We all face distractions while driving. Whether answering a ringing cell phone, changing the radio dial or reaching for hot coffee, it’s easy to take our eyes off the road–even for just a moment–and end up in either a major accident or, at the very least, an expensive fender-bender.

If it weren’t so comical, watching other drivers on the interstate every morning trying to balance two or three different activities at once–none of them related to operating a vehicle– would scare us all out of our wits! I thought I’d heard it all until I read these Tales of Distracted Driving from one of my favorite blogs, WalletPop, which gathered eyewitness accounts of the crazy things people try to do while driving. (I say try because they often fail and end up wrapped around someone else’s bumper!)

But bad behavior behind the wheel isn’t just risky or poor form; it also affects motor car insurance rates. The more distracted drivers are, the more likely they’ll end up crashing or causing someone else to crash–and higher accident rates lead to higher insurance rates.

Take for example the temptation to talk or text on cell phones while driving. Motorists who engage in this activity behind the wheel are four times as likely to get into crashes serious enough to injure themselves, according to a study conducted by the Insurance Institute for Highway Safety. This article by the Insurance Information Institute puts it all in perspective we can all understand. And reading or putting on makeup while trying to drive? That’s plain crazy, if you ask me!

The moral of the story? To keep insurance rates low–and everyone around you safe on the road–put off phone calls and text messages, eating and drinking, personal grooming and all other non-driving-related activities until you get where you’re going–or do them before you leave home. Meanwhile, stay safe at home or work and have a laugh on us by reading the Crazy Things Drivers Do.

More Information on Distracted Driving and Insurance:

• Car Insurance & Cell Phones
• Good Driver Car Insurance
• Driver Distraction & Traffic Crashes

Here’s another Fun Friday Post that covers politics, humor and even insurance.

How can it be Friday and the administration, the democrats and the republicans still have not come up with a resolution to the financial crisis? I don’t think their 401Ks are at stake like most of ours. I am appalled at what appears to be self-serving moves on everyone’s part.

With the economy so uncertain, it is time to be conservative and careful with our money. And it doesn’t sound like it will get any better in the near future.

Now I don’t know if the situation will get as dire as Chris Farley portrayed in his skit on Saturday Night Live. That skit had everyone laughing, even the actors. If you don’t remember it or if you just need a good laugh in these times, check it out on YouTube. We all need to smile through these times.

If you do have a van, you should check out how to save money on insurance. Penny Hagerman just wrote a great article on van insurance which is what reminded me about Farley’s skit. If you don’t own a van, then I still recommend tightening your belt and seeing if you can save money on insurance. Getting a better rate on your insurance is so much easier these days because you can shop around via the internet. In the past, you had to rely on your own network of friends. I am amazed at the savings people come up with, just by researching online.

With so many homeowners defaulting on their mortgages these days, mortgage refinancing seems a viable option that may help. ( Whatever it takes to keep from losing your home is the right thing, in my book!) And with mortgage rates near an all-time low, why not?

Since lenders have tightened their belts, it’s harder to get a home loan these days. But for those who qualify, it may just be worth the time and effort if they can drop their monthly payments significantly and avoid foreclosure.

But how can you know if a refi is right for you?

Total payment isn’t everything. Consider also:

• The term of the loan
• Whether its rate is fixed or variable
• How long you plan to stay in the home
• Whether your home insurance rates could drop significantly

Yahoo Finance offers a great How-To Guide for Home Refinancing online. If you’re considering making the move to reduce the amount you’re paying out-of-pocket each month and you’d like to avoid the pitfalls of refinancing, it’s definitely worth the read (along with the other resources listed below).

More Resources:

FAQ on Refinancing
Mortgage Applications Surge
Bankrate’s Refinancing Calculator

Insurers use complex algorithms to set auto insurance rates. While it may seem that their pricing methods are designed merely to drain your bank account, they are actually the product of a much more benign motivation: to ensure that there is enough cash on hand should you need to file a claim.

You see, if insurers were to set rates too low, they would be bankrupt in short order because they would soon end up paying more in claims than they collected in premiums.

Assessing Risk
Driving a car–thousands of pounds of metal and glass moving at high speeds–is an inherently risky endeavor to both you and the world at large. But statistically speaking, not every driver in every car in every state carries the same amount of risk.

For example, young men are more likely to get in serious accidents than women and older men, and the woman who travels 57 miles each way to her job at the bank is more likely to file a claim than the woman who commutes 4 miles each way. The person who drives a newer car–with readily available and relatively cheap replacement parts–is going to pay less than the person insuring a classic car, with its expensive and hard to come by parts.

Here are a few of the factors that go into assessing a driver’s (statistical) risk:

• Age
• Claims history
• Credit history/insurance score
• Deductibles*
• Driving record
• Education level, grade point average (GPA)
• Marital status
• Occupation
• Retirement status
• Type of vehicle
• Vehicle specifications
• What you use your car for
• Where you live/where you park
• Whether you have had continuous coverage

Some factors are clearly out of your control–such as age and gender. Others, such as deductible levels, driving record and usage patterns, are within your control. (Read about what you can do to save on your auto insurance bill.)

ADDITIONAL RESOURCES

• Get more information on how insurers set rates
• Get auto insurance quotes

In times like these…well, have any of us lived though times like these? We are now in the worst financial crisis since the 1930s.

I grew up with parents raised during the depression, and it affected everything they did. They abhorred debt, they never left any cookie batter in the bowl to lick out–and they always knew if the bottom dropped out of the economy again, we could all go and live on the farm, eat carrots from the ground and ‘never be hungry again’ (apologies to Gone with the Wind).

I could look at this all culturally, but I’ll keep it to insurance.

I just want to remind everyone that when you read about AIG, it is not personal lines of insurance that were causing the trouble; the crisis stems from a part of the company that provided complicated insurance coverage to complicated risky debts. And from the fact that financial instruments were created (such as credit default swaps and tranched collateralized debt obligations) that are difficult to track or even understand. However, the leaders of those companies creating, selling and buying these types of ‘financial securities’ (oxymoron) must not have had depression-era parents.

AIG’s home, health, life and long-term care insurance companies have operated wisely in the past. They are in the business of being safe, as well as highly regulated. I think the best thing for our country is to put some regulation on the financial markets like we did after the depression. The ‘repeal’ of the Glass-Steagall bill is a good example.

The sad fact for AIG employees is that AIG is losing face–and customer confidence. Insurance business is starting to move away from AIG, according to the Insurance Journal, dated September 22, 2008.

The free market would work so well if people didn’t try to work the system and get richer than the next guy or gal. For a nice set of answers that the less financially informed might ask, check out the Personal Finance section of the Wall Street Journal.

We’ll continue to express our opinions in this blog but, as we face these times, the best solution is to save as much money as you can–and that might be on re-shopping your insurance needs. You could check out some Tips for Homeowners Insurance or Car Insurance Facts. That probably makes more sense than pulling your money market fund out of the bank and putting it under a mattress.

Recently, our faithful blogger, Jeb, who keeps us all up-to-date on the latest insurance news, has been passing along some great tips for lowering car insurance rates. Since Jeb is out getting hitched this week (Congrats, Jeb!), I thought I’d offer a few more pointers on the subject.

Unless you’ve had multiple accidents and car insurance claims, you may not know the difference between PIP and property damage. And if your car gets pounded by hail and you need to file a claim, you may wonder whether you should file under the collision or comprehensive portion of your auto insurance policy. What’s the difference, anyway?

Don’t worry; you’re not alone! Most people don’t have the foggiest idea what terms like these mean. But before you start comparing car insurance quotes to find the cheapest rates, you need to learn the lingo. The more you understand about car insurance policies, the more likely you are to get the best deal (while covering yourself and your car adequately).

Did you know that each state sets its own insurance requirements? That’s right, depending on the state you live in, you may need a different amount or type of coverage than someone in a neighboring state. So before you take a look at those insurance quotes and wonder why agents keep quoting you such high limits on bodily injury, check with your state’s department of insurance to find out exactly what you need. (You’ll find contact info here.) Though it’s always wise to purchase more coverage than you think you’ll need, this will give you an idea exactly what’s required.

Finally, to get the cheapest car insurance, talk to several agents in your area. Tell them which coverages you’re looking for and in what amounts, and let them know you’re comparing quotes through several insurance companies. They may just give you a lower rate to earn your business.

That’s it for today. When you’re all “edumacated,” (to borrow a phrase), get your free quotes from InsureMe–and have a great weekend!

More ideas from our Insurance Resource Center:

• Vehicle Insurance Basics & Ways to Save
• How to Get Discount Auto Insurance
• Play It Safe, Save on Auto Insurance

With AIG (American International Group) on the brink of bankruptcy, a lot of nervous people are asking the following question: What if my insurance company goes bankrupt?

Get the answer over at the InsureMe Insurance Resource Center.

(To read the first 6 Ways to Save, click here)

1. Drive safely

Even more important than maintaining excellent credit, the single best way to cut your insurance bill is to be a safe, cautious and defensive driver. That means no accidents or moving violations.

2. Carpool and/or ride mass transit

Anytime you lower your annual mileage, you get rewarded with lower premiums. Take the bus or commute to work with a friend when you can.

3. Pay in full

Insurers offer discounts to people who pay for their policy in full (as opposed to in monthly installments). If you can part with a decent chunk of money up front, you’ll end up saving considerably.

4. Double your deductible

Many insurers offer discounts to drivers who are willing to double their comprehensive and collision deductibles for the first 45 days. (For a glossary of common insurance terms, click here.)

5. Buy a safe car

Cars with front seat air bags, electronic stability control (ESC), and good crash-test ratings from the Insurance Institute for Highway Safety will cost significantly less to insure.

6. Take a class

You can save money by completing a accident prevention course approved by your state’s department of motor vehicles.

To read the first 6 Ways to Save, click here.

ADDITIONAL RESOURCES

• Get Free Auto Quotes from the Nation’s Top Insurers
• Auto Insurance Survival Guide [Download]
• Discount Auto Insurance: Lesser-Known Ways to Save Cash

‘For better or worse, richer or poorer, co-pays and deductibles, as long as you both shall live’–or until someone’s insurance runs out.

Sound familiar? OK, that’s a rather loose interpretation. But in these days of soaring cost and inflated medical expense, some couples are resorting to desperate measures for the health coverage they need–including marriage and divorce.

Finding themselves without insurance due to a job change, rising health insurance premiums, unplanned pregnancy or uncovered illness, more and more couples are rushing to the altar–or the courtroom–in record numbers to either begin or finalize marriages where one partner can provide insurance coverage for the other, or one can better qualify for the right health plan alone.

In fact, according to the Kaiser Family Foundation, recently seven percent of adults said someone in their household had married during the past year to gain access to health insurance.

So much for the notion of romance!

Heartbreaking stories abound on this front, like the mother with cancer who divorces her husband so she can qualify for state-sponsored aid for the low income. Or the couple who broke up recently, then decided to get married–doubts or no doubts–for health reasons when they discover they’re unexpectedly expecting. Or the woman who is ill and needs surgery, but loses her job and feels she has no choice but to marry a man she hardly knows because she thinks she can’t afford insurance on her own.

Cases like these require tough decisions. And with the cost of prescriptions, emergency care, hospitalization and doctor bills hitting all-time highs, many discussions of marriage and divorce are now coming down to simple cost-benefit analyses.

Regardless of the final verdict, health insurance is critical to preventing illness and staying healthy. It just seems to me that major life decisions should be made for the right reasons; whether that’s love, money or health insurance coverage is for each couple to decide for themselves.

Health Insurance Resources:

Inexpensive Health Insurance
Catastrophic Health Insurance
Doctor Visit Insurance

(While also getting the coverage you need)

1. Shop around

Insurance prices vary greatly, so it pays to shop around. Services like InsureMe make it easy to get quotes from multiple agents. (Get free quotes.)

2. Ask around

Ask friends and family about their experiences with their current insurers. Which companies were easy to work with? Which had responsive claim assistance? It also pays to check in with your state department of insurance to see if there are any complaints against specific carriers in your area.

3. Compare apples to apples

Comparing price alone isn’t enough to give an accurate picture of a policy’s merit; be sure to compare policies with similar coverage levels. One plan may be cheaper than another, but it may also provide inadequate protection.

4. Maintain excellent credit

Insurers set premiums based on your insurance score, which is largely based on your credit history. (Data show that people with poor credit are a greater claims risk, so insurers protect themselves by raising premiums for those with low credit scores.)

5. Set a higher deductible

Your deductible is the amount you pay before your insurance kicks in. The more you are willing to pay out of pocket, the cheaper your premium will be. (Just make sure your deductible won’t break the bank if you get into trouble.)

6. Inquire about discounts

Insurers offer discounts to safe drivers, students with good grades and drivers of safe cars (such as ones with airbags and anti-lock brakes. They also reward those who buy their homeowner’s and auto policies together.

P.S. Foggy on the jargon? Visit our handy insurance glossary.

After a 21-month hiatus, we’re officially reopening the InsureMe Insurance Blog! We’re rested and ready to entertain, inform and fulfill our mission: helping people find the right insurance.

Penny Hagerman and I (Jeb Foster) will be your faithful bloggers. Penny has been writing about insurance for years, and her friendly and clear writing style can make sense of even the toughest insurance concepts. (I’ll endeavor to do the same.) Read more about Penny and me here.

Our goal will be to provide advice and resources that will help you find the right auto, home, health, life or long-term care coverage. We’ll also occasionally provide handy tips on things unrelated to insurance, like say, how to save money on gas. Fridays will be dedicated to all things not-insurance. Because as riveting as this subject is, it’s good to take regular breaks.

Why a blog? And why insurance?
We’re glad you asked. You see, as we said earlier, InsureMe’s mission is to make it easy to find the right insurance. We do that mainly by helping people get free quotes from local insurance agents and carriers. But we also know that finding the right policy requires having the resources and information to make a smart decision. That’s why we provide free articles and guides, as well as this blog. (Also, we love that blogs allow for two-way communication, so please, leave your comments and questions.)

Will there be more videos?
For those of you who enjoyed or were moderately amused by our weekly videos (see past episodes here), we regret to say that we’ll be sticking to the written word for the foreseeable future. As much as we loved making the videos, our film guru, James Omdahl, and fearless anchor, Megan Mahan, are no longer with InsureMe. (Yes, it’s sad.)

How often will you update this blog?
We will post about 3-5 times per week. Sometimes more, sometimes less, depending on whether we’ve got some good, relevant stuff to share with you.

In the meantime, bookmark this page, add our feed to your RSS reader, and come back soon (and often)! Oh, and if you’re looking to save on your insurance bills, get a free quote here.

ADDITIONAL RESOURCES

• Download one of our free Insurance Survival Guides
• Browse our Insurance Resource Center
• Watch a short video about InsureMe