Geico, Progressive and Allstate are just a few of the auto insurers with ads on TV promising they can save you hundreds over the competition. But how can they all be the cheapest?!

There are actually huge differences between insurers based on an individual driver's circumstances. Each insurer uses its own criteria to assess your level of risk and price your policy accordingly. That's how each insurer can claim to be the cheapest in its ads; they're all assessing different motorists and presenting the results as typical.

Consumer Reports put Progressive's claims to the test. Flo the Progressive Girl's "name your own price" promise is really more of a "name your coverage" come-on. And it's not necessarily the cheapest; in fact Consumer Reports found Progressive could be twice as expensive for certain motorists.

That means you've got to be diligent in shopping over the phone and on the web to find the best deals. Get out your coverage statement and compare it apples-to-apples with other insurers' offerings. Clark recommends shopping for insurance every three years or three years after an accident or ticket.

The only time Clark would not recommend jumping ship to chase a lower premium is if you're with either Amica Mutual or USAA. Their quality is so much better than the typical auto insurer that you're wiser to stay put. Sometimes cheap is not necessarily the right thing and it's better to be with the very best.

More auto insurers are experimenting with pay-as-you-drive insurance.

Progressive Insurance has been one of the pioneers in this field. They have a system where they can equip your car with a smart device -- almost like a black box in an airplane -- that tracks when, where and how much you drive (in addition to your driving style) in order to calculate your premiums.

Years ago, California had a proposal where the more gas you bought, the more you paid for auto insurance. Needless to say, the idea didn't work.

Now California is on to the pay-as-you-drive idea, with a number of big insurers trying it out. This is a completely voluntary program for drivers that they can opt in or opt out of.

Clark loves the idea of this type of insurance, though he realizes many motorists may have their reservations.

In another example, GMAC Insurance offers discounts to drivers of certain GM models if they agree to have their mileage tracked by OnStar.

Here's a real sign of desperation in the economy. The Wall Street Journal reports a rise in the number of people who are torching or otherwise destroying their cars in an effort to collect insurance money.

According to the report, they're drowning their vehicles in the Great Lakes and driving them into canals in California. In the desert West, there are even surveillance fraud teams going around by helicopter looking for people torching their cars. One investigator had 8 arsons in 36 hours!

Those with gap insurance may be especially tempted to commit insurance fraud by arson.

Remember, the longest your car note should ever be is 42 months. Why? At 42 months, you have very little risk of being upside down in your car.

The real solution here is to avoid a dilemma where you're contemplating insurance fraud in the first place. That means buying a used car for cash. For example, associate producer Joel recently bought a 2000 Nissan Altima for $3,200 in cash.

If you're an owner of a Hummer, Saturn, Pontiac or Saab, you may be worried about news that GM is considering phasing out these four brands.

Rest assured that your warranty on any of these cars will be honored as long as GM is in business.

The big concern, however, is resale value. Clark recalls when Oldsmobile folded and became an orphan brand. The value of axed vehicles tends to drops significantly.

On the other hand, there is something to be said about the antiquity factor of a car that's no longer in production. Well-preserved models may be worth a pretty penny decades down the road even though they're unloved today. For example, Clark speculates the PT Cruiser (not a GM model) may experience this simply because it has such an unusual and uncommon design.

If you are leasing a Hummer, Saturn, Pontiac or Saab, don't be tempted to buy the car at the end of the lease. You'd be best off just turning it in.

One final thought: For potential used car buyers, there will likely be some sweet deals on these GM brands if the axe does eventually fall on them.

Many states have minimum requirements for the level of auto insurance that motorists are required to carry. But so often, the minimums are not nearly enough to deal with the possibility of medical expenses or car repairs that can result from an accident.

Clark recently read about a new report in The Wall Street Journal that suggests the number of uninsured motorists is rising. As more and more people are laid off from work, they have to decide whether or not to pay for auto insurance. That leaves the risk that you'll have an accident with an uninsured or under-insured motorist.

Doesn't it seem like you always get hit by someone without insurance? So how can you protect yourself? Check your coverage and make sure it's sufficient enough so that in the event you do get hit, you don't end up having to pay out of your own pocket.

The reality is that no one is truly made whole following an accident -- unless they're tricked into thinking so by a late-night TV ad. Clark's all-time favorite illustration of this was when he saw a minor bus accident. The bus merely tapped the car from behind; there was not a single scratch on the bus and the car's bumper only had minimal damage. But Clark saw more ambulances than you could count on the scene as bus passenger after bus passenger claimed they had "severe injuries."

The lesson to be learned here is that some people look at a minor fender bender as their shot at the jackpot because some lawyer's ad on late-night TV said so.

Remember, if you have a great deal of assets to protect, you need to make sure you have a good liability policy. But if you really have a great deal of assets to protect, you need to get an umbrella policy. Umbrella policies are cheap and effective; for each million in coverage, you usually pay a few hundred dollars a year.

Pay-as-you-drive insurance pricing -- a model pioneered by Progressive in Texas -- holds real promise for the future, according to Clark. As the name suggests, you pay in 1 of 2 ways: Based on your mileage or based on how, when and where you drive.

In the first method, the mileage on your odometer is manually tracked. In the second approach, a computer device in your vehicle checks to see not only total miles driven, but also if you speed, make jackrabbit starts, sudden stops, etc.

Obviously, there's a real creep-out factor with the second method of monitoring.

California is now considering pay-as-you-drive pricing as a voluntary option for all drivers. It will be interesting to see what happens because, as Clark has said many times, California is often a trend-setter for our nation.

The pay-as-you-drive model could be a real boon to your wallet and the environment. As you might expect, people tend to drive less when they know they're paying by the mile. They condense trips or even skip driving if it's not necessary.

For example, Clark likes to visit Fry's Electronics for deals -- but the closest one is 28 miles from his home. If he had a pay-as-you-drive insurance policy, he'd have to calculate the cost of using his vehicle versus the potential savings on electronics before deciding to make the trip.

What do you think about the pay-as-you-drive model and its implementations? Vote in our poll and let us know!

Why do you buy home or auto insurance? You do it because if something goes wrong, the insurer is there to make it right -- be it repair your home, fix your car or replace it if stolen.

But some companies only do half the job. They take the premiums, but they aren't vey good about paying out claims. A trial lawyer's group called the American Association for Justice has come with a list of the worst insurers in America.

Topping the list as the single worst insurer is Allstate. This company once enjoyed a great reputation for customer service, but Consumer Reports also concurs in a separate tally that now they're way toward the bottom of the heap. In a J.D. Power survey, Allstate also gets the lowest score of any home insurer.

But this is not a bash on Allstate segment. Clark just wants you to keep in mind that cutesy TV ads do not a good insurer make.

The penny-pincher prefers to concentrate on those insurers that actually do a good job. Such elites typically include USAA and Amica Mutual.

USAA is open only to active military and those who have recently retired from the service. Clark has been a member for 30 years. During that time, his family had 3 claims (none of them major) and each time the service has been phenomenal. Christa, meanwhile, has been with Amica for 2 years now.

There is one other insurer that Clark knows has a great reputation. That's a small company called New Jersey Manufacturers Insurance, which has nosed out both USAA and Amica in some surveys.

Clark felt like a lone wolf in the late '90s when he got excited about an experiment Progressive was running in Texas to track how, when and where you drove. Once they had this data, they were able to give a highly targeted auto insurance rate.

There's a certain creep-out factor in being monitored this way. Listeners at the time felt Clark was advocating Big Brother. But he rebutted by saying this is voluntary; you choose to let the insurer monitor you for a potential savings.

The Wall Street Journal reports other insurers such as GMAC, Hartford and Uniguard are also offering this type of monitoring and pricing in a number of states. Progressive had been operating this model under the TripSense moniker and will soon rechristen it as MyRate.

Insurers are looking for patterns of jackrabbit starts and hard braking, which both suggest that a driver does not keep a safe following distance. If your driving passes muster, you could enjoy rates that are up to 60% cheaper.

For example, one GMAC customer had been paying $2,000/year for 2 high-end luxury cars. When the system tracked the man and his wife in their daily driving routines, their insurance dropped to $866/year.

Insurers have found that people drive more carefully when they're being monitored. Clark originally predicted most drivers would start out safe and then soon forget. But that's not been the case. We do actually change the way we drive over time.

The Internet has completely changed the auto insurance industry. For the consumer, it's made comparison shopping possible. For companies like Geico and Progressive, it's allowed them to grow by leaps and bounds.

Progressive has always been a bit cutting edge. Clark recalls an experiment they tried in Texas several years ago where there was a robot spy in your car to monitor where and how you drove. That helped the company determine what rates you would pay.

Now Progressive plans to introduce a web tool that will allow you to interact with their pricing. So once you get an initial quote for a standard policy, you can use a click of your mouse to customize your insurance and see how it affects what you pay every month.

This tool is still in beta and there's no word yet on what states it will be implemented in. Progressive plans to roll it out primarily as a marketing tool. That's because a lot of people buy insurance as payment buyers, where they decide they can only spend X amount of dollars per month or per quarter.

But what's experimental today could become a marketplace fixture tomorrow. Those insurers who don't respond to a younger demographic that's highly computer savvy will consign themselves to being a "has been."

At 53, Clark is outside of that demo, but he loves Progressive's idea too!

Clark gave out some bum info back in the winter that he'd like to update. At that time, he'd read a report that suggested auto rates would rise. Why? Insurers were supposedly through fighting for market share via low prices and needed to focus on profits again by raising their rates. But the truth is that attempts to raise rates have failed. The Personal Journal reports that insurers continue to sacrifice profit and rates may go down further.

It pays to comparison shop when you're ready to renew your coverage. Take out your declaration page and get several quotes for the identical coverage you already have. You may save hundreds of dollars a year. Always check the shareholder-owned Amica Mutual, but beware they won't write a policy for you if you have a lead foot. Current and recently retired military members should also shop USAA. This insurer has been called the best customer service organization in any industry by Business Week. That's high praise!

The Wall Street Journal's Personal Journal reports that a number of auto insurers are writing policies for brand-new teenage drivers for the first time in memory. Clark is stunned that Safeco, Nationwide, American Family and Fireman's Fund are among those doing this around the country -- with some conditions. In addition to requiring safety courses, some insurers want parents to install a camera in their teen's car. DriveCam.com offers one such device that can be monitored remotely.

This is not just about money. The No. 1 cause of death among teenagers is auto accidents. We as parents fear the impact that drugs and alcohol can have on our children's lives, but the thing that's most dangerous is the road. Several states have begun doing graduated licenses for teens. Clark recently told you that such plans have helped cut back on teen fatalities behind the wheel. As a parent, it may seem creepy to go the camera route. But Clark thinks it's reasonable. Other insurers make teens log their driving and turn in the logs.

A teen's newfound mobility does not mean they have good judgment. Clark's 19 year old recently told him that she thought she was invincible at 15. But she's changed her mind after being through 2 auto accidents where the vehicle was totaled. Thankfully she was not hurt either time.

Several weeks ago, Clark told you that his wife was in an auto accident. While everyone involved was fine, he promised to report back about the challenges he was having with the other party's insurance company. They didn't want to pay and kept pushing Clark to file a claim with his own insurer -- a process known as subrogation. The problem with subrogation is that 2 insurers can cut a deal, leaving each driver with an at-fault accident on their driving record. In this case, there was no question that the other driver was the one who hit Clark's wife.

While the insurance struggles were going on, Clark and his wife were able to use a spare vehicle they have to get around. The insurers like to play a waiting game because they know that not everyone has more than one vehicle. So most people eventually roll over and just go the subrogation route. Clark was able to instead become politely persistent. He got on a first-name basis with the investigator and called every single day. On the 8th day, the other person's insurer agreed to pay for damage to his wife's car.

The game is to continually stall in the hopes that you'll eventually go to your own insurance company. Clark's just glad he didn't have to file suit in a small claims court against the other driver. But had he done so, their insurance company would probably have capitulated when they were faced with the expenses of a court date. In the end, you are your own best advocate.

After years of declining or staying the same, auto insurance rates are now headed in the other direction. Allstate and Progressive are both raising premiums aggressively in 20 states, according to Bloomberg. There are a few factors contributing to this reversal. First, the availability of Internet insurance quotes sparked a battle for market share that has exhausted many of the insurers. Now their focus has turned from stealing customers to making more money for their own stockholders through higher premiums. Meanwhile, The Wall Street Journal reports that insurers are suffering more losses in collisions as people buy cars with greater horsepower. More horses under the hood increases the level of accidents as people drive more aggressively and speed. The conventional wisdom about calling your insurer to find out what it will cost to insure a car before you buy is again great advice. Plus, it's even more important now than ever to shop insurance rates.

Clark's life is usually quite busy, but there's been a little more going on than usual during the past couple days. Earlier this week, he spoke about closing on an REO foreclosure. In the midst of everything, his family's dog died. Clark's wife and his middle child have been very upset by the death of Costco Wholesale. QT, the family's other dog, is still doing well despite being nearly blind. Meanwhile, Clark's wife was in a car wreck a week ago. The other party's insurer has been stalling, and their car is at the body shop just sitting and waiting for authorization. Finally, his wife said, "You're America's consumer champion. You always give advice to others about consumer problems. What's your advice for yourself, Clark Howard?"

That set Clark on a path that's been educational (but not necessarily fun) as he's learned to deal with the other person's insurance company. One possible solution is to subrogate, which means Clark will go to his own insurer, pay the deductible and let the two insurance companies fight it out. Another possibility is to go the litigious route. The woman who hit Clark's wife has proven delightful, so they're trying to avoid having it come to that. But insurance channels are notoriously difficult to navigate; even if your insurer is good, you still have to deal with the other person's insurer. When Clark checked Consumer Reports' rankings of the best and worst insurers, he found the other person's insurer about halfway down the list. So Clark has consumer problems just like anybody else. He'll update you on what happens if he has to go to court.

Some insurance companies, when you call up and ask questions, will log it on your C.L.U.E. report. This is a tactic that makes other insurance companies not want to insure you. But, you can order your free C.L.U.E. report once a year just like you can with your credit report, and if something turns up false, challenge it. The website to go to in order to order your C.L.U.E. report is choicetrust.com. Fill in some blanks and you’ll have to give your social security number, but then you can check out your personal auto and your personal homeowners report. They do charge you if you need a homeowners report on more than one address.

The Supreme Court has just made a new ruling that insurers can check your credit report to determine your insurance rate. Insurance companies think that how you handle credit is a good indicator of how you will act with them. To make sure that you are ok, pull one of your free credit reports at annualcreditreport.com. Clean it up if there are strikes against you because you don’t want insurance companies hiking your rates when you could have prevented it.

AllState is one of the largest insurers in the country, but the company has been losing market share to some of the other big companies. AllState also ranked slightly below average in customer service, according to a recent J.D. Power study. Surprisingly though, the company plans to raise rates on customers. Most companies are reducing rates these days, due mostly to fewer accidents. Cars and roads are much safer, so claims have gone down. But AllState is doing the opposite. If you’re thrilled with your AllState agent and the service you’ve gotten, you may want to stick with the company. But if your experience has been mediocre, start comparing other insurers about three or four weeks before your renewal date. Insurers use very different methods to establish rates, so you could find a vast difference in cost from one to the next. So, who would Clark recommend? J.D. Power announced its rankings and USAA is No. 1. The company is off the charts in terms of customer satisfaction. The problem is that USAA is only available to military personnel, their dependents and some reservists. No. 2 was Amica Mutual, which is open to a lot more people. The only caveat with Amica is that they’re looking for people who are conservative drivers with conservative cars. They don’t like people who have had accidents and they don’t like fast or fancy cars. So, consider those before you renew!

For the first time this millennium, auto insurance rates are supposed to go down this year. In fact, the Auto Insurance Institute predicts that some people will save a substantial amount because rates are declining. Why? Well, New Jersey – which has been the most expensive of any state - has lessened regulations and improved the availability of competition. So, rates there will go down. Secondly, dozens of states have increased teenage driving restrictions. These include increasing the driving age and restricting the time of day teens can drive. In addition, cars are much safer than they used to be. One automaker – Volkswagen - has done a controversial series of commercials regarding the safety of their cars. Honda and Volvo are also competing for the title of “Safest Car.” Another factor is the baby boomers. The generation has gotten older, and, therefore, they are driving safer. Road design itself has improved, preventing a lot of accidents, as well. New dividers and guide wires are included in this category. A guide wire keeps cars going in the right direction and eliminates head on collisions. So, all of these things combined have all led to more competition and lower prices. Just be sure to save big money by shopping around.

Did you know that an issue on the ballot in the state of Oregon could affect you? Citizens want to ban the ability for insurers to base your insurance rates on your credit score and Clark is 100 percent behind the move. Insurance companies are fighting this citizen initiative tooth and nail. That’s because they think this will cause a domino effect in other states. Right now, more than 90 percent of insurers use your credit score to set your rates. If credit report were at all accurate, Clark could see it making sense. But reports almost always contain errors, so people are charged higher rates when they shouldn’t be or they are denied coverage all together. Rates should be set based on driving record, age and gender. And, Clark hopes the insurance industry fails time and time again with this.

Insurance is one thing Clark doesn’t skimp on, and he doesn’t want you to either. You want your life insured with a financially solid company that will be around down the road when your family may need it. With life insurance, quality means financially strong. When it comes to car and home insurance, quality means that the company is there for you and does a good job. J.D. Power & Associates and Consumer Reports recently rated auto insurers, and both found two companies that are far better than any other company. There are good companies out there, but these two blow everyone away every year. They are USAA and Amica Mutual. USAA is only available to military personnel, their dependents and recent retirees. But Amica is open to everyone. You must qualify as a solid customer and you must have a good driving record. It’s tough to get in. But once you’re in, you will be very happy. So, which company is the worst? According to J.D. Power, AIG was the worst insurer. It’s one of the world’s largest insurers, but apparently its customers are not very satisfied. Just above was GMAC, Mercury and Allied. Clark was surprised by one of the lower ranked companies – Progressive. The company is known as being very smart and changing the insurance industry for the better. But again, its customers aren’t getting the service they want, according to the survey.

Clark believes very strongly in the free market. And some news out today confirms how powerful the market really is. New Jersey has long had the most expensive auto insurance rates in the country. Politicians in New Jersey decided everything an auto insurer did, and rates were sky high. Well, the state got wise to the free market frenzy a few years ago and insurers started coming back to the state. In addition, 75 percent of drivers are paying less than they were before the switch. And according to the New York Times, the average savings is about 30 percent from three years ago. Government should play a role in making sure insurance companies do their jobs. But, in terms of pricing, the market should reign supreme.

Clark has talked in the past about an auto experiment in England, whereby people are charged an insurance premium based on the number of miles they drive. The device tracks everything from speed to the type of conditions in which you’re driving as well. It’s become such a huge success that the insurer in the English experiment has had to order many more spy devices for cars. Now, 40,000 people are driving with these devices in England and more people want them. It’s spread to Japan, too. So what about the States? Well, 27 states here have laws on the books saying it’s possible to charge people based on miles. But no one has put it into practice. Clark loves the idea and hopes it takes off. Now, this wouldn’t work for people who drive a lot of miles. But it would be great for people who don’t drive a lot, like Clark.

Clark talked recently about how getting tow service from your insurance company can boost your rates if you use the service. The report got people up in arms and he has some follow up news for you. The story first came out in Consumer Reports, a magazine Clark highly respects. It said that AllState, State Farm and Geico all either raise your rates or report you to other deciding bodies. Clark wanted to contact the biggest insurer - State Farm – to see what they had to say. And, it is true. If you’re a State Farm, All State, Geico or Nationwide customer, discontinue the towing rider from your coverage. If you need the towing coverage, get it from Costco or BJ’s instead. Read State Farm's response

In Great Britain, there is an automobile insurance company that has its very own clinic set up for car accident injuries. It’s set up specifically to deal with whiplash and other accident-related claims. According to the Florida Times Union, whip lash accounts for 80 percent of injuries in accidents. The real cost of accidents comes from fixing your body not your car. One in five dollars spent on accidents is for fraud. So, there are ways to reduce the amount you pay and what you claim if you’ve been involved in an accident. We’ll see how it works in Britain and let you know if it makes its way over here.

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In other car news, you may have heard about Progressive Insurance and its tracking mechanism that records everything while you drive. It records how many miles you drive, how fast you drive and many other factors. In return for allowing the company to spy on you, your insurance goes up or down. Of course, people start driving better when they know they’re being spied on. If you’re willing to do that, it could reduce your insurance costs by a ton.

More people are shopping for auto insurance online than ever before, and Clark couldn’t be happier. Traditionally, people make one call to one company because our family uses that company or we heard an ad we like. But the advent of the Internet is forcing people to shop around for insurance, with an increase of about 30 percent in the past year. It’s much easier to shop online for insurance. The average time to get a quote from Progressive, for example, is about 8 minutes. You just have to make sure you’re checking several companies. The difference in price from one insurer to another is huge. You could save more than $1,000 a year if you’re paying a high premium. Comparison shopping starting to make a huge difference and you should shop around often. Another option to consider is an independent agent. They can shop any company out there for you and get you a great deal. Just remember that those agents will sometimes charge a little more for themselves if they’re searching for you. So be sure to tell those agents that you’re searching for the cheapest prices and that includes commission.

The National Highway Traffic Safety Administration is supposed to publish regular safety bulletins and establish safety guidelines regarding cars. But the organization doesn’t want to upset the automakers. On the other hand, the insurance industry wants you to buy safe vehicles because it saves them money. As a result, the industry has created a non-profit group called the Insurance Institute for Highway Safety, which does comprehensive testing on cars and how they will do in accidents. There are gold and silver level awards given to cars that perform the best. In the large car category, the Ford 500 and the Mercury Montego got a gold award. The Audi A6 got the silver award. In midsized cars - the largest part of the market - the Saab 93 and the Subaru Legacy. The Audi A-3, A-4, the Chevy Malibu (if you get side air bags), the Volkswagen Jetta and Passat. In the small car category, only one car won the gold award. It was the Honda Civic 4-door. Not a single mini-van won an award, nor did any Volvo vehicles, which were once thought of as the safest cars on the market.

There is a lot of confusion these days over what types of insurance you really need. There are only three. But first let’s discuss the kinds of insurance you don’t need. One kind of insurance you should never buy is credit life insurance, also known as “croak and choke.” Mortgage life insurance is the technical term. The salespeople pretend it’s a great idea, claiming that if you die your debts are paid off. But how important is it to pay off your debts when you’re gone? Basically, with this insurance, the bank gets paid off and gets your money instead of your heirs. In addition, the premiums are about 10 times as high as traditional types of life insurance. Mortgage life’s cousin is credit life insurance, and you are pushed to get this when you buy a car or other big purchase. These are sold as protection for you, but really they provide protection for the bank. So, it’s essentially like putting lipstick on a pig. Maybe it looks better, but it’s still a pig. Another popular item is the variable annuity. It’s almost never a good idea to buy one of these because there are monstrous commissions. What about cancer insurance? If you get cancer, you need health insurance and term life insurance, and that’s it. And, if you can’t work and need replacement of your income, you want disability insurance. Those are the only three you need. All the others you can chuck. What about your car? You don’t need rental insurance when renting a car, first of all. If you get in an accident, you’ll owe regardless of whether you have insurance. And usually your credit cards or auto insurance company has some type of temporary rental car coverage. PEC or “personal effects coverage,” which covers things stolen out of your rental car, is not necessary either.

Why do we buy insurance? We buy it to protect ourselves from a loss at a later date. But what happens if our insurance company doesn’t want to pay? The car insurance company, AIG, is in huge trouble right now for allegedly not paying on policy claims. The company writes policy claims for individuals and businesses. For a while, the company also sold car warranties. According to the Washington Post, the company reportedly rejected about half of the complaints it received. The company would also delay payments in the hopes that people would never receive or have to wait a long time for their money. For instance, the company sent checks to people via second class instead of first class. AIG also claimed people needed to rewrite reports several times to delay the process of the claims. So, if the Washington Post is right, and you are an AIG customer you must document everything and be prepared to fight this one out. If you sense delay, contact your state insurance department, which regulates insurance companies. Also, make sure you’re keeping up with the maintenance on your car so the company has no way of blaming you.

The Insurance Institute for Highway Safety is a force to be reckoned with in the auto industry. The IIHS exists in part to reduce the cost of insurance claims to auto insurers. But the organization is also influential because of its reports on safety mishaps in cars. As a result, automakers are going to the IIHS and having models tested before they are manufactured in great quantities. It’s great for everyone involved because cars are safer for consumers and automakers escape scrutiny in the media. Automakers are literally redesigning their cars to be safer. In addition, Dateline NBC has broadcast crash test information from the IIHs for several years. On the program, you can see which cars you will most likely die in if you’re in if you’re in a crash. When you’re buying a car, knowing whether it’s safe or not is crucial. So, check the latest results from the IIHS Web site.

The latest trend in the insurance business is to offer lower premiums for auto insurance in exchange for letting an insurer spy on you. Insurers install a device in your car known as an automotive black box. It records information about an accident and is used to determine what happened in car crashes. In addition, it records how you drive and where you drive. And your insurance rates move up or down, depending on how you drive. According to Progressive Insurance, the boxes are currently recording how fast you drive and what time of day you drive. About 4,800 people have offered to have these spies in their car in order to get cheaper insurance. They’re saving about 12 percent on average, which doesn’t seem like much to Clark. But he would love to sign up! If he’s driving badly, he’d like to know it. And he wouldn’t mind getting a discount on his insurance in the process. Progressive hopes they’ll be able to do this nationwide eventually. And Clark is all for it, as long as it’s voluntary.

Do you have an umbrella? No, not the kind you used to shield yourself from the rain. This is the kind of umbrella that protects your hard-earned dollars. Say, for example, you are in an auto accident and it’s your fault. They may sue and get a judgment against you that goes beyond your auto insurance liability. Well, post judgment, their attorney tries to get everything you’ve got. The more you have, the more you’re at risk, so to speak. So, it’s a good idea to have an umbrella if you have a lot of uncovered assets. That means that you have a lot of stuff but you don’t owe money on it. That could include equity in your home or money in brokerage accounts. It doesn’t have to be your fault. You could still end up broke. So, ask your insurance company if it offers any kind of umbrella. Most do, they just don’t advertise it. Clark recommends that you buy coverage equaling the amount of assets you have. You probably won’t need to use it. But it’s a good idea to have it anyway. If you have it and pay for it for years and years, it’s a good thing!

Auto insurance rates are going down! Why? Well, an aging population, more careful drivers and better built cars are all part of the reason. So, there are several behavioral and design things going on, but there has also been a reduction in the number of auto fraud and theft. As a result, insurance companies are paying about 61 cents on every dollar in premiums coming in, according to news wires. The year before it was 86 cents, and up until that point companies were paying more than a dollar per dollar. Auto insurance companies are now flush with cash and they are asking for rate cuts for their customers. So, it’s a good thing all over for consumers. Still, all insurers are not create equal, and you need to shop around for coverage. The difference can be as much as $1,000 to $1,200 depending on the company

The concept of diminished value occurs when you are in a car accident and the value of the car declines after the repair. You should always disclose any prior damage to potential buyers before you sell your car. The insurance companies hate the idea of bringing you “whole” when a car is fixed, but there is a tremendous amount of money at stake. The Dallas Morning News has reported that insurance companies are low-balling people throughout Texas. One man was offered $250 on an $11,000 repair. He took the company to court and received $3,500. State Farm has said that it does not believe in diminished value. There have been so many problems that diminished value consultants are now available to help you handle a stingy insurance company. Many insurance companies say that diminished value will raise rates, but this is actually false. If there is a raise, then it will be minimal. Don’t let your insurance company cheat you out of the money you deserve!

When you get an auto insurance policy what should matter when it comes to your rate. Your age and gender weigh in. And where you live also matters, as does what kind of car you drive. All that makes sense. But what about making late payments on your credit cards or bills? Auto and homeowner’s companies are sure that your credit history is directly related to your risk as a customer. There are insurers who will not write a policy for you if you have a bad score. It’s ridiculous, and many states are standing up to the insurance companies and their ridiculous policies. Michigan is the latest state to ban the use of credit scores in setting auto and homeowner’s insurance. What if there is an error on your credit report? Your insurance can be cancelled or the premium could go through the roof as a result, and it’s not even your fault. The system has no wiggle room, no appeal process and no common sense. It should be outlawed in all 50 states.

You’ve probably driven down a highway in suburbia and seen a warehouse club shut down or abandoned along the road. These “gray fields,” as architects call them, are ugly in appearance and they invite criminals. As a result, there has been a huge backlash and a movement is under way in San Francisco to outlaw big box retailers all together. The proposal is to ban any store bigger than 90,000 square feet. To give you some frame of reference, the largest supermarkets are about 50,000 square feet. A warehouse club will typically be 110,000 to 150,000 square feet in size. And the Super Targets and Super Wal-Marts are typically about $205,000 square feet. So, it would eliminate all of the “big box” stores. Clark thinks that we can come to some compromises on this. One way is to set up strict requirements that a retailer must follow when it leaves a space. Come up with rules about what the “big boxes” should be expected to pay in terms of impact fees and other “stranded costs.” Establish rules that deal with big boxes ahead of time. If we put rules in place, many of the things that make people hate these establishments will disappear. For example, in Florida, some big box retailers must abide by strict landscaping rules. And, in Hilton Head, South Carolina, the resort community has set up strict requirements about how a building will look. It will cost some time and money, but there is a bridge across this gap. We just need to do it right in the beginning and everyone can benefit.

Car insurers that have been tripping all over each other to raise premiums are now dialing back a bit. The overall insurance market shows very minimal increases for the next year, and people in many states will benefit from lower insurance rates. In Florida, New York and Massachusetts, this is not true. Those states are suffering from a lot of auto theft and from the fraud rings that stage accidents to make money. But State Farm, the largest auto insurer in the country, has cut rates in 13 states already this year. USAA, one of the nation’s best, has cut rates in 20 states. Some of it is due to market share pressure from competitive companies like Geiko and Progressive. But it’s also because baby boomers are aging and are becoming better drivers. The key for you is to shop for insurance. You can find huge disparities in the cost of premiums from one insurer to another. Yet, most people won’t shop around because it’s boring. When you shop, be sure to raise your deductible as high as you can. This will reduce your premiums and you don’t want to make a claim unless it’s for something catastrophic. Secondly, start with the best insurers. Consumer Reports has found three companies are the top year after year. Amica Mutual is No. 1, according to the latest survey. You have to have a great driving record and drive a dull car or they don’t want you. USAA is No. 2, followed by Cincinnati Insurance.

Clark has talked for several years about the tremendous advantage of getting pre-approved for your car loan from a credit union. They offer deals that are substantially better than what you’ll get from a bank. You will probably get rates of about 1.5 percent lower at a credit union. That’s because credit unions are co-ops, meaning the account holders own them. Online banks also offer great rates on car loans. And there is now a third option for you if you’re shopping for insurance – warehouse clubs. Both Sam’s Club and Costco Wholesale now write car loans at great rates. Sam’s Club is offering 5-year car loans for 3.75 percent. Costco is offering 3.5 percent for executive members and 3.6 percent for other members. Those rates are fantastic! Now, if the car dealership is offering you a lower rate, by all means get it from them. And sometimes insurers, such as USAA, offer competitive car loans. So, check out all of your sources. The other trick of the trade is to refinance an existing car loan that has a really high rate. Costco’s refi rate is offering 4.5 percent for a car older than three years and 4.1 for cars that are newer than that. The one thing you should NEVER do is to walk into a car dealership without having arranged your financing in advance. You have no idea what can happen to you on the spread because dealers mark-up loans whenever they can. If you have your money in advance, you don’t have to worry about getting taken.