Cash for Clunkers Inspires an Insurance Discount

Cash for clunkers has been a sucessful program, cinsidering it has raised new car sales 40% and taken 700,000 clunkers off the road. Inspired by this consumer optomism, in the spirit of saving money, Allstate is offering a new car discount. Not only the federal government is helping auto buyers, but Allstate is hoping on the band wagon by offering a discount for new cars.



The new car discount is not the only one avaliable. View the full list of auto insurance discounts avaliable from Allstate. Many other companies also offer many similar discounts such as good student and multi-car discounts.

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The Most Stolen Vehicles in Michigan: Are you Driving One?

Owning auto insurance cannot completely relieve the fear of having a car stolen, but it helps to be informed about the most popular vehicles and why they are stolen.

In Michigan, the top 12most stolen cars of 2007 were:

1. 2000 Dodge Intrepid
2. 1999 Dodge Intrepid
3. 2000 Dodge Caravan
4. 1996 Dodge Caravan
5. 2005 Dodge Ram
6. 2000 Jeep Cherokee
7. 1999 Dodge Caravan
8. 1998 Dodge Caravan
9. 1999 Jeep Cherokee
10. 1997 Ford Taurus
11. 2006 Dodge Durango
12. 1999 Ford Taurus

Photo by Brad Finkelstein

Suprisingly, it is not the newer cars that are more likely to be ripped off, the list is filled with vehicles from the late 90's and just a few after 2000. The reason that the same model is on the list multiple times is that if the model is not redesigned, the parts from the models are interchangable and more valuable.

In the event that your car is actually stolen insurance will pay out the actual cash value of the car minus the comprehensive deductable. So, if your 2002 Ford Focus is agreed to be worth $3,500 and your comprehensiave deductable is $500 you would get a $3,000 check from your insurance company.

To see more about how auto theft affects insurance rates visit the Michigan State Police site, or view the document containing this list.

Michigan's Requirements for Auto Insurance

In Michigan, all cars must have no-fault insurance. This means that every car on the road must be insured, and if an accident occurs their own insurance will cover any costs according to their plan.
The seceratary of state says the required coverages include: "bodily injury/property damage (BI/PD), personal injury protection (PIP), and property protection insurance (PPI)"

This basically means that if you have the state minimums of 20/40 (bodily injury/property damage) then you will still have to pay for any damage to your vehicle on your own. This low amount of coverage is generally recomended only for older cars.

You need to be able to prove that your automobile is covered by insurance if a police officer pulls you over. If you are not able to prove your insurance coverage to the officer, the SOS says,

"the court may order the Secretary of State to suspend your driver license. Until proof of insurance is shown, the Secretary of State will not renew, transfer, or replace your vehicle’s license plate. You may be required to prove the vehicle is insured for not less than six months and pay $50, plus any other fees required by law. The plate could also be canceled if proof of insurance is not produced."

As you can see, there are some stiff punishments from not having insurance. To avoid this, or ensure you and your car are properly covered, call your Michigan Allstate agent Craig Borowsky.

Toll free number (888) 991-2557
Visit the Secritary of State for the full Offical Michigan Insurance Requirements

Home for the Holidays

The holidays are a dangerous time on the roads - especially for teen drivers. Every December, on average, almost 500 teenage drivers are killed in car crashes.

For the second consecutive year, Allstate is launching its "Home for the Holidays" campaign, aimed at encouraging parents throughout the country to start the conversation with their teen about safe driving and help keep their teens safe this holiday season.

Remember you can link to the Teen Driving Contract through our website:http://agent.allstate.com/cborowsky/Welcome

Most/Least Expensive Cars To Insure

The current economic crisis has raised the question of which cars are cheaper to insure? In an effort to assist you with your planning I thought I' d post a link to an article that appeared on the net today. It highlights the important things to consider including size, speed, and demographics of the typical owner. It says if you want to cut your auto insurance premiums to the bone, stay away from small, fast cars.

The top five most expensive cars to insure are:

1. Cadillac Escalade EXT 4WD
2. Subaru Impreza WRX 4WD
3. Hyundai Tiburon
4. Mitsubishi Lancer
5. Scion tC
   

The top five least expensive cars to insure are:

1. Ford Five Hundred 4WD (now the Ford Taurus)
2. Buick Rendezvous 4WD
3. Buick Lucerne/Buick Rainier 4WD/Honda Odyssey
4. Ford Freestyle 4WD/Subaru Outback 4WD
5. Buick Rendezvous/Honda Pilot

Read the complete auto insurance article.

Take time to read it --it may save your insurance costs in the future!

Buy Your Teen a Safe Car

A parent's guide to protecting your precious child, a teen's guide to scoring a new car on your sweet sixteen.

I was reading an interesting article in The Family Circle Magazine today and I thought I'd share it with the parents out there who have a teen. I was reminded that teens have a high crash rate; teens crash four times more than an adult 20 or older. (See my previous post about safe teen driving.)Even with this fact, only 20 percent of parents said that safety was the most important factor in selecting a car for their new teen.

The good thing is that there is hope for teen drivers out there; a shocking statistic was found by The National Highway Traffic Safety Administration (NHTSA). Between 1996 and 2005, accidents among 16-year-olds (the highest-risk drivers) fell 40 percent. This is due mainly to new safety features.

A few questions that may come up include: Big or small? Basic or loaded? New or used? Dull or dream?

Big or small? Midsize
Small cars generally have low crash scores, but big cars generally have bad handling and easily loose control. For more crash ratings go there iihs.org/ratings

Basic or loaded?
electronic stability control (ESC) is a great safety breakthrough. It can selectively add abs or reduce power to certain wheels. It is also highly effective


I'd like to encourage you to do some research before you turn over the car keys or make your next car purchase.

• Find more information about buying a safe car.
• For a list of vehicles that offer ESC(electronic stability control) as standard or optional equipment, go to the National Highway Traffic Safety Administration.
• For further information on auto safety, visit Consumer Reports.

Auto Insurance Terms to Know (Part 2)

Are you confused when talking with your insurance agent? Do you wonder what your declarations page is telling you about the coverage you are paying for? Here are some basic terms you should know:

Medical Payments Coverage: Typically provides protection for reasonable and necessary medical expenses incurred as a result of bodily injury sustained by you** in a covered accident.

Personal Injury Protection (PIP): Typically provides coverage for certain expenses incurred by you** due to an accident, such as medical, hospital and funeral expenses. Lost wages benefits may also be included.

Uninsured/Underinsured Motorist Bodily Injury Coverage: Typically provides coverage if you** are injured or killed in an accident caused by a negligent driver without applicable or adequate insurance to cover your damages.
(**includes covered drivers and passengers)

To see more insurance terms check out Auto Insurance Terms to Know (Part 1)