But if you reside in Louisiana, the news isn’t so fortunate — the state known for great jazz, food and football has the distinction as the most expensive state when it comes to coverage. A policy came with an average price of $1,270 in 2009.

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What did the typical motorist pay for car insurance on a nationwide basis? About $901 a year.

These numbers come from the “Auto Insurance Database Report 2008/2009,” just released by the National Association of Insurance Commissioners (NAIC). The report, representing the most recent data collected by the association, is considered the authority in such pricing and provides “necessary information and analysis to insurance regulators, consumers and policymakers” from coast to coast, according to the NAIC.

Here are the 10 most expensive places for coverage, based on the NAIC’s 2009 and 2008 figures:

1. Louisiana ($1,270 in 2009 and $1,274 in 2008)
2. District of Columbia ($1,265 and $1,263)
3. New Jersey ($1,218 and $1,198)
4. New York ($1,185 and $1,172)
5. Rhode Island ($1,118 and $1,138)
6. Delaware ($1,106 and $1,091)
7. Florida ($1,088 and $1,130)
8. Alaska ($1,073 and $1,083)
9. Nevada ($1,073 and $1,099)
10. Connecticut ($1,050 and $1,046)

Leaders in offering affordable car insurance

The 10 least expensive states, according to the NAIC’s 2009 and 2008 statistics, are:

1. Iowa ($631 in 2009 and $617 in 2008)
2. North Dakota ($650 and $644)
3. South Dakota ($651 both years)
4. Wisconsin ($653 and $641)
5. Idaho ($666 and $674)
6. Maine ($683 and $687)
7. Nebraska ($692 and $677)
8. Ohio ($695 and $693)
9. Indiana ($711 and $699)
10. North Carolina ($719 and $705)

Here’s what motorists in a few other states paid in 2009:

• California ($894)
• Michigan ($1,043)
• Texas ($1,022)
• Georgia ($919)
• Pennsylvania ($904)
• Oregon ($807)

The good news, says the NAIC, is that national average rate dropped slightly from an average of $955 for each driver in 2005 to $901 in 2009. The typical policy was $903 in 2008 and $914 in 2007.

Many factors in play when comparing car insurance by state

Vanessa Sink, communications specialist for the NAIC, says it’s a challenge to compare auto insurance rates by state because each state has its own consumer requirements for buying policies, including minimum limits for liability and other coverage. Other factors, she points out, are benefit limits, underwriting costs, accident rates, theft figures and auto repair costs.

“Remember that insurance is regulated at the state level and each state makes its own regulations about what is considered (adequate) coverage,” Sink says. “Therefore, insurance policies can vary greatly from state to state.”

A small decline in stolen cars

The report also notes that auto thefts fell nationally. In 2006, there were 4.37 reported thefts for every 1,000 registered vehicles. In 2008, there were 3.2 thefts per 1,000.

Here are the theft rates in a handful of major states, according to the NAIC:

• New York (1.97 in 2008 and 2.44 in 2006)
• California (4.90 and 6.47)
• Texas (4.20 and 5.25)
• Florida (3.05 and 4.34)
• District of Columbia (24.72 and 34.47)
• Connecticut (2.42 and 2.94)
• Arizona (5.94 and 11.26)
• Washington (3.96 and 6.39)
• Nebraska (1.98 and 2.94)
• Michigan (3.70 and 5.02)

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Here are 10 tips from the “Guide to Navigating the Auto Claims Maze:  Getting the Settlement You Deserve” by Mark Romano, director of insurance claims projects at the Consumer Federation of America:

1. Evaluate and cooperate when filing a claim with your own car insurance company

After an accident, check your policy to review the terms. You need to have collision coverage to pay for damage to your own car. Cooperate by providing information and making your car available for damage appraisal.

2. Reporting a loss:  do it right away, get the details

In many cases, you call in your claim to your insurer’s claims call center. When doing so, get the name of the adjuster who is being assigned to your claim (if the phone representative has that information), the claim number, the phone number of the claim office that will be handling your claim and a timeframe for when you can expect to hear back from someone.

3. When the adjuster calls: your choice of repair shops

Typically, you’ll be asked to make a statement about the accident that will be recorded. From there, you should get detailed information about how the insurer will estimate losses and conduct repairs on your car. Find out if the company will send an appraiser to your home to assess damage or if you are required to bring your car somewhere for this process. 

Remember that you are not under contractual obligation to have any particular business do your car repairs. Should your auto insurance company recommend a garage, it’s your choice whether to bring your car there or not. “Your insurance company may recommend that you take your car to a particular repair facility. That is because they have established a relationship with that facility that will likely save them money,” says the report.

4.  Document the process

Document all of your efforts to get problems resolved by keeping a record of every call you make or receive, including who you talk to, when the calls happen and what you were told during these conversations.

5. If customer service is lacking, call the big boss, file a complaint or lawyer up

If you are not getting satisfactory service during the claims process, the report recommends skipping the adjuster’s immediate supervisor and contacting more senior-level executives who oversee the entire office – managers, directors or regional vice presidents.

“Assuming that your concern is justified, supervisors at this level are often very interested in customer service and extremely motivated to resolve problems before they escalate,” as customer service is typically a component of their bonus structure, says the report.  

Another option is to contact the vice president or director of claims in the home office of the car insurance company.

The report also recommends filing a complaint with your state insurance department, which can typically be done online. Although the department cannot order a company to take any action, you may at least get answers to your questions. If you feel strongly that your car insurance company failed to meet its obligations under the terms of your insurance policy, you can always contact a lawyer who specializes in insurance litigation.

6. If you file with the other driver’s car insurance company, beware of pitfalls

For those who file a claim with the insurer of the driver he or she believes to be at fault, there are some potential pitfalls. The other insurer is not contractually obligated to assist you, so you may not get much information during the process.

7. Don’t agree to recorded conversation with other driver’s car insurance company

If you decide to move forward with a claim through the other driver’s insurer, you are not obligated to agree to a recorded statement with the other driver’s company. In fact, the CFA recommends that you decline to do so if asked.  ”They could then attempt to distort your statement and use your own words against you in an effort to reduce the amount they offer you for either your car repair or an injury. However, you should certainly cooperate within reason; explain what occurred, what are the damages to your vehicle and describe any injuries that you may have,” says the report.

8. Don’t give out your Social Security number; instead, submit your own medical info when filing injury claim

You should also not give the other driver’s insurance adjuster your Social Security number, which could be entered into a national database insurers share to determine injury claim histories, says the report.

Also, the CFA advises that you obtain medical bills and records related to your auto accident and submit them to the other driver’s insurance company. This allows you to remove your Social Security number and any medical information not related to the accident.

9. Ask about third-party review of your medical information

Sometimes insurers have outside firms evaluate your medical information once you have provided it. To increase your chance of a fair assessment, the CFA advises that you tell the other driver’s insurer that you will not allow it to share your medical information with any third-party consulting firms. Likewise, ask if the company will use injury evaluation software programs to assess your medical information, and if so, ask to receive a copy of any resulting reports.

10. Do not sign a ‘release to all claims’ until you have received satisfactory care

Finally, do not agree to release all claims against the insurance company if you are still under treatment or your condition is unresolved, says the report.  “You should also not agree to this restriction if you feel pressured by the adjuster to make a decision too quickly, or feel that the amount of reimbursement the adjuster is offering is not reasonable. You should, however, seek legal advice promptly in such circumstances. There are legal limits that vary by state that restrict the time you have to either settle your claim or file a lawsuit.”

However, the type of insurance we most often are referring to in the modern world however is based on a money economy. The roots of modern insurance can be traced back as early as 2100 BC when Chinese and Babylonian traders moved their goods via caravan and by sea. Traders would pay an extra fee to their lender for the lender’s promise to cancel the loan should the goods be stolen or destroyed in a capsize.

Thousands of years later the inhabitants of Rhodes (A Greek Island), invented and put into use the concept of ‘general average’. Merchants who were shipping their goods would all pay into a joint premium which would be used to reimburse any merchant who lost their goods due to a storm or ship sinking.

In 600 AD, the Greeks and Romans invented the beginnings of health and life insurance. ‘Benevolent Societies’ were formed which helped financially care for families and cover funeral expenses upon the death or serious illness of a society member. A similar type of insurance existed later on in England and was based on the membership to ‘Friendly Societies’, in which members donated funds of money to a joint sum of money that would be disbursed and used when a member experienced a ‘covered loss’.

Near the end of the 17th century, London became the hub for marine trade and the high demand for marine insurance became glaringly apparent. In 1688, Mr. Edward Lloyd opened a modest coffee house in London. Little did he know that his meek beginnings in the coffee business would grow to be something entirely different. Becoming a popular meeting spot for ship owners, merchants, captains and those wishing to insure ships, Lloyd’s Coffee House soon became known as the place to go for marine insurance. Appropriately, in 1771 Lloyd’s Coffee House ceased the sale of coffee and became Lloyd’s Subscription Room where 79 underwriters and brokers started the First Committee of Lloyd’s. Today, Lloyd’s is the leading specialty insurance company with 300 years of experience insuring some of the most complex risks including oil rigs, airlines, celebrity body parts and the Olympic games.

London can also be attributed as the birthplace of building insurance where, in 1666 the Great Fire of London took 13,200 home and businesses and 87 churches. You’ve likely heard of this famous fire in the childhood song, ‘The London Bridge is Burning Down’. In the months after this disaster, Nicholas Barbon opened an office to insurance buildings in London. His company became known as ‘The Fire Office’ where in 1680 where he insured brick and frame homes.

In 1732, the first United States fire insurance company started in Charles Town (modern day Charleston), South Carolina. Benjamin Franklin helped to enforce the practice of insurance and in 1752 founded the ‘Philadelphia Contributionship for the Insurance of Houses from Loss of Fire’. This company was the first company to move towards fire prevention by warning of fire hazards, promoting fire safety and by refusing to insure wooden houses and other high-risk buildings.

In modern day, insurance companies exist all over the United States providing protection from financial losses from all sorts of perils and disasters. Travelers Companies, trusted partner of HomeInsurance.com, is known for writing the first auto insurance policy in 1897. With over 150 years in the insurance business, Travelers has become a trusted source for insurance in the United States.

Currently in the United States, regulation of the insurance industry is handled at the state level, by individual state insurance departments. State insurance commissioners mostly operate individually based on their state’s insurance needs but have also been known to work in joint efforts through a National Association of Insurance Commissioners.

With insurance rates steadily increasing in recent years since September 11, Hurricane Katrina, and other disasters, it becomes more important for the insured to find dependable coverage and optimal insurance rates. Insurance shopping companies such as HomeInsurance.com, have come to the forefront of insurance shopping by offering property owners multiple, competitive quotes. Giving homeowners an edge in the quoting process, home insurance shopping companies level the playing field and give property owners a powerful stance in the insurance industry.

The National Transportation Safety Board (NTSB), citing safety issues, is recommending  a countrywide ban on the use of cellphones and text messaging devices while driving.

While the NTSB is only an advisory board and doesn’t have the authority to create laws, it does have a lot of pull simply because it’s an arm of the federal government. The government could withhold funding from states that don’t adopt the measure.

If the NTSB recommendation did become law nationwide, it would be illegal to talk on a phone while driving even if you used accessories that kept  the device out of your hands. This would have a significant impact on all drivers, as no state currently bans all cellphone use – both hand-held and hands-free – for all drivers, according to the Governor’s Highway Safety Association (GHSA).

However, Insurance Institute for Highway Safety (IIHS) data issued last year suggests that bans may not be the best way to address the issue.

“Neither texting bans nor bans on hand-held phone use have reduced crash risk,” Adrian Lund, president of both the IIHS and the affiliated Highway Loss Data Institute (HLDI), says in a report issued last year.

Texting bans might even increase the risk associated with texting for drivers who continue to do so despite the laws, Lund says in the report.

“Drivers might have responded to the laws prohibiting texting by moving their phones down and out of sight when they texted, in recognition that what they were doing was illegal. This could exacerbate the risk of texting and drive crash rates up instead of down. It’s a perverse result of laws intended to reduce risk,” according to the September 2010 IIHS report.

Current  driver phone and texting laws differ in scope by state

Right now, state laws with varying degrees of reach govern the use of cellphones and texting  while driving. For instance, while no state bans all cellphone use while driving, 30 states  prohibit it for novice drivers, and 19 do so for bus drivers, according to the GHSA.  Nine states, however, prohibit all drivers from using hand-held cellphones while driving, but allow hands-free use.

Texting also has its own laws in each state. Thirty-five states ban text messaging for all drivers, according to the GHSA.  States such as Maine, New Hampshire and Utah treat cellphone use and texting as part of a larger distracted-driving issue. Nine states, including Florida, have no law against texting while operating a motor vehicle.

Because each state’s laws differ when it comes to cellphone use and texting while driving, the impact on your car insurance rates depends on where you live, your driving record, whether the citation is considered a moving violation and if you get points for the infraction. For instance, in New York, cellphone and texting violations each tack on three points to your record. By contrast, California does not issue points for violating cellphone laws, according to the state’s  DMV website.

Car insurance requirements for U.S. drivers visiting Mexico can be difficult to understand if you’re not familiar with them, says Jim Labelle, president of International Insurance Group (IIG), a U.S. company based in Flagstaff, Ariz., that sells auto insurance for Mexico-based insurers.

Making matters more complicated, says Labelle, are changes made in June to the regulations The changes come at a time when about 3 million people drive from the U.S. into the interior of Mexico each year, says Labelle.

Anyone driving south of the border into Mexico should understand the car insurance implications. Visitors to Mexico who want to learn more about regulations pertaining to driving in Mexico can visit the U.S. Department of State website and the Mexican Customs website. But here are the basics:

1. Obtain Mexican insurance

U.S. auto insurance policies have no effect in Mexico, says Labelle. Car insurance from a company based in Mexico is not required for driving in border towns, but then you are driving at your own risk since your U.S. policy won’t cover you should something happen.

When driving beyond 20 miles outside of border towns, the Mexican government requires drivers to have an insurance policy from a company based in Mexico for all vehicles, whether rental cars or privately owned, Labelle says. Companies such as Labelle’s sell these policies to Americans.

The average policy of this type is for 10 days and costs $150 for a car valued at $25,000. Rates vary by the value of the car, among other factors.

Payments for car damages will be the same as they would be in the United States, Labelle says.

2. Get a permit

Mexico does not require import permits for cars driven near border towns. But permits are required if you plan to drive beyond about 20 into the interior.

To get the permit, drivers must submit evidence of citizenship, a title for the vehicle, a vehicle registration certificate and a driver’s license.

They also must pay a $44 processing fee to either a Banjercito (Mexican Army Bank) branch at a Mexican Customs office at the port of entry, or at a Mexican consulate in the United States. Before regulations, changed in June, this fee ranged from $27 to $45, depending on where it was paid. Now, it’s a standardized fee of $44.

Mexican law also requires paying a deposit of $200 to $400 at a Banjercito office. The amount of the deposit depends on the make, model and year of the vehicle. It can be paid with a credit card or cash, and is refunded at a Mexican Customs office before leaving the country. Prior to the June changes, you only needed to pay the deposit if you also paid the import permit processing fee in cash. Now, everyone who pays the processing fee must pay the deposit as well, says Alejandro Gonzalez Davila, chief executive officer at ABASeguros, a Mexico-based insurance company that does business with IIG.

The U.S. State Department reminds citizens that the permits can’t be obtained at checkpoints inside Mexico, and should be obtained before entering the country or at the Banjercito branch at the port of entry.

3. Get permission

If you don’t own your car outright and instead have a car loan–in other words, the bank owns it–you’ll need to prove to your finance company that you have Mexican auto insurance by providing documentation before you drive into the country. The rules also apply if you have leased your vehicle.

You will also need to get a permission letter from the lien holder allowing the car to be taken outside of Mexico’s commercial-free zones.

The top five cities are:

1. San Diego
2. Los Angeles
3. Indianapolis
4. Jacksonville, Fla.
5. San Francisco

However, having a high percentage of DUI offenders does not necessarily mean a city has more boozers than other cities. A city may rank near the top of the DUI citation list for a number of reasons, including a lack of public transportation, or a police force that’s good at doings its job – or both.

Peter Moraga, spokesman for the Insurance Information Network of California, speculates that California leads in DUI citations because it’s a “car-centric state,” and law enforcement officials are “very attuned to the danger of driving under the influence.”

The issue is “on their radar constantly, especially during the holidays,” Moraga says.

For the nation as a whole in 2009, about one-third of all accident fatalities–or nearly 11,000 people–occurred in crashes that involved a driver with a blood alcohol level of at least 0.08 percent, according to the National Highway Traffic Safety Administration.

Nationwide, there were 1.4 million DUI arrests in 2010, according to the FBI.

This is the second year in a row San Diego led the list in our study. For 2009-2010, other California cities that made the list included San Jose (second) and Los Angeles and San Francisco (seventh and eighth, respectively). This year, San Jose dropped out of the top five and now sits in seventh place.

Meanwhile, Indianapolis ranked sixth last year, while Jacksonville, Fla., ranked 10^th.

Drivers gone wild

One way law enforcement officers track the pattern of DUIs is to monitor hit-and-run accidents between midnight and 3 a.m. Impaired drivers heading home after a night of partying typically cause such accidents, says Officer Mark McCullough, who coordinates DUI checkpoints for the San Diego Police Department’s traffic unit.

Part of the problem, McCullough says, is that California has a combination of tourists, visiting business people, military members and young drivers that can make for a hazardous cocktail of factors contributing to higher rates of drunken driving.

Roads are busy, and for people just visiting the state, it’s not uncommon that “when you’re out of your element, your inhibitions run wild,” he says.

San Diego police are able to set up DUI checkpoints thanks to funding from the California Office of Traffic Safety and the University of California, Berkeley.

Receiving a DUI “is probably one of the worst things you can have” on your record, Moraga says. In California, it can remain on your driving record for up to 10 years, which can have a major impact on your auto insurance rates.

In general, once your insurance company sees that you have a DUI on your driving record, you will see an increase in your auto insurance rates. “And it’s not just a little hike in your rates; expect your premium amount to increase 30 [percent] to 100 percent or even more,” says Penny Gusner, a consumer analyst who covers the auto insurance industry.

You also could have a tough time finding auto insurance in the future, particularly if you rack up multiple DUIs, says Lynne McChristian, Florida’s representative for the Insurance Information Institute.

Some insurers only write car insurance policies for preferred motorists with good driving records, she says. For the worst of the worst drivers, each state has its own system for ensuring that auto insurance is available, McChristian says. Those drivers are put into an “assigned risk pool.” All auto insurers doing business in the state have to insure a portion of the pool. Rates are generally high.

DUI penalties: it’s more than high car insurance rates

Across the nation, jail time and fines are typical punishments for a DUI, and some states impose even harsher penalties. Here are examples of what happens in some states if you’re busted for driving while over the 0.08 percent limit:

• In California, your license can be suspended for six months, and you may be required to install an ignition interlock device that prevents you from starting your vehicle if your blood alcohol content is above a certain level.
• In Indiana, your license may be suspended for up to two years, and you could receive up to two years of probation.
• If you get a DUI in Iowa, you may be required to undergo substance abuse treatment and pay restitution to the victim for damages caused by the incident.
• A DUI in New Jersey can mean you have to pay an extra $1,000 a year on your auto insurancefor three years.
• In New York, if you have a passenger under the age of 16 in your vehicle and you’re convicted of DUI, you can face up to a $5,000 fine and four years behind bars.
• A DUI conviction in North Carolina can mean having your license revoked for a year, and once it’s reinstated, your blood alcohol level must be 0.04 percent or below, rather than the standard 0.08 percent.

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Deaths from fires and burns are the third-leading cause of fatal home injuries in America, according to the Centers for Disease Control and Prevention.  In 2010, someone died in a fire in the United States every 169 minutes, and someone was injured every 30 minutes.

The good news is that many home fires are preventable.

Employing basic fire safety measures may not only save your life, it can also save you money on homeowners insurance. Installing smoke detectors could net you a 5 percent cut on your homeowners insurance costs, and having fire extinguishers on every floor may give you another 5 percent reduction.

Ask your insurer about bigger discounts, too.  For instance, installing fire-resistant siding on your home, such as metal or fiber-cement shingles and clapboards, could slash your home insurance premiums by up to 20 percent, according to experts at The Family Handyman magazine.

Double-check your insurance policy to learn your exact benefits. Many insurance policies offer “replacement” coverage for the house itself in the event of fire, but check to see whether you have “replacement” coverage or  “actual cash value” coverage for the items lost in a fire. Also, find out whether you have “loss of use” coverage, which reimburses you for living expenses incurred while your home is inhabitable.

Home inspectors who spend their days scouring every nook and cranny of various types of homes nationwide say the following hazards can create a firetrap in your home. They also suggest tips for reducing your level of risk.  

1. An overstuffed attic full of boxes

Frank Schulte-Ladbeck is a licensed home inspector and independent consultant in Houston. He says one major problem in his region is people stuffing their attics with far too many goods. “I was in one attic where I could hardly move because the person had put so many boxes everywhere,” Schulte-Ladbeck says.

Adding to the problem, there was a water heater in the attic and a furnace for the air conditioning system too. Such arrangements are common in places like Texas, Schulte-Ladbeck says, where temperatures even in early November can climb into the 80s. But if the heating system ever ignited for any reason, “all of those boxes and materials in the attic just become instant fuel for the fire,” he says.

To reduce this risk, purge unnecessary items from your attic, clearing things away from heating units or other equipment.

2. Problem  windows in basements and bedrooms

Problem windows are another common fire trap Schulte-Ladbeck encounters. He mainly finds these in the basements of  older homes built in the 1960s or earlier If your home has a bedroom in the basement and a fire occurs in the middle of the night and blocks access to an upstairs exit, your only choice would be to get out through a basement window.

“But many basement windows are higher off the ground, inaccessible and too small for people to fit through,” Schulte-Ladbeck says.

Another problem, he says, are windows painted shut or double-paned windows that have a second window on the outside that doesn’t stay open.

In a fire emergency, such windows could prove fatal.

The International Residential Code requires that all bedrooms (including those in basements) have at least one “egress” window. That’s a window large enough to allow people to escape in the event of a fire, or to allow a fully equipped firefighter to enter from the outside.

3. Improperly installed heating equipment

Bill Kibbel is vice president of Tri-County Inspection Company in Pennsylvania. He constantly warns homeowners and prospective homebuyers about dangerous heating equipment in the basements of many homes he inspects.

“The number one issue that’s overlooked all the time is venting of heating equipment,” says Kibbel. “Many times the vent pipe that connects the heating system to the chimney is way too close to combustible materials.” The materials in question are typically wood – such as a floor joist or a wall that’s adjacent to the heating unit.

“If there’s a piece of wood nearby, the constant heating up of that wood can ultimately cause it to ignite,” Kibbel explains. He says the problem is “common” in older buildings.

Another furnace fire hazard: dirty filters. It’s important to regularly check your furnace filter and replace it with a clean one.

“I’d say that 55 percent to 60 percent of older homes I inspect have heating equipment incorrectly installed,” says Kibbel. “Most people aren’t aware of it and unfortunately, heating contractors as a general rule don’t seem to notice it when they’re installing or servicing heating units.”

4. Fireplace hazards

Another common problem, Kibbel says, is the lack of proper floor protection in front of many home fireplaces. Ideally, you should have a stone or brick hearth extension that extends out between 14 and 16 inches into the room, Kibbel recommends.

But a lot of older homes have hearth extensions that span only 8 to 10 inches.

Consequently, many older homes are more susceptible to fire when “popping fires send embers from the fireplace onto the floor, igniting a wood floor or carpeting,” says Kibbel.

The solution: Install an adequately sized hearth extension or extend one that is too small.

5. Faulty smoke alarms and drained batteries

Frank Ross, a certified home inspector and owner and operator of Pillar To Post Professional Home Inspection of Southwest Utah, says an easy way to avoid a disastrous fire scenario is to keep your smoke alarms and batteries functional and up to date.

“Unfortunately, when smoke alarm batteries start chirping at 3 o’clock in the morning, most people just get up and take them out and toss the smoke alarm to the side,” never bothering to replace them, says Ross.

If a smoke alarm is older than 7 to 9 years old, it’s time to get a new one, he adds.