Many drivers may take for granted the fact that their car is equipped with a spare tire. But according a news release from AAA, that may not be true. In order to meet new government fuel efficiency standards, some car makers are taking out spare tires and instead equipping cars with emergency sealant or an inflator kit. They may also make the car with tires that can still operate even with damage.

In 2010 the Department of Transportation and the Environmental Protection Agency increased the limit for miles per gallon rates. For 2012 models, vehicles must have a combined 29.7 mpg. That will increase to 34.1 mpg in 2016. Those increases are forcing auto makers to change things that were once commonplace– like the inclusion of a spare tire. Spare tires and tools can weigh as much as 40 pounds. “Unfortunately many vehicle owners may be unaware that their vehicle has no spare tire until they experience a flat tire,” says John Nielsen, AAA National Director of Auto Buying, and Consumer Information. “Consumers should review their owner’s manual and emergency maintenance supplies they have in the vehicle and be informed about alternatives to a spare to prevent panic or a delay when encountering a flat tire.”

To ensure that you are protected against a flat find out if you have a spare tire. AAA says it’s important to come up with an alternative solution if one is not present. Keep in mind that if sealant is your option, it needs to be replaced every five years or after it’s used.

It’s not just what’s on the road that can cause teen drivers to crash– it’s also about who’s sitting next to them. The Children’s Hospital of Philadelphia and State Farm conducted a study to identify factors that can lead teen drivers with multiple peer passengers to get into an accident. “These studies help us understand the factors that may predispose teens to drive with multiple friends and how those passengers may contribute to crashes by distracting the driver and promoting risky driving behaviors, such as speeding, tailgating, or weaving,” said study author Allison Curry, PhD, director of epidemiology at the Center for Injury Research and Prevention in a news release. “Knowing this, we can develop programs that work in tandem with current Graduated Driver Licensing laws that limit the number of passengers for teens during their first year of driving.”

Nearly 200 teen drivers were surveyed and experts found that those who are most likely to drive with multiple passengers are those that consider themselves thrill-seekers, those whose parents don’t set rules or monitor their whereabouts, or those who don’t understand the risks of driving in general. “The good news is that that these teens make up the minority,” said Jessica Mirman, PhD, study author and a behavioral researcher in a news release. “Teens in this study generally reported strong perceptions of the risks of driving, low frequencies of driving with multiple passengers, and strong beliefs that their parents monitored their behavior and set rules.”

Another study looked at what was happening to distract the teen driver just before they crashed. Males with passengers are nearly six times more likely to break a road rule and twice as likely to drive aggressively before a crash. “Both male and female teen drivers with peer passengers were more likely to be distracted just before a crash as compared to teens who crashed while driving alone,” explained Dr. Curry. “Among the teens who said they were distracted by something inside the vehicle before they crashed, 71 percent of males and 47 percent of females said they were distracted directly by the actions of their passengers.”

The study found that parents play an important role in safe teen driving. Setting house rules of no non-sibling teen passengers for the first six months of driving can help limit accidents. “Most teens take driving seriously and act responsibly behind the wheel. However, some may not realize how passengers can directly affect their driving,” said Dr. Mirman. “Teen passengers can intentionally and unintentionally encourage unsafe driving. Because it can be difficult for new drivers to navigate the rules of the road and manage passengers, it’s best to keep the number of passengers to a minimum for the first year.”

While you may view this season as the perfect time of year for scoring deals, crooks see it as the perfect time of year for crime. Large crowds and rushed shoppers can make for easy targets. Distracted shoppers are at an increased risk for vehicle break-ins, carjacking and other auto-related crimes according to HEAT, Help Eliminate Auto Thefts.

Law enforcement agencies typically report a larger number of break-ins during the holiday season which can taint this typically cheerful season. “The holidays are a joyous time of year filled with family gatherings and gift giving,” said Terri Miller, director of H.E.A.T. in a news release. “But, with overflowing parking lots and vehicles filled to the brim with purchases, the holidays are also a dream for car thieves.”

Some tips that can keep you from calling the police and your insurance company include staying alert while walking to your car. Restrain from texting or digging for your keys because that could make you an easy target. Keep your car parked in well-lit areas and avoid parking near dumpsters, bushes or vans that may be good hiding spots for criminals. Use your trunk to hide purchases. Putting them in plain view makes it even easier for thieves to steal the gifts you worked so hard to find.

If you’re planning a marathon shopping trip you may also want to consider moving your car. A crook could be watching as you take a load to your car and then return to the mall for another round of purchases. Law enforcement officials also say it’s important to give up the car if you are threatened by a carjacker. Your life is more important and it will definitely give you another thing to be thankful for this season.

Millions of people will hit the road for Thanksgiving weekend. It’s one of the busiest travel times of the year. While you may be insured properly most drivers don’t like the thought of actually having to use that insurance– especially due to the fault of a distracted driver. Most of us probably feel like distracted drivers are all around us on the road. We’ve seen people texting and checking emails, chatting on the phone and even putting on makeup. But a new study reveals that those in the lane next to you are increasingly distracted.

If you’re driving in the Greater Portland area a new study found that one in three drivers are likely breaking the law by using a cell phone without a hands-free device. One in four are texting and emailing while driving. That’s according to a survey from PEMCO Insurance which also found that Portland-area drivers are upset about sharing the road with these potentially dangerous drivers. “Distracted-driving laws are becoming common across the U.S., and for good reason,” said PEMCO spokesperson Jon Osterberg in a news release. “Distracted driving is dangerous, and while our poll results show that most drivers agree, we need to raise awareness to help lower the number of drivers who are focused on their phones rather than on the road.”

Of those polled, 31 percent say they’ve used their cell phones without a hands-free device and 26 percent say they’ve  used their phones to text or email while driving. But 42 percent say that texting violations should warrant a $142 fine and another 55 percent believe that offense should go on a driver’s record. Probably not surprising, drivers under 35 years old are more likely to say the fine is too hefty.

State Farm Insurance is launching new educational tools for parents and teens so everyone can learn safer driving. The free tools are available for everyone, not just State Farm customers, through the website http://teendriving.statefarm.com/. Many parents dread the day that their child begins to learn how to drive. But according to experts, parents have the greatest influence on safe teen driving behavior.

However on a third of teens rate their parents as a “very good” driving instructor. Three in five parents admit to being nervous about teaching their child to drive. State Farm hopes the new online resource will help make it easier and more educational for everyone. “These online tools are the latest in State Farm’s $20 million commitment to reducing teen driving related crashes and deaths,” said Laurette Stiles, Vice President – Strategic Resources at State Farm. “It’s our privilege to make them accessible to everyone, at no charge, as part of our efforts to help teens drive more safely.”

On the website you can check out Road Trips. It’s an interactive, web-based tool so parents can build practice drives, log progress and communicate more effectively with their teen. Parents will receive tip sheets on important driving skills as well as three minute lessons on the best way to teach these skills. Another tool on the website is called Road Aware. Research shows that 43 percent of crashes caused by teens are due to the young driver’s inability to anticipate and adjust to hazards. This program will help them to locate the potential for danger or risk.

He’s an auto insurance company’s dream customer. He’s driven millions of miles and had no preventable accidents. Most drivers could probably learn a thing or two from Rickey Oliver, a Brookhaven, Mississippi-based professional truck driver for Wal-Mart Transportation. Since Rickey has spent 27 years behind the wheel, traveling 3.5 million miles he was just named the American Trucking Associations’ 2011 National Truck Driver of the Year.

It’s considered the highest honor of professional truck drivers. “Rickey Oliver embodies the professional truck driver who delivers America’s goods safely and efficiently everyday,” said ATA President and CEO Bill Graves in a news release.  ”His passion for educating the public about safe driving and his commitment to his community are remarkable.  We are proud to have Rickey represent the industry as National Driver of the Year.”

Rickey isn’t just a truck driver, but he’s an advocate for safety. He has been an active Trucker Buddy, Career Day presenter and volunteers through Wal-Mart’s Foundation. Rickey is also an active member of the Honor Roll Driver Education Program which helps provide safe driving education throughout Louisiana and Mississippi. “Rickey is an incredible resource for the trucking industry,” said Mississippi Trucking Association President David Roberts. “We are glad to have him representing professional truck drivers here in Mississippi and around the nation. I congratulate Rickey for receiving this award and thank him for his tireless efforts on behalf of the trucking industry.”

Flooding has devastated many parts of the US over the past weeks and months. That’s why AAA is warning car buyers on the risks of purchasing a flood-damaged vehicle. According to AAA, following Hurricane Katrina in 2005, there were cars damaged by floods shipped throughout the US that were sold as both new and used cars.

Buying these cars can create risks. Many buyers unknowingly purchase a flood damaged car, according to AAA. “Depending on the vehicle make, model and age, the cost of a thorough cleaning and drying may exceed the car’s value,” said John Nielsen, director, AAA Auto Repair in a news release.  ”In many cases, insurance companies ‘total’ flood-damaged vehicles that are then sold to salvage companies. However, rather than being disassembled for parts, some of these vehicles end up being purchased by individuals who bring varying levels of expertise to the restoration process.”

If a car has been submerged in flood waters, more repairs may be needed than just a good cleaning. Some of the inner-workings of the car are very hard to dry out and can lead to a quicker deterioration. It may work properly after the flood, but it won’t hold up over time according to AAA experts. The electrical systems of a car can run into corrosion or oxidation that reveals itself months after the flood. According to AAA you can obtain a CARFAX Vehicle History Report which may reveal the car’s involvement in a flood. You can also use your sense of smell– detecting dampness is important. Look for signs of water stains or mud in odd places such as under the dashboard. Finally, you’ll want to have the car inspected thoroughly before purchase.

Hurricane season is here which means it’s a possibility that hurricanes and tropical storms could leave trails of destruction along coastlines. The Global Alert Network wants to help Gulf Coast residents with a tool that will provide them with real-time local weather, traffic and emergency updates that will help them prepare for these storms.

The free mobile app uses GPS to recognize the user’s location, sending breaking alerts to them instantly. The free app is already available in AppWorld and the Android Market. “Natural disasters, from hurricanes to tornadoes, have been particularly harsh throughout the country this year and the best way to mitigate the damage of these storms is to prepare. The free app gives users the peace of mind of knowing that if severe weather is headed toward them, they will automatically be alerted and can immediately take action,” said Scott Hughes, President of Global Alert Network. “Within minutes of downloading the GAN app, users have a free, potentially life saving tool at their fingertips. Especially during seasons with devastating weather and in the regions that often get hit, there is no reason why residents should not be downloading this application.”

Getting proper insurance is another way you can prepare for a natural disaster. But a recent Harris interactive poll found that only 56% of Americans say they’re prepared for a disaster. Two in five Americans say they’re not prepared for a long term power outage. Here are some regional concerns according to this recent poll:

• Easterners think that a snow and/or ice storm will be most likely to directly impact them (77%) and while Midwesterners are concerned about this as well (79%), an even greater number say they believe tornadoes will impact them (89%);
• Southerners are also concerned about tornadoes (66%) yet half say they are concerned about hurricanes (54%) or droughts (50%);
• Those in the West believe earthquakes will impact them (66%), which is a concern shared by very few in all other regions (between 7% and 16%);
• Although only 11% of Americans think a nuclear power plant disaster or meltdown will affect them directly, it is the only issue listed that most people say the federal government is worst equipped to handle (59%).  One third say the government is worst equipped to handle terrorism (34%), which is down from the 48% who said this in 2006; and,
• In 2006, shortly after Hurricane Katrina, half of Americans (50%) said that the federal government was worst equipped to handle hurricanes.  Five years later just 16% believe this.

How does free car insurance sound? That’s what General Motors is offering up in a new marketing push to help sell new cars. If you live in the states of Washington and Oregon and you purchase a new GM car you may qualify for a year’s worth of free car insurance from MetLife Auto and Home. “We want to give residents of Oregon and Washington another reason to discover Chevrolet, Buick, GMC and Cadillac vehicles,” said Chris Perry, U.S. vice president of General Motors Marketing, according to The Car Connection.

The free insurance deal runs through September 6 and includes both liability and physical damage coverage. It exceeds minimum requirements set by Oregon and Washington. If you’re wondering why those two states were selected for the free insurance promotion, officials say it’s because those states are falling behind others in market share. But it may move to other states if it proves successful.

GM reports an 11% increase in sales so far this year compared to last. Retail sales are up 16%. Those numbers do not account for corporate fleets. Officials hope by offering free insurance, more people will feel comfortable buying a new car since the financial burden will be lower.

A new study found that nearly one in five drivers can’t meet basic requirements to get a driver’s license. That means that 36.9 million American drivers would not pass the written test if they had to take it today. The study, called the GMAC Insurance National Drivers Test, found that Kansas drivers got the best scores and Washington DC drivers scored the worst. “The GMAC Insurance National Drivers Test has become the benchmark for America’s driving IQ,” said Scott Eckman, chief marketing officer, GMAC Insurance. “All drivers need a refresher course when it comes to rules of the road and it begins with education. We’re hoping this year’s GMAC Insurance National Drivers Test results will inspire drivers to arm themselves with the knowledge they need to stay safe.”

The average score did increase this year to 77.9 percent, up from 76.2 percent in 2010. But that’s still very low and shows that many people on the road don’t have basic knowledge of the rules. Amazingly, 85 percent of those surveyed could not identify the correct action to take when approaching a steady yellow traffic light. Only about a fourth could identify correct following distances.

The goal of the test is to remind drivers to stay informed about the rules of the road. It marked the seventh annual survey, polling drivers from 16-65 in all states and the District of Columbia. Here are some of the interesting highlights uncovered by the test:

• Males are better drivers? One in 4 women failed the test, which was about double the percentage of men. Overall, males out-performed females with an average score of 80.2 percent versus 74.1 percent for females.
• Northeast is worst driving region. You may think your city’s drivers are the worst, but with average scoring at 74.9 percent the Northeast came out the worst. Midwest is the best driving region with average scoring at 77.5 percent.
• The older the wiser. Despite popular belief, the oldest drivers tested, ages 60-65, continued to have the highest average test scores at 80.3 percent.
• Be careful in the Empire State and Beltway. One out of 3 (34 percent) of all drivers in New York and Washington, D.C. failed the test. Wyoming residents passed the test most with only one out of 20 failing.
• Biggest gains and losses: There were some shake ups in the test this year. After ranking 24th place in 2010, Colorado moves to third place with an 82 percent average score. Alaska plummeted 30 spots from tenth place in 2010 to 40th place this year. Their average test score decreased from a 79.8 percent average to a 76 percent average.

Insurance provider Allstate is hoping to bring more awareness to motorcyclists on the road. Twenty-five cities will get new traffic signs alerting drivers that riders may also be sharing the road with them. Intersections in 25 major metropolitan areas will get the new signs. The insurance company says an average of three motorcyclists are killed every day in US intersections. They are most likely to happen in intersections than anywhere else.

The cautionary signs are diamond-shaped, yellow and feature a motorcycle silhouette with the word “LOOK.” The signs are part of Allstate’s “Once is Never Enough” program created to increase awareness of motorcycle collisions. The idea is that looking once at an intersection is never enough. “In the time it takes to blink an eye, a life could be saved,” said Keith Rutman, vice president of Allstate’s consumer household unit in a news release. “Taking one extra second at an intersection to look left, right – and left again – for motorcyclists can help make our roads safer.”

Allstate advises drivers and riders to share the road safely by looking left, right and left again. They also say it’s important to be cautious through intersections since one-third of motorcycle accidents happen in these locations. Drivers should also create a larger following distance because motorcycles do not activate their break lights when slowing down.

Home and auto insurance company Allstate is buying Esurance as well as Answer Financial for about $1 billion. Allstate told USA TODAY that the purchase will give customers more options among insurance carriers. Esurance sells auto insurance online and through call centers while Answer Financial is an independent personal insurance agency, according to USA TODAY.

Esurance sells auto insurance directly to customers online and through call centers. Answer Financial is an independent personal insurance agency. “Consumers today expect to have their specific needs met by their insurance companies. Our strategy is to focus on individual preferences and utilize different value propositions for distinct consumer segments,” Allstate President, Chairman and CEO Thomas J. Wilson said in a news release.

Esurance is the third-largest provider of online auto insurance quotes. It also has a 24/7 call center and is the third most recognized brand for online auto insurance sales. “Our Allstate agencies do an outstanding job of serving customers who want a local personal touch and prefer to purchase a branded product. Esurance will expand our ability to service customers that are more self-directed but still prefer a branded product,” says Wilson.

Tornadoes in the Carolinas and fires in Texas are making for a busy time for insurance companies. In Texas, Nationwide Mutual Insurance Co and Allied Insurance have representatives and agents ready to assist customers with damage claims due to wildfires or hailstorms that have recently impacted the state.

According to the companies, the Nationwide claims hotline is 1.800.421.3535. That number will help policyholders reach their local agent. Allied Insurance customers are asked to call the Allied claims hotline at 1.800.282.1446. “Right now our claims numbers are moderate, but we expect them to increase as customers have an opportunity to assess the damage caused by the wildfires burning in the Dallas/Fort Worth area as well as the recent severe hailstorms,” said Terrance Williams, regional vice president of Nationwide’s Central Plains Region, in a news release. “We’ve taken steps to ensure a quick response to customers who report claims from these events.”

In the south where tornadoes ripped through last Saturday, adjusters have descended on the area to collect claims. As of Wednesday morning State Farm Mutual Automobile Insurance Co had received about 400 claims from Virginia homeowners and 2300 in North Carolina, according to The Virginia Pilot. A State Farm spokesman told the newspaper that most of the Virgina claims had come from Gloucester County where a storm stripped an 8 1/2 mile path of homes and businesses. “We do expect both of those numbers to increase as people get power and get themselves collected,” spokeswoman Amy Preddy told the newspaper. “Most of them are homeowners claims due to wind damage, falling trees. But we have seen some auto claims resulting from hail damage.”

A new report from the National Insurance Crime Bureau, NICB, shows a big jump in questionable claims in New York. With 145 questionable claims, the city of Buffalo came in second behind New York City which had 4,016 questionable claims. New York City held57% of the statewide total of questionable claims. In all, 7,026 questionable claims were filed across the state of New York in 2010. That’s up from 6,378 in 2008.

So how does an insurance claim become “questionable?” Authorities say there are seven reasons, but most are because they were “faked/exaggerated injury”. Other reasons include “excessive treatment” and “staged/caused accident.” According to reports, most of the questionable claims come from automobile insurance policies. In fact 83% of questionable claims in 201 involved auto insurance.

Allstate responded to the report. Krista Conte, New York spokesperson for Allstate said, “We commend the NICB on their efforts to fight fraud and raise awareness about this issue, which is extremely important to all New Yorkers. Not only is no-fault fraud, or auto accident fraud, costing New York consumers and insurers hundreds of millions of dollars, it puts drivers at risk. Those who would commit this type of crime are taking advantage of the broken no-fault system and are organized, calculating and part of a big business. They are gaming the auto insurance system and the victims are honest, hard working New Yorkers.”

North Carolina has the honor of having some of the lowest auto insurance rates in the country. But that could change if industry-backed legislation passes. According to Bloomberg Businessweek, North Carolina’s top insurance regulator says the move would increase rates by up to 15 percent a year and cause problems with the state regulatory system.  “The bottom line here is this: insurance companies want more of your money. These proposals would no doubt lead to higher car insurance rates,” Insurance Commissioner Wayne Goodwin said at a news conference according to Bloomberg Businessweek.

The report sites Insure.com’s findings that a 40-year-old single male driver who commutes 12 miles to work in North Carolina would pay $1,154 a year, compared to $1,561 as a national average. That makes North Carolina the seventh lowest in the country for auto insurance. So why are the state’s rates so low? Officials say it’s because the state’s insurance commissioner can currently limit auto insurance rates. “Really the best regulator of price is competition,” said David Stoller, a lobbyist for State Farm Mutual Automobile Insurance Co, according to Bloomberg Businessweek. “That’s why companies advertise, they want to compete on rates.”

The 175 auto insurance companies with customers in North Carolina are required to propose a common increase or decrease to rates which is reviewed by staff in the insurance department. Under new proposed legislation, auto insurance companies could raise their rates by up to 15 percent without approval from the insurance department. Companies would also be able to consider a customer’s credit score when setting their rate.

Mississippi governor Haley Barbour vetoed a bill that would have set up a state-run verification system to identify and ticket uninsured motorists. According to 2009 research from the Insurance Research Council, Mississippi’s uninsured-driver rates are among the highest in the nation. The IRC estimated that in 2007 28 percent of Mississippi’s drivers didn’t have coverage.

According to a news release, Gov. Barbour says he’s open to an amended version of the legislation because he does not oppose the concept of a verification. “Once the language in the bill is cleaned up, these agencies will be able to develop a workable system to verify motor vehicle liability insurance coverage of the vehicles on the highway. Toward that end, I am amenable to including this in the next special session,” Barbour told Insurance Journal.

The verification system would be a statewide database that contains insurance policy information from insurers. It would be matched up with registration information so that law enforcement officers could get the information quickly in the field. Gov. Barbour told reporters that he needs more information about the cost of the system and the new requirements by the Department of Public Safety.

A new study says that Americans took on more risk during recent years as a way to reduce car insurance costs. Quality Planning conducted the study and found an increase in the number of people who opted not to purchase collision and comprehensive insurance between 2006 and 2010. They saw even higher jumps with older vehicles.

Between 2006 and 2010 Americans spent an average of $721 to insure each vehicle. During those years, the average insurance cost for a new vehicle was $913 and older vehicles cost $528 on average to insure. The study revealed that most owners were willing to pay for complete coverage for new vehicles.

But when it came to older vehicles, consumers were more likely to take a gamble and reduce insurance coverage. The number of older vehicles without collision or comprehensive coverage increased from 53% to 63% according to a news release issued by Quality Planning. This reduction in coverage saved consumers about $19 a month, or $229 each year.

Consumers also increasingly adjusted their collision coverage deductible since higher deductibles cost less. From 2006 to 2009 the percentage of vehicles with low collision coverage deductibles (less than $250) dropped by an average annual rate of 9%. Those with higher deductibles (from $251 to $1000) increased by as much as 4.9% a year.

More than one-third of complaints taken in by the National Association of Insurance Commissioners or NAIC deal with auto insurance, according to a report by the San Francisco Chronicle. Data collected over the past three years shows that accident and health coverage gets the most complaints and makes up about 40 percent of the total number of grievances.

If you’ve got an issue, it’s a good idea to take it to the top. According to California Insurance Commissioner Dave Jones, the California Department of Insurance has recovered $63.8 million in 2010 for consumers who complained about conduct of insurance companies. “Our goal at the Department of Insurance is to be the best consumer protection agency in the nation,” Commissioner Jones said in a news release. “I’m proud to announce that our hard work has led to us recovering more than $63 million for consumers for calendar year 2010. Through our consumer complaint services and our market conduct exams, we will continue to be responsive to the needs of consumers and proactive in looking for any and all activities that hurt policyholders.”

In California, complaints come in through calls to the hotline. Typically there are 200,000 annual calls in to the (800) 927-HELP line. The Claims Services and Rating and Underwriting Services bureaus are the ones who investigate and resolve claims for consumers. The Consumer Services Division recovered close to $90 million in 2009. About one-fifth of that came from resolving issues with the wildfires of 2007 and 2008. Officials say resolving those types of claims can take more than a year because of the complexity of the issues.

According to the San Francisco Chronicle, regulators are necessary for acting as a mediator between the insurance providers and the policyholders. Consumers who feel that they aren’t being treated properly or haven’t received adequate coverage can report their complaints to their state regulation departments as a way to try for recourse. Some of the biggest sources of complaints are settlement disputes, claims denials and rating issues. Consumers also complain when settlement sizes are too low or there were delays with service.

This week Progressive Corp started a national advertising campaign for its Snapshot program, a pay-as-you drive initiative that already is running in more than 30 states. “It truly is a new way for many people to be able to potentially get a big discount,”  said Richard Hutchinson, general manager of usage-based insurance at Progressive, in a news release.

The way Snapshot works is that a small device is plugged into a diagnostic port in your car. The device tracks things like mileage, braking, speed and the time of day in which the car is being used. That data is sent back to the company. Once analyzed, Progressive will let the customer know if they are eligible for a discount based on their driving habits. “What we’re really trying to measure here is what we consider to be a few important factors that are tied to the propensity to have an accident,” Hutchinson said in a news release. It’s completely voluntary and only provides discounts– rates will not be increased.

So far the program seems to be working as a way for customers to save money. And one out of four consumers who are offered to enroll in the program do so. The company plans to expand the program to all states. It’s part of more than ten years of research and planning that started with a pioneer program back in 1998. Last year it launched in Minnesota and has been expanding since.

Progressive is a pioneer in usage-based insurance. Its program goes back to 1998, when the company launched a pilot program in Texas with a few hundred devices, Hutchinson said. The technology used back then has been improved, he said, and Snapshot launched on a broad basis in Minnesota early last year. Some people are concerned about privacy but Hutchinson says that location-tracking is removed and makes people more comfortable.

Increasingly people seem to be turning to the web for their auto insurance needs. According to a report by Insurance Journal, new auto insurance sites are gaining momentum and taking some of the business from dominating companies like GEICO and Progressive.

A new report from comScore.com found that during the fourth quarter of 2010, these new sites took in 724,000 quotes which is about 8% of all quotes submitted online. “The online auto insurance market has been dominated by only a handful of insurers over the past few years, with GEICO and Progressive comprising over 50 percent of all quotes submitted online,” said comScore director Susan Kleinman to the Insurance Journal. “But as more consumers look to the Internet to shop for insurance policies, there is an opportunity for more insurers to break into the online market.”

Many of these new sites saw triple digit gains in business. One of the most notable was USAA.com which had 6.5 million visitors. The next highest traffic was given to American Family who had 1.3 million visitors and in third was Mercury Insurance who welcomed 686,000 visitors. This report only looked at websites that are new to the market and did not include those who have been around for a while including allstate.com, esurance.com and geico.com.

Individual insurers are not the only ones seeing an increase in business. Insurance aggregators are online lead generators and have also been experiencing growth. The report shows that they received 6.8 million unique visitors to their sites during the last quarter of 2010. This may show that consumers are looking for new ways and sources to buy auto insurance. Perhaps they’re looking for better prices and a better product.

Insurance companies say they charge up to 50% less for premiums on female drivers because they have a lower risk of accidents and issues, according to a report by CNN. However male drivers under the age of 29 pay more because studies show they crash six times more often then women. But now a new ruling could ban risk assessment based on gender in Europe.

Fourteen countries are included in the ruling including Italy, Spain, Germany and the UK. The ruling would not allow insurance companies to use life expectancies or studies on men verses women. The ruling also impacts annuities which offer payments to people, usually in retirement. Annuities are typically lower for men because they  have a lower life expectancy, according to CNN.

According to these judges, starting next year prices can not be adjusted for these purposes. According to CNN, the judgment said: “Taking the gender of the insured individual into account as a risk factor in insurance contracts constitutes discrimination. The rule of unisex premiums and benefits will apply with effect from 21 December 2012.” The judges referred to the Charter of Fundamental Rights which eliminates inequalities and promotes equality between men and women.

There are plenty of people who disagree with the judge’s decision. Some believe it will mean that a 17-year-old female driver will pay an extra $7,000 by the time she turns 26. “The decision of the judges not to recognise that gender is a legitimate factor in insurance pricing and that insurance pricing is based on a fair risk assessment process could be bad news for insurance customers,” Michaela Koller, CEA director general, said to CNN in a statement. “This ruling has pushed anti-discrimination legislation beyond the realms of all common sense,” research director Stephen Booth told CNN. “Unaccountable EU judges have ruled to overturn long-held national rules and increased costs for consumers in the process. To do so in the name of equality just adds insult to injury.”

Others supported the move saying it was finally removing inequality. “For far too long the unfair tag of ‘boy racer’ has been attributed to every young chap who passes his driving test with extortionate premiums being charged as a result,” Nick Soldinger of Nuts magazine, a publication for young men, told CNN. “Yes, young women may be statistically less likely to have an accident but surely it is unjust to penalise the majority for the actions of a few. With the economic downturn hitting young people harder than any other section of the population, it can only be a good thing if these premiums are lowered so that we, the young men of Britain, have parity with our sisters out there on the road.”

The Insurance Institute for Highway Safety says new crash tests prove the need for the federal government to require stronger guards on tractor-trailers. Even low-speed crashes can have deadly consequences according to the Insurance Institute for Highway Safety.

Officials believe that requiring rear guards would reduce deaths and injuries when a passenger vehicle crashes into the back of a tractor trailer. According to a news release issued by the Insurance Institute for Highway Safety, in 2009, 70% of the 3,163 people who died in large truck crashes were occupants of cars or passenger vehicles. “Cars’ front-end structures are designed to manage a tremendous amount of crash energy in a way that minimizes injuries for their occupants,” Adrian Lund, Institute president, said in a news release. “Hitting the back of a large truck is a game changer. You might be riding in a vehicle that earns top marks in frontal crash tests, but if the truck’s underride guard fails — or isn’t there at all — your chances of walking away from even a relatively low-speed crash aren’t good.”

According to estimates from the National Highway Traffic Safety Administration, 423 people in passenger vehicles die every year when their vehicles hit the backs of large trucks. More than 5,000 are injured according to research. New tests used a highly-rated Chevrolet Malibu to investigate accidents involving parked trailers. In three of the crash tests the heads of the dummies made contact with the trailer or the car’s hood. “The aim was to see if some underride guards perform better than others and to identify what crash speeds and configurations produce different types of failure,” Lund said in a news release. “Damage to the cars in some of these tests was so devastating that it’s hard to watch the footage without wincing. If these had been real-world crashes there would be no survivors.”

Don’t be surprised if your car salesman tries to sell you insurance, too. Car dealerships and auto manufacturers could see a major boost in revenue when they sell insurance products to car buyers. A new study from Finaccord, a financial market research group, found that when auto dealerships and manufacturers sell things like auto insurance, extended warranties, GAP insurance and roadside assistance, they can experience a profit increase.

“Across 26 countries, dealers sold policies to consumers worth an estimated at €16.8 billion [$22.8 billion] in revenue in 2010, which is the equivalent of 4.6 percent of the underlying value of the new and used cars that they sold to retail customers, across six financial services,”  the report showed according to Insurance Journal. “Insurance, warranty and assistance services are especially valuable to the automotive trade because policies last for more than one year, and in the case of motor insurance can be renewed as long as the customer owns the car,” Finaccord consultant David Parry commented to Insurance Journal. “This helps to smooth out the peaks and troughs in car sales themselves. Because most policies are multi-year or get renewed, 70 percent of this revenue came from policies in force at the start of 2010, while the remaining 30 percent came from policies sold in 2010 itself.”

In countries like Russia, selling this products have resulted in billions worth of premiums sold. In Germany figures are even higher according to the report. Finaccord says that about $1.6 billion of gross premiums came about through the auto industry. “Insurance, assistance and warranty products are very important to manufacturers and importers as well as car dealers,” Parry told Insurance Journal. “Dealers often use the official partner of their manufacturer brands only for these financial services, whereas they may have one or two independent providers for finance and leasing contracts as well. Because there is less competition through this channel, dealers, manufacturers and importers can benefit from higher margins, which can be essential when the car market itself is so highly competitive.”

Drivers who live in expensive parts of New York like New York City and Buffalo are trying to save money on auto insurance by registering their vehicles out of state. But now lawmakers want to crack down on that. They call it “rate evasion” and according to TimesUnion.com, Senator Diane Savino calls it “an illegal and costly scam that reaches all corners of this state.”

Estimates show that rate evasion could cost New York state alone at least $1 million annually. It’s money they would have earned from registration fees and other costs. Last year there were $73 million in unpaid parking and traffic tickets in New York City from out-of-state vehicles. “This is an issue that is impacting people who do the right thing,” Sen. Jeff Klein told TimesUnion.com.

According to some auto insurance companies, this scam has become more common. They’ve seen a 50% jump in these cases since 2009. The reason it’s becoming more common is because insurance is expensive in New York. It’s the fourth most expensive state behind New Jersey, DC and Louisiana. Right now technology does not put states on the same page or make tracking down drivers easy. In fact New Jersey charges $12 to find a driver’s name and address.

Red light cameras got the green light from the Insurance Institute for Highway Safety after the release of a new study. The study found that the red light cameras saved 159 lives between 2004-2008 in 14 of the country’s biggest cities. The study determined that red light cameras operating in all large cities would have prevented an additional 815 deaths. “The cities that have the courage to use red light cameras despite the political backlash are saving lives,” Institute president Adrian Lund said in a news release.

Researchers compared cities with red light camera programs to those without them. They discovered that the 14 cities that had red light camera programs between the years of 2004 and 2008 had a 35% lower crash rate. They believe that red light cameras reduce fatal red light running crashes as well as other fatal intersection crashes. This is partly because drivers may be more cautious when there are cameras around.

More communities are using red light cameras to police intersections. In 2000 there were just 25 cities with the technology in place. Now there are about 500. Some say the cameras don’t boost safety, but the do increase income for municipalities. “Somehow, the people who get tickets because they have broken the law have been cast as the victims,” Lund said in the release. “We rarely hear about the real victims — the people who are killed or injured by these lawbreakers.” In 2009 along, 676 people were killed by red light running and another 113,000 were injured. And more times than not, the people who died were not the ones running the red light. They were drivers, passengers, bicyclists or pedestrians with the right of way.

The biggest drop in fatal crashes at red lights was recorded in Chandler, Arizona. These deaths dropped by 79% after red light cameras were installed. However, in two cities, fatalities actually increased. “We don’t know exactly why the data from Raleigh and Bakersfield didn’t line up with what we found elsewhere,” Anne McCartt, Institute senior vice president for research and a co-author of the study said in a release. “Both cities have expanded geographically over the past two decades, and that probably has a lot to do with it.”

Overall, researchers hope the study proves the importance of red light cameras and that they really can make our roads safer. “Examining a large group of cities over several years allowed us to take a close look at the most serious crashes, the ones that claim people’s lives,” McCartt said in the news release. “Our analysis shows that red light cameras are making intersections safer.”

According to new research, insurance prices vary drastically between drivers with a good driving record and those with a tarnished one. The cost difference can be as much as $3,000 a year depending on which auto insurance company you’re using. A Chicago-based insurance resource company did the research to find out how much a bad driving record will really cost you.

The company says they created three driver profiles using made up people. All of them were 21-years-old, driving 2009 Mustangs and living in Palatine, Illinois. Each of the fictitious drivers had the same five to six year history. The only difference between them was their driving record. “Everything else about the drivers’ profiles was as identical as possible using the various online applications of six major auto insurance companies,” David Thompson, President and CEO of E-Insure Services, said in a news release. “Good Driver had no moving violations and no accidents, Bad Driver reported a couple of accidents, and Drunk Driver had a DUI conviction.”

The best driver of the bunch was able to get insurance rates as low as about $90 a month. The bad driver received quotes ranging from $166.22 to $238.05. And finally, a drunk driver was given a wide range of quotes. “One carrier wouldn’t insure Drunk Driver at all. Another wanted $347.86 per month. And a third gave Drunk Driver the low quote of $95 a month, almost as low as Good Driver’s lowest car insurance quote ,” said Thompson in the news release.

Even the company conducting the research says the broad range in quotes is surprising. “Car insurance companies look at a number of factors besides driving records to determine premiums. The miles you drive, your vehicle and its safety rating, even your credit score come into play. That’s why it really pays to get at least three competitive auto insurance quotes before you commit,” said Thompson in the news release. Thompson says most drivers can expect to pay about six percent more this year for author insurance compared to last year.

In order to save money, experts say it’s important to take advantage of anti-theft discounts, multi-car policies, and enlisting the same company for multiple insurance products. Thompson offered up other options for cutting costs, “Pay annually instead of monthly. Pay online at the insurer’s website. You should also review your auto insurance at least once a year and review your coverage options.”

Seven insurance companies have filed lawsuits against Toyota Motor Corp. According to various news outlets, the companies are looking to get back some of the money they paid out in crashes they say were caused by sudden acceleration. According to the LA Times, the seven companies involved in the lawsuit are:

* American Automobile Insurance Co.

* Fireman’s Fund Insurance

* National Surety Corp.

* Ameriprise Insurance

* IDS Property Casualty Insurance

* Motorists Mutual Insurance

* American Hardware Mutual Insurance

The companies are looking to be refunded more than $230,000 for 14 crashes that happened across the US. The insurance companies say Toyota did not install an override system in its cars that would cancel out the sudden acceleration system. If installed, an override system would have pushed the car into an idle when the brake and gas were engaged at the same time. The insurance companies say there were 725 crashes caused by sudden acceleration.

Toyota says the claims are false and their product is not faulty. “We look forward to the time when they are compelled to specify exactly what is defective, backed up by scientifically reliable proof rather than speculation,” Toyota spokesman Mike Michels told the LA Times.

Turns out thieves don’t take holidays off. No matter what you do this New Year’s, make sure locking up your car is one of them. The National Insurance Crime Bureau (NICB) says that January 1 is the most popular day of the year for auto theft in the US. The organization compared 11 holidays and found that New Year’s Day had the privilege of being the busiest day for reports of car thefts. There were 2,760 of them reported in 2009 on January 1. Christmas was the slowest day for car thefts with just 1,336 reported in 2009. Here’s a list of how the 11 analyzed holidays stack up:

New Year’s Day: 2,760

Halloween: 2,325

4th of July: 2,207

Memorial Day: 2,207

President’s Day: 2,204

Labor Day: 2,202

New Year’s Eve: 2,189

Valentine’s Day: 2,090

Christmas Eve: 1,851

Thanksgiving: 1,620

Christmas Day: 1,336

There are several ways to deter thieves from targeting your car this New Year’s Day. First of all, make sure all doors are locked securely. Secondly, leave any valuables out of site. This includes tucking away your GPS, MP3 player and even spare change. Also, remember to park in well-lit areas. Don’t give thieves a reason to target your vehicle because filing a police report for a stolen vehicle is not a fun way to start off a new year.

There are millions of people across the United States who have heard about the infamous Geico Car Insurance commercials where millions of people have saved 15% or more in just 15 minutes talking with Geico. While there may or may not be some truth to it, here are a few tips that can really save you money on car insurance.

Think you’re a better driver than lots of other people out on the road? Then you may want to check out Progressive’s Snapshot program. According to the company customers can save up to 30% on car insurance according to how much, when and how they drive. Examples of people who could save through this program include those who travel often and leave their cars parked at the airport several days a week, families with an extra car that rarely gets driven or drivers who don’t slam on their breaks.

Once you sign up, Progressive will send you a device that plugs into the car’s on-board diagnostic port, a feature not typically found in older vehicles. The small device then sends driving data to Progressive. After pulling data for at least 30 days, customers will find out if their eligible for a discount which could be up to 30%. Then that discount will be applied to your policy. Those who drive less often and during safer times of the day are more likely to get a discount.

Right now the program is only available to new Virginia customers. Customers will have access to their recorded data through Progressive.com. The good news is the program will only help rates go down– not up. “More than 100,000 customers countrywide get personalized car insurance rates by sharing a picture of how, how much, and when they drive. Now, Virginia customers are just 30 days away from saving with the Snapshot program,” Richard Hutchinson, Progressive’s general manager of usage-based insurance said in a company statement.

There’s rarely such a thing as a minor fender bender when cars and SUVs collide according to a new report from the Insurance Institute for Highway Safety. Their bumpers don’t match up and that means what could have been a minor collision turns into a massive repair job for everyone involved.

In the study the Insurance Institute set up low-speed crash tests. They had SUVs and small cars collide at ten miles per hour. Seven pairs of the vehicles were used including one SUV and one small car from seven manufacturers. They drove the SUV into the back of the car at ten miles per hour and then drove the car into the back of the SUV. “We picked vehicles from the same manufacturer because we think automakers should at least pay attention to bumper compatibility across their own fleets,” Nolan said in an announcement according to CNN. “The results show many don’t.” Here’s the damage they recorded:

• When the Honda CR-V SUV rear-ended the Honda Civic a total of $2,995 worth of damage occurred.
• When the Toyotal Corolla hit a Toyota Rav 4 in the back a total of $9,867 in damage was racked up.
• They also found that the bigger vehicle didn’t always win. At times it was the SUV that came out with more damage.

Test officials say even at $3,000 the damage was higher than it should have been. “Of the seven car-SUV pairs we tested, we can’t point to a single one as a model of compatibility because combined damage estimates ran into the thousands of dollars even for the best performances,” Nolan said according to CNN.

Between books, tuition and rent, college students may not have much money leftover to pay for auto insurance. But the California Department of Insurance started a low cost insurance program specifically aimed at cash-strapped young adults, according to The Santa Monica College newspaper. The initiative began in 1999 as a pilot program in Los Angeles and San Francisco and has been expanding ever since. In 2007 the program opened up to residents of the entire state.

The idea is to give discounted insurance to students between the ages of 19 and 24 who otherwise couldn’t afford it. While any young resident may qualify, it’s typically been community college students who have benefited most, according to officials. “We try to focus on schools that are more impacted,” Rebecca Almanza of Imprenta Communications told the newspaper. Imprenta Communications is the PR firm hired to promote the program and they say that research shows Latinos, Asians and African Americans have the highest percentage of uninsured drivers.”Assuming that most other insurance carriers have overhead fees, pay their sales reps and agents percentages in California, while also assuming that people are of low income, it seems to be a great offer, particularly in the economic recession, which the US is in,” radiation therapy major Beatriz Esparaza told the Long Beach City College newspaper.   

So how can young adults take advantage of this coverage? You have to go through one of ten major insurance carriers, not the state. “The California Department of Insurance does not offer this policy or insurance,” Deputy Press Secretary Dave Althausen told the Santa Monica College newspaper. It costs less than $400 a year and in the past nine years more than 50,000 drivers have signed up. Other requirements include having your license for at least three years before applying, meeting income requirements of less than $27,075 for a single person or $36,425 for a couple and having no felony or misdemeanor convictions.

Those caught without insurance could have their license suspended or vehicle impounded. “There is no excuse for driving without insurance,” California Insurance Commissioner Steve Poizner told the newspaper. “The bottom line is that driving without insurance is irresponsible and illegal, so take advantage of this affordable program. It can be especially helpful to our college students, who may be struggling to make ends meet.”

Witnessing car accidents can be a scary event. The shock of the moment often leaves people in a panic wondering what to do, who to call or where to go. A new State Farm survey found that plenty of people are confused about their obligations and responsibilities when it comes to witnessing auto accidents.

Going Through Insurance

Roughly half of those surveyed felt that it was against the law to leave an accident unreported to an insurance company. Four in ten felt it was OK to not go through insurance.

Naming a Witness

There was also confusion over who constitutes a witness in the event of a car accident. Nearly 75% of Americans felt that they are a witness if they are within 100 feet of the accident. Two-thirds felt that being a witness means you’re not involved in the actual incident.

Saying Sorry

One third of those surveyed felt that saying “I’m sorry” would also admit fault and imply legal liability in the event of an accident.

Pulling Over

The majority of those surveyed say they would most likely stop if they saw an accident that didn’t involve them. Eighty-three percent would pull over.

State Farm now has a new website that will help answer question and make clarifications for drivers. “We found that many consumers look online seeking answers about auto insurance, but don’t have a resource, outside of the Auto Learning Center, to go to that offers independent, credible information,” stated Patty Gaumond in a news release, State Farm Assistant Vice President, Enterprise Internet Solutions. “When we designed the Auto Learning Center, we made sure to include perspective and tips from third-party experts and everyday consumers who can give visitors what they need: credible answers to their real-life questions. Auto insurance is important, yet can be a complicated topic for many people,” added Gaumond in the news release.  ”The Learning Center gives consumers access to the resources they need, when they need them, from the sources they trust the most.  We’re not trying to create insurance experts, but we do want consumers to know enough so that they can make the kinds of decisions that provide peace of mind and maximize value.”

Tickets, crashes and other automobile injuries can cost the automobile owner a large amount of money. However, you do not have to be one of the many individuals who gets stuck with a high amount of costs.

There are many individuals who are able to escape paying huge auto insurance premiums even though they have tickets, crashes and other bumps in their driving records. They just follow some of the steps that are listed below!

Your auto insurance carrier does not need to hear about a speeding ticket. Many states have the ability for individuals to pay a higher upfront fine and not have the ticket reported to the driver’s insurance company. However, if you are caught speeding again, you may have your license suspended or revoked for a period of time at the direction of the Secretary of State or Department of Motor Vehicles in your state.

Diversion programs are another option that many drivers are able to take advantage of. This means that a driver goes to a program such as traffic school or completes a paper on the dangers of speeding. It is meant to educate the driver rather than punish. Sometimes education can be a better course but the driver must first convince the court that this is true.

Crashes are one problem that many drivers face each and every year. Whether the crash is the fault of the driver, the other driver or neither party it can be difficult to avoid having your insurance costs go up. That is why so many individuals who have auto insurance would rather have the responsible party simply pay for the repairs to their vehicle. Sometimes this is possible but at other points in time it can be difficult to pay for thousands of dollars in repairs to a vehicle all at once.

There are so many different auto insurance costs that individuals can face. Paying monthly premiums are a terrible way to be spending your hard earned money. However, auto insurance is required in order to be on the road and drive without facing harassment by the police or being unable to pay for an accident. That is why so many drivers end up paying their premium each and every month.

One reason that you never want to pay for your premiums on a monthly basis is that many insurance companies will give you a discount for paying your premiums in advance. This means that if you pay quarterly, bi annually or annually you may be able to save 10% or even more off the cost of your insurance bill. Why not save money if you can!

Auto insurance does not have to be a huge cost to you any more. Follow the tips mentioned above and recover as much of your money as you can. Finally, do not think that you are the only one having to deal with these terrible problems. There are others out there who are willing to help you with your huge auto insurance costs!

Talking to elderly parents about their driving can be very difficult. Liberty Mutual Insurance, the eight largest auto and home insurer in the US, knows that well. That’s why they developed The National Conversation Drive. The program is on display at Grand Central Terminal in New York City as a way to help Americans talk to elderly family members about their driving habits. Part of the display included a “senior simulator” movement-restricting suit as well as visually-impairing eyewear which allowed people to understand what’s it like to be a senior behind the wheel.

Organizers are hoping others are motivated to talk to their aging parents about safe driving.”Talking to your elderly parents about driving safety can be very difficult.  But in fact, most seniors expect their adult children to have these conversations with them,” said Dave Melton of Liberty Mutual in a news release.  ”The National Conversation Drive  encourages families to have those discussions about safe senior driving – or to at least pledge to have those talks – and we also give them the resources they need to make such conversations easier ones to have.  Ultimately, this initiative is about helping to preserve seniors’ mobility, whether by modifying driving habits, or by finding alternative, cost-effective means of transportation.”

And making the pledge not only helps keep roads safer but it assists elderly seniors. Liberty Mutual agreed to donate the cost of a free ride for seniors through ITNAmerica, a non-profit transportation network for aging Americans. “The National Conversation Drive gives adult children and people of all ages the proper resources with which to talk to their elderly parents about driving safety and alternatives to mobility,” said Dr. Vicki Rosebrook, executive director of the Macklin Intergenerational Institute in a news release. The orgnaization specializes in fostering awareness and acceptance among the generations.  ”When it comes to having these critically important talks, there is nothing like having context – and there is no better context than to experience first-hand the challenges faced by our aging population on the road.”

Want to pay less for car insurance? Just ask, says US News and World Report. While there’s nothing new about car insurance discounts, many people still forget to ask about them. According to US News and World Report, here are the top six insurance discounts that you may want to inquire about.

1. Multi-Policy and Multi-Vehicle Discounts. Do you purchase many of your insurance products from the same place? You should be rewarded for that. Same goes with car insurance when you have multiple vehicles insured at one company.

2. Low-Mileage Discounts. Not all providers offer this according to US News and World Report, but you should definitely ask. You can save up to 40 percent they say.

3. Good Driver Discounts. It doesn’t seem right that accident prone drivers pay the same as cautious ones. Some insurance companies will reward you for your good record.

4. Vehicle Safety Features. Things like a car alarm, anti-lock brakes and airbags can all add up to savings. Be sure to let your insurance company know if you have these features.

5. Affinity Groups. Your HR department or an organization you belong to may be the source of more insurance savings. Ask around to see if your group affiliations can lead to discounts.

6. Hybrid Cars. These fuel-efficient cars are also good for saving money on insurance, according to US News and World Report.

It’s not that shiny new Lexus that thieves like. It’s that 16-year-old Honda they prefer. That’s according to a list of the most frequently stolen cars compiled by the National Insurance Crime Bureau. The non-profit’s spokesman says he’s not surprised that thieves like the Honda Accord most. “It’s a good car,” Frank Scafidi told MSN. “They sold a lot of them and they stay on the road for a long time. The people who own them tend to take care of them, so that creates a demand for parts. That’s why the thieves like them so much — it’s easy to sell their parts.”

The average age of the cars on the list is 12 years. The oldest? A 1991 Toyota Camry. The newest? The 2009 Toyota Corolla. So why are older cars often a good target for crooks? For one, they’re easier to steal, experts say. Manufacturers didn’t include as many theft deterrents as they do now. Also, they’re less likely to  have added features like tracking and disabling devices.

Scafidi told MSN that many drivers tend to drop comprehensive auto insurance when their cars get older, which he says isn’t necessarily a good idea. Comprehensive insurance will give you the value of the car if it’s stolen so if a thief gets it, you’re left with nothing if you don’t have comprehensive insurance. On a positive note, the report says car theft is down. “Most thieves are just people who want to get from one side of town to the other and can’t figure out the bus schedule,” he told MSN. “They’re looking for cars that have the keys left in them, are parked in a dark place or have been left running while the owner ran inside to get a cup of coffee.”

Here’s the NICB’s list of the most stolen vehicles of 2009:

1. 1994 Honda Accord
2. 1995 Honda Civic
3. 1991 Toyota Camry
4. 1997 Ford F-150 Pickup
5. 2004 Dodge Ram Pickup
6. 2000 Dodge Caravan
7. 1994 Chevrolet Pickup (Full Size)
8. 1994 Acura Integra
9. 2002 Ford Explorer
10. 2009 Toyota Corolla

An insurance executive is now on suspension after being charged with a DUI for driving under the influence. Louis Lower, who’s been at the head of Horace Mann Educators, Corp since 2000, received a 60-day sentence last week according to the Wall Street Journal. Lower received a misdemeanor count of driving under the influence and causing property damage or personal injury, according to records uncovered by The Wall Street Journal.

Horace Mann sells car, home and life insurance policies to primary and secondary school teachers. The company’s board members called a meeting once they were alerted to the charges. The crash happened in Vero Beach, Florida and Lower is scheduled to be released from jail on October 26, the Wall Street Journal reports.

The executive is expected to return to his job in late fall. Meanwhile, Chief Financial Officer Peter Heckman will serve as interim chief executive. “There are no excuses to offer other than a lapse of personal character for which I take full responsibility,” Mr. Lower said in a statement released Monday, according to The Wall Street Journal.

Auto insurance company GEICO unveiled plans to expand their technology reach with apps for the iPad and Android. The GloveBox app will add more features, according to a report by Insurance Technology. “GEICO wants the best experience for our customers at all times,” Dave Weaver, manager of mobile applications, told Insurance Technology. “Our mobile applications for iPad mobile digital devices and Android operating system were built with that in mind.”

Want to pay an insurance bill? There’s an app for that. Want to access insurance ID cards, record accident information, call a GEICO representative or view GEICO videos? There’s an app for that too. The idea is to help consumers through an accident and help them pay their bills. “Instead of simply shrinking our existing website, we reinvented the interaction with our latest applications,” Steve Smith, assistant vice president of GEICO’s Internet business unit, told Insurance Technology.

The company currently insures 16 million vehicles and recently announced they’re hiring hundreds of new workers.

Turns out, thieves have good taste in cars. They aren’t after minivans or hybrids. They want flash, speed and chrome, according to the Highway Loss Data Institute, a research group associated with the Insurance Institute for Highway Safety. Here are the top four most-stolen vehicles:

1. 2007-2009 Cadillac Escalade luxury SUV

2. Ford F-250 heavy-duty pickup

3. Infiniti G37 luxury car

4. Dodge Charger

Experts say these cars are targeted by thieves three to five times more than all other vehicles. “Sedate family cars and fuel sippers aren’t on the hot list,” Kim Hazelbaker, senior vice president of HLDI, told the Wall Street Journal. “Thieves are after chrome, horsepower, and Hemis.”

This is nothing new for the Escalade. The SUV has ranked at the top of the “most stolen” list on six of the past seven reports. The model at the top of that list is the Escalade EXT, a four-door, four-wheel-drive pickup. You might think the Escalade would be a difficult car for thieves to steal since it has extensive anti-theft protection, but Hazelbaker told the Wall Street Journal, ”even though Escalades have the latest immobilizer technology, thieves still can put them on flatbeds and haul them away.” In general pickup trucks have been targeted more and more. Trucks get stolen twice as much as cars and SUVs.

Auto insurance companies paid out more than $1 million in claims for fake car accidents, according to investigators. The extensive scheme included dozens of people and this week the man police say was at the head of the scam was sentenced to four to ten years in state prison in Pennsylvania. Forty-four-year-old Wallace Morris Sr, also known as “Popsicle” and “Pops” also faces federal charges, according to the Philadelphia Inquirer.

Authorities say Morris pleaded guilty to his involvement in 44 fake car accidents in order to collect insurance money. The judge also ordered Morris to repay about $440,000 to 17 different insurance companies that Morris scammed. The insurance companies include AIG, Allstate, Geico, Liberty Mutual, Nationwide, Progressive, and State Farm, according to the Philadelphia Inquirer. While Morris was at the head of the insurance fraud operation, officers say Philadelphia police officers Deshane Riggins and Drexel Reid Jr. were a part of it too. Riggins wrote fake accident reports for Morris, according to reports.

For a period of two years, from 2004 to 2006, Morris lead a fraud ring that included at least 268 relatives, friends and acquaintences. The District Attorney’s Office says Morris orchestrated the submission of 187 fake insurance claims. Officials say each phony accident usually involved two vehicles with three passengers in each car so that six claims were generated. So far, nearly 100 arrests have been made, but more could be on the way.

According KYW, the assistant district attorney says Morris’ friends and relatives would claim they were injured in accidents that never happened. “Mr. Wallace Morris was a co-conspirator in a large insurance fraud scheme totalling in 44 car accidents, 115- arrests, over $1-million loss to 17 insurance companies,” Linda Montag told KYW. The judge in the case also mentioned the irony in the fact that Morris stated his transportation company went out of business because of high insurance costs.

A 2008 wind storm is still causing problems for Ohio homeowners. This time instead of downed trees and ripped off roofs, homeowners are having to deal with higher homeowners’ insurance rates. According to the Ohio Department of Insurance, rates increased by an average of 9.7 percent. The Ohio Department of Insurance surveyed the top ten providers of homeowners’ insurance, according to the Dayton Business Journal.

The increase comes on the heels of a seven percent increase in 2008, which at the time was the largest jump in five years, according to reports. Insurance companies say they paid out more than $1.4 billion in 2008 as a result of the September wind storm that left millions without power for days. The storm was what was left of Hurricane Ike, wiping out power to 1.9 million electricity customers in the Dayton area.

In addition to increased homeowners’ insurance rates, Ohio residents will also see a 2.8 percent increase in auto insurance rates. But despite the increases, reports show that Ohio is still the sixth lowest in the country for homeowner’s insurance rates and the 11th lowest for auto insurance rates.

Many auto insurance companies are trying to keep your business by offering perks and incentives. Wondering what all of these things mean? Here are some key auto insurance terms defined:

Accident Forgiveness: In the past, every time you got in an accident your insurance premiums soared and you ended up paying way more. But now many insurance companies are offering accident forgiveness. If you’re in an accident that is your fault, accident forgiveness will protect your driving record and prevent your rates from skyrocketing.

Deductible Rewards: Many insurance companies have realized how annoying it is to be a great driver, but not get any incentive for it. Now with deductible rewards the insurance company will take a certain amount of money off of your Collision deductible every year you go without having an accident.

Safe Driving Bonus: When you don’t get into accidents, the insurance company doesn’t have to spend any money on you. Now some companies are giving you a piece of your money back as a reward for being a safe driver. Every six months to a year they’ll cut you a check if you haven’t had any issues. The amount of the check is usually equal to a small percentage of your premium.

New Car Replacement: This term is just like it sounds. Since cars lose their value so quickly, drivers who totaled their new cars ended up with a bad deal. They’d get the money equal to what their car was worth, which worked out to be a bad deal. Now some auto insurance providers are promising to give you a new car if yours is totaled within the first three years– not just the depreciated value.

The Michigan Supreme Court supported the practice of using credit scores to set auto and home insurance rates of policyholders. Some say that using credit history discriminates against poor and middle-class people. But those in the insurance industry says it makes sense because credit scores are often indicative of whether a person will file claims. Michigan’s high court voted 4-3 in a case that questioned whether the state’s insurance examiner exceeded her authority in 2005 by trying to ban the credit-based scoring, according to the Detroit Free Press. “We’re very pleased with the ruling,” Peter Kuhnmuench of the Insurance Institute of Michigan told the Detroit Free Press. “The evidence was overwhelming.”

Those against the policy are now trying to get the legislature to ban it. The state House did approve the ban, but early predictions show a different outcome is likely in the Senate. Kuhnmuench told reporters that approving the ban would actually cause rates to increase for two-third of insurance policyholders. On the contrary, a state insurance consumer advocate claims the ban would cut rates for nearly three out of four insurance customers.

Chief Justice Maura Corrigan voted in favor, saying that insurance companies “have demonstrated a clear correlation between insurance scores and risk of loss,” justifying the use of credit scores. Chief Justice Marilyn Kelly who was against eliminating the ban said that the evidence supporting the connection between credit scores and insurance risk was not conclusive or complete.

Everyone is looking for ways to cut costs these days and your auto insurance coverage may have some hidden savings. Here are four ways you can lower auto insurance costs.

1. Reduce Coverage on Older Cars. Have a car that’s been around the block about a million times? Make sure you’re not buying more insurance than you need. There is no need to insure the car for more than it’s worth. If your car is totaled, you’ll only be able to get the value of what the car was worth anyway. Experts say it may be OK to drop collision and comprehensive coverage if your car is worth less than ten times the premium.

2. Raise Your Deductible. Going from a $250 deductible to $1000 can cut your monthly costs by as much as 40% which is no small savings. Just make sure you consider how easily you’ll be able to come up with the cash for the deductible if something were to happen.

3. Shop Around for Your Teen. Most people just assume that adding their teen drivers onto their own policies is the cheapest way to go, but that’s not necessarily true. You may be surprised what kind of rates you can find when you shop around with other companies that specialize in high-risk drivers.

4. Ask About Discounts. People that work from home or use public transportation can score cheaper rates because they’re not driving as much. Ask your auto insurance agent if there are any discounts available that you may qualify for. If you’ve been a customer for a while they may give you a lower rate or if your car has added security features.

What do you do when you approach a yellow light? What’s considered a safe following distance when driving on a highway? What’s the speed limit in a school zone? Residents of Kansas got more questions like these correct than any other state. Kansas ranked first on the GMAC Insurance National Driver’s Test survey. Kansas took the number one spot after placing fourth last year.

It’s the sixth year for the survey. GMAC questioned more than 5,000 drivers from all 50 states and the District of Columbia in order to figure out which state was the most educated in the rules of the road. The drivers were asked a series of 20 questions from state DMV exams. But despite the smarts shown by Kansas residents, GMAC says Americans’ knowledge of road rules is declining. The national average test score dropped from 76.6 percent in 2009 to 76.2 percent in 2010. Almost nine out of ten drivers questioned didn’t know what to do when approaching a yellow light or what is considered a safe following distance.

Kansas drivers scored an average of 82.3 percent with drivers in Oregon, South Dakota and Minnesota not far behind. New Yorkers scored the worst, with an average score of 70 percent. Also at the bottom of the results were New Jersey, the District of Columbia and California.

Chrysler, which owns GEM, the world’s largest producer of low-speed vehicles says the cars are safe as long as they are on the roads they are intended for. “GEM vehicles offer customers an inexpensive, clean solution for low-speed environments and comply with (the NHTSA’s) standards for low-speed vehicles, which limit the maximum speed of the vehicle to 25 mph,” said Chrysler officials in a USA Today report. “It’s a grave generalization to say that all LSVs are simply souped-up golf carts,” says Mike McQuary, CEO of Atlanta-based Wheego Electric Cars, which manufactures the Whip LSV, according to USA Today.

On June 8 California voters will decide what they think about Proposition 17, but until then the debate continues. Supporters say it will help more than 80% of the state’s residents because they could keep their continuous coverage discounts with them when they switch car insurance providers. Drivers say as much as $250 a year with these benefits, but currently the benefits are lost when you switch to a new insurance carrier according to an LA Times report.

Those against Proposition 17 say it will drive up costs, especially for people who gave up driving because of various reasons ranging from military service to medical conditions. Those against the legislation say new drivers and those with bad driving records would also face higher costs. Both sides have been lobbying hard, with insurance companies spending millions of dollars on ad campaigns in the weeks before the vote.

Business groups are largely backing the proposition because of its added freedom for changing insurance providers because they believe it would add more competition. Others say the new law would undermine an old on that strengthened the link between insurance costs and the risk certain drivers hold, according to Richard Holober of the Consumer Federation of California. “It is discriminatory against people who are down on their luck and serving their country,” Holober said to the LA Times. Holober says that drivers who suspend their insurance for more than 90 days because they’re not driving would then have to pay surcharges to reactivate their car insurance coverage.

A surcharge like that would impact drivers like Ben Gartner, a teacher who stopped driving for a year and a half when gas prices soared. Gartner worries he’d have to pay a huge surcharge if Proposition 17 passes. “I would feel it was very unfair if I had to pay more for insurance because I wasn’t driving. I didn’t have anything negative on my driving record. I did it to save money,” he said to the LA Times. But supporters say that won’t happen. “California is the most highly regulated insurance market in the country, with significant consumer protections, and our opponents know darn well the Department of Insurance would never approve rates with the surcharges they allege would occur,” said Mike Darrell to the LA Times, executive director of the Sacramento-based Alliance of Insurance Agents and Brokers.

A huge insurance company in California is accused of breaking state laws and could face big fines. The state Department of Insurance released a report Monday according to San Francisco Chronicle  that says that Mercury Insurance Group, the state’s third largest insurer overcharged customers and also denied some people coverage.

Mercury company officials released a statement maintaining their innocence. The company said in the statement that it “takes very seriously our responsibilities to consumers and our customers” adding, “We don’t engage in practices that would overcharge our customers.”

The report identifies 35 alleged violations in a span of about three months between March and May 2007. The violations include instances where Mercury supposedly barred people from coverage if they worked in certain jobs including bartenders, painters, cocktail waitresses or artists. Also, the report says that homeowners insurance premiums weren’t applied on time, resulting in overcharges for the insured. According to reports, Mercury has ten days to correct the violations and otherwise faces a $5,000 fine for each violation. This isn’t the first time Mercury has faced fines. In 2008 the company paid $200,000 in fines and in 2006, they paid $300,000 for violating insurance laws, according to Insurance Department officials.

Ever wonder how your state stacks up when it comes to auto insurance rates? A new survey from commission by Insure.com ranks every state by the average premium paid by residents. Turns out if you live in Louisiana you’ll pay the most. If you live in Vermont you’ll pay the least. And if you live in Pennsylvania you’ll pay darn close to the national average of $1,429.26.

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58%%

90%%

122%%

130%%

154%%

170%%

186%%

194%%

230%%

246%%

262%%

270%%

294%%

310%%

326%%

334%%

358%%

374%%

390%%

398%%

422%%

The survey collected insurance rates from more than 2,400 vehicles based on ten zip codes for each state. Customers from six insurance carriers were included.