The sum you pay on an once per month basis will rely on how much deductible you need to pay, or what quantity of the up-front costs you are prepared to look after in the event of an accident.

The commonest amounts for deductibles in vehicle insurance are $100, $250, $500, and $1,000, though different firms may offer other alternatives.

The bigger the deductible, or the sum you pay in the event of an accident, the cut your monthly rates will be. So, if you select the lowest deductible, $100, meaning the insurer is responsible for just about all costs, youll finish up paying higher monthly rates. Which option you select ( high deductible / low rates or low deductible / high rates ) will rely upon what you are able to afford and also how often you are expecting to need your insurance. If you have an accident of some sort every couple of months, you’ll probably wish to pay the minimum amount and let the insurer take on the bulk of costs. For safer drivers who have a good driving record, its quickest to go with the higher deductible and pay lower rates instead. Limitations Each insurance firm has a limit to the amount they are going to pay. The rates you have every month will also have an effect on this, so you can decide how high you would like to go for the best limit, without requiring to pay too much every month. The bulk of drivers never need the highest boundaries. How does the limit have an affect on your deductible? Well, you are in charge of paying the quantity of your deductible, naturally, but once the insurer has paid up to the limit, you’ll have to pay any costs over that. To offer you a quick example, we could say your deductible is $500, the limit is $10,000 and damages finish up costing $12,000. You would pay the 1st $500.

The insurance corporation would then pay their $10,000 and you’d be in charge of the leftover $1,500. Your automobile insurance doesn’t need to be confusing. Make the effort to go over the numbers and work out what you’d be able to afford in the red in the event of an accident and how much you are able to afford to pay on an once per month basis.

A little research can go a great distance. Its also useful to speak with the car insurer’s broker who can provide you with a sensible idea of what normal would be for your automobiles age and your driving experience.

Would the law for health insurance be similar if Hillary Clinton is elected president: “everybody who has a body has to buy private heath insurance for that body”.

Will it be like that or have I misunderstood her plan?
Please explain it to me.

The research, undertaken on behalf of swiftcover.com, found British drivers to be extremely confused as to what is and isn’t covered by their insurance. For example, while eating and smoking behind the wheel might not be a criminal offence, many drivers are not aware that they could be accused of negligence if involved in an accident while smoking or eating; resulting in a drastically reduced payout.

The main findings were as follows:

Driving other people’s cars
Hopping behind the wheel of your partner or friend’s car might seem like a perfectly acceptable thing to do – indeed a third (29 per cent) of drivers polled assumed that they would be insured through their own insurance. In fact, most car insurance policies only insure drivers if it’s included in the small print, and rarely offer more than third party cover.

swiftcover.com’s advice: Don’t just assume you’ll be covered – if you need to drive someone else’s car, check your insurance policy.

Eating, smoking and using a mobile behind the wheel
65 per cent of drivers eat whilst driving and 36 per cent still smoke. swiftcover.com’s poll found that over a fifth of British motorists don’t know whether they would be covered regardless if they were in an accident – in fact they could be caught for negligence if caught eating or smoking while an accident occurred, even if the accident wasn’t their fault.

swiftcover.com’s advice: Drive safe – drivers’ reaction times are 50 per cent slower when on the phone, eating or smoking, whilst the Highway Code recently listed eating and smoking as dangerous distractions.

Underrating your mileage
Not telling your insurer when you exceed your mileage can invalidate your policy. swiftcover.com’s poll showed that a quarter (25.8 per cent) of motorists didn’t know whether driving over their stated mileage would affect their insurance cover – whilst nearly a fifth (16.1 per cent) stated that it wouldn’t.

swiftcover.com’s advice: Keep a check and always inform your insurer if your circumstances change.

Petrol v diesel
Putting the wrong kind of fuel into your car is not something anyone wants to do – but thousands of British motorists each year get it wrong. Unfortunately, this can be a costly mistake – as many policies won’t cover this. Worryingly, 10 per cent of people assumed their policy would cover this.

swiftcover.com’s advice: Always double-check at the pump – an engine strip-down costs thousands of pounds, and this is not something you want to have to pay for.

Tina Shortle of swiftcover.com commented, “While choosing the lowest price car insurance policy is most people’s objective, it is also important to know exactly what is and isn’t covered. Drivers make a lot of assumptions about their policies, so it’s best to read all terms and conditions carefully and to regularly review the terms.”

The research was carried out via Survey Monkey in April 2008 and polled 386 drivers throughout the UK.

We wanted to find out from an insider exactly what goes into those prices and what we can do to keep our car insurance costs down. We talked to Patrick Lawson, a 25-year veteran auto insurance agent.

Bottom line: Premiums

Have you ever wondered how they come up with these numbers? Lawson mentioned the common factors like age, sex, car type and driving record but also noted a new, little known factor. “Companies are now, of all things, checking credit because people with poor credit, statistically, can be susceptible to more claims,” he said.

He explained that some people in these cases are more apt to file a claim instead of settling it themselves because they might not have the means to handle it any other way.

“Insurance is nothing but numbers, and that’s all the industry has to go on is how they make these number come out. And the numbers suggest that people with less-than-perfect credit, sometimes, have a higher probability of claims,” says Lawson.

Regardless of good credit or bad credit, he always recommends that people shop around for car insurance, “Even if you have pristine credit, some companies put more of a value on credit than others,” he said. “You can’t make a blanket statement, but what you can say is it pays for everybody to shop around a little bit because it’s well worth it.”

He said that some car insurance companies have bad experiences with drivers and some have more positive experiences so, “You as a consumer, have the job to find the ones that are having the good experiences.”

Once you find a car insurance company that provides the services you’re looking for, keep in mind that the prices themselves are fixed by the insurance company, so haggling with your agent is out of the question. “Whatever the price is, it is,” he said.

Things to avoid

Many of us have let someone else borrow our car for a short time. Maybe we’re hurt and can’t drive, a friend needs a car for the day, or we simply just don’t feel like driving. Lawson says that lending your car to the wrong person can be a big mistake.

“You should always be careful who you let drive your vehicle. You just don’t arbitrarily say, ‘Hey take the keys and go’ because you don’t know what that person is doing, you don’t know their driving record, you may not even know if they have a license,” says Lawson.

He explained that if you lend your car to an unauthorized person and they get into an accident, your car insurance company might do everything it can to get out of settling the claim. This is especially important for parents who have their kids named on their policy as drivers. Sometimes their kids let their friends drive the vehicle as well. “As a rule of thumb, only the names of insured persons should ever give permission and only in extenuating circumstances, don’t use it as carte blanche,” Lawson said.

Speaking of things to avoid, we asked him if buying a red sports car was out of the question. “Here’s a real misnomer about auto insurance, people say if you get a red sports car, that’s like the kiss of death. Color has absolutely nothing to do with whether you get a speeding ticket or you don’t,” he said. If two cars are going 85 mph in a 65 mph zone, the police are not more likely to pull one over and issue a ticket because that car is red, Lawson said. When Lawson was studying to become a car insurance agent, he said the instructors made it a point to tell students that the red car theory is a falsehood.

The real problem with speeding tickets has to do with the drivers themselves, not the color of the car. “Some insurance companies are only equipped to deal with you if you get two tickets in a three year period. If you pick up three, you’ve gotten out of their underwriting mode where they’re not going to renew you,” he said. If your tickets (or accidents) build up, some companies will drop you because you’re a risk.

In some cases, drivers just don’t have any control over what happens when they get into their vehicles. Hitting a deer one too many times or being rear-ended on more than one occasion, can also affect your car insurance rate. “You hate to say it but that’s almost the case,” Lawson said. “Being at the wrong place at the wrong time can come back to bite you.”

Lawson acknowledged that it may not be fair that insurance companies handle certain people this way. Even if there’s no real reason why some people get into more accidents than others, the fact is their claims cause companies to lose money.

Another thing to avoid is lying to your auto insurance agent. If you think he doesn’t know about your tickets and accidents, think again. He’s had a few people tell him their driving record, minus a few small details. He’ll look up their record on the computer and, “They’ll watch it print,” he said, “and I’ve had a couple people just get up and gather their belongings and just walk out because they know they’re dead in the water.”

Serious side of auto insurance

With 25 years under his belt, Lawson has seen a lot. He talked about a family who came into his office wanting to purchase motorcycle insurance for a first-time bike owner, their 16-year-old son. They showed him a picture of the bike they were purchasing, a bike he described as, “A crotch rocket that does 0-60 as fast as you can sneeze.”

He told the mother that it was a mistake, but she emphasized how safe her son was going to be. He told her, “Ma’am, I don’t want to be inappropriate or hurt anyone’s feelings, but this is a death claim waiting to happen. When you take a fast motorcycle on an inexperienced operator, you’re begging for problems.”

The first weekend the kid was on the bike, he lost control on a rural road, became airborne and totaled the bike. He spent some time in the hospital and later recovered. The mom called Lawson after the accident. “They called me up and the lady was crying and said, ‘Why in the world did we not listen to you?’ What do you say to something like that,” Lawson asked, “You can’t say anything except, ‘I’m sorry it happened,’ and ask ‘how is he?’”

Motorcycles aren’t the only dangerous thing on the roads though. Drivers who talk on their cell phones and send text messages cause accidents as well. Lawson knows firsthand the dangers of these distractions. A close friend of his was permanently disabled when a woman dropped her cell phone on the passenger floor and swerved into his lane when she tried to pick it up. The woman didn’t have adequate insurance and his friend ended up being bankrupt by the medical bills.

“I think all the states should raise the minimum liability limits and require that all states make auto insurance mandatory,” he said.

Chances are, most of us live in a state where car insurance is mandatory. By keeping your credit score in check (or working to improve it), shopping around for a car insurance company that fits your needs and avoiding mishaps like speeding tickets and accidents, you’ll be able to keep the cost of your car insurance down.

Also make sure to know what your current car insurance policy covers. You may have coverage that you don’t need like windshield replacement or tow truck coverage. Adjust your coverage to get the car insurance that you need, with the price that matches your budget.

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In the rush to feel “covered,” they can skip the details. That can lead to frustration.

Following are five insurance myths heard by some of the more than 13,000 claims people at Progressive, one of the country’s largest auto insurance companies:

Myth

I bought “full coverage” so everything’s paid for.

Reality

There is no such thing as “full coverage.” In most states, only liability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation.

Myth

I need three estimates before my wrecked vehicle can be repaired.

Reality

Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that’s in an insurance company’s “network” of pre-approved shops, you may just have to get an estimate from that shop.

Myth

My insurance premium always increases if I’m involved in an accident.

Reality

It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate.

Myth

If I lend my car to someone and he/she crashes it, I’m covered.

Reality

Not so fast. If you or your friend doesn’t have optional physical damage coverages, damage to your vehicle generally won’t be covered.

Myth

If I buy a new car, my auto insurance company automatically knows and my new car is covered.

Reality

No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy.

“Insurance can be complicated,” says Chuck Crist of Progressive. “It’s not something people deal with every day. So the more informed you are, the better choices you’ll make.”

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This is according to the Independent, which recently examined why females often receive cheaper car and life insurance policies than their male counterparts.

Men are more likely to be involved in serious or fatal accidents and therefore pay higher premiums, the publication states.

“What you’ll find is that men tend to have more high-value accidents, whereas women tend to have more bumps and scrapes – usually at lower speeds and closer to home – which is why their insurance is cheaper,” said Niki Bolton of Sheilas’ Wheels.

The publication goes on to cite government figures that 60 times as many men are convicted of motoring offences than women, meaning that females can save hundreds of pounds on their women’s car insurance.

Last month, the Mail on Sunday made a similar claim based on findings by comparison site uSwitch.com.

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Some agents therefore advise their clients to give notice anyway, in the worst-case scenario they can place insurance with the same insurance company again. Moreover, the threat of notice also results in discounts at some insurance companies. Though the discounts are not included in price lists, they can be arranged at individual branches under the title commercial or director’s bonus. It depends only on the insurance company again whether it is willing to provide discounts to some clients. However, some of them are against such a procedure. “We never agreed to dumping, even when we lost a part of our clientele as a result,” asserted Antonín Nekvinda, Director General of Česká poisťovňa – Slovensko.

The times when it was sufficient to opt for the cheapest offer are definitely over. The price lists have become more complicated. And the make of car has ceased to be the base according to which insurance premium prices are set. Logically, the dangerousness of a car largely depends on the driver.

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However, esure’s Adrian Webb explained that most policies only covered third party damages.

Mr Webb said that it was important the drivers contacted their provider and arranged additional cover before driving in Europe.

“People have got very confused over this whole area; people seem to have absorbed the view erroneously that having an insurance policy with a UK company covers you anywhere within the EU,” he explained.

“EU cover is worth nothing to you – it’s only worth anything to someone you hit.

“Don’t ever take on a car abroad without having checked that there’s an insurance policy in place for that car that covers you. Otherwise you’ll be in for a very nasty shock.”

A recent report from Halifax suggested that Britons drive 15 billion miles each year on holiday road trips.

Paul Birkhead, of Halifax Travel Insurance, commented at the time: “From Easy Rider to Road Trip, popular culture has glamorised heading out on the open road. Millions of Britons have been inspired to hit the highway and embrace the freedom provided by a holiday road trip.”

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An auto insurance company is now offering their owners a benefit for pets.

Progressive Corp., based in suburban Mayfield, is providing collision coverage for customers’ dogs or cats at no additional premium cost. It will pay up to $500 if a customer’s dog or cat is hurt or dies in a car accident.

“It’s an unusual and interesting benefit,” said Jean Salvatore, a senior vice president for the New York-based Insurance Information Institute. She was not aware of any other company offering a collision benefit for pets.

“Auto insurance is a very competitive market, and companies are always looking for ways to differentiate themselves. If this becomes popular, I’m sure others may look into it as well,” Salvatore said.

There are over 150 million pets in the U.S., and Americans spend over $40 billion on their pets annually, according to a recent Insurance Information Institute study.

The Progressive benefit has been in place since Sept. 6, and it’s still too soon to determine if the company’s undetermined cost of offering it will be offset by better sales, Progressive spokeswoman Leah Knapp said.

Auto insurance generally provides property, liability and medical coverage.

Typically, an insured person’s collision coverage pays for the damage to the insured’s vehicle in a collision or other kind of accident, such as when a driver loses control and a car overturns. But usually there’s no payment for pets who may be in the car.

Liability coverage would kick in for any pets hurt in a car other than the insured’s.

The new Progressive benefit is not pet insurance, which some people obtain to help them pay veterinarian costs.

A Progressive strategist said the company saw a pets benefit as an auto insurance market opportunity.

“We found no coverage that was even similar to it,” said Geoff Souser, Progressive product manager for auto insurance. “We have pets, too, and we know how important they are to our families. We are always looking for new and different ways of delivering value to our customers, and this seemed like a logical extension.”

Dog owners regularly drive their pets to a place like U Dirty Dog Pet Grooming, in suburban Lyndhurst, not far from Progressive’s headquarters. Business owner Marcia Fox says the pet coverage has potential to grab the attention of a dog owner, like herself.

Fox, who is not a Progressive customer, said she had never thought about whether her mixed breed dog, Ziti, might qualify for an insurance payment through car insurance.

“People might be hesitant to add something like that if it adds to the cost of auto insurance,” Fox said. “If it’s not added to the cost, that’s great. That’s a no brainer.”

Progressive is the third biggest auto insurer, ranking behind State Farm and Allstate and slightly ahead on National Indemnity (Berkshire Hathaway), which includes GEICO.

State Farm and Allstate confirmed a pets benefit is not in the collision part of their policies. A message was left with a GEICO spokeswoman.

Progressive’s pet benefit is available in 46 states and the District of Columbia; it’s not yet available in North Carolina, New Hampshire, New York and Virginia, but the company hopes to offer it in those states soon.

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On the Net:

Progressive: http://newsroom.progressive.com/2007/September/pet-injury-coverage.aspx

Insurance Information Institute: http://www.iii.org

The Chamber of Commerce, the Insurance Insustry Lobby, and wealthy conservative donors to the Senator’s pockets ensure that these bills won’t see the light of day.

Who wants them to see the light of day?

How about the Michigan State Medical Society, the Michigan Nurses Association, the Brain Injury Association of Michigan, the Michigan Health and Hospital Association, the Michigan Academy of Physician Assistants, the Michigan Association of Chiropractors, the Michigan Dental Association, the Michigan College of Emergency Physicians, the AARP, Michigan Paralyzed Veterans of America, and the Michigan Association for Justice, just to name a few.

So what bills are being suppressed by Senator Kuipers and others in the Senate?

1. A bill that would give infants and children and brain injured individuals who have been injured in auto accidents more than one year to recognize and bring their claim for medical benefits. Michigan law recognizes that children and brain injured individuals need more time to bring their claims and they are allowed this time in every other area of law EXCEPT in cases involving auto accidents.

2. A bill that would give those who have been injured by drunk drivers the right to pursue them for the injuries the drunks caused by their negligence.

3. A bill that would require auto insurance companies to fairly compensate families who are required to stay home to care for family members who have been catastrophically injured in car accidents.

4. A bill that would put an end to auto insurance companies refusing to pay in full/pay at all, medical bills submitted by medical care providers who have rendered treatment to individuals injured in car accidents. This bill gouging by auto insurors ends up putting the balances of those medical bills on the backs of the taxpayers like you and I as Medicaid is forced to pick up the tab that should have been paid by the auto insurance company. No wonder AAA reported a doubling of their profits in 2007 to $104.2 million dollars here in Michigan!

The list goes on and on. If a proposed bill hits the Senate floor and it has anything to do with protecting consumers or is perceived to be against the large corporate and insurance donors, Senator Kuipers and other Senators make sure these bills get buried and never see a vote. If we as individuals had the ability to write the big checks that drug companies, insurance companies and corporations write, we could fight this injustice dollar for dollar. But we don’t.

We have something more powerful than lobbyists and large checks. We have the right to vote. Let Kuipers know that you are watching his voting record. Let him know you won’t stand for his obstructionist approach to legislation. Let him know you are watching and you vote.

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