American consumers submitted 38.8 million online quote requests and purchased a record 2.8 million auto insurance policies online last year, according to a recent study conducted by comScore.

Both requests and purchases were up more than 20 percent versus the previous year as consumers looked for new ways to save on auto insurance during the ongoing recession.

Many industry insiders also believe insurance, like many other services, is becoming commoditized.

In other words, the average consumer no longer perceives any difference between insurance companies or products, and makes their buying decision based on ease of purchase and price.

Is that an accurate representation of what auto insurance has become?

It depends on who you ask. Companies who already do business solely online will tell you insurance is just a pricing game…the lower the premium, the better the policy.

Companies who sell exclusively face to face with captive agents will tell you a different story…as they scramble to get online.

State Farm has gone so far as to create a website called whyagent.com, aimed at convincing you to go with an agent while also offering an online quote, which likely gets routed to a local agent in your area based on the address you provide.

Unfortunately, State Farm only has one policy to offer their insured, which leaves them vulnerable to the client who surfs the web to “shop their rate.” They clearly recognize the value of using the internet to snag more customers, but cannot do much in the way of offering pricing options…other than reduce coverage.

Can’t you get the best of both worlds?

Sure. In order to get the ease of use and the rate comparisons, you can continue to shop online, but if you prefer an actual human being, you can search for a local independent agent who offers online quotes.

An independent agent will be able to shop your rate with several insurers at one time to ensure you get the best deal. That’s a far cry from the limits of a captive agent and the impersonal touch of direct insurers.

What should you look out for?

Shopping and/or purchasing insurance online can be an easy way to obtain insurance and be relatively certain you have a fair rate. It’s certainly a better choice than purchasing from a captive agent (Farmers, Allstate, State Farm), who can all only offer you one policy at one price.

However, be sure to at least speak with an insurance agent about how much insurance you need before you make a purchase. At the end of the day, you need to make sure you’re properly covered, and the best way to do so is to work with an agent.

Is the trend likely to continue?

comScore noted that 35 percent of respondents who had not purchased insurance online would be likely to do so in the future, and that trend only looks to be rising.

But be sure to supplement your online shopping with the knowledge of a local independent agent if you’re not sure what liability limits you should have, or if you need things like physical damage coverage, PIP, gap coverage or med pay.

Make that call even faster if you don’t know what those coverage types are!

Although car insurance rates are cheaper for women than men, new technologies seem to be making teen girls a greater risk behind the wheel, according the Allstate 2009 State of Teen Driving survey.

Of the 1,063 teens who participated, 51% of girls said they were likely to use a cell a phone to talk, text, or e-mail while driving, compared to just 38% of male respondents.

And 84% of girls said they were likely to adjust music selections or volume while driving, versus 69% of boys.

Technology aside, 48% of girls said they were likely to speed more than 10 mph over the limit, compared to 36% of boys.

Additionally, 16% of girls described their driving as “aggressive,” nearly double the 9% rate seen in 2005.

Girls are also less likely to speak up if they feel the person behind the wheel is driving unsafely.

Of course, women typically have fewer accidents than men, so their car insurance rates are lower.  And there’s a good chance the boys in the survey are fibbing more than the girls.

But it appears as if the gap is narrowing, so don’t be surprised if you’re stuck paying an arm and a leg to insure your 16-year old daughter.

To keep car insurance rates in check (car insurance is expensive for teens), the best thing your teen can do is maintain a healthy credit score, get good grades in school, obey traffic laws, and drive defensively.

By doing so, your teen will have a better chance of being eligible for discounts offered by car insurance companies, such as the good student discount and the good driver discount.

They’ll also be a whole lot safer out there on the road!

Search for car insurance quotes online or get in contact with your car insurance company or independent agent to determine if your teen qualifies for such discounts.

As of today, auto insurance is mandatory in the state of Wisconsin.

Going forward, drivers in the state will be required to carry liability coverage and proof of insurance.

The minimum liability limits in Wisconsin are $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $15,000 for property damage.

The state’s minimum liability limits, which were raised in January, are nearly the highest in the nation, behind just Maine and Alaska.

Those caught driving without proof of insurance may face a $10 fine, while those caught without insurance can be fined up to $500.

Wisconsin had been one of only two states that did not require auto insurance coverage, the other being New Hampshire.

“This upcoming change in the law means that people who are currently uninsured need to act now to get the required auto liability coverage in place,” said Wisconsin Insurance Commissioner Sean Dilweg, in a press release.

“Fortunately Wisconsin has a very competitive auto insurance marketplace with over 200 insurance companies doing business here,” added Dilweg. “Someone looking for coverage should be able to find the insurance they need and get covered almost immediately.”

If you’re unable to obtain auto insurance via the private market (such as through a direct insurer or independent agent), you can get coverage via the Wisconsin Auto Insurance Plan (WAIP).

The big question is whether the new law will actually lead to better auto insurance coverage in the state – roughly 15% of drivers in Wisconsin are uninsured.

There’s a good chance that those currently driving without insurance will continue to drive uninsured, all the more reason to carry uninsured motorist coverage.

(photo: diomakr)

The “Chinese drywall” problem is just starting to snowball. According to Independent Agent Magazine, “the property loss from Chinese drywall could exceed every U.S. hurricane except Katrina (2005) and Andrew (1992).”

How much is that? The expected property loss settlements could top $20 to $30 billion dollars.

An estimated 500 million pounds of tainted drywall came into the United States from 2004 to 2006 — that is about 7.1 million 4’x8’ sheets of drywall and it may be in more than 100,000 homes.

While the number of homes affected is greatest in Florida, Louisiana, Mississippi, Alabama and Virginia, the drywall supplies have affected all but 12 states.

The image below shows the impact of Chinese drywall will be widespread based on complaints received as of May 12, 2010 at the Consumer Products Safety Commission.

We’ve only seen the tip of the iceberg on this ordeal with regard to claims and claim settlement. To date, only three home builders have settled minor lawsuits with the Chinese drywall manufacturing companies. Additionally, individual homeowners are currently consulting attorneys to determine their possible courses of action in recouping money spent on the defective drywall.

There are really two separate issues here from an insurance standpoint. At the moment, property losses are the top concern. That is; tearing out and replacing the tainted drywall, technically described as a pollutant. We have not even scratched the surface for potential health-related claims associated with exposure to the “polluted” product.

Does My Homeowner’s Insurance Cover the Cost to Remove and Replace the Drywall?

Unfortunately, the likely answer is “NO.” Almost every homeowner’s insurance policy contains a “pollution exclusion.” Odds are, you haven’t heard of the exclusion, as most insured are typically concerned only with the overall premium of a policy versus the exact coverage afforded (or not).

This basically means there is no coverage available for any pollution related claims. Of course, this will likely be argued in courts for some time.

What Options Do I Have?

If the pollution exclusion defense holds up in courts for your insurance company, seeking damages via a lawsuit from your home builder, the contractor who performed the installation in your home or business, or the company who sold you the drywall (if you installed it yourself) may be your only option.

All parties referenced above should have their own commercial general liability insurance (CGL), which covers products and completed operations, or in this case, the actual drywall and its installation.

But the odds of getting money out of these companies may be slim. The aforementioned “pollution exclusion” exists on the CGL policy as well. While insurance companies do offer pollution liability, the odds your local contractor or hardware store has this coverage is about the same as you having it.

This doesn’t mean you can’t recoup damages from these organizations, it just means you can’t get money from their insurance companies. Unfortunately, many of these companies may simply file bankruptcy to avoid paying for these damages out of their own pockets.

(top photo: iluvrhinestones)

A widely publicized 2007 car accident involving Hulk Hogan’s son, Nick Hogan, left his passenger in a coma.

As a result, “The Hulkster,” whose real name is Terry Bollea, had to pay out an undisclosed amount of money in damages to the family of the injured passenger.

You may recall that Nick was not yet an adult, which made elder Hogan technically responsible for his son’s actions.

In the event of an at-fault accident, bodily injury caused to another individual is covered under your limits of liability.

Liability limits can be expressed as split limits or as a combined single limit. The limits dictate the maximum amount of money your insurance company will pay for damages awarded in any one covered accident.

The at-fault individual (or the parent or legal guardian in the case of a minor) is responsible for paying any awarded damages above the policy limits.

As it turns out, similar to his son’s apparent lack of taking responsibility for the accident, Hogan is looking to point the finger in another direction to recoup the money he was ordered to pay to the family of the injured passenger.

Why is Hogan Suing His Insurance Agent?

Insurance agents must carry errors and omissions insurance, a type of professional liability insurance similar to malpractice insurance for doctors.

An insurance agent technically has a duty to evaluate all potential insurance needs for their clients and make recommendations for coverage.

And often times, an insured must accept or reject coverage as part of their application.

This is a major reason why agents should make it a habit to keep written records of their client’s refusal to purchase the “recommended coverage. “

According to the Independent Insurance Agents of Texas’ Personal Lines Report, Hogan sued his insurance agent for failure to offer an umbrella insurance policy.

An umbrella policy has extremely high liability limits ($1,000,000 and up) and protects an insured from liability judgments in excess of underlying liability insurance policies, in this case his auto liability policy.

It is not necessary for every individual to have an umbrella policy, though high net-worth individuals should almost always have one in place (how much car insurance do I need).

The same report said Hogan sued his attorney for “failing to sufficiently protect his personal interests,” but that case was dismissed.

So it looks like this is a last ditch effort by Hogan to push responsibility onto someone else and protect his remaining assets.

The lesson here is that insurance agents and their insured need to take as much time as necessary to share information and assess all potential exposure to risk.

Many insurance agents are dissatisfied with their insured’s lack of concern or effort when it comes to discussing their wants, needs and exposures…that is, until a claim is started.

So take the time to fully understand all of your insurance needs prior to signing on the dotted line.

It is recommended that you obtain insurance quotes online or speak to a local independent agent to get the proper insurance coverage you need at the right price.

If you’re actively shopping for car insurance, you may be curious what others are paying for their coverage.

While it’s hard to get an apples to apples comparison given all the options and variables, such as driver history, type of car, applied discounts, and so on, it can still serve as a barometer to what you might pay (how are car insurance rates determined).

The table below displays the “average cost of car insurance by state,” broken down by liability coverage, collision coverage, and comprehensive coverage.

Generally, only liability insurance is required in each state, so this breakdown will give you a better overall picture of what the associated costs might be with some or all options included.

The data is based on 2007 auto insurance premiums, the latest available, as provided by the National Association of Insurance Commissioners and reported by the Insurance Information Institute (III).

Per the III, car insurance is more expensive in states where the economy is healthy, as it leads to the purchase of newer cars and higher associated coverage to protect those vehicles.

States with large urban areas and high traffic density also increase car insurance rates, as do higher theft rates and minimum liability limits.

Using the numbers below, you can see how your car insurance rate stacks up to the average in your state, and the average in the nation, which is $795.

If you’re paying a higher insurance premium than the average driver, be sure to ask your auto insurance company or independent agent to explain why.

Read more: How can I lower my car insurance rate?

The auto theft rate in the United States dropped for the sixth straight year in 2009, according to the National Insurance Crime Bureau (NICB).

One would assume with the way the economy is going, auto theft would be on the rise, but statistics compiled by the NICB reveal quite the opposite.

The group reported that auto thefts have fallen a whopping 18.7% in the first six months of 2009 compared to the first six months of 2008.

This is good news for all of us with auto insurance, because insurance companies spread the cost of theft among all of us when determining car insurance rates.

In the event your car was stolen, you would need to have comprehensive coverage on your auto policy in order to be compensated. “Comp,” in addition to collision coverage, constitutes the physical damage portion of your auto policy.

Physical damage coverage is not mandatory on a vehicle unless you have a loan or are leasing the vehicle. Your lender typically requires this coverage to protect their interest in the car. They want to make sure it gets fixed or replaced in the event of an accident.

Auto liability is the other piece of the puzzle. Liability coverage, or at least minimum liability limits, are mandatory in almost every state.

The states that do not require auto insurance still enforce laws that require a form of bond, or self insurance that demonstrates a threshold of financial responsibility.

“Full coverage” is the term used to describe a policy that has both liability and physical damage coverage.

Laredo, Texas top spot for car theft.

If you’re wondering where the worst place for car theft is…it’s Laredo, TX. If you’re not familiar, it’s located at the very tip of Texas, on the border of Mexico.

In fact, there is a “mirror” town on the Mexico side of the border know as Neuvo Laredo. The area is known as a narcotic trafficking area, which is probably tied to the elevated auto theft rate.

Laredo “stole” the top spot (pun intended) from Modesto, California, which was number one in 2008. Don’t worry though California, you still have three of the top four spots according the data collected by the NCIB; Modesto fell to number two, followed by Bakersfield, Stockton and Fresno CA.

Modesto and Laredo may have some serious competition in 2010 though, as Fresno jumped five spots in 2008 from number ten on the list.

The moral of the story is; stay away from the southern tip of Texas and most of inland, central California if you don’t want an abnormally high chance of having your car stolen.

For those who live there, it is recommended you purchase full coverage auto insurance and make sure to keep your doors locked at night!

Top 10 Cities for Car Theft

1. Laredo, TX
2. Modesto, CA
3. Bakersfield, CA
4. Stockton, CA
5. Fresno, CA
6. Yakima, WA
7. Bay Area, CA
8. Visalia-Porterville, CA
9. Las Vegas, NV
10. Albuquerque, NM

A staggering 24.3 percent of Californians under the age of 65 went without health insurance coverage for all or part of 2009, according to a new study by UCLA researchers.

That’s up from 19.5 percent in 2007 – an increase from 6.4 million to 8.2 million in just two years.

Among only working-age adults, those 18 to 65, the rate was one in three. Something surely isn’t right here.

The bulk of the increase was attributed to recession-related job loss and ongoing economic distress, but the number is high regardless.

Employer-provided health insurance reportedly accounts for roughly half the heath insurance coverage for California residents under 65.

During the past two years, coverage under COBRA plans more than doubled, but nearly two-thirds of those who lost their employee-based health benefits were forced to other coverage or became uninsured.

Nearly all senior citizens in the United States have health insurance coverage under the government’s Medicare program.

Nationwide, roughly 17 percent of non-elderly Americans went without health insurance in 2008 (the last year data was available), considerably less than in California.

California, thanks in part to its sheer number of residents, leads the nation in the number of uninsured.

Below is a list of the top auto insurance companies in California, based on written premium. Keep in mind that these companies aren’t necessarily the top rated, just the most frequently used.

As you can see, State Farm was the top auto insurance provider in California in 2008 (the most recent data available), according to the California Department of Insurance.

The company grabbed 12.9% market share with $2.54 billion in written premium, followed by The Automobile Club, which raked in 8.9% market share with $1.76 billion in written premium.

The California State Automobile Association grabbed the third spot with 6.8% market share and $1.34 billion in written premium, followed closely by Mercury, with 6.6% market share and $1.3 billion in written premium.

Rounding out the top five was Allstate, with 6.4% market share and $1.26 billion in written premium.

A number of other notables are in the top 25, including Farmers, 21st Century, Progressive, Geico, and Esurance.

Perhaps rather surprisingly, Geico held only a 1.8% share of private passenger insurance in California in 2008, despite their strong advertising push; Esurance held less than 1% market share.

FYI, this report looks at total insurance written for both private passenger liability insurance and physical damage coverage.

Also note that many insurance companies have subsidiaries and are listed multiple times.

Insurance providers often write through multiple “companies” with the same name, which is referred to as the “holding company.” The reasons can be many.

For example, it is darn near impossible for an insurer to raise rates in California, so “another company” may be formed to introduce a new, more expensive product line.

Or a company may sell both direct to the public and through independent agents. That’s what Mercury, Allstate, and others are doing here.

Also, a company may serve two markets, such as a non-standard, non-credit auto program, and a more standard in nature credit scored program.

One product cannot have both credit and non-credit lines, so each would need to be written under a different company.

As I mentioned before, this isn’t necessarily a gauge of quality, but more about market share, and the names an independent agent may throw your way.

U.S. Transportation Secretary Ray LaHood this week unveiled sample legislation that can be used as a starting point for states looking to craft laws to prohibit texting while driving.

There is an ongoing concern about texting while driving because it combines three types of distraction: visual – taking your eyes off the road, manual – taking your hand(s) off the wheel, and cognitive – taking your mind off the road.

“Texting while driving, like talking on cell phones while driving, is an extremely dangerous and life-threatening practice,” said Secretary LaHood, in a press release.

“This language, which we created with a variety of safety organizations, is another powerful tool in our arsenal to help the states combat this serious threat.”

Currently, 19 states and the District of Columbia have a ban on texting while driving.

Additionally, federal employees are not allowed to text while driving government-owned vehicles or government-owned equipment.

And just last month, LaHood announced federal guidance to prohibit texting by drivers of commercial vehicles, including large trucks and buses.

Truck and bus drivers who text while driving may be subject to civil or criminal penalties of up to $2,750.

Of course, a recent study found that texting was not the biggest distraction while driving; it turned out to be road rage and screaming children.

However, another study found texting drivers were six times more likely to get into an accident, which could lead to even higher insurance rates for teens, who seem to be the biggest texters out there.

(photo: d3sanfrancisco)