The CNN/Money article titled: “Car insurance: Cheap to cover - Insurance can add a lot to the cost of owning a car, but you don’t have to drive a snoozer to save” gives some good advice when looking to save money on car insurance.

Insurance costs can vary widely based on the car that you drive. Usually the new the vehicle and the more expensive it is, the more your insurance will cost. But CNN/Money says “the good news is that you don’t have to buy a boring minivan to save money. ” They then give some ways to keep your insurance costs down.

First and foremost, one of the most significant predictors of how much you will have to pay is YOU (and people like you):

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The New York state based Times-Heral Record reports that 11 people were charged in stolen-car ring. Seems they conspired to have their own cars stolen. The cars were then sold and an insurance claim was filed - what better way to get the most value for your car! Not!

Newburgh – A 24-year-old suburban man was the brains behind a stolen-car ring that grabbed 19 vehicles in recent months and filed $166,000 in false insurance claims, the state attorney general’s office says.

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The Top Ten Insurance Myths You Need to Know! on About.com is a good start for examining your current insurance coverages. They give a paragraph or two on each item with links for more details.

• Myth #1: Hey, Your Paying the Premiums…Insurance Should be Bought and Used for Every Accident and Disaster.
• Myth #2: If I am Alive, I must need Life Insurance!
• Myth #3: I’m the Breadwinner in the Home, So Only I Need Life Insurance.
• Myth #4: Whole and Universal Life are the Best Life Insurance Choices Since I Can Get My Money Back.
• Myth #5: Flood Insurance is Only for People Who Live in a High Risk Area.
• Myth #6: My Son Uses the Car for Delivering the Newspaper and His Pizza Delivery Job. He’s Not Self-Employed So Our Auto Insurance Will Cover Any Accidents.
• Myth#7: I Don’t Need Disability Insurance…If I Become Disabled Social Security Will Take Care of Me.
• Myth #8: If I Need to Stay in a Nursing Home When I am Older, The Government Will Pick Up the Bill.
• Myth #9: Umbrella Insurance Coverage is Just for Rich People.
• Myth #10: People Who Decide not to Purchase Health Insurance Don’t Effect Others.

Myth’s #1 and #6 are the ones I run into the most since I primarily deal with auto insurance. People feel that every scratch and ding should be turned in and then wonder why their rates are going up. #6 is the one that worries me the most with clients. You see the pizza guy driving around with that pizza sign probably has no insurance - even if he has insurance. If he does not have a ‘business’ policy - then his personal auto policy may not cover him while delivering pizza.

The problem gets real interesting with newspaper delivery. I swear no one delivers papers on foot or by bike any more. Mom gets up and drives the poor kids around the neighborhood. Guess what. That is business use. Bleary eyed and un-caffinated you hit something? Guess what. No coverage. Unless you lie. Then it is fraud.

CBC News reports that the province of Newfoundland plans to ban the use of age, gender, and marital status in determining auto insurance rates by August 2005.

The province’s Government Services Minister Dianne Whalen announced the changes on Thursday, saying they could save young drivers up to 46 per cent a year on insurance fees.

“It isn’t fair: 85 per cent of young drivers who do not have accidents have to pay huge premiums for the 15 per cent who do,” she said.

From the article it appears that there will be one base rate for everyone with the only thing that would raise your rates is your driving record. At first glance this might sound good; especially if you are under 25 or a parent paying insurance for your child. What is not mentioned is that the rates for all of the ‘low risk’ drivers must now go up.

Do you want to save money on your auto insurance? Why? It is not fair for you to find a company that only covers good drivers. You should help out all those bad drivers and get your insurance at a high risk company.

Or better yet - lets do away with age and gender for life insurance! Why not! Its not fair that an 80 year old has to pay 3 or 4 times as much for life insurance as a 30 year old.