Car Insurance & Road Rage

Courtesy of iii.org

Road rage incidents are not only dangerous, they are exempted from coverage by many auto insurance policies. Understand your risks and take precautionary measures to avoid being a victim—or a cause—of aggressive driving accidents.


Crowded highways and traffic backups at times cause drivers to lose control and become extremely aggressive. Road rage is a real problem that can lead to serious accidents or even incidents of violence on the road.

It’s important to realize that road rage is listed as an exemption in many auto insurance policies. This is because any damage or liability stemming from aggressive driving isn’t considered an accident but rather as having been caused by risky behavior.

Rather than risk paying the consequences of road rage—one of which may be not having your auto insurance claim paid—it’s best to avoid a dangerous and costly aggressive driving incident in the first place.

If you encounter an aggressive driver on the road…

 

  • Stay as far away as possible. Slow down or change lanes if need be, let the driver pass you and give yourself room at intersections to drive away.

 

  • Record a description of the car and note the license plate number if possible so that you can report him or her to the police for the sake of everyone’s safety.

 

  • Do not engage with or challenge the offender in any way. Ignore the driver’s rudeness and don’t give into the temptation to react in kind or you might escalate the risky behavior.

 

  • Put your safety first. If an aggressive driver starts to follow you, keep your doors locked, and head to the nearest police station. Never stop and confront an aggressive driver.

 

If you have a short fuse yourself stay cool and…

 

  • Leave plenty of time to get where you need to go. When you’re in a hurry, your patience is short and you are much more likely to become aggravated.

 

  • Remember other drivers are not annoying you on purpose. People make mistakes or they might be driving more slowly for a reason—they might be lost, or their sight might be impaired by sun glare.

 

  • Don’t use hand—or single finger—gestures other than a wave to someone who lets you into your lane.

 

  • Don’t tailgate slow drivers. Hanging on another car’s back bumper is dangerous. If the car in front of you has to stop short and you rear-end it, the accident would be considered your fault.

 

  • Don’t honk your horn insistently. Leaning on your horn is a bad practice. While it might make you feel better to express your frustration in a traffic jam, it won’t make anyone go any faster, it’s annoying to other drivers and passengers and it increases everyone’s stress level, which may lead to more aggressive behavior.

 

  • Never stop to confront another driver. It could lead to a dangerous situation for all concerned.

Automobile Insurance Tips for 2018

Courtesy of iii.org

The basic personal auto insurance mandated by most U.S. states provides some financial protection if you or another driver using your car causes an accident that damages someone else’s car or property, injures someone or both.

But to make the best decisions about purchasing other types of auto insurance coverage you might need, you’ll want to understand what’s covered, what’s not covered and what’s optional. In addition to understanding types of coverage, you’ll also want to consider coverage amounts.

Why? Because state-required minimums may not cover the costs of a serious accident, so it’s worth considering purchasing higher levels of coverage.

Here’s a rundown of the types of coverage available—some are required; others are optional; all are priced individually (a la carte) to let you customize coverage amounts to suit your exact needs and budget.

Mandatory coverage

Nearly every state requires car owners to carry the following auto liability coverage:

  • Bodily Injury Liability — This covers costs associated with injuries and death that you or another driver causes while driving your car.
  • Property Damage Liability — This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole.

Frequently required coverage

Many states require that you carry the following coverage:

  • Medical Payments or Personal Injury Protection (PIP) — Provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses.
  • Uninsured Motorist Coverage — Reimburses you when an accident is caused by an uninsured motorist—or in the case of a hit-and-run. You can also purchase under insured motorist coverage, which will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.

Even if these types of coverage are optional in your state, consider adding them to your policy for greater financial protection.

Optional coverage

While basic, legally mandated auto insurance covers the cost of damages to other vehicles that you cause while driving, it does not cover damage to your own car. To cover this, you need to purchase the following optional auto insurance coverages:

  • Collision — This optional coverage reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.
  • Comprehensive — This provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards—even getting hit by an asteroid!
  • Glass Coverage — Windshield damage is common, and some auto policies include no-deductible glass coverage, which also includes side windows, rear windows and glass sunroofs. Or you can buy supplemental glass coverage.

Mind the gap… insurance

If you lease or finance your vehicle, auto dealers or lenders will likely require you to purchase collision and comprehensive. But keep in mind that collision and comprehensive only cover the market value of your car, not what you paid for it—and new cars depreciate quickly. If your car is totaled or stolen, there may be a “gap” between what you owe on the vehicle and your insurance coverage. To cover this, you may want to look into purchasing gap insurance to pay the difference. (Note: For leased vehicles, gap coverage is usually rolled into your lease payments.)

Who is covered—and when?

Your auto policy will cover you and other family members on your policy, whether driving your insured car or someone else’s car with permission. Your policy also provides coverage if someone not on your policy is driving your car with your consent.

Your personal auto policy only covers personal driving, whether you’re commuting to work, running errands or taking a trip. Your personal auto policy, however, will not provide coverage if you use your car for commercial purposes—for instance, if you deliver pizzas or operate a delivery service. Note, too, that personal auto insurance will generally not provide coverage if you use your car to provide transportation to others through a ride-sharing service such as Uber or Lyft. Some auto insurers, however, are now offering supplemental insurance products (at additional cost) that extend coverage for vehicle owners providing ride-sharing services.

Learn More: Check out this handy infographic on the types of required and optional drivers insurance coverages.

Do You Need Boating Insurance?

Courtesy of iii.org

Insurance can provide limited coverage for property damage for small boats such as canoes and small sail boats or small power boats with less than 25 mile per hour horse power under a homeowners or renters insurance policy. Coverage is usually about $1,000 or 10 percent of the home’s insured value and generally includes the boat, motor and trailer combined. Liability coverage is typically not included?but it can be added as an endorsement to a homeowners policy. Check with your insurance representative to find out if your boat is covered and what the limits are.

Larger and faster boats such as yachts, and personal watercraft such as jet skis and wave runners require a separate boat insurance policy. The size, type and value of the craft and the water in which you use it factor into how much you will pay for insurance coverage.

For physical loss or damage, coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis. These policies also provide broader liability protection than a homeowners policy. But there are distinct differences between the two types of policies.

Actual Cash Value policies pay for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.

Agreed Amount Value basis policies mean that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss, without any deduction for depreciation.

Physical damage exclusions might include normal wear and tear, damage from insects, mold, animals (such as sharks), zebra mussels, defective machinery or machinery damage.

Boat insurance also covers:

  • Bodily injury?for injuries caused to another person
  • Property damage?for damage caused to someone else’s property
  • Guest passenger liability?for any legal expenses incurred by someone using the boat with the owner’s permission
  • Medical payments?for injuries to the boat owner and other passengers
  • Theft

Most companies offer liability limits that start at $15,000 and can be increased to $300,000. Typical policies include deductibles of $250 for property damage, $500 for theft and $1000 for medical payments. Higher limits may be available. Additional coverage can be purchased for trailers and other accessories. Boat owners may also consider purchasing an umbrella liability policy which will provide additional protection for their boat, home and car.

Boaters should also inquire about special equipment kept on the boat, such as fishing gear, to make sure it is covered and verify that towing coverage is included in the policy.

Boat owners should also inquire about discounts for the following:

  • Diesel powered craft, which are less hazardous than gasoline powered boats as they are less likely to explode
  • Coast Guard approved fire extinguishers
  • Ship-to-shore radios
  • Two years of claims-free experience
  • Multi-policies with the same insurer, such as a car, home or umbrella policy
  • Safety education courses, such as those offered by the Coast Guard Auxiliary, U.S. Power Squadrons, or the American Red Cross.

Boat Safety

There are thousands of recreational boating accidents per year. Contributing factors to these accidents include traveling too fast for water or weather conditions, driving under the influence of drugs or alcohol, failing to follow boating rules and regulations, carelessness and inexperience.

To prevent boating accidents, we offer these safety suggestions:

Care and protection of vessel

  1. Check weather forecasts before heading out.
  2. Let someone know where you’re going and when you expect to return.
  3. Check engine, fuel, electrical and steering systems, especially for exhaust-system leaks.
  4. Carry one or more fire extinguishers, matched to the size and type of boat. Keep them readily accessible and in condition for immediate use.
  5. Equip the vessel with required navigation lights and with a whistle, horn or bell.
  6. Consider additional safety devices, such as a paddle or oars, a first-aid kit, a supply of fresh water, a tool kit and spare parts, a flashlight, flares and a radio.

Care and protection of crew and guests

  1. Make sure that every person on board the boat wears a life-jacket.
  2. Know and obey marine traffic laws, the “Rules-of-the-Road.” Learn various distress signals.
  3. Keep an alert lookout for other watercraft, swimmers, floating debris and shallow waters.
  4. Pay attention to loading. Don’t overload; distribute the load evenly; don’t stand up or shift weight suddenly in a small boat; and don’t permit riding on the bow, seatbacks or gunwales.
  5. Don’t operate a boat while under the influence of alcohol or drugs.

Skippers can obtain free advice and boating-safety courses from the U.S. Coast Guard Auxiliary. Upon request, the auxiliary will conduct a Courtesy Marine Examination (CME) on your boat, checking electrical and safety equipment and fuel hoses. Boats meeting safety standards are awarded the CME decal “Seal of Safety.”

Business Preparations for Hurricane Season

Courtesy of iii.org

No business is totally immune from disaster. Every year, businesses temporarily shut down?or close forever?because of a disaster such as a flood, fire or hurricane. Forty percent of businesses do not reopen after a disaster and another 25 percent fail within one year, according to the Federal Emergency Management Agency (FEMA).

Fortunately, you can take proactive steps to mitigate the impact of a disaster on your business. In addition, carrying adequate insurance coverage can help your business get back on its feet quickly.

Disaster preparation

Households?especially in areas prone to hurricanes, tornadoes and earthquakes?often prepare for disasters by storing extra supplies, having an evacuation plan, and learning about emergency resources. Businesses similarly want to prepare, with a focus on restoring your operations as soon as possible and minimizing your losses. To prepare adequately for a disaster, take the following steps:

  • Develop a formal written plan?Sometimes called a “Disaster Recovery Plan” or “Business Continuity Plan,” this document should detail how your business will respond to and recover from a disaster, including temporarily relocating your business. The National Fire Protection Association (NFPA) has developed a National Preparedness Standard for developing a plan. Some businesses also develop specific plans to protect and recover their information technology (IT) infrastructure. In today’s era of cloud computing, it is increasingly easier to back up data offsite.
  • Train employees?Share your Disaster Recovery Plan with employees, assign responsibilities, and offer training so that your workforce can help your business recover. You may also want to conduct drills to assess and improve response.
  • Store emergency supplies?Keep flashlights, a first-aid kit and a battery-powered radio on hand at your business. Depending on its location, you may even want to store food, water and blankets. As feasible and needed, consider stocking equipment that can help your business return to operations, such as a generator.
  • Maintain key information offsite?To get your business up and operating again after a disaster, you’ll need to be able to access critical business information. In addition to backing up computer data, keep an offsite list of your insurance policies, banking information and the phone numbers of employees, key customers, vendors and suppliers, your insurance professional and others. You’ll also want to maintain an inventory of your business equipment, supplies and merchandise; you may want to photograph items as well.

Disaster response and recovery

After a disaster, you’ll want to put your Disaster Recovery Plan into action. Read the Insurance Information Institute’s “Best Practices for Filing a Business Insurance Claim,” which details several steps to control damage and recover costs. In the immediate aftermath of a disaster, take the following actions as appropriate:

  • Secure your building, boarding up entry points if necessary.
  • Make temporary repairs, especially to minimize further damage, such as placing a tarp over a hole in your roof.
  • Relocate salvageable equipment and property to a safe, protected location.
  • Inspect your property and keep a detailed list of damages; take photos to document damage.
  • Clean up your property, taking care to wear safety gear such as gloves and protective eyewear. If feasible, save damaged property in case it needs to be inspected by your insurance adjuster.
  • Contact your insurance professional and your insurer to begin the claims process.
  • Keep receipts of all expenses related to the disaster.

Once you’ve secured your property and taken other immediate steps, you can begin to focus on making your business operational once again. You should lay the groundwork for restarting operations in your Disaster Recovery Plan. Issues to consider include:

  • Location?Should you open a new temporary location or can you operate from your home or use the facilities of a partner or even friendly competitor?
  • Communications?How will you communicate with your employees, customers, vendors and suppliers?
  • Insurance claims?In addition to filing a property claim, you’ll want to file a business interruption insurance claim, if you carry this type of coverage. This insurance will help you cover costs of relocating as well as lost income.

Insurance Considerations of Airbnb

Courtesy of iii.org

Before you consider renting out your home, your guest room—or even your couch—first contact your insurance professional so you fully understand the financial risks and can take the proper precautions. Here’s some general information to jumpstart your insurance conversation.

If you are considering renting out your home, your guest room or even your couch your first step should be to contact your insurance professional. Peer-to-peer home sharing opportunities such as Airbnb can be a great way to bring in extra money and are increasingly popular; however, they can also leave you financially vulnerable. If your renter starts a fire and damages your property or is hurt while renting your home, will you be protected?

Peer-to-peer home rental

Peer-to-peer home sharing opportunities such as Airbnb are increasingly popular and can be a great way to bring in extra money. However, they can also leave you financially vulnerable. If your renter starts a fire and damages your property or is hurt while renting your home, will you be protected?

Standard homeowners and renters insurance policies are designed for personal risks, not commercial risks. Some insurers now offer a home-sharing liability insurance policy that can be purchased on a month-to-month basis, but there may be exclusions and limitations, so read the policy carefully. If you plan to rent out all or part of your home on a regular basis, many companies will consider this a business use and you may need to purchase a business policy—specifically either a hotel or a bed-and-breakfast policy.

If you are doing the renting

If you are the one using a peer-to-peer network to rent a space from someone else, check your own homeowners or renters insurance policy. In most cases, if your personal possessions are stolen or damaged off-premises, you can simply file a claim with your own insurer. And if you accidentally injure someone, you should also be financially protected.

Occasional home rental

There may be times when a major event in an area—the Super Bowl, say, or a graduation at a major university—depletes local hotel space. In these cases, it’s fairly common for people to rent out their home or part of it for the extra cash it brings in.

Many insurance companies take this situation into account when creating a homeowners or renters policy and, with sufficient advance notice, will extend your coverage to the renter on a one-time basis. Other insurance companies may require the purchase of an endorsement to the policy to provide broader coverage for the renters in your home.

In both cases, be sure to let your insurance company know ahead of time, so you can be prepared.

10 Reasons to Review Your Coverage

Courtesy of iii.org

Coverage needs change as circumstances in our lives change; an annual insurance review will ensure you have the proper coverage for your needs and budget.


Our insurance needs change as circumstances in our lives change, which is why we recommend doing an annual insurance review. When you’re reviewing your insurance coverage, these ten questions can help you figure out whether you may need to talk to your insurance professional about making a change to your coverage.

1. Have you gotten married or divorced?

If you have gotten married, you may qualify for a discount on your auto insurance. Couples may bring two cars into the relationship and two different auto insurance companies, so take the opportunity to review your existing coverage and see which company offers the best combination of price and service.

If you are merging two households, you may need to update your homeowners insurance. And you may want to consider increasing your insurance for any new valuables received, such as wedding gifts, and for jewelry, such as wedding and engagement rings.

After getting married, it is important to review your life insurance needs. If one spouse is not working, he or she might be dependent on the working spouse’s income; if so, reviewing life and disability insurance coverage is prudent. The spouse who is not working outside the home should also consider having a separate life insurance policy because, in the event of premature death, the services he or she provides for the household would need to be replaced, and that could prove costly to the surviving spouse. Moreover, even if both spouses are working, couples often make financial commitments based on both incomes so the loss of one spouse’s income due to death or disability could be financially devastating without adequate insurance.

In the other hand, if you got divorced over the past year, you will probably no longer be sharing a car with your former spouse and have likely moved to a different residence. If this is the case, you should inform your insurer as you will need to set up separate auto and homeowners policies.

2. Have you had a baby?

If you have recently added a child to your family, whether by birth or adoption, it is important to review your life insurance and disability income protection.

If you are planning for your life insurance to match your survivors’ expenses after your death, the new child will no doubt add to those expenses, requiring more life insurance to keep your family secure. If you plan to save for your child’s college education, life insurance can assure completion of that plan. And if you keep your current life insurance policy, don’t forget to update the beneficiary designations to include the new child.

3. Did your teenager get a drivers license?

It is generally cheaper to add your teenagers to your auto insurance policy than for them to purchase their own. If they are going to be driving their own car, consider insuring it with your company so you can get a multi-car discount. And choose the car carefully—the type of car a young person drives can dramatically affect the price of insurance. You and your teens should choose a car that is easy to drive and would offer protection in the event of a crash.

Also, encourage your kids to get good grades and to take a driver training course. Most companies will give discounts for getting at least a “B” average in school and for taking recognized driving courses.

If your teenagers move at least 100 miles from home—for example, to go to college—you can get a discount for the time they are not around to drive the car (assuming they leave the car at home).

4. Have you switched jobs or experienced a significant change in your income?

If you had life and disability insurance through your former employer, and your new employer does not provide equivalent protection, you can replace the “lost” coverage with individual policies.

In the case of an income increase, you may have taken on additional financial commitments that your survivors will depend on. Make sure to review your life and disability insurance to ensure it is adequate to maintain those commitments.

If your income decreased, you may want to cut your life insurance premiums. Term life insurance is a good option, as the premium rates are very reasonable. And if you already have two or more policies you might be able to replace both with a single policy at a lower rate because you may reach a “milestone” amount of insurance. (For example, at many life insurance companies, $500,000 of insurance costs less than $450,000 because of the milestone discount.) But don’t drop existing life insurance until after you have a new policy in place.

5. Have you done extensive renovations on your home?

If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don’t report the changes to your insurance company. An increase in the value of the structure of the home may require an increase to your homeowners insurance coverage limits.

And don’t overlook new structures outside of your home. If you built a gazebo, a new shed for your tools or installed a pool or hot tub, you should speak to your insurance professional.

If, as part of a renovation, you purchase furniture, exercise equipment or electronics, you may need to increase the amount of insurance you have on your personal possessions. Keep receipts and add any new items to your home inventory.

6. Have you decided to buy a second home?

If you are searching for a vacation home or a second home you might retire to, make sure you research the availability and cost of homeowners insurance before you commit to the purchase.

The very factors that make a vacation home seem ideal, whether it is a waterfront property or a mountain retreat, can often introduce risks that make it costly and difficult to insure, such as proximity to the coast and the likelihood that it will be vacant for long periods of time.

In the event you have already bought a vacation home, don’t skimp on the insurance. The risk of theft or disaster is just as significant, if not more so, in a second home as in your primary residence.

If your new property is close to the water, be sure to ask about flood insurance. Damage to your home or belongings resulting from flood is not covered under standard homeowners insurance policies. Flood insurance is available from the National Flood Insurance Program (NFIP), as well as some private insurers, and is generally sold though private agents and brokers. You can ask your insurance professional whether your home is at risk for flood, or enter your address on the NFIP website to find out whether your home is in a flood zone. If you have a very valuable home, some homeowners insurers offer excess flood coverage over and above that provided by the NFIP policies.

7. Have you acquired any new valuables such as jewelry, electronic equipment, fine art, antiques?

A standard homeowners policy offers only limited coverage for highly valuable items. If you have made purchases or received gifts that exceed these limits, you should consider supplementing your policy with a floater or endorsement, a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy, such as accidental loss. Before purchasing a floater, the items covered must be professionally appraised. Keep receipts and add the new items to your home inventory.

8. Have you signed a lease on a house or apartment?

If you are renting a home, your landlord is responsible for insuring the structure of the building, but not for insuring your possessions—that is up to you. If you want to be covered against losses from theft and catastrophes such as fire, lightning and windstorm damage, renters insurance is a good investment. Like homeowners insurance, renters insurance includes liability, which covers your responsibility to other people injured at your home, or elsewhere, by you and pays legal defense costs if you are taken to court.

Regardless of whether you are a renter or an owner, you will have the following options when it comes to insuring your possessions:

  • Actual cash value pays to replace your home or possessions minus a deduction for depreciation.
  • Replacement cost pays the cost of rebuilding or repairing your home or replacing your possessions without a deduction for depreciation.

Think carefully about what your financial position would be in the aftermath of a disaster, and make sure you have the type of policy that is right for you.

9. Have you joined a carpool?

If you are a frequent carpool driver, whether it is to work, or ferrying kids to school and other activities, your liability insurance should reflect the increased risk of additional passengers in the automobile. Check with your insurance professional to make sure your coverage is adequate.

10. Have you retired?

If you commuted regularly to your job, in retirement your mileage has likely plummeted. If so, you should report it to your auto insurer as it could significantly lower the cost of your auto insurance premiums. Furthermore, drivers over the age of 50-55 may get a discount, depending on the insurance company.

Outlook for 2018 Atlantic Hurricanes

Courtesy of iii.org

Colorado State University (CSU) released its updated outlook for the 2018 Atlantic hurricane season today, and they are now calling for a below-normal season with a total of 11 named storms (including Alberto which formed in May), four hurricanes and one major hurricane (maximum sustained winds of 111 miles per hour or greater; Category 3-5 on the Saffir-Simpson Wind Scale) (Figure 1). This prediction is a considerable reduction from their June outlook which called for 14 named storms, six hurricanes and two major hurricanes. Accumulated Cyclone Energy (ACE) and Net Tropical Cyclone (NTC) activity are integrated metrics that take into account the frequency, intensity and duration of storms.

Figure 1: July 2, 2018 outlook for the forthcoming Atlantic hurricane season.

CSU employs a statistical model as one of its primary outlook tools. The statistical model uses historical oceanic and atmospheric data to find predictors that worked well at forecasting prior year’s hurricane activity and has shown considerable skill based on data back to 1982 ). The statistical forecast for 2018 is calling for a below-average season.

CSU also uses an analog approach, whereby the team looks for past years with conditions that were most similar to what they see currently, and what they predict for the peak of the Atlantic hurricane season (August-October). The forecast team currently anticipates below-average to near-average sea surface temperatures (SSTs) in the tropical Atlantic and warm neutral to weak El Niño conditions in the eastern and central Pacific. This averaging of the five analog seasons also calls for a below-average season .

The primary reason for the reduction in the seasonal forecast was due to continued anomalous cooling of the tropical Atlantic. Most of the Atlantic right now is much cooler than normal. (Figure 4). In fact, current sea surface temperature anomalies in the tropical Atlantic are colder than any year since 1994. In addition to providing less fuel for storms, a cooler tropical Atlantic is also associated with a more stable and drier atmosphere as well as higher pressure. All of these conditions tend to suppress Atlantic hurricane activity.

CSU also believes that the chance has increased for a weak El Niño event developing to coincide with the peak of Atlantic hurricane season. El Niños tend to reduce Atlantic hurricane activity through increases in upper-level winds that tear apart hurricanes as they are trying to develop. The dynamical and statistical model guidance is about evenly split between El Niño and neutral (neither El Niño nor La Niña) conditions for the peak of the Atlantic hurricane season (August-October)

Coastal residents are reminded that it takes only one storm to make any hurricane season an “active” one. For example, CSU correctly predicted a quiet Atlantic hurricane season in 1992. The season, in fact, was very quiet, with only seven named storms, four hurricanes and one major hurricane—but that major hurricane happened to be Hurricane Andrew, which tore across south Florida as a Category 5.

Tornado Tips

Courtesy of iii.org

Warnings/watches

Remember that a watch means that weather conditions are favorable for tornadoes and a warning means one has been spotted in your area.

  • Learn the warning signals used in your community. If a siren sounds, that means stay inside and take cover.
  • Consider setting up a neighborhood information program through a club, church group or community group. Hold briefings on safety procedures as tornado season approaches. Set up a system to make sure senior citizens and shut-ins are alerted if there is a tornado warning.

Seeking shelter

Do not try to outrun a tornado. Instead, stay calm and seek shelter.

  • At home or work, seek shelter in the central part of the building, away from windows. Basements are the best havens. If this is not an option, take cover in the bathroom, closet, interior hallway or under a heavy piece of furniture.
  • If you are in your car, abandon your vehicle and seek shelter in the nearest ditch if no other facility is available.
  • People living in mobile homes should vacate the premises and seek shelter elsewhere.

Protecting your property

  • If a tornado watch has been issued, move cars inside a garage or carport to avoid damage from hail that often accompanies tornadoes. Keep your car keys and house keys with you.
  • If time permits, move lawn furniture and yard equipment such as lawnmowers inside. Otherwise they could become damaged or act as dangerous projectiles causing serious injury or damage.
  • Make an inventory of your possessions and store it off the premises. If your belongings are damaged, this list will help facilitate the claim filing process.

Car Insurance & Teens

Courtesy of iii.org

For parents, the excitement of having a first-time driver in the house is usually tempered with worry. With little driving experience, immature drivers are at a higher risk for accidents. Of course, safety concern is uppermost in most parents’ minds but other stressors—like the high cost of insuring your new driver and the financial liability implications of a teen driving mishap—can be reduced with these steps.

Before getting a learners permit, make a call to your insurance professional

Your agent or rep can clearly explain the costs involved in insuring a teenage driver. The good news is, as your teenager gets older, insurance rates will drop—providing he or she has a good driving record. Therefore…

Involve your teen in the car insurance discussion

From the outset, it’s important to talk to your kid about the relationship between driving a car and the attendant responsibilities, including insurance costs. Explain and reinforce driving safety tips and the serious consequences of driving infractions or accidents, including increasing the cost of insurance.

Encourage positive behaviors

Auto insurers offer discounts or reduced premiums to:

  • Students who maintain at least a “B” average in school
  • Teens who take a recognized driver training course
  • College students who attend school at least 100 miles away from home and don’t bring their car to campus

Choose the right auto insurance company

It’s generally less expensive for parents to add teenagers to their auto insurance policy than it is for teens to purchase one on their own. By insuring your teenager’s car with your insurer, you may also qualify for a multi-vehicle discount. That said, insurance companies differ in how they price policies for young drivers, so do some research into prices to be sure to find the best fit for you and your teen.

Assign your teen to the right car

Find out how your insurer assigns drivers to cars—some insurers will assign the driver who is the most expensive to insure (generally the teenager) to the car that is the most expensive to insure. If possible, assign your teen to the least valuable car.

Note that with this kind of arrangement there can be no exceptions; your teen must use only the car to which he or she is assigned, even in an emergency. If your teenager is involved in an accident with an unassigned car, penalties could be imposed and your own premiums might increase.

Increase your liability insurance for greater protection

If your teen gets into an accident, state minimums for liability insurance will not be enough to fully protect you from lawsuits. Consider purchasing higher amounts of liability coverage—if your teenager is found negligent in an accident and the damages exceed your insurance limits, you will be held financially responsible and could be sued in court for those amounts not covered by your insurance. Depending on the value of your financial assets, you may even want to have the extra protection that a personal umbrella liability policy provides.

Raise your deductible to save on your premium

The higher your deductible, the more money you can save on your premium, so consider raising your deductible from the minimum amount required. You may want to use those savings to increase your liability insurance.

Driving and Seniors

Courtesy of iii.org

Older drivers are keeping their licenses longer and driving more miles than ever before.

The high fatality rates of this age group reflect the fact that older drivers are more easily injured than younger people and are more apt to have medical complications and die of those injuries.

There is a growing need to help older drivers sharpen their skills as well as recognize their changing abilities and adapt their driving practices appropriately. Insurers have partnered with state and local governments, and groups such as AARP and the AAA Foundation for Highway Safety to create programs designed to address these needs.

Improving Older Driver Safety

According to the Governors Highway Safety Administration, impairments in three key areas—vision, cognition and motor function—are responsible for higher crash rates for older drivers. Vision declines with age; cognition, which includes memory and attention, can be impacted by medical problems such as dementia and medication side effects; and motor function suffers as flexibility declines due to diseases such as arthritis.

A 2018 report from TRIP, a nonprofit organization that studies transportation issues, calls for transportation improvements that will enable older Americans to maintain their mobility. Since there are about 46 million people age 65 or older, projected to more than double to over 98 million by 2060, roadway safety improvements are increasingly important as 90 percent of travel for this demographic takes place in a private vehicle. Almost 80 percent live in auto-dependent suburban and rural areas. Public transit accounts for only two percent of trips for older Americans. Ridesharing services can help seniors maintain their mobility although they often require the use of smartphones, which are owned by under one-third of older Americans. Self-driving and connected vehicles hold much promise for the mobility of older Americans.

Licensing requirements and restrictions

Many states routinely attempt to identify, assess and regulate older drivers with diminishing abilities who cannot or will not voluntarily modify their driving habits. According to the Insurance Institute for Highway Safety, 18 states require older drivers to renew their drivers licenses more often than the rest of the state’s residents. In addition, 18 states require more frequent vision tests for older motorists. Sixteen states and the District of Columbia prohibit older drivers from renewing licenses by mail or online. One state, Illinois, requires older drivers age 75 and over to take a road test at renewal and the District of Columbia requires a doctor’s approval for drivers over the age of 70 to renew their licenses.

Some states restrict driving activities for people with certain medical conditions or after a serious accident or traffic violation. Depending on their ability, older drivers may be limited to driving during daylight hours or on nonfreeway types of roads. In most states restrictions such as these can be placed on anyone’s drivers license, regardless of age, if his or her medical condition warrants it.

A 2014 study published in the journal Injury Epidemiology found that no policy in state drivers license renewal laws examined had a significant impact on fatal crash involvement of drivers younger than 85 years of age. However, two provisions had some effect on the involvement of older drivers in fatal crashes. Mandatory in-person renewal was associated with a 31 percent reduction in the fatal crash involvement rates of drivers ages 85 and older. In states where in-person renewal was not required, requiring drivers to pass a vision test was associated with a similar reduction for drivers age 85 and older. But in states where in-person renewal was required, mandating a vision test was not associated with any additional reduction, along with requiring a knowledge test or an on-road driving test. Results were also not statistically significant for laws that require more frequent renewal or requiring healthcare providers to report cases concerning their patients’ driving ability.

Insurance discounts

According to the National Association of Insurance Commissioners, as of January 2015, 34 states and the District of Columbia mandated premium discounts for older adults. (These state laws have not been changed since February 2013.) All but Massachusetts require older drivers (usually age 55 and over) to complete an approved-accident prevention course. In addition, 12 states mandate discounts to all drivers (including older drivers) who take defensive driving or other drivers’ education courses. In general, the state-mandated discounts apply to liability coverages because they are most relevant. The regulations can vary by state. For instance, in Massachusetts the older adult discount applies to all coverages for drivers over the age of 65.

In addition, some insurance companies offer discounts in the states in which they do business for drivers who complete defensive driving or other approved courses, including discounts for seniors who take AARP courses.