash claims were putting increasing pressure on insurance premiums.

It said the cost amounted to £66 for every UK car insurance policy - twice the cost for claims for accidents involving uninsured drivers.

Edmund King, its president, said that most drivers who suffered a whiplash injury could have prevented it themselves, even if they were at no fault in the accident.

"Drivers and passengers can help prevent themselves becoming victims of whiplash by adjusting head restraints before they drive off.

"The top of the head restraint should be level with the top of the driver's head, while the back of the head should be as close as possible to, and ideally touching, the restraint.

"Drivers can avoid inflicting whiplash on themselves and others by keeping a safe distance - at least two seconds - from the vehicle ahead."

Uninsured/Underinsured Drivers and Car Accidents

2008-11-04T00:06:00.000-08:00

Motorists in South Carolina, as in most states, are required to have insurance that meets specific minimum coverage requirements. Another South Carolina law requires certain motorists, who meet strict requirements, to register as uninsured motorists. Between registered uninsured drivers and those who have not registered as such, the estimated number of uninsured drivers in South Carolina to 10%.

Uninsured/Underinsured Motorist Coverage

South Carolina is not a “no-fault,” state. This means that you are not required to have uninsured (UM) and underinsured motorists (UIM) coverage. You have the option to decline insurance that covers UMs or UIMs. Alternatively, you are eligible to purchase UM and UIM insurance coverage up to the amounts you have covered on your existing policy for an additional premium.

If you decline UM and UIM insurance, your policy will not cover injury or damages to you, your passengers, or your property if another driver is at fault. This leaves you vulnerable if you are in an accident with either an uninsured and underinsured motorist.

Degree of Risk

When you add all the drivers who are insured at the minimum coverage allowed by law to the 10% of drivers who are uninsured, there are even more drivers on the road whose coverage may not be sufficient to compensate you for your damages. Their minimum coverage policies will pay for your injuries and damages only up to the limits of their coverage. You will have to either sue to recover your costs that exceed that amount or pay for them yourself.

Out of Pocket

Until you receive compensation, you will be expected to pay the remaining costs up front, since they usually have to be paid before a settlement is reached. These costs may include unpaid vehicle repairs or replacement, extensive medical care, loss of wages, lost property, and possibly your attorney costs. If the underinsured driver has few or no assets, your chances of recovering all of your losses are not good.

Alternatives

While there are a few potential sources of compensation when the at-fault driver is underinsured or has no insurance at all, these options can take months or sometimes even years to pursue. Having sufficient insurance is always the better, more certain choice.

Purchasing UM and UIM insurance is a good way to make sure you are covered for medical care or property loss if you are in an accident that isn’t your fault.

If you have been involved in an accident with an uninsured or underinsured motorist, please visit the website of McWhirter, Bellinger & Associates, P.A. for more information.

Queens man gets $235G for chomp by cop's dog

2008-10-22T20:46:00.000-07:00

BY NICOLE BODE
DAILY NEWS STAFF WRITER

A Queens man who claims cops beat him, and a police dog mauled him during a bogus arrest has won a $235,000 settlement from the city.

Tyrell Garcia, 24, who works in an animal hospital on Long Island, said he still bears an oozing wound on his left calf from the Aug. 14, 2007, incident.

TYRELL GARCIA'S INJURIES
Garcia charged that police tailed him to the Laurelton home he shares with his grandmother, chased him through the house and into a neighbor's yard and pistol-whipped him.

His suit said the cops sicced a K9 on him - ripping a chunk of flesh from his left leg - and that he was then denied medical treatment.

Garcia and his grandmother, 70-year-old Dorothy Garcia, accused the city, NYPD Detective Sean Ward of the 105th Precinct and six other officers of "excessive and unreasonable force," assault, battery and illegal search and entry, in the suit filed in federal court last year.

While the city admitted no wrongdoing, it agreed to the settlement, which was filed Tuesday.

"The settlement was in the best interest of all parties," said Connie Pakratz, a spokeswoman for the city Law Department.

Police said previously they followed Garcia because they were seeking information about his friend, attempted murder suspect Rhian Taylor.

Garcia drove Taylor to his lawyer's office to turn himself in just before the incident, he said.

Garcia, who has no criminal record, was not charged in the murder. He was cited for a broken tail light, not having car insurance and trespassing - charges which were subsequently dropped, his lawyer said.

"This is just another example of the New York City Police Department brutalizing the very people they're supposed to be protecting," said lawyer Robert DiDio who worked with attorney Fred Lichtmacher.

nbode@nydailynews.com

Taken for a Ride

2008-10-10T00:42:00.000-07:00

By Chandra Niles Folsom

You have a perfect driving record but not a perfect credit history. Yet, if you think your auto insurance rates will be low, think again. The insurance industry has got a nasty little secret they'd rather you didn't know about: Credit histories are used to determine auto insurance rates.

That's right. In this state, an insurance applicant with a perfect driving record, no previous claims or accidents but with a less than perfect credit history can be charged premiums 50 percent higher than regular rates. The practice has been increasing in use over the past eight years, and not just in Connecticut, the insurance capital of the nation.

"I didn't think this was a fair practice and so I asked the Insurance Commissioner with the State of Connecticut to explain the rationale," says a Fairfield insurance agent who represents 20 insurance companies throughout the state. "I was told that people with poor credit ratings tend to let their insurance policies lapse and this makes them less desirable clients."

A Federal Trade Commission report issued last summer cited credit scores as an effective predictor of the frequency of claims and the total cost of those claims. But consumer advocacy groups disputed those findings, arguing that the use of credit scores by insurers discriminates against low-income and minority consumers.

"This issue with over-reliance on credit histories doesn't make sense," says Kelvin Roldan, one of 19 Connecticut General Assembly representatives serving on the State Real Estate & Insurance Committee. "The insurance companies' argument that low-income people file more claims isn't supported by evidence and it discriminates against African Americans and Hispanics."

Furthermore, people who live in cities already pay higher insurance premiums than suburbanites and city residents tend to be minorities who statistically earn less money. "So, when they are hit with higher rates because of their credit it's like a double whammy," says Roldan, a Hartford Democrat.

Roldan hadn't yet been elected when legislation was proposed to stop the practice in 2001 (House Bill 5821) and again in 2003 (Committee Bill 5490). Neither bill made it through the session. Will Roldan and his cohorts try to pass it again during the next session?

"It did come up for discussion but I'm not sure when legislation will be drafted," says Roldan. "We are in an election cycle and so I don't know who will be serving next term. But, I think the practice is biased and I'm against it."

Attorney General Richard Blumenthal says that the standard is unwarranted and discriminatory. "I think this practice is unfair and unwise, especially as so many more individuals encounter tough economic times and the numbers of people potentially at risk of negative credit histories are clearly growing," he says. Blumenthal testified before the Insurance and Real Estate Committee on behalf of House Bill 5821, in 2001.

"It's a disturbing trend," says Austin King, Director of Financial Justice for ACORN (Association of Community Organizations for Reform Now). "We've been hearing about it from consumers over the last couple of years. It's a major issue for low-income people around the country. Increasing their insurance premiums just exacerbates the problems they face. It's economically devastating for them." King adds that credit reports are not always accurate and sometimes are based upon a late payment by someone who otherwise has a clean record.

The Hartford Insurance Company and the Connecticut Casualty Company did not return our phone calls, but the Insurance Information Institute Web site had this to say:

"An insurance score is a numerical ranking based on a person's credit history. Actuarial studies show that how a person manages his or her financial affairs, which is what an insurance score indicates, is a good predictor of insurance claims. Insurance scores are used to help insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming. Statistically, people who have a poor insurance score are more likely to file a claim."

"Now, as people encounter economic difficulties—late mortgages and credit card bills due to layoffs—why should they also be charged more for their auto insurance?" asks Blumenthal. "There is no persuasive argument that there is a correlation between credit history and driving abilities and I see no evidence to support that concept. In fact, I would think that people in financial distress would drive more carefully."

So, why is the practice allowed to go on?

"The practice is permitted because it has not been prohibited by lawmakers," says Blumenthal. "Insurance companies are so powerful in their influence and lobbying efforts have succeeded so far in resisting every regulation."

Regulations prohibit denial, cancellation or failure to renew policies on the basis of non-risk factors such as race, age, sex, marital status, occupation, and principle location of the vehicle. "Credit-worthiness should be barred in the same manner for similar reasons," says Blumenthal. "Insurance company underwriting policies countervene the goals of auto insurance reform. Denying people with bad credit history affordable insurance will increase the number of uninsured motorists in this state, further burdening those who obey the law and carry insurance."

Last year's Federal Trade Commission report also determined that there was a "relatively small" chance of credit scores being used as a substitute or "proxy" for race or ethnicity. Recently, the FTC announced that it would use its subpoena power to gather data from the nation's nine largest insurance companies for the next part of its study, to examine the use of credit scoring on home insurance premiums.

"The goal of the study is to determine the impact that the use of credit scores has on the availability and affordability of insurance and also any impact it has on racial or ethnic minorities," says Lydia Parnes, director of the FTC's Bureau of Consumer Protection.

"It's a scandalous practice that shows auto insurance companies are practicing another form of economic discrimination," asserts ACORN's King. "It's about as logical as using someone's driving record to see if they should get a credit card."

http://www.fairfieldweekly.com/article.cfm?aid=9956

Making moving easy

2008-09-21T03:30:00.000-07:00

By Louisa Fletcher, 20/09/2008

MOVING house is pretty stressful—and I should know because I did it myself a couple of weekends ago.

In fact, while I was packing I worked out that I’ve moved 11 times in the last nine years.

And I can tell you that it doesn’t get more enjoyable the more you do it!

But you can make it slightly easier.

First off, get organised. No surprises there but it’s amazing how many people leave it to luck and the last minute.

Whether you’re doing it yourself or hiring a removal firm, have a big clear-out at least two weeks before you move.

If you’ve not worn or used it for six months, bin or recycle it. Don’t waste time and money moving stuff you don’t need.

The worst places for the build-up of junk are garages, sheds and lofts, so be particularly ruthless here. Pack the rest up as you go—don’t forget that on the day, you’ll only have a few hours to empty your home. The more of a head- start you get, the better.

Hiring a man with a van or a renting a self-drive is cheaper than using a removal firm. But you won’t get packing services or insurance for possessions while in transit.

So rope in family and friends, and check with your home insurer that your policy covers any accidental damage. If you use a removal firm, try to move at the beginning or middle of the week—companies often charge a premium rate for Friday and Saturday moves.

I shopped around and moved on a Monday with Pickfords, who were great and offered me the best deal.

Make sure you get a full written quote, so you know exactly what’s included in terms of packing materials, insurance, and mileage charges.

Try to get a late completion waiver so if your sale doesn’t complete until late in the day, you won’t pay extra because your removal team has been standing around.

Use a colour-coding system for each room. Put coloured stickers on boxes and furniture depending on which room they’ll be going in. Use bubble wrap, lining paper and reinforced boxes for your crockery and other breakable items. Don’t use newspaper, as it smudges, and clearly label the boxes “fragile”.

And don’t overpack—you need to be able to carry the boxes comfortably, and you don’t want the bottoms falling out. And fill gaps with towels or cloths—less space means fewer breakages.

When you come to unpack in your new kitchen, put stuff in roughly the same place as it was in your last home e.g. knives and forks in the top drawer, otherwise you and your family will be hunting for stuff for at least a week.

Another stress-busting tip is pack up the bedrooms last, so when you get to the other end they’re first off the lorry. Put clean bedding, towels and pyjamas together, ready for when you hit the sack.

You’ll also need an “essentials” box of disposable cups, plates and spoons, kitchen roll, toilet roll, bin bags, a kettle, tea, coffee, cartons of juice for the kids, and snacks. Put it in your car, not the van, so you can get to it easily.

On your way out the door, have a last look round and read your meters so you can contact your utility companies for a final bill.

Oh, and another thing . . . it’s a good idea to have a bottle of wine, a couple of glasses and corkscrew in your essentials box so you can celebrate being in your new pad—even if you are sitting on tea crates.

Car drivers could save £6500 by switching to bikes

2008-09-15T04:23:00.000-07:00

By Visordown News
'It costs 47% more to drive a car on the average commute than to ride a motorbike in the current economic climate' says financial expert

A RECENT study has shown Brits could save up to £6,500 a year by swapping their car for a motorbike, say Bennetts Insurance.
A leading Personal Finance expert calculated that it costs 47% more to drive a car on the average commute than to ride a motorbike in the current economic climate. It's not only the increasing motoring costs such as fuel and tax that are on the rise, the credit crunch is also making it much more expensive to borrow money and as inflation hits its highest level for 16 years, Brits are at risk of falling into increasing debt.

Crikey folks, it looks like the message is finally getting through.

Driving down to Mexico

2008-09-02T06:24:00.000-07:00

For our 10th winter vacation in Mexico, my wife Linda and I decided to drive there for the first time. We have sojourned on the island of Cozumel off the east coast of Mexico, stayed at resorts in Puerto Vallarta, Mazatlan and Playa del Carmen, and rented a house for a month in the colonial San Miguel de Allende.

In 2008, for the third consecutive year, we rented a condo on the Pacific coast, a half-hour drive north of the port city of Manzanillo, less well-known than other places with many all-inclusive resorts. The reaction from friends when we said we were taking the car was, "What! You're going to drive to Mexico?"

Some folks were dubious, but we weren't. At the Vida del Mar condo development of 13 buildings near Santiago at the northern edge of Manzanillo on the west coast, we had many chats with folks who drove from Canada and the United States.

From British Columbia, Minnesota, Colorado, Wisconsin and Idaho, they were there to escape winter and spend part of "the season," Nov. 1 to April 30, in glorious sunshine.

Here's how to drive to Mexico: Get some American cash and Mexican pesos. Aim the car south. Follow your nose. Go. We went south on Highway 2 from Edmonton to Fort Macleod, took Highway 3 to Lethbridge, then Highway 4 south to cross into the U.S. at Coutts. We were on good four-lane highways all the way.

We allowed eight or nine days for the journey, spending nights en route with family and friends in Calgary, Salt Lake City and Phoenix. Two nights in Las Vegas provided a vacation within a vacation. Hotels in the U.S. and Mexico were booked in advance on the Internet.

Before you leave home, though, get your paperwork in order.

First, you need Mexican car insurance. Friends recommended American agents who deal with Mexican insurance policies. I talked on a toll-free line to one company that came highly recommended, then filled out an online application form. The policy arrived via e-mail minutes later. A printed copy in English and Spanish came by mail a few days later.

We crossed at Nogales, just south of Tucson, Ariz. At the end of the "free zone," 21 kilometres south of the Mexican border, we stopped to buy tourist visas for about $25 per person, payable with cash. A car permit costs about $32, payable by credit card only. A sticker goes on your windshield. It's important to keep the paperwork when returning, to show customs officials, who remove the sticker.

Save time at the border by reporting to immigration with two photocopies each of your passport, driver's licence and automobile registration. You will then need photocopies made of the tourist visa from the service available.

In Mexico, from the border to Manzanillo, we took the cuota, or toll roads. They are wider, faster and smoother than the libre (free) roads, and don't go through many small towns where topes, or speed bumps, will launch a car airborne if not approached slowly.

Toll fees for the cuota were about $145 each way, the trade-off being that it is more direct and the traffic is lighter. The highways wind along volcanic mountains and valleys with plantations of coconut palms, bananas, mangoes, papayas and sugar cane, and through ranch country and meticulously groomed farms of fruits and vegetables.

Car insurance rates in New York shooting up again

2008-08-25T04:11:00.000-07:00

Jose Ferreia of the Bronx may be smiling but he's not happy as he checks out his insurance card. "It's too high," he says of his $1,900-a-year bill.

ALBANY - After two years of declines, car insurance rates in New York are climbing again.

That's bad news for New York drivers, who already pay the second-highest premiums in the country and are dealing with sky-high gas prices.

"It's ridiculous," said Rafael Valentin, 46, of Park Slope, Brooklyn. "I've been with Allstate for five years and it just keeps going up and up and up."

So far this year, the state Insurance Department has approved six requests for rate increases - the largest being a 7.4% hike by Farmers New Century Insurance Co., records show.

That could be just the start.

There are 48 other companies with pending requests for rate hikes that average 7% - despite fewer accidents and a decrease in car travel because of high gas prices.

By comparison, 31 companies actually dropped their rates last year, according to Insurance Department statistics.

"This is a heavy hit for drivers," said Russell Haven of the New York Public Interest Research Group. "The Insurance Department should be extremely skeptical of rate increase requests in the face of substantial reductions in driving mileage."

Valentin said he pays $3,400 for annual coverage on a 2003 minivan - and that's without tickets or accidents.

"I don't blame people who go out of state and register their car," he said. "It's just too high."

Insurance Superintendent Eric Dinallo recently got Geico to withdraw a rate request based on the fact people are driving less. He's asked other companies to follow suit.

The 7% average increase being sought by insurers in New York is far higher than the 2.6% average hike requested by auto insurers nationally.

The Insurance Department still has final say on all rate increases.

That's set to change.

Under a new law that kicks in next year, auto insurers will be able to increase or decrease rates by as much as 5% without department approval.

"It's too high," said Jose Ferreia, 44, of the Bronx, who reports paying $1,900 a year in car insurance. "It's not right to bring up the prices without having consideration for the people who follow the rules of the road."

Insurance Department and industry officials say that despite dips in the overall number of accidents, companies are paying out more in claims because of increased repair and medical costs.

In 2007, companies on average paid out 61 cents in claims for every $1 they collected in premiums, a 10% increase over 2006, according to Insurance Department data.

Geico, the state's largest insurer, pays out the most - 70 cents per $1 in premiums. New York Central Mutual and Nationwide pay out the least, less than 50 cents per $1.

Haven said the payouts are still "pretty low overall."

But Insurance Department and industry officials say that tells only part of the story.

When expenses in addition to medical and repair costs are factored in, most companies right now are banking little profits from the premiums they charge, they say.

In fact, when expenses are considered, three companies - Geico, State Farm and Progressive - pay out more than they collect in premiums, state figures show.

"It's a cyclical market but one where profit margins are not unreasonable by any standard," said Robert Hartwig, president of the Insurance Information Institute, an industry trade group.

"There's times when the industry sustains tremendous losses and needs to earn profits to tide it over for the bad years."

That's little consolation for drivers like Isabel Sierra, 42, of White Plains, who pays $3,200 a year for two vehicles.

"It's frustrating when the bill comes," she says, "but you have to pay. There's really nothing you can do."

Fight against increased road accidents

2008-08-22T04:48:00.000-07:00

The roads of Cayman Brac continue to be the scene of what appears to be increasing numbers of road traffic accidents. On Thursday, 7 August Cayman Brac Police arrived on the scene of a single vehicle accident involving a car that hit a tree at the corner at Water Authority in West End. The accident was not called in but due to active policing and patrolling of the streets, the accident was discovered.

A man, who sustained foot and body injuries, was found conscious and he was subsequently assisted by friends travelling in the same direction. He was taken to Faith Hospital, treated and released the following day. This followed two other accidents in the month of July as one vehicle overturned on the South Side and another vehicle ran into a light pole opposite Brac Power and Light, resulting in lost of electricity for a few hours.

Another major accident occurred on the 14, June where a woman driving in the early morning hours ran off the road and collided into a light pole on the south side near Carib Sands. The accident occurred around 2:30 am and the injured occupant limped to Carib Sand to attain assistance. The woman sustained serious injuries and had to be flown out to Jamaica for additional treatment.

On Friday, 15 August a Ford Pickup overturned on the South Side. Preliminary investigation suggests that the tyre exploded and the driver lost control of the vehicle. The driver suffered minor injures but was taken to hospital for precautionary measures.

Despite recent government claims that the roads on the Cayman Islands are getting safer, official Royal Cayman Islands Police Service (RCIPS) figures for 2006 show a 60 percent increase in non-fatal accidents. RCIPS have beefed up their operations in recent months in Cayman Brac by setting up speed traps and increasing their presence on the road. This accounted for a high volume of traffic offences scheduled in court action last month.

In speaking with a member of the police service, the plan is to execute a process which will seek to educate the public on the dangers of reckless driving, and try to channel the energy of speeders in more appropriate avenues. “If persons are cognizant of certain mitigating factors that often contribute to road accidents, then I think they will act more responsible, especially young persons, who are more often than not the group reported for going over the prescribed limit,” said the officer. He continued to say: “Our role in the community is not just to prosecute, but to edify the members on all facets of the law so that the community can remain safe for our children and everyone.”

The idea came about in a joint effort to combat road accidents within the community and dangerous driving is said to be a hot topic for a community with a majority of the speed limit set at 25kmh with a maximum of 40kmh is a few zones. “Lack of experience, maturity, and a pre-disposition to taking risks, make teens the most vulnerable category of road users; hence educating is one stringent method to combat this ordeal,” said the officer.

In recent meetings hosted by the Cayman Brac police, Chief Inspector Patrick Beersingh was questioned on the issue of implementing speed cameras on the island. He commented that RCIPS is looking at the possibility of installing speed cameras, a measure popular with police in other countries. “It is an issue that will be given thought and a decision to be taken in the near future”. In the meeting the inspector also informed those present that there will be an increase in police presence on the roads of Cayman Brac; this is now visible in the community.

The Rotary Club of Cayman Brac’s President, Alphanso Gayle, has expressed the desire of the club to create a safer environment for the children of the community by installing signs along the road inviting drivers to slow down when approaching communities or play areas for kids. “Our motto is ‘Service Above Self’ and so I believe that as a club we can meet our objectives to improve the lives of our children, to keep them safe and to invest in their future. Together we can make dreams real,” Mr Gayle said.

The new initiative of the police department will be made public for everyone to become aware of the new strategies and to give public feedback. “Our desire is to get this process started as quickly as possible and hopefully the final document will be made public for the next issue of The Bracker,” the police officer said.

For each accident that occurs involving the loss of electricity, if someone hits down a light pole (damage to property) then the offender is required to replace that pole whether they pay cash and claim from their insurer or they send the bill directly to the insurance company. The cost of light poles varies and may start from $500 depending on size; there are additional costs such as $100 to dig a hole, and to pay the workmen overtime if this is outside normal working hours.

What should prompt road users to be more careful is that, information on the damage sustained to a light pole as a result of a motor vehicle accident is required by RCIPS if they are prosecuting someone before the courts; Cayman Brac Power and Light has to furnish them such information by law. Offenders will also attract the cost of paying the power company for the time lost when there is an outage. There will be higher costs if the area is highly populated as the company would be losing money by the minute.

'Write-off' confusion

2008-08-19T05:33:00.000-07:00

Used car buyers face an increasing risk of potentially buying a death trap, due to confusion over the term 'insurance write-off.'

Vehicle information specialist HPI is calling for used car buyers to be sure they fully understand the meaning of the term.

Figures show there has been a significant rise in vehicle write-offs over the past 10 years.

Nick Lindsay, Director of HPI explains, "A recent report found the number of annual total losses declared by insurance companies has risen by an astonishing 86% since 1998 to a total of 790,000, meaning write-offs now amount to nearly a quarter of all insurance claims.

"Any vehicle that has been declared a write-off by an insurance company is placed into an industry recognised damage classification, depending on its condition.

"With 8% of vehicles checked by HPI being recorded as a category A or B write-off - vehicles which should have been crushed and never returned to the road - the rise of the insurance write-off means that used car buyers face an even greater risk of potentially buying a death trap."

The HPI database has information on over 650,000 written-off vehicles and will show if a vehicle has been declared a write-off as well as providing the category of damage.

A check against HPI's Condition Inspected Register, which is a database of written-off vehicles that have been repaired and passed a Thatcham-approved inspection, will confirm if a category C write-off is in fact fit for the road.

"It's easy to be taken in by shiny paintwork and a low price, but the reality is the paintwork is shiny because it's hiding a multitude of faults that haven't been fixed", continues Nick Lindsay.

User car buyers can conduct an HPI Check by calling 01722 422 422 or logging onto www.hpicheck.com

Subaru Forester SUV strives for eco-friendly status

2008-08-11T16:49:00.000-07:00

Drive a SUV through certain segments of society and you're likely to be derided as a fiend personally responsible for blackening the sky, raising gas prices and aiming for people in crosswalks. Why, then, don't Forester drivers, who technically are hauling around town in SUVs, face the same psychic daggers from the Green populace?

It's because Subaru has, rightly, established a reputation for well-made, smart vehicles, the Forester traditionally has been one of its most reliable, and because people in Subarus, for the most part, don't drive them like testosterone-laced buffoons. Since its American introduction in 1998, the Forester has been big enough for the family but not so gallootish as to send small cars skidding out of the way. It's more of a taller station wagon than a sport ute. And — it must be said — Subaru has traditionally turned out fairly homely vehicles, endearing it to bohemians and nonconformists everywhere.

Now, for 2009, it's been both blanded down and given steroids; it's bigger everywhere. What remains is a brickhouse-solid, well-laid out machine that can take it over rough city roads, busy highways and inclement weather.

You're not going to pound through forests or valley streams, but it's got a particularly balanced build that I trusted over a 300-plus-mile weeklong test through sheets of rain and Dante-like summer heat. It's also a particularly safe ride, too, having recently earned the Insurance Institute for Highway Safety's highest safety thumbs-up, the Top Safety Pick, for its stellar performance in rear-impact, side and front crashes. The car is further assisted in fender-benders — and worse — by an electronic stability control system, active head restraints, side-impact front airbags and air curtains. If you're going to wreck, this is the vehicle to do it in.

It comes in many flavors; the base 2.5X; the 2.5X Premium Package, 2.5X Limited, 2.5XT and my fully-equipped tester, the 2.5XT Limited. The price is right for the base model, starting at $19,995 and including a five-speed manual transmission mated to a four-cylinder, 2.5 liter, 170-horsepower engine; stickers rise from there to the 2.5XT, starting at $26,195. Its interior uses new higher-quality materials, including double-stitched fabrics and high-grade plastics. Mileage is an OK-but-not-miserable 20 miles per city gallon, 24 highway.

A longer wheelbase yields improved interior roominess and ride quality over previous models, and its new chassis improves crash-worthiness. Finally, my prototype test model had a panoramic sunroof spanning the front and rear, making the car almost a convertible, when desired. That alone places the Forester ahead of its competition in its price range.

If there's a single complaint, it's the absence of the Forester's formerly nerdy body - but adolescence has to end sometime.

Center Township fire destroys barn, farm equipment

2008-08-09T03:52:00.000-07:00

Center Fire Department responded to a possible grass fire late Friday afternoon, but the fire turned out to be a large barn containing several thousand dollars of equipment, hay and other belongings.
The 5:28 p.m. fire was located at the Abel residence -- located on Carmichael Road off of State Road 45.

When Center Fire units arrived flames was nearly 60 feet tall. The fire was quickly knocked down by Center Fire Department, but Center Fire Department had to have the help of Owensburg, Eastern and Van Buren Fire Department with putting the fire completely out.

A neighbor also assisted with a John Deere tractor by pulling the hay out of the barn so it could be put out.

The building was a total loss along with four tractors, a car, and other farm equipment.

The home owner stated that she did not have insurance on any of the equipment or the barn.

Pay-as-you-drive insurance rates heading

2008-07-28T05:17:00.000-07:00

by Joe Donohue/The Star-Ledger

A new concept in determining auto insurance bills is coming to the state with the nation's highest average rates: pay-as-you-drive.

For the first time, a New Jersey auto insurance company wants to equip cars with high-tech devices that constantly track motorists' driving habits to determine how much they should pay.

Starting Aug. 8, Progressive Corp. will offer discounts to its 127,000 Garden State drivers if they install in their cars wireless devices that tell the insurer how many miles they drive, what time they're out on the road, and how often and how fast they accelerate and hit the brakes.

The company is dangling 60 percent rate discounts for the best drivers. Those who quickly rev up or slam their brakes, however, could face surcharges as high as 9 percent.

New Jersey will be only the fifth state with the pay-as-you-drive devices offered by the insurer.

"This is definitely the wave of the future," said Loretta Worter, vice president of the Insurance Information Institute. "More and more companies are getting on board with tracking devices, seeing they offer a lot of advantages to consumers."

Supporters of the idea say it reduces traffic because drivers want to keep their miles down. They say it improves drivers' safety habits and cuts air pollution. They also contend it's fairer than other new ways to charge motorists, such as basing rates on motorists' jobs, credit scores or level of education. But others worry the devices are akin to having Big Brother riding shotgun.

"It's a good idea for some people. It's not for everybody," said Richard Hutchinson, general manager of usage-based insurance for Progressive. "People need to think about this in their own situation."

The insurer does not use how fast motorists drive as one of its rating factors and the company does not rat out speeders to the police, Hutchinson said.

In other states, about one-third of the company's customers have enrolled and they are saving about 10 to 15 percent. New Jersey drivers pay an average of $1,184 per car in auto insurance premiums -- highest in the nation, according to the latest statistics.

Hutchinson said the company can offer discounts because drivers are safer when they know they're being monitored. Motorists may quit the program at any time.

The pocket-sized sensors, with the wireless transmitting capability of cell phones, are plugged into onboard diagnostic ports in cars dating back to 1996 models. Each day, they signal to Progressive computers about miles driven, when drivers are on the road and how they brake or accelerate.

"We're supportive of a method that actually looks at miles driven," said Stephen Carrellas, representative of the New Jersey chapter of the National Motorists Association. "Basically, the more you drive, the more you have a chance to be in an accident."

J. Robert Hunter, director of insurance for the Consumer Federation of America, said he generally views "pay-as-you-drive" insurance plans as good for motorists but worries that tracking what time they drive could penalize low-income drivers working late-night shifts.

A recent Brookings Institution study found that if all drivers paid for insurance based on miles driven, overall driving would drop 8 percent in the nation and 13.5 percent in New Jersey. It would reduce total carbon emissions by about 2 percent, the study found.

"Going easy on the pedal and easy on the brakes not only helps safety, but also the environment," said Mike Replogle, transportation director for the Environmental Defense Fund.

But Charles Samuelson, executive director of the ACLU of Minnesota, a state where the device is used, worries about privacy.

"We see this as kind of a creeping abduction of people's data," he said. "Basically, once they collect that data, it belongs to the insurance company. That's a big problem."

Progressive's Hutchinson admits privacy has been a concern since the program started with a pilot project in 1999. He said the devices do not include GPS locators that would enable the company to track every movement. "The primary concern that comes up is: 'Are you tracking my whereabouts?'" he said.

Just like car owners with EZ-Pass toll transponders, drivers with computers may obtain access to all monitoring data online and see how they compare with others in the state, he said. While the data is subject to subpoenas or court orders, so far the company hasn't received any. The company does not sell the data to third-party marketers.

Allstate, New Jersey's second largest insurer, is testing devices that monitor traffic and attempt to avoid accidents. A few other companies that do not do business in New Jersey also electronically track driving behavior.

Car insurance premiums could rise as drivers blindly follow sat navs into danger

2008-07-22T05:25:00.000-07:00

Drivers from the UK are risking higher car insurance premiums by blindly following their satellite navigation systems, a new report has warned.

Research from NFU Mutual found that more than a quarter of drivers said they have followed their sat nav''s directions even if it appeared to be sending them down a unsuitable rural road.

Worrying, this means that people are increasing their risk of having a serious accident and needing to make a claim on their car insurance, as rural roads have higher crash rates.

Indeed, 91 per cent of drivers correctly said rural roads are more dangerous, but 35 per cent of people admitted to not driving more slowly on them.

"The survey shows that there is still an alarming lack of knowledge about the hazards of rural roads," commented Ian Jewitt of NFU Mutual.

"It''s particularly worrying that a quarter of sat nav users continue to follow the gadget''s instructions even when their eyes tell them they are heading up a farm track. This may account for some of the reports of vehicles stuck in fields and deep fords."

Recently, it was revealed that consumers were not looking to switch insurance provider, even in the face of rising premiums.

How to buy a classic car

2008-07-18T04:45:00.000-07:00

The collectable classic car looks romantic but there are pitfalls for the unwary.

In many ways, buying a classic car is like buying a family pet. What may be love at first sight can quickly become a burden and, in the case of some collector cars, a costly burden at that.

Car collecting is all about passion. So before you make a hasty decision and you let your heart rule your head, it's important to sit back, do some research and study the form guide.

There are so many ways to look at owning the car of your dreams. And what may have seemed a great idea when you were young but couldn't afford it may well be the wrong choice today.

In 30 years the automotive landscape has changed dramatically. In a modern driving environment, with a lot more traffic and where car dynamics and performance have moved on, you will more than likely be disappointed in the way your dream car drives.

We forget the advances new technology has brought over time in terms of a car's dynamics and developments in performance, handling and braking. Put simply, driving a 30-year-old car as an everyday driver can become a downright chore in today's traffic.

On the other hand, Australia, with its wide open spaces, is one of the few countries where you can drive a classic car in the way it was intended.
And if you can afford to buy a classic as a weekend fun car then it could reward you with many hours of pleasure. Here, your budget is all-important to ensuring the degree of happiness it will return to you. Aim too high and you could be buying a drain on your finances.

If you think you can buy a classic car as an investment, think again. Unless you're looking at the high end of the market, where low production volumes, rarity, desirability and demand play a big part in price, making money from collector cars is not a proposition.

Talk to owners and they'll tell you in most cases today the high cost of restoration far outweighs any financial gain at the time of sale. A general rule of thumb is you can double early restoration estimates as many unforeseen elements will add to the final bill. It is best to buy a car that has already had substantial work done on it. Narrow the field down and choose a car that is near the best in its class.

Prices in recent years have reflected a desire by enthusiasts to own well-preserved, low-mileage original cars rather than "100 point" restorations.
The charm of an original, well-kept collectable is often far more compelling than an over-restored car that has lost much of its age and authenticity.
Also important is to buy a car for which you can readily obtain parts. You may find a classic at the right price that is a rarity but keeping it on the road could well become a nightmare, with a lack of spares.

But while all these factors can influence the way you approach the purchase of a classic car, the pleasure gained from owning one can in most cases far outweigh the financial hurt.

Most car clubs also have access to concessional registration, which drops the on-road costs to a far more manageable amount in keeping with their reduced time on the road. And today, specialist insurance companies such as Shannons cater well for the market with excellent packages for the car that gets occasional use.

Good cars of any make or model always change hands between collectors, so joining an old car club is a good way to research a model, meet enthusiasts with a similar interest and find out what cars are for sale at the right price.

Dealing with a reputable specialist in classic cars is also a better way to negotiate a classic than making a spur-of-the-moment decision at an auction, where the interests of the auction house and the seller are obviously more important than the interests of the buyer.

The world economic downturn in the past 18 months has led to a general drop in collector-car values, less so at the top end of the collector-car market where rare "blue-chip" classics have held their value or continue to climb.

However, less than $100,000, values have softened with a general drop in demand. And, at the cheap and cheerful end of the market, there are some really good buys.

The English sports cars of the 1960s and '70s still offer excellent value as collectable classics.

This great era of open-top motoring brought some very useable cars such as the MGA, MGB, Triumph TR series and the Austin-Healey. For an investment of about $20,000 you can buy an MGB in good condition.
Closer to $30,000 buys one in excellent order and probably the post-1968 Mark 11 variant.

Expect to pay $30,000 to $35,000 for an MGA, especially the 1600 Mark 11, while an early Austin-Healey 100 BN1 in good order, especially Australian-delivered, will fetch $40,000. Late-series, six-cylinder models, especially Mark 3s with power steering and wind-up windows, are bringing between $60,000 and $100,000.

Triumph TR sports cars are great for collectors - the 3A is perhaps the pick with a lot of performance and character; also the TR4 from 1961 and the 4A, 5 and 6 that followed. Here, the TR5 is the pick, the first of the fuel-injected cars - pay $30,000 for a good one and between $26,000 and $27,000 for an average car.

You'll pay far less, perhaps $13,000 to $17,000, for a good Austin-Healey Sprite, apart from perhaps an early "Bug Eye" model in excellent condition. If you're after improved engine performance and disc brakes, the later Mark 3 Sprite variants are the better choice.

In terms of bang for your buck, the Mini Cooper S from the 1960s still provides an exhilarating drive but finding a good one will be hard. Getting one that has not been in an accident is all-important. Expect to pay $25,000 to $35,000 depending upon condition. It's an affordable classic car to own and run.

Alfa Romeos are a great classic. The 105 series 1750 and 2000 GTV coupes from 1968 onwards have great style and performance; the 2000, which arrived in 1972, is the better car to own. On average, the cars cost $15,000 to $35,000 - expect to pay $40,000 for a good one. Like all cars of this period, rust can be a problem, so a well-restored car is best.

The "pagoda roof" Mercedes-Benz 230SL, 250SL and 280SL models running from 1963 to 1972 are great classics and are growing in value. Models with both that roof and soft-top in automatic with power steering are the best buy - the 280SL is perhaps the choice here. Pay $60,000 to $85,000 for a good one with logbooks and few owners.

The Volkswagen Karmann Ghia from 1958 is perhaps more about style than performance but is highly popular as a collector car. The later series-3 cars with 1.5-litre, twin-carburettor engines are the better drive, holding steady values at about $15,000 to $20,000.

But they tend to play second fiddle to the Porsche Type 356, which has a loyal band of followers. It's a great car with a ready supply of available parts. Good, rust-free cars bring $50,000 to $75,000.

A Porsche 911 from 1964 to 1974 is a popular classic, especially when Australian-delivered and with logbooks and a known history. Watch for imported conversions but expect to pay $75,000 to $85,000 for a good 911S and up to $165,000 for a 911T.

Ford Mustangs from 1964 to 1973 are an evergreen but because of the number made they vary widely in quality and condition. With the high value of our dollar, a large number have been imported in recent years - so watch for cheap restorations, rust and poor conversions. Pay $30,000 to $55,000 depending on model, condition and equipment.

Something a little different is the Volvo P1800, made famous by Simon Templar in the 1960s TV series The Saint, built between 1961 and 1973. The early series were better quality. They are affordable and stylish - pay from $18,000 to $25,000.

Aston Martins of any era are the flavour of the year - just so British, with the DBS six-cylinder and V8s from 1970 still reasonably affordable but nevertheless hard to find. Pay $60,000 to $70,000 for a six and up to $150,000 for a top-condition V8. Mechanical condition is important as they can be costly to repair.

Jaguar roadsters and coupes from the 1950s to the 1970s are expensive but offer enormous potential. An early XK120 roadster with good provenance brings just more than $100,000, an XK140 roadster $140,000, while a tidy XK150 can command $150,000. Average cars are good buying for up to $75,000.

The later E-Type is again in demand and prices for well-restored and genuine Australian-delivered cars bring big money. Pay up to $165,000 for a 3.8-litre series 1 roadster and up to $120,000 for a later V12 manual.

A little homework will save you money and provide a classic to give many hours of driving enjoyment.

TIPS FOR BUYING A CLASSIC

* Don't let your heart rule your head.
* Research, research and research some more. Get to know as much as possible about the model you're interested in.
* Keep to your budget.
* Don't buy a classic car as an investment.
* Look for something that you can get parts for relatively easily.
* Track down the relevant car club and speak to owners about your potential buy. Car club members have plenty of helpful advice including where to get your collectable serviced once you have bought it and can even help you source your potential dream car, should it be a little rarer than most.
* Check engine and chassis numbers to make sure if the car is an original model and not a replica.
* If buying through a dealer, make sure they are reputable.
* Often it's better to buy a fully restored (and documented) car rather than do it yourself because there are many hidden costs and it is too easy to blow your budget.

A LOVE AFFAIR WITH WHEELS

Northbridge architect Peter March is a passionate collector with more than a passing love affair with the motor car. Since 1964 he has owned 146.

"To me the golden era of motoring was the '60s and '70s," March says, declaring he cannot see himself owning a new car. "The complexity and purchase price and depreciation is all too much to cope with. Once the buzz has died, new cars are just plain boring. Even mighty Benzs and BMWs.

"I've had love affairs with the magnificent Jensen Interceptor, Jaguars of various types and I've been thrilled by Alfa Romeos and some sporting Fiats. There was a one-off Porsche and a Dino Ferrari."

March owns three classics that collectively owe him less than $60,000 - or as he puts it "less than the price of a current high-spec Holden Commodore or Ford Falcon".

His fleet includes a first series 1989 Mazda MX5 convertible, a 1978 Mercedes-Benz 450SLC coupe (pictured) and a 1990 Mercedes-Benz 300E 24V sedan. "I admired the MX5 from the day it was released - a perfect sports car in every way, no silly electronics and a lot of fun to drive locally or out on the open road."

He fell in love with the package of superb lines, simplicity by today's standards and build quality of the 450SLC. "[It's] a delightful car to own and not too expensive to maintain. A little unwieldy in today's cut and thrust on the road ... but its pure driving pleasure even at 29 years old."

As for the Mercedes 300E, "just because it has four doors doesn't mean it's not collectable. In 1990, you would have paid $145,000 new, today you can pick one up for $10,000 and it's a lot of quality car for that."

Next, he wants a 1980 Rolls-Royce Shadow 11 or Bentley T and at about $30,000 there's very little depreciation left. "I'll convert it to LPG. I read about alternative fuels and hybrid cars but bugger all about LPG but I am a believer in it."

As a furniture and interior designer, March has always loved the Rolls's interiors "with real craftsmanship and quality not found in any other motor car. I love music, jazz, soul, blues and funk so I will have the best sound system fitted to it to give me the ultimate driving pleasure."

He says the worst car he has owned was a series 1 Triumph 2000 sedan - bought sight unseen with a hot cam and dreadful fuel-injection problems.
March's advice for potential collectors is to keep an open mind. "Don't be a one-eyed enthusiast and stick to one brand or model - look at the wider picture and beware of so-called marque specialists."

Top 10 rules to protect tech gadgets in the summer

2008-07-01T05:54:00.000-07:00

BY LIANA LEHUA
Producer, GirlsGoneGeek.TV

The old adage "it's not if, but when" applies wholeheartedly to every gadget you own. When I drop my iPhone in the water, will I be able to make another phone call? When I drop my camera on the ground, will I be able to take another photo?

You can protect your gear, if you're smart, plan ahead and spend just a little bit of money.

1. BUY A PROPER CASE: No. I don't mean throw your camera into the abyss of your purse or backpack. Having your gear in a case will help protect it when you yank everything else out of your bag while looking for your house keys, and seeing your digital camera make for the concrete and shatter in hundreds of pieces.

Cases for computers, iPods, portable video games and all your other gear are a must. Don't scrimp here. This is the most important step in protecting your gadgets.

Several companies make cases for electronics. Some of my favorites are OtterBox, Bodyguardz, ThinkTank Photo, Kata and Dry Pak.

2. CARRY A MICROFIBER CLOTH: Microfiber cloths are great for cleaning any piece of gear you have. Lift dust and dirt from your gadget screens and use the same cloth to wipe down your favorite sunglasses. Some microfiber clothes can absorb more than seven times their weight in water. So, if you do drop your gear in the water, the microfiber cloth can help you dry it out (or off).

3. CHECK WITH YOUR CREDIT CARD COMPANY:They may offer insurance on items you purchased using their card. If you have car insurance or home owners insurance, your agent may be able to provide further coverage for your personal technology.

4. BE ORGANIZED AND DELIBERATE: Only bring what you will use, and keep like items packed together in your day bag. If you have to fish past your camera whenever you want to get into your wallet, you may end up dropping something you really need out of your bag.

5. SET A SECURITY PASSWORD FOR ACCESSING YOUR CELL PHONE'S FEATURES: Onboard most mobile phones is the ability to require a password to be typed in each time the phone is used. It may seem like a hassle, but when your phone is lost and you want to protect your information, you'll be glad you did it.

6. BUY A LOCK FOR YOUR GEAR THAT CAN HELP DETER THIEVES: Pac Safe and Doberman Security Locks provide slash-proof and motion-sensitive products to keep burglars at bay. Don't leave your gear in your car in plain sight. Put it in the trunk or carry it with you whenever you can. Also note that in the summer, items left inside cars can be damaged by heat.

7. PUT FLOATIES ON YOUR BAG: If you accidentally drop your things in water, it will help if they don't immediately sink to the bottom. (www.westmarine.com) Also, don't forget simple Ziploc plastic bags. They're cheap, readily available and keep things safe from basic moisture and dust.

8. USE A DRY OR WATERPROOF PACK OR DRY BAG TO CARRY ALL OF YOUR THINGS: Check your local outdoor store or boating shop for sizes and to compare features. (Waterproof bag: www.aquapac.net. Dry bag: www.seallinegear.com .)

9. SHARE YOUR MUSIC AND PHOTOGRAPHY WITH YOUR GROUP: This helps reduce the amount of gear you carry and also in the case of the photos, helps guarantee that your images are instantly in more than one place.

10. DON'T TAKE YOUR CELL PHONE OR CAMERA TO THE BEACH OR NEAR THE WATER: Enjoy your summer without worrying about reading your e-mail or being on the phone for a few hours.

'Thieves' find truck a bountiful harvest

2008-06-26T04:57:00.000-07:00

By Amanda Dolasinski

THE COLUMBUS DISPATCH

Six special agents from the National Insurance Crime Bureau demonstrated what a skilled team of thieves can do yesterday by disassembling a 1988 Chevrolet pickup truck in 6 1/2 minutes. Every tool they used was bought at hardware stores.

Columbus and Dublin police collaborated with the bureau, a nonprofit group supported by insurance companies, to prove how easily thieves can break into a vehicle, harvest its parts and dispose of the body.

The Columbus Police Auto Theft Unit makes about 300 arrests for felony car theft each year, detective Ben Crawford said.

Nationally, more than 1 million vehicles are stolen every year, although the number has declined steadily in the past 3 years. Auto theft in Columbus decreased from 8,397 vehicles in 2004 to 6,228 in 2007, the bureau said. Statewide, vehicle thefts dropped from 40,651 in 2004 to 34,207 in 2007.

Older vehicles such as the 1988 pickup that the agents stripped yesterday in a Dublin parking lot are stolen most often.

"Ironically, it's not the luxury vehicles that are most commonly stolen," said Vickie Neal, the insurance bureau's spokeswoman.

Most luxury vehicles come equipped with alarm systems that older vehicles don't have. Also, parts on older vehicles are hard to find, so thieves can make more money selling those parts.

Forty percent of stolen vehicles are not recovered, according to the bureau. Those vehicles are probably driven into lakes or burned, and their parts are sold on the black market.

A vehicle's parts are worth about twice as much as the intact vehicle, Neal said. The truck the special agents disassembled would sell for about $2,100, but stripped and sold in parts, it would be worth $4,100.

There is some hope for vehicle owners. Tom Zimmer, a special agent with the bureau, said programs and equipment, such as OnStar and steering-wheel locks, prevent thieves from taking off with vehicles.

"The new technology that we have is helping quite a bit," he said.

Once a vehicle is stolen, Crawford said, the owner should file a police report, contact the insurance company and allow the police to investigate.

adolasinski@dispatch.com

Lucre solves many traffic problems

2008-06-22T05:54:00.000-07:00

Garages in Ho Chi Minh City can be places where many kinds of problems are solved.

The supervisor of QH Garage in Binh Thanh District said he could resolve most issues arising from traffic accidents thanks to his close “relations” with the city police.

For example, if a car’s inspection certificate had expired, the date of the accident report could be altered so the car owner could collect insurance money, he said.

He said after a phone call to the police, his garage could start repairing cars even if the accidents were still under investigation.

Last month, two cars from a HCMC transport business were involved in traffic accidents in Dong Nai Province.

As the business owner wanted accident reports to be made in HCMC for his convenience, he went to the garage and asked for some back market services.

After paying a fee of VND1.5 million (US$90), the business owner received reports saying both accidents took place in Binh Thanh District.

Le Van My, the police officer who signed the two reports, said he was given VND400,000 ($24) for each signature.

He also said he often signed accident reports brought by his friends without checking.

But My is not the only police officer in Binh Thanh District who bypasses the correct procedures for handling traffic accidents.

On April 11, a man, who wants to be referred to as T. to avoid future problems with the police, was stopped at a red light on Dien Bien Phu Street in Binh Thanh District when a truck smashed into the rear of his car.

The district traffic police came to the scene to make an accident report and had both vehicles towed to QH Garage.

Six days later, T. was asked to visit the police station to negotiate compensation.

He asked the truck owner to pay him about VND100 million ($6,000) for car repair costs.

However Pham Huu Thanh, the officer who handled the accident, denied his request.

Because the negotiation failed, the case was supposed to be transferred to court.

Thanh, however, kept asking T. to lower his claim.

On May 2, Thanh advised T. to accept compensation of VND75 million ($4,500), saying the truck which caused the accident had been given back to its owner five days earlier.

Feeling he had no other option, T. agreed to the price and received the VND75 million directly from Thanh.

But in the accident report, Thanh asked T. to state he was given VND50 million ($3,000) by the truck owner.

The report was also dated five days earlier.

On May 30, Thanh said he was rewarded another VND3 million ($187) by T. as well as VND1-2 million by the truck owner.

The police officer admitted he’d interfered in the negotiation but he refused to explain why there was a difference between the compensation in the police report and the money T. was actually paid by the truck owner.

Thanh said he had handed the accident report to the truck owner so insurance coverage for the accident could be claimed.

According to regulations, if the truck owner wants the accident to be covered by insurance, the compensation money in the police report cannot exceed VND50 million ($3,000).

Reported by Hoang Khuong

Marcia Cross Involved In Accident

2008-06-13T04:51:00.000-07:00

Access Hollywood is reporting that Desperate Housewives star Marcia Cross was involved in a car accident in Los Angeles yesterday around 2 PM. Cross was driving her Lexus RX near Wilshire and Berry in West LA when her vehicle collided with a sedan.

Both cars sustained severe damage, with the other driver taking the worst of the exchange - the whole front end of their car got crushed. Marcia's SUV fared far better - though as you can see in the above photo from the scene of the accident, it certainly took a pretty severe blow!

Fortunately, neither party was hurt; the officer on the scene ended up letting both Marcia and the other driver go after they exchanged insurance information. And neither of Marcia's twin daughters were riding with her - thank goodness!

Only 18% of Baku population enjoy insurance services

2008-06-03T05:33:00.000-07:00

Baku, Fineko/abc.az. International Research Group Business Insight (BI) held poll among Baku population that involved 352 respondents.

BI informed Fineko/abc.az that it was found out about 82% of the population do not use permanent insurance services.

“Only one of five respondents cares about health and property insurance. At the same time the population cares more about property than health and therefore the ratio of car and health insurance makes 59% to 40%. Thus, 59% of respondents enjoy car insurance, 40% - health, 16% - property (lands, houses etc) and only 2% - tourist insurance,” BI informed.

Only 63 of 352 respondents use insurance services.