Heart attacks raise a red flag for life insurance companies. Yet, that doesn't necessarily mean you'll be denied a policy or pay sky-high premiums if you answer "yes" when asked about heart disease on your life insurance application.
Depending on the severity of your heart disease and the steps you've taken to treat it, you might get a life insurance policy with affordable rates.

"We spend our lives underwriting diseases," says Dr. Robert Gleeson, a vice president and medical underwriter at Northwestern Mutual Life Insurance Company. "And, as an industry, we've had a lot of experience with coronary disease."

According to Gleeson, over time people who have had heart attacks, and other forms of heart disease, tend to have predictable life expectancy rates, and the more predictable your life, the more willing insurers will be to sell you a life insurance policy.

"We are able to offer an insurance policy to the vast majority of people with a history of heart disease," agrees Christopher Graham, vice president and chief underwriter for Hartford Life.

While a heart attack will almost certainly disqualify you from the best "preferred" life insurance rates, according to Graham, there are people who have qualified for the second-best tier — "standard" rates — in spite of a coronary condition.

What can you do?

So how can you get the best possible price for life insurance after a heart attack? The first step is to wait a while.

Contrary to the conventional wisdom that says you should buy life insurance as soon as you realize you need it, you could actually save money by waiting a year or two after a heart attack or other coronary condition.

"For many impairments, the more recent the occurrence, the less favorable the rates," says Graham. "We want to look at what happens afterwards."

In fact, some insurers will charge a "flat extra" premium on top of the rate charged for your heart condition for the first few years after a heart attack or similar occurrence. Delaying your insurance purchase will allow the insurer to see what steps you've taken to improve your health since your heart attack.

"The longer a person goes and is able to demonstrate things like low cholesterol, a good cardiogram reading — things that show that they are taking care of themselves — the better their rating would be," says Gleeson.

Of course, while you are waiting you also need to take steps to improve your health. Following your doctor's orders is one of the most significant things you can to do to help make sure you get the best price possible for life insurance.

"Your doctor will tell you to lower your cholesterol, change your diet, keep track of your blood pressure, take your medications, and exercise. It's tried and true and the best advice," says Graham. "Work with your physician to stabilize your condition and make sure that it is all evident in your doctor's records."

Make sure the insurer knows

By making sure the steps you have taken are detailed in your medical files, it might help the insurance underwriter lower your premiums. The more specific the information you provide, the more likely you are to get the best premium rates possible.

"If someone tells me that they have high blood pressure but doesn't give me any more information, I don't feel very good about issuing a policy without getting more information," says Gleeson. Patients who are more proactive and show they are paying attention to their health tend to reassure underwriters.

"As with anything, you can sometimes be on the fence as to what kind of an offer to make to a life insurance applicant," says Graham. "If you feel good about it, you will usually fall on the side of the more aggressive offer."

Medical underwriting procedures vary among life insurance companies, so shop around — either on your own or through an independent insurance agent.

Top 10 Ways to Save on Life Insurance
Just as there are different life insurance plans to meet your needs, there are different ways to save money on life insurance.
The most important is to shop around. There are hundreds of insurance companies, offering a wide variety of plans and prices. You could save big bucks, just by doing some comparison shopping.

Here are 10 more ways you can save money on your next life insurance purchase:

Consider term insurance

Some financial planners advocate life insurance policies with cash value components because they force you to save money. Others recommend you buy term insurance for the cheaper premium, and then invest the money left over in mutual funds or other investments.

The Texas Department of Insurance claims for those who want to save money, or who cannot afford the larger premiums for whole life policies, term insurance is a good option: "Term life insurance usually gives you the most coverage for the least cost."

If you choose to buy a whole life policy, there are also ways to save money. "You may save money, particularly in the purchase of cash value policies, by buying a policy with low administrative fees," the Texas Department of Insurance advises. "A small number of companies sell these 'low load' policies by mail or telephone. Financial planners, licensed as insurance counselors, also may sell low load policies. Generally, these planners charge service fees and do not receive commissions. Since the initial fees are low, they reduce your risk of losing money if you cash out early."

Cash value in life insurance should not be considered a traditional investment, because any partial withdrawals or loans will reduce your death benefit. Also, if you partially withdraw or take out a loan against your cash value, and the cash value exceeds the premiums you have paid into the policy, you will be hit with a tax bill. In addition, every year you own the policy, more of your premium money goes to pay for the cost of insuring you, and less of it goes toward the cash value.

Furthermore, the difference in price is not just a matter of a few dollars per year. According to LIMRA International, a financial services trade association, the annual premiums for a universal or whole life insurance policy could be eight or nine times more than a term life insurance policy with the same death benefit.

Seek out no-commission policies

"No-load" or, more appropriately, "low-load" life insurance policies have fewer expenses built into them, such as agent commissions and fees for marketing, than more traditional life insurance policies. This can mean lower premiums. For variable life insurance, these lower expenses mean a higher percentage of your premium goes to work for you right away, allowing you to build your cash value faster.

No-load policies can be purchased through financial advisors, who charge "flat fees" rather than collect commissions from insurance companies. Several companies also sell "no-load" or "low-load" policies directly to customers.

Don't buy a guaranteed issue policy if you are healthy



"Guaranteed issue" term life insurance policies, also called "simplified issue" or "quick issue" policies, require no medical exam and are sold to anyone who comes along. For this reason, guaranteed issue policies are riskier for the insurer than policies that require medical exams, and are thus more expensive than regular term insurance policies. While these policies can be a great way for people who have medical problems to obtain life insurance, if you're healthy, you'll get better rates by taking the tests.

The high premiums, combined with a low face amount for the death benefit, can make guaranteed issue life insurance a less desirable option. For some of these policies, you could end up paying more in premiums after only a few years than your beneficiaries will ever receive from the insurance company.

The problem of consumers paying more in premiums than their beneficiaries will receive in death benefits has drawn the attention of state insurance regulators. The National Association of Insurance Commissioners (NAIC) has established a working group to consider what, if any, actions it should take.

Although critics have questioned the ethics of selling insurance products that might perform worse than a savings account, no insurance companies seem to be making excessive profits on these policies, according to Ernst Csiszar, the director of the South Carolina Department of Insurance and the chairman of the NAIC working group on small face value life insurance.

"We are developing a disclosure statement that would warn consumers of the possibility that they might pay more in premiums than the face value of the policy," says Csiszar. "Anything more than that would potentially be a form of rate regulation, and the consensus of the NAIC is that we are simply not prepared to regulate the rates of life insurance."

Shop online first

While not all online life insurance quoting services will give you the best quote available for term life insurance, they can still be a useful source of information about prices. Just remember, the more personal information you give, the more accurate your online quote will be, but "the lowest quote" should still only be used as a baseline for shopping around.

Improve your health

Having health problems can make it hard for you to buy life insurance. High blood pressure, diabetes, and heart disease are among the conditions that can make life insurance companies reluctant to sell you a policy.

Life insurance companies want their policyholders to be in good health at the time of purchase. You're rewarded with lower premiums if you're in excellent health, because it reduces your chances of dying sooner. Dr. Robert Gleeson, a vice president and medical underwriter at Northwestern Mutual, says many companies are dividing up their non-smoker rating classes into as many as five different categories based on many different types and combinations of medical conditions.

Then there are rates for smokers. Research shows smokers pay nearly three times the premium of non-smokers, and you can't quit the day before you apply. According to Gleeson, no company will offer you a non-smoker rate if you've quit for less than a year. For many companies, the minimum "nicotine free" period is two years for a non-smoker rate. Some companies will consider you a smoker as many as five years after your last cigarette.

If you smoke marijuana, pipes or cigars, but not cigarettes, you still must admit to being a smoker on the policy application, although insurers don't generally differentiate between different types of smoke inhalation. (Marijuana users must also disclose their drug use.)

Insurance companies use urine tests to check for the presence of nicotine. If you chew tobacco, you might end up with smoker rates on your life insurance policy.

If you're healthy but somewhat overweight, you still might have a hard time buying life insurance. Even if you're not obese, there are some cases where you'll have to pay more for life insurance if your weight reaches a certain level. In most instances, the heavier you are, the more you'll pay.

If you have a pre-existing medical condition that could lead to higher rates, by showing your insurer a history of improving your health, taking your medications regularly, and acting responsibly about your health, you'll make your underwriters happier and probably get yourself lower life insurance premiums.

Don't buy more, or less, than you need

Many experts say the best way to determine the amount of life insurance you need is a needs analysis. It's a basic formula: short-term needs + long-term needs - resources = how much life insurance you need. Michael Snowdon of the College of Financial Planning in Denver says this method is "probably the most accurate approach in what is an inaccurate and imprecise science."

Experts advise you do an analysis at least once every three years, or whenever you have a major life change. For example, if you have a new baby, you have to recalculate college education needs and child-care costs. If you own a home, a mortgage is likely your biggest financial burden. Because your mortgage balance decreases with each payment, it's important to include those revised figures in your calculations.

If you need more life insurance, get a rider as opposed to a new policy

Just because your needs change doesn't mean you should run out and buy a new life insurance policy. In many cases a rider - an amendment to an insurance policy - can let you expand your coverage without sacrificing your built-up cash value. At the same time, be sure to shop around. If you're still in good health you might be able to get a better deal by buying a second policy to supplement your original one.

Buy as soon as the need exists

An advantage to buying life insurance earlier in life is your premiums will be lower. As you age, life insurance gets more expensive. Many term policies give you the option to renew your coverage at the end of the term without undergoing another medical exam. You also can lock in low premiums by asking for a "level premium" policy, which means for a specific time period, say 20 years, your premium rate stays the same. After that term expires, your rates will increase.

If you don't have any dependents, your money might be better spent elsewhere.

Check your credit report before you apply

Just as you should check your credit rating before applying for a loan, you should have a look at your credit report before purchasing a life insurance policy.

If there are problems with your credit, you could be denied coverage or be placed in a higher risk class because insurance companies will be concerned you would let the policy lapse due to non-payment of premiums. If this happens in the first few years a life insurance policy is in effect, the insurer stands to lose a lot of money because of the high up-front commissions they pay to agents.

According to Tom Spinelli, a research manager at LIMRA International - a financial services marketing and research organization - some general agents, who supervise insurance agents, can earn as much as a 90 percent commission on the premiums you pay on a life insurance policy for the first year. That number can soar to more than 100 percent due to the bonuses typically used by life insurance companies as sales incentives.

Fractional premiums

Once you've found the best insurance policy for your specific needs, find out if you can save money by the way you're billed. Some insurers charge you less if you pay annually, and more if you pay monthly.

In general, the fewer payments you make over the course of the year (known as fractional premiums), the less you'll pay overall. Also, some insurers charge less if they can deduct the premiums directly from your checking account.

Saving money after you've bought a life insurance policy

Just because you've been put in a relatively expensive rate class by your life insurance policy doesn't mean you're out of luck.

According to Dr. Robert Gleeson, a vice president and medical underwriter at Northwestern Mutual, if you see your doctor regularly and establish a record of being a "responsible patient," there's a pretty good chance you can improve your insurance rates.

"If you have a rate-able impairment, ask your insurance company if you can apply for a rate reconsideration in a year or two," says Gleeson. If you've established a history of lowering your blood pressure, cholesterol, or any of the other controllable rate increasing factors, many insurance companies will be willing to lower your premiums, says Gleeson.

The price you pay for life insurance depends on your age, your health, and your lifestyle. So if you are older, you have health problems, and you are a smoker, you will always pay more for life insurance than someone who is younger, healthier, and a nonsmoker. That being said, there are ways to lower your life insurance premiums, even if you fall into a higher-risk category. Following are some simple suggestions for life insurance and term life insurance.

1. Round up
Often, you'll actually pay less for a little more life insurance as you approach multiples of $250,000 in coverage. For example, $240,000 of life insurance coverage might cost $275 per year, while $250,000 in coverage might cost only $260 per year. Find out the rate per $1,000 of coverage, which often drops once you pass a certain level of coverage. This figure will help you determine how to get the most life insurance for the least money.

2. Find a "friendly" life insurance company
Some life insurance companies do offer competitive rates for conditions such as diabetes, heart disease and cancer. These companies employ underwriters who are trained in analyzing people on a case-by-case basis, rather than lumping everyone with a particular condition into one group.

3. Consider quitting
Everyone knows that you'll save money on your insurance premiums if you quit smoking, start exercising, and lose weight. But you might be surprised to find out just how much you can save. Many insurance companies charge smokers double the nonsmoker rate for insurance. (Don't even think about lying, though. If you end up dying of a smoking-related illness, your insurance company can opt not to pay your death benefit.) Similar discounts can apply if you lose enough weight to fall into a preferred category.

4. Forget the riders
While riders may add value to your life insurance policy in certain situations, many are simply an unnecessary expense. Paying extra money to cover an event that's almost guaranteed not to happen just doesn't make sense when you're trying to cut costs. Additionally, many riders simply provide duplicate coverage once your overall insurance needs are met.

5. Find out about hidden fees
You may not realize it, but your life insurance could end up costing you more if you choose to make "convenient monthly payments" rather than paying the entire premium up front. Before you choose a payment plan, compare the single payment price to the total cost of the monthly payments. Do the math, and decide whether the convenience is worthwhile.

6. Shop around
When it comes to insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it's now easier than ever. Save time by going to a website where you can compare multiple insurance companies at once.

Is it ever a good idea to sign your life insurance policy over to a charity? Depends on your motives. Depends on the policy. Depends on the charity.
While many people donate entirely for altruistic reasons, it is true that charitable donations are tax deductible. If that's one of your motives for signing away the benefits of your life insurance policy, you should first confirm a few things.

First of all, ascertain that the organization actually has nonprofit status - that it's a 501(c)(3) organization. Then talk to someone at the organization to make sure it will accept your life insurance policy proceeds as a gift (some charities find they're more trouble than they're worth).

In order to take a deduction, you will have to make the charity both the owner and the beneficiary of your policy. If you name the charity as your policy's beneficiary but not the owner, then the IRS won't let you deduct the donation of your life insurance proceeds from your taxes.

Do you donate a term or whole life policy? Term life insurance policies cost the least, but they're also the least attractive to charities. Once the term expires on that policy, it's worthless. Whole life policies cost more, but they have a cash value that builds up the longer you pay premiums on them. Thus, a whole life policy has some intrinsic value to it, although it's usually far less than the actual death benefit unless you've been paying into it for a long time.

If you donate a term life policy to a charity, you can deduct the cost of the premiums from your taxes. If you donate a whole life policy, you can deduct the cash value of the policy as well as the cost of the premiums.

Those who might not want your life insurance
According to folks who work in university development offices, most charities would rather be able to make use of a donation right away. Assuming that your goal is to fund scholarships and educate, then a life insurance policy is not going to immediately serve that purpose.

Larger organizations, such as major universities, have their own team of money managers - people whose sole purpose is to make the school's money grow. Chances are that such an organization's endowment fund would be better off investing the money you spent on the policy. Insurance companies are in the business of making money. The money they make off these policies is money the charity could be using instead.

Here's an example: One large school accepts - but immediately cancels and cashes in - a whole life policy on a 41-year old male donor. The policy had a $350,000 death benefit and a $20,000 cash value. Assuming the insured lives 38 more years, the cash value must earn only 7.8 percent a year to grow to the death benefit value of $350,000. But that same $20,000, invested in the stock market at an average total return yield of 13.3 percent annual (the average annual rate of return of the Standard & Poor's 500 from 1925 to 1999), will grow to more than $2.3 million over the same time period, according to CPA Marshall Rulnick of Blum, Shapiro and Co. in West Hartford, Conn.

By canceling the policy and keeping and investing the cash value, the school will come out significantly ahead. Assuming an average investment return of 13.3 percent, the donor need live just 23 years before the university's investment returns more than the death benefit - and that analysis also leaves out the immediate utility value to the school of having the cash immediately.

Think small
So it's clear that larger charities can put that money to better use by investing it themselves. But smaller, local charities may not have those resources. And those charities are more likely to welcome any kind of contribution you offer. Still, it helps to remember that the death benefit of a life insurance policy won't be available until after you die, and most charities need the money now.

Gather Information
New parents should evaluate their existing life insurance policies to determine whether they offer suitable types of protection at competitive rates, the appropriate amount of coverage and the correct beneficiary designations. Regularly reviewing this information can reduce the cost of life insurance for families. For instance, term life insurance rates can vary considerably over time and it may be worthwhile for parents to get new quotes for their current policies, as rates have declined steadily since 1996.

After assessing their additional insurance needs, parents can begin researching and comparison-shopping online or through an insurance representative. Those seeking information online can go to Insurance.com to get quotes, compare providers, learn about the different types of coverage available, and request an application to purchase a policy from a variety of providers.

Determine Coverage
Life insurance policies can vary significantly in exactly what is covered, and how much is covered. When reviewing their policies, parents should consider:

Type of Coverage - Term life insurance policies provide protection for a specific period of time and generally provide life insurance only, with no accumulating cash value. In contrast, permanent policies can provide protection for an individual's entire life as long as adequate premiums are paid, and generally allow owners to accumulate cash value over the long term. New parents should keep in mind that the cost and availability of life insurance is influenced by a person's health, age and type of coverage requested.

Amount of Coverage - Whether it is a single or dual-income family, both parents should always carry enough life insurance to guarantee that one of them would be in a position to carry on financially in the event that something happened to the other. Even a stay-at-home parent not earning an outside income should be insured to make it possible for the family to cover expenses, such as additional childcare costs.
Designating a Beneficiary
New parents should update their beneficiary designations after the birth of a child, or the people who are named to receive the benefit of their life insurance policies. Beneficiaries should be chosen carefully, since changing the designation to another person later can be difficult. Both a primary and a contingent beneficiary should be named to ensure funds would be available immediately to the family, rather than flowing to the estate, which could result in delays and additional expenses.

In preparing for the birth of a new baby, parents may spend hours painting the nursery and searching for just the right name. Along with those activities, they should consider their life insurance needs as the due date approaches. Having children can be overwhelming at times, but knowing that their family is financially protected can bring parents peace of mind as they celebrate their new arrival.

Group life insurance, which in most situations is offered by your employer, provides coverage at a reasonable rate. While group life insurance can be a great deal, it might not provide enough protection. If your group life policy is the only life insurance you own, you could be open to financial disaster.
The group advantage

In most cases, you purchase group life insurance through work. Your employer owns the policy, and the employees are the "insureds." You can get group life either as an employee benefit (meaning you don't have to pay for it) or on a voluntary basis (meaning you open your own wallet).

If you receive the policy at no cost, the most common type of coverage is usually a full year's salary payable to your beneficiaries at your death. Some employers with limited budgets might offer smaller policies with face amounts of $5,000, $10,000, or $20,000, depending on your position and seniority at the company. At the other end of the spectrum, larger companies with unions, such as auto manufacturers, might offer very generous death benefits that total two or three times a person's salary.

If your company offers group life on a voluntary basis, the coverage is generally more extensive. The size of your death benefit can vary, but can be several times your annual salary. Some larger employers offer group life plans with a maximum death benefit of $1 million. There are also group life policies under which your spouse and children can get coverage.

Most group life plans are term policies that provide life insurance protection for as long as you work for the company. There are also some employers that offer whole life policies, so you can have permanent coverage after you retire or leave the company. Unlike some individual life insurance policies you could buy on your own, premium rates are rarely locked in. Premiums usually rise every five years because the risk of deaths among the group increases, as employees grow older.

Group life on the cheap

Group life insurance tends to be inexpensive because the insurance company is calculating the overall risk of the group. The chance of everyone at a company dying simultaneously is so small that the cost of insuring a group is cheaper on a per person basis than insuring an individual.

The insurer also assumes that not all people at the company are going to work there until retirement, so the length of the insurance term is relatively short.

A typical universal life group policy for a person in good health at a normal job would cost 5 cents for every $1,000 worth of coverage per month. So for a $100,000 policy, it would cost you $5 per month, or $70 per year.

Poor health? No problem

If your employer gives you group life insurance free of charge, you often don’t need to undergo any medical examination. Most of these are "guaranteed issue," meaning you will qualify for insurance regardless of your medical condition.

When you have the option of signing up for group life insurance through work, those policies usually require applicants to fill out a short questionnaire about health and lifestyle. If a severe health problem is found, insurers will likely require a medical exam, which includes giving blood and urine samples.

When setting a group life rate, an insurer figures in the ratio of females to males (females generally live longer, according to mortality tables), as well as how many smokers are in the group. It also takes into consideration the nature of the work at the company. A bank, for example, would likely have a cheaper group life rate than a construction company.

Think "supplement"

If your employer offers group life, it can be a nice supplement to your existing life insurance if you have it. It's important not to count on group life as your main source of life insurance. Most group life policies, whether you pay for them or not, don't offer enough coverage for your beneficiaries. One or two years of salary, the level of coverage offered by many group insurance plans, would fail to provide complete financial protection when the key breadwinner in a family dies.

Perhaps the biggest drawback to group life is when you leave your job, you’ll probably lose the coverage. Worse, when you leave your job, you might have trouble buying life insurance elsewhere if you've developed a severe health problem.

Some employers will let you continue your life insurance with the group after you leave the company or retire (if you want the option, it will likely cost you 10 to 25 percent more in premiums). Even so, there’s a chance the employer will discontinue the insurance, or switch to an insurance plan that might not take you on.

"The biggest downside to group life is that it's not always portable," says Michael Snowdon of the College of Financial Planning. "If you're counting on [group life] as part of your risk management plan and you change jobs or your employer decides to not offer the insurance any more, you could be hurting."

Jerry Rosenbloom, a professor at the Wharton School at the University of Pennsylvania, says another downside to group life is it does not leave you with a lot of coverage options. For example, if you want a long term care rider on your policy, you would likely have to look elsewhere than your group life policy.

"It always comes down to what your needs are," he says. "You may not have anywhere near the options on a group term as you would with an individual policy. [Group] policies are pretty much standard vanilla."

"It's not a bad deal," says Michael Snowdon, an instructor with the College for Financial Planning in Denver. "It can be a very cost effective way to add to your life insurance" if you already own a policy.

Traveling
Keep the Window Up
As tempting as it might be to wind down a window, lean your arm outside, and enjoy the sunshine while driving, you might get burned. The cooling sensation of the wind blowing across your arm disguises the fact that you might actually be getting badly burned. Use sunscreen liberally, or cover up – or both.

Your Car’s an Oven
Cars get hot, fast, even if it doesn’t feel that warm outside. Direct sunlight can raise the temperature inside a car by over 30 degrees in less than five minutes, which can and has killed children and elderly people over the years. Even keeping a window cracked isn’t enough, so never leave children, pets or anyone inside a car during the summer.

Sunscreen for your Car
Inexpensive sunshields are available that can be placed inside your car, and can help keep temperatures down when you’re away from your vehicle.

On Your Bike
Protect Your Noggin
Make sure you wear protective gear, including a helmet that fits correctly. Only wear a helmet that is approved by either the CPSC (Consumer Product Safety Commission) or Snell. A helmet will have a sticker indicating that it has been approved. Also, remember that helmets are designed to protect you from a single serious accident. If the helmet has taken a hit, it should be replaced.

Maintain a Safe Ride
Keep your bike well maintained, and check tire pressure, brakes and chain. Oil relevant parts when necessary, and check your bike before each ride. Make sure your bell works and that the reflectors are clean.

Stand Out
Wear bright colors to stand out from the scenery. You want other drivers and bikers to be able to see you easily. Always carry some form of ID when you’re out cycling.

More Fun with Two... or more!
There’s safety in numbers so when your kids go for a bike ride, encourage them to take a friend as well as make sure you know where they’re going. That’s something for adults to consider too!

Sun Safety
Sunscreen. Lots of it. Regularly applied. This is important for any outdoor activities in the summer. It doesn’t have to be hot or sunny for sunburn to occur, and although staying in the shade is an essential part of skin care during these months, some sun exposure is unavoidable. Covering up with lightweight, light-colored clothing can also help minimize exposure.

Stay hydrated
Drink lots of water. Avoid alcohol or caffeine, as these will only add to dehydration. Dehydration can lead to heat exhaustion. The warning signs are feelings of nausea, cramping, light-headedness, fatigue, or headaches. Should you suffer any of these, it’s important to get out of the sun, and start drinking water. Untreated, heat stroke may develop, and that is a potentially fatal condition.

At the Beach
Dangerous Toys
Carefully supervise the use of inflatable toys as floatation devices. Not only are they not an alternative to knowing how to swim, they are easily blown out to sea, and children often attempt to recover these toys, which could put them into danger. If your child does need a floatation device, then provide them with a properly-sized lifejacket or other personal floatation device.

Keep Applying
Reapply sunscreen often, especially after being in water. Tell kids to check in regularly for sunscreen. You can still get sunburned in the water, so it's not an alternative to wearing sunscreen. Water-resistant sunscreens lose their SPF after 40 minutes in the water; waterproof sunscreens after 90 minutes so it's critical to reapply. The water may feel cool on your skin, but it's not protecting you from the sun's harmful rays.

A Sailor’s Life
If you’re on the water in a boat or other craft, make sure to pay attention to the weather reports for small craft advisories and other alerts. Also, remember that boats and beer don’t mix. Many accidents and fatalities are caused by alcohol. You wouldn’t drink and drive on land, so don’t drink and drive on water either.

Emotions run high when parents and grandparents plan for a child's future. If you are considering life insurance for your child, it's a good idea to step back from the sales pitches and consider your and your child's needs before you make a purchase decision.
Often parents and grandparents are pitched "special opportunities" by insurance agents to add children to their policies — opportunities that the agent claims come up only every few years — so there's pressure to make a decision right away. Before you buy, ask yourself what benefit comes of buying life insurance on your child. Because the purpose of life insurance is income replacement after a death, and children generally do not provide income, it may not be the right purchase for you.

However, one of the best reasons to insure children is to cover final expenses after a death, such as funeral arrangements, which can range from $5,000 to $20,000. The average family may not have the funds for those expenses, and life insurance can help.

Buy with your head, not your heart

If you buy a policy on a child, most policies have an option for the child to buy additional insurance when he or she comes of age — a sales pitch suggesting that children will have trouble buying insurance when they are right out of college, for example, and on their own for the first time. But the reality is that most young adults can easily obtain insurance coverage for reasonable rates.

If you are worried about funeral expenses, you can buy term life insurance policies with a small face value to cover them. Of course, if you have the means, you can instead save enough money for such emergencies. That way, the money is available for other needs, such as education or buying a new home, and not just if an unlikely disaster strikes.

Buying life insurance is an easy way to protect your family after you're gone. If you know what to look for, you can get great coverage at a price you can afford.
Why buy life insurance?
Topping the list of reasons to buy life insurance is the financial protection life insurance offers. If you're single and just starting out, you may not need life insurance. But as you take on more responsibilities and your family grows, your need for life insurance increases. The proceeds from a life insurance policy can replace the income lost to your family upon your death. You might also want to buy life insurance to pay off debts and expenses, leave money to charity, and cover final and estate expenses.

Choose term or cash value
There are two basic types of life insurance: term life insurance, which provides life insurance coverage for a specified period of time (the term), and cash value (permanent) life insurance, which combines a death benefit with a cash value component. Cash value insurance offers lifetime protection, while term insurance may be the most affordable option if you're buying life insurance mainly for the financial protection it offers, and your need for life insurance is temporary (until your children leave the nest, for instance). Some term policies (called "convertible") will permit you to exchange the term life insurance policy for a permanent one at some point.

Decide how much coverage you'll need
The amount of life insurance protection you should buy depends on how much income your survivors will need, how much you own and owe, and the amount of other life insurance available to you. If you're married, both you and your spouse should consider buying life insurance. One of the easiest ways to estimate how much life insurance protection you should buy is to use a life insurance needs calculator.

Pick a number between 1 and 30
Term life insurance is usually offered for periods ranging from 1 to 30 years. Consider choosing a term that matches your need for life insurance protection. For instance, if your main reason for buying life insurance is to protect your 7-year-old twins until they're out of college, you'll want to buy a policy with a term of at least 15 years.

How much will it cost?
How much you pay for life insurance will depend on a number of risk factors, including your age, your health, whether you use tobacco, your family health history, and the type and amount of life insurance you're buying. Keep in mind that the premium you're quoted initially will increase later. For instance, when you buy term life insurance, rates are guaranteed only until the end of the term (annually for annual renewable term or at the end of a specified number of years for level term). While most life insurance policies can be renewed at the end of the term, you'll pay a higher premium for coverage.

Shop around
When comparing quotes for life insurance, make sure that the insurance coverage you're comparing is similar. And remember, any policy that you buy is only as good as the company that issues it. Find out what rating the company has received from major ratings services, such as A. M. Best or Standard & Poor's. These companies evaluate an insurer's financial condition and claims-paying ability. The company giving you a quote should provide you with this information. You can also contact your state's department of insurance to find out more about an insurer's record.

Submit an application
Once you're ready to purchase a life insurance policy, you'll fill out a life insurance application that contains questions about your current and past health history and lifestyle. You'll generally be required to take a medical exam, arranged and paid for by the insurance company. The answers you give on your application, along with the results from the medical exam and your past health history, will help the insurance company determine whether to offer you a policy, and if so, at what price.

Learn the lingo
Maybe a life insurance contract isn't as exciting as a best-selling novel, but read it anyway. Policy provisions, the amount of benefits, the premium, and other charges you'll pay will be listed along with other important information such as the beneficiaries you've named and the premium guarantee period. Make sure you understand everything in the policy. Under the laws of your state, you may have a "free look" period (typically at least 10 days) during which time you can cancel the policy without penalty.

Do you work in a dangerous occupation? According to the Bureau of Labor Statistics, the top 10 most dangerous jobs are:
1. Timber cutters
2. Airplane pilots
3. Construction laborers
4. Truck drivers
5. Farm occupations
6. Groundskeepers
7. Laborers
8. Police and detectives
9. Carpenters
10. Sales occupations

Do you have the life insurance protection you need?
It's a fact that some occupations are riskier than others. But no matter what you do for a living, take a look at your life insurance needs. Life insurance can help you financially protect your loved ones after you die. If you're single, and no one is depending upon your income for support, you probably don't need life insurance. But if any of the following is true, consider buying life insurance:

You're married and your spouse depends on your income
You have children
You have an aging parent or disabled relative who depends on your income
Your retirement savings, pension, or other cash accounts won't adequately support your loved ones after you die
You have a large estate and expect to owe estate taxes
You own a business
Calculators and worksheets are available online to help you determine how much life insurance you need. You may want to contact an insurance agent or broker who can help you determine what type of life insurance is best for you and the amount of coverage you need.

Do you have the disability insurance you need?
If you work in a high-risk occupation, you probably know how important it is to have disability insurance coverage. But don't rely on government programs such as Social Security and workers' compensation as your main source of protection. In reality, government programs pay only limited benefits under restrictive terms (e.g. you must meet a strict definition of disability to qualify).

Your employer may offer group disability insurance at low or no cost to you. But you may also want to consider purchasing an individual disability insurance policy. Although you'll pay more for individual coverage than for a group policy, you often get more benefits. And keep in mind that if you leave your job or otherwise terminate your relationship with a group, you can't take your disability policy with you, and you usually can't convert it to an individual disability policy. This means that you may be left without disability coverage when you need it most.

Shop around for coverage
Since many different types of life and disability policies are available, it's important to shop around for coverage to find a life insurance policythat meets your individual needs. Since premium costs vary widely, get quotes from several insurance companies. Just make sure you're comparing policies that offer similar benefits.

We all recognize the importance of life insurance. After all, we want to make sure that our loved ones are taken care of when we die. But before you run out and purchase a policy, do some research ahead of time. That way, you'll be sure to get the best possible coverage at the right price. Here are some helpful tips to get you started:
1. Shop around
2. Never buy more coverage than you need
3. The healthier you are, the better the rates
4. Buy sooner rather than later
5. Realize the importance of periodically reviewing your coverage
6. You don't necessarily have to pay a commission
7. You may be paying more for monthly premium payments
8. Don't rely solely on the life insurance offered by your employer
9. Tell the whole truth and nothing but the truth
10. Buying more is sometimes cheaper

Shop around
When it comes to life insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it's now easier than ever. Try out one of the many insurance websites that can provide you with instant quotes. Make sure the website you shop from takes into consideration the factors in your medical history that can affect the premiums.

Never buy more coverage than you need
The key to purchasing the right amount of life insurance is to have just enough coverage to meet your needs. If you have more life insurance than you need, you'll be paying unnecessarily for higher premiums. On the other hand, it's important not to have too little coverage, resulting in you being underinsured.

The healthier you are, the better the rates
It's true – healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens your life expectancy (e.g., if you smoke, take medications regularly, are overweight, have a bad driving record).

Buy sooner rather than later
If you've been putting off purchasing life insurance because you don't want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be.

Realize the importance of periodically reviewing your coverage
Any life change signals the need for a review of your overall financial plan. When it comes to life insurance coverage, you'll want to make sure that this major life event (e.g., birth of a child, children are grown) won't leave you underinsured or overinsured.

You don't necessarily have to pay a commission
One of the reasons for higher premiums is that most life insurance policies pay commissions to the agent/broker. However, you may be able to purchase a no-load policy through an insurer that sells no-load policies directly to consumers.

You may be paying more for monthly premium payments
You may not realize it, but you may be paying more for your life insurance if you pay your premium in monthly installments. Many insurance companies charge extra fees if you make monthly premium payments instead of paying the annual premium.

Don't rely solely on the life insurance offered by your employer
Many employers offer their employees some sort of group life insurance. But this amount of coverage is usually not enough to adequately meet your life insurance needs. In addition, group life insurance policies are not portable, meaning that if you leave your job, you can't take your life insurance coverage with you.

Tell the whole truth and nothing but the truth
If you're thinking about lying on your insurance application, think again. If your insurance company finds out that you lied about a health-related condition or your lifestyle (e.g., smoking habit), they may be able to terminate your coverage.

Buying more is sometimes cheaper
Life insurance usually costs less per thousand dollars once you get into higher coverage amounts (e.g., $250,000). If the numbers work out, you may be able to pay a lower premium while increasing your coverage.

As you may have already discovered, insuring a teenage driver can be very expensive. Drivers under the age of 25 pose the greatest risk to insurers because of their high level of at-fault accidents. Insurance companies seek to limit their exposure by charging higher insurance rates for 16- to 24-year-olds than for any other age group.
How expensive is it?
One option for insuring a teenage driver would be to add your teenager to your existing auto insurance policy once he gets his permanent driver's license. Although this can still be an expensive prospect, your teen might be able to take advantage of certain discounts as a driver on your policy (e.g., safe-driver and multiple-car discounts for which you are eligible).

If you drive an expensive vehicle, it will be even more costly to add your teen to your policy. In this case, you might want to buy your son his own car (a used economy model, of course) and insure it in his name, rather than add him to your own policy. Older vehicles generally pose less risk to insurance companies, because repairs tend to be less expensive than repairs to newer models. Lower risk for the insurer typically translates into lower insurance premiums for you.

What are my options?
The only way to determine your most cost-effective option is to contact your insurance company and shop around with other companies while you’re at it. If you're thinking about purchasing a used car for your teen, be prepared to tell your insurer the make, model, and year of the cars you're considering. This way you can receive accurate insurance quotes. These quotes can help you decide whether to purchase separate insurance for your son or add him to your policy; they may also help you decide which car to purchase, if you go that route. So, get quotes for him as an addition to your policy, as well as for him under his own policy.

Shop Around
You should shop around for other insurance companies by going online for multiple quotes. You may find that it’s less expensive to insure your household drivers with another company, even by several hundreds of dollars. And couldn’t you use that savings for the college fund?

Road trips are a time honored tradition for many Americans, but with sky rocketing gas prices drivers need to be savvier about planning their trip and getting the most out of their gas mileage. To help, we have developed a guide to help keep your car in top performing condition, while also maximizing your gas mileage during the hot summer traveling season.

Check Your Fluid Levels Before You Leave
It is always a good idea to have your cooling system checked, flushed and filled before you head out on the road. You'll also want to check and top off all your car fluids including your antifreeze, engine oil, power steering, brake and transmission fluids and windshield washer solvent.

Inspect Your Vehicle for Any Leaks
Check around your driveway for any suspicious leaks that may be coming from your car. You especially want to check for any gas tank leaks! Even the tiniest leak in your gas tank can amount to a large hole in your wallet if not caught soon enough.

Change Your Air Filter
A clogged air filter can cause up to 10% increase in fuel consumption. By replacing your air filter you will be able to improve your fuel economy and help keep your engine in tiptop shape.

Check All Seat Belts and Car/Booster Seats
Before heading out on the road, make sure to check that all of your seatbelts work and are secure. If you are traveling with a small child, make sure that their car/booster seat is installed properly. You can get detailed instructions on the National Highway Traffic Safety Administration's website.

Plan Your Trip Route in Advance
Before you leave for your trip, take time to map out your course. This will help you find the most direct route to your destination, while also helping to prevent unnecessary stops to ask for directions. Make sure to also check the U.S. Department of Transportation Federal Highway Administration's website for any construction or closed road notices.

Observe the Set Speed Limit
Gas mileage decreases rapidly when your car exceeds 60 mph. By observing the speed limit you will not only save on gas, but also help keep you and your family out of harm's way. To find out the current car and truck speed limits for the state you are traveling to, visit the National Motorists Association's website.

Avoid Rush Hour Traffic
When possible, try driving during non-peak hours. This will help conserve gas mileage and prevent unnecessary wear and tear on your vehicle.

Purchase a Road Atlas or a GPS System
You never know when you might take a wrong turn or decide to make an unexpected stop. By having a road atlas or GPS system inside your car, you can easily get yourself back on track without too much hassle or aggravation.

First Aid Kit and Roadside Assistance Kit
Accidents can happen anytime, anyplace. So be prepared by bringing along a first aid kit and roadside assistance kit. Make sure to also pack an extra blanket, cell phone charger, flashlight, non-perishable foods, a battery-operated radio and extra batteries in case of an emergency.

Pack a Cooler
To avoid multiple food stops, fill a cooler with pop, water and snacks. This will not only help you save time, it will also help you save money!

Kids Entertainment
Keep kids entertained with portable DVD players, CD players, hand-held electronic games, coloring books and small board games. This will help make the trip much more bearable for you and your children.

Garage Kit
Create your own mini garage kit by filling a car organizer with an extra bottle of windshield washer fluid, oil, water and paper towels. This way you will have all the bare necessities right inside your car.

Proof of Auto Insurance
The more miles you drive, the better your chances are of getting into an accident. That is why you need to make sure you have your proof of insurance with you.

Worried that your auto insurance company won't cover you if you're involved in an accident out-of-state? Don't be! According to Ohio insurance agent Brad Vermillion, all U.S. Auto Insurance Companies will cover you when traveling to other states. Vermillion explains that your auto insurance "morphs" into the requirements of the state you are traveling in, so if you do end up in a fender bender, you're covered. In addition, Vermillion noted that most American Insurance Companies will also cover your vehicle while traveling in Canada, but if you are going to Mexico you will need to purchase special insurance. Contact your auto insurance provider for more information about traveling to Mexico.

The results are in and the Insurance.com 2005 Auto Insurance Pricing Report shows that many drivers experienced a reprieve in 2005 from the high costs of auto insurance rates.
In the survey of 46 states, the District of Columbia and nearly nine million auto insurance quotes provided by its customers, Insurance.com found an overall decline in the 2005 national average for auto insurance rates, resulting in a rate fall for over 21 states. That’s a 2% decline from 2004, saving many households an average of $60 per year.

Despite the overall decrease, Insurance.com found many states that normally enjoy lower auto insurance rates experienced an increase from 2004 to 2005. And states that experienced a rate decrease are still paying some of the highest car insurance rates in the country. These statistics leave many drivers wondering why, at a time when insurance rates are down, do so many states still feel a price crunch.

It turns out that where you live still plays a large role in how much you pay for auto insurance. For instance, New Yorkers paid an average of $3,165 for automobile insurance in 2005-a 3.4% decrease from 2004. And Louisiana residents paid an average of $3,100-a 4.9% decrease from 2004. However even with the rate reductions, both states remain the most expensive states in the country for auto insurance. Due in part to the cities’ limited parking, higher traffic population, greater theft rate and increase in uninsured drivers

2005 Auto Insurance Pricing Report*

Top ten states with the largest percentage decrease:


State
2004 Premium
2005 Premium
Difference (Decrease)
Change from 2004

PA
$2,764.42
$2,497.03
($267.38)
-9.7%

NH
$2,197.31
$1,988.05
($209.26)
-9.5%

CO
$2,399.57
$2,194.42
($205.15)
-8.5%

MN
$2,372.35
$2,172.91
($199.44)
-8.4%

OH
$1,921.47
$1,805.94
($115.53)
-6.0%

TX
$2,644.32
$2,490.21
($154.11)
-5.8%

IL
$2,121.47
$2,005.81
($115.66)
-5.5%

LA
$3,258.55
$3,099.40
($159.15)
-4.9%

MO
$2,102.63
$2,000.61
($102.02)
-4.9%

CT
$2,595.71
$2,504.80
($90.91)
-3.5%



Top ten states with the largest percentage increase:

State
2004 Premium
2005 Premium
Difference (Decrease)
Change from 2004

ND
$1,803.36
$2,086.95
$283.58
15.7%

DC
$2,353.65
$2,704.07
$350.42
14.9%

NE
$1,805.63
$2,010.11
$204.48
11.3%

MT
$1,863.66
$2,064.15
$200.49
10.8%

ME
$1,437.42
$1,586.82
$149.39
10.4%

DE
$2,092.05
$2,262.61
$170.56
8.2%

OR
$1,812.94
$1,929.76
$116.83
6.4%

VT
$1,604.22
$1,706.32
$102.10
6.4%

AL
$1,944.71
$2,064.12
$119.41
6.1%

UT
$1,816.72
$1,921.16
$104.44
5.7%



So should you start packing your bags and move to a different state? Not so fast! Where you live does matter, but it is not the only factor insurance companies consider when quoting an insurance rate, they also take into account the following:

Driving violations
Your vehicle
Accident claims
Credit rating
Occupation
Age
Curious to see how your state fared? Below is a list of the 46 states plus the District of Columbia that Insurance.com serves on a daily basis. The list does not include MA, HI, AK who are not serviced by Insurance.com or New Jersey who joined our platform in 2005. States are ranked in alphabetical order:

State
Avg. 2004 Premium
Avg. 2005 Premium
Difference (Decrease)
Change from 2004

AL
$1,944.71
$2,064.12
$119.41
6.1%

AR
$2,213.59
$2,200.91
($12.68)
-0.6%

AZ
$2,516.84
$2,587.96
$71.12
2.8%

CA
$2,249.01
$2,185.97
($63.04)
-2.8%

CO
$2,399.57
$2,194.42
($205.15)
-8.5%

CT
$2,595.71
$2,504.80
($90.91)
-3.5%

DC
$2,353.65
$2,704.07
$350.42
14.9%

DE
$2,092.05
$2,262.61
$170.56
8.2%

FL
$2,512.83
$2,426.98
($85.85)
-3.4%

GA
$2,149.32
$2,136.80
($12.53)
-0.6%

IA
$1,542.11
$1,621.60
$79.49
5.2%

ID
$1,703.04
$1,738.37
$35.33
2.1%

IL
$2,121.47
$2,005.81
($115.66)
-5.5%

IN
$1,934.56
$1,867.70
($66.87)
-3.5%

KS
$2,036.25
$2,107.52
$71.26
3.5%

KY
$2,505.32
$2,569.39
$64.07
2.6%

LA
$3,258.55
$3,099.40
($159.15)
-4.9%

MD
$2,772.97
$2,813.10
$40.14
1.4%

ME
$1,437.42
$1,586.82
$149.39
10.4%

MI
$2,596.29
$2,574.60
($21.69)
-0.8%

MN
$2,372.35
$2,172.91
($199.44)
-8.4%

MO
$2,102.63
$2,000.61
($102.02)
-4.9%

MS
$2,284.23
$2,278.46
($5.78)
-0.3%

MT
$1,863.66
$2,064.15
$200.49
10.8%

NC
$1,300.71
$2,202.94
$902.23
69.4%

ND
$1,803.36
$2,086.95
$283.58
15.7%

NE
$1,805.63
$2,010.11
$204.48
11.3%

NH
$2,197.31
$1,988.05
($209.26)
-9.5%

NM
$2,150.04
$2,157.34
$7.30
0.3%

NV
$2,602.77
$2,557.41
($45.36)
-1.7%

NY
$3,275.79
$3,164.54
($111.24)
-3.4%

OH
$1,921.47
$1,805.94
($115.53)
-6.0%

OK
$2,220.02
$2,181.23
($38.80)
-1.7%

OR
$1,812.94
$1,929.76
$116.83
6.4%

PA
$2,764.42
$2,497.03
($267.38)
-9.7%

RI
$2,813.50
$2,872.84
$59.34
2.1%

SC
$1,971.76
$2,047.26
$75.50
3.8%

SD
$1,737.81
$1,837.24
$99.43
5.7%

TN
$1,876.92
$1,945.70
$68.78
3.7%

TX
$2,644.32
$2,490.21
($154.11)
-5.8%

UT
$1,816.72
$1,921.16
$104.44
5.7%

VA
$1,836.75
$1,908.54
$71.80
3.9%

VT
$1,604.22
$1,706.32
$102.10
6.4%

WA
$2,227.99
$2,348.78
$120.80
5.4%

WI
$1,827.25
$1,767.97
($59.28)
-3.2%

WV
$2,528.90
$2,532.29
$3.39
0.1%

WY
$2,096.45
$2,180.72
$84.27
4.0%



About 2005 Auto Insurance Pricing Report
Insurance.com’s 2005 Auto Insurance Pricing Report highlights the average change in auto insurance premium quotes. The report compares the average auto insurance premium in 2005 against the average premium for the full year in every state*. The information comes from actual auto insurance quotes consumers received from over a dozen of the nation’s leading auto insurance companies who participate on Insurance.com’s comparative auto insurance platform. The quote information was collected from more than two million auto insurance quotes provided by Insurance.com to its customers in 2004 and over seven million insurance quotes collected in 2005.


*Note: While the “2005 Auto Insurance Pricing Report” is a broad indicator of pricing activity in the personal auto insurance marketplace it reflects only the pricing activity of carriers that have participated in the ComparisonMarket auto insurance marketplace in the states where it quotes (all states except Alaska, Hawaii, Massachusetts, New Jersey) and the aggregate profile of consumers who shop using the ComparisonMarket platform

It may seem like Auto Insurance rates, like gas prices, seem destined to climb higher each year. You might be surprised to know, however, that of the 47 states surveyed by Insurance.com for the Insurance.com 2005 Auto Insurance Pricing Report, 21 states actually saw their auto insurance rates fall and the national average actually fell slightly. According to the report, the average U.S. household is paying $2,302 for auto insurance each year, which is a 2% decrease or nearly $60 savings from 2004. This information was collected from nearly nine million auto insurance quotes provided by Insurance.com to its consumers in 2004 and 2005.
New York, Louisiana and Rhode Island came out as the most expensive states for auto insurance, although New York reported a $111 decrease in the average premium quoted from 2004. Maine, Iowa and Vermont led the charge for least expensive states for auto insurance, though all three states experienced increases in 2005.

10 Most Expensive States


2005 Premium
% Change from 2004

NY
$3,164.54
- 3.4%

LA
$3,099.40
- 4.9%

RI
$2,872.84
2.1%

MD
$2,813.10
- 1.4%

DC
$2,704.07
14.9%

AZ
$2,587.96
2.8%

MI
$2,574.60
- .8%

KY
$2,569.39
2.6%

NV
$2,557.41
- 1.7%

WV
$2,532.29
0%


10 Least Expensive States


2005 Premium
% Change from 2004

ME
$1,586.82
10.4%

IA
$1,621.60
5.2%

VT
$1,706.32
6.4%

ID
$1,738.37
2.1%

WI
$1,767.97
- 3.2%

OH
$1,805.94
- 6.0%

SD
$1,837.24
5.7%

IN
$1,867.70
- 3.5%

VA
$1,908.54
3.9%

UT
$1,921.16
5.7%


As with previous years, the report highlights significant pricing variability across the country. Geography, along with credit score, gender, age, driving history and other factors may influence the price you pay for auto insurance. The list does not include MA, HI, AK who are not serviced by Insurance.com or New Jersey who joined our platform in 2005. States are ranked in order from most expensive to least expensive:

State-by-State Breakdown

Rank
State
2005 Premium
% Change from 2004

1
NY
$3,164.54
-3.4%

2
LA
$3,099.40
-4.9%

3
RI
$2,872.84
2.1%

4
MD
$2,813.10
1.4%

5
DC
$2,704.07
14.9%

6
AZ
$2,587.96
2.8%

7
MI
$2,574.60
-0.8%

8
KY
$2,569.39
2.6%

9
NV
$2,557.41
-1.7%

10
WV
$2,532.29
0.1%

11
CT
$2,504.80
-3.5%

12
PA
$2,497.03
-9.7%

13
TX
$2,490.21
-5.8%

14
FL
$2,426.98
-3.4%

15
WA
$2,348.78
5.4%

16
MS
$2,278.46
-0.3%

17
DE
$2,262.61
8.2%

18
NC
$2,202.94
69.4%

19
AR
$2,200.91
-0.6%

20
CO
$2,194.42
-8.5%

21
CA
$2,185.97
-2.8%

22
OK
$2,181.23
-1.7%

23
WY
$2,180.72
4.0%

24
MN
$2,172.91
-8.4%

25
NM
$2,157.34
0.3%

26
GA
$2,136.80
-0.6%

27
KS
$2,107.52
3.5%

28
ND
$2,086.95
15.7%

29
MT
$2,064.15
10.8%

30
AL
$2,064.12
6.1%

31
SC
$2,047.26
3.8%

32
NE
$2,010.11
11.3%

33
IL
$2,005.81
-5.5%

34
MO
$2,000.61
-4.9%

35
NH
$1,988.05
-9.5%

36
TN
$1,945.70
3.7%

37
OR
$1,929.76
6.4%

38
UT
$1,921.16
5.7%

39
VA
$1,908.54
3.9%

40
IN
$1,867.70
-3.5%

41
SD
$1,837.24
5.7%

42
OH
$1,805.94
-6.0%

43
WI
$1,767.97
-3.2%

44
ID
$1,738.37
2.1%

45
VT
$1,706.32
6.4%

46
IA
$1,621.60
5.2%

47
ME
$1,586.82
10.4%



About 2005 Auto Insurance Pricing Report
Insurance.com’s 2005 Auto Insurance Pricing Report highlights the average change in auto insurance premium quotes. The report compares the average auto insurance premium in 2005 against the average premium for the full year in every state*. The information comes from actual auto insurance quotes consumers received from over a dozen of the nation’s leading auto insurance companies who participate on Insurance.com’s comparative auto insurance platform. The quote information was collected from more than two million auto insurance quotes provided by Insurance.com to its customers in 2004 and over seven million insurance quotes collected in 2005.


*Note: While the “2005 Auto Insurance Pricing Report” is a broad indicator of pricing activity in the personal auto insurance marketplace it reflects only the pricing activity of carriers that have participated in the ComparisonMarket auto insurance marketplace in the states where it quotes (all states except Alaska, Hawaii, Massachusetts, New Jersey) and the aggregate profile of consumers who shop using the ComparisonMarket platform. .

Most people complain about the cost of their auto insurance--hardly surprising, given that a typical policy costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. So how can you lower your premium and save yourself money?

If you own a car and drive it, going without insurance is generally not an option. In most states, you are required by law to purchase a minimum amount of liability coverage. And you should probably have more than just the bare minimum if you want to provide yourself with adequate protection. There are steps you can take, however, to reduce your auto insurance costs without having to cancel your policy. Some or all of these steps may be appropriate for you, depending on your circumstances.

Specific ways to save money on auto insurance:

1. Shop around.
One of your first steps should be to shop around. A particularly good time to investigate your alternatives is when your current policy is about to be up for renewal, especially if you find that your premium has gone up. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates.

2. Increase your deductible.
For many people, raising the deductible on their auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible when the time comes.

3. Keep an eye on your credit report.
Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.

4. Drive less.
If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.

5. Don't use your car for business purposes.
Since work-related driving generally subjects you to higher premiums than pleasure driving, it may be in your best interest to stop using your car for business purposes.

6. Drive more safely.
You may be eligible for a price break on your policy if you maintain a clean driving record for a specified period (usually three years). A clean driving record generally means no accidents, moving violations, drunk driving convictions, etc., during that period. The best way to qualify for the applicable discount is to drive carefully and defensively at all times.

7. Buy a low-profile car.
Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly. If you own such a vehicle, you will likely pay a higher premium than if you owned a station wagon, sedan, or other low-risk vehicle.

8. Move.
If you live in a rural community with little crime and traffic congestion, your premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident. Granted, you shouldn't move just to cut your auto insurance costs. However, this may be one of many factors in your decision if you're thinking about relocating from the country to the city.

9. Keep your car in a garage.
Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may entitle you to a slight premium reduction.

10. Have safety/anti-theft devices installed.
You may receive discounts on your insurance if your car is equipped with one or more of the following options: anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., Lojack) may also get you a discount because they reduce the chances of your car being stolen or vandalized.

11. Inquire about multifamily/multipolicy discounts.
You may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowner's). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company.

12. Other discounts
Other discounts may be available if you meet certain criteria. Examples may include discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company.

When it comes to auto insurance rates, who you are determines what you pay.
Automobile insurance premiums are based on a large number of factors, some of which you can control, and some of which, alas, are incontrovertible facts of life. Statistically, a sixteen-year old boy with a 300 horsepower sports car in a big city is far more likely to hit something than a 35 year-old married guy driving a minivan around the suburbs.
While you can’t change your age and some other factors, there are things that you can do to keep insurance premiums as low as possible.
Factors you CAN’T change that impact your auto insurance rates:
Your age Dick Clark and Sophia Loren notwithstanding, aging is unavoidable. And while you may be a mature-looking teen or a youthful octogenarian, the oldest and the youngest drivers are far more likely to have accidents.
Gender Whether it’s the mothering instinct or fewer NASCAR fantasies, women statistically make safer drivers.
Marital Status Ok, you can change this, but there have been no reports of people marrying simply to lower their insurance rates.
Factors you CAN change that impact your auto insurance rates
Geography Where you live matters. For instance, those living in rural America are far less likely to have a collision or a stolen car than those living in a city. But, sometimes even just moving across the street can change your rate.
Driving violations Speeding tickets, running red lights, failure to yield, etc. all count toward your auto insurance rate.
Your vehicle If you must have that cherry red Corvette or the Ferrari Testarossa, be prepared to pay for it. Your insurance premiums will be higher.
Accident claims While you can’t change the past, keeping your slate clean and free of accidents will hold you in better stead than lots of fender benders.
Credit rating That’s right — many insurance companies view having a poor, or even no credit history as suggestive of higher risk.
Occupation A little easier said than done. Believe it or not, insurers have found correlation between your occupation and risk. Makes sense that the pizza delivery guy could be a higher risk!
Other factors that go into determining premiums:
Miles driven per year
Distance to work
Occupation
Years of driving experience
Business use of the vehicle
Whether or not you currently have auto insurance
Theft protection devices (often results in discounts)

It may be easier than you think!
There are many reasons why you may choose to move your auto insurance coverage to another company. You might have changed jobs and are eligible for a group discount through another insurer, or maybe you're unhappy with the service that your present company provides. Perhaps you've simply found another company willing to offer you the same level of coverage for considerably less money. Nowadays, many insurance companies provide 24-hour rate information through their toll-free numbers or websites, so investigating your options has never been easier. Another valuable source of information is your state's Department of Insurance.
Why switch to a new insurance carrier? Regularly review your auto coverage to make sure that you're receiving the best insurance value for your money. You'll discover that it pays to shop around. In some states, premiums for identical policies vary widely among different companies. The reasons for this price variation can be very complicated, but they boil down to a company's claims experience with policyholders in your coverage group (e.g. people of similar age, number of accidents, type of vehicle). For example, if a large number of people in your coverage group files claims during a given year, your rates will likely rise. When this happens, better discounts and lower overall premiums may be available at other companies, although some states strictly regulate the price of coverage. When you decide to switch your auto insurance to another company, you'll find that it's fairly easy to do so.
How to cancel your old policy Generally, all you need to do to cancel your auto policy is to inform your insurance company in writing, specifying the date you want the policy canceled. In some states, your new agent must notify your previous agent of the policy change. Some companies ask that you send back the actual printed policy. Your insurance company will send you a cancellation request form that you should sign and return. Examine the form carefully to make sure that all information regarding your policy is correct. If you do not receive such a form within two weeks of sending your letter, call your agent or the company immediately to check on the status of your cancellation. Don't just walk away from your old policy without formally canceling it. Otherwise, the insurance company might assume you wished to continue your coverage, and it might eventually terminate the policy for failure to pay premiums and report your lack of coverage to your state's Department of Motor Vehicles. This can hurt your credit rating and your ability to get a new policy.
Be sure to get a new policy first Always have a new policy in place before canceling your old auto insurance coverage. You don't want to have a gap in protection for even one day. Fortunately, there is little danger of this happening. Most states require all drivers living within their borders to carry a minimum level of auto insurance. So, most insurance companies now require policyholders to present proof of new coverage before they will cancel an active policy. You may need to show your old carrier copies of a new insurance identification card or the Declarations Page of your new policy. Your new company will be able to time the onset of your new policy to coincide with the cancellation of your old coverage.
When to switch policies The best time to switch auto insurance carriers is just before your old policy is about to renew. This will allow you to avoid paying for printing and start-up expenses the company incurs as part of the policy renewal process. You also avoid the inconvenience of figuring out the amount of any unused premium that should be returned to you.
A renewal notice will be sent to you approximately a month before a new policy period begins, depending on the regulations in your state. The notice will describe your coverage, discounts, and the amount of premium you owe. Should you decide to switch policies, you'll need to line up a new policy by the time your current policy renews, although most states allow about a month after renewal to switch. If you miss the deadline, you may end up paying a cancellation penalty.
You don't have to wait until renewal All standard auto insurance policies contain a provision giving you the right to cancel your policy at any time, once proper notice is given to the insurance company. You don't necessarily have to wait until renewal time. Cancellation after a policy has renewed is most convenient at the end of a payment cycle. That way, you're not forced to deal with recovering the unused portion of your paid premium. But if you choose to cancel in the middle of a cycle, the company will prorate your latest premium payment up to the cancellation date and return the remainder to you. However, a special "short rate" (cancellation penalty) will be deducted to pay the administrative costs of renewing the policy.

You probably know that lenders use information in your credit report to determine if they'll give you credit. But did you know that in some states, insurance companies also consider your credit history? Good or bad, your credit history may affect your ability to purchase homeowners or auto insurance coverage and help determine what premium you'll pay.
For example, consider these scenarios:
Two years ago, you were unemployed for six months. Before you could find a new job, you fell behind on several credit card payments. Now your auto insurance rates are going up, even though you've never filed a claim against your policy.
You've always paid your bills on time, and you've always paid cash instead of applying for credit. Why could this be a problem? Similar to when you apply for a mortgage or credit card, your lack of credit history means you’re an unknown quantity – there is no history of monthly credit card payments.
Many people believe that only their driving record is important, but that’s simply not the case. The majority of auto insurance companies consider credit to be a very important rating variable.
What's the score here? Insurers have always used various criteria to determine who to insure and at what rates. For example, if you're applying for auto insurance, your insurer might consider your age, driving record, make and model of your car, and how many insurance claims you've filed in the past. But within the last decade, insurance companies have also begun using credit information as an additional factor to help predict which persons pose more risk. Insurers believe that the healthier your credit history, the less likely you are to file a claim against your auto or homeowners insurance policy. And the more likely you are to pay your insurance premium payments.
If your credit history (along with other factors considered) suggests that you are likely to be a responsible driver, you may be offered a lower premium. But if your credit history is tarnished--or if you have little or no credit history--you may pay higher premiums for the coverage you're offered. You may even be denied coverage altogether.
How you can improve the score If you're denied insurance coverage because of your credit history, the federal Fair Credit Reporting Act allows you to order a free copy of your credit report from the bureau used by the auto insurance company who denied you. If you feel the information provided to the credit bureau is incorrect, you can dispute it.
If you've been turned down for insurance, this may feel like too little, too late. But if your credit history is affecting your ability to get auto or homeowners insurance (or the premiums you're charged for it), here are a few things you can do:
Clean up your credit immediately. Pay your bills on time every month, get rid of the high interest credit cards, and don’t spend beyond your means.
If you don't have any credit, get some. Your lack of history is what's hurting you; to the insurance companies, you're an unknown quantity. Although you don't want to run up excessive debt, you do want to show that you can use credit responsibly. Use your credit regularly, and always make your monthly payments in a timely fashion.
Once a year, get copies of your credit report from all three major credit bureaus. (The information contained in one report may not be reflected by the others.) Make sure the information on them all is correct. Dispute any errors with both the creditors and the credit bureaus involved.
Shop around for insurance. Depending on the insurer, prices for the same coverage can vary substantially.
Consider higher deductibles to save money. For both homeowners and auto insurance, higher deductibles can lower your premium costs. Just make sure you can cover the deductible should you be faced with a claim.

Hortencia Privett is like thousands of other owners of Sports Utility Vehicles (SUVs). Privett admits that she loves what she drives, a silver 2002 Jeep Liberty, but insurance experts caution that she and other SUV owners have to pay considerably more for insurance than those tooling around town in smaller cars.
The cost to insure an SUV is generally 10 to 20 percent more than a car, depending of course on a driver's location, claims experience, credit history and other factors, confirms Loretta L. Worters, vice president of communications for the Insurance Information Institute, in New York. "Yes auto rates for SUVs are generally higher than for automobiles," says Worters. "Rates of course correlate to risk -- and there are a lot of risk factors with SUVs. Not so much what affects them, but what they do to other vehicles."
Cutting to specifics, Worters pointed out that an SUV's "potential for liability and medical payments coverage losses is a real concern to the industry. Pedestrians hit by SUVs have a 300 percent higher risk of serious injury than if they were struck by a passenger car. There's also greater injury in cars that are hit by SUVs than it would be with another car."
Privett acknowledges that she has to pay more for coverage, but that's okay with her under the circumstances. "I feel safer in my SUV," explains Privett, an office secretary in Illinois. "I've had an SUV for three years, and I wouldn't go back. Even though I have to pay more for insurance, it's worth the added cost to me."
Privett's SUV sentiments are hardly unique. It's been reported that SUVs accounted for upwards of 24 percent of all new-vehicle sales in the United States for 2003 and, with well over 20 million on the road today, SUVs represent almost 12 percent of all registered vehicles in the U.S.
The safety reputation of an SUV or other vehicle type certainly has a bearing on insurance costs. On the subject of SUV safety, a spokesman for the Insurance Institute for Highway Safety (IIHS) brings up what he considers to be a misconception about SUVs.
"The misconception is that many people think that SUVs are safer than cars, and they're not,” says IIHS's Russ Rader. "Vehicle crash statistics that we compile each year show that pound for pound, if you're comparing vehicles of a similar weight, SUVs tend to be less safe than cars."
Rader says that cost of repair is a big issue from an insurance standpoint. "SUVs can be costly to repair in minor crashes, because they don't have to meet the federal government's standards set for bumpers on cars in terms of withstanding crashes in commuter traffic or parking lots," explains Rader.
Says Rader: "Most SUVs aren't built like cars and don't drive like them. Yes, they're higher and you can see the road ahead better, but that height also gives them a higher center of gravity, which makes them less balanced than sedans -- and more likely to flip."

When young adults graduate college they have aspirations of starting their first "real world" job, getting their own place and buying a brand new car - one that does not need a screwdriver to start. However, college students are also graduating with much more than just a college degree and a dream, they are graduating with a substantial amount of debt. In fact, many students graduate with an average of $3,262 in credit card debt - 10 percent of that group owing more than $7,000 in credit card charges.
Students forget to factor in other life costs, such as health care, 401K deductions, income taxes, car payments, auto insurance, rent, utility bills, student loans, credit card bills and food expenses into their monthly budget. "After you graduate and land your first job, you do not think about having to pay for all of these expenses," stated a graduate from Ohio University. "Unfortunately, reality sets in pretty fast and you realize you do not have the money to make ends meet - it is a hard lesson to learn!"
College DebtWhy is there so much credit card debt among college students? "Many credit card companies set up kiosks on college campuses offering free pizzas and t-shirts to try and entice students to sign up for a credit card," noted David Roush, CEO of Insurance.com. "The problem is many college students do not have the income or financial knowledge to manage a credit card - a problem that is leading students into a lifetime of financial despair."
In addition to the outrageous credit card bills, students are also graduating with student loans ranging from $10,000 to $52,000 or more. Often students figure they will be able to pay everything off once they get a job and start making "real" money, but that simply is not the case.
Not only are credit card and student loan bills financially crippling to many new graduates, it is also forcing grads to cut back on other necessary expenses, such as auto insurance - one bill you legally cannot drive without! "Driving without auto insurance is illegal in all 50 states, however, many young adults elect to go without auto insurance because they think they cannot afford to have it," stated Roush. "A scary thought when 15.3% of all automobile accidents are caused by drivers between the ages of 20 - 24."
While deciding not to pay for auto insurance may seem like a good idea at the time, graduates are not considering the expense of getting caught without auto insurance or the cost of getting into an automobile accident. "Imagine if you had to pay the medical bills of someone who gets injured in car accident when you are at fault - suddenly paying for car insurance does not seem so bad," says Roush.
The Penalty of Driving Without Auto InsuranceAccording to the Insurance Information Institute, the cost of driving without auto insurance can vary from state to state, depending on the percentage of drivers who are uninsured in that state. For instance, in Massachusetts residents can be charged anywhere from $500 to $5,000 in fines and receive a one-year jail sentence. In Florida, Louisiana, Connecticut and New Jersey, drivers operating a vehicle without the state required minimum will have their vehicles impounded - which can cost you thousands depending on how long it takes you to get your car out.
To find out the auto insurance state minimum and fines and penalties for driving without insurance in your state.
How to Budget For Auto InsuranceAs you look for auto insurance, make sure to check if the insurer offers a 6-month or 12-month payment plan to help you manage your auto insurance payments better. In addition, many auto insurance providers offer a variety of discounts, including alumni discounts. So make sure to ask if your college or university is eligible for a discount, because every bit helps when you are first starting out on your own.

Did you know that at least 50 percent of all holiday traffic fatalities are alcohol related? In fact, that is why December is designated National Drunk and Drugged Driving Prevention Month. Definitely a sobering thought if you are hosting or attending a holiday party this year!

Another thought that just might have you rethinking your company's "open bar" policy is that if an employee or guest leaves your party drunk and gets into an accident, your company could be liable - even if that person may have went to another party or to a bar after leaving your party. If you don't think your company can be found liable - think again! Most states have some form of "social host" laws in place, specifically targeting employer-hosted events.

Why so much focus on company hosted parties? Many courts feel that employees have a greater obligation to attend company gatherings, as opposed to social gatherings hosted by friends or family members. Kind of makes you reconsider having that "attendance mandatory" notice on your holiday invitations.

Company Sponsored Parties
Planning your company's holiday party this year? If so, consider incorporating some, or all of these holiday party suggestions into your company's festivities.

Host your party at a local hotel and arrange for discounted or complimentary rooms so employees won't have to drive home impaired.
Hire a cab company or limousine service to provide complimentary rides for employees that are too drunk to drive home.
Check employees' coats and keys at the door. This will help you regulate who is too drunk to drive and who is able to provide rides home.
Hire a bartender to serve the drinks, rather then letting employees and guests serve themselves.
Provide plenty of non-alcoholic drinks and juices.
Designate a person to keep an eye on everyone and the amount of alcohol they are consuming.
Discourage guests from drinking excessively and stop serving anyone who appears intoxicated.
Include a disclosure on your holiday invitations that notes your company's position on drinking and driving and that the company supports and practices the designated driving law.
Pass out designated driver stickers to all attendees participating in the program.
Close the bar 90 minutes before the party has ended.
Serve a variety of nutritious foods to help balance and absorb any alcohol guests may have consumed.
Hosting a Holiday Party
Planning a family gathering or holiday party at your house? Then you too could be potentially liable for any guests that leave your home drunk. If your guests get into an accident because they had too much to drink at your party, the finger could be pointed at you. The best solution is to have a dry party filled with holiday foods, games, prizes, and non-alcoholic beverages. However, if you still want to have a holiday party with alcoholic beverages, then we suggest practicing the following tips.

Ask friends to designate a driver before the party begins.
Collect everyone's coats and keys as they arrive.
Encourage lively conversations and group activities that focus on fun and not alcohol.
Make food and non-alcoholic drinks easily available.
Provide plenty of food so the focus is not solely on alcohol.
Never serve alcohol to anyone under the age of 21.
If someone has had too much to drink, offer to have them spend the night or call a cab - don't let them drive home drunk.
Drinking and Driving Myths
Think you know everything there is to know about drinking and driving - think again!

Coffee or a cold shower will sober you up.
False: Only time can sober you up.


If you avoid liquor and stay with beer and wine you will be fine.
False: A 12 oz. beer and a 5 oz glass of wine have as much alcohol as a 1.5 oz glass of whisky.


As long as you roll down the windows and turn up the radio, you will be okay to drive home.
False: Neither of these will help enhance your alertness, motor skills or judgment.


By driving slow, you will avoid getting into an accident.
False: Driving too slow could potentially cause an accident and besides, driving under the influence is never a good idea at any speed.
DUI
A DUI could do more than potentially harm innocent people; it could also affect your auto insurance coverage. While insurance companies are not allowed to deny coverage to policyholders because of race, religion, residence, age or occupation - they are allowed to cancel your policy for having your driver's license suspended or being convicted of a crime, such as a DUI. That is something to think about before you pick up that next drink at a holiday party!

Holiday Mall Parking Lot
Many things can happen to your vehicle in a mall parking lot while you are inside happily holiday shopping away. For instance, your car can get damaged by opening doors, rolling shopping carts or testy drivers trying to fit into tight parking spots. While this may seem like the price your car has to pay for trying to go to the mall during the holidays - it doesn't have to be. There are many things you can do to help keep you and your car safe while at the mall this holiday season.

Popular Shopping Malls
After work and weekends are the most popular times for people to go holiday shopping. With that being said, consider shopping during the day or before noon on weekends. This will not only help you avoid over crowded mall parking lots, it will also help you to get in and out of stores quickly!

In addition, avoid going to popular malls in your area during peak shopping hours. This will help reduce the amount of cars and people you have to dodge and help keep your car safe from potential theft and damage. To help identify the most popular malls in your area, we have listed the Top 10 Largest Shopping Malls in the United States - so you can avoid what could potentially turn into a holiday shopping nightmare.

Largest Shopping Malls in the United States

South Coast Plaza, Orange County, CA
King of Prussia Mall, Philadelphia, PA
Sawgrass Mills, Ft. Lauderdale, FL
Del Amo Fashion Cetner, Los Angeles, CA
Mall of America, Minneapolis-St Paul, MN
Grand Canyon Parkway, Las Vegas, NV
The Galleria, Houston, TX
Woodfield Mall, Chicago, IL
Plaza Las Americas, San Juan, PR
Roosevelt Field Mall, New York, NY
Stay Safe During The Holiday Season
No matter when or where you go holiday shopping, safety should always be your first priority - especially when it comes to your car. That's because mall and shopping center parking lots are prime targets for car theft, car vandalism and robberies.

To help prevent this from happening to you, Insurance.com has provided some helpful Holiday Shopping Safety Tips to keep you and your car safe and secure during the holiday season.

Holiday Shopping and Driving Safety Tips

Always park in a spot where there is plenty of light and if possible, park close to your destination.
Avoid parking next to vans, trucks with camper shells, or cars with tinted windows.
Close all windows and lock all doors.
Take note of where you parked your car and what store entrance it is closest to.
Shop with a friend or family member - having a friend walk to and from the parking lot with you will help keep you both safe and sound.
Place your packages in your trunk or under your seat where no one can see them.
Condense your packages into one or two bags to create the illusion that you did not purchase so many valuable (and theft-worthy) items.
If you run out to your car to drop off packages while shopping, make sure to move your car to a new location before heading back into the mall. This will help lead anyone that is watching you to believe that you and your packages have headed home for the night.
Leave your most expensive purchases until the end of the day when you can quickly hop in your car and go directly home.
Request for a security guard to escort to your car.
When walking to your car have your head up and your keys ready, the last thing you want to do is appear vulnerable to criminals. In addition, make sure to look under and in front of your car to make sure that no one is waiting to attack you.
Do not approach your car alone if there are suspicious people in the area.
Be aware of your surroundings. Often thieves will disguise themselves as normal shoppers who accidentally bump into you stealing your purse, wallet, packages, car keys or even worse, attacking you.
When entering your car, make sure to check your front seat and back seat for anyone that could potentially be hiding in the car.
Get into the car, lock the doors and exit the area immediately. Criminals prey on shoppers who sit in their cars to make phone calls or review their purchases for the day. Don't leave yourself susceptible to such a risk.
What Your Auto Insurance Coverage Won't Cover
Through the course of a shopping day, many people will take packages to and from their car to lessen the load while they are walking through the mall. Even though this may seem like a great idea at the time, it is not if the gifts are stolen from your car. That's because many auto insurance company will not cover holiday packages stolen from a policy holder's car - even if they were securely stored in your trunk. However, if you paid for your gifts with a credit card you might be in luck! Some credit card companies will cover stolen purchases if they were paid for with their credit card, but if you paid with cash or check, you are out of luck.

Regardless of how you paid for your gifts, you should always file a police report to help alert police of the incident and to potentially prevent this crime from happening to someone else.