Personal Auto – Business Insurance Coverage

Is Your Car Spying on You? The Unseen Costs of Telematics Insurance

paperless — Wed, 28 May 2025 21:50:47 +0000

Telematics technology has transformed the auto insurance world, offering dynamic pricing and encouraging safer habits. It works by using a small device or mobile app to track driving behavior, such as speed, braking, and time of travel. While it’s marketed as a win-win for insurers and customers, there are some important downsides that drivers should consider – especially when it comes to how their habits are monitored and interpreted.

Let’s take a closer look at the potential disadvantages of telematics, and why it might not be the right choice for everyone.

1. It Feels Like Constant Surveillance

One of the biggest drawbacks of telematics is how closely it watches you. Every trip is tracked and analyzed – your speed, how hard you brake, how fast you take corners, and even what time you’re on the road. This constant monitoring can feel intrusive, especially for people who value privacy behind the wheel.

2. Driving Data Can Be Misunderstood

Telematics systems look for patterns. If you brake hard or accelerate quickly, the system might flag it as risky driving. But in real-world traffic, those actions are often necessary to avoid hazards. Without the full context, the technology may mislabel defensive or perfectly safe maneuvers as aggressive behavior.

3. Late-Night Drivers Get Penalized

Most telematics programs view driving between late night and early morning hours as more dangerous – and they often adjust pricing accordingly. While this might make sense from a risk perspective, it creates problems for people who work night shifts, care for family, or travel during off-hours for legitimate reasons. The result? Higher premiums, even if your driving is responsible.

4. Technical Glitches Can Skew Your Record

No technology is perfect. GPS signals can drop. Sensors can misfire. Mobile apps might log data incorrectly due to signal loss or software bugs. Unfortunately, these errors can negatively impact your driving score, even if you didn’t do anything wrong. That can lead to disputes with insurers or unexpected increases in cost.

5. It Makes Driving Feel More Stressful

Knowing that every move you make is being recorded can change how you drive – and not always for the better. Some drivers report feeling anxious behind the wheel, worrying constantly about how their habits are being judged. This stress can take away from the natural flow of driving and potentially make drivers overly cautious in a way that’s not actually safer.

6. Lack of Real-World Context

Telematics can’t see everything. It doesn’t know if a child suddenly darted into the street, or if you had to swerve to avoid debris. It can’t judge weather conditions, traffic patterns, or the behavior of others around you. Without this context, the system may flag safe and smart choices as reckless.

7. Your Premiums Could Still Go Up

Many people assume telematics only leads to discounts. But if the system detects what it considers risky behavior, you could actually end up paying more than you would under a traditional policy. In other words, signing up could expose you to financial penalties you weren’t expecting.

8. Experienced Drivers May Not See the Value

For drivers with years of safe experience, telematics might seem unnecessary. Some may even feel it undermines their track record. Instead of rewarding their long-standing habits, it shifts the focus to real-time micromanagement – which can be frustrating for those who feel they’ve already proven their reliability.

Conclusion: Is Telematics Right for You?

Telematics can be a great fit for certain drivers – especially new drivers, those with short commutes, or people who drive mostly during daylight hours. But it’s not for everyone. If you value your privacy, drive at odd hours, or don’t want your habits tracked in minute detail, you may be better off with a more traditional insurance policy.

Before signing up for a telematics program, take time to understand what it measures, how it could affect your premiums, and whether it fits your lifestyle. What seems like a simple device could have a bigger impact on your driving experience than you expect.

Considering telematics? Talk to us, your trusted insurance brokers, first. Understand the pros and cons, and find a policy that truly fits how – and when – you drive.

New Minimum Liability Insurance Limits Coming to California: What You Need to Know

paperless — Thu, 07 Nov 2024 20:30:42 +0000

California drivers, take note! Starting January 1, 2025, a new law will raise the minimum liability insurance requirements for all vehicle owners. This change, enacted through Senate Bill 1107, aims to ensure greater financial protection for all road users. Here’s a breakdown of what this means for you and your auto insurance policy.

What Are the Current Minimum Liability Limits? Currently, California law mandates that vehicle owners carry a minimum liability insurance of:

$15,000 per person and $30,000 per accident for bodily injury.
$5,000 per accident for property damage. These limits are often expressed as 15/30/5.

What Changes with Senate Bill 1107? Effective January 1, 2025, the minimum liability insurance limits will increase to:

$30,000 per person and $60,000 per accident for bodily injury.
$15,000 per accident for property damage. These new limits are known as 30/60/15.

How Will This Affect Your Insurance Policy? If your current liability coverage is below 30/60/15, your insurance provider should automatically adjust your policy to meet these new minimums when it’s time for renewal. This change will lead to an increase in your insurance premium.

In addition, if your uninsured motorists’ coverage is below the minimum permitted by California law, your policy should be updated to meet the required coverage at your next renewal. You’ll receive updated policy documents reflecting these changes without any other alterations to the terms of your auto policy.

What’s Next? Your revised policy documents should be provided at the time of renewal. Updated information on these new limits should become available on your insurance carrier’s website starting from today, November 7, 2024, and will apply to policies effective from January 1, 2025, or later.

Plan Ahead To avoid any surprises, it’s wise to review your current policy coverage now and speak with your insurance agent. Ensuring that your coverage meets the new requirements can help you stay informed and prepared for potential premium changes.

Take the time to review your auto insurance policy today and reach out to your agent with any questions or concerns regarding these upcoming changes.

If you are not happy with the new premium contact us for a competitive personal auto insurance quote. Call 877-239-0067 Option 1, or fill out a short personal auto insurance application online at https://paperless-insurance.com/pers/

Understanding Auto Insurance Scores: What You Need to Know

paperless — Thu, 05 Sep 2024 20:59:58 +0000

When it comes to auto insurance, many factors influence the premium you pay. Among these, one critical but often misunderstood factor is your auto insurance score. This score is derived from your credit report and provides insurers with a predictive measure of your likelihood to file claims in the future. But how does your credit information relate to your insurance score, and why does it matter? This post will break it down for you.

The Role of Your Credit Score in Insurance Rates

Auto insurance companies began using credit scores in the mid-1990s to help determine premium rates. They discovered a notable correlation: individuals with lower credit scores were more likely to file insurance claims, while those with higher credit scores were less likely. This relationship has been validated by studies, such as those conducted by the Bureau of Business Research in 2003 and the Federal Trade Commission in 2007.

Although the connection between credit scores and the likelihood of filing claims is well-established, the underlying reasons are not entirely clear. Some suggest that people who manage their finances responsibly are more likely to exhibit responsible behavior in other aspects of life, including driving. Consequently, these individuals may be less prone to accidents. It’s important to note, however, that not all states allow the use of credit scores in determining auto insurance rates. For example, California, Hawaii, and Massachusetts have laws prohibiting this practice.

Credit Score vs. Auto Insurance Score

Your credit score is just one component in calculating your auto insurance score, also known as a credit-based insurance score. Each insurance company has its own formula for determining how much weight to assign to your insurance score when calculating your rate, which explains why your premium may vary from one insurer to another.

To calculate your insurance score, insurers consider:

Credit score
Accident history
Claim history

These details can be accessed through databases like the Automated Property Loss Underwriting System (A-PLUS) and the Comprehensive Loss Underwriting Exchange (CLUE).

Similar to credit scores, insurance scores are three-digit numbers ranging from 200 to 997. Generally, scores below 500 are viewed as poor, while scores above 770 are considered excellent. If you’re curious about your insurance score, you can request a report from LexisNexis or consult your insurance carrier.

Factors That Influence Your Insurance Score

Several companies, such as FICO, develop credit-based insurance scores by analyzing five key areas to gauge how you manage risk:

Payment history
Outstanding debt
Length of credit history
Pursuit of new credit
Credit mix

These factors are weighted differently to arrive at your total credit score. It’s important to remember that certain personal details—such as race, religion, gender, marital status, age, income, and where you live—are not included in your insurance score.

Concerns Surrounding Credit and Insurance Scores

While the use of credit and insurance scores in determining auto insurance premiums is widespread, it is not without controversy. Some consumer protection groups argue that this practice may be unfair. Before these scores were commonly used, insurance companies relied on traditional actuarial research to set rates—a process that was slower and less accurate. This traditional method involved developing theories about driver behavior and then gathering data to support or refute those theories.

The inclusion of credit and insurance scores in the underwriting process has improved the alignment of insurance rates with actual risk. Low-risk drivers generally benefit from lower premiums, while high-risk drivers are charged rates that more accurately reflect their risk levels.

Improving Your Credit and Insurance Scores

The good news is that improving your credit score can also boost your insurance score and potentially lower your premiums. According to Consumer Reports, a single moving violation could increase premiums by different amounts depending on your credit score. For example, a driver with an excellent credit score might see a $122 increase per year, while someone with a poor score could see an increase of $1,301 for the same violation.

To enhance your credit score, consider the following steps:

Address errors on your credit report: According to the FTC, about one in four people have errors on their credit reports. Regularly review your report and dispute any inaccuracies.
Pay your bills on time: Timely bill payment is a significant factor in your credit score. Consider setting up automatic payments or reminders to avoid late payments.
Reduce your debt: Your credit utilization ratio, which compares your credit card balances to your credit limits, plays a crucial role in your credit score. Aim to keep your balances low by budgeting carefully and seeking financial advice if necessary.

Finally, don’t forget to explore discounts that might be available from your insurance provider. Bundling policies, completing defensive driving courses, and paying your premium in full rather than in installments are just a few ways to save.

Understanding the link between your credit score and your auto insurance score can help you manage your insurance costs more effectively. By taking steps to improve your credit, you can potentially reduce your insurance premiums and gain peace of mind on the road. For personalized advice on how your credit affects your insurance rates, consider reaching out to your insurance agent.

Should You Rent a Car for Your Road Trip?

paperless — Fri, 24 May 2024 21:10:58 +0000

Road trips offer a fantastic way to explore new places, but deciding whether to use your own car or rent one can be tricky. For many, the thought of adding miles to their car or worrying about comfort and reliability, especially on long journeys with family or friends, is a concern. Katherine and Tom Temple, Australian-based travel experts known as The Travelators, suggest that there are both compelling reasons to rent a car for a road trip and valid reasons to stick with your own vehicle. Here’s a closer look at the pros and cons of renting a car for your next adventure.

Reasons to Rent a Car for a Road Trip

More Opportunities to Drive “Off the Beaten Path” Renting a car allows you to choose a vehicle suited for off-road adventures, like a Jeep. This flexibility means you can explore rugged terrains safely, which wouldn’t be possible in a regular sedan. However, always read your rental agreement carefully. Make sure you’re allowed to drive off-road and have adequate insurance and roadside assistance – as many rental agencies specifically warn you not to drive off-road or face a fine or a huge cleaning fee (wink-wink Burning Man)
Choosing the Right Fit When traveling, space is essential. Renting a car gives you the option to pick a vehicle that fits your specific needs, especially if you’re traveling with family or friends and their luggage. A car with a roomy trunk can keep your belongings secure and out of sight, reducing the risk of theft.
Flexibility with Vehicles Renting a car allows you to switch vehicles to match your travel needs at different points of your trip. For instance, you might need a four-wheel-drive vehicle in the rugged terrain of Mesa, Arizona, but prefer a city-friendly car in Phoenix.
Finding the Best Rental Car Companies Don’t limit yourself to one rental company – compare several rental companies to find the best deal and vehicle for your needs. Some companies, like Hertz, offer specialized collections such as the Green Traveler Collection, featuring fuel-efficient hybrid cars. Online providers like Advantage and websites like autoslash.com can also offer competitive rates.
Enjoying New Technology Renting a car provides an opportunity to try out gadgets that are not available in older cars, such as satellite radio, which is a great feature when driving through areas with limited radio stations.

Reasons Not to Rent a Car for a Road Trip

Adapting to a New Vehicle Driving a new car can be challenging. You’re accustomed to your own car’s controls and features, which means a learning curve when you rent a new vehicle. This can be particularly frustrating if you’re on a tight schedule and need to quickly get accustomed to unfamiliar features.
Navigating New Roads Adapting to new roads can be stressful, especially when combined with driving an unfamiliar car. Different traffic patterns and road systems can be daunting, making it harder to enjoy your trip.
Potential Waste of Money If you rent a car and don’t end up using it as much as anticipated, you may feel like you’ve wasted money. To avoid this, plan your itinerary carefully. If most of your destinations are within walking distance or you’ll be spending a lot of time at a relative’s home, consider skipping the rental car.
Public Transportation Might Be Better In cities with excellent public transportation, like Washington, D.C., using the Metro can be more convenient and cost-effective than driving. Public transportation eliminates the need to find and pay for parking, reducing stress and expense.

There isn’t a one-size-fits-all answer to whether you should rent a car for your road trip. Your decision should depend on your personal preferences, destination, and the costs involved in renting versus public transportation. Regardless of your choice, ensure you are well-informed before traveling. Research destinations on TripAdvisor, watch YouTube videos of local driving conditions, and always check if your insurance covers rental cars.

What You Should Know About Gap Insurance

paperless — Fri, 09 Feb 2024 22:34:16 +0000

Purchasing a new car is an exhilarating experience, filled with the promise of road trips and the joy of driving off the dealership lot in a vehicle that’s all yours. However, amidst this excitement, it’s crucial to consider the financial aspects of car ownership, particularly the implications of your auto loan if your car were to meet an unfortunate end through an accident or theft. This is where gap insurance becomes an indispensable part of your financial protection strategy.

Understanding the Value Gap

The moment you drive your new car off the lot, its value begins to depreciate. This depreciation is a natural process, reflecting wear and tear, but it can lead to a situation where you owe more on your auto loan than your car is actually worth. Reports from Edmunds.com highlight that a staggering 44% of car buyers find themselves “underwater” on their loans, with an average deficit of $5,571. This discrepancy arises from factors like minimal down payments, rolling previous loan balances into new ones, and opting for extended-term loans to reduce monthly payments. These choices, while easing the immediate financial burden, slow down the repayment of the principal amount, causing a mismatch between the loan balance and the car’s depreciating value.

The Role of Gap Insurance

Gap insurance is designed to bridge this financial gap. In the event your car is totaled or stolen before the loan is paid off, gap insurance covers the difference between the insurance payout (based on the car’s current value) and the remaining balance on your auto loan. This coverage ensures you’re not left paying out of pocket for a vehicle you no longer possess, providing financial relief and peace of mind during a challenging time.

However, it’s important to note that gap insurance does not cover everything. Items such as extended warranties, overdue payments, and penalties for excessive wear and tear are typically not covered. Furthermore, the necessity of gap insurance depends on your specific financial situation. Comparing the current value of your vehicle against the outstanding loan balance can help determine if this coverage is right for you.

Acquiring Gap Insurance

Gap insurance can be purchased from car dealers, lenders, or your insurance company. The cost and payment method may vary depending on the source. It’s also worth noting that gap insurance is not available in all states, and for those leasing vehicles, it may already be included in the lease agreement.

In addition to gap insurance, car buyers should also consider new car replacement coverage. This coverage goes a step further by promising a replacement vehicle of the same make and model if your new car is totaled within a specific timeframe or mileage limit, ensuring you can get back on the road without financial setback.

Making an Informed Decision

Buying or leasing a new car is more than just an emotional decision; it’s a financial commitment that requires careful consideration of the risks involved. Gap insurance offers a safety net, allowing you to enjoy your new car with the assurance that you’re protected against the unpredictable. While we all hope never to need such coverage, its presence offers invaluable peace of mind and financial security in the face of adversity.

By understanding the details of gap insurance, you can make an informed decision that aligns with your financial situation and car ownership goals. Whether you’re rolling out in a brand new car or considering your next vehicle purchase, taking the time to assess your need for gap insurance is a step towards responsible and stress-free car ownership.

The Kia and Hyundai Theft Challenge: What You Need to Know

paperless — Thu, 06 Jul 2023 19:55:19 +0000

In recent years, there has been a surge in thefts of Kia and Hyundai vehicles. This is due to a security flaw that was exposed on social media, which allows thieves to start the cars without the keys. This flaw has been dubbed the “Kia and Hyundai theft challenge,” and it has led to thousands of vehicles being stolen.

The security flaw is in the cars’ immobilizer systems. The immobilizer is a security feature that prevents the car from being started without the correct key. However, the flaw in the Kia and Hyundai immobilizer systems allows thieves to bypass the system and start the car using a screwdriver or other metal object.

The Kia and Hyundai theft challenge has spread quickly on social media, with videos of thieves stealing cars going viral. This has led to an increase in the number of thefts, as more and more people learn how to exploit the security flaw.

In response to the thefts, Kia and Hyundai have released software updates that are designed to fix the security flaw. However, the updates have not been completely effective, and thefts of Kia and Hyundai vehicles continue to occur.

If you own a Kia or Hyundai vehicle, there are a few things you can do to protect your car from theft. First, make sure that your car is always locked, even when you are in it. Second, keep your keys in a secure location when you are not using them. Third, install a security system in your car.

You can also report any suspicious activity to the police. If you see someone trying to steal a Kia or Hyundai vehicle, please call 911 immediately.

Here are some additional tips to help protect your Kia or Hyundai from theft:

Park in well-lit areas.
Use a steering wheel lock.
Install a kill switch.
Get a tracking device for your car.

By following these tips, you can help to reduce the risk of your Kia or Hyundai being stolen.

Thefts of Kia and Hyundai vehicles are still a problem, even after the software updates were released. If you own one of these vehicles, it is important to take steps to protect your car from theft.

Tinted windows are legal in California

paperless — Thu, 27 Apr 2023 18:31:56 +0000

Window tinting is a popular trend among drivers in California, but it’s crucial to know the state’s legal guidelines. Tinted windows can obstruct a driver’s vision and potentially cause accidents. According to CHP, the rules for tinting windows in California are as follows:

Rear Windows
Drivers can tint their rear windows as long as their vehicle has two side mirrors, excluding the rearview mirror.

Front Windows
For front windows, California law mandates drivers to have 70% transparency, allowing only 30% tint. Window glass usually comes with approximately 30% tint from the factory, and adding an additional 30% tint can exceed the legal amount of light transparency.

Front Windshields
Drivers can tint their front windshields if they follow a mathematical formula. This formula includes measuring four inches out from the bottom and the back of the driver’s seat and then 29 inches up. The tint cannot cross the horizontal plane. The general rule of thumb is to keep the tint within four inches of the top of the windshield.

Potential Exceptions
Having a doctor’s note does not permit drivers to tint their front windows permanently. They may use a temporary shade, but it must be removable. Drivers with skin cancer can use legal film on their front windows for UV protection, but it must have 88% transparency. Certified dealers must install the film, and drivers must have a certificate of authenticity.

Colored Tint
Tinting windows with red, blue, or amber colors is illegal in California.

Violations
Violating California’s window tint laws may result in a fix-it ticket. However, repeat offenders may face misdemeanor charges for failing to comply with the law.

In conclusion, while tinted windows can be legal in California, it’s crucial to follow the rules to avoid potential fines and ensure everyone’s safety on the road.

New Car Tech Available Today

paperless — Wed, 15 Feb 2023 21:21:44 +0000

The automotive industry is on the cusp of a technological revolution. Car manufacturers are constantly introducing new innovations to improve the driving experience and make it safer, more comfortable, and more convenient. From keyless entry to self-driving cars, the future of automotive technology is looking brighter than ever before. In this article, we will explore some of the latest car tech that is headed our way.

Keyless Entry

Keyless entry is a technology that allows you to unlock and start your car without a physical key. It uses a key fob or smartphone app to communicate with your car’s computer and unlock the doors. The key fob can also be used to start the engine, which is especially helpful on cold mornings.

Pros: Keyless entry makes it easier and more convenient to access your car. You don’t have to fumble with keys, and you can unlock your car from a distance. This technology also enhances security by making it difficult for thieves to steal your car.

Cons: Keyless entry is vulnerable to hacking and relay attacks. Hackers can use specialized equipment to intercept the signal between the key fob and the car, allowing them to unlock and steal the vehicle.

Blind Spot Monitoring

Blind-spot monitoring is a safety feature that helps drivers see what is happening in their blind spots. The technology uses cameras or sensors to detect vehicles that are out of the driver’s view and alerts the driver with an audible or visual warning.

Pros: Blind spot monitoring can help prevent accidents by alerting the driver to vehicles that they may not be able to see. It is especially useful for drivers of large vehicles, such as trucks and SUVs.

Cons: Blind spot monitoring can be overly sensitive and may produce false alarms, which can be distracting to the driver.

Lane Keep Assist

Lane keep assist is a technology that helps drivers stay in their lane. The system uses cameras or sensors to detect when the car is drifting out of its lane and alerts the driver with an audible or visual warning. In some cases, the system will also steer the car back into its lane.

Pros: Lane keep assist can help prevent accidents by keeping the driver in their lane. It is especially helpful for drivers who may be fatigued or distracted.

Cons: Lane keep assist may not always work properly, and it can be difficult to override the system if necessary. The technology may also be overly sensitive and produce false alarms, which can be distracting to the driver.

Automatic Braking

Automatic braking is a safety feature that can help prevent collisions. The system uses cameras or sensors to detect when the car is approaching another vehicle or object and applies the brakes automatically to avoid a collision.

Pros: Automatic braking can help prevent accidents by applying the brakes when the driver may not be able to react quickly enough. This technology can be especially helpful in heavy traffic or when driving in inclement weather.

Cons: Automatic braking may not always work properly, and it can be difficult to override the system if necessary. The technology may also be overly sensitive and produce false alarms, which can be distracting to the driver.

Telematics

Telematics is a technology that allows vehicles to communicate with other devices and networks. It can be used to track a vehicle’s location, monitor its performance, and provide real-time updates to drivers.

Pros: Telematics can be used to improve the driving experience by providing real-time traffic updates and navigation assistance. It can also be used to track a vehicle’s maintenance needs and provide alerts when service is required.

Cons: Telematics may be vulnerable to hacking, and it can be difficult to ensure the privacy of drivers’ data. The technology may also be expensive to install and maintain.

Self-Healing Tires

Self-healing tires are a new technology that

uses materials that can repair small punctures in the tire tread. The technology involves adding rubber polymers or sealant into the tire compound that can fill holes caused by nails or other sharp objects. The sealant can also prevent air loss and maintain tire pressure.

Pros: Self-healing tires can save drivers time and money by reducing the need for tire repairs or replacements. The technology can also improve safety by preventing tire blowouts and reducing the risk of accidents caused by sudden flat tires.

Cons: Self-healing tires may not be able to repair larger punctures or damage caused by extreme weather conditions or rough terrain. The technology may also be more expensive than traditional tires.

The Connected Car

The connected car is a term used to describe vehicles that are equipped with internet connectivity and can communicate with other devices and networks. This technology enables cars to access real-time traffic updates, weather reports, and navigation information. It can also be used to remotely control car functions such as locking and unlocking doors, adjusting temperature, and starting the engine.

Pros: The connected car can provide drivers with up-to-date information that can improve their driving experience. The technology can also enhance safety by providing automatic emergency assistance in the event of an accident or breakdown.

Cons: The connected car may be vulnerable to cyber-attacks and data breaches. The technology can also be expensive to install and maintain.

Car Seat Technology

Car seat technology has come a long way in recent years. Today’s car seats can be equipped with a variety of features, including built-in airbags, adjustable headrests, and heating and cooling functions. Some car seats can also be adjusted to fit the specific needs of the driver or passenger, such as providing extra lumbar support or adjusting the height and angle of the seat.

Pros: Car seat technology can improve comfort and reduce fatigue during long drives. The technology can also enhance safety by providing additional protection in the event of a collision.

Cons: Car seat technology can be expensive to install and maintain. The technology may also be overly complicated and difficult to use for some drivers.

Navigation Systems

Navigation systems have become an essential feature of modern cars. These systems use GPS technology to provide drivers with real-time directions and traffic updates. Some navigation systems can also be integrated with other car features, such as music players or climate control systems.

Pros: Navigation systems can help drivers save time and avoid traffic congestion. The technology can also enhance safety by providing accurate directions and reducing the risk of getting lost.

Cons: Navigation systems can be expensive to install and maintain. The technology may also be distracting to some drivers, and overly-reliance on the system can lead to inattention to the road and potential accidents.

In conclusion, the automotive industry is constantly introducing new car technologies that are designed to make driving safer, more comfortable, and more convenient. While these technologies offer numerous benefits, they also come with potential drawbacks and limitations. Drivers should consider the pros and cons of each technology before making a decision to incorporate them into their driving experience. As technology continues to advance, we can expect even more innovations that will shape the future of the automotive industry.

10 Most Common Auto Insurance Claims and How to Avoid Them

paperless — Thu, 08 Sep 2022 20:12:15 +0000

The Auto Claim: Rear-End Crash

A rear-end crash is one of the most common accidents on the road, and one of the most avoidable. Outside of inclement weather and poor road conditions, most rear end accidents are a result of following too closely or not paying attention when driving.

The easiest way to avoid this type of collision is to put down your phone when driving. According to the U.S. Department of Transportation, in 2019 there were 50,930 drivers involved in fatal accidents where a driver was distracted resulting in 36,096 deaths.

In March 2016, The U.S. Department of Transportation’s National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety recognized that 20 national automakers will be adding automatic braking to all their new cars by 2022. This new safety feature will help “prevent crashes and save lives” says U.S. Transportation Secretary Anthony Foxx. More than 10 automakers have gotten a jump start on adding automatic breaking to their new cars, well before the 2022 deadline.

The Auto Claim: Windshield Damage

Windshield chips and crack claims take a top spot on this list, yet many drivers don’t believe this type of damage is avoidable. While you can’t make rocks and pebbles stay on the ground, you can take steps to avoid the most common situations where windshield damage takes place.

Most chips and cracks come from rocks thrown up in the air by large trucks, snow removal equipment and other debris from the road. If you can keep your distance from these trucks and situations, you are doing your windshield and your wallet a favor.

For example, if you live in an area with dirt and gravel roads, keep your distance when trucks turn on or off of an unpaved road. In areas with frequent snow and ice, leave plenty of room between yourself and all other cars. If you see plows ahead, add extra distance as plows often drop gravel on the road to help improve traction on potentially icy roads.

The Auto Claim: Stolen Catalytic Converter

Across the nation, law enforcement is reporting a dramatic increase in the theft of catalytic converters from personal vehicles. According to the National Insurance Crime Bureau (NICB), there were fewer than 1,300 such thefts reported in 2018. That number jumped to more than 14,000 in 2020.

Hybrid vehicles, trucks and SUVs are popular targets. Because a hybrid car doesn’t use the gas engine as often, the catalytic converter retains more of its precious metals. Trucks and SUVs can also be targets because it’s easier for thieves to slide underneath the vehicle where the converter is located.

Take these steps to help prevent theft of your vehicle’s catalytic converter:

Park your vehicle in your home garage or another secured parking area. If you don’t have a home garage, install motion sensor lights in your driveway or park in a well-lit, highly visible area with security cameras.
If you have a high-riding vehicle, like a truck or SUV, back into parking spaces near lower profile cars, fences, bushes or other obstacles to make it more difficult to access underneath your vehicle.
Set your car alarm to respond to vibrations, if you have one.
Purchase a specialized clamp or shield to protect your catalytic converter. Talk with a trusted mechanic or dealership to determine if one is right for your vehicle.
Talk to your local body shop about etching your vehicle’s VIN on the catalytic converter. VIN etching can help police identify the owner and aid in a criminal investigation. It can also alert metal recyclers that the catalytic converter may have been stolen.

The Auto Claim: Damage to a Parked Vehicle

Have you ever returned to your parked car to find that it’s been nicked, dented or scratched? While you can’t always avoid parking lots, you can take some steps to protect your vehicle and the items inside it.

If you have a garage, that is the safest place to park. When away from home, avoid parking too closely to other cars. Try to park away from tight corners, turns and driveways where someone may bump or scrape your car when passing by.

The Auto Claim: Theft to a Parked Vehicle

No matter where your car is parked, there is always a risk of a break in. By taking a few precautions when leaving your car, you can lower the chance of a thief getting in. Never leave your valuable items in view when you park your car. Put them inside consoles within your car, a closed off trunk or take them with you. When parking, make sure you are in a well-lit area, especially at night.

The Auto Claim: Backup Accident

Backup accidents are more common than you think. Whether you’re pulling out of a shopping plaza, or even backing out of your own driveway, an accident can occur easily. That’s why the NHTSA now requires all new cars to have a backup camera, something we started seeing in all 2019 models.

Many cars today are already equipped with backup cameras. The best step you can take to avoid a backup accident is to get a camera equipped vehicle. You can also buy a backup camera kit for your car for around $70 to $300 depending on the features you want.

To avoid a disastrous back up accident, there are a few tips you can follow:

Before getting into your car, take a look around to take in traffic and other surroundings
When backing out, go the shortest distance possible
Back out slowly, using brakes and mirrors until you’re fully out of the spot
Reverse in a straight line
Stay off handheld devices when backing out to avoid distraction.

The Auto Claim: Single Car Crash

According to a report from the Insurance Institute of Highway Safety, 53% of fatal crashes in 2019 were single-vehicle. This statistic translates to over 19,000 deaths. Again, outside of weather-related incidents, the majority of these crashes are avoidable. These crashes cause immense traffic jams or even can contribute to more accidents.

Drowsy driving is a factor that can lead to single car crashes. Drivers falling asleep behind the wheel are incredibly dangerous. According to a study done by the AAA Foundation for Traffic Safety, one in five fatal crashes in the United States involves a drowsy driver. Younger drivers are more likely to drive when drowsy than older, more experienced drivers, according to the survey results.

Road rage can also cause a single car crash based off of an immediate reaction. A study by AAA found that almost 80% of drivers “expressed significant anger, aggression or road rage … at least once in the past year.”

New technologies exist to ensure cars stay in the correct lane, even if the driver nods off, but it will be a long while before that reaches the majority of cars on the road. In the meantime, never risk driving after drinking, drug use or any time there is even a remote possibility you won’t be able to safely reach your destination. Also talk to your doctor and check your medications to see if it’s ok to drive while taking them.

The Auto Claim: Hail damage

“Hail Alley,” where Nebraska, Colorado and Wyoming meet, averages seven to nine hail days a year, according to the National Severe Storms Laboratory. Frequent damage includes plenty of vehicles with broken windshields, dented hoods and water damage.

Tip:

Using your garage for extra storage might seem like a great way to add more space to your home, but it may not be worth it if it means your car will be unprotected when the bad weather hits. You are best off parking where your car is covered if possible in the summer thunderstorm months no matter where you live.

The Auto Claim: Personal Injury

Back and neck injuries are very common with car accidents. Even a minor fender bender can lead to whiplash, back and neck pain and other minor injuries. At higher speeds and intersections, injuries get more serious.

The best way to avoid injuries is to follow traffic laws and always wear your seat belt. As a general rule, the newer the car, the safer it is. Over time, the government and car makers introduce new safety standards and technologies, like backup cameras and crash avoidance systems. If you have the means to drive a newer, safer car with top safety ratings, upgrading is one of the best options you have to help prevent injury in the event of an accident.

The Auto Claim: Crash at Intersection

Busy and confusing intersections are ripe for a crash, but they can happen at any intersection at any time. Never take it for granted that other drivers will obey traffic signals and be alert when approaching an intersection.

When preparing to go after stopping at a red light, take a moment to look for other drivers speeding to make it through a yellow light. If you are that driver approaching a light that turns yellow, make the cautious decision and hit the brakes. This will not only save yourself but even pedestrians walking near the scene.

The Federal Highway Administration works with cities, states, insurance companies, transportation experts and other concerned citizens to make intersections as safe as possible. But at the end of the day, it falls on us as drivers to make the best decisions to help everyone reach their destination safely.

Take the Steps to Stay Safe

As a driver, you have the power to drive safely and take steps to avoid these common insurance claims. If you do, you will help make sure you and your family are safer along with everyone else on the road. As a bonus, safe driving and avoiding claims may lead to car insurance savings.

Every time you get behind the wheel, you are responsible for both safe driving and defensive driving. Knowing what to look out for, like cognitive distractions, best prepares you to end every journey with a safe arrival.

Guide on Buying Collector Car

paperless — Thu, 07 Jul 2022 23:30:08 +0000

You’re in the market for a collector car? Congratulations! Most new buyers can’t wait to run out and make a purchase, whether it’s a car, truck or motorcycle. But next to buying a home, a collector vehicle may be one of the bigger financial transactions most people ever make.

You likely wouldn’t purchase the first home you tour, and you should approach purchasing an enthusiast vehicle with the same planning and forethought.

Buying a collector vehicle should never be intimidating.

What Makes a Car Collectible?

In the simplest terms, think of a collector vehicle as the car you want to own for fun, not the one you need for daily transportation.

Through an insurance lens, a collector vehicle is defined as a car, truck or motorcycle, used as an extra vehicle (not a daily driver), that is well-maintained and holding steady (or increasing) in value.

You’ll notice that age is not a defining factor. That’s because collector cars include fun-to-drive vehicles from almost any era. This includes early Model-Ts up through 1950s hot rods and street rods to muscle cars of the ‘70s. Believe it or not, vehicles from the 1980s and ‘90s are now considered classics. Even select modern cars up to the present day are collectible.

But rare cars of any era, including exotics and high-performance supercars (think Porsche 911s, Dodge Vipers, Maseratis, and Ferraris), can also make the cut.

What really drives demand (and values) in classic and collector vehicles is a combination of the car and desirable options and equipment. For example, Corvettes in the ‘60s came standard with a three-speed manual transmission, but most buyers wanted a four-speed or an automatic. Three-speed Corvettes are not more valuable even though they are very rare.

Equipment like power windows, hardtops for convertibles, and more powerful engines drive higher values (and thus, higher prices). These options make the car more desirable in the eyes of buyers.

In many cases – especially when there are multiple examples of a particular make and model on the market – the buyer (that’s you!) has an advantage. And sometimes that advantage can be turned into bargaining power.

However, when you’re looking at a very rare or one-of-a-kind vehicle, especially these days, there may not be much room to negotiate.

Classic, Antique and Vintage Vehicles…What’s the Difference?

While these terms may seem interchangeable around the kitchen table, there are subtle differences within the collector car space – and it usually comes down to age.

Vintage cars are typically those produced between 1919 and 1930. At (or nearly) 100 years old, it’s exceedingly difficult to find these vehicles, and they’re usually reserved for car show displays and occasional parade routes. Think 1919 Ford Model Ts and 1926 Pontiac Boat Tail Speedsters.
Antique cars generally refer to any vehicle age 25 or older, according to the Antique Automobile Club of America. Believe it or not, this era now includes vehicles from the 1980s and ‘90s, which are among the fastest-growing sectors of the collector car market.
A classic car, as defined by the Classic Car Club of America, is a “fine or distinctive automobile, American or Foreign built, produced between 1915 and 1948. Generally, a Classic was high-priced when new and was built in limited quantities.” Over time this term has evolved to describe cars at least 25 years old and generally those produced in the 1950s, ‘60s and ‘70s.

Are these definitions absolute? Not really. If you ask ten different people, you’ll probably get ten different answers.

And remember: Any type of vehicle may be considered collectible (or not) based on its condition and scarcity. Even a late-model supercar or high-performance exotic may qualify due to its collectability and use.

All that really matters is that you find the car you love.

What Questions Should You Ask Before Purchasing a Collector Car?

You may already have a good idea of the type of car you’re looking for. But which model or particular vehicle may depend upon how you intend to use it. Some questions to consider:

Do you want a show car to win prizes but have little interest in driving it?
Do you want a car for distance driving and touring?
Will you use it for racing or rallying?
Do you want a car to cruise around town and take to local shows?
Do you prefer to do your own maintenance work or do you want to have someone else do it?
Will you share your hobby activities with the family or drive the car solo?

The greater the manufactured number of a given make or model, the better your chance of finding that particular vehicle in a wide range of conditions. In most cases, it will be easier to find a presentable car for driving and touring than one that is in the superb condition required to win shows.

Once you’ve found a car you like, it’s time to do some detective work. Ask a lot of questions so you have a clear picture of the vehicle, its history, why the owner is selling it and what kind of documentation goes with the car. Most importantly, make sure you understand the vehicle’s condition.

Are the car’s mechanicals sound? Is there body rust? Does the paint look good in different light? Are there any chrome faults? If you’re not sure what to look for, any reputable mechanic can help.

Bottom line: Always do your homework. If the car is some distance away, ask for additional photos. This may be your dream car, but the condition or a questionable history may save you the time and effort of seeing it in person.

What’s Important When Looking to Insure a Collector Car?

You’ve inspected the car, agreed on a transaction price, completed the paperwork, and made the payment. The car is now legally yours, which means you need to have it insured, preferably with a reputable company specializing in collector car insurance.

Benefits of your insurance policy should include:

Guaranteed Value Coverage: get the true value of your vehicle and a policy that guarantees you’re paid every cent of your car’s insured value in the event of a covered total loss (less deductible and/or salvage value). Guaranteed Value includes all taxes and fees unless prohibited by law.

Freedom to Drive: Vehicles can’t just be driven daily to work or school. Flexible usage means you’re not limited to parades and car shows. You’re protected whether you’re headed to a show, a race, or the beach. Drive your car for the fun of it; that’s what it was made for.

Exceptional Claims Service: claims adjusters and parts specialists love cars just as much as you do. This expert team knows your vehicle requires specialized labor that comes at a higher cost, which your policy covers. You can even get paid to do the repairs yourself.

We hope to see you on the road!