In fact, as household budgets tighten and salaries shrink or disappear completely, a new study by the Insurance Research Council (IRC) shows that many people may drop their auto insurance policies altogether due to unemployment, resulting in millions more uninsured drivers hitting the road over the next year.

Uninsured motorist coverage provides a financial safety net for many drivers, their passengers and even the pedestrians they encounter while behind the wheel. In the event they’re involved in an accident with an uninsured driver, those holding this type of coverage can easily submit a loss directly to their insurance company and get reimbursed for any loss suffered.

But without uninsured motorist insurance, dealing with damage, medical bills and other types of loss can be financially and emotionally devastating.

According to the National Association of Insurance Commissioners (NAIC), the average uninsured motorist claim runs in the vicinity of $1,500 for property damage and nearly $20,000 for bodily injury. That’s enough to wipe out any family’s savings account—if they have one.

The unemployed have even fewer resources to draw on in times of need.

As the percentage of uninsured drivers is expected to stretch to 16.1 percent by 2010 as a direct result of unemployment—an increase of almost two-and-a-half percent over 2007—we can each only hope and pray we’re never touched personally by unemployment and uninsured driving.

The penalties imposed by law may not be enough to keep many drivers insured—especially when forced to choose between putting food on the table and insuring the family vehicle.

The process seems so simple. Drive the car to a remote place, pour some gasoline on the seats and light a match, then go home and report the car stolen. Seems like a good idea – at the time.

Auto Insurance Companies Are
Smarter Than You Think

Then the problems start. Insurance companies have a long list of telltale signs that indicate arson instead of larceny. This includes things like being behind in auto loan payments or lowering the deductible on the car insurance policy shortly before the incident. Why would a thief go to the trouble of stealing a car only to burn it a few days later?

Instead of cashing a check a few weeks later, these car owners are frequently arrested for arson, insurance fraud and destruction of property. Now, in addition to financial problems, legal problems including fines and jail time loom.

Money problems are tough, and growing more common each day. But doing something illegal is never the answer, and will in fact only lead to even more serious problems.

Most people consider five factors when choosing an auto insurance company – interaction, policy offerings, price, billing and payment, and claims. 

Competition is tight between companies, in an industry where just one percent of market share represents $1.6 billion in premiums.

Fortunately having such a highly competitive marketplace means that each insurance provider has to keep improving their policies and service to meet growing customer expectations.  It seems that they’re succeeding – overall customer satisfaction keeps statistically improving too.

Insurance companies have discovered that adding coverage and features keep consumers happy.  That’s why new services have appeared, like electronically monitoring your teen’s driving habits or paying veterinary bills if your dog is also injured in a car accident.

Since communication is important, you can also expect more contact from your car insurance company with offers of annual policy reviews, notifications of policy discounts, and internet access to policy information.

So yes, odds are that if you’re a good driver with good credit and you’ve been with an insurance company for a long time, you’re probably getting a great deal.  But don’t get complacent – regularly pricing the competition, at least once every two years, will keep your agent on her toes.  You might even find that another company has a new policy feature that especially fits your family. 

The National Insurance Crime Bureau (NCIB) just released its annual car theft report, Hot Wheels 2008, which identifies the top 10 most stolen vehicles:

1.    1995 Honda Civic
2.    1991 Honda Accord
3.    1989 Toyota Camry
4.    1997 Ford F-150 Series Pickup
5.    1994 Chevrolet C/K 1500 Pickup
6.    1994 Acura Integra
7.    2004 Dodge Ram Pickup
8.    1994 Nissan Sentra
9.    1988 Toyota Pickup
10.   2007 Toyota Corolla

The good news is that motor vehicle thefts are down compared to last year.  But there are still things you can do to make sure your car doesn’t become a statistic.

• For starters, lock the car and take the keys!
• Use any anti-theft devices that came with the car.
• Turn on any audible or visible warning device.  While most people ignore them, thieves still don’t like the risks associated with drawing any attention.
• Install a “kill switch”, fuel cut-off or smart key system.  If a car is impossible to start, odds are thieves will move on to another topic.

Make sure you tell your insurance agent about any anti-theft devices you add; you could enjoy the extra benefit of lower auto insurance rates!

The National Insurance Crime Bureau now has a database that lists cars that have been declared a total loss or reported as stolen. Just enter the VIN number of the vehicle, and you’ll know if your car has a history filled with red flags.

While the database is fairly comprehensive, it only includes results reported by members of the NCIB, so your auto may not show up there. Still, it’s one more free way to protect yourself before buying a lemon.

If you do buy one of these lemons, not only can you have a myriad of mechanical problems, you can have one heck of a hard time getting auto insurance on that car. Worse, if the car you bought has been reported as stolen, you will be investigated and the car will most likely be returned to the original owner, leaving you both car-less and money-less.

So, before you get the cashier’s check for that new sports car, take 60 seconds and search the VIN number. Hopefully it will come up clean, and you’re good to go. If not, send an email to the NICB to thank them for saving you from a nightmare.

The IIHS studied data from 12 states to reach its conclusions, and estimates that 200 lives a year could be saved by strengthening roof requirements. Additionally a huge number of serious, long-term injuries could also be avoided.

Experts from the manufacturers, other organizations, and the government will argue these results for months, but in the meantime the impact for consumers could be huge. Right now actuaries at insurance companies across the country are starting to incorporate these results in their risk forecasts for each of the vehicles identified in the IIHS report.

People owning 2000-2004 Nissan Xterra’s or 2002-2005 Jeep Liberty’s can celebrate that their vehicle’s top performance could lead to a rate reduction because of a lower likelihood of injury or death in a roll over crash.

Conversely, owners of Jeep Grand Cherokees or Ford Explorers may find their insurance goes up a little, since the roofs on these cars fared among the worst performers.

If you’re planning to buy an SUV, new or used, keep these findings in mind because they absolutely will affect your auto insurance rates, but more importantly, they could make a difference in keeping your family safe while you drive. Check out the complete Insurance Institute for Highway Safety Roll Over Report before you make your final decision

Of course this information is extremely important to car insurance companies, because awards involving critically injured children frequently allow for lifetime medical costs, and young children could expand that coverage period by an extra twenty years.

So, which guidelines cover your child?

If your child is less than a year old and under 20 pounds, make sure they sit in a rear-facing car seat, and stay that way as long as possible. Usually most starter car seats can handle children until they reach 30 pounds.

Next step for a child is to face forward, usually once they are over a year old and weigh more between 20-40 lbs. The forward facing seat and harness should be used until the child outgrows it.

Once a child exceeds 40 lbs, instead of using weight as the deciding factor, switch to height. A child under 4’9” should use a booster seat until they grow tall enough to no longer require it.

Finally if your child is taller than 4’9” and weighs at least 80 lbs, it’s time to switch to a seat belt, though the child should remain in the back seat until they are 13 years old.

Keeping your child safe is a huge responsibility. I hope this information helps you handle at least a tiny part of that load.

Thirty-four vehicles were selected as top safety picks for 2008, up from just 13 last year. Ford and Honda had the most spots on the list, while the Toyota Tundra claimed the title of the first pickup truck to earn the IIHS designation.

The goal of the IIHS is to reduce or eliminate accidents and injuries from accidents. To qualify for a Safety Award in 2008, each vehicle must have electronic stability control, perform well in frontal and side impact crash tests, and have well designed seat and head restraints for rear crash protection. Federal law will require all vehicles to have electronic stability control (EHS) by 2012, but many manufacturers are making it a standard feature now, which significantly impacted the number for Safety Award winners. Experts believe that EHS can reduce single vehicle fatal accidents by over 50%. What a great reason to get a new vehicle with that feature!

A critical factor in auto insurance rates is how well it performs during a crash including protecting the occupants and the cost of repairs. Before you buy your next vehicle, see what the IIHS has to say about it first. This simple step can help you save a lot on car insurance premiums, but, more importantly, can help keep you and your family safe during an accident.

Now owners of vehicles like the Toyota Prius, Honda Civic Hybrid, or Mercury Mariner Hybrid can expect a 10% discount in their auto insurance quotes from Travelers to add to the money they save on gas. It’s a smart move for Travelers to secure a new and growing market which is expected to represent 4.6% of new vehicles by 2010.

In addition to the Hybrid discount, Travelers announced insurance programs allowing businesses to replace damaged equipment with safer, more environmentally-friendly equipment, as well as policies designed to fit the special needs of emerging technologies, such as wind farms.

Families owning homes in hurricane prone areas will also benefit from Travelers’ support of the National Hurricane Survival Institute which promotes hurricane preparedness and the Institute of Business and Home Safety which offers ways to minimize property damage during storms. Many insurance companies already offer discounts on homeowners insurance to property owners who take extra steps to reduce storm related damage through tactics like storm shutters or reinforced roofs.

Whether you believe in global warning or not, anything that takes care of our world in a positive way without causing other types of damage is a good thing. Hopefully other insurance companies will follow Traveler’s lead and provide incentives through auto insurance, home insurance, and business insurance which will encourage everyone to make green choices in their lives.

The National Insurance Crime Bureau (NICB) recommends a layered approach to protecting your car from thieves.  Here are some ways to discourage thieves from helping themselves to your car.

1.  Don’t leave your keys in the ignition.  Surprisingly, many people will do this, thinking that they’ll only be gone for a minute, but a minute is all it takes a professional to steal your car.

2.  If you are parking in a parking lot, park under the light.  That increases the risk of a thief being seen while forcing their way into your car, and could encourage them to go after another target.

3.  Close your windows and lock your doors, even if the car is parked in your driveway.  Even if you live in a safe neighborhood, this could lull you into a false sense of security and make your careless.  Thieves count on that.

4.  If you have a garage, use it and lock it!  If you don’t have a garage, park front end first for a front-wheel drive car, and back in if you have a rear-wheel drive car.

5.  Always turn your wheels to the side and set the emergency brake; it will make your car harder to tow if that’s the thief’s plan.

6.  Don’t hide a spare key in the vehicle – the thieves know all the places to look to find it.

7.  Consider spending a few dollars on some vehicle protection items, like an ignition kill switch which is spliced in your ignition and disables the vehicle.  Hood locks will prevent access to engine parts, and a steering wheel lock won’t let anyone turn that wheel their way.

8.  Vehicle alarms do work.  Thieves do not like lots of noise drawing attention to them in the act.  Just remember to learn how to work your alarm system so you won’t wake up the neighbors at 2 a.m.

9.  VIN etching involves permanently etching the vehicle identification number onto the car’s windows and windshield.  Before a thief could sell the car, he would have to replace everything, which just wouldn’t be worth it when there are easier vehicles all around.

10.  Go the whole route and install a Vehicle Tracking Device, something like ADT Auto or On-Star into your vehicle.  That way if it’s lost or stolen it can be instantly tracked and even disabled, literally stopping the thief in his tracks.

Things like VIN etching and Vehicle Tracking Devices can actually lower your auto insurance rates.  Make sure to ask if a discount is available when you are comparing car insurance quotes. 

It only takes a few minutes to do many of these things, yet they can make the difference between driving your car home or having to file a police report.  Taking the time to protect yourself is always worth it in the long run.