Car Insurance

Ever tried to eat a hamburger while driving? What about trying to separate your two fighting kids in the back seat? Ever reached down to pick up a CD that fell on the floor while driving? These are just a few of the most common driver distractions.

We all become more comfortable driving as the years progress, but unfortunately many of us become a little too confident. Your license to drive is not a license to drive while simultaneously putting on your makeup and shoving down a quick breakfast.

Let’s take a look at some common distractions. Are you guilty of performing any of these activities while driving?

* Outside Distractions. Whether it’s a restaurant that just opened, a human billboard pointing the way to new homes, a beautiful rainbow or a bad accident, most of us just cannot resist the urge to take a peek, even when we should be concentrating on the road.
* Sicknesses. A sudden onset of sneezes, a bad cough and searching your car for a tissue to catch that runny nose are all examples of how being sick can distract you from driving. Not to mention the fact that most of us are not at our most alert when we are sick. That’s why it is extra important to pay attention to the road and to wait until you are stopped at a traffic light to reach for that tissue. Of course we can’t predict sneezes, but make sure you quickly look back to the road after you sneeze.
* Inspector Gadget. Cars these days often have more controls than a small plane. Besides the obvious stereo and temperature controls, many cars have features such as navigation systems and televisions. CD players can be especially distracting, as it takes at least one hand off the wheel to pick out a CD and put it in, especially if your pack of CDs is on the ground and you have to reach for them…which brings us to…
* Reaching for the Unreachable. We are all guilty of this at one time or another. For some reason, we just HAVE to have that book in the back seat in our hands now. But this is one of the worst driver distractions…as it usually means that our hand or hands are off the wheel AND our eyes are off the road. Next time, try to make yourself wait to grab that errant CD until you are stopped at a traffic light. Or, if it’s safe, pull over and grab whatever you need.
* Eating and Drinking. One of the most common driver distractions is eating and/or drinking while driving. These days, we all seem to be in a rush, and many of us try to scarf down our breakfast or lunch on our way to work. Some of the worst foods to eat while driving are coffee/tea (a hot spill on your leg will certainly distract you), messy hamburgers or sandwiches that drop stuff all over you while you are driving, anything fried that leaves you with greasy hands that could slip off the steering wheel, and, similarly, things like chocolate and jelly doughnuts that leave your hands sticky or slick. Try to avoid eating on the road whenever possible. If you are in a rush, grab a quick bite and eat it in the parking lot before leaving.
* Distracting Discussions. Ever gotten in a heated debate while driving? What about listening and intervening as your children in the backseat start arguing? Interaction with your passengers is another common driving distraction. This can especially be a problem for new drivers, who should focus all their attention on their driving and not on their passengers.
* Beautification. Again, you’re running late. You forgot to put on your mascara/brush your hair/shave. What better place to do it then in the car, right? Wrong! Things that involve tools not only take your hands off the wheel and your eyes off the road, they also have the potential to hurt you and cause further distraction. If you are a woman putting on your mascara or a man shaving, and you have to brake suddenly, think of the injuries that could ensue!
* Cell Phones. You knew we’d get to this one eventually. Cell phone use in cars has been a hot topic ever since cell phones started becoming popular. We all know that talking on our phones can distract our attention from driving. We all know that we should use hands-free devices whenever possible (although these can still be a distraction, just like the distracting discussions topic above). Yet a large percentage of us still talk on our cell phones frequently while driving. Try to keep your cell phone use while driving limited to emergencies only. If you get a call you really want to take, pull over in a safe spot and have your conversation.

The National Highway Traffic Safety Administration states that distracted driving causes around 25 percent of the auto accidents in the U.S. each year. That’s nearly 1.6 million accidents annually caused by many of the things we discussed above, most of which are so easily preventable. Try to avoid letting distractions take your attention away from what you should be doing, concentrating on driving and protecting the lives of you and your passengers.

With the year 2003 in the history books, auto insurance prices looked to have continued their upward trend during the year, and are expected to increase throughout 2004.

Consumers at InsWeb, and consumers shopping for auto insurance in general, continue to see their premiums increase. During the period of the first quarter of 2000 (when InsWeb began tracking pricing data) through the second quarter of 2003, prices increased 54 percent (according to the InsWeb Auto Insurance Index).

After nearly a decade of only modest price increases, auto insurance prices started trending sharply upward in 2000.

Reasons for the increases include rising claims costs driven primarily by medical costs, significantly higher vehicle repair costs, rising jury awards, insurance fraud and abuse, as well as increasing auto theft.

According to data from the InsWeb Auto Insurance Index, as a whole, prices for auto insurance nationwide in 2002 increased by approximately 11 percent over the prior year. For example, the average price quoted for a six-month auto insurance policy on InsWeb’s marketplace during 2002 was $1,350 compared to $1,200 during 2001. And experts at the Insurance Information Institute (III) project that prices rose by approximately 8.5 percent in 2003.

Just because it is a new year does not mean consumers can expect prices to level out or decrease. However, the percentage by which prices increase may start to decline a bit. The III speculates auto insurance rates will rise by about 6 percent in 2004, as opposed to the 8.5 percent projection in 2003 and 11 percent increase (according to the InsWeb Index) in 2002.

What Can Consumers Do?
“The Index suggests that prices continue to rise, and that consumers could save hundreds of dollars by shopping for their insurance online,” said Hussein Enan, chairman of InsWeb. “For example, a recent internal analysis showed that consumers presented with five or more quotes at InsWeb saw a quote that was on average more than $500 lower than consumers presented with only three quotes. This difference increased the more quotes consumers saw and demonstrates the benefits of evaluating multiple carrier offerings.”

Mr. Enan also says, “Auto insurance is a major expenditure for the average household. A few minutes spent researching alternatives can save most consumers several hundred dollars, and help them mitigate the effects of price inflation.”

While everyone that drives in this country has to have some form of auto insurance by law, many do not understand the basics of their policies. While we don’t all have to be auto insurance experts, it is important to at least comprehend the major bricks that build our auto insurance policies.

There are five parts of a typical auto insurance contract (the titles of these sections may differ slightly from insurer to insurer, but they all address basically the same points):

Declarations. This part of your policy is unique to you; it contains the personal facts for drivers in your household such as name and address, make and model of your vehicle(s), vehicle identification number(s), policy number and policy duration. It also contains the basic type of coverage you purchased and your policy limits and deductibles. Tip: Make sure your information is accurate; your claim may be denied if you provide inaccurate information to your insurer.

Coverage Parts/Insuring Agreement. This section outlines the coverage options and coverage limits that you purchased, such as liability, medical, collision and comprehensive. This section basically outlines what your insurance company promises to provide in return for your payment, based on the coverages and coverage limits you selected.

Exclusions. This section simply details what is not covered by highlighting your policy’s limitations. Combined with the section above, this ensures that you know exactly what will be covered when you make a claim. It also shows you some possible deficiencies that you might want to correct down the line.

Conditions. This is where the legal responsibilities of both the insured and the insurer are listed, including premium payment obligations, steps to filing a claim, and procedures for resolving disagreements.

Definitions. This section defines terms and outlines the rights of the policyholder and the insurance company. This section is often referred to as the “fine print.”

Now, let’s define some general coverages. For more definitions, please refer to the various auto insurance glossaries listed in our auto learning center.

Collision Coverage. This covers loss to your own auto caused by its collision with another vehicle or object. If you cause an accident, collision coverage will pay to repair your vehicle, and is normally the most expensive part of an auto insurance policy. You must choose a deductible, which is the amount you, the insured, must pay before the insurance company pays the remainder of each covered loss. The higher the deductible, the lower the premium costs. However, keep in mind that this is the amount you must pay (generally to the repair shop) if your vehicle is damaged, so deciding on your deductible, which directly affects your premium, can be a bit of a balancing act.

Comprehensive Coverage. This covers damage to your vehicle caused by an event other than a collision or overturn. Examples include fire, theft, vandalism, and falling objects. This also comes with a deductible you select, which is how much you will pay before the insurance company pays the remainder.

Liability. The official definition of liability from the InsWeb glossary is: “That portion of the insurance contract which pays and renders service on behalf of an insured for a covered loss arising out of the insured’s responsibility to others imposed by law or assumed by contract.” In simpler terms, if you are at fault in an accident, liability insurance will pay to cover injuries and property damage costs caused to others in the accident (including your legal defense costs, if applicable). Bodily injury coverage pays for things like medical costs and lost salary to others; while property damage pays for repairs to other people’s property you damaged in the accident (other than your own car). Liability coverage (which is the state mandated part of your policy) is the basic building block of any auto policy, and minimum liability limits vary from state to state.

Below are some common extra coverage items that are available to you:

Medical Payments
This pays you and your passengers for medical and funeral expenses incurred in an auto accident, regardless of fault. It will also cover injuries sustained by you while you’re operating someone else’s car (with their permission), in addition to injuries you or your family members incur when you are pedestrians.

Personal Injury Protection
This is the name usually given to no-fault benefits in states that have enacted mandatory or optional no-fault auto insurance laws. Personal Injury Protection (PIP) usually includes benefits for medical expenses, loss of income from work, essential services, accidental death, funeral expenses, and survivor benefits.

No-Fault Insurance
Many states have enacted auto accident compensation laws permitting auto accident victims to collect directly from their own insurance companies for medical and hospital expenses regardless of who was at fault in the accident. Although there are many legal variations of no-fault insurance, most states still allow people to sue the negligent party if the amount of damages exceeds a certain state-determined threshold.

Uninsured/Underinsured Motorists Coverage:

Uninsured Motorists Bodily Injury
Uninsured Motorists Bodily Injury (UMBI) covers you for all sums (up to your policy limits) if an accident occurs with an uninsured or hit-and-run motorist who is determined to be legally at fault.

Underinsured Motorists Bodily Injury
Underinsured Motorist Bodily Injury covers you for all sums (up to your policy limits) if an accident occurs with a motorist who is underinsured (i.e., they carry bodily injury limits less than your UMBI limits and less than the amount of the injuries).

Uninsured Motorists Property Damage
Uninsured Motorist Property Damage (UMPD) Liability coverage pays for property damages caused by uninsured drivers.

There are also other extra items, such as rental reimbursement and towing and labor charges in case of a breakdown. As mentioned above, please visit the InsWeb Auto Insurance Glossary for further definitions.

Do you know if any part of your auto has been recalled? Do you know how to find out? Many drivers may not know how to find out if the manufacturer of their vehicle has issued a recall. Maybe you moved since you bought your vehicle, and the manufacturer does not have a current address to send a recall notice (which must be sent by law) to you, meaning you may not receive important information about your vehicle. The following information is provided by the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) about some of the latest recalls to hit the market. To check if anything on your auto has been recalled by the manufacturer, use InsWeb’s Auto Recall Search.

NHTSA Publishes List of July 2003 Recalls

The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) today released a list of auto safety recalls announced in July 2003 and urged consumers to have the problems fixed promptly.

This list identifies the make and model of the vehicle or equipment involved, with a brief description of the safety problem.

NHTSA said it is publicizing the recalls to alert consumers about safety problems and encourages them to take action. Under federal law, safety problems must be remedied without cost to consumers. Currently, 72 percent of the owners of vehicles with safety problems have the recall work performed.

NHTSA said manufacturers are required to mail a recall notice to all purchasers, owners, and dealers when a safety defect or noncompliance with Federal safety standards is found. The agency urges owners to wait until they receive notification from the manufacturer before contacting their dealers to schedule the repair work. Not all vehicles of a particular make and model may be subject to the recall.

Consumers can get up-to-the-minute information on safety recall campaigns, or information on the recall history of a particular make and model of car, truck, motorcycle, or child safety seat, by calling the agency’s toll-free Auto Safety Hotline at 1-888-327-4236 or by accessing NHTSA on the Internet at www.nhtsa.dot.gov. The Hotline also can be used to report safety problems.

As we all know, there are many factors that influence our auto insurance costs, including the cars that we drive, the places we live, and our genders, ages and driving records. When it comes to the car we drive, a major consideration for insurers is whether that car is frequently stolen. If your car is on the list of most stolen vehicles, most insurance companies will charge you a higher rate to insure it.

Non-profit organizations such as the National Insurance Crime Bureau (NICB) track the most stolen vehicles in America by tallying all cars that are reported stolen by law enforcement agencies each year. The NICB’s most current top 25 list of most stolen vehicles nationwide is as follows:

1. Toyota Camry
2. Honda Accord
3. Honda Civic
4. Chevrolet Full Size C/K Pickup
5. Ford Full Size Pickup (150/250/350)
6. Jeep Cherokee/Grand Cherokee
7. Oldsmobile Cutlass/Supreme/Ciera
8. Dodge Caravan/Grand Caravan
9. Ford Taurus
10. Toyota Corolla
11. Chrysler/Dodge/Plymouth Neon
12. Nissan Sentra
13. Chevrolet Caprice
14. Ford Explorer
15. Chevrolet Cavalier
16. Chevrolet Compact SUV (Blazer)
17. Plymouth Voyager/Grand Voyager
18. Toyota Pickup
19. Pontiac Grand Am
20. Ford Escort
21. Acura Integra
22. Dodge Ram Pickup
23. Nissan Maxima
24. Ford Mustang
25. Buick LeSabre

Even if your car is high on this list – You CAN protect it!
There are a number of measures you can take to help safeguard your car from being stolen, even from the most experienced thief. The NICB recommends the following “layers of protection;” saying the more layers of protection on your vehicle, the more difficult it is to steal. Think about it, can you imagine what you would do without your car for even a week, let alone longer? Don’t let these professional thieves profit on the car you count on to get you to all the places you need to go.

Layer #1 – Common Sense
An unlocked vehicle with a key in the ignition is an open invitation to any thief, regardless of which anti-theft device you use. The common sense approach to protection is the simplest and most cost-effective way to thwart would-be thieves.
Secure your vehicle even if parking for brief periods. You should always:
Remove your keys from the ignition
Lock your doors/close your windows
Park in a well-lit area

Layer #2 – Warning Device
The second layer of protection is a visible or audible device which alerts thieves that your vehicle is protected.
Popular second layer devices include:
Audible alarms
Steering column collars
Steering wheel/Brake pedal lock
Brake locks
Wheel locks
Tire locks/Tire deflators
Theft deterrent decals
Identification markers in or on vehicle
Window etching
Laminated glass

Layer #3 – Immobilizing Device
The third layer of protection is a device which prevents thieves from bypassing your ignition and hot-wiring the vehicle.

Some electronic devices have computer chips in ignition keys. Other devices inhibit the flow of electricity or fuel to the engine until a hidden switch or button is activated.
Popular third layer devices include:
Smart keys
Fuse cut-offs
Kill switches
Starter, ignition and fuel disablers

Layer # 4 – Tracking Device
The final layer of protection is a tracking device which emits a signal to a police or monitoring station when the vehicle is reported stolen. Tracking devices are very effective in helping authorities recover stolen vehicles.

Passive and Active Anti-Theft Systems
Passive and active anti-theft devices are the two options available when considering an anti-theft system. Passive devices automatically arm themselves when the vehicle is turned off, the ignition key removed, or a door is shut. No additional action is required. Active devices require some independent physical action before they are set, such as pushing a button, or placing a “lock” over a vehicle component part. This physical action must be repeated every time the anti-theft device is set or it will not function.