Factors that will determine the cost of rebuilding your home:
Local construction costs determine the replacement cost of your home
The square footage of your structure
The type of exterior construction (brick, frame, metal, brick veneer)
The number of bathrooms (basic, custom, half, full)
The type of roof and material used
Other structures on the premises such as garages, pool house, other rooms
Improvements and additions. If you have made additions to your home since the inception of your homeowners policy, please contact your agent to increase the coverage of your policy.
Homeowners policies do not cover floods or earthquakes.
Please visit our website at www.firstmetroagency.com for additional information and submit a quote request form Homeowners Quote .
Tuesday, May 26, 2009
Sunday, May 17, 2009
Louisiana Homeowners Insurance
There is no better time than now to shop your current homeowners insurance. Multiple companies are writing new policies in South Louisiana. There are more companies now than in the past ten years that want, and in some cases need, to write new policies.
For Low Rates on Homeowners Insurance visit our website or contact us today www.firstmetroagency.com
For Low Rates on Homeowners Insurance visit our website or contact us today www.firstmetroagency.com
Monday, April 27, 2009
Drivers are more distracted than they realize
Drivers are more distracted than they realize
by MSNBC.com
Using gadgets while you're driving can be a very bad thing, but an expert on automotive distractions says using a gadget that watches you while you're driving can be a very good thing.
"People don't always understand the degree of distraction they may be exposing themselves to ... so the idea is to help people understand that distraction by providing them with feedback," John D. Lee, a professor of mechanical and industrial engineering at the University of Iowa, told me today. Lee outlines the magnitude of the problem in an essay published in this week's issue of the journal Science: More than 40,000 people die every year in motor vehicle crashes, and research indicates that failures of attention - including distractions or drowsiness - probably played a role in most of those crashes. Crashes and near-crashes are about three times as likely to happen when the driver is performing a complex task not related to driving (such as dialing a phone or even texting), and twice as likely during a moderately complex task (such as inserting a CD), Lee reported. As new technologies are introduced, the list of potential distractions keeps getting longer. Questions have been raised about dashboard GPS navigation devices, for example, as well as "green" energy-monitoring displays. Of course, most drivers overestimate their own abilities: In one survey, 88 percent of the respondents judged themselves to be safer than the average driver. And Lee said his own camera-monitoring research has shown
that teen drivers in particular "don't notice what they don't notice." In one case he studied, a driver looked away from the road for 6 seconds to tap out a text message on her phone, slipped out of her lane and came to attention only when the tires hit the curb. "When she actually saw
the video from the perspective of the camera, she was shocked to learn that she almost hit a telephone pole at 40 miles per hour," Lee said. So how does watching the driver help? Lee's method was to install a special camera system that saves video snippets for the 10 seconds before and after every abrupt movement on the road. "We took that video, put it on a CD, and then we had a 'report card' that shows the number of events that the teen driver experienced over time," he said. "It had a pretty dramatic effect on teens, in terms of the frequency
of these abrupt steering and braking events that are often associated with distractions."
After the feedback sessions, the number of events triggered by risky drivers declined 89 percent, Lee said, and the rate of risky driving remained low even six weeks later.
After-the-fact monitoring systems are being used to check up on motor-fleet drivers as well as teenagers, and Lee told me it won't be long before real-time monitors show up as well. "There are video cameras that are being developed and actually being put into cars - high-end Toyota and Volvo models, for example. [They're] video-based face-tracking systems that tell whether the driver is looking at the road or looking into the car," he said. Such a feature, sometimes known as a drowsiness warning system, would likely be wrapped up as an optional package with other advanced safety features such as forward collision avoidance, side collision warning and blindspot detection, Lee said. Among the oft-used catchphrases for these technologies is "intelligent transportation system" or "intelligent vehicle technology." Japan's Nissan Motor Co. even suggested that future cars could automatically sound an alarm and release "a stimulating mint fragrance" if they sense that the driver is dozing off. Can a car become too smart for our own good? Last year, my colleague Bob Sullivan wrote about computerized car-trackers that could record when and how far you're driving - as well as how many abrupt stops and starts you put your car through.
Some insurance companies are offering discounts for drivers who use the tracking devices, but privacy watchdogs worry that this sort of thing could eventually turn Big Brother into a back-seat driver. "Obviously there are issues of privacy that come into play as you collect these data about drivers," Lee said. "I think about that, but I really haven't studied that in detail." Instead, Lee is focusing on technologies that will help drivers help themselves. "Having your car know a little bit more about you and your behavior might well be worth it in terms of the number of lives saved," he said.
© 2009 msnbc.com
Drivers are more distracted than they realize by MSNBC.com
For low cost Auto Insurance and low rates on Louisiana Homeowners Insurance see http://www.firstmetroagency.com/
by MSNBC.com
Using gadgets while you're driving can be a very bad thing, but an expert on automotive distractions says using a gadget that watches you while you're driving can be a very good thing.
"People don't always understand the degree of distraction they may be exposing themselves to ... so the idea is to help people understand that distraction by providing them with feedback," John D. Lee, a professor of mechanical and industrial engineering at the University of Iowa, told me today. Lee outlines the magnitude of the problem in an essay published in this week's issue of the journal Science: More than 40,000 people die every year in motor vehicle crashes, and research indicates that failures of attention - including distractions or drowsiness - probably played a role in most of those crashes. Crashes and near-crashes are about three times as likely to happen when the driver is performing a complex task not related to driving (such as dialing a phone or even texting), and twice as likely during a moderately complex task (such as inserting a CD), Lee reported. As new technologies are introduced, the list of potential distractions keeps getting longer. Questions have been raised about dashboard GPS navigation devices, for example, as well as "green" energy-monitoring displays. Of course, most drivers overestimate their own abilities: In one survey, 88 percent of the respondents judged themselves to be safer than the average driver. And Lee said his own camera-monitoring research has shown
that teen drivers in particular "don't notice what they don't notice." In one case he studied, a driver looked away from the road for 6 seconds to tap out a text message on her phone, slipped out of her lane and came to attention only when the tires hit the curb. "When she actually saw
the video from the perspective of the camera, she was shocked to learn that she almost hit a telephone pole at 40 miles per hour," Lee said. So how does watching the driver help? Lee's method was to install a special camera system that saves video snippets for the 10 seconds before and after every abrupt movement on the road. "We took that video, put it on a CD, and then we had a 'report card' that shows the number of events that the teen driver experienced over time," he said. "It had a pretty dramatic effect on teens, in terms of the frequency
of these abrupt steering and braking events that are often associated with distractions."
After the feedback sessions, the number of events triggered by risky drivers declined 89 percent, Lee said, and the rate of risky driving remained low even six weeks later.
After-the-fact monitoring systems are being used to check up on motor-fleet drivers as well as teenagers, and Lee told me it won't be long before real-time monitors show up as well. "There are video cameras that are being developed and actually being put into cars - high-end Toyota and Volvo models, for example. [They're] video-based face-tracking systems that tell whether the driver is looking at the road or looking into the car," he said. Such a feature, sometimes known as a drowsiness warning system, would likely be wrapped up as an optional package with other advanced safety features such as forward collision avoidance, side collision warning and blindspot detection, Lee said. Among the oft-used catchphrases for these technologies is "intelligent transportation system" or "intelligent vehicle technology." Japan's Nissan Motor Co. even suggested that future cars could automatically sound an alarm and release "a stimulating mint fragrance" if they sense that the driver is dozing off. Can a car become too smart for our own good? Last year, my colleague Bob Sullivan wrote about computerized car-trackers that could record when and how far you're driving - as well as how many abrupt stops and starts you put your car through.
Some insurance companies are offering discounts for drivers who use the tracking devices, but privacy watchdogs worry that this sort of thing could eventually turn Big Brother into a back-seat driver. "Obviously there are issues of privacy that come into play as you collect these data about drivers," Lee said. "I think about that, but I really haven't studied that in detail." Instead, Lee is focusing on technologies that will help drivers help themselves. "Having your car know a little bit more about you and your behavior might well be worth it in terms of the number of lives saved," he said.
© 2009 msnbc.com
Drivers are more distracted than they realize by MSNBC.com
For low cost Auto Insurance and low rates on Louisiana Homeowners Insurance see http://www.firstmetroagency.com/
Monday, January 12, 2009
Flood Insurance
Three Important Facts About Your Flood Policy
A Standard Flood Insurance Policy is a single-peril
(flood) policy that pays for direct physical damage to
your insured property up to the replacement cost or
Actual Cash Value (ACV) (See “How Flood Damages
Are Valued”) of the actual damages or the policy
limit of liability, whichever is less.
1. Contents coverage must be purchased separately.
2. It is not a valued policy.
A valued policy pays the limit of liability in the event of a total loss.
For example: Your home is totally destroyed by
a fire and it costs $150,000 to rebuild. If your
homeowners insurance policy is a valued policy
with a $200,000 limit of liability on the building,
you would receive $200,000. Flood insurance
pays just the replacement cost or ACV of actual
damages, up to the policy limit.
3. It is not a guaranteed replacement cost policy.
A guaranteed replacement cost policy pays the
cost to rebuild your home regardless of the limit
of liability. For example: Your home is totally
destroyed by a fire and it costs $200,000 to
rebuild. If your homeowners insurance policy
is a guaranteed replacement cost policy with a
$150,000 limit of liability on the building, you
would receive $200,000. Flood insurance does not
pay more than the policy limit.
For a flood quote, www.firstmetroagency.com
A Standard Flood Insurance Policy is a single-peril
(flood) policy that pays for direct physical damage to
your insured property up to the replacement cost or
Actual Cash Value (ACV) (See “How Flood Damages
Are Valued”) of the actual damages or the policy
limit of liability, whichever is less.
1. Contents coverage must be purchased separately.
2. It is not a valued policy.
A valued policy pays the limit of liability in the event of a total loss.
For example: Your home is totally destroyed by
a fire and it costs $150,000 to rebuild. If your
homeowners insurance policy is a valued policy
with a $200,000 limit of liability on the building,
you would receive $200,000. Flood insurance
pays just the replacement cost or ACV of actual
damages, up to the policy limit.
3. It is not a guaranteed replacement cost policy.
A guaranteed replacement cost policy pays the
cost to rebuild your home regardless of the limit
of liability. For example: Your home is totally
destroyed by a fire and it costs $200,000 to
rebuild. If your homeowners insurance policy
is a guaranteed replacement cost policy with a
$150,000 limit of liability on the building, you
would receive $200,000. Flood insurance does not
pay more than the policy limit.
For a flood quote, www.firstmetroagency.com
Sunday, January 11, 2009
Homeowners Claim Checklist
Claim Recovery Checklist
Damage to your home can stressful, upsetting and, even hazardous. The following key steps from The Institute for Business & Home Safety (IBHS) can help homeowners recover safely following damage to their property.
Protect yourself
Always be careful when entering a damaged building. If there is serious structural damage, contact local officials before entering. Report downed power lines or gas leaks. Keep electricity turned off if the building has been flooded.
Protect your property
Take reasonable steps to protect your property from further damage. This could mean boarding up windows and salvaging undamaged items. Contact your Independent Insurance Agent to find out what is covered in terms of protection.
Report the loss as soon as possible
Contact your Independent Insurance Agent as soon as possible. Provide a general description of the damage and have your policy number handy if possible. Write down the adjuster's name, phone number and work schedule as soon as you have them.
Prepare a list. Keep damaged items or portions of them until the claim adjuster has visited, and consider photographing or videotaping the damage to document your claim. Prepare a list of damaged or lost items for your adjuster.
Keep receipts
If you need to relocate, keep records and receipts for all additional expenses. Most policies cover emergency living arrangements.
Return claim forms
After you've reported your claim, watch for claims forms. Fill out and return the forms as soon as possible. If you do not understand the process, be sure to ask questions and write down the explanation.
Cleanup
When starting the cleanup process, be careful, and use protective eyewear and gloves if available.
For More Information http://www.firstmetroagency.com/
Damage to your home can stressful, upsetting and, even hazardous. The following key steps from The Institute for Business & Home Safety (IBHS) can help homeowners recover safely following damage to their property.
Protect yourself
Always be careful when entering a damaged building. If there is serious structural damage, contact local officials before entering. Report downed power lines or gas leaks. Keep electricity turned off if the building has been flooded.
Protect your property
Take reasonable steps to protect your property from further damage. This could mean boarding up windows and salvaging undamaged items. Contact your Independent Insurance Agent to find out what is covered in terms of protection.
Report the loss as soon as possible
Contact your Independent Insurance Agent as soon as possible. Provide a general description of the damage and have your policy number handy if possible. Write down the adjuster's name, phone number and work schedule as soon as you have them.
Prepare a list. Keep damaged items or portions of them until the claim adjuster has visited, and consider photographing or videotaping the damage to document your claim. Prepare a list of damaged or lost items for your adjuster.
Keep receipts
If you need to relocate, keep records and receipts for all additional expenses. Most policies cover emergency living arrangements.
Return claim forms
After you've reported your claim, watch for claims forms. Fill out and return the forms as soon as possible. If you do not understand the process, be sure to ask questions and write down the explanation.
Cleanup
When starting the cleanup process, be careful, and use protective eyewear and gloves if available.
For More Information http://www.firstmetroagency.com/
Saturday, December 27, 2008
What is Full Coverage?
"Full Coverage" Doesn't Exist
If there's no such thing as "full coverage," how much insurance coverage do you actually need?
Posted October 23, 2007 at 7 a.m.
"I need full coverage" is one of the most common requests made to Progressive representatives when people call us to shop for auto insurance. Imagine customers' surprise when they discover there's no such thing as "full coverage" — or did you just experience that surprise yourself?
It's true: When people ask for "full coverage," there isn't one single type of insurance policy that meets that request. Sure, there are varying levels of coverage that offer more or less protection depending on what you need, but there's no single type of policy for full coverage, and it can mean different things for different people.
People often say they need full coverage when they know they need more than just Liability coverage. Often, that means you're making payments on your vehicle because you've financed or leased it, so you need at least Comprehensive and Collision coverages, too.
Companies that loan you money for a car, or companies that lease you a car, want to know that if the car is involved in an accident, you'll be responsible for the repairs and injuries involved and they won't. That's why they require you to have insurance coverage to protect damage to your vehicle and not just other vehicles.
You may know you need a certain level of coverage, but do you know how much coverage you need or what types of insurance options you should choose?
Different Levels of Insurance Coverage and Who Needs Them
The mix-n-match options for insurance coverage can yield numerous levels of protection, so for brevity's sake, we'll place the varying levels of what's often considered "full coverage" in the following categories: minimum, intermediate and extensive. Progressive offers all coverages mentioned below, though you may not be able to purchase all of them depending on what state your policy is in.
Minimum Level of Full Coverage
At the very minimum, when people ask for full coverage, they're are asking for Liability, Comprehensive and Collision coverages. With Liability, damage to other vehicles or injuries to other people are covered if you're at fault. With Comprehensive and Collision — often called Comp/Coll — damage to your own vehicle is covered, regardless of who's at fault. Since you pay a specific premium per coverage, this type of policy will cost more than if you just had Liability coverage.
Intermediate Level of Full Coverage
For intermediate coverage, people may choose Liability, Comp/Coll, Personal Injury Protection (PIP) and/or Medical Payments (MedPay), Uninsured/Underinsured Motorist (UM/UIM) and Uninsured/Underinsured Motorist Property Damage (UMPD), when applicable. This level of coverage goes one step beyond the previous level because it uses other types of coverage to pay for your own injuries or to protect you in situations where the at-fault party may not have insurance. With PIP and MedPay coverage, your injuries are covered, up to the amounts you select. And it doesn't matter who's at fault for an accident; you can use these coverages either way. UM/UIM and UMPD coverages protect you and your vehicle if another person is at fault for an accident but that person doesn't have insurance or doesn't have enough insurance to cover your damages and injuries. With UMPD coverage, you still have to pay a deductible, but it often is less than the Collision deductible you would pay.
Extensive Level of Full Coverage
For extensive coverage, you can choose all the coverages mentioned already, plus the other bells and whistles available, from Loan/Lease Payoff coverage to Roadside Assistance. If your vehicle is totaled or stolen and you make payments on it, Loan/Lease Payoff coverage pays up to 25 percent towards the difference between what you owe on the vehicle and what your insurance company will pay for a total loss in the event that the amount you owe is more than the settlement amount.
If you need more than Liability coverage for your automobile, there are plenty of options to cover you and your vehicle in almost any situation. There's no single type of full coverage, but your vehicle most definitely can be fully covered. When you're ready to choose what level of insurance coverage you need, we'll be ready to help you — online, over the phone or through an independent agent.
Posted by Progressive Insurance
We can help quote your auto insurance www.firstmetroagency.com
If there's no such thing as "full coverage," how much insurance coverage do you actually need?
Posted October 23, 2007 at 7 a.m.
"I need full coverage" is one of the most common requests made to Progressive representatives when people call us to shop for auto insurance. Imagine customers' surprise when they discover there's no such thing as "full coverage" — or did you just experience that surprise yourself?
It's true: When people ask for "full coverage," there isn't one single type of insurance policy that meets that request. Sure, there are varying levels of coverage that offer more or less protection depending on what you need, but there's no single type of policy for full coverage, and it can mean different things for different people.
People often say they need full coverage when they know they need more than just Liability coverage. Often, that means you're making payments on your vehicle because you've financed or leased it, so you need at least Comprehensive and Collision coverages, too.
Companies that loan you money for a car, or companies that lease you a car, want to know that if the car is involved in an accident, you'll be responsible for the repairs and injuries involved and they won't. That's why they require you to have insurance coverage to protect damage to your vehicle and not just other vehicles.
You may know you need a certain level of coverage, but do you know how much coverage you need or what types of insurance options you should choose?
Different Levels of Insurance Coverage and Who Needs Them
The mix-n-match options for insurance coverage can yield numerous levels of protection, so for brevity's sake, we'll place the varying levels of what's often considered "full coverage" in the following categories: minimum, intermediate and extensive. Progressive offers all coverages mentioned below, though you may not be able to purchase all of them depending on what state your policy is in.
Minimum Level of Full Coverage
At the very minimum, when people ask for full coverage, they're are asking for Liability, Comprehensive and Collision coverages. With Liability, damage to other vehicles or injuries to other people are covered if you're at fault. With Comprehensive and Collision — often called Comp/Coll — damage to your own vehicle is covered, regardless of who's at fault. Since you pay a specific premium per coverage, this type of policy will cost more than if you just had Liability coverage.
Intermediate Level of Full Coverage
For intermediate coverage, people may choose Liability, Comp/Coll, Personal Injury Protection (PIP) and/or Medical Payments (MedPay), Uninsured/Underinsured Motorist (UM/UIM) and Uninsured/Underinsured Motorist Property Damage (UMPD), when applicable. This level of coverage goes one step beyond the previous level because it uses other types of coverage to pay for your own injuries or to protect you in situations where the at-fault party may not have insurance. With PIP and MedPay coverage, your injuries are covered, up to the amounts you select. And it doesn't matter who's at fault for an accident; you can use these coverages either way. UM/UIM and UMPD coverages protect you and your vehicle if another person is at fault for an accident but that person doesn't have insurance or doesn't have enough insurance to cover your damages and injuries. With UMPD coverage, you still have to pay a deductible, but it often is less than the Collision deductible you would pay.
Extensive Level of Full Coverage
For extensive coverage, you can choose all the coverages mentioned already, plus the other bells and whistles available, from Loan/Lease Payoff coverage to Roadside Assistance. If your vehicle is totaled or stolen and you make payments on it, Loan/Lease Payoff coverage pays up to 25 percent towards the difference between what you owe on the vehicle and what your insurance company will pay for a total loss in the event that the amount you owe is more than the settlement amount.
If you need more than Liability coverage for your automobile, there are plenty of options to cover you and your vehicle in almost any situation. There's no single type of full coverage, but your vehicle most definitely can be fully covered. When you're ready to choose what level of insurance coverage you need, we'll be ready to help you — online, over the phone or through an independent agent.
Posted by Progressive Insurance
We can help quote your auto insurance www.firstmetroagency.com
Friday, December 26, 2008
12 Secrets your Car Insurer Won't Tell You
Knowing how the industry works can save you a lot of money and grief. Here are the secrets behind the premiums, and how you can save after an accident.
By MSN Money staff
Getting a good deal on auto insurance is hard enough. Keeping your premiums from rising? That can feel like playing a game where the rule maker refuses to tell you the rules.
Here are a dozen ways the industry works, with tips to help you save:
If you have good credit, you'll pay less. Almost all insurers -- including the top five -- pull your credit report. Why? Studies have shown a direct correlation between your credit score and the likelihood that you will file a claim. Insurers also know that if you pay your bills in a timely fashion and have had the same credit accounts for a long time, you're more stable than someone who pays late and frequently opens and closes accounts. They use this information to create your "insurance risk score," which is one factor that determines your auto-insurance rate.
Tip: Your insurance-risk score is not available to you, but it may be similar to your credit score. If you have unusual credit activity, wait a month for it to return to normal before buying auto insurance. If your credit history is shaky, clean it up as soon as you can.
Your car model affects your premium. You won't get these numbers from your insurer; in fact, you may not be able to get them at all. But the auto insurers do have a rating system for every car make and model. Most use a system devised by the Insurance Services Office, which starts with the cost of the vehicle and then factors in safety and theft data. Cars are given a rating from 1 to 27, and the higher the number, the higher your premium.
Tip: Look up your car's relative risk with MSN Money's comparison tool. If you're buying a new car, ask your insurance company about the difference in premiums for cars you're considering. Search online for the latest top 10 lists on the most expensive cars to insure, and the least.
Pay in full to avoid installment fees. "Fractional premium" fees are usually charged when you pay your annual premium in installments rather all at once. Payments usually are offered on a six-month, quarterly or monthly basis, but almost every insurance company charges an administrative fee for breaking up the payments. The more you break it down, the more those fees add up.
Tip: Ask about fees for paying in installments. If the fees are small enough, it may be worth it. Remember that insurance companies can cancel your policy for late payment, many times with minimal notification, so make sure you won't miss an installment. If you can pay the premium up front, it may simplify the process and save you a few dollars.
That Pearl Jam CD in your car isn't covered. Stolen or damaged personal items like compact discs aren't covered by your auto insurance.
Tip: You can file a claim on your home insurance. Most home-insurance policies will cover smaller, less expensive items such as compact discs. However, if you carry expensive items such as computer equipment, ask about a rider to your home-insurance policy. It's wise to take photos or video of any expensive personal items before they go missing.
Bad drivers will pay
You'll pay for your bad driving. The industry standard is to increase your premium by 40% of the insurer's base rate after your first at-fault accident. For example, if the company's base rate is $400, your premium will go up by $160. Not all auto insurers play by this rule, though, and some may increase your individual rate by 40%. Regardless of what formula they use, in the majority of cases, your rates will go up.
Tip: Some insurance companies have a "forgive the first accident" policy. The qualifying variables are wide-ranging, so ask your company if it has a forgiveness policy and how to qualify.
You'll pay for your friend's bad driving, too. If your friend borrows your car and crashes it, you'll have to file a claim with your insurance company. You'll have to pay any deductible that applies, and your rates will probably go up as a result of your claim.
Tip: If your friend didn't have permission to take your car, in most cases you won't be held liable for the damage. But if your friend is uninsured and causes damage that exceeds your policy limits, the injured party can come after you for medical and property-damage expenses. Best bet? Don't lend out your car.
Your car's real worth
The value of your "totaled" car may surprise you. Auto-insurance companies don't use the standard Kelley Blue Book or National Association of Automobile Dealers value. Instead, each company has its own proprietary list of car values, and most have specialized software for valuing cars in each region. They take into consideration the car's mileage and pre-accident condition.
The insurance company may also ask local dealers what they'd charge for a similar replacement car. However, the insurer will consider quotes from suburban towns as reasonable estimates, even if you live in the city. You might have to drive several hours to reach the cheapest dealer, just to save the insurance company money. And they might be quoted a better deal than you could get if you walked onto the lot.
Tip: If you disagree with your insurance company's value determination, there are several things you can do:
Next time, get "gap" insurance. It will pay the difference between what an insurer will cover and what you owe, which can be several thousand dollars.
If you have maintenance records that show you've had the oil changed every 3,000 miles and you've had the car checked routinely by a mechanic, present copies to the insurance company to show the car was in good condition. If you've been paying premiums on any special parts or upgrades, make sure those are included in the insurance company's evaluation.
Get price quotes on replacement cars from three dealers within a reasonable driving distance and submit these to your insurance company. Ask the insurance company for a list of dealers within a specific distance who can sell you an equivalent car for the value the company is claiming.
If you still aren't satisfied, you can step up the process and go to mediation or arbitration. Mediation involves presenting your case to a neutral party for help in reaching a compromise; arbitration is a binding decision. You can also, of course, take the issue to court.
Check into "diminished value." Say your car has been in an accident, but repaired. Is it worth less than the exact same car that hasn't been in an accident? It's a hot topic, but some say yes. In 14 states, you're allowed to file a claim with your insurance company for that lost value.
Tip: Thirty-six states and Washington, D.C., allow insurance companies to exclude payments for diminished value, so if you live in one of those states, you won't get to claim the loss. But in Florida, Georgia, Hawaii, Kansas, Louisiana, Maine, Maryland, Massachusetts, North Carolina, South Dakota, Texas, Virginia, Washington and West Virginia, you have a chance of getting a diminished-value payment. If you weren't at fault in the accident, you often can make a successful case against the insurance company of the driver who was at fault.
You may not owe sales tax on your replacement car. Twenty-eight states require auto insurers to pay for the sales tax when you replace your totaled vehicle with a new or used car: Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Vermont, Washington, West Virginia and Wisconsin.
Tip: Make the request; don't expect the insurer to offer to pay upfront. Even in states that do not require sales-tax reimbursement, you should request it. Many auto insurers will not deny the request because the policy requires that they make you "whole," returning you to where you were before the accident at no cost to you.
The tax will be calculated based on the pre-accident value of your car. If the insurance company values your car at $10,000, and you purchase a new car for $20,000, the tax will be calculated on $10,000.
Hit by an uninsured motorist? Try to "stack." Stacking uninsured/underinsured motorist (UM/UIM) coverages means collecting from more than one auto-insurance policy that you hold. Most states forbid this practice, but 19 states allow it or don't address it.
Tip: Check the language of your policy to see if stacking is allowed.
There are two scenarios for stacking: First, if you have multiple cars on your policy with UM/UIM coverage on each, you can collect the limit of your UM/UIM coverage under as many vehicles as necessary to cover full payment for damages. Second, if you have more than one policy with UM/UIM coverage, even if they're from two different insurers, you can make a claim under each policy until all your damages are recovered.
You can wait to add your teenager to your policy until he or she is licensed. You are not required to add your teenager to your policy just because he or she has reached driving age. In most cases, you can wait until he or she has a license -- or, if you're in a high-risk insurance pool, a permit.
Tip: Don't forget to tell your insurance company that you have a licensed teen. If you have to file a claim on his or her behalf, your insurance company is entitled to charge you back premiums from the date your teen received a license.
You must officially cancel your insurance policy when you switch insurers. Your policy most likely states that you can cancel your coverage at any time by notifying the company in writing of the date of termination. However, most people assume that if they decide to terminate the policy at the end of the coverage period, all they have to do is ignore the bill. The insurance companies don't see it that way. They will send you another bill for the next premium payment, and when you don't pay it, the company will cancel you for nonpayment. That goes on your credit record.
Tip: Call your insurance agent or the company and let him know you are canceling your policy. Give a specific date, or you may end up uninsured for a period of time. The company will send you a cancellation request. Most often, the form is already filled out and all it requires is your signature. Make sure you read it to check for errors.
You may have to prove to your former insurance company that you have new coverage. And if you've financed your car through a dealership, update the dealer on your new insurance information, because purchase contracts often require proof of coverage.
By MSN Money staff
Getting a good deal on auto insurance is hard enough. Keeping your premiums from rising? That can feel like playing a game where the rule maker refuses to tell you the rules.
Here are a dozen ways the industry works, with tips to help you save:
If you have good credit, you'll pay less. Almost all insurers -- including the top five -- pull your credit report. Why? Studies have shown a direct correlation between your credit score and the likelihood that you will file a claim. Insurers also know that if you pay your bills in a timely fashion and have had the same credit accounts for a long time, you're more stable than someone who pays late and frequently opens and closes accounts. They use this information to create your "insurance risk score," which is one factor that determines your auto-insurance rate.
Tip: Your insurance-risk score is not available to you, but it may be similar to your credit score. If you have unusual credit activity, wait a month for it to return to normal before buying auto insurance. If your credit history is shaky, clean it up as soon as you can.
Your car model affects your premium. You won't get these numbers from your insurer; in fact, you may not be able to get them at all. But the auto insurers do have a rating system for every car make and model. Most use a system devised by the Insurance Services Office, which starts with the cost of the vehicle and then factors in safety and theft data. Cars are given a rating from 1 to 27, and the higher the number, the higher your premium.
Tip: Look up your car's relative risk with MSN Money's comparison tool. If you're buying a new car, ask your insurance company about the difference in premiums for cars you're considering. Search online for the latest top 10 lists on the most expensive cars to insure, and the least.
Pay in full to avoid installment fees. "Fractional premium" fees are usually charged when you pay your annual premium in installments rather all at once. Payments usually are offered on a six-month, quarterly or monthly basis, but almost every insurance company charges an administrative fee for breaking up the payments. The more you break it down, the more those fees add up.
Tip: Ask about fees for paying in installments. If the fees are small enough, it may be worth it. Remember that insurance companies can cancel your policy for late payment, many times with minimal notification, so make sure you won't miss an installment. If you can pay the premium up front, it may simplify the process and save you a few dollars.
That Pearl Jam CD in your car isn't covered. Stolen or damaged personal items like compact discs aren't covered by your auto insurance.
Tip: You can file a claim on your home insurance. Most home-insurance policies will cover smaller, less expensive items such as compact discs. However, if you carry expensive items such as computer equipment, ask about a rider to your home-insurance policy. It's wise to take photos or video of any expensive personal items before they go missing.
Bad drivers will pay
You'll pay for your bad driving. The industry standard is to increase your premium by 40% of the insurer's base rate after your first at-fault accident. For example, if the company's base rate is $400, your premium will go up by $160. Not all auto insurers play by this rule, though, and some may increase your individual rate by 40%. Regardless of what formula they use, in the majority of cases, your rates will go up.
Tip: Some insurance companies have a "forgive the first accident" policy. The qualifying variables are wide-ranging, so ask your company if it has a forgiveness policy and how to qualify.
You'll pay for your friend's bad driving, too. If your friend borrows your car and crashes it, you'll have to file a claim with your insurance company. You'll have to pay any deductible that applies, and your rates will probably go up as a result of your claim.
Tip: If your friend didn't have permission to take your car, in most cases you won't be held liable for the damage. But if your friend is uninsured and causes damage that exceeds your policy limits, the injured party can come after you for medical and property-damage expenses. Best bet? Don't lend out your car.
Your car's real worth
The value of your "totaled" car may surprise you. Auto-insurance companies don't use the standard Kelley Blue Book or National Association of Automobile Dealers value. Instead, each company has its own proprietary list of car values, and most have specialized software for valuing cars in each region. They take into consideration the car's mileage and pre-accident condition.
The insurance company may also ask local dealers what they'd charge for a similar replacement car. However, the insurer will consider quotes from suburban towns as reasonable estimates, even if you live in the city. You might have to drive several hours to reach the cheapest dealer, just to save the insurance company money. And they might be quoted a better deal than you could get if you walked onto the lot.
Tip: If you disagree with your insurance company's value determination, there are several things you can do:
Next time, get "gap" insurance. It will pay the difference between what an insurer will cover and what you owe, which can be several thousand dollars.
If you have maintenance records that show you've had the oil changed every 3,000 miles and you've had the car checked routinely by a mechanic, present copies to the insurance company to show the car was in good condition. If you've been paying premiums on any special parts or upgrades, make sure those are included in the insurance company's evaluation.
Get price quotes on replacement cars from three dealers within a reasonable driving distance and submit these to your insurance company. Ask the insurance company for a list of dealers within a specific distance who can sell you an equivalent car for the value the company is claiming.
If you still aren't satisfied, you can step up the process and go to mediation or arbitration. Mediation involves presenting your case to a neutral party for help in reaching a compromise; arbitration is a binding decision. You can also, of course, take the issue to court.
Check into "diminished value." Say your car has been in an accident, but repaired. Is it worth less than the exact same car that hasn't been in an accident? It's a hot topic, but some say yes. In 14 states, you're allowed to file a claim with your insurance company for that lost value.
Tip: Thirty-six states and Washington, D.C., allow insurance companies to exclude payments for diminished value, so if you live in one of those states, you won't get to claim the loss. But in Florida, Georgia, Hawaii, Kansas, Louisiana, Maine, Maryland, Massachusetts, North Carolina, South Dakota, Texas, Virginia, Washington and West Virginia, you have a chance of getting a diminished-value payment. If you weren't at fault in the accident, you often can make a successful case against the insurance company of the driver who was at fault.
You may not owe sales tax on your replacement car. Twenty-eight states require auto insurers to pay for the sales tax when you replace your totaled vehicle with a new or used car: Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Vermont, Washington, West Virginia and Wisconsin.
Tip: Make the request; don't expect the insurer to offer to pay upfront. Even in states that do not require sales-tax reimbursement, you should request it. Many auto insurers will not deny the request because the policy requires that they make you "whole," returning you to where you were before the accident at no cost to you.
The tax will be calculated based on the pre-accident value of your car. If the insurance company values your car at $10,000, and you purchase a new car for $20,000, the tax will be calculated on $10,000.
Hit by an uninsured motorist? Try to "stack." Stacking uninsured/underinsured motorist (UM/UIM) coverages means collecting from more than one auto-insurance policy that you hold. Most states forbid this practice, but 19 states allow it or don't address it.
Tip: Check the language of your policy to see if stacking is allowed.
There are two scenarios for stacking: First, if you have multiple cars on your policy with UM/UIM coverage on each, you can collect the limit of your UM/UIM coverage under as many vehicles as necessary to cover full payment for damages. Second, if you have more than one policy with UM/UIM coverage, even if they're from two different insurers, you can make a claim under each policy until all your damages are recovered.
You can wait to add your teenager to your policy until he or she is licensed. You are not required to add your teenager to your policy just because he or she has reached driving age. In most cases, you can wait until he or she has a license -- or, if you're in a high-risk insurance pool, a permit.
Tip: Don't forget to tell your insurance company that you have a licensed teen. If you have to file a claim on his or her behalf, your insurance company is entitled to charge you back premiums from the date your teen received a license.
You must officially cancel your insurance policy when you switch insurers. Your policy most likely states that you can cancel your coverage at any time by notifying the company in writing of the date of termination. However, most people assume that if they decide to terminate the policy at the end of the coverage period, all they have to do is ignore the bill. The insurance companies don't see it that way. They will send you another bill for the next premium payment, and when you don't pay it, the company will cancel you for nonpayment. That goes on your credit record.
Tip: Call your insurance agent or the company and let him know you are canceling your policy. Give a specific date, or you may end up uninsured for a period of time. The company will send you a cancellation request. Most often, the form is already filled out and all it requires is your signature. Make sure you read it to check for errors.
You may have to prove to your former insurance company that you have new coverage. And if you've financed your car through a dealership, update the dealer on your new insurance information, because purchase contracts often require proof of coverage.
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