There is a big difference between an insurance company canceling a policy and choosing not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:

*You fail to pay the premium
*You have committed fraud or made serious misrepresentations on your application
*Your drivers license has been revoked or suspended.

Nonrenewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Depending on the state you live in, your insurance company must give you a certain number of days notice and explain the reason for not renewing before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company’s consumer affairs division. If you don't get a satisfactory explanation, call your state insurance department.

The company may have decided to drop that particular line of insurance or to write fewer policies where you live, so the nonrenewal decision may not be because of something you did. On the other hand, if you did do something that raised the insurance company’s risk considerably, like driving drunk, the premium may rise or you may not have your policy renewed.

If your insurance company did not renew your policy, you will not necessarily be charged a higher premium at another insurance company.

An adjuster will inspect the damage to your home and offer you a certain sum of money for repairs. The first check you get from your insurance company is often an advance against the total settlement amount. It is not the final payment.

If you're offered an on-the-spot settlement, you can accept the check right away. Later on, if you find other damage, you can "reopen" the claim and file for an additional amount. Most policies require claims to be filed within one year from the date of disaster. Check with your state insurance department.

When both the structure of your home and personal belongings are damaged, you generally receive two separate checks from your insurance company, one for each category of damage. You should also receive a separate check for additional living expenses that you incur while your home is being renovated.


Structure

If you have a mortgage on your house, the check for repairs will generally be made out to both you and the mortgage lender. As a condition of granting a mortgage, lenders usually require that they are named in the homeowner’s policy and that they are a party to any insurance payments related to the structure.

The lender gets equal rights to the insurance check to ensure that the necessary repairs are made to the property in which it has a significant financial interest. This means that the mortgage company or bank will have to endorse the check. Lenders generally put the money in an escrow account and pay for the repairs as the work is completed. You should show the mortgage lender your contractor's bid and let the lender know how much the contractor wants up front to start the job. Your mortgage company may want to inspect the finished job before releasing the funds for payment to the contractor.

Some construction firms require you to sign a form that allows your insurance company to pay the firm directly. Make certain that you're completely satisfied with the repair work and that the job has been completed before you let the insurance company make the final payment. Remember, you won't receive a check for the repair job. The construction firm will bill your insurance company directly and attach the "direction to pay" form you signed.

Bank regulators have guidelines for lenders to follow after a major disaster. If you have any questions contact your state banking department.
Personal belongings

The first step is to add up the cost of everything inside your home that has been damaged in the disaster. Now is the time to review your personal inventory, to help you remember the things you may have lost. If you don’t have an inventory, look for photographs or videotapes that picture the damaged areas. For expensive items, you may also contact your bank or credit card company for proof of purchase. When making your list, don’t forget items that may be damaged in out of the way places such as the attic or tops of closets.

If you have a replacement cost policy, you will be reimbursed for the cost of buying new items. An actual cash value policy will reimburse you for the cost of the items minus depreciation. Regardless of which type of policy you have, the first check will be calculated on a cash value basis. Most insurance companies will require you to purchase the damaged item before they will reimburse you for its full replacement cost.

If you have financed your home, your bank may have received a check for both repairs to your home and your possessions. If you don't get a separate check from your insurance company for your belongings, ask the lender to send the money to you immediately.

If you have a replacement cost policy, you may be required to buy replacements for items damaged before your insurance company will compensate you. Make sure to keep receipts as proof of purchase.

If you decide not to replace some items, in most cases you’ll be paid the depreciated or actual cash value of the items that were damaged. You don't have to decide what to do immediately.

Your insurance company will generally allow you several months from the date of the cash value payment to replace the item. Ask your agent how many months you are allowed before you must replace your personal possessions. Some insurance companies supply lists of vendors that can help replace your property.
Additional living expenses

Your check for additional living expenses should be made out to you and not your lender. This money has nothing to do with repairs to your home and you may have difficulty depositing or cashing the check if you can't get the mortgage lender's signature. This money is designed to cover your expenses for hotels, car rentals and other expenses you may incur while your home is being fixed.
Options for rebuilding

If your home has been destroyed, you have several options:



* Rebuild your home on the same site.
The amount of money you’ll have to rebuild your home depends on both the type of policy you bought and the dollar limit specified on the first “declarations” page of your policy. Generally, you are entitled to the replacement cost of your former home, providing that you spend that amount of money on the home you rebuild. Remember, your insurance policy will pay to rebuild your home as it was before the disaster. It won’t pay to build a bigger or more expensive house. A similar rule applies to repairs.
* Decide not to rebuild or to rebuild in a different location.
The amount you’ll get from your insurer will be determined by your policy, state law, and what the courts have ruled on this matter. If you decide not to rebuild, review your policy and ask your insurance agent or company representative what the settlement amount will be.

If your home was destroyed by a hurricane, wildfire or other disaster, be cautious.

Unfortunately, there are dishonest service providers that prey on disaster victims. They know that people who have lost their homes and valuables may not be thinking clearly. If you have suffered this type of loss, don’t make any rash decisions. Talk to your insurance agent, who may recommend service providers in your area.

Here are some basic guidelines for hiring service providers:

Roofers and Builders

1. Don't be rushed into signing a contract with any company. Instead, collect business cards and get written estimates for the proposed job.
2. Beware of building contractors that encourage you to spend a lot of money on temporary repairs. Payments for temporary repairs are covered as part of the total settlement. If you pay a contractor a large sum for a temporary repair job, you may not have enough money for permanent repairs. In most cases, you should be able to make the temporary repairs yourself. Ask your insurance agent. And remember to keep receipts.
3. Investigate the track record of any roofer, builder or contractor that you consider hiring. Look for professionals that have a solid reputation in your community. You can call your Better Business Bureau for help. Also, get references and never give anyone a deposit until after you have thoroughly researched their background.

A common fraud scheme is for a so-called "contractor" to convince a homeowner that a large deposit must be provided before repair work can begin. Frequently, the job will be started, but not completed. Unfortunately, these con artists are never seen or heard from again.

Public Adjusters and Attorneys

1. Don't make any rash decisions about hiring someone to handle your claim. Be especially wary of individuals who go door-to-door soliciting business in the aftermath of a catastrophe. Most importantly, don't let anyone scare you into signing a contract. You don't want to be victimized by someone who comes into town, hoping to make a fast buck. You could end up forfeiting a significant portion of your insurance dollars.
2. Before hiring a public adjuster or an attorney, try to settle your claim directly with your insurance company. Your insurer provides an adjuster at no charge to you. Ask your insurance agent or company representative to help you with your claim and don't be afraid to ask questions. If you decide to work directly with your insurer, you still have the right to hire a third-party professional to help you.
3. If your claim is complicated and you want to hire a public adjuster or attorney, make sure that person is qualified to handle your case. Ask your friends, relatives or business associates for the names of well-regarded professionals in your community. Also, call your state insurance department regarding a public adjuster, and your state or county bar association about a prospective attorney.
4. Understand that you will have to pay a public adjuster 15 percent and an attorney as much as 30 percent of your total claim settlement.

Properly insuring a rental car can be confusing, frustrating and downright daunting. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes—either wasting money by purchasing unnecessary coverage or having dangerous gaps in coverage.

Before renting a car, the I.I.I. suggests that you make two phone calls—one to your insurance agent or company representative and another to the credit card company you will be using to pay for the rental car.

1. Insurance Company
Find out how much coverage you currently have on your own car. In most cases, whatever coverage and deductibles you have on your own car would apply when you rent a car, providing you are using the car for recreation and not for business.

If you have dropped either comprehensive or collision on your own car as a way to reduce costs, you will not be covered if your rental car is stolen or damaged in an accident.

Check to see whether your insurance company pays for administrative fees, loss of use or towing charges. Some companies may provide an insurance rider to cover some of these costs, which would make it less expensive than purchasing coverage through the rental car company. Keep in mind, however, that in most states diminished value is not covered by insurers.
2. Credit Card Company
Insurance benefits offered by credit card companies differ by both the company and/or the bank that issues the card, as well as by the level of credit card used. For instance, a platinum card may offer more insurance coverage than a gold card.

Credit cards usually cover only damage to or loss of the rented vehicle, not for other cars, personal belongings or the property of others. There may be no personal liability coverage for bodily injury or death claims. Some credit card companies will provide coverage for towing, but many may not provide for diminished value or administrative fees. Some credit card companies have changed their policies, too, so you may not have as much coverage as you thought.

To know exactly what type of insurance you have, call the toll-free number on the back of the card you will be using to rent the car. If you are depending on a credit card for insurance protection, ask the credit card company or bank to send you their coverage information in writing. In most cases, credit card benefits are secondary to either your personal insurance protection or the insurance offered by the rental car company.

If you have more than one credit card, consider calling each one to see which offers the best insurance protection.


At the Rental Car Counter

Since insurance is state regulated, the cost and coverage will vary from state to state. Consumers, however, can generally choose from the following coverages:



* Loss Damage Waiver (LDW)
Also referred to as a collision damage waiver outside the U.S., an LDW is not technically an insurance product. LDWs do, however, relieve or “waive” renters of financial responsibility if their rental car is damaged or stolen. In most cases, waivers also provide coverage for “loss of use,” in the event the rental car company charges the renter for the time a damaged car can not be used because it is being fixed. It may also cover towing and administrative fees.

Waivers, however, may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. If you already have comprehensive and collision coverage on your own car, check with your personal auto insurer to make sure you are not duplicating coverage you already have. Should you decide it is necessary, this coverage generally costs between $9 and $19 a day.
* Liability Insurance
By law, rental companies must provide the state required amount of liability insurance. Generally, these amounts are low and do not provide much protection. If you have adequate amounts of liability protection on your own car, you may consider forgoing additional liability protection. If you want the supplemental insurance, it will cost between $7 and $14 a day.

An umbrella liability policy, however, may be more cost-effective. Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your auto and homeowners (or renters) liability policies to provide extra protection including accidents while driving your own car or one that you rent. These policies, usually sold in increments of a million dollars, cost as little as $200 to $300 annually for a million dollars worth of coverage and another $50 to $100 for each additional million.

Those who do not own their own car and are frequent car renters, can also consider purchasing a non-owner liability policy. This not only provides liability protection when you rent a car, but also when you borrow someone else’s car.
* Personal Accident Insurance
Personal Accident Insurance offers coverage to you and your passengers for medical and ambulance bills for injuries caused in a car crash. If you have adequate health insurance or are covered by personal injury protection under your own car insurance, you may not need this additional insurance. It usually costs about $1 to $5 a day.
* Personal Effects Coverage
Personal Effects Coverage provides insurance protection for the theft of items in your car. If you have a homeowners or renters insurance policy that includes off-premises theft coverage, you are generally covered for theft of your belongings away from home, minus the deductible. If you purchase this coverage through the rental car company, it generally costs between $1 and $4 a day.

If you frequently travel with expensive items such as jewelry, cameras, musical equipment or sports equipment, it may be more cost-effective to purchase a personal articles floater under your homeowners or renters insurance policy. With such a floater, your valuable items are protected at home as well as while traveling anywhere in the world and the coverage is broader.


Other Things to Consider

States have minimum age requirements for renting a car and most major rental car companies refuse to rent a car to someone who is under 21 and in some cases under 25. In addition, some rental car companies now investigate your driving record and/or credit history so check with the rental car company before picking up the car.

If you are planning to rent a car abroad, contact both your insurance agent and travel agent to find out what you need to do to be properly insured. Those driving a rental car from the U.S. into Mexico may find it progressively more difficult to rent a car as U.S. rental car companies are increasingly concerned about the rising crime rates in that country. The minimum required insurance coverage to drive in Mexico is civil liability insurance which covers you in case you cause injury or damage. Your American liability insurance is not valid in Mexico for bodily injury, though some American insurance policies will cover you for physical damage—check with your agent or insurance company representative. You can also buy Mexican car insurance in several American border towns; there are generally several storefronts selling Mexican car insurance near the border.

Note: If you're renting a car abroad, you may need an international drivers license.

NO! Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don’t have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident since accidents may cost far more than the minimum limits mandated by most states.

If you've financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.

When it comes to car insurance, a little research + the right questions = money in your pocket.

Rates can differ widely from company to company, so it pays to shop around. Independent insurance agents represent more than one insurance company, so they can compare multiple carriers and policies to find the one that's right for you.

If you're a do-it-yourselfer, Web sites such as www.progressive.com will help you compare its rates with other insurers.

In addition to shopping around, there are other steps you can take to lower your insurance rate:

Is your policy up to date? If you've moved, gotten married or if it has been at least three years since your last driving violation, check with your insurance company. You may be eligible for a rate reduction.

Is your coverage right for your car? Owners of older or inexpensive cars should consider dropping comprehensive and collision coverages. That can often save hundreds of dollars each year.

Know before you buy. Before you buy a new car, research what it will cost to insure. Generally, smaller cars with lower horsepower are less expensive to insure.

Do you carry excess coverage? Many auto insurers give you the option to add rental coverage to your policy, which pays for a rental car while your vehicle is being repaired. While conditions and costs vary from company to company, it may be unnecessary if you can find other transportation.

Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive costs by 15 to 20 percent. Your agent can show you how raising your deductible can lower your premium.

Do you qualify for any discounts? Ask your independent agent whether any of the carriers he or she represents offer reduced premiums for certain car features such as anti-lock brakes.

Are your policies all "bundled" with the same company? This may not be best for you. Your independent agent is uniquely qualified to quote your policies with "best-in-class" carriers that offer specialized coverages and services. "Unbundling" your policies might save you a bundle.

Each year, millions of Americans prepare their vehicles for winter's inclement weather and treacherous travel conditions. Unfortunately, many do so without a key element-the certainty of whether or not their auto insurance policy protects them for any unexpected accidents they might encounter along the way.

A survey commissioned by Allstate-in conjunction with the introduction of the Good Hands® Coverage Checkup, a checklist provided by Allstate agents to help review consumers' car insurance policy limits-indicated that approximately 60 percent of respondents are not confident they understand their car insurance coverage.

Confidence Gap

More than 40 percent of consumers first answered that they were not confident in their understanding of their auto insurance coverage. However, after being quizzed on specific incidents such as hitting a deer and crashing after a tire blowout, the number of respondents who admitted they weren't confident rose significantly-to nearly 60 percent.

"When the unexpected occurs, the difference between hoping you're protected and knowing you are is crucial," said Lisa Cochrane, vice president of marketing, Allstate. "That's where Allstate's network of more than 14,000 agencies can help consumers feel confident in their coverage."

Additional survey findings included:

• It's All in a Name

A higher percentage of respondents who know their insurance agent's name feel more confident in their knowledge of their auto insurance policies than those who don't have an agent or don't know the agent's name.

• The Great Equalizer

Prior to being polled on accident-specific questions, 70 percent of men were confident they understood what their insurance coverage includes, compared to just 50 percent of women. Following the questions, men dropped to a 50 percent level and women to a 33 percent mark.

Coverage Checkup

Allstate developed its Good Hands® Coverage Checkup to help consumers review their current auto insurance policy limits and identify where they may need more coverage or less. An invaluable checklist the company's agents can provide-the checkup is free for all consumers, regardless of their insurance carrier-takes just 15 minutes, can help uncover gaps in coverage limits that could expose a consumer to financial risk and points out available discounts and savings.

Understand How Auto Insurance Rates Are Set Auto Insurance Shopping:

If you're shopping around for auto insurance it's important to know how insurance companies set their rates. Many factors are at play, so here are some useful tips from the Financial Services Commission of Ontario (FSCO), the regulator of the auto insurance industry in Ontario, to keep your rates as low as possible.

The auto insurance rate you are charged will depend upon:

• The type of vehicleyou drive. Auto insurance companies
evaluate vehicles based on their makes and models, according to their claims experience. Vehicles with lower costs for repairs, lower rates of injury, and lower incidences of accident and theft, will receive lower rates.

• Your driving record, which includes your years of driving experience, past at-fault accidents, completed training courses, and convictions such as speeding or impaired driving.

• Driving routine and frequency. The more time you spend on the road, the higher the chances of becoming involved in an auto accident.

• Where you live. If you live in a busy urban area, there is greater risk for accidents and theft, thus higher rates are charged.

• Your age. Costs are generally lower for drivers 25 years of age and older.

• The amount of coverage you purchase. Your insurance rates will be higher if you purchase additional protection beyond what is mandatory, such as the optional collision coverage, which protects you for damage to your vehicle, regardless of who caused the accident.

• The deductible, which is the portion of a loss that you are required to pay. Your deductible can vary depending on the type of coverage you purchase and the percentage of fault you are assigned in the event of an auto accident. There are deductibles for direct compensation-property damage, collision or upset, comprehensive, all perils, and specified perils coverage. If you opt for a higher deductible, your rates will likely be lower.

• The insurance company you choose. It's important to shop around because financial factors unique to each insurance company will influence your rates. Insurance works according to a "pooling" concept. Your rates are based on the claims experience of the entire group. Some insurance companies have claims that are much higher than others. This results in some insurance companies setting higher rates than others for the same type of insurance coverage.

Factors that cannot affect insurance rates

Under Ontario law, insurance companies cannot use certain criteria to set your auto insurance rates, such as: credit history or rating, past bankruptcy, income and employment status, debts, whether you rent or own a home and not-at-fault accidents.

Your car insurance claim doesn't have to be a hassle. Learn how Progressive car insurer can handle your insurance claim quickly with it's simple process.


(NAPSI)-An accident can take seconds to occur, but if your car is damaged, managing the repair process can take days. From reporting the claim and getting a rental car to choosing a repair shop, it's a lot of work and really, who has the time?

Fortunately, drivers with a claim have other options. For example, leading car insurer Progressive offers its customers a concierge level of claims service that takes care of the entire process from beginning to end.

Here's how the process works:

• Make an appointment at your convenience to drop off your car at a Progressive concierge service center. In around 15 minutes, an expert claims representative will check you in, look over the damages with you and start your claim. If you'd like, a rental car will be waiting for you (policy coverage varies).

• When you drive off, the claims representative prepares your repair estimate and sends your car to an auto body shop that has met Progressive's strict quality requirements.

• The Progressive claims representative will keep you updated throughout the process.

• When the work is finished, the vehicle is returned to the service center where your representative inspects the quality of repairs.

• Once satisfied with the repairs, the service center calls you to schedule a pickup. When you pick up your car, the claims representative will go over the repairs with you.The repairs are guaranteed by both Progressive and the body shop for as long as you own or lease the vehicle.

This optional concierge service is available at no charge to Progressive customers and anyone involved in a claim with a Progressive customer. There are 54 Progressive service centers countrywide.

For more information, visit www.progressive.com.

An accident can take seconds to occur, but if your car is damaged, managing the repair process can take days.