Loudoun Insurance and South Riding Insurance, Northern Virginia Zip 201-221, Near 20152

Drumstick drama: Does homeowners insurance cover food poisoning?

2011-11-23T15:39:00.004-05:00

You have a lot to be thankful for this holiday season--friends, family, your health and your mother's prized pecan pie recipe. And here's one more item to add to that list: your homeowners insurance policy. You will be very grateful that you covered your bases if you happen to get sued by the guests at your Thanksgiving table.

Food-borne illnesses account for 128,000 hospitalizations and 3,000 deaths in the United States each year, according to the Centers for Disease Control and Prevention. The majority of these outbreaks result from contamination during the preparation and handling of food.

So remember to wash your hands before touching the sweet potatoes, separate the raw turkey from the cranberry sauce, and use a food thermometer to make sure your bird is cooked to an internal temperature of 165 degrees - otherwise, Aunt Martha might just take you to court.

"If a guest gets sick as the result of the Thanksgiving feast you prepared, it's possible that you could be liable," says Carole Walker, executive director of the Rocky Mountain Insurance Information Association.

Safeguarding against a cornucopia of calamity

And your liability as a host or hostess doesn't end with the bounty on your table. You may also be held accountable if a guest is accidentally injured on your property or imbibes a little too much holiday cheer and crashes into another motorist. The latter is known as "social host liability" and laws vary by state.

"That's why it's important to make sure you take steps to prevent any harm to your guests," Walker says. She recommends:

Asking about food allergies.
Properly cleaning and cooking food.
Offering non-alcoholic beverages.
Shoveling and salting sidewalks.
Crating pets.

"All of these steps can help you avoid Turkey Day legal troubles," she says.

The good news is that your homeowners insurance should cover you if you accidentally poison a friend or relative with a bad batch of stuffing or one of your dinner guests chokes on a drumstick and decides to sue.

"If your guest gets sick and sues you for damages, your insurer will pay for your legal expenses for a resulting lawsuit, even if the suit is groundless," says Loretta Worters, vice president of the Insurance Information Institute.

But how much insurance coverage should you have in case your Turkey Day takes a turn for the worse?

"You should buy enough liability coverage to protect your assets," says Walker.

If you own property and/or investments that are worth a great deal more than the liability limits on your current homeowners policy, Walker advises you discuss umbrella insurance coverage with your agent or company.

"We live in a litigious society and you need to consider what could be at stake if you had a claim or lawsuit filed against you when someone is injured on your property, or if you, a family member, or your pet is responsible for hurting someone or causing damage to someone else's property," she says.

How much coverage can I expect from typical homeowner insurance?

Worters agrees that it is better to err on the side of caution.

Generally, most homeowner's insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available. Increasingly, homeowners are urged to consider purchasing at least $300,000 to $500,000 worth of coverage of liability protection, Worters says.

She says it is "advisable" to purchase an additional $1 million in umbrella insurance coverage.

"An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo, or auto policy. It will also cover you for things such as libel and slander," she says.

According to Worters, you can purchase a $1 million personal umbrella liability policy for about $150 to $300 annually.

The original article can be found at Insurance.com:
Drumstick drama: Does homeowners insurance cover food poisoning?

Please call our Allstate agency - NOVA Insurance Group (Chantilly, VA) with any insurance related questions @ 703.263.7800

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Really think about getting life insurance

2011-11-17T17:02:00.009-05:00

Really think about getting life insurance
November 6, 2011, By Scott Lunsford, Chillicothe Gazette.com

You probably have heard the expression "we are born to die." Somebody once joked to me that the death rate is 100 percent. We all will have the same fate.

Will you have a car wreck or a house fire during your lifetime? I bet you carry auto and homeowners insurance just in case you do, right? We are required to have an auto insurance policy, but I bet most of us would have a policy anyway. So, you never might have a car crash or a house fire, but you are going to die. Why is it, then, that so many people refuse to buy life insurance?

I got into a debate recently about which insurance is better, term life or whole life. The easy answer would be the best policy to have is the one that's in effect at the time of death. Some people will say you always should buy term insurance because it is cheaper and you could "invest the difference." So, if the term life premium is $30 per month and the whole life premium is $100 per month, that would leave $70 to invest. Yeah, right. Our savings rate in America is about 0 percent. Most people just don't have that kind of discipline, at least for an extended period of time.

I want to compare a term life policy to a whole life policy so you can understand the difference. For the example, I will use a 20-year term policy compared to a 20-year whole life policy. The insured will be a 45-year-old man, non-tobacco user, purchasing $100,000 of coverage. The premiums are $40.23 per month for the term policy and $205.65 per month for the whole life policy.

So, at first glance, if price is the deciding factor on which policy to buy, then term insurance is the clear winner. The savings per month is $165.42. So, if you had the discipline to save that each month, at the end of 20 years, you should have a nice account built up. I contend that you will not do that, however. The majority of us are not savers.

Let's fast forward to the end of the 20th year. Congratulations to our insured, he did not die. The 20-year term policy has expired. The whole life policy is paid up, which means no more premiums are due. In addition to that, the death benefit, because of dividends, has grown to $122,700. Additionally, whole life builds cash value and the company projection is that the cash value at the end of the 20th year will be $61,039.

Our original 45-year-old spent $9,655.20 during the 20 years on a term life policy and has nothing to show for this outlay. He spent $49,356 for the whole life plan, but if he chooses to cancel the coverage, his return will be about $61,000 -- or $11,644 more than he paid for the coverage. If he chooses to keep the policy in place, he has a $122,700 life insurance policy that doesn't require any additional premiums. Incidentally, the death benefit and the cash value account will continue to increase in value.

Which one should you buy? I have just laid out an example I hope helps you make that decision. If you don't have a life insurance policy, then you are going to create a financial burden for someone at the time of your death. If you already have life insurance, is it the right one?

Remember, the best kind of insurance is the one that's in force when you die.

(Scott Lunsford is owner of Lunsford Insurance Agency in Chillicothe.)

Need help with Life Insurance? Please call us at NOVA Insurance Group (Chantilly, VA) at tel: 703.263.7800, or send an email to: ku@allstate.com

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Do You Need Long-Term Care Insurance?

2011-11-10T17:33:00.003-05:00

Do You Need Long-Term Care Insurance?
Published November 09, 2011
DailyFinance

According to the Department of Health and Human Services, those of us who reach age 65 will have a 40% chance of entering a nursing home, and 10% will stay in one for five years or more. So does this mean you need long-term care insurance? Possibly. Those numbers don't take into account the millions of aging adults who will need some kind of in-home care as their health falters. By 2020, 12 million older Americans will need long-term care, according to one government estimate. Most will be cared for at home by family members.

Long-term insurance is marketed as a way to fill in the financial gaps if you have a chronic illness or disability and need help with the activities of daily life, like bathing and getting dressed. "The additional expense of long-term [care] can be $40,000-$90,000 a year," says Rich Arzaga, founder of Cornerstone Wealth Management. "The average American cannot survive this risk and expense."

Nor can you count on the government to bail you out when the time comes: Medicare doesn't pay for "custodial care." Medicare pays only for medically necessary, skilled nursing facility or home health care. It may not give you the choice of the best care in your area. And while Medicaid pays for certain types of care for the low-income elderly, who is eligible and what services are covered varies from state to state, and is determined by such things as income and personal resources.

"Many folks wrongly believe that letting the government pay for their anticipated long-term care needs is the best solution, but Medicaid programs are in trouble funding-wise in every state," says Wilma Anderson, a registered financial consultant. "In the future Medicaid may become even harder to qualify for. If you don't plan for LTC, you may have limited or no choices to pay for care when your health changes."

Here are four things to consider when planning for long-term care:

How will you pay the bills?: Many financial planners and elder care experts say long term care insurance is a good place to start. It typically helps pay for things that your medical insurance won't, like in-home care, or remodeling your home so you can stay in it longer. But as with all forms of insurance, it's vital do your research.

Investigate the cost of a stand-alone long-term care policy: The younger you are, the lower the premium will be. The cost really depends on factors like family health history, age, how much insurance you think you'll need, how long you'll need it, where care is received, and more, explains Marion Somers, PhD, author of Elder Care Made Easier: Doctor Marion's 10 Steps to Help You Care for an Aging Loved One.

Shop around for the best policies and prices. Benefits vary: Weigh the scope of coverage, benefit and waiting periods, inflation protection and other factors against your income and health needs.

Read the fine print: "Insurance companies may try to offer added-value features beyond the basic benefits, but most of them don't add much value at all. Be thoughtful and realistic about your needs and priorities," says Ryan Malone, founder of InsideElderCare.com.

Truthfully, says Somers, "Not everyone needs long-term care insurance, but everyone needs a plan."

Self-inflicted car insurance wounds: I crashed into myself!

2011-11-03T14:08:00.002-04:00

Self-inflicted car insurance wounds: I crashed into myself!
By Emmet Pierce
Published November 03, 2011
Insure.com

Drivers often are their own worst enemies, causing car insurance claims and failing to recognize the things they could have done -- or not done -- to avoid them. Penny Gusner, consumer analyst for CarInsurance.com, says most car accidents can be avoided. A frequent cause of claims is driver distraction. With devices like GPS tools, BlackBerrys and iPhones competing for your attention, you may find yourself multi-tasking when you should be keeping your eyes and your mind on the road.

"People are just inattentive nowadays, it seems," Gusner says. "They are texting when they get in their car. They are trying to answer the phone. Most things people do [to cause accidents] seem to be preventable." Fortunately, your auto insurance policy often covers damage that's due to your own bad judgment.

Read on for eight self-inflicted car insurance wounds and how your insurance will help you out - or not.
1. My wife backed out of the garage and hit my car in the driveway. Can we make a claim on our liability policy?
You can't make a claim for yourself on your own liability coverage. However, Rick Ward, director of auto claims for MetLife Auto & Home, says you typically would be covered if you have a collision policy. Unlike basic liability coverage, which pays for the harm you cause to others, collision coverage pays to repair your own car in the event of an accident. Often, insurance companies that hold the policies on both vehicles in this type of accident will waive one or both of the deductibles. Tully Lehman, a spokesperson for the Insurance Information Network of California (IINC), says that in such cases where the drivers have different insurance providers, the company representing the driver who backed into the parked car likely would cover the damages.
"It is the responsibility of the driver backing out of the driveway to make certain that the path is clear," explains Lehman.

2. Another car hit my door as I was opening it. Whose insurance pays?
In this case, insurance adjusters would look very closely at the nature of the damage to determine who was at fault, says David Snyder, vice president and associate general counsel for the American Insurance Association (AIA).
“Where the damage is may signal who is at fault," he explains. "If the damage is on the outside of your door, most people would conclude the other car hit your car. But if the damage was to the inside of your door, it means you had your door open before the other car hit it. There would be some liability on the person who opened the door."

3. I crashed into my own garage door. Will I need to make a collision claim for my car and a home insurance claim for the garage door?
There is no way to consolidate the two claims, says Snyder. "If you want to collect from your insurance company you have to make two claims.”
On the bright side, you may have to pay the deductible for just one policy if you use the same insurer for both home and auto insurance. For example, MetLife would waive one of the deductibles for its customers under most circumstances, says Ward.

4. I smashed my hand in my car door. Can I make a bodily injury claim on my car insurance?
The answer most likely is "yes," says Snyder. Personal injury protection (PIP) and medical payments (MedPay) coverage pay the medical bills for you and your passengers following a mishap, no matter who is at fault.
In no-fault states such as Pennsylvania and New York, MedPay and PIP are the primary sources of health insurance coverage when you're injured in an auto accident. If you live in a state without no-fault insurance and have MedPay or PIP on your auto policy, you should use it first to pay accident-related medical expenses. Your health insurance company may deny coverage until you exhaust MedPay or PIP benefits.
Think twice before simply using your health insurance to avoid the hassle of a car insurance claim. “A lot of clinics will ask, 'Did this happen in your car?' says Ward."They will forward [the bill] to your auto insurance.”

5. I left my engine running while I ran into a store, but somebody stole my car. Will comprehensive insurance pay my theft claim?
The answer in most cases is "yes," says Ward. Even though it's your own darn fault, "there is coverage for that under your comprehensive theft coverage.” An obvious lack of good judgment normally won't prevent you from collecting, he adds.
You probably will have to pay your deductible, but here is some relief: “If a thief steals your car and damages it, it is covered by comprehensive coverage while it is out of your control," says Ward.

6. I left my emergency brake off and my driverless car rolled down the driveway and across the street, into my neighbor's tree. Will my car insurance pay for the damage to my car and what about the damage to the tree?
Again, it's your own fault, isn't it? But auto insurance companies generally pay under such circumstances, says Snyder. Ward notes that in most cases your policy "will pay for the damages less your deductible.” He also says it would cover damage for the tree under your physical damage liability, up to the limit of the policy.
Your neighbor would have to file a claim for tree damage under his own home insurance policy.

7. I crashed a car while on a test drive. Whose insurance pays?
Lehman says the insurance company representing the dealership would be on the hook for any damages you cause while test-driving a car. Your own insurer would not be obligated to pay. That's because insurance follows the car, not the driver.
If you're on a test drive and someone else hits you, their insurance will have to pay, notes Lehman.

8. My daughter crashed her Little Tikes Cozy Coupe into my car, scratching the door. Can I make a comprehensive claim?
This is one car accident that probably won't be covered by your auto policy. Be prepared to reach into your own pocket or settle up with your child. Unless your daughter carries a liability policy for her toy car, you're probably out of luck, says Lehman. "Can you make a claim?" he asks. "Sure, but the likelihood of damage exceeding your deductible -- if one applies -- is highly unlikely."

NOVA Insurance Group
Chantilly, Virginia
Tel: 703.263.7800
Email: ku@allstate.com

www.south-riding-insurance.com
www.loudoun-insurance.com

The original article can be found at Insure.com:
Self-inflicted car insurance wounds: I crashed into myself!

Read more: http://www.foxbusiness.com/personal-finance/2011/11/03/self-inflicted-car-insurance-wounds-crashed-into-myself/#ixzz1cfQ5Lj5w

Ten Questions for Your Life Insurance Agent

2011-11-01T17:00:00.004-04:00

Ten Questions for Your Life Insurance Agent
By Christina Couch
Published November 01, 2011

If you're feeling intimidated by your life insurance options, you're not the only one. A 2010 study by the National Association of Insurance Commissioners shows less than half of American consumers feel confident about making insurance decisions. Perhaps more frightening is only 2 out of 5 U.S. consumers could answer basic questions about insurance coverage.

Get informed about your policy and the company issuing it by asking your life insurance agent these 10 questions.

Whom am I Buying From?
Before getting into the major questions of how much life insurance you need or whether you want term or permanent insurance, do some homework on the company, says Allen McLellan, associate dean and assistant professor of insurance at The American College in Bryn Mawr, Pa.

"You need to know how long the company has been in business, the size of it (and) its ratings," he says. "You also want to ask the agent, 'What are your credentials for being a life insurance professional?'"

McLellan says consumers can research the financial strength of their life insurance company by checking out their fiscal ratings through organizations such as A.M. Best Co., Standard and Poor's and Weiss Ratings. When it comes to the life insurance agent, McLellan says to look for designations such as Chartered Life Underwriter, Certified Financial Planner and Chartered Financial Consultant.
"These designations take up to 10 semester-long courses to acquire," he says. "Those who come out of those courses are, at least knowledgewise, going to be quite professional."
Consumers will also want to know if their agent sells insurance from one particular insurance company or multiple firms.

How is My Need Determined?
How much life insurance you'll need involves two major factors: how much it will take to pay your debts off, including the mortgage, and how much your dependents will need to maintain the same lifestyle after you're gone. Though all companies factor those two variables in, insurance providers frequently use different formulas for determining your specific insurance need, says Bradley Behrendt, a CFP with Tax & Financial Group based in Newport Beach, Calif.
"(Consumers need to ask) how did the adviser come up with the (appropriate) amount of insurance?" Behrendt says. "Was it a ballpark figure? Was it based on an analysis? If so, how deep was the analysis?"

Understanding how your need is determined is crucial, especially for families with unusual debts, such as high medical bills, that may not be considered in a rudimentary-needs formula. Once policy shoppers are sure their insurance agent is taking all of their current and future fiscal needs into consideration, they can purchase a policy that fits their family.

Does the Policy Provide Living Benefits?
You'll want to ask about the basics of the policy, including how long the policy will last, what your premiums will be, what the policy's rate of return is and how the death benefit works. If you're purchasing permanent insurance, you should also ask about what kinds of benefits the policy provides while you're living, says Kim D. H. Butler, author of "Live Your Life Insurance."

"You're basically looking for four things: control, liquidity, use and equity," she says. Control means the policyholder is clear on who owns the policy, who's funding it, who gets to decide the beneficiaries and whether the policy stays open or closed, says Butler. Liquidity means the policyholder is clear on how much money he or she can take out of the policy and how fast. "You can get the cash value of whole life insurance within seven days," she says.

As for use and equity, Butler says policyholders should thoroughly understand what money taken from their account can be used for and what the rules are on borrowing against it if you need to take a policy loan.

What's Guaranteed?
If purchasing a permanent policy, consumers need to pay careful attention to their life insurance illustration, says McLellan.

"Another question (consumers should) ask is 'What are the guarantees associated with this product?'" he says.
While life insurance illustrations frequently provide several projections on how your policy could pay out down the road, McLellan says the numbers that really count are the "guaranteed" figures, which show how much you'll make regardless of fluctuations in the market or fiscal problems the insurance provider may encounter in years to come.

When Can I Expect Returns?
This won't be a question for term purchasers, but those eyeing permanent policies should be prepared to wait several years before their policy will start generating positive returns.
"Expect that 100% of your first-year premiums will go to issuing the policy," says Behrendt, adding that most of it will be paid to the agent as commission.
He says permanent life insurance policies are designed as long-term savings vehicles and can take anywhere from five to 10 years to generate positive returns. New purchasers who see green in their immediate future could be sorely disappointed.

What if My Health Changes?
Unless you're buying a guaranteed-issue policy or purchasing life insurance through your employer, you'll probably have to endure a medical evaluation. The problem is that over the duration of your policy, your health could change for better or worse.
"If you don't get the highest (health) classification when you apply for the policy, you need to ask if there is the ability to improve on that rating if your health increases," says Behrendt.

Behrendt says people who have had health risks such as a heart attack, DUI or smoking habit in the past can have between 10% and 20% knocked off of their life insurance premium if they undergo new medical underwriting after a certain period of time. Policyholders, especially those with term insurance, will also want to know what happens if their health decreases or if they become un-insurable.

What's Covered if I Become Disabled?
Even if you don't purchase a disability rider or a separate disability insurance policy, some life insurance policies provide some benefits for policyholders who become disabled.
"Usually those benefits are a disability premium waiver," says Adam Sherman, CEO of Firstrust Financial Resources life insurance advisory firm in Philadelphia. "For example, if you have a $5,000 (annual) premium and you were deemed to be disabled, the company would provide that $5,000 for that policy."
Sherman is quick to point out that insurance companies have different definitions for "disabled." While some providers define it as an inability to perform your specific occupation, others define it as an inability to perform any occupation at all. Being clear on what defines disability and whether your life insurance waives premiums in the event of catastrophe can help you find the right policy and determine your need for additional riders.

Will the death Benefit Adjust for Inflation?
"If we're talking about (a death benefit) that's anywhere from 20 to 80 years away, we need to talk about having that death benefit increased (over time)," says Butler.
A $500,000 death benefit may seem enormous today, but 30 years down the road, it will only be worth approximately $200,500 after adjusting for inflation. With inflation increasing approximately 3% each year, time alone can severely erode your life insurance policy even if you never miss a payment. While some policies automatically adjust to keep pace with inflation, some companies sell that feature as an additional rider. Before signing onto a policy, Butler advises shoppers to ask their life insurance agent if the policy automatically factors in inflation and allows them to buy more insurance later on if necessary.

What Happens if I Can't Pay the Premium?
If you run into financial trouble, knowing your options is invaluable. Butler says term policyholders who can't pay their premiums typically have a 60- to 90-day grace period to come up with the money, but permanent policyholders have more options.
"(Permanent policyholders) can take an 'automatic premium loan' and borrow against the cash value of the policy to pay the premiums," she says. "If you're going to borrow against the cash value, you'll want to ask what the loan rate is, and those are usually anywhere between 5 (percent) and 8%."
The added bonus of borrowing against your policy is you don't have to pay it back, but you should understand how borrowing against a cash value policy could affect your future returns and death benefit.

What Happens as I Age?
Your fiscal needs will change as you age. The terms and conditions of your policy might as well. While most term policies will eventually allow you to convert to a permanent policy, Sherman says you may not want to do so.
"Usually you have to convert by age 70," Sherman says. "For people in their later years, it's very, very expensive. For example, if I'm a 45-year-old and I buy a term policy for $1 million, that could cost $1,300 (per year) today. If I wanted to convert that same policy at age 65, the premium could be $15,000 a year."
To save thousands of dollars down the road, ask your life insurance agent about the future of your policy.

NOVA Insurance Group (Tel: 703.263.7800)
Chantilly, Virginia
www.south-riding-insurance.com
www.loudoun-insurance.com

Long-Term-Care Insurance: Most Still Don't Buy In

2011-09-21T16:32:00.006-04:00

Long-Term-Care Insurance: Most Still Don't Buy In
By Andrea Coombes (Wall Street Journal)

A growing number of people are aware they may face steep nursing-home and other long-term-care costs as they age, but few are willing to purchase long-term-care insurance, according to a new survey of California residents.

Consumers are twice as likely now, compared with 17 years ago when the survey was first fielded, to say they know that typical health-insurance plans don't pay for long-term care, according to a Field Poll of 950 adults for the California Partnership for Long-Term Care, a program of the state's Department of Health Care Services that partners with insurers to certify policies that meet specific consumer-protection requirements.

And 52% of consumers surveyed said that more than half of older Americans will need long-term care in their lifetimes -- up from 42% giving that response in the same survey six years ago.

So, more consumers are aware of the potential problem, but some are still underestimating the figures: 70% of older Americans will need some type of long-term care -- which may include help with grocery shopping, bathing, dressing, eating and other tasks -- at some point, according to the U.S. Department of Health and Human Services.

Also, consumers are gaining ground in estimating nursing-home costs. While 64% of respondents to the Field Poll still underestimate the annual cost of nursing-home care, pegging it at less than $70,000, fully 23% said that costs total "$70,000 or more," according to the survey -- an increase from 8% who provided that response in the 2005 survey.

The average annual nursing-home cost in California is more than $91,000, according the California Partnership for Long-Term Care.

Still, despite the growing awareness of long-term-care costs, about 7 million people are covered by individual long-term-care insurance nationwide, according to LIMRA, an insurance-industry research and consulting firm.

That's about 18% of the almost 40 million people over the age of 65 in the U.S., according to 2009 data from the U.S. Census Bureau. A 2004 study by the National Bureau of Economic Research found that 10% of people aged 65 or over have purchased long-term-care insurance policies.

Too costly, and uncertain

The most-often-cited obstacle to purchasing long-term-care insurance? The cost. Fifty-nine percent of respondents said long-term-care policies cost too much, 55% said they haven't thought about it and 32% said their family assets and income will cover the cost.

"People are saying, 'I know I need to do something. I really don't have the money for this,' " said Brenda Bufford, director of the California Partnership for Long-Term Care. "We're saying start planning for it."

Another 29% of survey respondents said they have not bought a policy because insurance companies can't be trusted to cover the costs incurred.

Certainly, fears that an insurance company may go out of business, and worries about premium hikes, keep people from buying policies -- and those fears are justified by past experience.

"There have been a lot of concerns," said Katy Votava, president of Goodcare.com, a consulting firm that works with financial advisers and their clients to help them save money on health-care costs. "Will the coverage be there -- will the company be there for me -- when I need it? About 10 years ago, we had a lot of market consolidation."

Even in the past year or so, Votava said, some companies have exited their long-term-care business or raised rates.

Generally, if a company leaves the business, another company buys those policies, but that may pave the way for premium hikes. To find out more about a particular company, check out your state's insurance-department website, Bufford said.

Also, Votava said, insurers now sell hybrid products -- such as an annuity or life-insurance policy with a long-term-care rider -- that might be more palatable to consumers. If you never need the long-term-care benefits, she said, you still can tap the value of the annuity or life insurance.

As for price being a barrier to many potential buyers, "if you buy long-term-care insurance and need it, it's going to be a bargain," she said, "but if you never use it you're going to feel it was expensive." The policies that Votava said she recommends usually cost about $3,000 to $4,000 a year.
-Andrea Coombes; 415-439-6400; AskNewswires@dowjones.com

For all your Long Term Care, as well as Auto, Property, Business and Life Insurance needs, please call NOVA Insurance Group at tel. 703.263.7800
http://www.allstateagencies.com/ku/Welcome

As Homeowners Dive Into Pool Of Flood Insurance, Caveats Abound

2011-09-20T13:02:00.005-04:00

As Homeowners Dive Into Pool Of Flood Insurance, Caveats Abound
By ANNAMARIA ANDRIOTIS

The recent weeks of tropical storms and other wet weather have pushed a new wave of homeowners into the market for flood insurance. What they are finding, however, are policies better suited to Tampa, Fla., than Teaneck, N.J.

Insurance companies have reported a surge of demand for flood insurance in the wake of storms Irene and Lee, even in landlocked states like Pennsylvania and Vermont, which both suffered flooding in some areas. Chubb Corp. says inquiries about and applications for its flood policies are up about 30% since late August, compared with the same period a year ago. Farmers Insurance Group of Cos. says its sales of federal flood insurance rose as much as 38% from July to August in some Northeastern states, and some independent insurance agents in the Northeast say that since Hurricane Irene in particular, up to 10% of clients have inquired about or applied for flood insurance.

But basic flood policies, most commonly provided by the National Flood Insurance Program and sold through private companies, cover damage starting on a home's first, above-ground floor, with limited coverage for basements. That usually is adequate in the Gulf Coast region, where houses don't tend to have below-ground levels. But it is less so in the rest of the country, where those features are common, says John Prible, vice president for federal government affairs at the Independent Insurance Agents and Brokers of America, an industry group. Federal flood policies will pay to replace specific items in a flooded basement, including hot water heaters, furnaces or other mechanical equipment, but ruined carpeting, furniture and fixtures would be excluded.

For many homeowners in the Northeast, the limits of coverage may not be enough. The federal flood program will cover up to $250,000 to rebuild a home and $100,000 in contents. That may suffice in New Orleans, says Scott Simmonds, an insurance consultant in Saco, Maine, but it falls short in Boston or New York, where materials and labor costs are higher.

To have full coverage, then, homeowners in the Northeast could need at least three different insurance policies, Mr. Prible says: basic home insurance; additional flood insurance; and a third, supplemental flood policy that would cover damage to basements and cellars, and also offer higher limits.

The costs quickly add up. While they vary widely, homeowners insurance premiums averaged about $800 a year in 2010; flood insurance adds another $600 on average. Premiums for supplemental flood coverage vary widely depending on the area of the house, but in states where the risk of floods is deemed low, additional flood coverage could add another $300 to $400 for a $500,000 home with a basement, according to Fireman's Fund Insurance Co., a subsidiary of Allianz SE.

As pricey as the coverage can be, and as rare as storms are, few homeowners hold on to flood insurance for long. Typically, demand spikes after extensive flooding, but homeowners usually let policies lapse within two to four years, according to a recent study by the Wharton Center for Risk Management and Decision Processes.

For questions about Flood, as well as Auto, Home, Business or Life Insurance, Please call NOVA Insurance Group, located in Chantilly, VA at tel. 703.263.7800.

http://www.south-riding-insurance.com
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The top 10 cars that thieves hate the most

2011-09-02T11:07:00.002-04:00

Having seen how car thieves have a special attraction for the Cadillac Escalade, what cars do they hate the most?

By Chris Woodyard, USA TODAY

Interestingly, it's a mix of cars and midsize SUVs, such as the Chevrolet Equinox, the Highway Loss Data Institute reports. It may not be because it isn't cool to be cruising around in an Audi A6 or an Equinox. Rather, it may be because these vehicles have really good anti-theft mechanisms.

It's clearly not because these vehicles are undesirable. Looking over the list, they are all fairly popular, even if some are niche vehicles.

Here's the top 10 cars that thieves reject:

Audi A6 all-wheel-drive, large luxury car
Mercury Mariner (2009-10) small SUV
Chevrolet Equinox (2010) midsize SUV
Volkswagen CC (2009-10), midsize car
Chevrolet Equinox four-wheel-drive (2010) midsize SUV
Lexus RX 350 (2010) midsize luxury SUV
Saturn Vue midsize SUV
Chevrolet Aveo (2009-10) mini station wagon
BMW 5 Series all-wheel-drive large luxury car
Mini Cooper Clubman two-door car

Questions about Car Insurance in VA, MD and DC, please call us at NOVA Insurance Group (Tel: 703.263.7800). We're a full-service, award-winning Allstate Agency, focusing on Auto, Property, Business and Life Insurance.
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Homeowners on East Coast May Have to Pay for Earthquake Damage

2011-08-24T13:03:00.003-04:00

Homeowners on East Coast May Have to Pay for Earthquake Damage

By Alexis Leondis and Elizabeth Ody - Aug 23, 2011 4:50 PM ET

Homeowners won’t be covered by standard property insurance policies if there’s any damage following today’s 5.8 magnitude earthquake centered near Richmond, Virginia.
Earthquake protection is generally excluded from standard homeowners’ insurance policies, and consumers have to purchase coverage either as a separate policy or an endorsement to an existing policy, said Michael Barry, a spokesman at the Insurance Information Institute in New York.

Most people who buy coverage live in quake-prone states, such as California, Washington and Missouri, according to Janece White, a vice president at Warren, New Jersey-based Chubb Corp. (CB), the insurer of commercial property and high-end homes.
“It’s very infrequent,” that residents who live on the East Coast purchase earthquake coverage since during their lifetimes there’s never been a temblor that warranted it, White said.

A magnitude 5.8 earthquake struck at 1:51 p.m. local time about 40 miles northwest of Richmond, Virginia, according to the U.S. Geological Survey. Buildings in New York City and Washington shook after the quake and it was also felt in areas including Boston, Connecticut, New Jersey and Toronto.

Consumers who have so-called floaters to insure valuables such as fine art or all risk contents policies generally will be reimbursed for quake damage to such possessions, White said. If homeowners want their houses protected, they must buy separate policies, she said.

Policy Cost Varies
The cost of earthquake policies varies based on the location and the value of the home. Deductibles for earthquake policies vary by state and range from 5 percent to 25 percent of the overall value of the property, White said.
A policy from Chubb for earthquake insurance in New York is 50 cents per $1,000 of homeowners coverage, or about $250 a year on a home valued at $500,000.

“A lot of people do purchase event protection after an event occurs because they realize, ‘Hey, that could happen to me,’” said Dick Luedke, a spokesman for Bloomington, Illinois- based State Farm Mutual Automobile Insurance Co.
Homeowners generally can’t purchase earthquake coverage for as many as 60 days after an earthquake because of the potential for aftershocks, Luedke said.
‘Doesn’t Make Sense’

“For most of us, having earthquake insurance doesn’t make sense,” said Sheryl Garrett, founder of Shawnee Mission, Kansas-based Garrett Planning Network Inc., a network of fee- only financial planners. That’s because residents of areas where earthquakes rarely occur generally don’t need the coverage, and policies in parts of the country with frequent earthquakes are more expensive to compensate for the increased risk, she said.

Homeowners considering purchasing earthquake coverage should check with the insurer about how it defines an earthquake and whether their policy covers related losses, such as water or fire damage triggered by an event, Garrett said. Feel free to call us here at NOVA Insurance Group (in Chantilly, VA) at Tel: 703.263.7800 with all your questions and concerns about your insurance policies.
http://www.allstateagencies.com/ku/Welcome

To contact the reporter on this story: Alexis Leondis in New York aleondis@bloomberg.net
To contact the editor responsible for this story: Rick Levinson at rlevinson2@bloomberg.net.

Personal Umbrella Insurance

2011-07-15T17:18:00.005-04:00

Don’t Let Clients Count on Luck When It Comes to Personal Umbrella Purchases
By Bill Gatewood | June 20, 2011

By the time you finish reading this sentence, two new law suits will be filed in U.S. courts.

We live in an extremely litigious society. There is no other way to put it. The United States has more lawyers per capita than any other country. As our schools produce more lawyers, these lawyers produce more lawsuits. In 2011, it is estimated that more than 15 million lawsuits will be filed in this country. That’s one lawsuit every two seconds or one lawsuit for every 12 adult Americans.

The origins of the lawsuits will differ, but many will result from incidents and accidents that involve your clients. These lawsuits will result in over $40 billion in awards. Ask yourself: Have you done your best to prepare and protect your clients and their personal assets?

As insurance professionals, our role is to educate our clients on risk and the financial implications it can have on them. One area where we fall very short is presenting personal umbrella and excess liability coverage to all our clients. A personal umbrella provides an additional layer of liability above and beyond those offered by the underlying auto, home, boat, and recreational vehicle policies.

My experience has shown me one thing about these products – umbrellas are sold, not bought. Most people will not choose to buy a personal umbrella. They assume nothing bad will happen to them and if it does, their auto and home limits will be sufficient. In other words, they feel lucky. As their risk manager, luck cannot be part of the plan.

The truth is bad things happen to good risks. Good drivers are involved in auto accidents. Accidents occur in responsible homes. Life happens. Here’s a small sampling of what will happen this year:

There will be more than six million car accidents, causing over three million injuries. Two million of these injuries will be permanent. Teenage drivers, who account for less than 5 percent of all drivers, will be involved in nearly 10 percent of all fatal car accidents. Boating accidents will injure more than 3,000 people and claim more than 700 lives. Close to five million people will be bitten by dogs. Most will be children and over half will be bitten in the face. Dog bite losses will exceed $1 billion and homeowners insurance will pay just $300 million.
Nearly 100,000 people will be injured on trampolines. Again, most are children under the age of 15.

Just these few examples add up to nearly 16 million incidents this year. When you think of it in those terms, it is a wonder that we only have 15 million lawsuits. With so much at risk, why don’t more people buy personal umbrella coverage? Hint: umbrellas are sold, not bought.

Isn’t It Ironic?

There is an ironic trend taking place in the personal umbrella market these days. As the economic downturn continues to impact our country, more and more people are viewing personal umbrellas as an unnecessary or luxury expense. Policyholder requests to cancel umbrellas or reduce limits are increasing. The tragedy in this thinking is threefold.

First, personal umbrellas are inexpensive. Dollar for dollar, it’s one of the cheapest insurance products out there.

Second, when the economy drops, lawsuits and litigation go up. Likewise, a poor economy means more uninsured and underinsured drivers on the road. An estimated 20 percent of the drivers on the road today are uninsured. A much larger number have reduced their auto liability limits to the state minimum, making them grossly under-insured in the event of a large loss. So, at a time when the need for protection is the greatest, consumers are voluntarily choosing to make themselves more vulnerable. Tip: Umbrellas are not bought, they must be sold.

Got UM?

Let’s focus on the most responsible and luckiest client in your agency. He has gotten rid of the swimming pool, boat, trampoline, snowmobile, and family pet. She never drives over the speed limit, always wears her seat belt, never talks on her cell phone or texts while driving, and would never drive within eight hours of taking cold medicine. Despite all these precautions, there is still one risk insureds cannot avoid – everyone with whom they come in contact.

We know there are a great number of drivers who are improperly insured. If your client or family member is seriously injured in a car accident involving one of these drivers, who pays for the medical bills and long-term care? Perhaps your client will win a settlement in one of the 15 million lawsuits making their way through our court system, but, as the insurance agent, is this the answer you want to give? At the lowest point in your client’s life, dealing with doctors, hospitals, and rehab centers, he/she now has to find a lawyer to file a lawsuit against an uninsured driver.

A plaintiff attorney once told me that a personal umbrella without uninsured and underinsured motorist coverage is not worth the paper it’s printed on. Make sure your clients understand that an umbrella is not only there to make sure the other person is taken care of after an accident, but to also ensure the adequate care of themselves and their loved ones. Last time: Sold, not bought.

No Excuses

Finding umbrella coverage for the hard to place risk is not as hard as it once was. You can easily find mono-line umbrella coverage for clients with multiple underlying carriers. Umbrella coverage is available for drivers with serious offenses such as driving under the influence and others, teenage drivers, recreational vehicles, and other unusual exposures. Personal umbrella coverage can be found on an admitted and nonadmitted basis. If you are having trouble finding coverage for your client, call your wholesale partner to see what options they can provide. It’s a small percentage of people who cannot obtain some umbrella or excess liability coverage.

In conclusion, the question isn’t whether your clients should buy a personal umbrella, but rather, will you sell them one? and we, here at NOVA Insurance Group (An Allstate Agency, located in Chantilly, VA) can easily handle that request to write your Personal Umbrella, as well as your Auto + Home Insurance policies. Feel free to call us at 703.263.7800 or email: ku@allstate.com

Above article written by: Bill Gatewood
Gatewood is director, Personal Lines Product and Sales for Burns & Wilcox. Phone: 248-539-6408. E-mail: wrgatewood@burns-wilcox.com.

Baby, you can drive my car … for a few bucks.

2011-06-22T16:54:00.003-04:00

Baby, you can drive my car … for a few bucks.
By Roger Yu, USA TODAY

Seeing a business opportunity in millions of cars that sit idle at office parking lots or on weekends, several start-up companies have introduced "peer-to-peer" car-sharing services aimed at matching urban dwellers without cars and car owners looking to make some extra cash.

There are about 250 million personal cars in the USA, and they're idle an average of 22 hours a day, according to Getaround, the largest of the start-ups with about 1,500 cars, mostly in San Francisco and parts of San Diego. Its competitors include Spride Share, RelayRides and JustShareIt.

Spride operates only in the San Francisco area. RelayRides has operations in San Francisco and Cambridge, Mass. JustShareIt, which hasn't launched publicly and allows only invited users for now, has cars and motorcycles in San Francisco and Los Angeles. They hope to expand if more states help clear some insurance problems that can result from owners sharing their cars.

Renters pay typically $5 to $15 an hour for a car in their neighbor's garage or office parking lot. A Subaru Impreza hatchback sedan at Getaround costs $6 an hour, while an electric Tesla Roadster sports car comes with a $50-an-hour price tag. Renters agree to drive with reasonable care, pay any parking tickets and refrain from smoking in the car. An insurance policy provided by the rental company covers any accident, typically up to $1 million in liability (and $500 deductible for borrowers).

Car owners agree to have a remote entry system installed in their cars and can earn up to 40% to 60% of the borrower's fee, or about $200 to $300 a month if they rent an hour a day. Most transactions are conducted online. Customers use their smartphone or key card to unlock the car. A built-in GPS tracks mileage and location. "We basically think that their next car can be just a cellphone (away)," says Sunil Paul, CEO of Spride Share.

There are insurance obstacles in many states that the businesses face before they can take off. "There are all kinds of related issues regarding exposure to liability for both parties," says Neil Abrams, a rental car industry consultant. "If I allow a drunk driver to drive my car and he runs into a school bus, whose liability is that?"
In most states, insurers can cancel the policy of a customer who uses their cars for commercial purposes. But the car-share companies have been emboldened by a new law in California and one pending in Oregon that prohibit insurers from canceling the policies of drivers who share their cars.

The laws ensure that owners are not liable for damage when their car is used for personal vehicle sharing. "Owners' insurance carriers are not liable for anything that happens during the sharing period. Consequently, it should be no impact to owners," says Sam Zaid, CEO of Getaround.

Other logistical issues are being worked out as firms test their services: borrowers who return a car late, workable remote-entry systems, cars returned dirty and borrowers who smoke. "Owners can set the rules. They can reject (any borrowers). You have total control of your car. We didn't want to compromise that," Zaid says.
Self-enforcement takes place in the user community as borrowers and owners are ranked and are subject to fines for rule violations. "We've found that borrowers realize it's their neighbors' cars. They treat them with more respect," says Jonah Bliss of RelayRides.

For all your Auto Insurance needs in Virginia, Maryland and DC, please call our Agency, NOVA Insurance Group (703.263.7800) during business hours.

Full Coverage; do I need it?

2011-05-25T16:49:00.002-04:00

When To Drop “Full Coverage” Insurance

04/18/2009 by Todd Clay | Last updated: 10/23/2009

Four Questions To Ask Before Dropping Comprehensive And Collision On Your Vehicle

When To Drop "Full Coverage" On The Old Beater
Knowing when to drop full coverage auto insurance can be tricky. As your car ages, keeping comprehensive and collision coverage may not make sense any more. At some point, you could be paying more for insurance than what your car’s worth. Since you’re aiming to save money, it’s worth exploring when to drop full coverage. You may be wasting money by keeping it.

“Full Coverage” Is Physical Damage Coverage
Before knowing whether to stop carrying it, it’s good to understand what “full coverage” is. Full-coverage insurance is another way of saying comprehensive and collision – with liability coverage. Comprehensive coverage (comp) covers the physical damage of your car when not involved in a collision. Shattered windshields, vandalism, even hitting an animal could all be damage covered by comprehensive insurance.

Collision coverage is different. If you are involved in an at-fault accident, your vehicle could be damaged. Collision covers the physical damage to your own car if you hit another car, a telephone pole, or another object and the accident is your fault. Both collision and comprehensive make up “full coverage”.

There are several considerations to make before dropping full coverage. Make sure you review these questions before contacting your agent.

Question #1: What Do You Owe On The Car?
If you owe money on your car, then your finance company will probably require you to keep comp and collision. If you lease your car it’s usually the same deal. Before you drop full coverage when you owe or lease, talk to your bank first. Otherwise, keep both coverages until you fulfill your financial obligation.

Question #2: What’s Your Replacement Cost?
Comprehensive and collision covers the physical damage to your vehicle. If your vehicle is not worth much, it may be time to consider dropping full coverage. For instance, if it costs $400 a year for comp and collision and your vehicle is only worth $1600, think about dropping it. In four years time ($400 x 4 = $1600) you could have paid for the vehicle with the comp and collision premium – assuming you did not make a claim. Still, consider your driving history and cash in the bank before you call your agent.

Question #3: Should You Drop Collision or Raise Deductibles?
Collision is more expensive than comprehensive. On my policy for this period, I’m paying $23.70 for comp, but I’m paying $53.60 for collision. Granted, I carry a $250 deductible on comp and a $1000 deductible on collision, but that’s still a significant difference. If you’re a safe driver, you may consider dropping collision on an older vehicle.

Instead of dropping full coverage, you could also raise your deductibles. By carrying a higher deductible, you carry more of the risk associated with driving. That’s why it’s cheaper to have a $1000 deductible versus $250. If you want to save money, but don’t feel safe dropping comp and collision completely, just raise your deductibles.

Question #4: What About Full-Coverage Peace of Mind?
You may be looking to save money. But if you get nervous driving down the highway without comp and collision, it’s probably not a good idea to cancel the coverage. An anxious driver is a bad driver. Even if you’re not normally edgy, dropping certain coverages can be unnerving. Before dropping full coverage, just make sure you’re comfortable with the new arrangements. You will save money – but you may lose sleep. Weigh your options and make an informed decision.

One final thought: you could also just cancel collision. Since comprehensive is fairly inexpensive, you might want to leave it on your policy – even if it’s an older vehicle. Comprehensive covers your car it’s stolen, a tree falls on it, and more. You may not have coverage for physical damage in an at-fault accident, but it would cover other unforeseen incidents.

Could texting while driving laws affect auto insurance rates?

2011-05-04T14:32:00.002-04:00

Could texting while driving laws affect auto insurance rates?
By Max Thompson

Texting while driving is a hot topic in many areas across the country as laws continue to surface in an attempt to outlaw the act and make roads safer for drivers and passengers alike.

Much like auto insurance rates vary widely by state, so too do laws regarding the act of texting while driving.

Thirty states currently have laws in place that ban all drivers from texting while driving. In addition, nine states currently have a partial ban in place – prohibiting novice drivers from texting while driving. A total of eleven states have no laws at all in place – not even for novice drivers – prohibiting texting while driving. See the detailed map for more details.

That means a total of 20 states currently have no ban or a partial ban in place. That seems likely to change in the near future, though. State Legislature in Maine, Arizona and Oklahoma – among others – are currently eyeing legislation aimed at texting while driving.

This type of legislation has obvious effects on drivers, but how could this legislation affect the consumer side of things, or more specifically auto insurance rates?

Typically, auto insurance rates can rise if a driver acquires one or more moving violations. Stop sign tickets and speeding tickets are both examples of moving violations. Non-moving violations, such as a ticket for expired registration on a vehicle, on the other hand, typically have no affect on auto insurance rates.

So, whether or not receiving a ticket for violating a texting-while-driving ban could potentially result in higher auto insurance rates really depends on two factors. First, is the violation written in law in that state as a moving violation or a non-moving violation? Also, what are your insurance companies specific policies regarding both moving and non-moving violations?

In the end, the best way to avoid costly driving-while-texting tickets – along with potentially higher auto insurance rates – and, most importantly, accidents that could cause injury, appears to be putting the phone down while driving and waiting until parked to send that next text message.

Please call our agency, NOVA Insurance Group (Tel: 703.263.7800) for all your auto insurance quotes in VA, MD and DC.

The Top Cars for Teens

2011-04-14T14:01:00.002-04:00

For parents and teens, choosing a car for a first-time driver can be an anxiety-filled process. Teens want a sporty car they won't be embarrassed to drive to school. Parents want safety, safety, safety.

Cross a new car off the list because the chances of a new driver putting a dent in it, or worse, are roughly 1 in 4.

Late-model used cars offer a just-right combination of modest power and performance, top-notch crash scores, advanced safety features and decent reliability scores that safety experts say parents should seek in any car intended for a new driver.

To come up with the best rides for a teen driver, I crunched the numbers from several key sources of data and safety rankings: safety and crash-test information from the websites of the Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration, and quality and reliability scores from Consumer Reports, the nonprofit product-analysis publisher. Among the vehicles best suited for teen drivers: the Honda Accord (24 points,) the Ford Fusion (22 points) and the Toyota Camry (22 points).

Recommended Cars for Teens

You won't see pickups, sports cars, or tiny subcompacts on the list. Pickups are too easy to roll. Sports cars tempt young drivers to drive too fast. Subcompacts don't put enough metal between your kid and obstacles they may hit, even though today's small cars are dramatically better engineered than the tiny hatchbacks baby boomers drove in the '70s and '80s.

For the first time, this year, the Insurance Institute says it can recommend certain sport utility vehicles as safe choices for young drivers. In the past, the institute's experts said the SUVs' propensity to roll over made them a risky option.

Newer SUVs and crossovers—wagons that ride on the chassis of cars—that are equipped with electronic stability control now have fatality rates as low or lower than most classes of cars, according to a new IIHS analysis of federal crash data.

"In the past, because [SUVs] are a bit top heavy, they could be twitchy in handling and it was easy to get out of control and roll them over," says the institute's president, Adrian Lund. The IIHS data now shows SUVs with stability control have 70% fewer single-vehicle rollover crashes than those without the technology, Mr. Lund says. SUVs also stand higher off the ground, he says, so more of the force hits the frame below the driver's seat in a side-on crash.

The Insurance Institute's website has vehicle ratings based on its crash tests. You can search by vehicle class. I looked for models that have "good" ratings for front and side impact tests. Then I turned to Consumer Reports and looked up reliability ratings for those cars. If one of my first picks had a below average reliability rating from Consumer Reports, it was out.

Finally, I threw in points for stars earned on the federal government's crash tests. The National Highway Traffic Safety Administration hands out up to 20 stars for a car's ability to protect the driver and front passenger in front and side-impact collisions.

Among the midsize cars that scored well are the Accord, the Fusion and the Camry. Your kid may grouse that these are three of the blandest cars on the road, but they are reliable, four-cylinder cars that aren't too big or too small, and are easily serviced. All these cars, at three or four years old, will cost between $15,000 and $19,000, depending on mileage, condition and model year. With Toyotas, be sure to take the Vehicle Identification Number to a dealer to check that all the recalls Toyota ordered were performed.

An older, second-hand luxury car is a good way to give a teen a vehicle with a full complement of safety technology. The trick is finding one that isn't too powerful. Among those that got through the filter: the sedate Lexus ES, an Audi A4 and a 2004-2008 Acura TL.

The Acura TL gets 24 points in my scoring system mainly because it has a top rating for reliability from Consumer Reports. A caveat with this car: The six-cylinder engine is rated at 258 horsepower—too much for a new driver. That's why four-cylinder versions of the Camry, Accord, Fusion and the Chevy Malibu are so appealing. Among those, the Accord scores highest because of superior reliability ratings and strong NHTSA crash-test scores.

Some of the crossover sport utilities that did well are the Acura MDX, Honda Pilot, Subaru Forester, and newer Honda CR-V or Toyota RAV 4 models with stability control.

Some vehicles didn't make my list because they aren't rated in one or more of the three rankings I used. The 2008-2010 BMW X3 crossover, for example, has good scores from the Insurance Institute, and a better than average reliability rating from Consumer Reports. But the NHTSA hasn't posted crash-test results. Odds are it would do well: Most BMW models get 19 out of 20 stars on the NHTSA front and side-impact crash-test ratings.

It's tempting to buy a teen a very cheap, older car or a small pickup. But old cars often don't have safety technology such as side air bags, or anti-lock brakes, that can greatly improve the odds of avoiding or surviving a crash. Pickups have rollover death rates that are more than twice as high as those for cars, according to federal data.

Teens may wind up driving family haulers like SUVs because it's the vehicle their parents have handy to lend. Keep in mind you don't want teens hauling lots of friends around or they'll be distracted and get in trouble. Some states now restrict how many passengers a teen driver may carry in the first year or two on the road.

David Champion, senior director of Consumer Reports' auto-testing division, says he would still steer young drivers away from large SUVs. "I'm not sure all-wheel drive necessarily is a good thing," he says.

In slick conditions, all-wheel drive can get a vehicle going faster than an inexperienced driver can handle, and when the kid hits the brakes, the vehicle will skid.

Write to Joseph B. White at joseph.white@wsj.com, reference this article.
For all your auto insurance needs in VA, MD and DC, please call NOVA Insurance Group at tel 703.263.7800.

New Study Pinpoints What Happens Right Before Teens Crash

2011-04-11T17:21:00.001-04:00

New Study Pinpoints What Happens Right Before Teens Crash

APRIL 11, 2011

PHILADELPHIA, April 11, 2011 /PRNewswire-USNewswire/ -- A recent study by The Children's Hospital of Philadelphia (CHOP) and State Farm Insurance Companies® hones in on the most common errors teen drivers make that lead to a serious crash. Teen drivers are involved in fatal crashes at four times the rate of adults. The findings were published in the journal Accident Analysis and Prevention.

Researchers analyzed a nationally-representative federal database of more than 800 crashes involving teen drivers and identified a few common "critical errors" that are often one of the last in a chain of events leading up to a crash. Seventy-five percent of these crashes were due a critical teen driver error, with three common errors accounting for nearly half of all serious crashes. Among crashes with a teen driver error:

•Twenty-one percent occurred due to lack of scanning that is needed to detect and respond to hazards.

•Twenty-one percent occurred due to going too fast for road conditions, (for example, driving too fast to respond to others, or to successfully navigate a curve).

•Twenty percent occurred due to being distracted by something inside or outside the vehicle.

The researchers note that environmental conditions, such as poor weather, vehicle malfunction, aggressive driving, or physical impairments such as drowsy driving were not primary factors in most crashes.

"This study helps dispel the myth that most teen crashes are due to aggressive driving or thrill-seeking," said Allison Curry, Ph.D., lead author and a researcher at CHOP's Center for Injury Research and Prevention(CIRP). "Promoting safe driving skills is as important as preventing problem behaviors."

By getting very specific about the types of teen driver errors that are most likely to precede a crash, this study makes it possible to target policies, programs, driver education and other strategies to reduce those critical errors and prevent crashes from happening.

"Laws and policies that address distractions by limiting the number of peer passengers and prohibiting cell phone use among novice drivers will help reduce crash rates, but will only address part of the problem," says study co-author Dennis Durbin, MD, MSCE, who co-directs CIRP. "Many crashes will still occur due to the inability of teen drivers to detect and respond to a hazard in time. Formal teen driver training and parent-teen practice drives should focus on building scanning and hazard awareness skills."

Scanning involves observing the surroundings far ahead of the vehicle and side-to-side, not just immediately in front of the hood. It is a higher-level skill that experienced drivers develop over time. The study authors note that developing effective ways to teach this skill sooner in the learning-to-drive process could reduce teen crash risk. Pilot tests of this type of training have shown promise in increasing hazard detection and response skills among novice drivers.

"This research gets us one step closer to understanding why teens crash and what we can do to help prevent future crashes," says Cindy Garretson, Director of Auto Technology Research at State Farm. "Strong graduated driver licensing laws, along with educational programs that are focused on common teen driver errors, will help keep our roads safer for everyone."

For more information about the study, visit www.TeenDriverSource.org.

For all your insurance needs in VA, Md and DC, please contact NOVA Insurance Group at Tel. 703-263-7800.

Know The Four Steps To Keep Safe If Your Car Breaks Down

2011-04-07T17:11:00.003-04:00

Know The Four Steps To Keep Safe If Your Car Breaks Down

Thursday, April 7, 2011

BRIDGEWATER–April is National Car Care Month and Allstate New Jersey Insurance Company offers advice if your car breaks down or you’re involved in an accident.

“If you are ever in an accident or your vehicle breaks down, remember your safety is your priority,” said Danny Jovic, Allstate New Jersey Insurance Company spokesperson.

The Insurance Information Institute recommends the following precautions when your car breaks down or you experience an accident:

Never get out of the vehicle to make a repair or examine the damage on a busy highway. Get the vehicle to a safe place before getting out. If you have been involved in an accident, motion the other driver to pull up to a safe spot ahead.

If you cannot drive the vehicle, it may be safer to stay in the vehicle and wait for help or use a cell phone to summon help. Under most circumstances standing outside the vehicle in the flow of traffic is a bad idea.

Carry flares or triangles to use to mark your location once you get to the side of the road. Marking your vehicle’s location to give other drivers advance warning can be critical. Remember to put on your hazard lights!

In the case of a blowout or a flat tire, move the vehicle to a safer place before attempting a repair—even if it means destroying the wheel getting there. The cost of a tire, rim or wheel is minor compared to endangering your safety.

Jovic says, “National Car Care Month is a good time to make sure your auto insurance policy is up to date with the most current and best features.”

Call NOVA Insurance Group (Chantilly / South Riding, VA) at tel: 703.263.7800 for all your Auto, property, Life and Business Insurance needs.

Renter's Insurance

2011-03-25T14:24:00.003-04:00

A majority of renters might be overestimating just how much their landlord is responsible for — when it comes to insurance.
By Jennifer S. Altman, for USA TODAY

Only 43% of renters in 2006 had insurance, compared with 96% of homeowners, according to a 2006 poll by the Insurance Research Council. Most apartment dwellers aren’t being intentionally irresponsible on this front but simply don’t know that they need it, says Jeanne Salvatore, senior vice president of public affairs at the organization.

“Tip No. 1 for a renter is simply to get the insurance,” says Salvatore.

A few popular misconceptions are the culprits behind renters forgoing coverage for the belongings in their home, industry experts say.
“People say, ‘I don’t think I have a lot of stuff. I don’t want to pay money to insure it.’ They don’t think it’s very valuable,” says Amy Danise, senior managing editor of Insure.com.

But even the sparsest of apartments could have at least $1,000 worth of stuff after things such as a bed, computer and clothing items. “It would really be a financial disaster to renters to lose all of your things in something like a fire and not have insurance for it. That kind of financial blow can affect you for the rest of your life,” she says.

Many renters also wrongfully assume they fall under the protection of their landlord’s insurance, Salvatore says. Landlord policies would take care of the actual building and common areas in the case of a disaster, but not the belongings of the tenants.

Unlike homeowners, renters policies don’t come with an automatic percentage for covering possessions, leaving the tenants the choice of determining the appropriate amount of coverage. Renters should photograph belongings and tally up their value to make sure the policy would take care of replacing everything they own.

Beyond the loss of personal possessions, a renter could face litigation if a guest gets hurt in the apartment and the renter is at fault. Renters insurance policies offer liability coverage in much the same way that homeowners policies do, and even cover medical costs.

“If you have a party, and somebody trips on your rug and has to go to the hospital and get an X-ray, they can file a claim and don’t have to sue you,” Salvatore says.
The immediate survival expenses can quickly add up if a fire or other mishap displaces a renter. A renters insurance policy will cover additional living expenses, such as essentials you need to buy and other living expenses that surpass your typical rental costs, Salvatore says.

Renters insurance can cover a lot, but it doesn’t actually cost much. Average costs for the coverage ran about $176 in 2008. “That’s probably a fancy coffee drink a week,” says Salvatore. So forgo the Starbucks and put the money into one of these policies, which can typically be purchased from the same provider of your auto coverage. “It’s a small amount to pay for peace of mind,” says 61-year-old Suzette Eaddy of Corona, N.Y., who says she’s had the coverage for many years — and hasn’t had to use it yet, luckily.

For all your Renter's Insurance (as well as Auto, Property, Life and Business Insurance) needs in Virginia, Maryland and DC, please call NOVA Insurance Group (tel: 703.263.7800)

Chantilly and South Riding's Premiere Local Insurance Agency!

I.I.I. Dispels Top Eight Auto Insurance Myths to Help Consumers Save Money

2011-02-24T10:46:00.004-05:00

When purchasing car insurance, you probably already have a good idea about the factors that affect your car insurance premium rates and coverage. But how do you differentiate between truth and fiction?

The Insurance Information Institute (I.I.I.). dispels common myths about auto insurance and shows you how you can save money:

Myth 1. Color determines price of auto insurance.
It doesn't matter if your car is red, green or purple. What does matter is the type of car you select. Before you buy a new or used car, check into insurance costs. Auto insurance premiums are based on make, model, body type, engine size, the age of the vehicle, age of the driver, driving record and credit history. They are also based, in part, on the car's sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices.
"For years there has been this notion that color plays a significant part in calculating insurance premium costs, many people believing that red cars cost more to insure because they're linked to aggressive driving or speeding," said Loretta Worters, vice president with the I.I.I. "The fact is, insurers have no interest in the color of a car, but they are interested in knowing if you have had any previous car accidents, the number of miles you drive annually and where you live," she explained.

Myth 2. It costs more to insure your car when you get older.
Many drivers over 55 years of age can qualify for a reduction in auto insurance rates, typically for three years, if they have successfully completed an accident prevention course. Insurance companies will usually provide up to a 10 percent discount on car insurance, but check with your provider before you sign on. Mature driving courses are available through local and state agencies as well as through the AAA and AARP. You can also check with your insurance agent to find out which defensive driving courses are approved by your insurer. If you are retired or are not employed full time, you may also be eligible for a discount of up to 5 percent off your car insurance. Age requirements for this type of discount vary by state and insurance carrier.

Myth 3. Your credit has no effect on your insurance rate.
Your credit-based insurance score does matter. An insurance score is a measure of how well you manage your financial affairs, not your financial assets. Many insurance companies take your insurance score into consideration when you want to purchase, change or renew your auto insurance coverage. Because the majority of people have good credit, and insurance scores are derived from a person's credit history, most people pay less for insurance when insurance scores are entered into the pricing equation.

Myth 4. Your insurance will cover you if your car is stolen, vandalized or damaged by falling limbs, hail, flood or fire.
Comprehensive and collision coverage are optional coverages. Lenders frequently require drivers to buy comprehensive and collision coverage as a condition of a car loan agreement. Those driving older cars sometimes drop these coverages as a way of saving money. If a car is worth less than $1,000 or less than 10 times the insurance premium, purchasing the optional coverages may not be cost effective. But bear in mind, you need to purchase both collision and comprehensive coverage in order to fully protect your vehicle from all types of damage.

Myth 5. You only need the minimum amount of auto liability insurance required by law.
Almost every state requires you to buy a minimum amount of auto liability coverage. Chances are that you will need more liability insurance than the state requires because accidents often cost more than the minimum limits. In today's litigious society, buying only the minimum amount of liability means you are likely to pay more out-of-pocket for losses incurred after an accident—and those costs may be steep. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

Myth 6. If another person is driving your car, his or her auto insurance will cover them if they get in an accident.
In most states, the auto insurance policy covering the vehicle is considered the primary insurance, which means that the auto insurance company for the vehicle must pay for damages caused by an accident. Policies and laws differ by state, and you should become familiar with these differences when allowing another person to drive your car.

Myth 7. Soldiers pay more for insurance than civilians.
No matter what branch of the military you are in, you qualify for a discount on auto insurance. In some situations you might be able to have your commanding officer make a phone call on your behalf, but for most auto insurance companies, you will need to supply documentation that lists your name, rank and the time that you will be enlisted in the service. This allows insurance companies to determine how long you will be eligible to receive a military discount. Many auto insurance companies provide discounts for former members of the military and their families as well.

Myth 8. Personal auto insurance covers both personal and business use of your car.
If you're self-employed and use your vehicle for business purposes, personal auto insurance may not protect you. While auto insurance geared for businesses can be more costly than a personal policy, one of the best ways to keep your auto rates down is by having a good driving record. If there are others using your car they need to have good driving records too. Check the records of your employee drivers at least twice a year to ensure they maintain a clean driving record.

FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org
or to get competitive car insurance quotes, please call NOVA Insurance Group, Chantilly / South Riding, VA
703.263.7800 or email: ku@allstate.com

Rental Car Insurance

2011-02-15T15:40:00.002-05:00

Do you need rental car insurance?
By Tara Baukus Mello • Bankrate.com

Many people think they have adequate insurance coverage when driving a rental car, either through their personal car insurance policy or via extended coverage on a credit card. In many cases, that's not true.

Without adequate coverage, you could be held responsible for all or some of the expenses associated with an accident -- even if the accident is deemed not your fault or is the result of a defect associated with the car. And the possibility of driving an unrepaired rental car that's been recalled is substantial. A recent report by the National Highway Traffic Safety Administration said that 30 percent of recalled cars in the U.S. aren't repaired, since there is no law requiring recalled cars to be repaired.

Determining if you have adequate rental car insurance coverage is not as simple as confirming you have rental car coverage on your personal car insurance policy. This coverage can vary widely by state and insurer. For example, drivers who have some rental car coverage on their personal car insurance policy may find that it only covers rentals when your car is in the shop -- but not if you rent a car for travel. Other policies may not provide enough coverage due to policy limits. For instance, in the event of a total loss you may be limited to the value of your personal car, which may not be enough if the car you are renting is worth more.

Many credit card companies offer the "perk" of added rental car insurance when the cars are rented using that specific credit card. However, the most common perk is the reimbursement of your deductible, which is usually only reimbursed after your insurance company settles the claim.

If your credit card company provides rental car coverage beyond reimbursing the deductible, make sure you read the fine print carefully. Some cards require you to pay the bills first and will reimburse you later. Some limit or don't cover cars that are rented for an extended period of time, and some credit cards won't cover certain types of cars that are rented.

Even if you do have adequate coverage, you will still be responsible for your deductible, if applicable, and your coverage will be limited to the coverage and amounts you have purchased. If this coverage is not enough, you will be held liable for the remainder by the rental car company and potentially by any injured parties.

If you learn that you are not adequately covered when renting a car, you can purchase additional coverage from the rental car company. Most rental car companies offer a wide variety of coverage, ranging from those to cover the deductible on your personal auto insurance policy to extensive coverage that would protect you, your passengers, the rental car, your belongings and the other people and cars involved. Ask about these optional products and be sure to read all the documentation to understand the coverage you are purchasing before you sign the rental agreement.

For all your car insurance needs, please call NOVA Insurance Group in Chantilly, (South Riding), VA at tel: 703.263.7800.
http://agent.allstate.com/ku/Welcome

Red Light Cameras!

2011-02-02T17:34:00.004-05:00

Red-light traffic cameras are reducing the number of fatal crashes in some cities, according to a new study.

The report by the Insurance Institute for Highway Safety concluded that from 2004 to 2008 red-light cameras saved 159 lives in 14 of the biggest U.S. cities. If cameras were installed in all large cities during that period, a total of 815 deaths would have been prevented, the study says. "The cities that have the courage to use red-light cameras despite the political backlash are saving lives," said Adrian Lund, president of the Institute for Highway Safety. The study, which was released this week, looked at 99 cities with populations over 200,000 and concentrated on two four-year time periods, 2004-08 and 1992-96. Researchers compared collision rates in cities with red-light cameras to those without.

Red-light cameras have stirred controversy with some officials claiming the technology is just a source to generate revenue while others argue cameras do not reduce crashes. The National Motorists Association has been vocal in its opposition to red-light cameras. On its website, a spokesperson for the association said, "Intersection accidents are just that, accidents. Motorists do not casually drive through red lights. More likely, they do not see a given traffic light because they are distracted, impaired, or unfamiliar with their surroundings ... Putting cameras on poles and taking pictures will not stop these kinds of accidents."

For some law-enforcement officials, red-light cameras are essential for traffic enforcement. "The red-light cameras are tools that help us enforce traffic laws because we have a limited number of resources and a large volume of traffic, especially during peak hours," Santa Ana police Cpl. Anthony Bertagna said. Santa Ana has 20 red-light cameras at 15 intersections. A 24 percent drop in the fatal crash rate occurred in signalized intersections after red-light camera devices were installed, the report said. The rate of fatal red-light violation crashes dropped 44 percent.

"The number of accidents in intersections that have cameras has reduced at a higher rate than the intersections that don't have cameras," Bertagna said. But, at the same time, in Anaheim, the fatal crash rate at intersections with signals dropped by 29 percent despite not having red-light cameras.

The biggest drop in the rate of fatal red-light violation crashes came in Chandler, Ariz., where the decline was 79 percent, the report says. Steve Finnegan, government affairs manager for the Automobile Club of Southern California, said traffic-law enforcement needs to be done in a way that focuses on safety: "Some of the automated enforcement programs are being implemented in ways that are designed for revenue generation instead of safety." If red-light cameras are implemented properly, then they can improve safety, Finnegan said.

Contact the writer: amolina@ocregister.com or 714-704-3795.
For all your auto insurance needs, Please call NOVA Insurance Group, located in Chantilly, VA at Tel: 703.263.7800

A checklist to save on Car Insurance

2011-01-28T15:48:00.003-05:00

I'm sharing a well-written article, that could be of interest to many of us!

A checklist to save on car insurance
By Tara Baukus Mello • Bankrate.com

Thanks to the economic downturn, more Americans than ever are looking for ways to reduce their expenses. For many, car insurance is one area that can represent savings, either by changing coverage on an existing policy or switching carriers entirely. Still, in some instances you may want to spend a little more to ensure you have adequate coverage.

Here are four changes you may want to make on your car insurance policy based on recent trends that affect auto insurance.

Check your annual mileage estimate on your policy. Since insurers rate a big part of your risk on how many miles you drive, tell your car insurance agent right away if you are driving less and your policy rate will go down without changing any coverage. At a time when many people are unemployed or have switched jobs after a layoff, the number of miles you originally estimated when you got your policy may be radically different from what you drive currently. Even if your work situation hasn't changed, you may be able to reduce your annual mileage by carpooling or taking public transportation.

Keep your credit score as high as possible. An increasing number of auto insurers are using financial credit scores as one of the factors in assessing risk and setting rates. For these companies, the higher your credit score, the lower your auto insurance premiums. If your credit has been tarnished recently, you could end up paying more when your next premium comes due, so do everything you can to keep your score as high as possible and to get it back up as quickly as you can. If you know your credit has improved, don't hesitate to ask your insurer to rate you again, since the company may not do it when your premium comes due.

Get adequate uninsured/underinsured motorist coverage. The number of uninsured and underinsured drivers is on the rise, primarily due to the increase in unemployment. Unless you have uninsured/underinsured motorist coverage on your policy, you will be stuck with the repair bill on your car and potentially your medical expenses, depending on your health insurance coverage. Spend the extra money to get as much of this coverage as possible, since even a minor fender bender in a parking lot could result in repairs that cost thousands of dollars.

Tread carefully if you drop collision coverage. Americans are keeping their cars longer -- another result of hard times. While an older car is generally cheaper to insure, some people consider dropping collision coverage altogether to save even more money. However, remember that a lack of collision coverage means you'll need to foot the entire repair bill for your car if you are at fault. Spending the extra money on collision coverage may be a better choice if it will be challenging to get the funds to repair or replace your car after a collision.

Ask the adviser
If you have a car question, e-mail it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.

For all your insurance needs in VA, MD and DC, please call NOVA Insurance Group, located in Chantilly (tel 703.263.7800).

5 Tips for Filing a Home Insurance Claim after Disaster Strikes

2010-12-28T16:24:00.002-05:00

When a disaster strikes your home it can be devastating. Get yourself back on track quickly by knowing how to file a quick and comprehensive insurance claim.

1- Always call your insurance agent first.

Then…

2- If you don’t already have a home inventory complete, start by making a list of all of your property that was damaged or lost. Having an updated home inventory prepared ahead of time may allow you to skip this step entirely making the claims process much quicker. (Remember: It’s always more difficult to remember what you owned after it has been lost.)

3- Take photos of the damage including structural damage and damage inflicted on your home’s contents.

4- If your home is still relatively safe to inhabit, start any temporary repairs that will keep your home from experiencing further damage. For example, if there are holes in your roof, windows, walls or doors be sure to use plastic or some other water resistant material to cover the holes and prevent further water damage.

5- Get at least one estimate from a licensed, insured and reputable contractor for the repairs necessary to repair your home back to it’s previous condition.

Call us at NOVA Insurance Group for all your home & property insurance needs. The Agency is located in Chantilly, VA and our tel no. is 703.263.7800. Serving VA, MD and DC for the last 15 years!

2011 Safest Cars!

2010-12-23T15:47:00.002-05:00

The safest cars for 2011 have been chosen by the Insurance Institute for Highway Safety (IIHS), an independent nonprofit scientific organization dedicated to reducing the incidents on American highways.

18 of the 66 winners of the newest IIHS Top Safety Pick award come from Hyundai and Volkswagen; with nine winning models each, the two manufacturers topped the list.

IIHS instituted tougher standards for 2010; the institute added roof strength to its criteria, testing protection in rollover crashes. Only 27 2010 models were initially able to pass the new test, but by the end of the 2010 model

"In just a year, automakers have more than doubled the number of vehicles that meet the criteria for Top Safety Pick," Institute president Adrian Lund said in a press release.

Ten more models made the grade in 2011, while two were discontinued.

"That gives consumers shopping for a safer new car or SUV—from economy to luxury models—plenty of choices to consider in most dealer showrooms” Lund continued. “In fact, every major automaker has at least one winning model this year."

Rear crash protection, seat and head restraints, front and side evaluations were all added into consideration along with roof strength. Based on incident tests and ratings, IIHS´s list helps consumers to choose cars that offer the highest level of protection.

Here´s a full list of the 2011 Top Safety Picks:

Large Cars
Buick LaCrosse
Buick Regal
BMW 5 series (except 4-wheel drive and V8)
Cadillac CTS sedan
Ford Taurus
Hyundai Genesis
Infiniti M37/M56 (except M56x 4-wheel drive)
Lincoln MKS
Mercedes E class coupe
Mercedes E class sedan
Toyota Avalon
Volvo S80

Midsize Cars
Audi A3
Audi A4 sedan
Chevrolet Malibu
Chrysler 200 4-door
Dodge Avenger
Ford Fusion
Hyundai Sonata
Kia Optima
Lincoln MKZ
Mercedes C class
Subaru Legacy
Subaru Outback
Volkswagen Jetta sedan
Volkswagen Jetta SportWagen
Volvo C30

Small Cars
Chevrolet Cruze
Honda Civic 4-door models (except Si) with optional electronic stability control
Kia Forte sedan
Kia Soul
Mitsubishi Lancer sedan (except 4-wheel drive)
Nissan Cube
Scion tC
Scion xB
Subaru Impreza sedan and hatchback (except WRX)
Toyota Corolla
Volkswagen Golf 4-door
Volkswagen GTI 4-door

Minicar
Ford Fiesta sedan and hatchback (built after July 2010)

Minivan
Toyota Sienna

Large SUV
Volkswagen Touareg

Midsize SUVs
Audi Q5
Cadillac SRX
Chevrolet Equinox
Dodge Journey
Ford Explorer
Ford Flex
GMC Terrain
Hyundai Santa Fe
Jeep Grand Cherokee
Kia Sorento (built after March 2010)
Lexus RX
Lincoln MKT
Mercedes GLK
Subaru Tribeca
Toyota Highlander
Toyota Venza
Volvo XC60
Volvo XC90

Small SUVs
Honda Element
Hyundai Tucson
Jeep Patriot (with optional side torso airbags)
Kia Sportage
Subaru Forester
Volkswagen Tiguan

Most & Least Expensive Cars to Insure!

2010-12-20T16:17:00.002-05:00

http://finance.yahoo.com/insurance/article/110503/most-and-least-expensive-cars-to-insure?mod=insurance-autos

Want low insurance rates? Stay away from luxury coupes and sedans.

Looking to buy a reasonable ride, something reliable and affordable over the long run? Consider a Mazda Tribute or Dodge Caravan--they have among the lowest average insurance rates in the country.

Most people don't think about how much they'll spend buying coverage when they're picking out a vehicle. But they should--on average, insurance accounts for roughly 11% of total ownership costs over a five-year period. And depending on the model you choose to drive, you could end up paying a lot more.

"The choice of car is a major cost-driver in terms of what you're going to pay" for insurance, says Jeanne Salvatore, a spokesperson for the Insurance Information Institute.

Behind the Numbers

To determine the cost of insuring different vehicles, we used data commissioned by Insure.com (NasdaqCM: NSUR - News) from Quadrant Information Services, a data provider based in Reno, Nev. Analysts at Quadrant calculated the average premiums using car insurance rates from six large carriers (State Farm, Allstate (NYSE: ALL - News), Progressive (NYSE: PGR - News), Geico, Farmers and Nationwide) in 10 ZIP codes per state.

Averages assume the driver is a single, 40-year-old male who commutes 12 miles to work, with policy limits of $100,000 in injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident, plus a $500 deductible on collision and comprehensive coverage. He has a clean driving record and good credit. (The policy includes uninsured motorist coverage.)

The data do not include exotic cars like Lamborghinis or super-expensive cars like Bentleys--though those models certainly do carry high insurance bills.

You'll Pay for Luxury

In general the vehicles with the lowest rates are wagons, vans and low-priced sedans. Stay away from hotrods like the Dodge Viper SRT-10 coupe or luxury saloons like the Porsche Panamera Turbo; those tend to be more expensive.

Luxury cars in general command high insurance rates. The Porsche 911 Carrera coupe ($77,000 MSPR, plus almost $3,000 per year for insurance) and Mercedes-Benz S65 AMG sedan ($201,150 MSRP, plus $2,900 per year) are two of the most expensive vehicles to insure. In fact, every car on our most-expensive-to-insure list costs more than $77,000 (for the base model).

Size and Power Matter…

Cars often have higher auto insurance rates than larger vehicles, too, because they tend to have higher rates of injury and collision claims, according to the Insurance Institute for Highway Safety.

But size is far from the only factor that determines insurance payouts. Raw power counts for something too. And according to Russ Rader, a spokesperson for the Highway Loss Data Institute, high-horsepower vehicles tend to get into proportionately more crashes than their low-powered counterparts. That's one reason why cars like the Viper and Carrera made the list.

"If [insurance companies] aren't charging more for high-powered vehicles, they should be," Rader says.

That's because high-horsepower vehicles are often second, third or fourth cars in a household, not the primary, essential daily driver. "If somebody wants a toy and buys a high-horsepower Corvette, that vehicle is probably garaged during the week and then taken out for weekend play," Rader says. That means it's subject to potentially different driving habits and conditions than the family van.

…And So Do Your Driving Habits

The location of the car, the driver's record, commuting distance, credit history, health and age (of both the driver and the car) can also affect insurance prices. Even the amount of harm a vehicle could potentially inflict on another driver (a big pickup truck, for example, will always crush a Ford Fiesta) affects payment rates.

Salvatore says the best policy for getting the lowest possible payment is to do it the long way--drive safely, obey traffic laws and maintain good credit. Admittedly it's easier said than done.

By the Numbers: Most and Least Expensive Cars to Insure

Most Expensive, No. 1: Porsche 911 Carrera
Trim: GT2 2 Door Coupe
Cylinders: 6
Average National Premium: $2,943.78

Most Expensive, No. 2: Mercedes S65 AMG
Trim: 4-Door Sedan
Cylinders: 12
Average National Premium: $2,863.03

Most Expensive, No. 3: Dodge Viper SRT-10
Trim: 2-Door Coupe
Cylinders: 10
Average National Premium: $2,851.89

Least Expensive, No. 1: Mazda Tribute
Trim: i 2WD 4 Door Utility
Cylinders: 4
Average National Premium: $1,070.25

Least Expensive, No. 2: Honda Odyssey
Trim: LX 5 Door 2WD SOHC Van
Cylinders: 6
Average National Premium: $1,095.26

Least Expensive, No. 3: Chrysler Town & Country
Trim: LX 2WD 4 Door 3.3L Wagon
Cylinders: 6
Average National Premium: $1,119.83

Before buying a new car, call us here at NOVA Insurance Group (Tel: 703.263.7800). Let us run some numbers for you; we can estimate premiums so you won't be shocked later!

Tow Truck Scams!

2010-12-15T14:58:00.002-05:00

http://www.wtop.com/?nid=25&sid=2201620

WASHINGTON -- Not all threats on the road come from other drivers, and one service to which most motorists usually look for assistance can actually be the source of a major scam.

Inflated fees for towing services increased 103 percent in 2010, according to the National Insurance Crime Bureau. Their scams to draw more money out of drivers in need can take on many forms, so nation-wide insurer Allstate put together a list of tips to avoid getting burned on the pavement.

Be suspicious of tow trucks that weren't specifically requested by you or by police.

Only accept aid from tow trucks with consistent, clear signage, and from companies pre-approved by your motor club or insurance provider.

The tow truck does not need your insurance information, so don't give it.

It is easy to get burned making payments on tow truck company storage fees, so make sure your car is towed home or to a mechanic.

Know what you're signing. Approve the dollar amount quoted, and not the bottom of a document that tow truck drivers may alter after receiving your signature.

Always remove valuables from your car.
These scams, potentially costing insurance companies thousands of dollars, can have far-reaching effects.

"When Allstate pays claims for fraudulent charges, it can certainly impact the price of insurance for everyone," Christina Tyler Loznicka, a spokeswoman for the company, told a New York Times blog.

Loudoun Insurance and South Riding Insurance, Northern Virginia Zip 201*-221*, Near 20152