Category: Personal

Learn to Safely Navigate Winter’s Driving Conditions

Posted on by shasha insurance

The hazards of the road increase in winter, as the weather becomes less predictable. To avoid these conditions, you might be able to cut down on your driving, but you probably can’t eliminate it altogether…and maybe you wouldn’t want to. Therefore, it’s essential that you take steps to lessen your risk.

As with many things in life, preparation is the key to managing winter driving hazards. The following tips can help to keep you safe on the road, regardless of the weather:

  • Check tire pressure monthly. Keep your vehicle’s tires inflated at the manufacturer’s recommended pressure for maximum performance on icy roads. It’s important that you perform a pressure check monthly because a change in temperature of 10 degrees Fahrenheit changes the tire pressure about one pound per square inch. Added benefits of keeping tires properly inflated include better gas mileage and increased tire life.
  • Have your battery checked. Cold slows down the chemical reaction in a car’s battery, which decreases its power output. In fact, starting power drops dramatically below 77 degrees Fahrenheit. Be sure your car’s battery is fully charged to compensate for the drop in output.
  • Know what your car is capable of handling. Your vehicle may have all-wheel drive, anti-lock brakes and all-weather tires. However, don’t be fooled into thinking that these features are a panacea for all the problems associated with winter driving. Becoming too complacent about the car’s ability to handle tough road conditions is a sure fire way to find yourself in a bad situation.
  • Learn to stay focused. When you drive, focus all of your attention on the road so you can anticipate hazards. Keeping your mind on the road ahead allows you to plan for areas that usually remain icy even when roads are clear, like bridges, overpasses and heavily shaded spots. The more aware you are, the better your ability to respond.
  • Exercise extra caution when necessary. Intersections with stoplights or stop signs can become deceptively treacherous when the weather is bad. Because so much traffic slides to a halt in the same location, the snow tends to become packed, and develops a slick icy surface. Drivers who spin their tires when starting up from a stopped position compound the problem. To compensate for these conditions, begin braking sooner when approaching an intersection. This will allow you more time to make necessary adjustments.
  • Plan when and how you will travel. Travel during daylight hours and wear sunglasses that provide UV protection to shield your eyes from snow and ice glare. Take the most direct route possible to your destination, and allow extra travel time in case you encounter unexpected problems.

Keep your vehicle stocked for an emergency. Be sure to have blankets and snacks in your car or truck to tide you over if you are stranded or stopped by bad road conditions.

Families Should Have an Emergency Communication Plan

Posted on by shasha insurance

Severe weather is one of the most common sources of natural disasters, and no region of the U.S. is off limits. Does your family know what they should do in the event a weather-related natural disaster strikes?

According to the Home Safety Council, fewer than 30 percent of U.S. families have created and discussed an emergency communication plan. One of the reasons that so few families have developed one is that many people believe it requires considerable time and effort.

Creating an emergency communication plan is actually easier than you may think. The first component that you should have is a corded land line phone in your home. It is the most reliable source of communication in an emergency because it will continue to operate even if the power goes out in the house.

The second component is an emergency communication card that each family member should carry at all times. The Home Safety Council recommends creating wallet-sized emergency communication cards that include space to list important phone numbers and medical information. Families should discuss how they would communicate during an emergency situation, and then record important plan information on their emergency cards.

In addition to a communication plan, the Home Safety Council offers the following recommendations:

  • Have a “Ready-to-Go-Kit” – In a duffel bag or backpack, place one gallon of water per person, non-perishable canned food, a can opener, paper plates and cups, plastic utensils, a flashlight and extra batteries, a battery-operated radio, a change of clothes for each family member, personal hygiene items, a small first-aid kit, and pet food and supplies. Keep the kit near any medications you would need to take with you in an emergency.
  • Have a “Ready-to-Stay Kit” – You may have to stay inside your home for an extended period of time, and this kit will help you survive. In a large plastic tub with a cover, or easily accessible cabinet designated for this purpose only, place three gallons of water per family member, enough non-perishable canned food and snacks for at least three days, a can opener, toilet paper, blankets, books and games to keep you busy, a flashlight and extra batteries, a battery-operated radio, a small first-aid kit, paper plates and cups, plastic utensils, a change of clothes for each family member, personal hygiene items, and pet food and supplies.
  • Designate a safe meeting place outside your home.
  • Designate a safe place to seek shelter in your home in case of severe weather. Your survival supplies should be stored in this location.
  • Teach young children how to use the phone to call for help.
  • Update wireless phones with “in case of emergency” (ICE) contact information.

Debunking Some Popular Car Insurance Folklore

Posted on by shasha insurance

You have probably heard at least one piece of urban folklore regarding some aspect of your daily life. Folklore is a bit of “wisdom” that gets repeated over and over as true, even though it usually has little or no basis in reality. It typically develops when people try to make sense out of a process they perceive as being complex, without bothering to investigate the facts.

Even something as routine as buying car insurance comes with its own folklore. Here are some popular myths:

Myth 1: The color of your car affects your insurance rate. This bit of folklore developed out of another popular myth – that people who drive red cars get more speeding rickets than other drivers. Insurance companies, in anticipation of this phenomenon, supposedly base a driver’s insurance rates on the color of the car they are driving, which is coded into the VIN number of your vehicle.

Truth: Both myths are false. An insurer takes a number of factors into consideration when determining rates, but color isn’t one of them. Driving a red car isn’t necessarily a precursor to a speeding ticket and the VIN number doesn’t provide any information about a vehicle’s color.

Myth 2: It’s more expensive to insure a two-door car than a four-door one.

Truth: It’s possible. Depending on the way companies classify cars when they analyze loss, injuries and claims, something as simple as the number of doors on your car could affect your insurance rates. Thus, one company may associate a relatively low history of claims with a particular model, while another company may have experienced nothing but trouble with the same vehicle.

Myth 3: Parking tickets affect your rates.

Truth: Parking tickets alone won’t affect your insurance rates. However, unpaid parking tickets could lead to license suspension which would affect your insurance rates. 

Myth 4: If I lend my car to a friend and they wreck it, their insurance will cover the damage.

Truth: Your car, your responsibility! And even though you weren’t in the car at the time of the accident, you will still receive a mark on your insurance record and your premium could possibly increase.

What’s the Difference Between Policy Cancellation and Non-Renewal?

Posted on by shasha insurance

In some policyowners’ minds, whether your insurance company cancels your auto coverage, or simply chooses not to renew it, it all means the same – you’re suddenly without insurance. However, it isn’t quite that simple. The difference between cancellation and non-renewal can be a significant factor in finding another auto insurance policy.

There are specific conditions, outlined in each state’s laws, under which an auto insurer is permitted to cancel your policy. Here are some common ones:

  • Failing to pay your premium in a timely manner.
  • Losing your ability to drive because your license was suspended or revoked, or because it expired during the term of the policy. This can also apply to any members of your family who are covered under the policy.
  • Falsifying information on your insurance application.

Your insurer has the right to cancel your policy at any time if you’re guilty of one of these actions. If it decides to do so, it must send you a written notice of the cancellation that explains why your coverage is being cancelled. Depending on the laws of your state, your insurer must provide 10 to 30 days notice before the cancellation becomes effective.

There is one other instance where an insurer has the right to cancel your coverage, and that is during the 60 day binding period immediately following your application. An insurer could cancel your policy during this time if it discovers some information that marks you as an unacceptable risk.

If your auto insurance is cancelled for any reason, you will likely have trouble finding another insurance company willing to issue you a policy. The only cancellation circumstance where the possibility of reinstatement exists, is being cancelled for not paying your premium.

In this case, you would be sent a letter informing you that your premium was not received and providing a specific amount of time to rectify the situation. If the payment is received before the cancellation date, you will receive a letter of reinstatement. However, reinstatement does carry consequences. You will probably have to pay a late fee and an extra premium to cover the period between the cancellation and the reinstatement.

You auto insurer can also elect not to renew your policy. State laws aren’t always as specific about what constitutes reasons for non-renewal as they are about reasons for cancellation.

If your insurer decides not to renew, it is usually because you filed too many claims for at fault accidents, were convicted of driving under the influence, or were cited for too many traffic violations during the previous three to five years.

As is the case with cancellation, your auto insurer has between 10 to 30 days to send written notice of non-renewal, which should explain the reason they chose not to renew. If this isn’t included in your non-renewal notice, request an explanation from your insurer. The one advantage non-renewal has over cancellation is that it is less of a deterrent in finding another company to provide you with auto coverage.

Internet Usage Spells Trouble for Drivers

Posted on by shasha insurance

Driving distractions come in many shapes and sizes. Between phone calls, text messages, Internet, television screens, unruly children, and distractions on the road, it is a wonder we ever arrive safely from Point A to Point B.

In November of 2010, State Farm created an online survey to gain a better understanding of what distracts drivers from their most important task at hand – driving. The survey went to 912 drivers who reported that they drive at least an hour per week, own a smartphone, and have a valid driver’s license.

Of those surveyed, 19% admitted to Internet usage while driving. Here are the top five internet activities that driver’s engage in:

1) Searching for and reading driving directions

2) Reading E-mail

3) Looking for specific information of immediate interest, such as where to find a restaurant

4) Reading/Updating social networking sites such as Twitter and Facebook

5) Writing/sending an e-mail

When asked about when their internet usage occurs, drivers responded:

*When stopped at traffic lights

*During heavy traffic

*When driving alone

*During daylight hours only

*On long highway drives

The survey further reports that about 40% of the U.S. population currently owns a smartphone, and this statistic equates to many distracted drivers on the road at any given time. Studies show that the increasing use of smartphones, especially among young adults, increases the risk of crashes. And there is an ever-growing need to remind yourself and the ones you love to put the phone away while driving.

Teens Drinking at Parties = Insurance Issues

Posted on by shasha insurance

Every spring brings with it the prom and graduation party seasons. Unfortunately, these events often become occasions for teens to drink alcohol. Teens at unsupervised parties risk harming themselves and others when they drink. Parents who host these parties may bear responsibility for what happens there and for injuries or damages occurring after the guests leave. While their liability insurance may cover any financial damages, the circumstances of the accident determine which policy will respond, and this will affect how much coverage the parents have.

Assume that a guest consumes several beers at the party, drives off in his car, and gets into an accident, injuring himself and a passenger. The parents of both injured teens sue the parents who hosted the party, who in turn notify their homeowner’s insurance company. However, the policy’s personal liability coverage does not apply to an insured person’s legal liability for:

  • The occupancy, operation, or use of a motor vehicle by any person
  • The entrustment of a motor vehicle by the insured person to anyone else
  • The insured person’s failure to supervise or negligent supervision of any person using a motor vehicle
  • The actions of a minor involving a motor vehicle.

Because of this, the homeowner’s policy will not cover the parents’ liability or defense costs. Their personal auto insurance policy may cover them, however. The policy’s liability insurance covers the individuals named on the policy and household residents who are their relatives for their liability for bodily injury from an accident arising out of the use of any auto. Therefore, even though the parents were not actually operating the vehicle involved in the accident, their policy will cover their liability. In addition, the auto policy that applies to the car involved in the accident (the guest’s insurance, or, more likely, his parents’) will also cover the hosts’ liability for the passenger’s injuries. The hosts’ policy will step in if the owners’ policy either does not apply or pays out its maximum limit of insurance.

Now assume that the guest consumes the beer, but a sober guest gives him a ride home. Rather than go straight to bed, the young man goes for a swim in his parents’ pool and drowns. His parents sue the hosts, alleging that his judgement was impaired because the hosts allowed him to drink. In this situation, the homeowner’s policy should pay for the the hosts’ liability and legal defense. Because this accident did not involve a motor vehicle, and no other policy provisions that would remove coverage apply, the policy will cover this claim.

While one policy or the other may apply to a liquor liability claim, there could be significant differences between the amounts of coverage the two policies provide. Most homeowner’s policies provide personal liability coverage of at least $100,000 for each occurrence; many provide limits of $300,000 or $500,000. Auto policies may provide much less coverage. Most states have laws setting the minimum amounts of liability coverage that an auto policy may provide, but those limits are relatively small. For example, New York law requires minimum limits of $25,000 for injuries to one person and $50,000 for injuries to two or more people (higher amounts apply for death claims.) Should a young person become seriously injured or killed, the damages claimed could well exceed these amounts. Parents should consider buying as much liability insurance as they can afford; they should also think about buying an umbrella policy, which pays for damages that surpass the amounts payable under homeowner’s and auto policies.

Of course, the best course of action is to properly supervise parties, so that everyone has a good time and lives to have another one someday.

Don’t Be Victimized Twice By a Hit and Run Driver

Posted on by shasha insurance

The National Highway Traffic Safety Administration (NHTSA) reports that nationally, from 2003 to 2006, one out of every eight accidents was a hit-and-run; however, some regions of the country exceeded the national average.

The South had more than one million reported hit-and-run crashes, making it number one nationwide. The Midwest ranked second with over 835,000 reported incidents. California received state honors for having one of the highest rates of hit-and-run accidents in the nation.

If you are the victim of a hit-and-run, it doesn’t matter where your region ranked on NHTSA’s survey. What is important is that you aren’t victimized twice because you aren’t prepared for the financial consequences. In a hit-and-run accident, you become responsible for all the expenses associated with medical care, car repairs and replacement car rental that normally would have been covered by the at-fault driver’s auto insurance carrier.

That’s why the Insurance Information Institute recommends that you purchase Uninsured Motorist coverage, if not already required in your state. Since being involved in a hit-and-run accident is essentially the same as being in one with an uninsured driver, uninsured motorist coverage will pay the costs resulting from the accident.

Also consider that some auto insurance companies don’t necessarily cover the cost of a replacement rental car, even if a hit-and-run driver damaged yours. So it makes sense to add replacement rental car coverage to your auto policy because it typically costs less per year than the average daily rate for most rental cars.

While having proper insurance protection is important if you are involved in a hit-and-run, the best strategy is to avoid being a victim in the first place. Here are some simple tips to remember:

  • If you have to stop on the highway, be safe — Stop on the right shoulder. Stopping on the left side will increase your chances of being involved in an accident by 80 percent.
  • Carry flares or triangles in your trunk — Use these to mark your location once you come to a stop on the side of the road. You should also put on your hazard lights. Emergency flashers, used in conjunction with flares/triangles, are an effective way of giving other drivers advance warning of your location. Flares/triangles can also act as a backup if flashers become inoperable in the event of a failure in your car’s electrical system.
  • Become a member of an emergency roadside service — Although you may have to wait as long as an hour for assistance, it is preferable to trying to fix the problem yourself. Working on your vehicle in high traffic or where oncoming motorists may not see you is asking for trouble.
  • Maintain your car — Tire blowouts are a common reason vehicles become inoperable. Always keep your tires inflated according to the manufacturer’s recommendations. Check your tires periodically for wear and tear, cuts, or abrasions that could cause the tire to deflate while you are driving.

Cutting the Cost of Your Teenager’s Car Insurance

Posted on by shasha insurance

Auto insurance for teenagers has always been expensive, and that will probably never change. It’s common for most parents to add their teen as a named driver to the family auto policy because it is usually the most affordable alternative.

However, less expensive doesn’t mean cheap. That’s because insurers calculate their rates based on the likelihood of a driver getting into an accident. The National Safety Council says that drivers between the ages of 16 and 17 are three times more likely to be killed in a traffic crash than drivers between the ages of 25 and 64. Statistics like these make drivers under the age of 25 bigger risks in the eyes of auto insurance companies, so expect your premium to increase anywhere from 50 to 75 percent.

There are some other important factors that affect how much you will pay when adding your teen to your insurance:

  • Gender – Teenage boys are considered to be more reckless and bigger risk takers than teenage girls. All of that bravado comes with a price, higher rates than for teenage girls.
  • Experience – Lack of driving experience translates into higher premiums because insurers assume that inexperience makes the driver more prone to accidents.
  • Geography – Driving in a high-traffic geographic area is another rate booster because it increases the probability of getting into an accident.

While the deck seems to be stacked against you, there are ways you can lower premiums:

  • Buy them an older model car – Older cars cost less to insure than newer models.
  • Avoid the extras – All of those add ons that teenagers love, like chrome rims and big stereo systems, will increase the rate you’ll pay.
  • Lower/drop collision coverage on older cars – If the value of the car is less than the product of your annual premium times 10, think about dropping the collision and/or comprehensive coverage portion of your policy.
  • Raise your deductible – A higher deductible can lower your auto insurance rate by 15 to 30 percent.
  • Enroll the teen in a defensive-driving class – This could result in a premium decrease.
  • Obtain car insurance from the same company that provides your homeowner’s or renter’s insurance – Many insurers will offer a 10 to 20 percent discount for multiple lines of coverage.
  • Maintain your credit score – Insurers base your premium in part on your credit score; the higher it is, the lower your rate will be.

Ask about low mileage discounts – As gas prices increase, many people aren’t driving their car as much. If you drive less than the annual average miles allotted by your insurer, see if you can qualify for a low mileage discount.

Excessive Holiday Drinking and Driving Don’t Mix

Posted on by shasha insurance

The weeks between Thanksgiving and New Year’s Day include the most important entertaining season on many people’s social calendars. While these festivities are a wonderful part of the holiday season, they do bring with them a very serious problem-partygoers who drink too much and then get behind the wheel of a car.

Many people downplay the issue, but statistics prove how serious it is. According to the Community Alcohol Information Program (CAIP), a non-profit agency that provides alcohol education, assessment and evaluation services to persons convicted of alcohol-related offenses in New Hampshire, two million alcohol-impaired driving collisions occur each year in this country. Accidents caused by alcohol-impaired drivers are the most frequently committed violent crimes in America today.

CAIP offers these other sobering statistics about drinking and driving:

  • The average alcohol-impaired driver arrested on the highway has a blood alcohol concentration (BAC) of .20%, more than double the level for presumed intoxication in most states. This level represents 14 drinks of 86-proof liquor (or 14 beers) in a four-hour period for a man weighing 180 lbs.
  • Between 7 p.m. and 3 a.m. on weekends, in some parts of the country, 10% of all drivers are legally impaired. Most Americans drink alcohol, and more than 80% admit to driving after drinking.
  • When drinkers are at the presumed level of intoxication, the risk of their causing an accident is six times greater than for non-drinking drivers.

Some people persist in drinking and driving based on myths about how the body reacts to alcohol and its ability to overcome alcohol’s effects. Scientific studies supported by the National Institute on Alcohol Abuse and Alcoholism (NIAAA) provide important information that belies two commonly held beliefs about drinking and driving:

  • Myth: You can drive as long as you aren’t slurring words or acting erratically. Fact: The skills and coordination needed for driving are compromised long before the obvious signs of intoxication are visible. In addition, the sedative effects of alcohol, combined with late night hours, place you at much greater risk of nodding off or losing attention behind the wheel.
  • Myth: Drink coffee because caffeine will sober you up. Fact: Caffeine may help with drowsiness, but it doesn’t counteract the effects of alcohol on decision-making or coordination. The body needs time to metabolize (break down) alcohol and even more time to return to normal. There are no quick cures.

Alcohol affects the brain and body long after you stop drinking. Any alcohol that remains in the stomach and intestine continues to enter the bloodstream and circulate through the body. That means judgment and coordination can be affected for hours after you’ve taken that last drink. Also keep in mind that alcohol heightens feelings of stress or anxiety, which can lead to violent behavior.

Does this mean you can’t have a few drinks at a holiday party? No, but what it does mean is that you need to be responsible if you do drink. Here are a few tips to remember:

  • Know your limits and never drink more than you can safely handle.
  • Don’t get behind the wheel if you drink. Ask a sober driver to escort you home.
  • Don’t drink if there is someone at the gathering with whom you have a grievance.
  • Offer to be a designated driver for a friend.
  • Call law enforcement if you see someone driving erratically.

Keeping these tips in mind can help avoid tragedy during the holiday season.

Insuring Your Student Away at College

Posted on by shasha insurance

Sending a child off to college is always an exciting and anxious time for parents. They worry about their child’s safety, whether she has everything she needs, how she’ll get along with her roommates, and whether she’s ready for independent living. Between making sure that textbooks and supplies have been purchased, tuition bills paid and course registrations completed, it’s natural that parents won’t think about insurance considerations. However, accidents can happen at college just as easily as they can at home, so it’s worth taking a few minutes to think about insurance coverage.

A homeowner’s insurance policy may not cover a part-time student or one over a certain age. For example, policies often state that a person has coverage if she is a full-time student and was a resident of the policyholder’s household before moving out to attend school. They also limit coverage to students who are either under the age of 24 and related to the policyholder or in the policyholder’s care and under the age of 21. This could become an issue when the child is attending college at a later age, or at graduate school, law or medical school, where students are often in their mid-twenties. The parents should discuss this with an insurance agent and consider asking for a change to the policy that would eliminate these restrictions.

A typical policy covers the student’s belongings while at college, but limits coverage to 10 percent of the amount of insurance covering the parents’ personal property. For example, if the policy shows a limit of $100,000 for coverage of personal property, it will cover the student’s property up to a maximum of $10,000. If this amount of insurance is too low, parents should consider higher limits.

Many colleges require students to own a laptop computer. A standard homeowner’s policy will cover a laptop, but only for a small number of causes of loss. These include perils like fire, theft, lightning, explosion, and vehicle damage. The policy does not cover damage from someone dropping the computer, spilling a beverage on it, or damage to its circuitry from a power surge. However, many insurance companies offer special computer coverage that will pay for damage from these types of accidents. An agent can explain to the parents what the coverage includes and how much it will cost.

The homeowner’s policy will also cover the student’s liability for any injuries or damages she may cause to others while at school. For example, the policy would pay for repair or replacement of dormitory furniture that she may accidentally damage.

If the student brings a car to college and the parents’ auto insurance policy lists it, the student will have coverage for its use. Of course, the student could also buy her own policy. If she does, she should buy liability coverage in an amount at least equal to what the parents have. Purchasing only the minimum limits required by state law could leave her owing a large amount out of pocket if she causes serious injuries to others in an accident. If she doesn’t bring a car with her, the parents’ policy will cover her while using someone else’s car unless it’s regularly available to her. The car owner’s policy should also provide her with coverage.

Parents’ insurance policies will automatically cover many student situations. However, parents should read their policies to verify the coverage they have. A discussion with an insurance agent is in order if anything is unclear or appears inadequate. A little bit of advance checking can save a lot of worry and expense later.