According to the National Insurance Crime Bureau, more cars were stolen on New Year’s Day last year than any other holiday throughout the year, with more than 2,700 thefts reported. Halloween was second with more than 2,300 incidents, while Christmas Day and Thanksgiving had the fewest auto thefts of all of the major holidays in 2009.

The report also found that more cars were stolen during the summer months of June, July and August when weather is warmer and drivers may be tempted to leave their windows open and vulnerable. December and February had the fewest number of auto thefts.

Drivers can prevent many potential thefts and reduce their car insurance premiums by taking preventive steps. A former car thief told Edmunds.com that drivers should try and park in well-lit areas, install car alarms to deter criminals and always lock their doors and windows.  I know it all sounds like common sense but at this time of the year we are so busy.

Allstate has launched a voluntary program that uses a device installed in a car to reward safe and low-mileage Illinois drivers with savings of up to 30 percent.

The auto insurer plans to expand the program, called Drive Wise, to other states as early as the second quarter of 2011.

Other insurers, including Progressive and State Farm, have also begun using gizmos to help track driving, but the industry trend raises some longer-term questions and concerns. Progressive has a program called Snapshot, which is offered in 27 states, including Virginia and Maryland. State Farm offers its Ohio and California customers who have OnStar the opportunity to receive discounts based on mileage. Called Drive Safe & Save, the program was rolled out in those markets in August 2009 and this month, respectively.

Allstate Drive Wise participants get a small, wireless gadget — about the size of a pack of cigarettes — that plugs into the vehicle’s onboard computer through the diagnostic port, usually under the dashboard.

For consumers concerned about Big Brother, Allstate said the device tracks only factors used to calculate a driving score, including mileage, hard or extreme braking, and maximum speed. Speeds of more than 80 mph hurt the score.

Allstate policyholders get an immediate 10 percent discount for enrolling. Later policy periods use a performance rating, in which driving behavior and total mileage determine the discount.

Frederick Lane, author of “American Privacy: The 400-Year History of Our Most Contested Right,” said he sees few problems with Allstate’s program, provided that it’s collecting only the information it says it’s gathering and that the program remains voluntary and offers benefits to drivers.

But the program raises several potential longer-term questions, Lane said.

“In the event of an accident, who has access to this data? Could an attorney ask for it in discovery for a personal injury lawsuit? Could the police subpoena it as part of a criminal investigation? Could any of this information be useful to a government agency?” he wonders.

Allstate said its rates won’t go up based on the behavioral scores, but discounts of up to 30 percent can be earned by drivers with the safest driving and low mileage scores.

On the surface initially, Drive Wise looks harmless enough and will likely benefit lower-mileage drivers and those who exhibit safe driving habits, said Jim Fish, executive director of the National Association of Professional Allstate Agents.

But “there can be no question that Drive Wise will become much more sophisticated, making it possible to track nearly everything a driver does,” Fish said. “Allstate may be claiming that the behavioral ratings will not increase rates, but we believe policyholders with poor ratings” could see their policies canceled.

Fish also envisions the day when such programs probably won’t be voluntary. What do you think? Would you participate in such a program if your insurance company offered it? Are you participating in Progressive’s Snapshot program?  I am a fairly safe driver and if it meant a reduction in insurance costs of 25% or more I would try it out.

All three had pleaded guilty in Bucks County Court to 11 counts including insurance fraud, theft by deception and unlawful use of computers, said Senior Deputy Attorney General Robert LaBar, who prosecuted the case.  Authorities said that in 2005 and 2006, the men used false Pennsylvania addresses or post office box numbers to obtain Pennsylvania insurance cards and vehicle registrations for New York residents, many of them from the Little Haiti section of New York City. The scam cost insurance companies more than $500,000, prosecutors said.

People between the ages of 16-19 have the highest crash rate, and their crash involvement per mile driven is four times that of older drivers.

With all these mind-blowing
statistics, it’s no surprise that car insurance for new drivers is expensive.

New drivers that need auto insurance and parents of teen drivers need to understand that auto insurance for new drivers is expensive. Here are 10 ways to minimize the cost of car insurance for new drivers.

Auto Insurance Tips for New Drivers #1

Auto insurance for new drivers can be reduced in cost by taking drivers’ education course. New drivers can get car insurance discounts for successfully completing various drivers’ education courses.

Auto Insurance Tips for New Drivers #2

Car insurance rates are higher on sportier cars and trucks. If you are a new driver that is concerned with your auto insurance premiums, choose a four door sedan that is a couple of years older.

Auto Insurance Tips for New Drivers #3

If a new driver gets a ticket that can be erased from their record by attending traffic school: ATTEND TRAFFIC SCHOOL. Nothing will increase a new driver’s auto insurance rates more than a ticket.

Auto Insurance Tips for New Drivers #4

Teen drivers can qualify for good student discounts through various insurance companies. Check with your insurance agent to see if a new driver in your household qualifies for this discount. If new driver discounts include student discounts, make sure that the student keeps their grades up to keep the discount active.

Auto Insurance Tips for New Drivers #5

Choose a car that has airbags and an anti-theft system. Safety features offer discounts, and auto insurance discounts are much needed to lower the cost of new driver insurance.

Auto Insurance Tips for New Drivers #6

Approximately 27% of teen driving deaths occurred between the hours of 9 p.m. and 2 a.m. New drivers need to drive at night only when absolutely necessary. This auto insurance tip for new drivers could save some money of car insurance premiums because it could decrease the risk of getting into an accident.

Auto Insurance Tips for New Drivers #7

Turn the cell phone off while driving. New drivers need to pay attention to driving. Not paying attention is how accidents occur. Once a new driver causes an accident, their insurance premiums could become unaffordable.

Auto Insurance Tips for New Drivers #8

New drivers should only allow one person to ride with them. This could lower insurance premiums by making the driver concentrate on driving. Once a driver has a couple of years experience, allowing more people to ride in the car with them won’t be as risky.

Auto Insurance Tips for New Drivers #9

Do not speed. No matter how late you are to an appointment or how tempting it is do not speed. Getting a speeding ticket will wreak havoc on new driver car insurance rates. In addition, speed played a factor in 1/3 of the fatal new driver car accidents. Stay alive and keep your insurance premiums down by obeying posted speed limits.

Auto Insurance Tips for New Drivers #10

Don’t drink and drive. New drivers who get a DUI or DWI will most likely lose their car insurance. Those that don’t lose their car insurance will have to pay new driver auto insurance premiums that are through the roof. In addition, drinking and driving leads to the loss of innocent lives. New drivers need to take their responsibility seriously and not drink and drive.

New drivers are understandably excited about their first set of wheels. New driver car insurance rates are among the highest auto insurance premiums charged. New drivers can practice safe driving and make wise decisions in order to reduce their new driver car insurance premiums.

For starters, it pays to choose a make and model that costs inherently less to insure in the first place. The quickest and costliest sports cars generally command the highest premiums, with minivans, SUVs and passenger sedans generally being the cheapest to insure. Still, there can be significant differences within given classes of cars, depending on their claims histories and other factors.

Usually, the biggest differences in insurance costs between models will come with collision and comprehensive coverage (for physical damage to the vehicle and theft) and medical payments premiums (for injuries to the driver and passengers). Typically, liability coverage isn’t affected by a policyholder’s car choice, although owners of high-performance sports cars could be charged higher rates in this regard on the assumption that they intend to drive them in the aggressive manner for which they were designed. What’s more, drivers of the largest SUVs, like the massive Hummer H2, might pay somewhat higher liability rates because their vehicles inflict more damage to others in collisions.

Insurance giant State Farm provides ratings for damage and theft indexes, vehicle safety discounts and liability rating indexes on its Web site (Statefarm.com), which can be used to help pick a car that costs less to cover.

Besides identifying a lower overall rate, many motorists can reduce their insurance premiums even further by tweaking a policy’s coverage and/or deductibles. The larger a deductible is, the smaller the premium for specific coverage will be. Most drivers can afford to have a $200 deductible on comprehensive and collision damage, but taking a $500 deductible could save from 15% to 30% on this coverage. Those driving an older model that would cost more to repair than replace could extend their savings by as much as 40% by canceling their comprehensive and collision coverage altogether.

Dropping medical payments coverage (it’s redundant for families with conventional health insurance) rental reimbursement (especially for those owning multiple cars that can be called into service if one gets into an accident) and towing coverage (unnecessary for those having a new-car roadside assistance plan or who belong to an auto club) can likewise save money.

Also, insure more than one vehicle on the same policy. This is the insurance industry’s version of a “volume” discount. Rate reductions among most companies range from 10% to 25%. Likewise, consolidate insurance policies – larger companies will cut auto premiums by around 15% if they also carry a family’s homeowner’s policy.

Savvy insurance shoppers can qualify for additional rate reductions by driving fewer miles per year, keeping a vehicle in a garage, car-pooling, attending driver training school, installing aftermarket anti-theft devices and so on. Senior citizens usually get a break on policy costs, as do students who boast a “B” average or better.

Good news for local resident of our lovely state, I for one am tired of seeing rates rise in this horrible economy.  The cost of auto insurance in Massachusetts has fallen since the state stopped setting rates a little more than a year ago, the Division of Insurance has said.  According to a state study, auto insurance rates dropped 8.2 percent from April 2008 to April 2009, compared with a 5.2 percent decline from 2006 to 2007. The state allowed insurance companies to start setting their own rates on April 1, 2008, under what officials called a “managed competition’’ plan. Previous to that, auto insurance had been highly regulated.

The proportion of customers seeking a new insurer fell to 28 percent in the 12 months ended in March from 36 percent in the year-earlier period, the marketing company said today in a statement. The study showed a slump in shopping in the fourth quarter and January, and some companies reported a rebound in recent months, Jeremy Bowler, J.D. Power’s senior director of insurance, said in an interview.

“Many customers are employing a hunker-down mentality,” Bowler said in a statement. “Most customers would prefer to hold tight to their current provider, which they already know, rather than risk trying a new provider.”

Auto insurers’ premiums have declined as drivers reduced coverage in response to the recession and profits dropped on investment writedowns. Consumers most often cited price as a reason for their shopping, and more than a third said price was the reason for switching carriers. Ninety percent of customers stay with their current provider, J.D. Power said.  I guess this all comes as no surprise as folks seem to have bigger worries on their minds.

Allstate set Nov. 2 as its target date to return after an absence of about two decades, pending approval from regulators, the Northbrook, Illinois-based insurer said today in a statement. Geico started offering online quotes to Massachusetts drivers today, the company said in a separate statement.

Massachusetts was the last state to give up the authority to set rates in a plan designed to increase competition among insurers and reduce prices for customers. The state revoked the 31-year-old controls last year. Progressive Corp., based in Mayfield Village, Ohio, re-entered the market in 2008.

“As far as I am concerned the floodgates are wide open in Massachusetts right now,” said Kevin Johnson, an independent agent with Johnson & Rohan Insurance Agency in Lynnfield, Massachusetts, about 14 miles (22 kilometers) north of Boston. “It is good news for the consumer.”

Johnson said the state’s insurance regulation kept many companies from entering the market and he is cheered by how much that has turned around since the rules fell about a year ago.  This is good news for competition and hopefully lower pricing.