Normally when I talk to people about their sports car insurance, we talk about ways of avoiding driving into a lake.  Sometimes, you get the occasional client that kids about driving the car off a cliff or setting it on fire if they can’t afford the payments.   You know how the joke goes!  “He he, lucky I have car insurance, at least I can set it on fire!”

All kidding aside, a Lufkin business found out that when it comes to sports cars and insurance claims, insurance companies take it seriously when they have to pay out; espcially $1.2 million dollars.

According to the Associated Press and the Houston Chronicle, Philadelphia Indemnity Insurance Co. filed a lawsuit against Lufkin auto dealer Andy House. The lawsuit accuses House of intentionally driving his Bugatti Veyron EB into 3 feet of salt water in La Marque, 36 miles southeast of Houston.

House, who sells exotic cars, denies the allegations. He has countersued the insurer, saying the company failed to pay as promised.

The lawsuit also alleges House ran the car engine for 15 minutes after the November 2009 splashdown, furthering damaging the vehicle’s engine.

House told police that car, with its 1,000-horsepower engine capable of reaching 253 mph, ended up in the lagoon when he swerved to avoid a seagull. He also said he delayed turning the engine off because of an attack of mosquitoes, according to the lawsuit, filed in June 2010 in federal court in Galveston.

However, a video of the incident taken by a passing motorist and posted on YouTube showed no seagull and no attempt to brake as the Italian sports car swerved into the water, the insurance company claims.  Other websites report that Mr. House was trying to avoid a low flying pelican while picking up his cell phone.

Furthermore, a confidential informant told company investigators that House had offered to pay the informant to steal and burn the car so House could collect on his policy, according to the lawsuit. The informant told investigators that House business associate Lloyd Gillespie, who is also a defendant in the lawsuit, loaned the money to buy the car and is listed on the policy as payee, the lawsuit said.

Gillespie has denied the allegations in court filings. His attorney declined to comment to the newspaper.

via Insurer accuses owner of drowned Bugatti of fraud – Houston Chronicle.

Related Pages: Dallas Car Insurance

Why am I purchasing auto insurance?

Even though large auto insurers promote peace of mind in case of accident, is that the only reason to purchase auto insurance?  No.  In reality, people purchase car insurance for many reasons ranging from driving off a dealership lot, to purchasing car insurance for a young driver in the household and everything in between.  Knowing why you are shopping for auto insurance will go a long way to helping you pick the right insurance company or agency.

When am I purchasing auto insurance?

Everyone has different shopping habits.  Are you shopping online when you get your auto insurance bill, or are you driving to a party and remembered that your policy expired a month ago?  Whatever the answer is, timing is key.  Preferred companies like to give better rates if you’re shopping before your auto insurance expires.  While larger national companies penalize you if you let your auto insurance expire.   On the flip side, if you need to stop and get an insurance card at the local grocery store, you may be better served just to go anywhere.  The difference is simple, small local companies will give you a good rate in exchange for providing minimum coverage auto insurance policies.

What’s up with my driving record and credit?

Do you have a good driving record and bad credit?  Do you have a bad driving record and good credit, or is everything just bad?  Believe it or not, you can save time by talking to an agent that represents multiple companies.  Odds are if you go to a large national auto insurance agent that represents one national carrier, you won’t get the best rates.  As a result, you will spend lots of time looking for your insurance.  Let’s face it, no one company gives every driver a good rate on auto insurance.  If that was the case, there would be no need for any competition in the auto insurance industry.

Regardless of why you’re shopping for insurance, it always pays to do a little work ahead of shopping.  That way, you can save time and money by getting the right rates from the right insurance agents and insurance companies.

Since the future cannot be predicted, it’s better to get it insured. There are different insurance policies, which you can choose according to your needs and urgency.

Types of insurance policies

All insurance policies are important since they are for the things you possess and don’t want to lose. So you should get them insured. Some of the most important insurance policies are cited below:

1. Life insurance

This policy ensures the family members of a sole bread earner financial security after his death. When you are the only person who has all the responsibility of your family, it’s always important to go for life insurance policy. This way, part of your premium is put into savings account so that money is not a problem in the future

2. Health insurance

This is also an important insurance policy that pays for all the treatments and medications if you are seriously injured. Suppose you are involved in an accident and don’t have health insurance, you will have to pay for the treatment from the money you have saved. If you don’t have the money required, you may fall in medical debt and the hospital may stop your treatment. It’s better to have a health insurance to ensure you a secured and healthy life.

3. Property insurance

This insurance policy ensures the property you own. This is also very important as you spend a good amount of money on the things you possess and so it’s only natural that you should have property insurance. This policy provides coverage against fire, earthquake, vandalism, etc. This insurance policy protects your assets which can be business or your personal property. Usually homeowners policy covers for most of the personal property.

4. Auto insurance

If you own a car or a vehicle, it’s important that you have auto insurance. This policy covers the cost of the damage caused to the vehicle and you in an accident. It also pays for the damage the other party incurs in an accident. This insurance policy also covers your vehicle from the damage caused by natural calamities and robbery, vandalism, etc.

The above list gives you an insight of the most important insurance policies you should go for.

The Hartford Insurance company recently joined the iPhone application race when they launched The Hartford Mobile for iPhone.    According to their website,

• Access our auto accident checklist
• Collect and exchange driving and accident  info, including accident photos
• Reference handy roadside guides, like an interactive Emergency Kit Checklist
• Locate an auto repair facility from our national network of approved shops if you are interested in this option
• Save and review accident history
• Find a replacement vehicle – new or used – and at a great price
• Get help for a cracked windshield through our national Glass Repair service – it’s fast and convenient
• Request help when you’re stranded through our RESCUE 1-800 roadside services
• Store your vehicle and insurance information for quick and easy access
• Special features for customers of The Hartford: express connect to our award-winning Claims Services to painlessly report an accident, as well as submit accident photos and notes directly from your iPhone

Original Content Provided by The Hartford

Everybody would love to have the “best” when it comes to just about anything and this should be especially true when it comes to car insurance companies. Consumers must take a moment to understand what makes up an ideal carrier before they can locate one and they must also realize that a good insurer for them may not be the right one for another individual. So if a friend or loved one refers you to a particular coverage provider that they are satisfied with it is a good idea to consider their recommendation, but the chances are that another carrier may be a better option.

Term insurance comes in two basic varieties—level term and decreasing term. These days, almost everyone buys level term insurance. The terms “level” and “decreasing” refer to the death benefit amount during the term of the policy. A level term policy pays the same benefit amount if death occurs at any point during the term.

Common types of level term are:

• yearly- (or annually-) renewable term
• 5-year renewable term
• 10-year term
• 15-year term
• 20-year term
• 25-year term
• 30-year term
• term to a specified age (usually 65)

Yearly renewable term, once popular, is no longer a top seller. The most popular type is now 20-year term. Most companies will not sell term insurance to an applicant for a term that ends past his or her 80th birthday.

If a policy is “renewable,” that means it continues in force for an additional term or terms, up to a specified age, even if the health of the insured (or other factors) would cause him or her to be rejected if he or she applied for a new life insurance policy.

Generally, the premium for the policy is based on the insured person’s age and health at the policy’s start, and the premium remains the same (level) for the length of the term. So, premiums for 5-year renewable term can be level for 5 years, then to a new rate reflecting the new age of the insured, and so on every five years. Some longer term policies will guarantee that the premium will not increase during the term; others don’t make that guarantee, enabling the insurance company to raise the rate during the policy’s term.

Some term policies are convertible. This means that the policy’s owner has the right to change it into a permanent type of life insurance without additional evidence of insurability.

“Return of Premium”

In most types of term insurance, including homeowners and auto insurance, if you haven’t had a claim under the policy by the time it expires, you get no refund of the premium. Your premium bought the protection that you had but didn’t need, and you’ve received fair value. Some term life insurance consumers have been unhappy at this outcome, so some insurers have created term life with a “return of premium” feature. The premiums for the insurance with this feature are often significantly higher than for policies without it, and they generally require that you keep the policy in force to its term or else you forfeit the return of premium benefit. Some policies will return the base premium but not the extra premium (for the return benefit), and others will return both.

There are many factors that influence the price you pay for auto insurance. The average American driver spends about $850 a year.

Your premium may be higher or lower, depending on:

1. The better your record, the lower your premium. If you’ve had accidents or serious traffic violations, you will pay more than if you have a clean driving record. You may also pay more if you haven’t been insured for a number of years.

2. The number of miles you drive each year.
The more miles you drive, the more chance for accidents. If you drive a lower than average number of miles per year, less than 10,000, you will pay less. For instance, some companies will give discounts to policyholders who carpool.

3. Where you live.
Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.

4. Your age.
In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.

5. The car you drive.
Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car.

6. The amount of coverage.
Of course, like anything else, the more coverage you have, the more you pay. However, you may qualify for discounts.

The price you pay for your auto insurance can vary by hundreds of dollars, depending what type of car you have and the insurance company you buy your policy from. Here are some ways to save money.

Shop around

Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers.

Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Other companies sell directly to consumers over the phone or via the Internet.

But don’t shop by price alone. You want a company that answers your questions and handles claims fairly and efficiently. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they make available consumer complaint ratios by company.

You can also check the financial health of insurance companies through independent rating companies and by consulting consumer magazines.

Select an agent or company representative who takes the time to answer your questions. Remember, you’ll be dealing with this company if you have an accident or other emergency.

Before you buy a car, compare insurance costs

Before you buy a new or used car, check into insurance costs. Your premium is based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include air bags, anti-lock brakes, daytime running lights and anti-theft devices. Some states require insurers to give discounts for cars equipped with air bags or anti-lock brakes.

Cars that are favorite targets for thieves cost more to insure. Information that can help you decide what car to buy is available from the Insurance Institute for Highway Safety.

Ask for higher deductibles

Deductibles represent the amount of money you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 percent to 30 percent. Going to a $1,000 deductible can save you 40 percent or more.

Reduce coverage on older cars
Consider dropping collision and/or comprehensive coverages on older cars. It may not be cost-effective to continue insuring cars worth less than 10 times the amount you would pay for coverage. Any claim payment you receive would not substantially exceed your premiums minus the deductible. Claims occur on average only once every 11 or 12 years. Auto dealers and banks can tell you the worth of a car, or you can look it up online at Kelley Blue Book. Review your coverage at renewal time to make sure your insurance needs haven’t changed.

Buy your homeowners and auto coverage from the same insurer

Many insurers will give you a discount if you buy two or more types of insurance from them. Also you may get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce premiums for long-time customers. But shop around; you may save money buying from different insurance companies despite the multi-policy discount.

Take advantage of low-mileage discounts

Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who carpool to work.

Ask about group insurance

Some companies offer reductions to drivers who get insurance through a group plan from their employers, or through professional, business and alumni groups and other associations. Ask your employer or any groups or clubs to which you belong.

Maintain good credit

Your credit rating may affect what you pay for insurance, so keep a close eye on it. Credit makes insurance rates more accurate, fair and objective. While the use of insurance scoring varies from state to state and company to company, it is a fact that drivers with long, stable credit records have fewer accidents than drivers who don’t. There are various Internet services that allow you to check your credit rating and provide tips on how to improve your score.

Seek out safe driver discounts

Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also qualify for a cut if you have recently taken a defensive driving course.

Inquire about other discounts

You may get a break on your insurance if you are over 50 or in some cases 55 and retired or if there is a young driver on the policy who is a good student, has taken a drivers education course or is at a college, generally at least 100 miles away.

When you comparison shop, inquire about discounts* for:

• $500 deductible
• $1,000 deductible
• More than 1 car
• No accidents in 3 years
• No moving violations in 3 years
• Drivers over 50-55 years of age
• Driver training course
• Defensive driving course
• Anti-theft device
• Low annual mileage
• Air bag
• Anti-lock brakes
• Daytime running lights
• Student drivers with good grades
• Auto and homeowners coverage with the same company
• College students away from home
• Long-time customer
• Other discounts

*The discounts listed may not be available in all states or from all insurance companies.

But don’t forget that the key to savings is not the discounts but the final price. A company that offers few discounts may still have a lower overall price.