People often ask us how car insurance companies determine what rates to charge. (Well, no they don't. But we think it's important to clear up any confusion.) Many factors determine what premium rate you see when you ask for quotes. A common misconception is that rates are set by law and can't be changed. Although the methods each auto insurance company uses when setting rates are regulated by state laws, the rates themselves are not set by the state. This fact means that there will be different rates for each company. Once you understand more, you'll see why comparing rates from different companies can save you money.

How is my car insurance rate set?
Let's look at what happens when you submit an application for car insurance. First, you are sorted into an individualized group based on each piece of information in your application, as well as other sources. Once your customized group has been determined, the insurance company calls up the pricing information for that group. Finally, any discounts you qualify for are subtracted from the price, and your quote is returned. The entire process is completed by sophisticated software behind the scenes, based on information you enter online or an agent types into a computer.
Why do insurance companies have such different rates?
Because each company has many different small groups and different prices for those groups, rates can vary considerably from one car insurance company to the next. Each company has its own set of claim payments and expenses, and they must set rates based on that information.

Health insurance costs keep rising, but health care coverage provides essential financial protection for your family. You need coverage to avoid medical costs you can't afford, but you don't want to pay for coverage you don't need. That's why it's so important to compare health insurance quotes from multiple companies. You can get the family health insurance you need at a competitive price.

Many customers research their health insurance options online and then call to speak with a licensed agent. Because you can customize your health insurance search with Insurance.com, you get the health insurance quote you want and the coverage your family needs.
Let there be no doubt: health care reform cannot wait, it must not wait, and it will not wait another year."

President Obama made this bold promise to hopeful Americans in his recent address to Congress. Few listeners debate the importance of health care, but providing quality affordable health care for every American will clearly challenge Democrats and Republicans to work together to meet this goal.

As unemployment rises, even fewer Americans will have health insurance through an employer. And, rising medical costs are forcing small and large businesses to reduce coverage, increase co-pays and deductibles and raise the amount that employees must pay each month. Some small business owners have even converted traditional health insurance plans to high deductible plans.

Insurance.com offers these tips for evaluating your health care options and saving money on your medical bills.

My employer offers an HMO and a PPO. How do I decide?
Both provide excellent care, but you may want to choose an HMO if its network of doctors and hospitals matches your needs. Health insurance with a Health Maintenance Organization (HMO) is generally less expensive. You're required to select an HMO physician to be your primary health care provider. This doctor will coordinate all of your medical care, including referrals to specialists within your HMO network. If you seek treatment from a non-network physician, you will generally pay most of the cost yourself.

A Preferred Provider Organization (PPO) is more flexible than an HMO plan, but it still operates with a list of physicians and hospitals that are "within the PPO network." You may visit an out-of-network provider, but you will pay the difference between the PPO network and out-of-network prices. Both plans usually offer a prescription drug benefit, as well. Some companies are offering options that allow you to combine features of both HMO and PPO plans.

I can't afford full health insurance, but I want coverage for major emergencies.
A high deductible health insurance plan or catastrophic health insurance offer coverage for major illnesses or accidents. For example, a plan with a $5,000 deductible requires you to pay all of your medical expenses up to $5,000 before your insurer begins to pay. If you choose a high deductible plan, try to save a small amount of money each month in a Health Savings Account (HSA) so that you're not overwhelmed by routine medical expenses.

I have health insurance, but it seems like I'm always paying for something.
Sad but true. You may owe a co-payment for doctor's visits or a trip to the ER. Usually, this is a flat fee, but it can get expensive if you don't stay within your plan network.

Secondly, payment for expenses is subject to your annual deductible, which is the amount you pay toward your medical expenses before the insurance company begins to pay claims. Some HMO plans do not have deductibles but do have co-payments.

Lastly, there's co-insurance, which is the percentage of your medical costs that you pay after you reach your annual deductible. 80/20 co-insurance is a common option, and that means that your insurer pays 80% of your bills and you pay 20%—after your deductible. So, anything you can do to reduce your medical bills will help you reduce your out-of-pocket expenses, too.

I don't have health insurance. What can I do?
Almost every hospital has a financial aid office that will evaluate your personal situation and determine your ability to pay for required care. Generally, a hospital will provide sliding scale fees if your income is 400% or less of federal poverty limits and may eliminate bills entirely if your income is 200% or less of federal poverty limits. But hospitals have to make money, too, so they may not publicize these programs or provide much assistance in applying. Be prepared with recent copies of your tax returns and W-2's to prove your need.

Life insurance gives your family protection and peace of mind. It's also fairly inexpensive, especially if you shop around. Insurance.com makes it simple to compare multiple life insurance quotes from top companies. Just enter some basic information to see the discounts and coverage options available from our partners. It's easy to get an online life insurance rate you can afford.

We think you should research and buy life insurance the way you want. When it's time to talk to someone about your life insurance quotes, you can call or have a licensed agent call you. Getting a good deal from a brand-name life insurance company doesn't need to be hard. We love insurance, and we're here to help.

ou can save money on your car insurance. That's the good news. The bad news is that you can't safely save money by slashing your coverages dramatically and dropping damage coverage for your car. Sorry for the reality check, but if anyone tells you to improve your financial situation by calling your auto insurance company and buying a lot less coverage, they simply don't have all the facts.

What? Cheaper is better!
Sometimes, yes. However, you get what you pay for. Everyone wants to save money on their insurance premium, but no one wants to pay out of pocket when the unexpected happens. Car insurance exists because bad things happen. If you reduce your liability coverage and drop uninsured/underinsured motorist coverage, and drop comprehensive and collision or raise the deductibles, who pays when there's an accident? Most likely, you do.

Dropping and reducing auto insurance coverages is a lot like gambling. It's a decision to stake your financial future on the assumption that you are an excellent driver, that everyone you encounter is an excellent (and insured) driver, and that your car will never be damaged or stolen.

But my friend saved a lot by getting the bare minimum.
It's possible to save money if you only get what's required, just like it's possible to win the lottery or predict the stock market. That doesn't make it a good bet. Let's look at why.

Suppose you have an old car that's only worth around $2,000. Your friend tells you he saved $300 a year by dropping collision coverage. You like saving money, so you do the same, but the next week you lose control of your car and hit a utility pole. You were only going 20 MPH, but that's enough to total the car, since repair costs exceed $2,000. You did save $300 on your premium, but you have no car and no coverage. Now you have to find a car that's as reliable as your old one for as little money as possible.

What if you also tried to save money by lowering your liability limits to the state minimum? For example, in Ohio the minimum limit for property damage coverage is $7,500. If you knocked the utility pole over into a storefront, taking out power for the block at the same time, who pays? If it costs $15,000 to repair the pole and replace the store's window and display, you can bet the extra $7,500 will come out of your pocket somehow. If you have assets, those will be used to provide payment, and if you don't have assets, you'll usually be asked to work out a payment plan. Now you've actually cost yourself money instead of saving it, and this accident didn't even involve any injuries.

So how can I save money?
We did mention that there was good news. Although you don't want to eliminate the protection you have with uninsured/underinsured motorist and Comp & Collision coverages unless there's no choice, you still have options. First, make sure you're getting all of the discounts you're eligible for. Next, compare auto insurance rates from other companies to see if you're paying more than you have to for the same coverage. Rates can vary considerably from one company to the next, so investing a little time in comparing quotes might pay big dividends in savings.

What's your quick advice?
Since you asked, here are some quick tips for sorting out the good advice from the bad.

* Don't slash your policy limits. If you want to protect your assets – now and in the future – it's too risky to cut your limits to state minimums.
* Insure your car against damage, even if you have to increase the deductibles. Unless you can afford to pay cash to replace your car, try to keep it insured for comprehensive and collision. Comprehensive in particular is relatively inexpensive, especially if you have an older car model. No matter how much someone else would pay for your car, in this economy it's probably priceless to you!
* Always buy Uninsured/Underinsured Motorists coverage. With more uninsured drivers on the road, UM/UIM coverage gives you low-cost protection from unnecessary risk.

Why do you need to buy Uninsured/Underinsured (UM/UIM) motorist coverage? Because the number of uninsured drivers is rising. The Insurance Research Council estimates that almost 14% of drivers don't have auto insurance – and by 2010 it could reach 16%. Forget swine flu. The real epidemic is people driving without auto insurance!

We get questions every day from people asking why they need UM/UIM coverage and how they should handle uninsured motorist claims. For a quick overview of the basics, jump to the bottom. For the answers you need, keep reading.

1. Does UM/UIM cover property damage in hit-and-run accidents?
Almost never. Accidents where the other driver can't be identified are handled under your own Collision coverage. This includes accidents where a hit-and-run driver damages your car while it's parked. It may not seem fair to have to pay for something that wasn't your fault, but it keeps auto insurance rates lower for the majority of uninsured accidents.

2. Should I buy UM/UIM if I already have health insurance?
Absolutely! Always buy Uninsured/Underinsured motorist coverage, because it pays for many things that other types of insurance usually don't, such as lost wages and pain and suffering. So, it's not really a waste to purchase it even if you think you're covered otherwise. Plus, if you have a high deductible for your health insurance, UM/UIM can cover your deductible.

3. Why should I pay for auto insurance that basically covers other drivers? Doesn't UM/UIM encourage people to drive without insurance?
UM/UIM coverage protects you and your family and passengers, not the other driver. It's true that the person who hit you should have purchased the coverage, but having UM coverage allows you to quickly receive payment for your claim, saving you the time and expense of suing the other driver. Rest assured your insurance company will pursue the guilty driver to recover the money they had to pay.

4. Will I get paid if the other driver denies fault?
The other driver doesn't need to admit fault. Your auto insurance company (or a court) will determine fault and handle your UM/UIM claim based on their investigation of the facts. If they find the uninsured driver at fault, then you will be entitled to payment up to the limits of UM/UIM coverage you purchased.

5. How much money can I collect under my UM/UIM coverage?
You can never collect more than your policy's UM/UIM limit for claims under this coverage. Most people buy UM/UIM coverage in an amount that matches their Bodily Injury Liability (BI) limits, but you can choose to buy less UM/UIM coverage if you wish. For example, if you buy 100/300 BI limits (100 per person/300 per accident), but choose to buy 50/100 limits for UM/UIM, you can collect up to $50,000 per person in an accident with an uninsured driver, up to a maximum of $100,000 for all drivers injured in the same accident.

For UIM coverage, the total amount you can collect from both the other driver's insurance company and your own is the number shown on your policy – in this example 50/100. You don't normally add that to what you get from the other driver – although you can in a few states.

6. Can I make a claim on the other driver's UM/UIM coverage?
No. UM/UIM coverage is something you buy to protect yourself – and your property, if you purchase UMPD coverage. You're essentially protecting yourself from drivers who don't have auto insurance or don't have enough to pay for accidents they cause.

7. Should I get UMPD coverage instead of Collision coverage? Which is better?
UMPD is only available in certain states, so unless it was offered to you when you bought your policy, it's probably not an option. And, if you're making a loan or lease payment on your car, you'll be required to buy Collision coverage, until it's paid for. After that, you can choose – knowing that UMPD coverage will only pay for damage caused by an uninsured driver you can identify.

So, if you have to pick one, remember that Collision coverage will pay for all situations involving an accidental Collision. If opting for Collision coverage simply won't work financially, UMPD can serve as a last resort. In a limited number of states and situations, you can purchase both, and we recommend you do so, if that option is available.

8. Does UMPD coverage pay for car damage from hitting a car part lying in the road?
Unfortunately, it doesn't, unless you can prove that it came from a specific uninsured motorist. Remember that the coverage you've purchased is Uninsured Motorists Property Damage coverage – so you must find the motorist who's at fault before you can get paid.

Uninsured Motorists Coverage Basics
Uninsured/Underinsured motorists coverage (UM/UIM) refers to two separate but similar coverages: UM (Uninsured) and UIM (Underinsured).

1. UM: This coverage can be divided into Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD). Both are comparatively cheap coverages.

* UMBI can pay for injuries to people protected under your policy – including family members in other cars and passengers in your insured cars – resulting from a car accident caused by an uninsured driver. A driver is uninsured if: they have no legal auto insurance, they have insurance but their company can't or won't pay or they are a hit-and-run driver.
* UMPD can pay for damage to your car by an uninsured driver you can identify, but almost never a hit-and-run driver. If you're lucky enough to have the option of purchasing UMPD and Collision coverage, UMPD usually pays your Collision deductible only.