1 Great Way to Get Value From Auto Insurance

Posted in Car Insurance | September 14th, 2009 | mcj2001 |
Crushed car

Deductibles Revisited

Most people try to save money on auto insurance.  I you thought about  getting more value for the dollars you are paying?  How about actually spending more to get a better value?  Your auto insurance comprehensive coverage deductible is a sweet place to get more value.  If you don’t know, Comprehensive Coverage covers damage to your car that results from causes other than a collision.   If you have comprehensive coverage, you probably have a deductible of $250 or $500; this just seems to be the deductible that a lot of agents recommend.  I bet you didn’t know that lowering this deductible to $0 won’t increase your premium more than 1 or 2% in most cases.  For me it raised my 6 month premium by $11 bucks!  Last year someone  broke into my car to steal what they thought was a purse but it was my trash can!  The window cost $215 to replace and at the time my deductible was $250.

Just think, someone breaks into your car and rips it up, busts your window and you find out that you have to pay $500 out of the $800 to repair it; wouldn’t you be upset?  I was when it happened to me.  But just think if you would have paid a few more bucks to have $0 deductible, you could sit back and relax while the repairs are made; no money out of your pocket.   Also, in most cases Comprehensive claims DO NOT raise your rates like at-fault collision claims do.

Of course the rate you pay for $0 deductible will vary depending on the type of car, the driver assigned to the car and who your auto insurance company is.  Call your agent today and see what the change in premium would be on your car(s) to change your comprehensive deductible.  If it is less than 4% you would be crazy not to do it.

If you have any questions, please comment or go my “Ask the Owl” section.   I encourage comments.  Also if you liked this article, please subscribe to the RSS Feed to my articles delivered directly to your RSS reader or email.

Want the Ultimate Insurance Checklist?  It’s in our Download Section or click here.



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Teens and Adults, In the Car, Doing What?!

Posted in Car Insurance | September 4th, 2009 | mcj2001 |

I have seen people do some of the craziest things while driving; shaving, eating a bowl of cereal, putting on makeup, and even reading books.  But I am now here to say,  “When you are driving do not text and when you are texting do not drive”. This maybe the last or the best advice you have heard in your life. 

The pandemic risks of teens and adults texting while driving have almost rivaled dangers posed by drinking and driving.  This is an important issue which needs the “think tank” of first world countries. Nearly 50% of teenagers and even more than 50% of adults admitted that they do text messaging while driving on the road.  Hey I have done it too. (I used to.)

Teen-aged drivers are between the ages of 16 to 24 and it is alarming to note that teen fatalities caused by text messaging are growing 4% yearly. In a study made among high school students nationwide, 60% admitted risky driving and text messaging behind the wheels. Despite their full awareness of the danger, they did nothing to curtail it.  You know kids think they are never going to die and certainly not in their lifetime.

In 2002, Harvard Center for Risks Analysis accounted that more than 2,000 people die each year from car crashes while the driver is text messaging while around 330,000 people are injured in car crashes annually.  Studies also revealed that talking or dialing the mobile while manipulating a car takes eyes off or attention off the road more than 400% of the time. They know that motorist using a cell phone is 4 times more likely to crash.  It is a fact that 44% of American vehicles have mobile or installed phones.

Although teen-agers and adults admit the risk, this does not hinder them from receiving and texting messages while driving. Meanwhile statistics on car accidents, death and injuries due to texting are growing.

Since the biggest influence on the behavior of the young is the parents, if you have kids, you have the obligation to instruct your children on road safety.  Some of the young drivers admitted that their parents gave them driving restriction and even threaten them with penalties. But seldom are penalties imposed for this infringement of behavior.  As a result, more than half tend to disregard this imposition and only a small third followed their parents’ instructions.  Many claimed that their own parents also do message texting while on the wheel. Parents must act as models to their children’s behavior.

US legislation, aware of the growing dangers, unveiled the ALERT Act; this bill penalizes drivers who are sending email or text while driving in any part of the country. If the bill is enacted into a law, States that do not follow the text-banning law will be deducted 25% of their federal highway fund.

Insurance companies are supporting this ban on texting. The increasing occurrence of road accidents is adding burden to auto insurance companies. Insurance companies make strict investigation and check-up on the cell phone of drivers if it is a contributory factor to the accident. The cost of car insurance will probably rise if the trend of text-related crashes rises.

While passing Legislation marks a good beginning, a strong public demand is more on the development of a technology that will insure road safety in spite of text messaging.


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If you have any questions, please comment or go my “Ask the Owl” section.   I encourage comments.  Also if you liked this article, please subscribe to the RSS Feed to my articles delivered directly to your RSS reader or email.
Want the Ultimate Insurance Checklist?  It’s in our Download Section or click here.



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