10/9/08

Auto Insurance

Answer: This is insurance which protects the insured against losses involving the use of automobiles. Various coverages may be bought depending on the desires of the insured. Such coverages include the liability coverages of bodily injury, property damage, and medical payments, and the physical damage coverages of collision and comprehensive.

Read On......

9/29/08

How To Buy Auto Insurance

You can buy auto insurance but with more care and cautions. You need to analyze various plus and minus points. Most of the times, before you attempt to buy auto insurance, go for a discussion with persons who already have indulged in such activities.

You have to note that though you are paying some amount regularly in every month as premium to the concerned insurance firm for your car, you feel happy if you encounter any accident unexpectedly. Got it? So, you need not regret in such situations.

However, you need to exercise more attention during the association with such insurance policies.

You have to take it in your mind that in many states, you need to buy auto insurance as a mandatory one.

Yeah. This is not an optional one in many places. Hence, you have to approach the reputed firms that have the history of early settlement of claims. If not, you may have to regret in the later periods.,/p>

It appears better to go online if you decide the auto insurance. Such activity may help to save your time and energy and paper works. You can be able to get the required number of quotes.

Often, you may be getting various quotes that are highly competitive in nature. Hence, you may have to compare such quotes. Finally arrive at the rate that can be easily afforded at your end.

Once it is in your budgetary provision, it may be a nice action to go for it. However, you need to go through the terms and conditions before you take the insurance policy.

If anybody attempts to buy auto insurance, the automobile referral body shops may be suggested for the consultation purposes. This is because of the fact that these body shops are often involved in the encountering of claim settlements.

Minimum liability coverage is set usually by each state in order to help the victims against the accident-based injuries or damage to their vehicle.

Many times, the car owners focus comprehensive and collision coverage during the taking of insurance policies. This helps to supplement your policy with significant and specific protection.

You have to ask the insurer on the good driving record, good grades of driver, high deductibles, and concession due to the holding of multiple policies with the concerned company etc.

When you buy auto insurance, you may be getting sizable discounts if you have many policies with the same firm. Hence, now you have known something when you attempt to buy auto insurance.

12 Things You Don’t Know About Car Insurance

What you don’t know about your car insurance policy could be draining your wallet right now. Insure.com, Inc. has revealed 12 factors that may be costing you money.

1. You’ll pay for your friend’s bad driving

If your friend borrows your car and crashes it, you’ll have to file a claim with your insurance company. You’ll have to pay any deductible that applies and your rates could go up as a result of your claim, especially if you have made other recent claims.

2. Your personal property in your car isn’t covered by your auto insurance

Stolen or damaged items like compact discs aren’t covered by your car insurance.

3. You may be entitled to payment for sales tax and registration fees for a new car

Most states require insurers to pay sales taxes on total loss settlements. Some states require the insurer to pay it at the time of loss while other states require it to be paid only if you purchase a replacement vehicle within a certain time period. Make your request for a sales tax reimbursement no matter where you live.

4. You may be entitled to a diminished value claim in some states

Diminished value is based on the idea that any car that has been in an accident, regardless of how well the repairs are done, is worth less than the exact same car that hasn’t been in an accident. However, most states allow car insurers to use policy language that officially disallows diminished value claims.

There’s one way you may be entitled to a diminished value claim: If someone else hits you and you make a damage claim on that person’s insurance. That’s called a third-party claim and it’s possible to get diminished value damages as a third party.

5. You may be able to “stack” your coverage

Stacking uninsured/underinsured motorist coverage means you can collect payment more than once within the same auto policy or across two auto policies. There are two scenarios for stacking: First, if you have multiple cars, you can collect the limit of your UM/UIM policy to cover full payment for damages. Second, if you have more than one policy with UM/UIM coverage, you can make a claim under each policy until all your damages are recovered. Check the language of your policy.

6. Making a claim could increase your car insurance rates, but by how much?

When an insurance company decides to raise your premiums because you make a claim, it doesn’t follow any hard and fast rules; many factors are involved. For example, if you make a claim and have a birthday before renewal time, your birthday might bump you into a higher risk category along with the claim.

Some insurance companies have “accident forgiveness” guidelines. When you buy or renew your policy, ask how to qualify for accident forgiveness.

7. If you don’t drive much, “usage-based” car insurance could save you money

“Usage-based” car insurance allows you to buy coverage based on how much you actually drive. If you don’t drive much, this can save you up to 60 percent on your insurance. Progressive is the first insurance company to offer “pay-as-you-drive” policies through its MyRate program. Your mileage will be measured by a wireless device installed in a car port.

If your insurance company doesn’t offer usage-based coverage, inquire about “low-mileage discounts.”

8. Your credit history may affect your car insurance premium

Car insurers believe that your credit history is an indicator of whether you are going to make a claim, and price your insurance policy accordingly where states allow it.

9. You must officially cancel your insurance policy when you switch insurers

You can cancel your coverage at any time by notifying the company in writing of your intended date of termination. Most consumers assume that if they decide to terminate the policy at the end of the coverage period, they can simply ignore the bill. Insurance companies don’t see it that way. They will send you another bill for the next premium payment, and when you don’t pay it, the company can cancel you for nonpayment, which goes on your credit record.

10. You can wait to add your teenager to your policy until he or she is licensed

In most cases, insurance companies don’t require you to add your teenager to your policy until the teen has his or her driver’s license. The exception may be if you are in a high-risk insurance pool; you may then have to add your child when they receive their permit.

11. Paying in installments will usually increase your overall bill

“Fractional premium” fees are usually charged when you divide your annual premium payment into installments rather than pay for a year of coverage all at once. It can be as little as a few dollars per payment, but the more you break it down, the more it adds up. When you apply for the policy, ask what the fees are for paying in installments. If you can, pay your annual premium all at once.

12. Your car model affects your premium, but by how much?

Auto insurers have a premium-rating system for every car model, usually based on “Vehicle Series Ratings” (VSRs) received from the Insurance Services Office (ISO). This rating indicates how comparatively expensive your vehicle should be to insure. Factors include susceptibility to theft and typical claims losses for the vehicle.

If you are shopping for a new car, contact your insurance company and ask about the premium difference among the cars you are considering.

9/26/08

Cheap Auto Insurance Company

There are many ways to obtain cheap auto insurance for your car. Maybe you need to automatically switch insurance companies for auto cheap insurance for your car. Or, you might want to make some changes to the security of your car for cheap auto insurance for your car. What we want to do, you'll most likely spend some time looking for the car that insurance companies will give you the cheapest car insurance quote for your car.

However, the situation may change when you buy a new car. May or may not yet have a policy of automobile insurance. May May or unwilling to maintain this policy of automobile insurance. In any case, part of the procurement process for purchasing a new car is to make sure you have an insurance policy car before driving off the lot. Driving car is a high risk activity, so you need a high risk insurance for both of your car and yourself, off course.

Instead of searching frantically for a car insurance company that will give you the cheap car insurance for your new car, take advantage of one of the new features of some vehicles have incorporated many of its customers the experience of the unity of purchases. These cars have created lots of computers with Internet access to allow their customers to find car insurance for low-cost policies of his new car!

Not only is it very convenient for customers, which is also a wise financial move for car dealers. Several times, a car salesman has a sales contract and the loss of his right hand because the customer needs to understand their situation before motor insurance. With this new addition to the experience of buying cars, customers can buy cars at low cost to the insurance policies for new cars right inside the car dealers!

If you can use this auto insurance purchasing functions, be sure to compare the number of car insurance low-cost policies, car accidents and rates, and other factors you may consider.

9/24/08

Auto Insurance Primer Advice

What is auto insurance? Auto insurance (or car insurance, motor insurance) is insurance consumers can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred. By buying auto insurance, depending on the type of coverage purchased, the consumer may be protected against:

* The cost of repairing the vehicle following an accident

* The cost of purchasing a new vehicle if it is stolen or damaged beyond economic repair

* Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party.

Liability insurance covers only the last point, while comprehensive insurance covers all three. Even comprehensive insurance, however, doesn’t fully cover the risk associated with buying a new car. Due to the sharp decline in value immediately following purchase, there is generally a period in which the remaining car payments exceed the compensation the insurer will pay for a “totaled” (destroyed, or written-off) vehicle. So-called GAP insurance was established in the early 1980’s to provide protection to consumers based upon buying and market trends. The escalating price of cars, extended term auto loans, and the increasing popularity of leasing gave birth to GAP protection. GAP waivers provide protection for consumers when a “gap” exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company. In some countries including New Zealand and Australia market structures mean that people are more likely to buy a nearly new car than a new car so this is less of a problem.

In the United States, liability insurance covers claims against the policy holder and generally, any other operator of the insured’s vehicle, provided they do not live at the same address as the policy holder and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is necessary for example, when a family member comes of driving age they must be added on to the policy. Liability insurance generally does not protect the policy holder if they operate any vehicles other than their own. When you drive a vehicle owned by another party, you are covered under that party’s policy. Non-owners policies may be offered that would cover an insured on any vehicle they drive. This coverage is available only to those who do not own their own vehicle.

Generally, liability coverage does extend when you rent a car. However, in most cases only liability applies. Any additional coverage, such as comprehensive policies, i.e. “full coverage” may not apply. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. This coverage may not apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured’s vehicle, assuming that a rental car may be worth more than the insured’s vehicle. Some states, such as Minnesota, may require that it extend to rental cars. Most rental car companies offer insurance to cover damage to the rental vehicle. In some regions, the costs associated with not having access to the vehicle (”Loss of Use”) is also covered.

9/2/08

Auto Insurance

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates, and service vary from company to company? Why can you pay less with one company than another can for the same coverages? find the solution now.....

8/31/08

California Auto Insurance Information

The General® is pleased to provide auto insurance in California. We offer low cost auto insurance online even if you have a less than perfect driving record, have never been insured before, have let your policy lapse, or have had your coverage suspended or revoked.

We've provided some information below that we hope will be helpful in answering some of the more common questions we've received from our customers.


Mandatory Minimum Level of Coverage
California's Compulsory Financial Responsibility Law requires every driver and owner of a motor vehicle to be financially responsible for their actions. The statutory minimum limits of liability insurance are:

Bodily Injury
- $15,000 for the death or injury of any one person, any one accident
- $30,000 for all persons in any one accident
Property Damage
- $5,000 for any one accident


Consumer Rights/Protections Related to California Auto Insurance
California Proposition 103: In November of 1988, Proposition 103 (Prop.103) was enacted into law by the voters of California. It provides many consumer protections related to purchasing and maintaining auto insurance.

View the California Proposition 103 Fact Sheet for more information.


Frequently Asked Questions Regarding California Auto Insurance
What Happens If I Don't Carry Auto Insurance?
In California it's mandatory to have Proof of Insurance at all times. Not providing Proof of Insurance when it's requested may result in a fine or suspended license. The General can provide instant Proof of Insurance for California drivers.
What Are the Penalties for Driving Without Liability Insurance?
Judges can impound the vehicles of frequent, flagrant violators. If you provide false evidence of auto insurance coverage and your driver's license is suspended, the suspension cannot be lifted until you demonstrate genuine Proof of Insurance.
When Must You Show Proof of Insurance?
The Legislature passed a law requiring motorists to produce Proof of Insurance before the Department of Motor Vehicles renews vehicle registration. The legislation also requires motorists to display Proof of Insurance when stopped by a police officer for traffic violations.
How Do I Prove I Have Insurance?
Your insurance company will send you a Proof of Insurance card listing the covered automobiles and drivers and showing the policy number and expiration date. Your policy or a temporary binder is also acceptable evidence of insurance.
What if you're currently driving without coverage? The General® offers instant Proof of Insurance when you buy auto insurance online at our Web site.

8/30/08

Great Car, Great Value, Great Performance

Pros: Great fuel economy, great ride, great value!
Cons: None

Months ago my daughter and I went looking for a new vehicle for her. We test drove both the Saturn Vue SUV and the Aura 4 door sedan. We liked both vehicles but she really wanted the Vue so she got that Saturn.

However, I really liked the Aura and thought it was a great value. So when they offered 0% interest for 72 months, I went and bought one as a third vehicle for my wife and me. The other two vehicles we have are a Dodge pick-up and a Jeep Wrangler. We like them both, but they are not great on gas mileage. So we wanted a third vehicle that got great gas mileage. Plus the insurance on the Dodge truck is high for some unknown reason to me or the insurance agent. By buying the Aura, making the truck a "pleasure" vehicle or whatever they call it, and the Aura my primary vehicle, we might actually owe about the same for insurance. The Saturns as found out from my daughter, have VERY LOW insurance rates due to the many safety features on their vehicles.

The ride of the Aura is smooth and it handles very well. The 4 cyc engine has excellent performance. I mean if it works great in my daughter's Vue which is 1500 lbs or so heavier, you have to imagine that it performs great in the Aura and it does.

The seats are also comfortable and the ride is also very quiet. We pretty much have the basic Aura and it came with everything we could imagine we needed.

The basic stereo system sounds incredible. I love XM and sat radio. Anyone who has driven through West Virginia searching for a conventional AM and FM station without success will appreciate XM radio. On-Star is also wonderful especially if you are a dad with kids and a wife you want to have On-Star enabled in the vehicle to help give you peace of mind.

I also noticed that the Aura is rated higher by consumers on the Consumer Report website over the Honda's and the Toyota's. Yes folks, GM has finally started producing great vehicles, great quality, and at a competitive price. Take one out for a test drive. You'll like it!

8/29/08

Cheapest Cars to Insure

Nobody wants eye-popping auto insurance premiums in addition to monthly car payments. So if you're considering purchasing a small sedan, not factoring in your personal driving records, the Honda Civic is the least expensive car to insure in that niche. Conversely, a Mitsubishi Lancer Evolution 4WD is the most expensive.

If the market for large luxury SUVs has caught your eye, a Land Rover LR3 will keep your insurance pain to a minimum, while a Porsche Cayenne will maximize it.

Those and other insurance-related facts are compiled by the Highway Loss Data Institute (HLDI), a non-profit organization dedicated to reducing the deaths, injuries and property damage stemming from auto crashes. Supported by auto insurers, HLDI rates vehicles based on what insurance companies pay out in losses for various makes and models.


Least & Most Expensive Car to Insure
Least Expensive Most Expensive
Small Sports Car Pontiac Solstice - 73 Honda S2000 - 196
Midsize Luxury SUV Volvo XC90 - 62 Cadillac SRX - 129
Small SUV Jeep Wrangler LWB 2-door - 63 Mitsubishi Outlander - 120
Midsize Luxury BMW 3 Series Wagon - 58 BMW M3 - 301
Small Pickups Dodge Dakota Quad Cab - 75 Mazda B plus 4WD - 160
Small Four-door Honda Civic - 105 Mitsubishi Lancer Evolution 4WD - 437
Midsize Four-door Subaru Outback 4WD - 72 Nissan Maxima - 137
Large Luxury SUV Land Rover LR3 - 53 Porsche Cayenne - 121
Above are a few collision averages gleaned from HLDI data. The least expensive vehicle to insure in the category is first, followed by the most expensive with corresponding collision damage scores.


HLDI data looks at six insurance coverage areas, including property damage liability and personal injury protection. However, payouts pegged to collision damage are the key indicator used here.

"Collision damage is one of the big things that insurers pay for," HLDI spokesman Russ Rader said. "If a vehicle that you're looking at has very high losses under collision coverage, insurers are paying out a lot of money to repair that vehicle. Therefore, you're likely to pay more to insure it."

HLDI's stats cover 2004-06 vehicles and include accidents that occurred up to May 31, 2007. The vehicles being examined have only been sold once and have been assigned numerical collision-damage scores, with 100 representing the average collision loss for all vehicles in a given category.

The Lincoln Town Car's category-leading 96 means it fares 4 percent better than average when it comes to collision losses that insurance companies pay for very large luxury cars. The 459 score generated by the basement-dwelling Maserati Quattroporte is 359 percent worse than average.



See 2008 Porsche CayenneIt's not difficult to divine from those scores that the Lincoln will cost considerably less to insure than the Maserati.

In the large pickup truck category, the Dodge Ram 1500 Mega Cab got a 53, which is 47 percent better than the average for its large-pickup brethren. Listed at the bottom of the pack was the Nissan Titan King Cab, which received a 121.

The cheapest car to insure among midsize sports cars is the Ford Mustang GT convertible, which earned a 100. On the other hand the Dodge Viper convertible, with its 865 collision-damage score, would appear to be an insurance nightmare.

Of course insurance companies take other things into account when determining how much your auto insurance will cost, said Carolyn Gorman, of the Insurance Information Institute. "A lot of different factors, such as your driving record and where you live, will affect your auto insurance premium," Gorman said, adding that age, gender, credit history and miles driven each year also play a part.

But a major component affecting auto insurance premiums is within your control. To find out if a new vehicle you've been eyeballing has high collision-damage losses, visit HLDI's Web site at www.iihs.org. Click on 'Research & stats,' then click on 'Insurance losses by make and model.'

"Generally speaking, as you look at the data one of the things you'll see is big and boring sedans have lower insurance costs," Rader said. "So vehicles that don't go fast and don't have a lot of extra parts that are easily damaged in a crash are going to have lower insurance losses. If you're looking at a European luxury car, or a souped-up high performance car, you're likely going to pay more to insure it."

most popular new cars on aol autos

most popular new cars on aol autos
1. BMW 135
2. Toyota Yaris
3. Honda Civic
4. Honda Accord
5. Honda Fit
6. Volkswagen Jetta
7. Toyota Prius
8. BMW 550
9. Honda CR-V
10. Volkswagen Rabbit

8/26/08

Do I Need Uninsured Motorist Coverage on My Auto Policy If I Have Medicare Or Health Insurance?

This is a very common question that we encounter in our practice. I’ve even heard of insurance agents who expressed the opinion that people do not need uninsured motorist coverage on their auto policy if they have health insurance or Medicare. The reasoning seems to be that following an accident their medical bills would be covered. Unfortunately, this reasoning fails to take into consideration all of the other benefits available from uninsured motorist coverage to someone who’s been seriously injured in an auto accident or to the estate of someone who has been killed.

The purpose of uninsured motorist coverage is to compensate the insured for all of the elements of damage they would have been entitled to receive from the person causing the accident, but who carried no bodily injury insurance, or very low limits of coverage. In Florida, those damages would include: pain, suffering, disability, scarring, disfigurement, mental anguish, loss of the enjoyment of life, lost earnings and earning capacity, as well as unpaid medical expenses incurred in the past, and those to be incurred in the future. Of this list of damage items, the only ones which would be covered by health insurance or Medicare would be “covered” medical expenses. Beyond having their medical expenses paid, someone carrying no uninsured motorist coverage, who was struck by an uninsured driver, would receive no compensation for all of the other elements of damage described above.

No one ever believes they will be involved in a serious motor vehicle accident. But every day throughout the state of Florida, hundreds of people are seriously injured who also believed it would never happen to them. Following a serious accident, the injured person will immediately begin to consider, who will compensate them for the substantial losses they have incurred and those which will be incurred in the future. Losses such as pain, suffering, loss of enjoyment of life, as well as loss of earning capacity and earnings are very commonly encountered in relatively routine motor vehicle accidents. In the more serious accidents, all of these losses may be incurred, particularly those which involved the death of a loved one. People naturally become angry and frustrated when they have been struck by an uninsured driver, only to discover their own policy of insurance does not include uninsured motorist coverage.

There is something else to consider about carrying only Medicare or health insurance. If there is any liability coverage available to provide compensation of one’s injuries, even though it may be woefully inadequate, Medicare and virtually all health insurance policies, have reimbursement rights. Federal statutes require reimbursement of benefits provided by Medicare and employer sponsored health insurance plans when the injured person receives compensation for their injuries. Most other health plans contain reimbursement rights which are regulated under state law, including Florida. This means that when someone’s health insurance or Medicare provides benefits to them following an accident, those benefits are subject to being paid back if the injured person is successful in getting even minimal compensation from the party responsible.

Therefore, the only way someone may protect themselves is to carry the maximum amount of uninsured motorist coverage they can afford. We urge our clients to examine their declaration sheet on their auto policy, determine what coverage they actually have purchased, and call their agent to get a quote for uninsured motorist or additional uninsured motorist coverage.

8/25/08

Cell Phones and Driving

In the United States over 254 million people subscribed to such wireless communication devices as cell phones as of February 2008, compared with approximately 4.3 million in 1990, according to the Cellular Telecommunications & Internet Association.

Increased reliance on cell phones has led to a rise in the number of people who use the devices while driving. There are two dangers associated with driving and cell-phone use, including text messaging. First, drivers must take their eyes off the road while dialing. Second, people can become so absorbed in their conversations that their ability to concentrate on the act of driving is severely impaired, jeopardizing the safety of vehicle occupants and pedestrians. Since the first law was passed in New York in 2001 banning hand-held cell-phone use while driving, there has been debate as to the exact nature and degree of hazard. The latest research shows that while using a cell phone when driving may not be the most dangerous distraction, because it is so prevalent it is by far the most common cause of this type of crash and near crash.


RECENT DEVELOPMENTS

* Studies: Studies about cell-phone use while driving have focused on several different aspects of the problem. Some have looked at its prevalence as the leading cause of driver distraction. Others have looked at the different risks associated with hand-held and hands-free devices. Still others have focused on the seriousness of injuries in crashes involving cell-phone users and the demographics of drivers who use cell phones. Below is a summary of some recent research on the issue.

* In July 2007 the National Highway Traffic Safety Administration and the National Center for Statistics and Analysis released the results of their National Occupant Protection Use Survey (NOPUS), which found that in 2006 5 percent of drivers used hand-held cell phones, down from 6 percent in 2005, the first decline since the survey began tracking hand-held cell phone use in 2000. The decline in use occurred in a number of driver categories, including female drivers (down from 8 to 6 percent), drivers in the Midwest (down from 8 to 4 percent), drivers age 25 to 69 (down from 6 to 4 percent) and drivers of passenger cars (down from 6 to 4 percent) to name but a few. NOPUS is a probability-based observational survey. Data on driver cell-phone use were collected at random stop signs or stoplights only while vehicles were stopped and only during daylight hours.

* A survey of dangerous driver behavior was released in January 2007 by Nationwide Mutual Insurance Co. The survey of 1,200 drivers found that 73 percent talk on cell phones while driving. Cell phone use was highest among young drivers.

* Text messaging, or “texting” by teens, a driving distraction related to cell phone use, was the subject of an August 2006 Teens Today survey conducted by the Liberty Mutual Research Institute for Safety and Students Against Destructive Decisions (SADD). The survey showed that teens considered sending text messages via cell phones to be their biggest distraction. Of the teens surveyed, 37 percent said that text messaging was extremely or very distracting, while 20 percent said that they were distracted by their emotional states and 19 percent said that having friends in the car was distracting. The January 2007 survey by Nationwide found that 19 percent of motorists say they text message while driving.

* Motorists who use cell phones while driving are four times as likely to get into crashes serious enough to injure themselves, according to a study of drivers in Perth, Australia, conducted by the Insurance Institute for Highway Safety. The results, published in July 2005, suggest that banning hand-held phone use won’t necessarily improve safety if drivers simply switch to hand-free phones. The study found that injury crash risk didn’t vary with type of phone.

* Many studies have shown that using hand-held cell phones while driving can constitute a hazardous distraction. However, the theory that hands-free sets are safer has been challenged by the findings of several studies. A study from researchers at the University of Utah, published in the summer 2006 issue of Human Factors, the quarterly journal of the Human Factors and Ergonomics Society, concludes that talking on a cell phone while driving is as dangerous as driving drunk, even if the phone is a hands-free model. An earlier study by researchers at the university found that motorists who talked on hands-free cell phones were 18 percent slower in braking and took 17 percent longer to regain the speed they lost when they braked.

* A September 2004 study from the NHTSA found that drivers using hand-free cell phones had to redial calls 40 percent of the time, compared with 18 percent for drivers using hand-held sets, suggesting that hands-free sets may provide drivers with a false sense of ease.

* A study released in April 2006 found that almost 80 percent of crashes and 65 percent of near-crashes involved some form of driver inattention within three seconds of the event. The study, The 100-Car Naturalistic Driving Study, conducted by the Virginia Tech Transportation Institute and the National Highway Traffic Safety Administration (NHTSA), breaks new ground. (Earlier research found that driver inattention was responsible for 25 to 30 percent of crashes.) The new study found that the most common distraction is the use of cell phones, followed by drowsiness. However, cell-phone use is far less likely to be the cause of a crash or near-miss than other distractions, according to the study. For example, while reaching for a moving object such as a falling cup increased the risk of a crash or near-crash by nine times, talking or listening on a hand-held cell phone only increased the risk by 1.3 times. The study tracked the behavior of the 241 drivers of 100 vehicles for more than one year. The drivers were involved in 82 crashes, 761 near-crashes and 8,295 critical incidents.

* These findings confirm an August 2003 report from the AAA Foundation for Traffic Safety that concluded that drivers are far less distracted by their cell phones than by other common activities, such as reaching for items on the seat or glove compartment or talking to passengers. That study was based on the analysis of videotapes from cameras installed in the vehicles of 70 drivers in North Carolina and Pennsylvania.

* State and Federal Initiatives: The number of state legislatures debating measures that address the problem of cell-phone use while driving and other driver distractions continues to rise. As of March 2008 four states — Connecticut, New Jersey, New York and Utah — plus the District of Columbia had laws on the books banning the use of hand-held cell phones while driving. Similar laws in California and Washington State go into effect in July 2008. Except for Utah and Washington State, the laws are all “primary enforcement,” meaning a motorist may be ticketed for using a hand-held cell phone while driving without any other traffic offense taking place.

* About 17 states have passed laws banning or restricting young drivers from using cell phones. The most recent state to enact such legislation is California. But the California law goes farther than any other state’s. It bans the use of any mobile device by drivers under age 18. This includes a cell phone, a broadband personal communication device, specialized mobile radio device, handheld device or laptop computer.

* In May 2007 Washington become the first state to ban the practice of texting with a cell phone while driving; New Jersey passed a similar law that took effect on March 1, 2008. In Washington, the fine for DWT (driving while texting) is set at $101, but since it is a secondary offense a driver must be pulled over for some more grievous infraction before the penalty can be imposed. In New Jersey the fine for DWT is $100, but the state has made the offense one of primary enforcement (see above). In Connecticut drivers can be fined $100 not only for using a cell phone, but those pulled over for speeding or other moving violations can be fined for other driving distractions such as putting on makeup or turning to discipline children in the back seat. In New York, the first state to enact such legislation, in 2001, drivers face fines of $100 for the first violation, $200 for the second and $500 thereafter.

* Businesses: Businesses are increasingly prohibiting workers from using cell phones while driving to conduct business. Exxon Mobil and Shell are examples of large companies that ban employees’ use of any type of cell phone while driving during work hours. The California Association of Employers recommends that employers develop a cell phone policy that requires employees to pull off the road before conducting business by cell phone.

* Court Decisions: In December 2007 International Paper Co. agreed to pay a $5.2 million settlement to a Georgia woman who was rear-ended by one of its employees. The employee was driving a company car and talking on a company cell phone at the time of the accident. The settlement was reached even though the employee had violated her company’s policy of requiring the use of hands-free headsets while driving. The suit is among the most recent of several cases where an employer has been held liable for an accident caused by a driver using a cell phone. (See background section on Employer and Manufacturer Liability.)

BACKGROUND

Cell phones play an integral role in our society. However, the convenience they offer must be judged against the hazards they pose. Inattentive driving accounted for 6.4 percent of crash fatalities in 2003—the latest data available—according to the U.S. Department of Transportation. Inattentive driving includes talking, eating, putting on make up and attending to children. Using cell phones and other wireless or electronic units are also considered distractions.

As many as 40 countries may restrict or prohibit the use of cell phones while driving. Countries reported to have laws related to cell phone use include Australia, Austria, Belgium, Brazil, Botswana, Chile, the Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, India, Ireland, Israel, Italy, Japan, Jordan, Kenya, Malaysia, the Netherlands, Norway, the Philippines, Poland, Portugal, Romania, Russia, Singapore, the Slovak Republic, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, Turkmenistan, the United Kingdom and Zimbabwe. Most countries prohibit the use of hand-held phones while driving. Drivers in the Czech Republic, France, the Netherlands and the United Kingdom may use cell phones but can be fined if they are involved in crashes while using the phone. Drivers in the United Kingdom and Germany also can lose insurance coverage if they are involved in a crash while talking on the phone.

Supporters of restrictions on driving while using a cell phone say that the distractions associated with cell phone use while driving are far greater than other distractions. Conversations using a cell phone demand greater continuous concentration, which diverts the driver’s eyes from the road and his mind from driving. Opponents of cell phone restrictions say drivers should be educated about the effects of all driver distractions. They also say that existing laws that regulate driving should be more strictly enforced.

Employer and Manufacturer Liability: Although only a handful of high-profile cases have gone to court, employers are still concerned that they might be held liable for accidents caused by their employees while driving and conducting work-related conversations on cell phones. Under the doctrine of vicarious responsibility, employers may be held legally accountable for the negligent acts of employees committed in the course of employment. Employers may also be found negligent if they fail to put in place a policy for the safe use of cell phones. In response, many companies have established cell phone usage policies. Some allow employees to conduct business over the phone as long as they pull over to the side of the road or into a parking lot. Others have completely banned the use of all wireless devices.

In an article published in the June 2003 edition of the North Dakota Law Review, attorney Jordan Michael proposed a theory of cell phone manufacturer liability for auto accidents if they fail to warn users of the dangers of driving and talking on the phone at the same time. The theory holds that maker liability would be similar to the liability of employers who encourage or demand cell phone use on the road. Holding manufacturers liable would cover all persons who drive and use cell phones for personal calls. Michael notes that some car rental agencies have already placed warnings on embedded cell phones in their cars.

8/23/08

10 Most and Least Expensive Cars to Insure

10 Most-Expensive Cars to Insure

The 10 vehicles that account for the highest dollar amount of losses for insurance companies (starting with the most expensive) are:


Cadillac Escalade EXT 4WD
Subaru Impreza WRX 4WD
Hyundai Tiburon
Mitsubishi Lancer
Scion tC
Acura RSX
Nissan Sentra SE-R
Suzuki Forenza
Nissan Sentra/Mitsubishi Eclipse
Chevrolet Cobalt two-door

Source: Insurance Institute for Highway Safety, based on 2004-2006 models

10 Least-Expensive Cars to Insure

The 10 vehicles that account for the lowest dollar amount of losses for insurance companies (starting with the least expensive) are:


Ford Five Hundred 4WD (now the Ford Taurus)
Buick Rendezvous 4WD
Buick Lucerne/Buick Rainier 4WD/Honda Odyssey
Ford Freestyle 4WD/Subaru Outback 4WD
Buick Rendezvous/Honda Pilot
Chrysler Town & Country LWB
Honda Pilot 4WD
Buick LaCrosse/Chevrolet Uplander/Ford Escape/Volvo V70
Dodge Grand Caravan/Ford Freestyle 4WD
Ford Explorer 4WD/GMC Sierra 1500 4WD/Toyota Highlander/Toyota Sienna

Source: Insurance Institute for Highway Safety, based on 2004-2006 models

8/22/08

Teenagers and Safe Cars

If your teenager has just gotten a driver's license, it may be hard to imagine handing over the keys to your brand new car, but that may be the smartest vehicle to choose.

The first years teenagers spend as drivers are very risky. In fact, teen drivers have the highest death rates of any age group. In 1997 alone, more than 5,700 teenagers died in motor vehicle crashes, and many more were left severely and permanently injured by crashes.

While getting a driver's license is an exciting rite-of-passage for teens, it can be enough to make a parent frantic. However, the Insurance Institute for Highway Safety (IIHS) and the Insurance Information Institute (I.I.I.) say there is something worried parents can do to protect their teens—choose a safe vehicle.

Avoid vehicles that encourage reckless driving.
Teen drivers not only lack experience, but may also lack maturity. As a result, speeding and reckless driving are common.

Sports cars and other vehicles with high performance features, such as turbocharging, are likely to encourage speeding. Choosing a vehicle with a more sedate image will reduce the chances your teen will be in a speed-related crash.


Don't let your teen drive an unstable vehicle.
Sport utility vehicles, especially the smaller ones, are inherently less stable than cars because of their higher centers of gravity. Abrupt steering maneuvers—the kind that can occur when teens are fooling around or over-correcting a driver error—can cause rollovers where a more stable car would, at worst, skid or spin out.


Pick a vehicle that offers good crash protection.
Teenagers should drive vehicles that offer state-of-the-art protection in case they do crash.


Don't let your teen drive a small vehicle.
Small vehicles offer much less protection in crashes than larger ones. However, this doesn't mean you should put your child in the largest vehicle you can find. Many mid- and full-size cars offer more than adequate crash protection. Check out the safety ratings for mid-size and larger cars.


Avoid older vehicles.
Most of today's cars are better designed for crash protection than cars of six to ten years ago. For example, a newer, mid-size car with airbags would be a better choice than an older, larger car without airbags. Before you make a final choice on the car your teenager will drive, consult the U.S. Department of Transportation ( http://www.dot.gov ) or the Insurance Institute for Highway Safety ( http://www.iihs.org ).

8/18/08

I have liability insurance. If I lend my car out to a friend, will my insurance pay in case of an accident?

I have liability insurance. If I lend my car out to a friend, will my insurance pay in case of an accident?

Best Answer
Yes. However, does he have regular access to your car? If he borrows it more than once a month, or more than ten times a year, you should add him as an operator. Also, if he cracks it up, it's great that the other guy is covered, but . . .can you afford to buy a new car? Because you won't have any coverage for YOUR car.

New insurance and ongoing treatments of old injury? Which insurance applies?

New insurance and ongoing treatments of old injury? Which insurance applies?

Best Answer
Its up to the old insurance

8/16/08

Shopping for auto insurance

Savvy shopping for insurance requires a little more effort than many people tend to give it. Too many consumers simply grab the first price they come across or accept routine rate increases without digging further for a better deal. It is important to compare not only the price but the coverage and exclusions among carriers.

You don't want to find out after you file a claim that the new policy you purchased with the excellent premium does not include a type of coverage that you had with your previous carrier.

"It really pays to shop around," Dick Luedke, spokesperson for State Farm Insurance, told MSN Autos. "Premiums for exactly the same coverage can vary substantially from carrier to carrier."

Studies performed by Progressive Insurance between 1999 and 2004 reveal that six-month auto insurance rates vary significantly between companies, from an average low of $481 to an average high of $586 across the country. This means the same driver could receive a quote of $1,256 for a six-month auto insurance policy from one company and a quote of $775 for the identical policy from another company.

Another Progressive study reveals that only 20% of survey respondents said they had shopped around for better insurance rates in the last six months.


"Call around a lot," suggested Scot McCartney, spokesperson for Independent Insurance Agents of America. "Don't always grab the first quote you get. Make several calls, ask the same questions and be sure to get quotes on exactly the same coverage from each carrier."

It pays to mix it up
Call a couple of the larger carriers (State Farm, Allstate, Nationwide, SAFECO, etc.) and then check with a couple independent agents and phone-based carriers, such as GEICO or Amica, just to make sure you've covered your bases.

If you prefer to shop on the Internet, a number of services offer online price quotes. Web sites give you quick access to a number of quotes without ever picking up the phone. However, as convenient as they are, it's still advisable to consult other more traditional sources as well.

What to look for
When buying auto insurance, it's important to consider not only the price, but also the carrier and the coverage. As with any product, the value of a low price is quickly forgotten when you find out that the service or the quality of the product is not what you expected.

The old saying, "It's too good to be true" applies for insurance premiums as well. If the premium seems too low, be sure that you are getting all the coverage you need.

Check out the agent you'll be working with, advises the California Department of Insurance. Do you know and trust them? Also look into the insurance carrier itself. Is it a well-known and established company? Does it have the financial strength to pay its claims? You can obtain background and financial information on an insurance carrier from your state's department of insurance.

When talking with insurance agents, don't hesitate to ask a lot of questions. In addition to learning what coverage is offered and how much it costs, also ask about how claims are processed. Too often, people don't learn about the process until they have to make a claim. Knowing beforehand ensures you choose a carrier whose claim process is most convenient and appealing to you.

Don't forget to ask friends, neighbors and family who they are insured with and whether or not they like the service they receive. Often, they can provide personal examples of what went wrong and what went well when they had to file a claim.

Factors influencing rates
If your current rates seem particularly high (or low), you might want to know why. Indeed, if your rates (or quotes) are high, altering your lifestyle or vehicle choice can have a big effect on the rates you pay.

While criteria may vary slightly from carrier to carrier, according to State Farm's Luedke, the major determining factors fall into four basic areas:

You. Your age, gender, marital status, driving record and record of prior claims play a major role in determining your risk level and therefore the premium you will pay. Traditionally, males under 25 years of age represent the highest risk, while married, middle-aged, non-smoking mothers represent the lowest.

Where you live. Living in an urban area typically triggers higher rates due to increased incidence of theft and accident claims -- both of which are statistically higher in and around cities.

Your vehicle. The type of vehicle you drive greatly affects the rates you pay. Vehicles that have a high frequency of claims (sports cars) or are expensive to repair (luxury cars, SUVs) are prone to higher premiums. However, larger vehicles tend to be safer in collisions, which sometimes offsets costs.

How you use your vehicle. Statistically, the more miles you drive, the greater chance you have of being involved in a crash. High annual mileage will result in higher premiums.

Another way to reduce your premium is to increase the amount you self-insure by increasing the deductible amounts on the property damage coverage for your own vehicle. These deductible amounts on your comprehensive and collision coverages may be limited if you have the vehicle leased or financed, so check your financing contract before raising your deductibles too high.

Deciphering the code
Once you've begun researching insurance coverage, it won't be long before you come across liability limits displayed in an X/Y/Z form. These are the maximum limits of coverage for bodily injury or property damage that you become legally responsible for.

For example, 100/300/50 means you're covered for a maximum of $100,000 bodily injury per person, $300,000 bodily injury per incident and $50,000 property damage per incident.

You may also see the liability limit stated as a single amount, called a combined single limit. This limit is the total amount available for a single occurrence, without per person or property damage sub-limits. The advantage of a combined single limit is that if there are only minor injuries but considerable property damage, the total liability limit, not just the sub-limit amount, is available to satisfy a property damage claim. Conversely, if one person is injured severely, the entire liability limit is available to satisfy a claim by that one person, rather than just the per-person limit.

When setting your limits, make sure to set them high enough to protect yourself against possible lawsuits. The more assets and income you have, or the more earning potential you have, the higher liability limits you should consider. If you become legally responsible for bodily injuries or property damage in excess of the liability limits of your policy, your personal assets or future earnings may be required to satisfy your obligation.

Types of coverage
Shopping for auto insurance involves more than simply calling an agent and asking for a quote. To get the most out of your insurance requires that you first fully understand what risk you want to protect against and how best to shift that risk using the various types of insurance coverage.

Here are some major types of insurance coverage you should be familiar with. This section is intended as a general description of the definitions typically used in a personal auto policy. For specific definitions and coverages, you should always refer to your current policy or the policy that you are considering.

Collision: The portion of the policy that pays for the damage to your car caused by a crash, regardless of responsibility. If another party is responsible for the damage to your car, the insurance carrier will pursue the other party on your behalf and collect payment for the repairs from the other party's insurance carrier or the party directly. The maximum amount of collision protection is usually limited by the depreciated value of your car (which is not the same as the replacement cost). Collision insurance is usually required by a lending institution if the vehicle is financed or leased.

Comprehensive: The portion of the policy that pays for damage to the vehicle caused by non-crash events such as theft, vandalism, acts of God, striking an animal, storms, etc.

Medical: This coverage pays the initial medical bills for you, members of your family and passengers in your car. If the cost of medical treatment exceeds the medical coverage limit, non-family passengers in your car can obtain compensation from your liability coverage, but you or your family members would not be covered by your own liability coverage. You or family members could look to other medical insurance for additional coverage. It also covers you and those in your household if you're a passenger in a car involved in a crash, or if you're a pedestrian struck by a car.

Liability: This coverage pays for bodily injury or property damage that you become legally responsible for as a result of driving your vehicle. Family members living with you who are listed with the insurance company as drivers on your policy and anyone driving your car with your permission will be covered by the liability coverage for injuries or property damage that you or they become legally responsible for while driving your vehicle. Your liability coverage will not pay for injuries to your own family members in the car, which will be covered by medical coverage described above.

Uninsured motorist: This covers your property damage and personal injury in the event you're hit by an uninsured motorist. It also covers hit-and-run crashes and is required by many states.

Underinsured motorist: This covers your property damage and personal injury caused by another party, when the amount of damage exceeds the other party's liability limits. This coverage will pick up after the other party's liability limit is exhausted.

Umbrella: If you also have homeowner's liability coverage, you may want to consider a personal liability umbrella. The umbrella will pick up bodily injury or property damage amounts that you become legally responsible for, above the policy limit of the underlying personal auto policy, up to the umbrella limit. The premium for this additional coverage is typically only a fraction of the cost of the personal auto policy and also provides additional liability coverage above the liability limits of the underlying homeowner's policy.

Gap insurance: This coverage provides for the difference between the amount paid under collision or comprehensive coverage to cover a total loss and the amount to pay off the lease or finance contract balance on the vehicle. Many lease or finance contracts include this coverage, but if yours does not you should consider including the coverage on your auto policy. If the payoff amount on the vehicle is more than the payout under your comprehensive or collision coverage and you don't have gap coverage, you will be responsible for the difference.

Other optional coverage: This can include emergency towing or repairs while on the road and rental car reimbursement when your car is being repaired.

No-fault insurance
A number of states have no-fault insurance provisions. In no-fault states, the insurance company covers a client's personal injury claims regardless of who was at fault in the crash. However, victims can still sue the other party under certain conditions.

No-fault programs are intended to reduce the costs of auto insurance by reducing claims and litigation.

High-risk insurers
Not everyone has a squeaky clean driving record. A history of too many tickets, crashes, or insurance claims can make it difficult to obtain coverage. In some cases, major carriers may actually refuse coverage, having determined that such drivers represent too great an insurance risk.

However, this does not mean coverage is not available. On the contrary, most states require personal liability coverage, so high-risk drivers are actually guaranteed coverage. Even if a larger carrier may refuse them coverage, select high-risk insurers must accept them.

When obtaining your insurance through a non-standard insurer, look into factors such as customer service, time to process claims and payment of claims. Just because you're a high-risk client doesn't mean you should accept poor service.

Money 101: Auto Insurance

The Top Things to Know:

1. You're a statistic.

To an insurer, you're not a person, you're a set of risks. An insurer bases its premium (or its decision to insure you at all) on your "risk factors," including some things that may seem unrelated to driving a car, including your occupation, who you are, and how you live.

2. Insurers differ.

As with anything else you buy, what seems to be the same product can have different prices, depending on the company. You can save money by comparison shopping.

3. Don't just look at price.

A low price is no bargain if an insurer takes forever to service your claim. Research the insurer's record for claims service, as well as its financial stability.

4. Go beyond the basics.

Most states require only a minimum of auto-insurance liability coverage, but you should look for more coverage than that.

5. Demand discounts.

Insurers provide discounts to reward behavior that reduces risk. However, Americans waste some $300 billion a year because they forget to ask for them!

6. Ask for the real thing.

Insurers cut costs by paying only for car parts made by companies other than the car's manufacturer. These parts can be inferior. Demand parts by the original equipment manufacturers (OEMs).

7. At claims time, your insurer isn't necessarily your friend.

Your idea of fair compensation may not match your insurer's. Your insurer's job is to restore you financially. Your job is to prove your losses so you get what you need.

8. Prepare before you have to file a claim.

Keep your policy updated, and re-read it before you file a claim so there are no surprises.

8/2/08

auto insurance

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates, and service vary from company to company? Why can you pay less with one company than another can for the same coverages? find the solution now.....

7/31/08

Sizable number of Texas drivers without insurance

AUSTIN (AP) - A large number of drivers on Texas highways and roads do not have auto insurance, according to a Texas insurance organization.

A 60-day pilot project testing the new TexasSure program, which allows law enforcement personnel via computer to verify coverage status when they stop a motorist, focused on Travis County. During the test which is expected to end soon, Texas Department of Public Safety troopers stopped and ticketed uninsured drivers.

So far, 25.5 percent of 5,012 drivers stopped in Travis County and small portions of nearby Williamson and Hays counties since June 2, did not have auto insurance.

"The numbers show that Texas has an even larger number of uninsured drivers than we had realized," said Mark Hanna, spokesman for the Insurance Council of Texas, in a story Tuesday in the online editions of the Houston Chronicle and the San Antonio Express-News.

The Council has been monitoring the state's new auto insurance verification program.

"Troopers tell us that some areas of the state may have more than half of their drivers uninsured, and that's scary news for everyone else on our roadways," Hanna said.

This spring, the minimum amount of liability insurance Texas drivers are required to have, increased for the first time in 22 years. Hanna said he didn't think the higher requirement was a factor in the lack of coverage because the effect on premiums was "minimal."

During the pilot project, drivers who said they were insured but weren't carrying proof of insurance weren't issued citations if troopers, using the new technology, validated their insurance coverage.

DPS plans to issue a report of its findings when the pilot is completed.

A portion of the vehicle registration fee is paying for a $7 million contract with HDI solutions Inc. The company, based in Alabama, developed the database of insurance customers and drivers' license records.

Pay-as-you-drive auto insurance coming

TRENTON, N.J. (AP) - Sure, you may think you're a good driver, but are you willing to bet your insurance premium on it?

In several states across the country, drivers are getting the chance to do just that.

Auto insurer Progressive Corp. has begun offering its drivers the chance to cut their auto insurance costs based on how they actually drive, not only on their age, credit score, number of tickets they've received or the accidents on their driving record.

The catch?

Motorists must allow a high-tech monitoring device - sort of like a black box for cars - to be installed that tells Progressive how many miles they've driven, how fast they accelerate and how often they hit the brakes.

Good drivers will get discounts; others could face surcharges.

Under Progressive's program, customers can earn a first-term discount of up to 10 percent just for signing up. Then, when they renew their policy, their rate could decrease by up to 60 percent or increase by up to 9 percent based on their driving habits.

Richard Hutchinson, a Progressive general manager, said the program is designed for drivers who are consistent and safe.

"We want people to know that the program is not right for everyone," Hutchinson said.

"It's for people who drive at low risk times of day and who keep alert for others on the road," he said. "They don't make fast lane changes or follow too closely behind other drivers so they don't have to overreact or slam on the brakes."

Progressive began the program in Alabama in late June. It's also been made available in Minnesota, Oregon and Michigan. A national rollout of the program will continue throughout 2008 and 2009.

It starts in New Jersey on Aug. 8. The company will be the first to offer such a program in the Garden State, whose motorists have the highest auto insurance rates in the nation at an average of $1,184 per vehicle.

Other companies also recently began offering similar options.

GMAC Insurance and OnStar vehicle services last year started a new program that allows motorists to earn an extra discount based on the miles they drive.

The concept has been utilized elsewhere, too.

After conducting a pilot scheme with 5,000 drivers beginning in 2004, Norwich Union launched a pay-as-you-drive insurance program in 2006 in Great Britain.

Insurers say that cars driven less often, in less risky ways and at less risky times can receive a lower premium.

As a result, Michael Barry, a vice president at the Insurance Information Institute, said many auto insurers are exploring the option.

"The consumer is really being given an opportunity to potentially reduce their auto insurance premium in exchange for giving their auto insurer access to information that currently isn't available to them," he said.

Environmentalists generally back the concept. According to the Environmental Defense Fund, the programs help reduce traffic congestion and pollution.

Progressive spokeswoman Tara Chiarell said the customer owns the data so Progressive would only use it for claims purposes with the owner's permission or if it were subpoenaed and it was required to do so by law.

She said Progressive has never been subpoenaed to submit pay-as-you-drive data.

Chiarell also said Progressive doesn't sell or share the data with any other companies or agencies.

She said the data is collected on a daily basis. Customers can access their data on a secure, password-protected Web site, which allows them to get an up-to-date view of their driving habits and how those habits are affecting their rate, she said.

But Charles Samuelson, the ACLU of Minnesota executive director, told The Star Ledger of Newark for Monday's editions that they have 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."

AAA-Mid-Atlantic spokesman David Weinstein said if a link between electronic monitoring and accident probability becomes clear, they would like to see all drivers' insurance premiums based on that information.

"Not just select drivers who grant their permission," he said.

On the Net:

Progressive Corp. http://www.progressive.com/

7/29/08

Many Texans lacking auto insurance

AUSTIN — One in four drivers stopped by state troopers in Austin and Travis County for traffic violations this summer has been uninsured, and the percentage may be even higher in other parts of the state, an insurance industry spokesman said Monday.

"The numbers show that Texas has an even larger number of uninsured drivers than we had realized," said Mark Hanna, spokesman for the Insurance Council of Texas, which has been monitoring Texas' new auto insurance verification program.

"Troopers tell us that some areas of the state may have more than half of their drivers uninsured, and that's scary news for everyone else on our roadways," he added.

Texas law requires every driver to carry liability insurance, and the minimum amount required was increased this spring for the first time in 22 years.

Hanna said he didn't think the higher requirement was a factor in the lack of coverage because the effect on premiums was "minimal."

But 25.5 percent of 5,012 drivers stopped by Texas Department of Public Safety officers in Travis County and small portions of nearby Williamson and Hays counties since June 2 have lacked insurance, he said.

DPS spokeswoman Tela Mange said the number of insured drivers has "always been a moving target."

"We always thought it was somewhere between 20 and 25 percent," she said, based on information provided by drivers in accidents. But this is the first verification program of its kind in Texas.

Travis County was selected for a 60-day pilot project testing the new TexasSure program, which allows police via computer to verify coverage status when they stop a motorist.

A $7 million contract with HDI solutions Inc., an Alabama company that developed the database of insurance customers and drivers' license records, is funded by a portion of the vehicle registration fee.

All uninsured drivers stopped by troopers during this testing phase, which will end in a few more days, have been ticketed. Drivers who said they were insured but weren't carrying proof of insurance weren't issued citations if troopers, using the new technology, validated their insurance coverage.

"The program has worked the way it was supposed to," said DPS Lt. Louis Sanchez.

After the pilot project has been completed, DPS will issue an evaluation report. Eventually, the program is designed to be available for use by police statewide, although it won't be mandatory.

The new minimum requirements for auto liability insurance in Texas are $25,000 of coverage for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage.

The previous minimum requirements were $20,000/$40,000/$15,000.

The new requirements were expected to increase the cost of liability coverage by 4 percent to 6 percent, although liability insurance is only part of the auto coverage for many drivers.

Someone driving without liability insurance can be fined as much as $350 for a first offense and as much as $1,000 for subsequent offenses.

Auto insurer Progressive offers discounts to motorists who permit monitoring of driving habits

TRENTON, N.J. (AP) _ A high-tech monitoring device makes it possible to reduce insurance premiums for drivers who avoid jackrabbit starts and slam-on-the-brakes stops, an insurance company says.

The catch? Bad drivers who take a chance on the program may wind up paying a surcharge instead.

Auto insurer Progressive Corp. has begun offering its drivers the chance to cut their costs based on how they actually drive, not only on their age, credit score and number of tickets or accidents on their record.

The monitoring device — sort of like a black box for cars — tells Progressive what time people drive, how many miles they've driven, how fast they accelerate and how often they hit the brakes. It does not track where people go.

Under Progressive's program, customers can earn a first-term discount of up to 10 percent just for signing up. When they renew their policy, their rate could decrease by up to 60 percent based on their driving habits. But it could also increase by up to 9 percent.

Richard Hutchinson, a Progressive general manager, said the program is designed for drivers who are consistent and safe.

"We want people to know that the program is not right for everyone," Hutchinson said.

"It's for people who drive at low-risk times of day and who keep alert for others on the road," he said. "They don't make fast lane changes or follow too closely behind other drivers so they don't have to overreact or slam on the brakes."

Progressive began the program in Alabama in late June. It's also been made available in Minnesota, Oregon and Michigan. A national rollout of the program will continue through 2009.

It starts in New Jersey on Aug. 8. The company will be the first to offer such a program in the Garden State, whose motorists have the highest auto insurance rates in the nation at an average of $1,184 per vehicle.

Other companies also recently began offering similar options.

GMAC Insurance and OnStar vehicle services last year started a new program that allows motorists to earn an extra discount based on the miles they drive.

"The consumer is really being given an opportunity to potentially reduce their auto insurance premium in exchange for giving their auto insurer access to information that currently isn't available to them," said Michael Barry, a vice president at the Insurance Information Institute.

The concept has been utilized elsewhere, too. After conducting a pilot scheme beginning in 2004, Norwich Union launched a pay-as-you-drive insurance program in 2006 in Great Britain.

Several insurers in recent years have offered monitoring of a particularly vulnerable population of drivers — teenagers. Under American Family Insurance Co.'s program, for example, a camera records audio and video images of the road and the teen driver when motion sensors detect swerving, hard braking, sudden acceleration or a collision.

There's an extra benefit to monitored driving programs — they help cut traffic congestion and pollution, according to the Environmental Defense Fund.

But Charles Samuelson, executive director of the American Civil Liberties Union of Minnesota, told The Star Ledger of Newark for Monday's editions that the group has 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 spokeswoman Tara Chiarell disagreed, saying the customer owns the data and Progressive doesn't sell it or share it. The company uses it only for claims purposes. She also said Progressive has never been subpoenaed by a court to submit pay-as-you-drive data.

Customers can access their data on a secure, password-protected Web site, which allows them to get an up-to-date view of their driving habits and how those habits are affecting their rate, she said.

AAA Mid-Atlantic spokesman David Weinstein said if a link between electronic monitoring and accident probability becomes clear, they would like to see all drivers' insurance premiums based on that information, "not just select drivers who grant their permission."

___

On the Net:

Progressive Corp. http://www.progressive.com/

7/27/08

Are Auto Insurers Readying for a War on Horsepower?

The freedom to drive fast in a powerful car is fundamental to the mystique that auto makers use to sell cars. Now, as if the auto industry didn't have enough trouble, come more signs of a looming war on horsepower and speed.

The average horsepower for new cars has risen steadily since 1985, both in absolute terms and in terms of horsepower per 100 pounds of vehicle weight. A 1981 Honda Accord had a base engine with just 75 horsepower. A base model 2008 Accord has a 177 horsepower four-cylinder engine, and you can buy a six-cylinder model with 275 horsepower. As recently as the mid-1990s, that would have made the current Accord more powerful than a Cadillac Eldorado.

More from The Wall Street Journal Online:

• Next Car Debate: Total Miles Driven

• High Fashion Hits the Highway

• SUVs in Small, Luxury Packages

Meanwhile, motorists are stepping on the gas, especially since the demise of the national 55 mile-per-hour speed limit in 1995. the average vehicle speed exceeded the posted limit on freeways in eight urban areas monitored by the Insurance Institute for Highway Safety. (The cities were Albuquerque, Atlanta, Boston, Denver, Los Angeles, Omaha, Tampa and Washington, D.C. The Institute didn't visit Detroit, evidently. No need. We Motowners tend to view speed-limit signs as reminders of the minimum speed required to justify taking up space on the freeway.)

It's not just environmentalists who are casting disapproving eyes on these trends.

"All this power on U.S. roads has translated into higher insurance losses," the Insurance Institute for Highway Safety says in its latest "Status Report, a regular newsletter that highlights issues of concern to the insurance institute research arm. The IIHS is perhaps best known to consumers as the sponsors of the crash tests that are staples of television news magazines. Over the years, the IIHS has helped push auto makers to develop and make available a number of important safety technologies such as side-curtain airbags.

The IIHS highlights a study released earlier this month by its sister organization, the Highway Loss Data Institute, that concludes insurance losses have been rising steadily since 1985, as cars have become more powerful.

The HLDI study compares the insurance losses of a 2005 Pontiac Grand Am, a midsize General Motors Corp. car that had a 140 horsepower engine, to a 2005 Nissan Altima, outfitted with a 3.5 liter 260 horsepower engine.

"Collision losses for the more powerful Altima are an estimated 20% higher than for the less powerful Grand Am for rated drivers 25-64," according to the Insurance Institute's summary of the study. That means that an Altima driver living in an urban area could expect to run up an average of $339 in collision losses on an annualized basis compared to $283 for a similar driver behind the wheel of a Grand Am.

It's not as if the auto insurance industry has overlooked the potential for mayhem posed by high performance cars. Just for fun, I put myself through the surprisingly intrusive process of asking the Lizard of Auto Insurance (Why do they need to know what industry I work in? When they figure it out, would they let me know?) how much it would cost to put collision coverage on a fictional 2004 Pontiac Grand Am SE, compared to my actual 2004 Subaru WRX sedan.


Daimler
Will cars like this Mercedes Benz CLK 63 AMG Black Series with a V8 engine that produces 507 horsepower get swept away in a war against speed and power?

Surprise, surprise: The Lizard would want $530.30 every six months to provide collision coverage to my 227-horsepower Japanese pocket rocket, compared to $260.30 for similar coverage on the Plain John Pontiac. (Good news: GM is making it easier to buy used Pontiacs by listing them on eBay.)

Still, the Insurance Institute/HLDI conclusion that higher horsepower correlates to increased insurance-claim losses across the board -- for younger and older drivers -- isn't a welcome development for the industry or consumers who like cars with larger power-to-weight ratios.

The same issue of the Insurance Institute newsletter contains approving reports on the use of cameras to monitor speed and issue speeding tickets. In Montgomery County, Md., outside of Washington, D.C., the installation of speed cameras in certain 35 mile-per-hour speed zones dropped the proportion of vehicles driving 10 miles per hour over the limit by 70%, the IIHS reports.

In Scottsdale, Ariz., a well publicized test of speed cameras on the Loop 101 highway also coincided with a substantial drop in speeding. The share of vehicles traveling faster than 75 miles per hour on the road fell to 1-2% from 15% before the cameras were installed, the IIHS reports. Arizona officials now are considering broader use of speed cameras.

Speed cameras are part of a bigger debate America is having over whether potential improvements in public safety are worth surrendering another increment of privacy and freedom to the state.

Opponents of speed cameras protest that such monitoring violates motorists' privacy, since where you are and who you are with in your car ought to be your business. To neutralize that argument, speed camera proponents counter that the systems can be designed to photograph the license plate, not the occupants.

Taken as a whole, the IIHS's broadside against power and speed -- launched amid the bigger debate over the automobile's role in our energy and environmental problems -- should represent a warning to car makers and automotive enthusiasts. There's a backlash building against the idea of the car as an unassailable icon of freedom and power. America has changed since the late 1960's. The car culture may have to as well.

Copyrighted, Dow Jones & Company, Inc. All rights reserved

Esurance Auto Insurance Glossary

Esurance Auto Insurance Glossary: A
Accidental Death Coverage
Accidental death coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans.

If someone who's covered dies from accident-related injuries, this type of auto insurance coverage may provide a payment to the insured's designated beneficiary.

Actual Cash Value
You'll see this term a lot in auto insurance policies or if you ever have to file an auto insurance claim. That's because most auto insurance coverage reimburses you only for the actual cash value of your car. Your car's actual cash value is calculated by determining its original value, minus the amount your car has depreciated since you bought it.

Adjuster
An adjuster is the person who investigates and settles auto insurance claims.

Agent/Broker
Agents and brokers both sell and manage insurance for their customers. Agents are the authorized representatives of an insurance company or companies, while brokers are the authorized representatives of people looking for insurance.

Anti-Theft Recovery System
These systems consist of an electronic device that's installed in a concealed area of your car. If your car is stolen, you can activate the device and it will emit a signal that can be used to locate your car.

Anti-theft recovery systems can be effective over a radius of several miles, depending on local geography. Ask your car dealer or nearby police department which brand of recovery systems are supported in your area. By installing an anti-theft recovery system, you may be eligible for an auto insurance discount.


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Esurance Auto Insurance Glossary: B
Benefit
A benefit is the amount paid by an auto insurance company to you or your beneficiary when you file a claim.

Bodily Injury Liability Coverage
Bodily injury liability coverage protects you if you are held responsible for injuring someone in a car accident.
This coverage helps pay for the injured party's medical expenses and lost wages. Bodily injury liability may also help pay your expenses in a related lawsuit.

The amount covered is capped at the limits you select when you buy your auto insurance policy.

Broadform Collision Coverage
This auto insurance coverage is available only in Michigan.

Broadform works like standard collision coverage, but also pays for collision damage to your insured car regardless of who's at fault.

Although this auto insurance coverage will pay up to your car's actual cash value regardless of fault in an accident, you'll be responsible for the deductible amount you select if you're found to be more than 50 percent responsible for the accident. If you're less than 50 percent responsible, you won't have to pay this deductible.

Business/Commercial Use
This classification means that you mainly use your car for business purposes (such as sales, service, and delivery calls) or work-related errands (like trips to the bank or post office), and other work-related driving. Commuting to and from work is not considered business use.

Esurance doesn't currently provide auto insurance coverage for vehicles driven primarily for business/commercial use. (Not sure if this applies to you? We show you a checklist to help you figure out if business/commercial use applies to you when you get your auto insurance quote.)


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Esurance Auto Insurance Glossary: C
Card ID Number
When you pay for your auto insurance policy with a credit or debit card, we ask for the card's ID number. This 3-digit number is printed on the signature strip of cards with the MasterCard, Visa, and Discover logos. American Express card ID numbers are 4 digits long, and are printed on the card's front side, immediately above the actual card number.

To better safeguard your security, many businesses like ours are starting to ask for a card ID number. The card ID number helps ensure that no one is able to make a purchase without having an actual credit or debit card in their possession.

Claim
An auto insurance claim is a policyholder's request to be reimbursed for a loss that's covered by insurance.

Collision Coverage
Collision coverage helps pay for auto repair or replacement costs if your car hits another vehicle/object or if your car rolls over.
The maximum amount paid for repair or replacement is the car's actual cash value, minus the amount of the deductible you choose when you buy your auto insurance policy.

Collision Deductible Waiver
This auto insurance coverage pays the deductible for your collision coverage if you're involved in an accident in which an uninsured motorist is held legally responsible.

This particular auto insurance coverage isn't available in all states. If it is available, you have to buy this coverage with collision coverage when you buy your auto insurance policy.

Commuting
If you primarily use your car for commuting, this means that you mainly use the car to drive it to and from work or school.

Comprehensive Coverage
Comprehensive coverage helps pay for damage to your car resulting from fire, certain natural disasters, falling objects, and vandalism. Theft's also covered.

The maximum amount paid for repair or replacement is the car's actual cash value, minus the amount of the deductible you choose when you buy your auto insurance policy.

Continuously Insured
The length of time you've been continuously insured is the number of years you have been covered by one or more auto insurance companies without a lapse in your coverage.


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Esurance Auto Insurance Glossary: D
Deductible
For some types of auto insurance coverage, you're asked to choose a deductible. A deductible is the amount of damages you agree to pay for if you file an auto insurance claim.

Though choosing a higher deductible can substantially lower your auto insurance premium, if you file an auto insurance claim, you'll have to pay the full, pre-established amount of the deductible out of your own pocket in order to receive payment from your auto insurance company.

Declarations
The declarations page of your auto insurance policy summarizes the factual information essential to your auto insurance coverage: the policyholder's name and address, a description of the insured vehicles, the auto insurance premium, as well as the coverages, limits, and deductibles.

Defensive Driver and Driver Improvement Courses
These courses consist of defensive driving training for drivers of all ages as well as "mature driver safety courses" intended for drivers age 55 and over.

In certain states, you may qualify for an auto insurance discount if you're in the eligible age range and if you've taken one of these safety courses.

Depreciation
Depreciation is the decline in an object's value due to age, wear and tear, or obsolescence.


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Esurance Auto Insurance Glossary: E
Effective Date
The effective date is the date your auto insurance coverage begins. You are not covered by car insurance prior to an auto insurance policy's effective date.

Emergency Road Service
This optional auto insurance coverage pays a fixed amount toward vehicle towing if your car breaks down or if your car gets disabled in an accident.

Endorsements
Also known as riders, endorsements are changes to the original insurance contract. In auto insurance coverage, endorsements may include changing your deductibles or adding a new car to your auto insurance policy.

Exclusions
Exclusions are situations that are not covered by a given auto insurance policy. Specific exclusions are listed in your auto insurance policy.

Extraordinary Medical
Extraordinary medical coverage is sometimes a part of Personal Injury Protection or First Party Benefits plans.

Extraordinary medical coverage protects you in the event you suffer accident-related injuries that require serious and/or long-term medical care. Extraordinary medical coverage begins once you have exhausted the limit on your standard medical benefits coverage.


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Esurance Auto Insurance Glossary: F & G
First Party Benefits
First Party Benefits, or FPB, is a kind of optional auto insurance coverage available to Pennsylvania drivers.

Depending on the specific FPB coverages you select, if you're injured in an accident, FPB covers you and relatives residing in the same household for medical expenses, lost income, accidental death, and/or funeral costs. The amounts covered are capped at limits you select when you buy your auto insurance policy.

Full Coverage Auto Insurance
Full coverage auto insurance denotes an insurance policy containing all auto insurance coverage legally required in a given state. The term “full coverage” does not imply the policyholder will always be fully covered.

Funeral Benefits
Funeral benefits coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans. If a covered individual dies from accident-related injuries, this auto insurance coverage pays for a portion of funeral expenses, regardless of who is at fault in an accident.

Covered costs are subject to the limits you choose when you buy your auto insurance policy.

Garaging Location
The garaging location is where your insured car is parked most of the time. This location is usually indicated by the ZIP Code of the policyholder's primary residence.


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Esurance Auto Insurance Glossary: I & J
Income Loss
Income Loss coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans.

Income loss coverage protects you if you're unable to work due to accident-related injuries. This auto insurance coverage helps you recover portions of your lost salary and other expenses you may incur as you try to return to work.

Indemnity
An indemnity is a pre-determined sum paid for a covered loss.

Insurance Claim Report
Insurance claim reports provide details about auto insurance claims you or other insured drivers have filed with insurance companies. These reports are provided by independent consumer reporting agencies that collect auto insurance claim information from a variety of insurance companies. One of the most common agencies issuing such reports is C.L.U.E., the Comprehensive Loss Underwriting Exchange.

Insurance Score
Insurance scores are based on analytical models that objectively measure the relative likelihood of future insurance losses based on your credit history. These scores and analyses of their significance are provided by independent consumer reporting agencies.

Insured
The insured is an individual covered by a given auto insurance policy.

Judgment
A judgment is a final decision rendered by a court of law. For example, in a lawsuit related to an auto accident, where Kate hit Eric’s fence, the court determined that Kate was wholly responsible for the accident. The judgment determined that Kate should pay for the costs of repairing Eric’s fence.


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Esurance Auto Insurance Glossary: L & M
Liability
Liability is a term that broadly means legal responsibility. If you run a stop sign and hit another car, you may be found liable for the damages to the other driver's car.

Liability Coverage
Liability coverage protects you from having to deplete your assets to pay for damages if you're held responsible for injuries or damages arising from a car accident.

The two main types of liability coverages in an auto insurance policy are bodily injury and property damage.

Limits
Limits are the maximum amount an insurance company will pay for a covered loss. Though you can choose your limits for certain coverages, some states require you to buy certain levels of auto insurance coverage. In such states, you'll have to choose limits that at least meet your state's auto insurance requirements.

Medical Benefits
Medical Benefits coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans.

Medical expenses that are the direct result of accident-related injuries are covered. Covered medical expenses are capped at the limits you choose when you buy your auto insurance policy.

Medical Payments Coverage
This auto insurance coverage pays medical bills and/or funeral expenses if a covered driver and/or accompanying passengers are injured or killed while in an insured vehicle, regardless of fault in an accident.

This may also cover policyholders and their family members when in others' vehicles, or when policyholders and their family members are on foot and hit by a car.

The amount paid by medical payments coverage is capped at the limit you choose when your buy your auto insurance policy.

Motor Vehicle Report
A Motor Vehicle Report (MVR) provides information on your driving record. This report includes accidents and moving violations. Auto insurance companies obtain MVRs from states where you or other insured drivers have been licensed to drive.


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Esurance Auto Insurance Glossary: N
National Credit File
The National Credit File provides objective consumer information regarding the financial history of an individual. Information contained in this report is often used to calculate insurance scores.

No-Fault Insurance
If a type of auto insurance coverage is described as no-fault, this generally refers to the way the insurance company settles a covered auto insurance claim.

Generally, if a certain coverage is no-fault, responsibility doesn't have to be assigned before an auto insurance claim gets settled.

No-Fault States
In some states, called no-fault states, insurance companies are legally required to pay a policyholder's covered losses, regardless of who's held responsible for an accident.

Some no-fault states also restrict the right to sue for damages. In states without no-fault regulations, the insurance company covering the person who caused an accident is forced to pay for covered losses.

Non-Passive Alarm
A non-passive alarm has to be manually activated every time you leave the car. If someone attempts to open your car, the alarm sounds, and the system disables the automobile's starter, ignition system, and/or fuel circuit.

You may qualify for an auto insurance discount if your car is equipped with such an alarm.


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Esurance Auto Insurance Glossary: P
Passive Alarm
Passive alarms are automatically activated and emit warning sounds when someone tries to get into your car. Once the passive alarm has been triggered, the system disables the automobile's starter, ignition system, and/or fuel circuit.

You may receive an auto insurance discount if your car is fitted with such an alarm.

Personal Injury Protection
Personal Injury Protection, or PIP, is a kind of auto insurance coverage available only in certain states, where it's often mandatory. PIP generally includes expanded coverage of accident-related medical costs. In some states, PIP also pays for lost wages and similar losses.

Specific protections afforded by this type of auto insurance coverage and limits on PIP payments vary widely from state to state.

Pleasure Use
If you use your car for pleasure, this means that you typically drive it for fun, with no regular commuting or business use.

Policy Expiration Date
Your auto insurance policy's expiration date is the date when auto insurance coverage ends if your auto insurance policy isn't renewed. The expiration date can be found on the declarations page of your auto insurance policy, on a proof of insurance card, or on a recent auto insurance renewal notice.

Policy Term
A policy term is the length of time an auto insurance policy is valid. Auto insurance policies from Esurance have a policy term of 6 months.

Primary Driver
The primary driver is the person who drives a car most frequently.

Primary Use
A vehicle's primary use is how the car is typically used. Auto insurance companies usually classify primary use as commuting, business/commercial, or pleasure use.

Primary Policyholder
The primary policyholder is the person who serves as the main point of contact with Esurance. Since he/she is the main point of contact, we need the primary policyholder's valid email address so that we can send account updates, auto insurance renewal notices, and other policy-related communication.

Typically, the primary policyholder is also the person billed for your auto insurance policy from Esurance. If you prefer, any other person listed on your auto insurance policy can also be billed for your auto insurance premium.

Property Damage Liability Coverage
Property damage liability coverage protects you if you are held responsible for damaging someone else's property in a car accident.

Property damage coverage helps you reimburse another person for their damaged property (such as a car, a fence, or a home). This type of auto insurance coverage also helps pay your expenses in a related lawsuit.

The amount covered by property damage liability is capped at the limit you choose when you buy your auto insurance policy.


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Esurance Auto Insurance Glossary: R, S, & T
Rental Car Reimbursement
Rental car reimbursement is an optional kind of auto insurance coverage that helps pay for your rental car expenses if an insured car is damaged or stolen and you need a rental car.

SR-22
An SR-22 is an official document that shows proof of financial responsibility. Courts may require an SR-22 or a similar form for people convicted of certain traffic violations.

Secondary Driver
A secondary driver is one of the drivers listed on your auto insurance policy who's insured for driving an insured vehicle. However, this driver is not a car's primary driver.

A secondary driver is also sometimes known as an occasional driver in auto insurance terminology.

Supplemental Spousal Liability
Supplemental spousal liability, or SSL, is an optional coverage, available only in New York State.

This type of auto insurance coverage protects you if you’re found to be at fault in an accident resulting in injury or fatality to your spouse.

The amount covered by SSL is capped at the limit you choose when you buy your auto insurance policy.

Stacking - Uninsured/Underinsured Motorist Bodily Injury Coverage
Stacking is an option available when you buy uninsured/underinsured motorist bodily injury coverage. Stacking changes the limits for this type of auto insurance coverage.

When you choose stacking, uninsured/underinsured motorist bodily injury limits increase by the number of cars you're insuring. If you buy $50,000/$100,000 limits for uninsured/underinsured motorist bodily injury coverage, choose stacking, and insure 2 cars, stacked limits for this coverage then equal $100,000/$200,000.

Steering Restraint
A steering restraint is a durable collar or shield fitted to the upper and lower casing of your car's steering column. The collar makes it harder for potential thieves to access, or "hotwire," your car's ignition system.

You may qualify for an auto insurance discount if your car is fitted with a steering restraint.

Tort
Tort is a legal term used to describe instances when someone is deemed legally responsible for injuring another person or damaging his/her property.

Some states ask you to select a tort provision. In these states, you can limit your right to sue for non-monetary damages (like pain and suffering) in exchange for a reduced auto insurance premium.

Towing Coverage
This type of auto insurance coverage is optional, and pays a fixed amount toward towing if your car breaks down or if it's disabled in an accident.


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Esurance Auto Insurance Glossary: U & V
Underinsured Motorist Bodily Injury Coverage
Underinsured motorist bodily injury coverage is available in some states, where it's often mandatory.

This type of auto insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who has insufficient auto insurance coverage.

This kind of auto insurance coverage typically pays the difference between the coverage limit you select and the other driver's bodily injury coverage limit.

The amount covered by underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

Underinsured Motorist Property Damage Coverage
Underinsured motorist property damage coverage is available in some states, where it's often mandatory.

This type of auto insurance coverage protects you if your car is damaged in an accident caused by a driver who has insufficient auto insurance coverage. Other specific protection afforded by this type of auto insurance coverage varies from state to state.

This kind of auto insurance coverage pays the difference between the coverage limit you select and the other driver's property damage coverage limit.

The amount covered by underinsured motorist property damage is capped at the limit you choose when you buy your auto insurance policy.

Uninsured Motorist Bodily Injury Coverage
Uninsured motorist bodily injury coverage is available in some states, where it's often mandatory.

This kind of auto insurance coverage pays for your medical expenses, lost wages, and other general damages when you or your passengers are injured in an accident caused by a driver who has no car insurance. Uninsured motorist coverage also pays for injuries sustained in hit-and-run accidents.

The amount covered by uninsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

Uninsured Motorist Property Damage Coverage
Uninsured motorist property damage coverage is available in some states, where it's often mandatory.

This kind of auto insurance coverage protects you if your vehicle is damaged in an accident caused by a driver who has no car insurance. Other protection afforded by this type of auto insurance coverage varies from state to state.

The amount covered by uninsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy. In some states, you'll need to pay a deductible each time you file an auto insurance claim.

Uninsured/Underinsured Motorist Bodily Injury Coverage
In some states, both uninsured and underinsured motorist bodily injury are bundled into a single coverage. In the states where this type of auto insurance coverage offered, it may be mandatory.

This kind of auto insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who doesn't have enough car insurance, or who completely lacks auto insurance coverage. This type of auto insurance coverage also pays for injuries sustained in hit-and-run accidents.

The amount covered by uninsured/underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

VIN
The VIN, short for Vehicle Identification Number, is the unique 17-digit number found on every car. The VIN contains the vehicle's serial number, as well as abbreviations for the make, model, and year.

The VIN appears on your vehicle registration card. It's also engraved in your car, near the base of the windshield on the driver's side dashboard and/or on the edge of the driver's side door.

Though you don't need to enter your VIN when you get an auto insurance quote from Esurance, you will need to provide your car's VIN when you buy your auto insurance policy.
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