Society Insurance Selects Valen's Predictive Analytics Solution

Society Insurance, a provider of property, liability and business auto insurance products, has selected UnderRight predictive analytics solution developed by Valen Technologies.

According to Valen, with its UnderRight solution Society Insurance will be able to make informed underwriting and pricing decisions. With the ability to assess risk more accurately, and price accordingly, Society expects to maximize profitability.

Rick Parks, COO of Society Insurance, said: "Valen's predictive models will give our underwriters a level of objective insight into our business that they have not had before. Not only will they be able to price more consistently and accurately, but our underwriters will be able to increase their production significantly."

Auto Insurance May Not Cover Collisions With Deer

Dear Action Line: My daughter hit a deer standing in the highway on her way back from college and now her insurance company refuses to cover it, saying it is not included in her auto liability coverage. What kind of policy doesn't cover such an accident? My daughter wasn't at fault -- the deer was. -- D.A.D., Tulsa.

Oklahoma Department of Wildlife Conservation figures on past deer populations, based on deer harvests during the state's 16-day deer gun season -- and the recent mild, damp summers of 2007 and 2008 -- suggest our deer population could exceed 500,000. And they can weigh over 300 pounds and don't wear reflective shoes at night.

The Council of Better Business Bureaus and the Insurance Information Institute say few people ever read their auto insurance policies and don't know what their coverage includes. But insured drivers whose cars are damaged in auto-deer collisions may be covered for more than they think -- if they still have "comprehensive" coverage and haven't given it up to save money with the gecko.

With deer migration and mating season coming October through December, the two groups recommend drivers read their auto insurance policies closely to understand the difference between "comprehensive" and "collision" coverage. The two most common ways the "save a bundle on car insurance" hawkers reduce the cost of your vehicle insurance are talking you into dropping comprehensive or collision or both.

Most people are surprised to learn their "collision" insurance doesn't cover "collision with a deer" but that their "comprehensive" coverage does. It covers deer impacts and most other circumstances that can damage a car or cause it to disappear.

The nonprofit Institute says, on average, deer-vehicle collisions cost $2,800 per insurance claim or $10,000 if there is injury to the driver or a passenger.

"Only comprehensive coverage reimburses drivers for loss due to contact with animals such as birds or deer. In addition, most auto insurance policies do not automatically cover the cost of a replacement rental car after an accident," said an institute consumer alert.

"Although many states do not require that you purchase comprehensive coverage, your lender may require it until your car loan is paid off," said Carolyn Gorman, vice president of the I.I.I. "Comprehensive insurance is usually sold with a $100 to $300 deductible."

Although many drivers have coverage for a replacement rental car, they may not realize it because this optional coverage was added at such a minimal expense, usually just a couple of dollars a month. This coverage provides immediate access to a replacement rental car until repairs are made to their damaged car or they are authorized by their insurance company to purchase a new car.

Drivers should also determine whether they have "gap coverage." If their cars are totaled, gap coverage prevents their continuing payments on the balance owed on their cars. It pays the difference between the amount the insurer pays for the totaled car and the amount they owe on leases or loans.

Both the institute and bureau advise drivers to take a few minutes annually to review their policies or talk to their insurance agents to make sure they have the coverage they want and need. Knowing as much as possible about your coverage is the best way to ensure you get your money's worth

Auto Insurance and the Price of Carbon Offsetting

The green fad has been slowly creeping into all types of insurance - but for now, there are still only a relatively small number of products available. Once again, it was the Co-op which led the way in this market, launching a motor insurance policy two years ago, which promises to offset 20% of all customers' car emissions. Today, it offers this to all customers who sign up with it, and also makes other environmental commitments, such as using mechanics who promise to always try and repair a vehicle before scrapping it. A newer entrant to the market, The Green Insurance Company, goes one step further, offering to offset 100% of your emissions over the year. Another slightly different approach in the motor market is More Than's Green Wheels policy, which allows customers to put a device in their car to analyse their driving, and provide them with pointers on how they could reduce their carbon emissions. Drivers who accelerate too quickly or drive too fast tend to be the worse polluters - so by examining your behaviour, you could help to cut your emissions, and your petrol bill. The service is free for all More Than car insurance customers. In the travel market, climatesure, which is backed by AXA, promises to pay for the carbon offsets of any trip you make. While in the home market, the Environmental Transport Association pledges to offset the emissions caused by heating and electricity in the home for all policy- holders. With all these products, the one thing to watch out for is the price. Climatesure's insurance, for example, is more expensive than buying regular travel insurance - but it can be competitive when comparing the combined cost of separate insurance and carbon offsets. It's always worth comparing green products with plain vanilla insurance, and working out how much you could save.

Fast Online Auto Insurance Quote Comparisons

The purpose of quote comparisons is to ensure competitive rates for the coverage desired, since the exact same protection may be priced differently within each company. Among the most commonly provided pieces of advice offered by professionals for maintaining low premiums is obtaining a few different quotes to better increase the chances of finding suitable coverage with premiums that fall within a given budget.

A website operated by a licensed broker, http://www.onlineautoinsurance.com/ connects consumers with an array of carriers by hosting a single set of questions and electronically returning a fast premium quote from multiple companies. This is possible through time-reducing online technology which eliminates the need of repeatedly completing questionnaires or making several telephone calls to gather a variety of options.

Based on rating factors and state laws, visitors may have the option of purchasing their policy online by signing applications electronically, replacing the ink signature. This gives policyholders the ability to insure vehicles without the need of driving to a local office location. In 2008, the World Wide Web has become a large source of policy issuance and indicates growth with each subsequent year.

Scarlett Zavala, website conversion analyst states, "A factor deterring a significant percentage of US consumers from going online to satisfy their insuring needs is information security. As we tighten up security features, we are seeing an increase in consumer confidence resulting in higher Internet usage to fulfill such needs."

With the use of a secure form, site visitors can be more confident that their information is secure. Additionally, for the purpose of rate comparisons, driver's license or social security numbers are not required although such data may be optionally provided for increased accuracy in auto insurance quotations.

Auto Insurers Assessing Reduced Driving on Their Rate Requests

Higher gas prices lead to less driving, and as New Yorkers drive less, the number of accidents should go down.

That's the assertion of New York Insurance Superintendent Eric Dinallo, who issued a bulletin to auto insurers on Aug. 6 instructing companies with pending requests for rate increases to examine the impact reduced driving may be having on their rates.

Nearly 50 auto insurers that have filings for rate increases before the insurance department are now conducting the required analysis. Their requests will not be considered if the additional information isn't included.

On the same day the bulletin was issued, Washington, D.C.-based Government Employees Insurance Co. (GEICO) withdrew a rate-increase request previously filed for two of its companies, GEICO and GEICO General, says Michael Moriarty, deputy superintendent for property and capital markets.

The action followed a previous discussion with the insurance department on how higher gas prices are reducing the number of miles New Yorkers drive, says Moriarty.

GEICO had filed its rate increase request in the spring. During the review process, the insurance department mentioned the possible domino effect of fewer accidents and insurance claims if higher gas prices mean people aren't driving as much.

The insurance department cites information from the U.S. Department of Transportation indicating that in May, the number. of miles Americans drove declined for the seventh straight month. New Yorkers drove 500 million fewer vehicle-miles (a 4 percent reduction) in May 2008 than in May 2007.

Vehicle-miles are the standard measurement of traffic volume, with one vehicle-mile representing one vehicle driven one mile.

GEICO was asked if the company had taken the possibility into account in its rate filing.

"They came back with some analysis, and basically indicated that due to the fact that gas prices are impacting the driving habits of New Yorkers, and people in the United States in general, that they would withdraw the filing in kind of a wait and see for the impact on their book of business," says Moriarty.

A second rate increase request for GEICO Indemnity, a company that writes policies for higher risk drivers, has also been reduced, says Moriarty.

In an e-mail, Rachel Veness of GEICO corporate communications, said the state insurance department has accurately described what transpired, "but because of the highly competitive nature of our business and because our competitors watch our progress with great interest, it's our long standing policy not to release any information about GEICO operations."

As of Aug. 14, eight days after the bulletin was issued, GEICO is the only auto insurer to withdraw a rate request. The company writes approximately $2 billion worth of auto insurance annually in New York, making it the state's largest auto insurance underwriter, according to Moriarty.

Andrew Mais, spokesman for the insurance department, says the average rate increase request is 7 percent among the 48 insurers that have filed and are now assessing the impact of reduced driving on their rates.

In 2009, all insurers in New York will have the ability to raise or lower their rates by up to 5 percent without prior approval from the insurance department.

The provision, called a flex-rating program, is part of a new state law that takes effect in January, says Timothy Dodge, director of research and external communications at the DeWitt office of the Independent Insurance Agents & Brokers of New York, Inc.

"What's good about that is it gives the insurance companies some pricing flexibility so that they can react more quickly to changes in the market when they see them," says Dodge, noting that right or wrong, the insurance department has a reputation for acting slowly on rate requests.

The provision indicates companies can raise their rates just twice in a given 12-month period, and the rate increases combined can't exceed 5 percent, says Dodge.

He says the law is somewhat biased toward rate decreases, noting companies can reduce their rates as many times as they want, as long as the reductions combined in a given year don't exceed 5 percent.

"It's going to allow the market to respond more quickly to changing conditions and that can only benefit consumers," says Dodge.

Any proposed rate increase over 5 percent would still need approval from the insurance department.

When asked if he felt the new flex-rating provision played any role in GEICO withdrawing its rate increase request, Moriarty said he honestly didn't know.

Without the need for department approval on 5 percent fluctuations, the new state law could mean fewer rate-increase requests for the insurance department to consider in the future, says Moriarty, acknowledging that insurance companies operate in a competitive marketplace.

Insurance Companies More Willing to Take on Teenage Drivers

Sep. 29--Insurance companies used to avoid teenage drivers, fearing they would prove a costly headache with their accidents and immature driving.

But things are changing.

Insurance agents say they now are offering discounts to teenagers and other young drivers, hoping to attract their business. That's something unheard of a few years ago.

The move comes amid greater competition among insurance companies, and at a time that young drivers are not quite the risk they once were for a variety of reasons.

Many states, including Texas, have placed restrictions on teenage drivers. Some can't drive between midnight and 5 a.m., or they can't have a cell phone or other mechanical device in the car. Others can't pack their cars with other teenagers.

Some parents are getting involved. They're investing in the latest in monitoring systems to watch their youngsters drive.

Something called the DriveCam, for example, can record what's going on inside a car and the view outside through the windshield.

Ricky Palmer sells security and tracking systems at a Waco company called Shades Custom Tint. He offers a GPS-like vehicle tracking system called Street Eagle that monitors the location and speed of a vehicle. It even can be used to shut down a car.

These movements can be watched on the Internet by anyone with the correct log-in information, Palmer said.

"We sell these for a lot of different reasons," Palmer said. "Some parents are looking to track kids, but most of our business involves installing the systems in fleet cars." Palmer said the system costs $350 plus a monthly fee that varies with usage.

State Farm, the nation's largest automobile insurer, has been offering discounts up to 15 percent for drivers under age 25 in most states who take part in its "Steer Clear" safety program that involves keeping a log of driving habits.

"We try to make the program available to everybody we can get a hold of," said Blake Harrell, a local State Farm agent. Harrell said insurance companies indeed are stepping up efforts to get young customers.

"People want future clients," he said. "If Mom and Dad die and Junior is not already on the books, he will go somewhere else. We'll take losses with the idea of getting future clients." Harrell said the log that drivers keep poses questions they must answer after taking trips. They may have to comment on whether they were distracted at any time during the drive, how many passengers they were carrying or whether they used a cell phone.

State Farm also offers a driver's training discount of 10 percent and a good student discount of 15 percent.

Safeco has rolled out its "Teensurance" program for drivers typically up to age 25. It offers as much as a 15 percent discount for participants who pay $15 a month for a satellite- tracking service that traces young drivers. Safeco pays for the equipment.

"We think it's a great idea. It just hasn't taken off in Texas, possibly because they haven't pushed it very hard here," said Don McKinney at Brazos Valley Insurance Agency in Waco.

He offers Safeco products, including "Teensurance." A company called Fireman's Fund has a "Youthful Driver" program for young adult drivers, and it is available in Texas.

It allows young adults to qualify for their parents' discounts and credits until they reach their 27th birthday. By that time, if they have kept their record clean, their premiums should decline.

The Wall Street Journal reports that a changing market is behind the way young drivers are viewed today.

Auto insurance premiums have been flat or even down in much of the U.S. because of safer cars, reduced theft rates, better fraud prevention and greater competition. U.S. auto insurance premium rates rose just 0.4 percent in 2007, according to the U.S. Bureau of Labor Statistics.

Tech-savvy youngsters, meanwhile, are more likely to shop the Internet for the best deals on insurance, which is another reason insurance companies are courting them with discounts.

Still, young drivers remain riskier than other groups. Drivers under age 20 were only 6.4 percent of the nation's drivers in 2006, but they were involved in 13.2 percent of all fatal crashes.

Technology is allowing parents to keep a closer eye on teen drivers.

OBS Inc., a Colorado-based mobile surveillance company, has launched the HD1, a video-camera system for cars that is aimed at parents with teenagers. It starts at $965 and works like a digital-video recorder, filming everything that goes on in and around a car with as many as four cameras. Parents can remove the hard drive from the system using a key and connect it to their TV or personal computer to view the video.

Some programs aimed at keeping young people safe behind the wheel are more geared to personal responsibility.

John E. Fadal, who has a Farmers Insurance Group agency in Waco, said Farmers will give young drivers up to age 21 a 10 percent discount on their liability, personal injury and collision insurance if they maintain a B average in school, complete a driver's safety course and watch a safety video.

But Fadal said there is "no question" that insuring young drivers remains more risky.

"There are some we have insured for years, and we never hear anything from them. Some we can't run off," Fadal said. "I can remember a 16- year-old kid that we had insured only a few weeks when he was involved in a bodily injury accident in which a person was killed. We paid a $100,000 claim." Ramona Cunningham, an agent with Germania Insurance locally, said she offers a 10 percent discount on collision and liability insurance to young people who take a driver's education course.

She said it benefits youngsters to stay on their parents' policy for six months to a year so they can establish a good driving record.

That will help them when they pursue a policy on their own, she said.

Local Allstate agent David Wilson said that company offers a 15 percent discount on collision, comprehensive and liability coverage to young people who maintain a B or better average in school. They can pick up another 10 percent discount by attending driving school.

"That's a total of 25 percent," Wilson said.

Wilson said he insures a family with a 17-year-old son who drives a 2002 Ford F-150 pickup. The family pays $439.10 every six months to insure the pickup, but that represents a discount of $102 because the 17-year-old is a good student who has taken driver's training.

"If that teenager bought insurance on his own, he would be paying twice that rate, I guarantee you," said Wilson, adding that he and the family benefit from discounts on multivehicle coverage.

New IRC Study Documents Role of Chiropractors in Minnesota's No-Fault Auto Insurance System

MALVERN, Pa., Sept. 12 /PRNewswire-USNewswire/ -- Chiropractors now account for a greater share of total provider charges in Minnesota's no-fault insurance system than all other types of treating providers combined. According to a new study from the Insurance Research Council (IRC), 58 percent of all provider charges for treatment of no-fault insurance claimants in 2007 were from chiropractors. In a study conducted five years earlier, IRC found that 41 percent of all treatment charges were from chiropractors.

The recently released study, Analysis of No-Fault Auto Insurance Claims in Minnesota, is based on a detailed review of more than 500 personal injury protection (PIP) insurance claims closed with payment in 2007. The claims were among the 42,038 claims examined in the IRC's countrywide report, Auto Injury Insurance Claims: Countrywide Patterns in Treatment, Cost, and Compensation. Twenty-two automobile insurance companies representing 57 percent of the countrywide private passenger auto insurance market, and 61 percent of the Minnesota market, participated in the study.

The growing cost of chiropractic treatment in Minnesota's auto insurance system is attributable primarily to rapid growth in average charges per visit to chiropractor offices. Between 2002 and 2007, average chiropractor charges in Minnesota increased 30 percent, from $122 to $158 per visit. In addition, the percentage of PIP claimants receiving chiropractor treatment increased approximately 5 percent. Minnesota had the third highest utilization rate for chiropractors (42 percent) among 17 states with no-fault insurance claims. Only Washington and Florida had higher chiropractor utilization rates in 2007.

"These findings help explain why auto insurance costs are so much higher in Minnesota than in any of its neighboring states," said Elizabeth A. Sprinkel, senior vice president of the IRC. "Minnesota clearly is atypical when it comes to the utilization of chiropractic services by auto injury claimants."

Another significant growth area identified in the study involves MRI diagnostic tests. IRC found that the utilization rate for MRI tests in Minnesota grew by one-third, from 12 percent to 16 percent, between 2002 and 2007, and that the average charge per MRI grew 27 percent, from $1,432 to $1,812. The average charge in 2007 for an MRI in Minnesota was 23 percent higher than the countrywide average.

The study also examined the role of attorneys in the no-fault system and found that 24 percent of all 2007 PIP claimants in Minnesota were represented by attorneys. Average claimed losses were much higher for attorney-represented claimants than for other claimants. Even when controlling for the type of injury involved, the study found that average claimed losses were almost three times as high when an attorney was involved: $13,686 compared to $4,806. Attorney involvement also was found to be associated with much longer time to final payment. When an attorney was involved, 60 percent of no-fault claims in Minnesota were still open one year after the date of injury. When no attorney was involved, only 12 percent of claims were still open after one year.

For more detailed information on the study's methodology and findings, contact David Corum at (610) 644-2212, ext. 7506; or by e-mail at irc@cpcuiia.org. Or visit IRC's Web site at http://www.ircweb.org/. Copies of the study are available at $65 each in the U.S. ($80 elsewhere) postpaid from the IRC, 718 Providence Road, Malvern, Pa. 19355. Phone: (610) 644-2212, ext. 7574; Fax: (610) 640-5388.

The Insurance Research Council is a division of the American Institute for CPCU. The Institute is an independent, not-for-profit organization dedicated to providing educational programs, professional certification, and research for the property-casualty insurance business. The IRC provides timely and reliable research to all parties involved in public policy issues affecting insurance companies and their customers. The IRC does not lobby or advocate legislative positions. It is supported by leading property-casualty organizations.

Course Offered to Cut Auto Insurance Get a 10 Percent Discount By Passing a $40 Online Course, With Conditions.

ATLANTA - Almost anyone with Internet access, six hours and about $40 can shave 10 percent off their auto insurance costs, under a new online driver's education program offered in the state.

The 10 percent discount lasts three years. For a 40-year-old male driver, that amounts to a $560 savings, based on Georgia's average insurance rates.

An online version of training that for years has been offered in a classroom setting, the course puts drivers through six hours of written text and videos on the basics of vehicle safety and defensive driving, with questions at the end of each section. Tests do not need to be completed in one sitting. Test-takers must answer at least 80 percent of the questions correctly in order to receive the discount.

"It really is not difficult to pass the course. It's just a matter of paying attention to the information and answering the questions," said Angie LaPlant, senior project manager of AAA Auto Club South, which administers the test.

But not all drivers warmed to news they could pay to get a discount.

Ron Haberkorn of Augusta said the course wouldn't be worth it because his insurance rates are already very low.

"I'm over 40. There's not much to save there," Haberkorn said.

Anyone can take the course. But to receive the discount, drivers must be at least 25, have a Georgia license and insurance, and have no accidents or traffic violations in the three years prior to taking the test.

"It's a huge benefit to the safe drivers of Georgia to be able to give them a break on their auto insurance," LaPlant said.

The savings applies to premiums on the more expensive aspects of auto insurance - liability, first-party medical and collision coverage, LaPlant said. The cost is $39.95, but AAA members can take the test for $29.95.jake.armstrong@morris.com, (404) 589- 8424aaasouth.com FIND more information about the online driver's education course

Accenture Completes Implementation of Claims Solution at Affirmative Insurance

Accenture (NYSE: ACN) has completed the implementation of Accenture Claim Components Solution at Affirmative Insurance Services, a distributor and producer of personal non-standard automobile insurance and a subsidiary of Affirmative Insurance Holdings, Inc.

The new claims system, which replaces Affirmative's former claims system, is part of Affirmative's broader IT transformation program to upgrade, streamline and enhance its core processing systems. Accenture Claim Components Solution is a robust Web-based technology designed to help insurers - ranging from the world's largest to smaller, niche carriers - improve the efficiency of their claims-handling operations through the automation of routine tasks. The solution supports Affirmative claims transactions from first notification of loss through final payment.

"This solution reflects our continuous commitment to innovate and improve our customer service and claims-handling performance," said Wilson Wheeler, senior vice president and chief claims officer at Affirmative Insurance. "Given the robust functionality of Accenture Claim Components Solution, we were able to rapidly configure and deploy the solution with minimal impact on our business. This implementation marks a major milestone in our effort to achieve claims excellence."

The Affirmative implementation represents the first application of Accenture Claim Components Solution within the non-standard auto insurance market, which covers drivers who have difficultly obtaining insurance from standard insurance companies due to their driving record, their lack of prior insurance or other factors.

"Claims service expectations are evolving, and today's insurance customers are simply demanding more from their carriers," said Michael Costonis, Accenture's North America insurance practice managing director and head of global claims services. "Leading insurers -- from specialized carriers like Affirmative to multi-line global companies -- recognize that the ability to satisfy those expectations and secure their competitive positioning depends upon the rapid and cost-effective implementation of a high-performing claims infrastructure."

Accenture Claim Components Solution, used by five of the top 10 U.S insurance carriers and several of the largest insurers in Europe, helps process approximately one-third of all property and casualty insurance claims in the United States.

In addition to the license of the Accenture Claim Components Solution, which is built with Microsoft .Net 2.0 technology, Accenture is providing outsourced application maintenance and infrastructure services to Affirmative under a broad information technology transformation initiative the insurer began in late 2006.

About Affirmative Insurance Holdings

Affirmative Insurance Holdings, Inc. is a distributor and producer of personal non-standard automobile insurance policies to individual consumers in highly targeted geographic markets. Affirmative currently offers products and services in 13 states, including Louisiana, Texas, Illinois, California and Florida.

Former Insurance Agent Pleads Guilty to Identify Theft, Fraud The Glynn County Man Admitted to Stealing About $93,000.

BRUNSWICK - A former Glynn County insurance agent admitted Thursday in federal court to stealing about $93,000 in commissions through an elaborate identity theft and auto insurance fraud scheme spanning 14 months.

cott F. Ferrell, 44, of St. Simons Island pleaded guilty to 20 counts of mail fraud in the case, but he offered Senior U.S. District Judge Anthony Alaimo no explanation for his actions.

Ferrell testified he was guilty of defrauding Metropolitan Property and Casualty Insurance Co. of Warwick, R.I., of the commissions from Oct. 23, 2005 through Jan. 4, 2007.

He faces up to 20 years in prison, and a fine up to $250,000 on each count.

Alaimo allowed Ferrell to remain free on $10,000 unsecured bail pending sentencing.

The fraud scheme was investigated by U.S. Postal Service inspectors aided by U.S. Secret Service and Social Security Administration agents.

A separate state investigation led Georgia Insurance Commissioner John Oxendine to revoke Ferrell's insurance license Sept. 3.

Ferrell worked the fraud by manipulating Metropolitan's practice of paying commissions to agents in advance for auto insurance policies that would go into effect at a later date, testified retired postal inspector Joseph Long, who had led the federal investigation.

Ferrell stole the names and Social Security numbers of residents in Brunswick, St. Simons Island, Savannah and Waycross who had "excellent credit ratings," Long testified. He then used the information on insurance applications he submitted to Metropolitan, Long said.

The company approved the applications immediately without consulting the policyholders because of their high credit rating, he said.

"Approximately 202 people's names were used for 216 [fraudulent] policy applications written by Mr. Ferrell. ... Those customers didn't want the policy, and they didn't know anything about it until the investigation," Long testified.

There was no evidence presented Thursday that any money was lost by the people whose personal information was used in the scheme.

Long said Ferrell repeatedly used the identification numbers from 62 vehicles including Jaguars, Hummers, Cadillacs and Lexuses on the applications. None of the vehicles belong to the people named on the application, he testified.

Long used nonexistent addresses to conceal the fraud, Long said.

"After Ferrell got the authorization to write the policy, he went into the computer system and changed the customers' good addresses to nonexistent addresses he created," Long testified.

The company mailed the insurance policies and premium bills to the nonexistent addresses Ferrell had entered on customers' file.

When the postal service returned the mail as undeliverable, the company forwarded the policies and bills to Ferrell to deliver in person, Long testified.

When the premiums went unpaid, Metropolitan canceled the policy then charged Ferrell for the advance commission he'd received for it, he testified.

"Metropolitan paid him about $93,000 in commissions and they've recovered a little over half of it from him," Long testified.

Insurance Marketing Podcast Explores What's Driving Consumers Shopping for Coverage

The latest edition of the Insurance Marketing Podcast features an interview with Jeremy Bowler of J.D. Power and Associates on how customers' attitudes toward insurance-coverage shopping are changing, along with the sources of information they rely upon to make insurance-buying decisions.

A step-up in marketing, particularly by auto insurers, means policyholders and candidates are being tempted in new ways, Bowler said. The focus for many insurers' marketing efforts--and even their target audience--is changing.

"The insurance industry has been blessed by phenomenal retention or renewal rates, averaging about 90% or just under that for the automotive policy renewals. If I compare that to, for example, the automotive industry, even the very best vehicle in terms of sales each year, something like the Toyota Camry doesn't come close to a 90% retention rate," Bowler said in the interview. "The focus in insurance is on policy retention, on acquisition and branding. With a few notable exceptions I'll grant you, most insurers were just not spending the kind of money that we're seeing today in advertising. Most of that spending was going toward commissions, and the job of finding the next prospect or building the relationship with a customer fell more to the local agent than perhaps to the carrier."

Bowler is a featured presenter at the 2008 Insurance Marketing and Advertising Summit, set for Nov. 6 at the Marriott Marquis in New York City. The one day conference, presented by the A.M. Best Company, will explore marketing and advertising in the insurance industry.

In conjunction with the conference, A.M. Best is continuing its podcast series focused on insurance marketing and advertising issues.

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Because we offer multiple company rates and the ability to purchase their auto insurance quote from one place, we are ahead of other online insurance companies. Start your quote to see how companies compete for your business. You could save over 25% on your auto insurance. We are becoming the Internet's most popular comparison insurance website with the most car insurance resources available!

Ways in Which to Lower Your Car Insurance Rates

There are many ways in which to lower your insurance policy premiums. Some take a little work from you while others might be offered to you when you request a quote. Before renewing or buying your next insurance policy read through these tips.

One of the best ways to lower your insurance rates is to shop around. If you think you are getting really good rates and service from your current auto insurance company you might not feel the need to shop around. But for most people they will always be on the lookout for a good deal. If this means changing insurance companies it might be a good thing.

When getting quotes makes sure you are comparing apples to apples. That means you need to get quoted for the same coverage with the same limits from each place you request at quote. If you are not happy with any of the rates quoted you can then change around the variables of the policy.

If you request a higher deductible for your comprehensive and collision coverage this should help lower our car insurance cost. After discussing your car with an insurance agent you might discover it is not worth having full coverage on it anymore. If you lower your car insurance coverage, this will in turn reduce your rates.

You might decide the insurance rates are just too high for you because of the car type you have. If you cannot afford this high of insurance rates it might be time to change cars. Buy a car that has a lot of safety features and is in lower rating category and you should get a better rate.

Have a good credit history. This will allow the insurance company to feel more secure that you are going to pay your payments on time. If your credit history shows that you have not always paid your bills on time your rates are likely to go up instead of down.

Maintain a good driving record. The better driver you are and the fewer claims you make, the lower the premium should be for you. A clean motor vehicle record cannot only allow you a better rate but may make you eligible for a safe driver discount.

Discounts are a great way to lower your rates. There are discounts available for a variety of reasons. If you are a safe driver, if you have safety features in your car and/or if you have anti-theft devices installed in your vehicle you should be eligible for one or more discounts. To find out what discounts apply to you simply ask your agent.

These are all reasonable ways in which you can lower your rates. Shopping around for insurance or cleaning up your credit history might take some time but the other ways really do not. Now that you know how to lower your insurance rates what are you waiting for? Go out and do it!

Auto Insurance Rating Factors

A common question among all insurers is why do my rates go up? What is involved in changing my rates? Figuring out the factors that are used by various insurance companies to calculate rate increases and decreases can be difficult to understand but luckily not impossible.

All insurance companies do not have to the same rate increases at the same time.Insurance companies can do this because they use different risk assessors or variables for deciding about rate increases and when they are going to happen. This being true, it is still found that most companies typically use the same concept when factoring out rates.

If you ask an insurance agent how exactly the rates go up or why it might be hard for them to explain. This is because most insurance companies have devised their own mathematical algorithm. The company then feeds the insured’s information into a computer which checks through information and spits out an answer. This algorithm itself is much too complicated for the average insurance representative to discuss.

What the computer basically does is add and subtract different factors and points to come up with a final number that matches with a value. That value points to what the rate increase or decrease should be. How is this value determined?Many insurance companies use the information or propositions found in the Insurance Services Office (ISO) manual.

The ISO is a statistical and actuarial reporting group. The manual they publish is used by many insurers and agents. This manual helps the insurance company to assign a certain point value to each infraction that a driver acquires.This then becomes part of a company’s algorithm.

This complex way in which to factor rates may be too much for a lay person, such as you or I, to understand but it is indeed understood by the people that set it in place. To make sure that the insurance companies are rating people properly they must file their rates with each state’s insurance department. In this report they must include how they determined their rates as well.

If you are now thoroughly confused about the rating system, the algorithm and/or the filing of the rates you can contact your state’s insurance regulator for more information. A state’s regulator for this is usually, but not always, called the Department of Insurance. Never fear looking up these regulatory departments online is much easier than understanding how the rating system is set up.

Florida No-Fault Insurance

No-Fault insurance is different for each state that has chosen to require no-fault auto insurance. Understanding your state’s car insurance laws will allow you know how to place a claim and with whose insurance company. This article will look at the Florida required no-fault auto insurance.

The Florida no-fault system really is in regards to medical payments. This means the insurance company covering your car will make payments for your bodily injury claims regardless of who was at fault in an accident. The property damage done to your vehicle should still be covered by the at-fault party.

Florida Law requires that motorist carry a minimum of $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL) if you own a motor vehicle in Florida. This law applies to self-propelled vehicles, with four or more wheels that are both registered and licensed in the state of Florida. Auto insurance must be carried continuously throughout the registration period of the vehicle.

If you are a seasonal or part-time resident of Florida, meaning living in this sunny state at least 90 days of the year, your vehicle is required to carry both the PIP and PDL Florida insurance on it. The Florida Department of Highway Safety and Motor Vehicles (www.hsmv.state.fl.us) does not need the 90 days to be consecutive to require this insurance on the vehicle.

It is always recommended to carry bodily injury insurance, even if it is not required. In fact if you have been involved in an accident you will likely be required by the state of Florida to carry bodily injury liability coverage of at least $10,000 per person and $20,000 per occurrence to comply with the Financial Responsibility Law.

Florida lawmakers designed the car insurance to be purchased this way to help reduce lawsuits between drivers. With PIP coverage, if you get in an automobile accident it helps pay for reasonable and necessary medical expenses for you and your passengers, up to the limits of your PIP policy. This coverage also extends to your child while riding a school bus.

In Florida, PIP coverage protects you while in your own or someone else’s vehicle. For accidents occurring in Florida, PIP covers you and members of your household who do now own their own vehicle, certain passengers who lack PIP, and certain licensed drivers who drive your vehicle with your permission. It will cover only you and members of your household for accidents occurring outside Florida but within the United States or Canada.

Property Damage Liability (PDL) covers for certain damage, up to the limit of the policy, that you or anyone covered under your policy cause to another person’s probably through the use of an automobile. The PDL coverage is only for damage which you or those insured under your policy are legally liable for. In Florida the term property is not limited to another vehicle but can also include a fence, building or pole.The terms of your policy will determine whether your PDL coverage will apply to anyone using your vehicle or just those named on your policy.

PIP and PDL are required by the state of Florida but there are other optional insurance coverages that a Florida car owner can add to their policy. These include bodily injury liability, collision, comprehensive and uninsured/underinsured motorist bodily injury. Look for future articles on these Florida policy coverages.

With the required coverage of PIP in Florida you are covered for medical payments whether you are at fault or not in an accident. Thus medical claims would go through your own insurance company; up to the limits of your policy no matter if you were found to be the responsible party for the accident or the innocent victim.

Your PDL coverage covers another person’s vehicle or property when you are at fault for damaging it. So if your vehicle is damaged in an accident which the other driver is found to be at fault for, you can place a claim through their PDL insurance. If your vehicle is hurt and you are at fault, you would need to have collision coverage on your vehicle in which to make a claim with your own insurance company.

Knowing what insurance is mandated by your state is important when buying car insurance or moving to a new state. Understanding how the insurance you purchased for your vehicle works is important so that you know who to make a claim to if you are in an accident. If you do not understand the policy you currently have, call your insurance agent and ask them to go over it with you.

How Claims Affect Insurance Premiums

CarInsurance.com wants you to pay the least possible premium for your auto policy. Our learning center is committed to giving you information that will help save you insurance premium dollars.

Here are some explanations about how claims affect your premiums. We will try to explain what parts of a claim impact rates and underwriting.

Auto claim premiums are affected by three main factors:

• ISO Symbols
• Driving Record
• Insurance Fraud

ISO Symbols

Insurance companies must have a way of determining what it will cost to repair any type of vehicle in a qualified body shop once an accident has occurred.

To achieve this goal, insurance companies and agents subscribe to a service provided by a company called “Insurance Services Offices, Inc.”, or “ISO”. This service rates every vehicle produced in the USA and throughout the world with a symbol, called an “ISO symbol”. The ISO symbol is related to the value of the vehicle. The higher the symbol number, the higher the insurance premium cost and the higher the parts cost, and for a body shop to repair.

These symbols are built in as part of the insurance company’s computer rating system, (your insurance premium quote), which agents and companies use to determine the premium amount required for the auto policy. Insurance companies look at this factor as a basis for the premiums you pay.

Example ISO symbols for 2005 vehicles:

• 6 - Dodge Caravan SE 4 dr. Wagon
• 10 - Mercury Sable GS 4 dr. Sedan
• 16 - Honda Accord EX 2 dr. Coupe
• 25 - Audi A8 Quattro 4 dr. Sedan

In general, the higher the vehicle cost, the more expensive to repair, and a higher policy premium cost required. The higher your ISO symbol, the higher exposure for an insurance company after a claim. Be aware that some companies use much more complex rating systems that may use the ISO symbol as a basis, but internally they use their own claims history to determine the proper factor or symbol to charge.

Driving Record

The second main factor which affects auto claims and therefore insurance premiums comes from your driving record. Your premiums are based upon a rating system which is filed and regulated by the state or country where you live.

Almost all insurance company premiums are based upon an “allocation” type of rating system. This system is set up in order to allocate policy premiums fairly and is based upon several factors, but one of the main factors statistically is: How safe are you in your driving record? Are you the type of driver that is accident prone? Does your driving record indicate that you will be a driver who creates auto crash claims?

When any person has an accident or a claim, the cost which the insurance company must allocate to auto policy premium is more than just the cost of repairing the vehicle.

The salary and benefits of the claims adjuster is part of the cost. His vehicle cost is involved. The wages and benefits of the person who takes your telephone call to report the claim is involved. The cost of building and equipment required to provide offices for claims adjusters, and related personnel is involved. All costs must be allocated based upon a driver’s statistical likelihood of creating claims. Insurance premiums are designed to highly reward safe drivers. A claims free driver, will pay less than a driver with claims. Unless other factors or discounts can show that it is not a trend. Like it or not, this provides considerable incentive to not be a careless driver.

Insurance Fraud

Insurance fraud is a third major factor in how auto claims affect insurance premiums. There are many types of car insurance scams. They can even involve people you would normally trust such as Doctors and Lawyers. Here is a list of common scams.

• Staged Rear-End Car Accidents: A scam driver will quickly get in front of an innocent driver and then slam on their brakes causing a rear-end collision. The scam driver will collect money for his collision damage, and then will fake medical injuries to collect even more.
• Adding Damage: Whether staged or not; after an accident, a scam driver will go to another location and cause extensive damage to their vehicle, then claim that the damage happened during the original accident.
• Fake Helpers: Scam helpers will wave an innocent driver into traffic, but then crash into the innocent driver. When the claim is filed, the scam driver will deny waving anyone into traffic. Another way fake helpers try to scam people and insurance companies is by offering to help an innocent driver find an auto repair shop, doctor, or lawyer. In this example, everyone is in on the scam. The body shop charges you enormous rates, the doctor and lawyer also lie to collect more.

To summarize; ISO symbols, driving records, and fraud are major factors in determining insurance premiums when it is time to renew your auto policy. An auto claim will affect your insurance premiums. We wish we could say one accident will cost XX amount more and 2 claims will cost XX amount more, but we cannot. Rating systems are too complex.

A common question is should I report it or pay the claim myself. Typically if a claim is $750 or more it is economically better to report it, unless you have multiple claims in 12 months. The change in insurance premiums are less than the amount you spend (up to $750). We report all claims in our household because that is the reason I am insured. I want the protections I am paying for with my auto insurance premiums.

Always drive defensively, use common sense, strive to avoid accidents, injuries, and claims. At CarInsurance.com you can check your premium with the numerous companies they represent. You can compare quotes by entering in your information along with one claim, two claims, etc. and see the best possible policy for your premium dollar. Enter your zip code above.

What does liability insurance protect?

You would probably understand the sentence if I said, “you are liable to be liable”. Just the word “liability” seems to provoke a cautious response in most of us. But this is a word that has a double meaning in the English language.

The word liable has the meaning of “there is a possibility” such as the phrase, “you are liable to be upset”. There is a nuance of “could be” or “maybe” involved.

Used in the world of insurance, it has the meaning of “owing”, related to the word “fault”. It is also related to the word “responsibility”. Liability for something means that some condition or event occurred which put an individual or company into a position of being required to fulfill a legal responsibility set up by law, this could be a state or federal statute.

This responsibility is usually a financial type of requirement because, again, a condition or event occurred that caused law to become involved. That law then requires a response from the one responsible. Seems like a play on words doesn’t it?

Most laws in society are legislated into existence for the purpose of enabling people to function in the most harmonious possible environment. Most of the time this is true; those laws that become cumbersome or burdensome to society will usually, eventually be rejected.

The laws in most states of the USA, and in most countries around the globe require a vehicle owner to purchase and carry an insurance policy for your automobile, truck, boat, whatever you are driving. A part of the policy fulfilling the legal requirements of law is the liability portion. An insurance policy is a legal contract between you and your insurance company. That part of the policy covers “the other party”.

If you or I gets into an accident (unfortunately it happens) someone will usually be “at fault”. The policeman at the scene of the accident normally determines this as he gets the facts and fills out the accident report. The one at fault may get a ticket for causing the accident or for driving carelessly. There are many possible variations of this scenario.

So, both parties are carrying auto insurance policies. The one who is “at fault” has triggered the “liability” part of his policy, (his legal contract with the insurance company). Again, the insurance company has agreed to assume your risk of “liability” in exchange for your payment of the policy premiums.

Simplifying; you had a car accident with someone, you received the ticket from the police and were determined to be 100% “at fault” so your auto insurance policy pays for the damage you did to the other party’s vehicle. The part of the policy that does this is your “liability” insurance.

This is because, according to law, you are financially responsible for paying for the damage you did to the other party’s vehicle. If you did not have insurance you would still be “liable” for the damage done, but you then would have to take it out of your own savings account or other assets to pay for that damage.

Most people in society are not blessed with the capability to become completely “financially responsible” without the help of an insurance policy. It costs quite a bit to repair that beautiful Cadillac Escalade you or I just connected with now days. Even if you did have the cash in the bank, you would typically not want to put that cash at risk, you would much rather pay the premiums on an auto insurance policy to fulfill your duty to the law, and to society.

I have not brought up bodily injury liability in case you hurt another driver or his passengers or the passengers that might be riding in your car. In some states there is a “no-fault” provision for your medical expenses up to a predetermined limit; costs going above that would trigger your liability coverage to pay for excess medical expenses of the injured party(s). Depending upon the laws of your state this also could put you into a situation where you owe an injured party due to becoming legally (statutorily) liable.

In the world of driving, no one goes out to the car in the morning planning on having an auto accident. Keep the financial burden from hanging over your head and purchase an insurance policy that will protect you for the actions where you are liable.

Understanding How Your Credit History May Affect Your Car Insurance Coverage

Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer's credit history behaviors and expected claims that may occur.Therefore, they feel that people with better credit behavior are less likely to have severe insurance losses.

Many insurance companies still use your age, driving history, type of vehicle, andwhere you live, in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

The companies that do use credit scoring will still use other factors in determiningyour premium. They will also use your age, driving history, type of vehicle, whereyou live in determining how much you should pay for your insurance.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair Credit Reporting Act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." This can be found at http://www.ftc.gov/os/statutes/fcra.htm

If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated loss. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.

Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

• Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
• Past payment history: the number and frequency of late payments and the days betweenthe due date and late payment date.
• Length of credit history: the amount of time you have been in the credit system.
• Inquiries for credit: the number of times you have recently applied for new credit,including mortgage loans, utility accounts, and credit card accounts.
• Number of open lines of credit: the number of credit cards, whether you use themor not.
• Type of credit in use: major credit cards, store credit cards, finance company loans,etc.
• Unused credit: how much you owe compared to how much credit is available to you.

Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.

Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.

Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.

Should I Buy Rental Car Insurance?

Rental car agencies have a menu of insurance policies they would like to sell you. While each policy could be of some benefit under the right circumstances, you should review each plan (its provisions, limitations, and exclusions) before making a purchase. It is a good idea to request the detailed information from an agent at the rental office, as most companies only provide a summary on their Web sites.

Keep in mind; you may not need to buy this additional car insurance because you have auto insurance from your own car insurance company. Generally speaking, when you rent a car, the liability coverage limits you have in your own auto insurance policy remain in effect with the same limits. In addition, the comprehensive and collision coverages you have in your own auto insurance policy remain in effect with the same deductibles. You do have comprehensive and collision coverage don't you? See our article, "How Much Car Insurance Should You Buy?" for a listing of coverage types and definitions.

You may also have some kind of additional auto insurance coverage through your credit card but it is important that you check your credit card information for specific details. Some cards only offer coverage if you rent your car from a particular agency. Some limit the days for which coverage is available. Some will only provide coverage for certain types and/or classes of cars. With some cards, the coverage is not automatic and you must enroll in a program to get coverage. Some cards that advertise automatic rental insurance really only reimburse you for the deductible that you would have to pay under your regular insurance policy. Still others may provide only collision and comprehensive coverage, leaving you exposed for personal injury or property damage to others. Rental car agencies typically offer liability coverage in two parts - a supplemental liability policy protects against claims from others and a Loss Damage Waiver (LDW) covers the rental car. LDW is not technically insurance; rather, it is a company's agreement not to hold the consumer liable for loss from all or part of any damage to merchandise.

Before you rent a vehicle, realize the charges you could be responsible for and how these charges are covered or not covered by both your own auto insurance policy and the car insurance the rental company is offering.

If you suffer a loss that is not covered under your auto policy, check your other insurance policies. For example, if personal property has been stolen from your rental car, it may be covered under your homeowners or renters policy. Similarly, certain medical policies may cover costs of injuries not covered by your car insurance policy.

Simple Steps to Filing Your Car Insurance Claim

Having even a teeny-tiny car accident can be one of life's least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.

They aren’t really accidents. They are more of an incident. Usually they are an incident that you would like to forget.

• Understand your policy before a loss, sit down and carefully read your insurance policy. Call your agent or company if you have any questions about what is or is not covered.
• Make sure everyone is okay and check to see if anyone needs medical attention. Even if your injuries are minor, you may still want to have them checked out at a hospital or with your family doctor. Minor injuries can become major, long-lasting injuries.
• Exchange information when you are involved in an accident, get the other driver's name, address, phone number, insurance carrier, and insurer's phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.
• Identify witnesses and ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.
• File an accident report and contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff's offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles' web site
• Notify your insurer by contacting your insurance company about the accident as soon as possible. An insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver's insurance company handle the repair or replacement of your vehicle. If you use the other driver's company, you will not have a claim on your automobile policy and you will not have to pay a deductible.
• Do not release insurers too early. Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party's insurance company questions its policyholder’s negligence or offers an unacceptable settlement.
• Consider these settlement factors.
  • Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
  • Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
  • Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party's insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer's appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.

Which Car Should You Own To Keep Your Insurance Rates Most Affordable?

Do you consider the cost of insurance before you buy your dream car? You should. The Highway Loss Data Institute analyzes the cost to insurance companies from theft, collision, and injury claims as they relate to cars. They look at the color of the cars, how many doors they have, and even break them down type.

The Highway Loss Data Institute is a nonprofit public service organization. It is closely associated with and funded through the Insurance Institute for Highway Safety, which is wholly supported by auto insurers. HLDI gathers, processes, and publishes data on the ways losses vary among different kinds of vehicles.

4- Door cars have a 93% less chance of having a claim related to theft than their sibling 2-Door cars. Buy a Buick LeSabre and have relatively no chance of a theft loss. Compare that to the convertible Chevrolet Corvette that has over5 times the average theft rate. You may have known that. However, did you know that the Toyota Celica has a 67% higher chance of theft than the Toyota Camry?

In addition, even though the 2002 Lexus IS 300 gets a "best pick" rating from the Insurance Institute for Highway Safety for its performance on crash tests, previous years' models of the same car are some of the most costly in terms of collision claims. "One of the factors that come into play there is the cost of repairing an expensive vehicle," says Russ Rader, with the Insurance Institute for Highway Safety. These are the 2006 "best picks":

How Much Car Insurance Should You Buy?

Car insurance isn’t very exciting. Depending on which state you live in, it could be a smaller or larger piece of your budget than your neighbors across state lines.

How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it's about as useful as a stock broker's tip to buy low and sell high. It might be sound logic but it doesn't get you any closer to an educated decision. There are a few filters that need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? And fourthly, what are you protecting?

What is the minimum for your state?