A MoneySupermarket home contents insurance expert is stressing the need to find out the exact worth of any valuables before getting annual cover after research revealed that the average British household currently insures over £3,500 of gold items among other treasured belongings.

Findings by the Moneysupermarket.com Monitor, which delivers analysis and insight into home insurance, show that Brits are collecting all sorts of antiques and rare objects as long-term investments at a time of economic uncertainty for some many people.

Nearly three million home insurance quotes were examined between June 2010 and May 2011 and as well as insuring 10 per cent more gold than last year, average households are also getting cover for coin and medal collections worth over £4,400 each, stamp collections worth £6,138, art or paintings worth £4,209, furs worth £2,819 and almost £3,500 of antiques. An average of £3,619 is also being spent on ‘curios’ and these are rare and interesting items.

Julie Fisher is the head of home insurance at MoneySupermarket and is urging collectors of all paraphernalia to correctly value their belongings or risk being left without adequate insurance.

She said: “The era of ‘Rule Britannia’ is alive and well but whether people have inherited valuable heirlooms, or have scoured shops and markets to unearth valuable retro treasures, it’s crucial to understand how underestimating the overall value of home contents could leave you underinsured and severely out of pocket.”

Fisher continued: “This ‘hoarding’ is an interesting phenomenon seemingly borne out of our current difficult economic times.

“Perhaps many are shunning more traditional savings routes, buying gold and antiques rather stashing their money in the bank. It seems we are all looking at our possessions and scrutinising their proper value, keeping and insuring things that we may have thrown away or sold.

“Also, with the price of gold hitting close to a staggering high of $1,900 an ounce, it’s interesting that many homes in Britain are holding onto their gold, rather than selling it for cash as many have done in the past.”

Laptops (42 per cent) proved to be the most frequently insured individual items by homeowners in spring 2011, followed by bicycles (22 per cent) and jewellery (19 per cent).

The Moneysupermarket.com Monitor is also reporting that the average annual buildings and contents insurance premium now currently stands at £152.44 following a decrease in price of 0.4 per cent from June 2010 to May 2011.

photo credit: Gray Marchiori-Simpson

Touring caravan insurance is an essential purchase for anyone that intends to take their caravan on public roads. It’s there to provide valuable financial backup in the event of an accident or any kind of damage occurring, and whilst some car insurance policies will include this level of cover it’s often wise to go for a separate policy if you want complete peace of mind.

What should be included in a policy?

There are always different levels of cover to choose from depending on your needs, ranging from basic third party protection to fully-comprehensive cover that ensures you’re ready for anything. The type of policy and the added extras that you’re looking for will often come down to a combination of budget and personal circumstances, but the following will always be worth looking for in any kind of policy:

• New for old cover.
• Breakdown assistance.
• European cover.
• Accidental damage cover.
• Windscreen protection.
• Legal and medical expenses cover.
• Storm damage protection.
• Cover for alternative accommodation.
• Public liability.
• Contents and personal effects cover.
• 24-hour claims lines.
• “All risks” protection (including fire, theft, accidental damage, storm and flood cover).

These are just a few things worth thinking about when searching for your policy, but always remember that different caravan insurance companies will be able to offer different levels of protection accordingly. That’s what makes research so important, and if you spend the time to look you’ll have a much better chance of finding the policy that suits your needs.

How to find your perfect quote

In order to find the perfect quote you’re going to need to scour the market thoroughly. Doing so gives you a far better chance of finding the policy that’s suitable, and never be tempted to save time by opting for the first quote you come across – this will invariably mean you’re left with a policy that’s inadequate, so if you want complete peace of mind make sure to spend the time to look.

This needn’t be that time-consuming though, because if you head online and seek specialist price comparison sites you’ll be able to find the perfect quote before you know it. Comparing the options is key and will ensure you’re left with a quote that gives you the perfect level of cover at a price you can afford, and if you make sure to carefully look at the policy features and price of each quote you’re bound to make the right decision.

There are a number of things you’ll need to bear in mind when searching for your policy, however. The first one is to be aware that your postcode will often affect the quote you’re given, with certain areas being deemed to be more of an insurance risk than others. You’ll also have to provide totally accurate information to ensure the validity of any subsequent claims, and always remember to check the small print of your policy so you don’t get any nasty shocks – exclusions and limitations will always be apparent, so it’s essential to know exactly what’s covered before you head off on your holiday.

Essential tips to reduce your premiums

Once you’ve done adequate research you’ll have a much better idea of the options available to you, but don’t think you have to spend a fortune to get a policy that meets your needs. Comparing the options is only the beginning – there are plenty of things you can do to reduce your premiums even further to result in extra cash in your pocket, and here are just a few you might like to try:

• Invest in as many security features as you can. Basic security precautions (e.g. hitch locks and having securely locked doors and windows) are essential and failing to have them could nullify your claim, but it’s often best to go for more advanced options such as burglar alarms and even satellite tracking devices. Not only will doing so ensure the safety of your caravan, but many insurance firms will be able to give you great discounts as you’ll be less likely to make a claim.
• Store your caravan securely when not in use, preferably in a locked garage or storage area. Again, this could result in fantastic discounts as theft and vandalism will be less likely.
• Become a member of a recognised caravan club. This many not seem that important initially, but it can actually be a great way to reduce your premiums. By signing up to one of these clubs you’re showing any potential insurance firm that you’re a responsible caravan owner who takes their obligations seriously, and you’ll often be given discounts accordingly.
• Increase your excess. Excess options aren’t always fixed and many insurance firms will let you choose your own level in order to reduce your premiums, and as long as you keep it realistic it can be a great way to keep costs down.

These options all require advance consideration if they’re going to be worthwhile, but spending the time to properly arrange everything can be one of the best things you do. Of course, there are plenty of simpler things you might like to try as well – haggling, for example, or simply keeping an eye out for any additional discounts – and if you bear in mind all the options you’ll be able to get the policy you’re looking for at a price to suit.

Overview

So, always remember the importance of investing in touring caravan insurance if you want complete peace of mind when you’re on the road. Not only is it a legal requirement to have your vehicle insured but it also makes sound financial sense, particularly when you consider the cost of your caravan and of the possessions contained within it, and with the right policy behind you you’ll find you don’t have a thing to worry about. Spending the time to search can make all the difference and can ensure you find the level of cover you need without spending a fortune, so head online and you’ll soon have the perfect policy that will leave you free to enjoy your holiday.

photo credit: pedrosimoes7

Developments around health and safety in the workplace in the United Kingdom are sparking fierce debate on the issue of employer responsibilities. The discussions taking place in the UK are shaping the future for businesses all over the world, as companies get to grips with what they need to do to protect their profits and their staff against the dangers of illness and injury. Many are asking important questions, such as what is public liability insurance?

Thanks to public liability insurance UK businesses have been well protected against the cost of insurance claims by employees who have been injured or taken ill in the work place. This type of insurance cover is very common in Britain and it is expected that most businesses purchase a premium as a matter of course.

But the harsh economic climate of 2011 is taking its toll on all businesses, big and small, and everyone is making cut backs where they can. Unfortunately, it is often the purchases made ‘just in case something goes wrong’ that come under close scrutiny when business owners are looking at where they can make quick and easy savings.

Those owners might look at their public liability insurance and see it as being ‘less-than-essential’, but they risk the wrath of their customers and the public at large.

Just this year in Ireland, no less than 14 member clubs of the Donegal Gaelic Athletic Association failed to renew their property and public liability insurance.

The Donegal Democrat reported that Naomh Ultan’s Terrence McGinley raised the matter at a county committee meeting.

He said: “It is highly irresponsible of these clubs not to have their property and public liability insurance. I don’t know who the clubs are, and for that matter my own club could be one of them, but it is not good enough and it is not on.

“What happens if a supporter or someone from another club or a member of the general public turns up at one of these grounds and gets injured and makes a claim – who is liable?”

The UK’s Association of Personal Injury Lawyers (APIL) has delivered a word of warning to employers who may seek to take advantage of more relaxed health and safety laws as an excuse to not report workplace injuries.

APIL President David Bott told PostOnline.co.uk: “It is only right that an employer, whose negligence has caused an injury to a worker, should meet the cost of the investigation into the incident. But there needs to be a mechanism which helps ensure that businesses abide by the rules and continue to report workplace injuries to the Health and Safety Executive.

“By making the failure to report workplace injuries a criminal offence, negligent employers will fear steep consequences for not complying. This will increase the onus on them to observe the rules properly, and not ignore them at the expense of workers’ safety.”

photo credit: Garry Zeweniuk

Homeowners across Britain are experiencing differences to their home insurance premiums and it all seems to be based upon which postcode you live in.

Data from MoneySupermarket.com’s Home Insurance Monitor, compiling nearly 3 million home insurance quotes from summer 2010 to spring 2011 has found which areas are the biggest winners and which areas are the biggest losers when it come to home insurance premiums.

 Homeowners lucky enough to live in Jersey, South and East London and Norwich are enjoying the biggest reduction in their premium costs. Jersey saw the biggest reductions with their premiums being cut by 13% followed by South and East London with both areas enjoying a 7% reduction and Norwich 6%.

But why are these areas experiencing such decreases when other areas of the UK are having their home insurance premiums increased?

Julie Fisher, head of home insurance at MoneySupermarket.com explains: Our research shows some areas have seen more of a decrease in the cost of their premiums than others. Unfortunately, postcodes can dramatically affect how much people pay for their home insurance premium. For example in Jersey, one fifth of the population is retired, and low crime rates coupled with mild weather conditions means that the cost and frequency of claims are likely to be lower than other areas of the country. East London is undergoing significant regeneration and infrastructure improvements and insurers may be adjusting premiums as a result.”

Here is a table to show the 10 postcodes which saw the biggest decrease to their home insurance costs:

Data sourced by MoneySupermarket.com

In contrast some areas are experiencing a large rise in their premiums, with Jersey’s Channel Island neighbours, Guernsey experiencing the biggest rise of 32% with Orkney and the Shetland Islands following with 21% and 20% respectively. But what, you might ask, are the reasons for this? Julie Fisher continues “In the case of Guernsey, Orkney and The Shetland Islands, home insurance cover in Summer 2010 was lower than the national average premium price. It is likely that insurers have brought these prices in line with the rest of the country, rather than responding to any specific ‘occurrences’ on these islands, although climate may play a part.

Other areas that experienced an increase to their home insurance include Llandrindod Wells, Stevenage and St Albans, Julie Fisher explains possible reasons for these increases “If your property is classified as being in a ‘high-risk’ area – whether for crime, flooding or even fraudulent claims – it will be reflected in your home insurance premiums. Living in a more affluent area will also increase premiums as property and contents values will generally be higher. Insurers use postcodes as a part of the overall risk factors when calculating premiums. Although there is very little you can do about the postcode in which you live, except move house, there are steps you can take to reduce your premiums, such as, installing a good home security system and security lighting.”

Here is a table to show the 10 postcodes which saw the biggest increase to their home insurance costs:

photo credit: LulaTaHula

Setting up as a sole trader can be the simplest, and most rewarding, way to run a business. You won’t need to pay any registration fees and it’s straightforward to keep accounts and records. Most importantly, however, you get to keep all the profits. You will be on your own though, so it’s you alone that needs to make sure you are up to date with all legal requirements and have the appropriate business insurance in place. It’s also not without its risks as you’ll be personally liable for any debts that your business runs up, which can therefore make it a risky option for businesses that may need a lot of investment.

Raising finance

You’ll need to raise the money to get your business off the ground, by using your own assets and/or with loans from banks or other forms of lenders. This can be an extremely daunting prospect, so make sure you go in with a full business plan, get the amount you need to borrow right from the outset, and treat negotiating for money with the same passion and tenacity as you would do when trying to make a sale.

Business Insurance

While operating your business as a sole trader you’ll still need to ensure you have appropriate business insurance in place. In most instances this will be either public liability or professional indemnity insurance. With that in mind it’s worthwhile to seek professional advice on which is the most appropriate insurance for your business needs.

Tax and National Insurance

When setting up as a sole trader, you’ll be self employed, which means:

• Your profits are taxed as income
• You pay fixed-rate Class 2 National Insurance contributions (NICs) regardless of any profits you make
• You pay Class 4 NICs on any profits
• You need to register for Self Assessment and complete a tax return each year

Records and accounts

It is imperative that you keep records showing all your business income and expenses. When starting off it may be advisable to get in touch with a professional accountant who can provide you with all the details on how to keep your accounts professionally maintained and up to date.

Liability

One of the biggest factors to take into consideration when setting up as a sole trader is that you are personally responsible for any debts that are run up by your business. In reality, this means that your home or other assets may be at risk if your business runs into trouble.

> photo credit: kylemac

photo credit: epSos.de

If you’re letting out a property you’ve a lot to think
about, you’ll probably be decorating, doing some DIY, making sure the property
adheres to safety standards and fulfils all regulations. You’ll be thinking
about contracts for your tenants, you’ll be trying to find the perfect tenants.
There’s an awful lot to think about, but the one thing you must not forget, is
to get Landlord Insurance. Even if you already have the property insured with a
standard home insurance policy, it isn’t sufficient when you have tenants in
the property. You won’t be covered, as the policy will be invalid.

There are some additions with landlord insurance that you
won’t find in a standard home insurance policy. The needs of a landlord are
quite different from those of a homeowner occupying their home, and the
Landlord Insurance policies reflect this.

Of course you’ll need Landlord
buildings insurance, to cover structural damage. This is similar to your
standard home buildings insurance, covering you for floods or fire etc. but you
may also have additional cover for malicious damage. If a tenant vandalises
your property on purpose then you can file a claim. Your buildings insurance
should also include permanent fixtures such as fitted kitchens, wardrobes and
bathrooms.

Landlord
contents insurance will cover you for any furniture you have in the
property, this may include carpets and curtains and white goods, but do check
your policy details careful to make sure all your items are covered. It is
however unlikely that your landlord insurance policy will cover your tenants
belongings. Check this and let your tenant know if they need to arrange their
own contents insurance for their possessions in the house.

Some landlord insurance policies will include Rent Guarantee
Insurance. This type of cover comes into play if a tenant perhaps refuses to
pay the rent, and may even cover you for your property being empty between
tenants. If you have a lot of outgoings on the property such as mortgage
repayments, this might be a useful addition for you.

Legal Cover and Liability Insurance can also be very useful.
You will be covered if a tenant is hurt, injured or becomes ill in your
property because you have failed to maintain something properly. This could be
a fall down stairs due to a rotten banister, or sickness caused by carbon
monoxide poisoning from a gas fire that hasn’t been properly checked. You would
also be covered for taking a tenant to court or having them evicted.

photo credit: Ed Callow [ torquespeak ]

Despite what you may believe about the insurance costs associated with modifying your car, vehicle owners are actually able to offset the recent car insurance price hikes (especially when it comes to modified car insurance). By using comparison sites to compare car insurance and get the best deals going, modified vehicle owners are able to take full advantage of the huge savings available online with those various insurers which are happy to offer modified vehicle owners a fair price.

Any motoring enthusiast who chooses to modify their car can usually expect to suffer a massive hike in their insurance premium. Everything ranging from getting tinted windows to installing an in-car phone or getting a good-quality set of hubs will affect the cost of car your insurance. Take, for instance, the study commissioned relatively recently by one of the UK’s primary price comparison websites, moneysupermarket.com.

If you’re thinking of installing a body kit, then you may think again when you hear that it can increase your premium cost by up to 101 per cent. The main way of making significant savings, says the comparison site, is to compare car insurance quotes using its car insurance comparison tool – naturally.

But, despite what you may think is mere hype, these sites really are pretty good at seeking out the best-value deals, and saving you a hell of a lot of time in the process. But apart from just this, are there any other practical tips you can implement to keep your modified car insurance costs down?
It’s extremely important that you keep your insurer fully up-to-date with any modifications you make, immediately, because not to do so could well see your policy invalid and you in a whole lot of trouble.

Increase security
If you have a garage or driveway, make sure you use it and tell your insurer. Add an industry approved immobiliser, alarm and tracker to your car too, and you’ll cut a chunk off the price of your premium.

Pay annually – Paying an annual lump sum as opposed to in monthly instalments will save you anywhere between 10 and 20 per cent. And if you don’t think you’d be able to do this, get yourself a credit card that offers 0 per cent interest on new purchases or a 12-month interest-free period.

Add another driver – if you’re a younger, less experienced driver, it’s a good idea to add an older, more experienced one to your policy to bring down the cost. However, don’t name them as the main driver if they’re not – this is called fronting, is considered fraudulent and is highly illegal.

Take the Pass Plus test – Costing between £125 and £160, this can reduce the cost of your insurance by as much as 30 per cent, and once you have it, that’s it – no extra costs. While it has indeed been devised to help newly-qualified drivers, any driver can take it at any point of their driving career.

Don’t claim for every little thing
Every year you don’t claim on your insurance, you’ll qualify for a no-claims discount, and once you hit the five-year marker, you’ll save up to 65 per cent – which you can protect, meaning that you’ll be allowed to claim once or twice before your bonus is rescinded.

Reduce your mileage estimate
When you insure your car, you’ll be asked to give a good estimate of the annual mileage you’ll expect to do in the year ahead. If you overestimate, you’ll end up overpaying for mileage that you simply won’t use. Be conservative, and if you think you’re going to go over the mileage you originally stipulated, don’t forget to inform your insurer immediately.

Picture from flickr user: nazly

photo credit: muitosabao
There are few industries that rely upon recommendation and word of mouth more than hairdressers and beauty salons.

Should the worst happen, if you were to cause physical injury to a client or, worse, be burgled and not be able do that perm in time for Thursday afternoon bingo, and you were unable to compensate your clients, your business would be, like the neglected hairdo, in tatters.

Like hairdressers and beauty salons, nail bars and tanning shops provide the base for industries that rely heavily on human contact, both physically and in the psyche; it would be foolish to entertain such a venture without being adequately insured.
Salon Insurance should be the cornerstone of your cover and should protect financially you from many of the more common risks, such as general wellbeing within the salon and safe premises.

And, if you are not an independent trader or freelance beautician or hairdresser, you will need Employers Liability Insurance so that your staff can work safely and you’re secure in the knowledge that, should they injure their selves whilst carrying out their duty, you are covered, too.

Other general policies should not be overlooked. Your Buildings Policy is a must if you own the salon or shop – without that you have no business; and in the same breath, ensure that you can cover salaries and your own livelihood in the case of business interruption in light of a concurrent claim.

Applicable to both mobile and static businesses within the beauty industry are the tools of the trade. Should they be damaged or stolen, you need to be able to get them replaced quickly and to at least the same standard, to ensure continuity of trade and to deliver the level of service to which your clientele have become accustomed.
There are practises that you should incorporate within your day-to-day business that may carry favour with insurers, providing that you can prove they are being adhered to.

For example, if, as part of your business (whether it be you, a direct employee or a third party who rents a room within your premises), you are offering skin care such as cleansing, scrubbing and exfoliating, ensure that the person providing this service has suitable dermatological certification. Providing they do so, they will carry out skin testing before any application of product whatsoever.

Likewise, with hair colouring, not all hair-types are suitable for all colourants. Discreet sample testing should be implemented for any new clients and ongoing, up-to-date records kept as proof in light of any claim.
So, like your tools, stay sharp and do not cut corners, especially where your insurance is concerned.

 
photo credit: Brett Jordan

By Linda Dailey Paulson

Navigating the need for insurance when renting a motorcycle can seem as challenging as handling a series of switchbacks, but, with adequate preparation, vacationing riders can enjoy the opportunity to see unfamiliar terrain from a two-wheeler.

Some credit card companies provide insurance for rental cars. However, this typically does not apply when the cardholder is renting a motorcycle.

It can be confusing to know whether you are covered fully by your existing policy. Even travel insurance may be inapplicable or inadequate. It is helpful to know the engine size of the vehicle you plan to rent, as some types of insurance don’t even extend to mopeds.

WebBikeWorld says the site frequently receives emails with questions about temporary motorcycle insurance for visitors to the United States, as well as American motorcyclists traveling outside the country.

Motorcycle Services says that those motorcyclists traveling outside the United States, even if they are using their own vehicle, must carry proof of insurance while riding. Typically, U.S.-based policies provide no coverage for the driver or their motorcycle when outside the United States.

If you are a resident of the United States or Canada traveling in Europe, there is a special type of insurance known as “Green Card” insurance, which reportedly meets the foreign regulatory requirements for tourists in most European nations. Again, check carefully before traveling to determine whether you have sufficient insurance for the countries in which you will be traveling.

Those who are visiting North American will typically need insurance if they intend to ride a motorcycle. Coverage required in the United States and Canada typically includes some sort of liability policy for the period during which you will be traveling. This reportedly includes liability coverage for $50,000 to $500,000 per accident and bodily injury/property damage coverage, along with medical coverage.

Some types of coverage may be optional. This may include collision, guest passenger coverage, or uninsured motorist coverage.

Another challenge for owners is whether or not they legally own the vehicle with which they intend to travel. Visitors or tourists typically rent a motorcycle while traveling, but they sometimes bring their own. Most nations’ customs officials will not release a motorcycle without proof of insurance. The lien holder typically will not provide a release to ship a motorcycle without proof of insurance applicable to the nation in which the driver will be traveling.

 If you are renting, the firm may require you to comply with local laws. California Motorcycle Adventures and EagleRider, for example, require each rider to wear an approved helmet.

You may also wish to consider optional types of insurance coverage. This may include collision or passenger coverage.

Obviously, you will want to carefully check to determine what motorcycle insurance coverage you will need for your trip and the laws of the roads on which you will be traveling. Read the terms of your policy carefully. Ask questions of your provider to determine if any additional coverage is needed.

Another factor to consider: Determine whether you have all the appropriate visas and licenses needed to legally operate the motorcycle in the areas in which you plan to travel before renting. You won’t need insurance if you can’t drive the motorcycle.

Linda Dailey Paulson is a professional journalist who writes for Carrentals.co.uk, a leading car hire comparison site that searches over 50 car suppliers from London to Sydney. Linda has been covering auto and legal stories for over 20 years.

photo credit: wwiwsky

Home insurance premiums can vary quite significantly depending on your circumstances.  One of the first steps is to shop around for a policy and find the one that suits you best in terms of price and coverage.

When you are looking around for your policy sometimes it’s helpful to know how a home insurance premium is calculated.  It gives you a bit of insight into how you can get the cheapest policy by making a few changes to what you buy.

Some of the things that can affect the price of your house insurance are:

• The type of home you live in, including the age of the property will have a large influence on the cost of your premium.  Some properties need specialist home insurance cover such as if it’s a thatched property.
• If you opt to pay more excess  then you are likely to be able to pay less for your premium.  Your excess is the amount you have to pay up front in the event of you having to make a claim.
• Just because a policy is cheap, doesn’t mean it’s the best cover to have.  A cheap policy might be missing certain extras that other policies have included in the premium price.  If it’s cheap, very often the extras need to be added on and will cost more.
• Having a secure home generally means that you could pay less for your home insurance.  A secure property is seen as less of a risk by insurers.  Someone living in a secure home is less likely to make a claim for a burglary and theft of contents so insurers are able to charge them a lower premium.
• Some areas are deemed more risky than others by insurers.  Insurers look at postcode areas to determine the risk of an area.  There are various factors that go into this such as the amount of crime an area has as well as environmental factors such as is the area at risk from flooding.
• Unoccupied homes are not particularly easy to insure and can cause a home insurance premium to be higher than if there was someone living in the property regularly.  It’s a good idea to shop around for specialist premiums like this because specialist insurers might be able to do better deals than some of the main providers.

California has a lot of appealing qualities: sunny weather, beautiful coastline and even downhill skiing. However, if you are planning to move to California or are already a resident, you may as well resign yourself to the fact that car insurance in the Sunshine State isn’t cheap.

Indeed, according to Insure.com, California ranked #6 in 2011 in its list of states with the highest insurance rates. Considering there are 50 states, a #6 ranking is far from appealing. California’s average car insurance rate was estimated at a substantial $1991 per year. In comparison, the cheapest state in the country, Vermont, was only half that at $995 per year.

So what makes one state have a higher car insurance average over another? Every year insurance companies pour over current statistics to help them predict how many claims each state is expected to file and how expensive those claims are expected to be. Their conclusions determine the base insurance rate for each particular state.

Why does California pay higher rates than 44 other states?

Crime

The level of crime in a state is one of the main factors that affect a state’s average insurance rate. For example, the more occurrences of car thefts and car vandalism in a state, the higher that state’s insurance premiums will end up being. Unfortunately for Californians, year after year California wins the prize for being the state with most car thefts in the entire nation.

The good news is that, nationally, the amount of car thefts has been declining over the past five years. This is in a large part due to increased law enforcement and high-tech anti-theft gadgets such as hot-wire-proof ignitions and built in GPS units. However, the overall down trend hasn’t change the fact that California remains the leader when it comes to car thefts.

Uninsured Drivers

Most states require you to have uninsured motorist coverage on your car insurance policy. This is to protect you financially in case you are involved in an accident caused by an uninsured driver. In this situation, your insurance company is required to step in and cover your bodily injury expenses even thought the accident wasn’t your fault. Thus, the more accidents that are caused by uninsured motorists, the higher premiums insurance companies need to charge in order to avoid loosing money.

Once again, California isn’t positioned very well. In June 2006 the Insurance Research Council concluded that 25% of all California drivers were uninsured. This placed California equal to Alabama at 25% and just slightly below Mississippi at 26% for states with the highest percentage of uninsured motorists. In comparison, Maine had the lowest percentage of a mere 4% being uninsured.

Generousness of Claim Compensations

Insurance companies also consider how liberal a state tends to be with its monetary awards. States that have judges who award high compensation for insurance claims will invariably pay higher insurance rates. Also, states that have a higher proportion of lawyers advertising their services with the promise of securing high car accident settlements will also have higher insurance rates. Any Californian can attest to how inundated California is with these type of ads.

With all these factors adding up to a high car insurance price tag, what’s a Californian to do? Since they can’t find the cheapest car insurance in the nation, the best thing they can do is try to find the cheapest car insurance in California. Luckily, there are a few tried and true methods to achieve this.

Keep Your Driving Record Clean

Drive carefully. A squeaky clean driving record will give you a “good-driver discount”, which can add up to a generous 25% savings.

Drive a Car with Theft and Safety Features

Theft and safety features, such airbags, motorized seat-belts, built in GPS and hot-wire-proof ignitions can add up to a discount as high as 35%.

Shop Around

Shopping around is the best way to find cheap car insurance. One method is to pull out your local phone book, call the insurance companies in your area, get quotes from them over the phone and choose the company with the best offer. However, this is an extremely time consuming task and you risk the unpleasantness of being forced to deal with many pushy salespeople.

Another method is to contact an insurance agent and let them do the work for you. However, this is far from optimal since you will be at the mercy of their competence and there is the added risk that they will try to push on you an insurance company that rewards them with highest commission.

Then there is the web. The best and quickest way to find the cheapest car insurance is on the net. Simply type “cheapest car insurance in California” into a Google search and you’ll find many free web sites that can help you generate multiple quotes with very little effort on your part. Once you generate the quotes, it’s easy enough to choose the insurance company with the best price.

One final tip: Once you’ve found the lowest quote, you can call your current provider and ask if they can match that price. Usually they’ll be happy to because the last thing they want to do is loose your business to a competitor. This is a great way to get the cheapest car insurance in California without even switching companies!