Top Gear car insurance advice crashed

During Sunday's show the team of Clarkson, May and Hammond looked at buying a car for young drivers and the costs of insurance.

In one case the insurance policy for a young driver was 15 times more expensive than the value of the car.

The show found the cheapest way for young drivers to get insured was on their parents' policy as a named driver for occasional use.

However, Hayley Parsons, chief executive of Gocompare.com, has criticised the show for leading parents into fronting – the practice of insuring a child's car in their own name, then adding their child, the real main driver, to the policy in an attempt to keep costs down.

James May stated on the show: "It soon dawned on us that the only realistic way of getting covered when you are 17 is by going on your parents' insurance. So we got back on the phones pretending to be dad."

Ms Parsons said: "While few people would take Clarkson's suggestion that a sex change could help 17-year-old boys halve their premiums seriously, fronting is a common fraud and we would urge parents to avoid the practice as, if found out, the consequences could be severe."

After the feature on finding a car for a young driver, Richard Hammond said: "Can I just point out before we do move on; if you do decide to put yourself on your parent's insurance and you have a crash, and the insurance company find out that it wasn't really your car, they won't pay out.

"Then they can prosecute you and you might have to go to jail."

Gocompare warned the effects of being caught fronting can last longer.

"Where this fraud is exposed, insurers have the right to cancel the policy or charge the correct premium as a lump sum," Ms Parsons said.

"Drivers who have had a policy cancelled will have to declare this on any future applications and will find it harder and more costly to buy insurance because the majority of insurers would refuse them cover."

She added in the long run it is better for young drivers to hold insurance in their own name to build-up a no claims discount.

Tips on cutting car costs for young drivers

• Generally, the lower the engine capacity, the lower the premium - ideally an engine size of less than 1200cc is best.
  Also, avoid models with letters after it, for example ‘i', ‘sxi', ‘gti' or ‘xl'.
• Avoid vehicles with any modifications from the standard manufacture.
• Consider taking the Pass Plus training course which is designed to give new, young drivers additional practical driving experience. Once completed, the course normally entitles drivers to reduced premiums.
• Shop around for your insurance - don't settle for the first quote you are given.
• The cost of taxing a vehicle can also vary, depending on the CO2 emissions that it produces. The lower the emissions, the cheaper the cost of vehicle tax.

Dangers of No Car Insurance

In these tough times, many of you may have taken double, even triple looks at the monthly budget to see where some extra savings can be trimmed out.

According to AAA, more and more of you are taking the savings out of your car insurance- something just about everyone will tell you is a bad idea.

AAA Insurance is finding that many Virginians are cutting back on auto insurance deductibles as a way to save money, but are actually setting themselves up to spend much more in the long run.

As the summer months roll in and more and more people are out on the roads, there's a warning out that many of these drivers are turning up uninsured as a way to save money, which could set those folks up for a major disaster in the event of even a minor accident.

Paul Scott said he had no idea his insurance had lapsed, meaning his little fender bender could end up costing big time. "I might be paying their deductible and now the Virginia's $500 uninsured motor vehicle fine, then I have an accident on my record which will make my premiums go up," Scott said.

And that's just for a minor accident with no injuries. Larry Fallen, with Fallen and Associates, has been selling insurance for 30 years. He says he hasn't had too many people looking to cut back on their insurance and says that's a good thing, especially when you're dealing with liability.

"If you were to get sued in a court of law, you could lose your home, your life savings," Fallen said.

Consequences Scott can't afford, even though no one was hurt and the damage minimal. "This could cost me $1,000 easy in the first year," Scott said.

AAA is putting out some ideas on how to save, without putting yourself in financial jeopardy. First, ask your carrier about discounts, which are often offered with multiple policies. Second, increase the deductible. The higher the deductible, the more you save, just make sure you can afford it in the event of trouble. Third- adjust your coverage as your car ages. And finally, shop around, every year. That will keep your carrier on their toes and keep you in touch with rates that can and will vary.

Car Insurance - Top Insurance Companies

In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.

A 1994 study by Jeremy Jackson and Roger Blackman[1] showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.

 Australia

In South Australia, Third Party Personal insurance from the Motor Accident Commission is included in the licence registration fee for people over 16. A similar scheme applies in Western Australia.

In Victoria, Third Party Personal insurance from the Transport Accident Commission is similarly included, through a levy, in the vehicle registration fee.

In New South Wales, Compulsory Third Party Insurance (commonly known as CTP Insurance) is a mandatory requirement and each individual car must be insured or the vehicle will not be considered legal. Therefore, a motorist cannot drive the vehicle until it is insured. A 'Green Slip,'[citation needed] another name CTP Insurance is commonly known by due to the colour of the pages the form is printed on, must be obtained through one of the seven main insurers in New South Wales.

 Canada

Several Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) provide a public auto insurance system while in the rest of the country insurance is provided privately. Basic auto insurance is mandatory throughout Canada with each province's government determining which benefits are included as minimum required auto insurance coverage and which benefits are options available for those seeking additional coverage. Accident benefits coverage is mandatory everywhere except for Newfoundland and Labrador. All provinces in Canada have some form of no-fault insurance available to accident victims. The difference from province to province is the extent to which tort or no-fault is emphasized.[2] Typically, coverage against loss of or damage to the driver's own vehicle is optional - one notable exception to this is in Saskatchewan, where SGI provides collision coverage (less than a $700 deductible, such as a collision damage waiver) as part of its basic insurance policy. In Saskatchewan, residents have the option to have their auto insurance through a tort system but less than 0.5% of the population have taken this option.[2]

 Ireland

The Road Traffic Act, 1933 requires all drivers of mechanically propelled vehicles in public places to have at least third-party insurance, or to have obtained exemption - generally by depositing a (large) sum of money with the High Court as a guarantee against claims. In 1933 this figure was set at £15,000. The Road Traffic Act, 1961 [1] (which is currently in force) repealed the 1933 act but replaced these sections with functionally identical sections.

From 1968, those making deposits require the consent of the Minister for Transport to do so, with the sum specified by the Minister.

Those not exempted from obtaining insurance must obtain a certificate of insurance from their insurance provider, and display a portion of this (an insurance disc) on their vehicles windscreen (if fitted). The certificate in full must be presented to a police station within ten days if requested by an officer. Proof of having insurance or an exemption must also be provided to pay for your motor tax.

Those injured or suffering property damage/loss due to uninsured drivers can claim against the Motor Insurance Bureau of Ireland's uninsured drivers fund, as can those injured (but not those suffering damage or loss) from hit and run offences.

 South Africa

South Africa allocates a percentage of the money from gasoline into the Road Accidents Fund, which goes towards compensating third parties in accidents.[3]

 United Kingdom

In 1930, the UK government introduced a law that required every person who used a vehicle on the road to have at least third party personal injury insurance. Today UK law is defined by The Road Traffic Act 1988, which was last modified in 1991. The act requires that motorists either be insured, have a security, or have made a specified deposit (£500,000 as of 1991) with the Accountant General of the Supreme Court, against their liability for injuries to others (including passengers) and for damage to other persons' property resulting from use of a vehicle on a public road or in other public places.

The minimum level of insurance cover commonly available and which satisfies the requirement of the act is calledthird party only insurance. The level of cover provided by Third party only insurance is basic but does exceed the requirements of the act.

Take advantage of ways to save on auto insurance

here are proven ways to save money on auto insurance, the Insurance Information Institute said in an e-mail. Dropping necessary coverage should not be one of them. 

Shop around: Get at least three price quotes. Call companies directly or access their Web sites. The Oklahoma Insurance Department has an online guide, "Choosing your automobile insurance policy" at tulsaworld.com/ChoosingAuto. This includes a "rate table" for 19 major insurance companies serving Tulsa — from Allstate to USAA Casualty — in five categories: "16-year-old driver, no accidents or moving violations in past three years" to "70-year-old driver, no accidents or tickets in past three years." 

Higher deductible: Your deductible represents the amount of money you pay before your insurance policy kicks in when you have a claim. By requesting higher deductibles, you can lower your premium. Raising your deductible from $250 to $500 reduces the cost of collision and comprehensive coverage up to 30 percent. Raising it to $1,000 saves 40 percent. 

Check insurance before buying a car: Premiums are partly based on vehicle sticker price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft: air bags, anti-lock 

brakes, daytime running lights and anti-theft devices. Favorite theft targets cost more to insure. Information to help you select the car to buy is available from the Insurance Institute for Highway Safety at tulsaworld.com/InsuranceRisks. 

Reduce old car coverage: Drop collision and comprehensive coverage on older cars. It might not be cost-effective to insure cars worth less than 10 times the amount you would pay for coverage. It makes no sense to pay comprehensive or collision on a car worth less than $1,000, as claim payments would not substantially exceed your premiums minus your deductible. Banks and credit unions can tell you the worth of a car by its age, or you can look it up online on the Kelley Blue Book attulsaworld.com/BlueBook. 

Cover home and auto with same insurer: Most insurers give discounts to customers buying two or more types of insurance from them. Reductions also apply to customers insuring more than one vehicle with the company. Insurers also reduce premiums for longtime customers with good claim histories. 

High FICO score: A good credit score lowers premium costs and vehicle financing fees. Using credit ratings makes insurance rates more accurate, fair and objective. Drivers with long, stable credit records have fewer accidents than drivers who don't. 

Discounts: Insurers offer discounts to accident-free policy holders with no moving violations, for driving fewer miles than the national average, for taking defensive driving courses and to young people with good grades.

Car insurance

If you run a car you have to insure it - that's the law. The type of insurance you get varies according to the extent of protection it provides and how much it costs you.

The costs

The price of insurance can add a lot to the cost of motoring so it's worth knowing the factors that affect the premium you are quoted. Shop around and compare quotes from different insurers. They base their premiums on their claims experiences, which naturally differs.

One company may see your area as higher risk than others. One may charge more because of your occupation. Shopping around on the internet makes it even easier because you can quickly see the effect of, for example, accepting a larger excess.

The starting point is the type of car you want to insure. There are many different insurance categories, with price, performance, and the cost of replacement parts the main factors that dictate the one your car falls into. Driving a smaller car is the best way to cut the cost of insurance.

Your age, sex and address all affect the price you are quoted. Young male drivers generally are charged the most, while women in their 50s pay the least. And you will usually pay more if you live in a city rather than in a rural area. Parking your car on the street overnight, rather than in a garage, will also mean higher premiums.

It is possible to make your insurance cheaper by increasing the 'excess' amount on the policy. This is the amoung of money that you will have to pay towards repairs before the insurer pays out. The higher the excess, the cheaper the premium.

The best time to look for car insurance is when you are due to renew your current cover. Cancelling a contract when it still has time to run is likely to incur a penalty charge. However, it can still be worth switching insurer if the savings are greater than the penalty. See the section on getting the best deal below.

You may be given the option of a payment plan to pay your car insurance premiums. These are basically a loan from the insurer that you then pay back in monthly instalments. The insurer won't shout about it, but these plans can have punishing interest rates. They may be offered on a 0% interest basis, or you could investigate the possiblity of using a 0% credit card with regular repayments to cover the cost. Otherwise, it is best to pay for insurance up front.

High risk categories

Your age, sex and address all affect the price you are quoted. Young male drivers generally are charged the most, while women in their 50s pay the least. And you will usually pay more if you live in a city rather than in a rural area. Parking your car on the street overnight, rather than in a garage, will also mean higher premiums.

Some insurers might class you as higher risk if you are a sports professional, entertainer, barman, chef or builder, among other occupations. But you may be able to avoid having your premium loaded by shopping around. Some insurers specialise in covering people traditionally regarded as higher risk, or non-standard. Even if you can't avoid having your premium loaded, the extra you are charged is now typically in the region of 10%-15%, down from 30% or 40%.

If you suffer from a health condition that could affect your ability to drive, including epilepsy, vision impairment, certain heart conditions or sleeping disorders, or if you are taking any medication that could do the same, you must inform the DVLA. If you don't, you could be charged with a criminal offence.

Get the best deal

If you want to compare several insurers to find the best deal you can use an online comparison website. We have one here at This is Money.

Unfortunately, searching just one site will not guarantee that you are seeing all the policies available to you. There are several comparison sites out there and each of them competes to compare the widest range of insurers, but no one site has them all.

Additionally, some insurers will not be displayed on any comparison sites.

As a loose guide, we would recommend that you search the following comparison sites to ensure you a comparing most of the car insurance market:

Moneysupermarket (Moneysupermarket powers the This is Money car insurance finder.) 

GoCompare 

Conparethemarket 

Confused 

Uswitch

Each comparison site should only take a few miutes to generate a quote for you, so it is worth checking them all.

Finally, as well as the comparison sites, get quotes directly from Norwich Union and Direct Line - two insurers that are not found on comparison sites but who are known to provide competitive quotes.

Insurers will often offer discounts on their prices or special deals that only run for a short time. It may be that an insurer is offering to beat your renewal quote, or is offering to insurer your for 12 months for the price of 10. Keep an eye out for any deals.

How the no claims discount works

You typically get a 30% discount after one year of claim-free driving, rising to 65% after four or five years. But companies vary. Some go up to a 70% maximum while others specialising in younger drivers will give higher discounts at an earlier stage.

Many insurers now offer the opportunity to pay a bit more to protect your no claims bonus. The rules vary but you may be able to make two claims in three years, for example, before your bonus is affected. Protecting your bonus will not stop your insurer from hiking up the premium at renewal following a claim. But at least you won't lose your no claims bonus on top.

Making a claim does not automatically mean you lose your discount. It depends whether the claim is a 'fault' or 'not fault' claim.

This is not just a question of whether or not you were to blame for the accident, but depends on whether your insurer can recover all its costs from someone else.

For example, if you skid on black ice and hit a wall, your claim would be classed as 'Fault', even though you were not to blame, simply because your insurer can't recoup the cost of fixing your car from anyone else.

Where another driver is involved, unless it can be proved beyond doubt that the other driver was to blame, the two insurers will often settle a claim on a 50:50 or 80:20 basis. This means both drivers will lose some of their no claims bonus. With most insurance companies, you will lose two years of no claims bonus if you have a fault claim.

Be warned that it really is up to the insurer to decide whether to uphold your no claims bonus after a claim. It is unlikely that you will any contractual rights to reverse your insurers decision if you have made a claim and the bonus is removed. Indidivual insurers may be willing to listen so it can be worth a polite letter.

Making a claim

If your car is stolen, report it to the police first and then your insurer. You will have to wait a while because many cars are stolen by joyriders and later recovered.

If it is never found or is a write-off, then you may face another problem. Your car may have been in good condition with a low mileage, and the amount the insurer gives you may not allow you to replace it with an equivalent machine.

In that situation, get hold of a car buyer's guide - Glass's Guide is the most frequently used. If its tables support the insurance company, you'll find it hard to get a better offer, even if the car was in good condition.

If you have been in an accident and the other driver was uninsured, personal injury claims and some damage claims will be met by the Motor Insurers' Bureau. You can claim at www.mib.org.uk, or by calling 01908 830001.

This is financed by a levy on all insurance companies and was set up to compensate victims who would otherwise lose out through no fault of their own.

It will also pay out if you are hit by a driver who has bought insurance from one of the fly-by-night unauthorised companies that offer cheap insurance. If you find yourself in this position, tell the police.

Churchill car insurance offers free breakdown cover

Churchill car insurance is helping consumers to keep their costs down by offering free breakdown cover with each policy. 

All new Churchill car insurancecustomers who buy a policy before July 31 2009 will get free breakdown cover thrown in.

Drivers who are protected by Churchill's car insurance policy will not be left stranded if they should break down, as not only will they get roadside assistance, but rescue cover is also included. 

As the recession rages on, squeezing household finances, many are looking for ways of cutting back on their outgoings, and research has shown that insurance is sometimes on the first costs to be cut.

But, Churchill hopes that offering free car breakdown cover will encourage people to retain their insurance policies, because they might turn out to be more valuable than ever in financially difficult times when money is tight. 

Breakdown services and recovery home or to the nearest garage can be costly, but with Churchill car insurance it will be free, so cash-strapped drivers will not have to worry about how to pay for the tow truck. 

Commenting on the new offer, Tony Chilcott, head of Churchill car insurance, says: "In a recession, people should look for value and service. As a Churchill customer, any repairs undertaken by our repair centres will be guaranteed for five years and if you breakdown, a recovery operator will be with you in just under 30 minutes."

Car insurance from Churchill also offers named drivers the opportunity to earn their own NoClaims Discount, which, Mr Chilcott says, could be invaluable to households which are having to cut down to one car. 

Common Car Insurance Mistakes

When was the last time you checked out your auto insurance policy?

If you can't remember, it may be a good time to review your policy, because you may notice a mistake.

Insurance experts say there are some common mistakes that could cost you in the long run.

Without uninsured motorist coverage, officials say you will be required to pay for repairs out of pocket it you're hit by an uninsured driver or a hit-and-run driver. Keep in mind, uninsured driver coverage could raise your premiums by as much as 10 percent, but it may be worth the cost.

Also, if you're shopping for a new car, check with your insurance company before signing off on the deal. Things like safety features, reparability and even the likelihood of your dream car being stolen may affect your rates.

Another mistake is having an older car that you could be paying too much collision coverage. Also, officials say to make sure you check your vehicle's blue book value to see what it's worth.

Car insurance bill passes Senate

Thousands of car owners could get relief from a recent spike in their insurance bills under a bill approved by the Senate on Monday night.

The legislation, passed 48-0, would eliminate a requirement that auto insurance policies provide the same level of coverage for uninsured and underinsured motorist protection that they do for liability coverage.

Many car insurance bills rose on Jan. 1 because of a statewide rate increase, but thousands of those premiums also jumped because of a twist in a new state law. The law requires that all policies include coverage for medical expenses and other costs from accidents in which the car owner is hit by another driver who has no insurance or insufficient insurance.

Roughly 12 percent of drivers are uninsured, according to the Department of Insurance. Car owners cannot renew their auto registration each year without proof of insurance, but some let the insurance lapse in between registration renewals.

"Unfortunately the [new law] had an unintended consequence," Sen. Dan Clodfelter, a Charlotte Democrat and chief sponsor of the bill, said during the vote Monday night.

The catch was that the new law required that the amount of coverage, the maximum payout, would be the same whether it's to the policyholder for injuries from being hit by an uninsured driver or to another driver when the accident is the policyholder's fault.

Some owners didn't need that much uninsured/underinsured motorist coverage, because their health insurance or other means would take care of medical bills.

"They had to either pay a lot more than they wanted to pay for uninsured motorist coverage," Clodfelter told senators, "or, if they wanted to keep their premium down, they had to lower the coverage on their liability."

Policyholders could choose the level of uninsured/underinsured coverage that they want under the bill approved Monday night.

The number of car owners who saw a rate increase because of the new requirement for equal levels of coverage is unclear. One indicator is that about 70,000 customers of Nationwide, the largest auto insurer in the state, got bigger insurance bills because of the law. The average increase was about $22 for the year, and the largest jump was about $120 for the year, according to a company spokeswoman.

Those customers, though, were a small percentage of overall customers. About 99 percent of Nationwide's customers already carried uninsured/underinsured coverage, and 91 percent maintained equal levels of coverage.

The bill that passed Monday, if next approved by the House, would take effect Oct. 1.

10 Tips to Help You Save on Auto Insurance

. Drive less and earn a discount

If you drive less than 7,500 miles per year, you may qualify for a low-mileage discount on your auto insurance. And, some companies offer a commuter discount if you use public transportation during the week.

2. Don't use your car for business purposes

Some insurance companies will add a "business use surcharge" or increase your auto insurance premium as your annual mileage increases. But, if you must use your car for business, be sure to tell your company, so that your daily business travel is covered.

3. Increase your deductible

You might save as much as 10 to 15% if you increase your deductible from $250 to $500. But, remember that you'll be required to pay the larger deductible upfront if you have an accident.

4. Keep an eye on your credit report

Your credit history is one of many "risk factors" that most auto insurance companies evaluate when setting rates, in states where permissible by law. Paying your bills on time and maintaining a solid credit history will help keep your home and auto insurance rates lower.

5. Drive safely

You may be eligible for a price break on your car insurance policy if you have no accidents or traffic violations for a specified period, usually three years. Even a single speeding ticket can increase your auto insurance rates 5 to 10% depending on your state.

6. Buy a low-profile car

Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance vehicles are higher risk because they are common targets for thieves, and statistically, the people who own them tend to drive more recklessly.

7. Move

If you live in a rural community with little crime and traffic congestion, your auto insurance premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident.

8. Keep your car in a garage

Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. And, you may get a slight premium reduction.

9. Install safety or anti-theft devices

Auto Insurance companies offer discounts for anti-lock brakes, automatic seat belts, airbags and more. Car alarms and tracking systems may also get you an insurance discount.

10. Shop around

OK, it might go without saying, but your current auto insurance company might not be the best one for you in the future! We recommend researching your options 30 to 45 days before your current policy is set to renew, especially if you have not shopped recently. Fact: Insurance.com customers reported annual auto insurance savings of $538 a year in April 2009. Your savings may vary.

Insurance.com is the top national online auto insurance agency in the country, offering comparison car insurance quotes you can buy online or by phone. www.insurance.com.

Reduced home insurance or car insurance cover could be devastating

BIBA (British Insurance Brokers’ Association) has warned that customers reducing theirhome insurance or car insurance cover to save money during the recession could be devastating.

According to BIBA research, over 20% of insurance brokers have found that cutomers taking out car insurance or home insurance have reduced their level of insurance cover during the recession.

BIBA Chief Executive, Eric Gailbraith, said ‘The economic downturn generates an increased focus on cost’ and added we ‘are warning consumers about the dangers of reducing cover without guidance from a broker.’

Customers are reducing their home or car insurance cover primarily by

• reducing the sums insured
• increasing the excesses
• reducing non-essential cover and add-ons

Customers need to be very careful about reducing their home insurance or car insurance cover.

Clearly it is important that you have insurance that meets your needs, otherwise should you need to make a claim you face the possibility of it not being met, partially or in full, by your insurer.

Insurance brokers can provide you with assistance or there are many websites that you can use to get an insurance quote.

As well as companies such as Direct Line or Norwich Union (soon to be AVIVA), there are insurance comparison sites, such as GoCompare and MoneySupermarket.

Fee in Florida budget may boost car insurance costs

A fee increase tucked into the state budget has Florida insurers in a tizzy. And it could boost car insurance costs for consumers.

The state budget -- which legislators will vote on today -- would increase certain Department of Highway Safety and Motor Vehicles fees by more than three-fold. The fees are for drivers' history and crash records, which insurers pull for every driver in a prospective customer's household.

"This is how we find out if someone has a revoked license, DUI, several speeding tickets, etc.," Allstate spokesman Nick Halliwell said in an e-mail. The higher fees have "the potential to further increase our costs of doing business."

Those costs ultimately get passed to customers across the country, Halliwell said.

The records are also used to estimate insurance policy costs so the move may deter some insurers from providing quotes by phone, which restricts customers shopping around for policies, said William Stander, assistant vice president of the Property Casualty Insurers Association of America.

Economic Survival Guide: Drive Down Car Insurance

You depend on it when you're on the road. But are you paying too much for car insurance?
Menands resident Diane Miller thought so. She's took a class at the mall... to save.
"I would say I've done it three times and it's every three years. You get 10% off," said Miller.
"How many of you aware that in Schenectady County it's a $500 fine to text?" asked Defensive Driving Instructor George Plante, to a class of students. Plante was teaching at Right Way Driving Center, located at Colonie Center.
It's a six hour defensive driving class, that saves you ten-percent on insurance premiums, three years in a row. Plus, students who complete the class can get up to four points off their licenses, from traffic tickets.
"Like if you pay $800-a-year, you're saving eighty dollars a year. Times three. That's $240 dollars. It's worth it," said Miller
So if you can save 10-percent by taking a class, what else can you do to drive down insurance costs?
News Channel 13 reporter Beth Wurtmann took her policy to Liberty Mutual, where she's been a customer for years.
"Alright, let's take a look here," said Albany Branch Manager Dorothy Mobley, as she reviews the policy.
Mobley finds that Wurtmann was already getting about $500 in discounts, for things like having passive restraints, anti-lock breaks, and being considered a safe driver. Another discount was for belonging to a college or union affiliated with the insurer. And she's getting a multi-policy discount, for having home owners insurance with the company too.
But then, Mobley found more.
"Consumers can be missing out on available discounts they're not aware of," she said.
Mobley added that if Wurtmann took that defensive driving class, paid a bill electronically, and raised her deductibles slightly higher, she could save $390-dollars per year MORE.
But what about those ads for cheaper car insurance? Like Geico, that advertises that it can save consumers 15-percent on their policies after fifteen minutes for a quote.
Wurtmann did get a quote from Geico, and although the company would only guarantee a rate for six months, it priced out at hundreds of dollars less than her current policy.
But Mobley said, consumers have to consider a number of factors besides price, like face-to-face communication with their agents, and the level of customer service.
"Do you want the bottom line basic low price or are you looking for a combination of the best price, product and the customer service? What is it you want?" she said.

Saving A Buck On Auto Insurance

With money tight, we wanted to know if local drivers are cutting back on state required auto insurance coverage.
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Area insurance agents say they haven't seen a drastic increase or decrease in business. But they do say more motorists are revisiting their auto insurance plans, looking for ways to cut back.
State Farm Agent Larry Ice II says he's not sure how much the economic downturn has effected business because State Farm doesn't track why clients may drop a policy.
But he has noticed more financially strapped customers looking for a discount.
“There’s a lot more focus on saving money,” said Ice.
He says foot traffic is increasing at his small business, as consumers become more financially conscience.
“And I think that overall that goes from health insurance, auto, home every type of insurance,” said Ice.
Ice says he’s seeing a new and surprising trend; more clients are purchasing health insurance policies.
“People are a lot more concerned about what might happen if my husband losses his job, or if I loss my job, I might not be able to continue that health insurance coverage,” said Ice.
But the financial concern isn’t limited to auto and health insurance.
Indiana’s NewsCenter spoke with several area auto repair shops that say customers are waiting longer to get an oil change.
But what's most concerning, auto experts say more motorists are waiting until the last minute to repair their breaks.
Auto experts warn that the metal on metal grind could become dangerous not only for the driver but also other motorists.
Ice says his company recognizes the financial strains on families and is taking steps to speak with clients about ways they can reduce their rates without lowering their coverage.

Progressive Auto Insurance Shares Car Insurance Tips

Use these car insurance tips and hints from Progressive to save money and select the right coverage. Plus, Progressive says it will include all available auto insurance discounts when you get a quote.
Savvy consumers know it pays to do the legwork and shop around for car insurance. Considering auto insurance prices for a six-month policy can vary greatly between companies, why not take the time to compare rates for several companies? To help you in your quest for car insurance, we've compiled a few tips that can help you save money and make the right choices for your situation.
Before you get started, review your auto insurance coverages and keep your auto policy on hand to make fair comparisons to your current coverage. Then start shopping. Visit insurance Web sites and insurance agents/brokers and get quotes. Following are a few more shopping tips.

GAINSCO Auto Insurance Drives into Georgia

Beginning in May 2009, Georgia drivers will be able to purchase high-quality, minimum-limits auto insurance from a new insurance carrier in the state. MGA Insurance Company, Inc., which markets its policies and services using the trade name GAINSCO Auto Insurance, insures drivers across several Sunbelt and southern states. The company specializes in minimum-limits personal auto insurance, which allows drivers to purchase the legally required insurance coverage at minimum cost.
"In difficult economic times, people look for cost savings everywhere," says GAINSCO President and CEO Glenn Anderson. "We offer not only competitive pricing in Georgia, but our customers have the assurance that their policies are backed by a strong, committed company that intends to build a long-term presence in the state."
GAINSCO's Georgia policies will be sold through a network of independent agents across the Peach State. The company already has a wide geographic footprint in the state, with more than 300 agents signed up in over 110 Georgia communities. Anderson expects the number of appointed agents to continue to grow.
GAINSCO's 6- and 12-month auto policies include these benefits: no credit scoring; competitive rates with low down payments; coverage for drivers with previous accidents, tickets or violations; coverage for young drivers or those with no prior insurance; SR-22 and SR-22a documents; non-U.S. driver licenses accepted. Credit card payments are accepted and the company offers bilingual claims and customer service.
About GAINSCO Auto Insurance
GAINSCO, INC. (NYSE Amex: GAN), through its insurance brand, GAINSCO Auto Insurance, specializes in minimum-limits personal auto coverage, which is sold through a network of thousands of independent agents in the states of Arizona, Florida, Georgia, Nevada, New Mexico, South Carolina and Texas, and through an independent managing general agency in California. Established in 1978, GAINSCO's corporate headquarters are located in Dallas, Texas, with key regional field offices in Miami and Phoenix. Its insurance company subsidiary is MGA Insurance Company, Inc. For more information, visit www.gainsco.com.
Some of the statements made in this release may be forward-looking statements. Forward-looking statements reflect current views and relate to future events or future financial performance and may involve known or unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. Please refer to the Company's recent SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 2008, for more information regarding factors that could affect the Company's results.
Forward-looking statements are relevant only as of the dates made, and the Company undertakes no obligation to update any forward-looking statement to reflect new information, events or circumstances after the date on which the statement is made. All written or oral forward-looking statements that are made by or are attributable to the Company are expressly qualified in their entirety by this cautionary notice. Actual results may differ significantly from the results discussed in these forward-looking statements

Why You're Paying An Extra $100 For Car Insurance

Just how easy is it to rip-off New York state's No Fault Insurance program?
Well listen to this Western New York man, who stole hundreds of thousands of dollars from the system through a ring that staged car accidents and then treated accident "victims" at a fake medical mill.
"If it's structured correctly, you send in a bill, they send you a check."
The scam operated for a number of years in the area before it was uncovered by federal and state authorities.
The ring leader, who we'll call Mike, agreed to talk to 2 On Your Side as long as we did not identify him.'
He spent 16 months in a federal prison and had to make restitution of $334,000.
It's estimated that insurance fraud of this type costs every single driver in New York an extra $100 a year on their policies.
Here's how the scam worked:
College students would be recruited at bars to be the victims of a car accident. Here's what they would be told:
"All you have to do is get in this car, we have a guy that's going to bump us in the back and you jump out and the police will be called and you say your neck hurts, and they fill out a police report and we'll get you in therapy," said FBI agent Bill Fallon.
Fallon was a member of the Western New York Health Care Fraud Task Force that helped break up the ring.
The "victims" would never claim anything specific like broken bones, because that would require x-rays.
Scott Brown: "So the easiest thing was to say it was a soft tissue injury and that way nobody could really tell whether it's there or not?"
"Mike": "It hurts and that's it."
Brown: "My back, my neck, something like that?"
Mike: "Correct."
Brown: "Let's say I'm one of the victims, what would I get paid by you?"
Mike: "A one time fee of $200 to $2,000."
Brown: "And for that I would have to show up for therapy or treatments a few times a week?"
Mike: "A few times a week until their (insurance) carrier cut them off."
The "victims" were also promised huge insurance settlements down the road for their supposed pain and suffering.
Their treatments took place at a medical mill on Main Street in Williamsville.
Who worked there?
Mike: "Professionals, medical professionals. From therapists to doctors to chiropractors."
Brown: "And they all had to be in on it right?"
Mike: "They were all after the same thing, money."
The "victims" of the staged accidents would go to the medical mill for therapy up to three times a week, the amount allowable under the No Fault law.
Brown: "Under state law, what are some of the treatments people would be eligible for?"
"Some of them are very exotic treatments- aroma therapy, acupuncture, massages, whirlpool sessions, physical therapy, it goes on and on and on," said Ed Silvestrini of the State Insurance Fraud Department.
Brown: "And all these services are covered until the No Fault law?"
Silvestrini: "That's correct."
Brown: "Would the therapists actually deliver therapy, or not even?"
Mike: "If he wasn't tired he would deliver the therapy, if he was tired, he would just sign the paperwork."
Brown: "Did the insurance companies not really check into whether people were actually getting treated and even had injuries?"
Mike: "No, all they'd ask for is documentation to be mailed, with a bill, and then a check comes back."
Brown: "So it was that simple?"
Mike: "The majority of the time."
And so, at the medical mill, you had fake patients being treated for fake injuries, sometimes by fake medical professionals.
The billing would go on for as long as six months, which was permissible under the No Fault law.
The mill was billing so much business that it eventually caught the eye of the Western New York Health Care Fraud Task Force, which is made up of law enforcement and the insurance industry.
Brown: "Why did you agree to do this interview?"
Mike: "Hopefully people will hear this, the legislature will hear this, and make changes."
Brown: "If you had the governor, or members of the New York state legislature here, what would you tell them about New York's No Fault system?"
Mike: "It needs to be cracked down, it's too easy to manipulate the system. You need to put stronger, more stringent policies on billing, therapy treatments and reimbursements."
Adds Ed Silvestrini of the State Insurance Department, "It's just too easy to commit fraud, No Fault fraud. Not only with regards to the medical, but to the lost wages, household care."
Brown: "What should be done about it?"
Silvestrini: "More enforcement of course. More documentation is needed to prove these expenses.
"We have people come in say 'I was a barber making 50 grand a year and now I can't cut hair,' but there's no income tax W-2s provided. I think it's just too easy to avail yourselves of the benefits when you're not entitled to them."

Car insurance invalidated for 4.7million who miss MOT test date

Each year 4.7million motorists put their car insurance policy in jeopardy by not renewing their MOT on time, research from uSwitch has discovered. As many as 65 per cent of motorists on UK roads are knowingly driving around with invalid car insurance because their MOT certificate is out of date, the statistics from uSwitch have revealed.Not only do they admit to driving without a valid MOT – and therefore without valid insurance – but it takes a third of them up to a month to get around to booking an MOT test after their renewal deadline expires, and more than 10 per cent take even longer. Almost 80 per cent of drivers who miss their MOT renewal date admit it is simply down to their forgetfulness, while 11 per cent say it is due to them changing their car. uSwitch says that with half of motorists putting off buying a new car at the moment as their finances are squeezed, it is more important than ever to ensure their existing cars are up to scratch.Driving without a valid MOT can carry a fine of £1,000, and because it invalidates the car insurance policy, the driver is liable for any costs of repairs to their own car as well as damage incurred by third parties. Being convicted of driving without valid car insurance can lead to a 43 per cent increase in car insurance premiums, and, more than 20 per cent of three year old cars fail their MOT test, so drivers are jeopardising their safety and that of others by driving a car which is potentially un-roadworthy. "Life moves at a pretty fast pace and so it is understandable that many consumers may find themselves losing track of deadlines and commitments," said Mark Monteiro, insurance expert at uSwitch.com. "However, failure to remember your MOT renewal date is not only an offence, but the potential safety and financial consequences are a hefty price to pay for an innocent lapse of memory."

Auto insurance fraud on the rise: Is the economy to blame?

As the nation's economy quickly fell into a recession, the number of auto insurance fraud incidents in the United States has risen dramatically, costing drivers over $6 billion each year in excess auto insurance payments. And according to The Coalition Against Insurance Fraud, the number of people that believe committing auto insurance fraud is an acceptable practice is also on the rise.

Auto Insurance Fraud by the Numbers
The statistics are astounding: In Hawaii, there was a 61 percent increase in convictions for auto insurance fraud from 2007 to 2008. Car give-ups -- abandoning a car and reporting it stolen -- rose by almost 33 percent in 2008 in New York, according to the state's fraud bureau.
In Pennsylvania, law enforcement saw insurance fraud and related crimes jump 30 percent in 2008 over 2007, with car insurance fraud accounting for 46 percent of total fraudulent claims. Two-hundred eighty-eight people were arrested for false car insurance claims, including staged accidents.
"Insurance fraud normally increases during a troubled economy. The credit crunch, subprime meltdown, higher gas prices and general economic distress have led more drivers to seek a bailout through insurance money," said Dennis Jay, executive director of the Coalition Against Insurance Fraud. "They're literally being driven to desperation."
It isn't just phony auto accidents or fake car thefts either. Two men in Idaho were sentenced in January for auto insurance fraud and arson. A car owner simply paid a man to torch his car.
"Arson and insurance fraud are becoming more prevalent with the current decline in the economy," said Idaho Department of Insurance Director Bill Deal. "These crimes will not be tolerated and can result in significant jail time for the individuals involved."

Auto Insurance Fraud: An Ethical Grey Area?
Over the past few years, public outrage over auto insurance fraud has become increasingly lax. According to a study by the Coalition Against Insurance Fraud, in 1997, 91 percent of people thought it unethical to misrepresent facts on an insurance application to get a lower premium. Today, only 82 percent believe the same.
The Coalition's study also shows that 4 out of 5 Americans think insurance fraud in general is unethical, but 1 out of 5 (approximately 45 million people) believe defrauding insurance companies is acceptable under certain circumstances.
Public opinion of the morality of other fraudulent acts such as tax and credit card fraud has changed as well, the Coalition points out. People are especially willing to turn a blind eye to fraud when the person committing it is a friend or relative.
Some of those who contemplate auto insurance fraud try to rationalize their decisions by looking at the circumstances of their plan. They will consider if a type of fraud is commonly committed by others, or if it hurts anyone. If they believe the only ones affected by their actions is a faceless insurance company, they are more likely to go through with the insurance fraud when they would normally never commit other crimes.

Insurance Fraud Hurts Us All
Insurance fraud doesn't just hurt insurance companies -- it hurts everyone buying insurance through the increased costs of premiums.
"Claim abuse continues to be a significant problem," said Elizabeth Sprinkel, Senior Vice President of The Insurance Research Council (IRC). The IRC estimates that claim fraud added between $4.8 billion and $6.8 billion in excess payments to auto injury insurance claims in 2007. "The excess payments attributable to fraud and buildup help drive up the costs of insurance for everyone," added Sprinkel.
The Coalition Against Insurance Fraud estimates that insurance fraud costs at least $80 billion each year, or almost $950 per family. The Hawaii State Department of Commerce and Consumer Affairs, which prosecutes and investigates car insurance fraud, estimates that car insurance fraud costs each Hawaiian household $200 to $300 more in premiums every year.
During these trying economic times, have Americans reached a point of desperation? Does the line between right and wrong blur when the stock market plunges? One thing is clear: As the country struggles economically, less people have a problem with crimes where the 'victim' is a faceless corporation. Even though consumers in general end up paying the price for their crimes, fraudsters don't seem to be bothered

Be sure to sort out rental-car insurance in advance

The price of the car was supposed to include all mandatory insurance. I called my credit card and double-checked that we would also be covered. But when we arrived at the Hertz counter in Zagreb, an agent refused to give us the car unless I paid an extra $207 for insurance that was listed as "optional" on the rental agreement.
I said I did not want this insurance and was told that if I did not purchase it, we would not get the car. I would have appealed to a manager, but she was the manager. We decided to pay the fee so we could go on our honeymoon and discuss the issue with Hertz upon returning to the States.
I contacted Hertz, which claimed I was clearly told the insurance was optional (not true) and had signed the rental agreement and therefore they had no obligation to return my money. I think Hertz owes me for the insurance.

Jessica Santangelo, Richmond, Ky
A: Hertz shouldn't have forced you to buy "optional" insurance. In fact, the moment you ran out of appeals, you should have taken your business to another car rental company. Several other agencies have locations in the Croatian capital, including Alamo, Avis, Budget, Dollar, and National.
But did you exhaust all of your appeals? You could have phoned Hertz and AutoEurope before caving in and buying the extra insurance. It's worth the cost of the international call (although AutoEurope has a local number in Zagreb). That might have cleared things up quickly, allowing you to get on with the most important vacation of your life.
Another question: Where was your travel agent? When you take a honeymoon, you must use a travel agent. No two ways about it. Why? Because a trusted travel adviser will help you fix any problems with your vacation. If you'd phoned your travel adviser from the airport, you might have been able to sort this out.
Waiting until you returned made a successful resolution difficult. I'm not surprised that Hertz turned down your request for a refund. But I was curious about why it rejected your appeal. So I asked.
Hertz agreed that insurance in Croatia is optional. But customers refusing insurance are required to sign a document that says they're liable for the full value of the car. When you sign that document, the preauthorization amount to your credit card is "substantially higher," according to Hertz.
The company's records say you signed that document and were advised of the higher pre-authorization. In order to lower that amount, you were offered insurance, which you agreed to buy.
That contradicts your account. You say you were never asked to sign any such document, nor did Hertz ever try to preauthorize your card.

It's possible that you're both right. Maybe the Hertz supervisor in Zagreb thought she had told you about the preauthorization and offered you the insurance, which you accepted. I mean, it's a fair bet that English wasn't her first language. Or maybe your Croatian was a little rusty. Either way, this looks like a simple misunderstanding because of language.
Next time you rent a car overseas, make sure you ask for the terms and conditions in your language. If you have a question, ask a representative — and if you're having a hard time understanding the paperwork, call your agent or the car rental company's corporate office.

Cheap Car Insurance

Auto/Car insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.Auto insurance provides property, liability and medical coverage:
Property coverage pays for damage to or theft of your car.
Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

Cheap car insurance is no bargain if you don't get the customer service you need. But spending too much on car insurance is no bargain, either. The best cheap car insurance is a policy that's easy to shop for and easy to file a claim with should you need to. Don't spend your time shopping for cheap car insurance with the phone book. You'll only spend your time on hold. Shop for cheap car insurance the modern way-online. Now you can enjoy a cheap car insurance policy with a reputable, financially stable company and have the peace of mind of knowing that whatever comes your way down the road, you're covered. Get a quick two-minute automobile insurance rate quote online to see how our rates would fit into your budget. Once you see how affordable a policy is, you can pay your premium online and even print out your proof of insurance card. For those of you who may have been turned down in the past, have no fear. Chances are, we have a cheap car insurance policy that will suit your needs and your budget regardless of your less than perfect credit or your past history of traffic violations. We specialize in high risk drivers. And with an instant auto rate quote, there's no need to face long lines and embarrassing questions when it comes to submitting your application. Don't take chances on the road. Protect yourself and other drivers with a cheap car insurance policy that will pay for itself time and time again by offering you peace of mind.