Car Rentals: What You Don't Know May Cost You

Drowsy Driver Alert: Know When to Pull Over

Buying a New Car: Think Safety First!

Sorry Kids: New Law Restricts Teen Drivers

Cars, Cars and More Cars

Car Rentals : What You Don't Know May Cost You

Travelers need to be aware of options and risks involved in car rental contracts before signing on the dotted line.

Vacationers need to decide whether or not to purchase a loss damage waiver (LDW) from the rental car company, which releases you from financial responsibility for damage to the car as long as you comply with the terms of the rental contract. Exclusions to the LDW include: driving carelessly, allowing "underage" or "unauthorized" drivers (usually 21-25), or drinking and driving.

What you may not realize is that you may already be covered through your auto insurance policy or credit card. The disadvantage is your policy or credit card probably doesn't provide the cost of loss of use to the rental car company.

• Check with us to see if you are covered under your policy. Approximately 60 to 80 percent of car owners have coverage that applies to rented or non-owned cars. We can explain limitations.
• Membership to certain associations or auto clubs may provide automatic collision coverage.
• Using a specific credit card to purchase a rental car may provide collision coverage.
• Daily rates do not include LDWs, adding approximately $10 to $15 to the price. But, opting for them is the best bet if your policy, club or card does not cover non-owned cars, if your driving record is blemished, or if you want broader coverage with no hassles from the rental company.

Drowsy Driver Alert: Know When To Pull Over

Did you know that the U.S. Department of Transportation estimates drowsy drivers contribute to at least 200,000 car accidents and 10,000 fatalities every year?

A survey by the Better Sleep Council reported one in five people claim they have dozed off at least once while driving. With more families than ever headed for the highways to restful vacations, sleepy drivers need to know when to pull over and rest.

Tips for staying alert include a good night’s sleep, avoid long drives at night, keep car temperature cool, turn the radio volume up, do not use cruise control, take frequent breaks for food and drinks, and don't drive alone.

Buying A New Car? Think Safety First!

Are you thinking about purchasing a new car? If so, drivers should make safety features their first priority, according the the Insurance Institute for Highway Safety.

Safety feature to consider are:

• Dual air bags-have reduced driver deaths by 24 percent in frontal crashes of cars compared to those only equipped with seat-belts.
• Anti-lock brakes-automatically pump to prevent lock-up, enabling the driver to maintain steering control while braking.
• Safety belt system with automatic crash tensioners-tighten seat-belts within the first milliseconds of a crash, and belt webbing grabbers clamp the belt just outside the reel.
• Traction control-prevents car wheels from spinning and losing traction when you press too hard on the accelerator.

A few examples of top-selling, safe cars include the Chevrolet Cavalier, Honda Accord, Toyota Camry, Ford Taurus and Chevrolet Lumina.

Considering insurance premiums are also vitally important. Cars with high theft rates, high frequency of claims or those expensive to repair will have high insurance rates. Buying "low profile" cars will save you a bundle when shopping for your policy.

Sorry Kids: New Law Restricts Teen Drivers

The current California law states that teens born after Jan. 1, 1983 must adhere to the following provisions:

• Teen drivers with learner’s permits must wait six months before receiving their license, and parents have to certify that the teen spent 50 hours of supervised driving, 10 of those at night.
• For the first year, the new driver may not drive between midnight and 5 a.m., unless accompanied by a parent or a certified driving instructor who is at least 25.
• For the first six months, the new driver cannot have passengers under 20 unless supervised.

Exceptions include work, school-related activities, medical and family necessities.

Adding a teen to your policy can be costly. Call us to find out how we can assist your insurance needs.

Cancellations Worry Consumers, Study Finds

Auto Accidents are expensive, but car owners don’t always depend on their insurance company to pay for the damages, according to a new study by the Independent Insurance Agents of America.

One in five car owners paid out of their own pocket for damage to their car or another's car or property due to an accident, rather than file an insurance claim. This statistic shows that:

• Many drivers are afraid that their insurer will penalize them for filing claims by dropping them or non-renewing their policy or raising their insurance premiums.
• The number of claims filed annually grossly underestimates the actual extent and cost of damage due to auto accidents.

However, IIAA said those fears may be largely unfounded. While it is true that multiple claims are one of the main factors contributing to high auto premiums, the survey reported that more that 93 percent of respondents have never been dropped or non-renewed by their insurer.

In better news, the survey showed that nearly 85 percent of those surveyed take advantage of premium discounts offered by their insurance agent or broker to save money. Also, three out of four car owners said they had reviewed their insurance policy within the last year.

Call our offices to see what discounts you may be eligible for, or to review your policy.