Rise in U.S. Traffic Deaths Explained by Motorcycle and Pedestrian Fatalities
The Insurance Journal recently reported somber news in regards to a rise in U.S. traffic deaths. Specifically, the announcement stated that traffic deaths in the U.S. reached their highest levels since 1990. Interestingly, the increase in fatalities is attributed to an increase in motorcycle and pedestrian fatalities.
In regards to motorcycles, the National Highway Traffic Safety Administration (NHTSA) reports that fatalities rose for the 8th straight year, increasing 13% since 2004. 4,553 motorcyclists died in 2005, compared with 4,028 in 2004. Sadly, the report sends us a simple reminder with the fact that “Nearly half of the people who died were not wearing helmets.”
According to the same report, 43,443 people were killed on the highways last year, up 1.4 percent from 42,836 in 2004. The fatality rate also grew slightly to 1.47 deaths per 100 million miles traveled, an increase from 1.45 in 2004. It was the first increase in the fatality rate since 1986. Pedestrian deaths increased from 4,675 in 2004 to 4,881 in 2005. NHTSA said it was investigating the increase to try to learn what led to the growth.
As a follow-up to our recent discussion of students heading off to college and taking their valuable possessions with them, here are six time-tested tips that should be practiced by the young adults:
1. Students should leave heirlooms, jewelry or other irreplaceable items at home, especially during their first year, when they know the least about their new surroundings and friends. If a student insists on taking something of significant value, consider renting a safe deposit box near campus to store these items.
2. Consider engraving valuable possessions such as electronics with your unique identification, including a driver’s license number or state of residence. This can be helpful in recovering these items if a theft occurs. Contact your local police department for more information on how to have this done.
3. Items like compact discs, book bags and other small items should be marked with a student's name using an indelible pen. This type of protective measure may be a deterrent to thieves who want to sell the items.
4. Students should never carry a large sum of cash. Encourage the use of bank cards to mitigate the potential loss.
5. Whether or not a student takes a car to college, contact your insurance representative. Information such as where it will be parked and how much it will be driven may affect the cost of the premiums. If the car stays at home, parents may benefit if the student will no longer be driving it.
6. As a young adult, students should be aware of the risks and safety concerns associated with living away from home. Encourage responsibility and awareness.
I was just reading a special report conducted by the Red Cross to commemorate the one year “anniversary” (for lack of a better term, as anniversary usually has positive connotations) of Hurricane Katrina. Everywhere in the news today you will find then and now pictures, and it’s amazing how much the City of New Orleans and other areas devastated by this act of nature have recovered in just one short year. Homes have been rebuilt, lives have been resumed, and commerce has bounced back admirably. And so much of that is thanks to all of us who donated our time, money and resources.
Here’s an excerpt from the Red Cross Special report:
“In 2005, the United States experienced an unprecedented emergency, which resulted from its worst hurricane season ever. The three hurricanes brought suffering to people in an area larger than North and South Carolina combined. Hurricanes Katrina, Rita and Wilma damaged communities, trapped 40,000 people and wrenched millions from their homes. By some measures, the 2005 hurricanes created basic human needs that were 10 to 20 times greater than any domestic disaster in the past 125 years.”
That last sentence is especially riveting. I am so happy to read the recent InsWeb blog post that this year’s hurricane season should be less severe. Hopefully we will not have to witness the pain and devastation experienced by so many people during last year’s hurricane season.
Students heading off to college this year are taking more stuff with them than ever before: computers, cell phones, MP3 players, bicycles, clothing, sports equipment, and most likely a car. Interestingly, the campuses where they're heading may pose an unusually high rate of theft. It’s normal though, as theft affects an estimated 1 in 10 college students. Given this, how do you protect your investment?
First, do an inventory to find out just how much money is tied up in that dorm room. Then talk to your insurance representative to find out what possessions are covered, including those that are not, under your existing policies.
Students in dormitories are generally covered by their parents' homeowners insurance policies, but there may be coverage limits for items stored away from home. Find out what your limits are, and if the value of the belonging exceeds the limit, consider purchasing policy riders (additional pieces of coverage for specific valuable items). Students who live off-campus are not always covered by homeowners insurance policies, and may need renters insurance instead to adequately to protect against loss.
Better News For Atlantic Hurricane Region Homeowners: Forecasters Downgrade Hurricane Season Threats
Good news for homeowners that live in the Atlantic hurricane region: As a follow-up to our May InsWeb Blog post “2006 Hurricane Season Alert: 4 to 6 Major Hurricanes Predicted,” the same government agency that issued the alert at the end of May recently downgraded the threat, as this year’s hurricane season won’t be as bad as predicted.
According to the recent announcement by National Oceanic and Atmospheric Administration (NOAA), researchers have reduced the number of likely hurricanes to seven from nine, and intense hurricanes to three from five. At the same time, the same researchers also warn that there is, however, a considerably higher-than-average probability of at least one intense hurricane making landfall in the United States this year, 73 percent. The average is 52 percent.
Colorado State University Researcher, William Gray states: “Atlantic Ocean surface temperatures are not quite as warm and surface pressure is not quite as low, both factors in the decision to revise the forecast.” Incidentally, Gray and his team say hurricane activity will continue to be above average for another 15 to 20 years. The National Hurricane Center in Miami in May predicted 16 named storms in the Atlantic, six of them major hurricanes. As of last Thursday, there have been three named storms. On average, there are 9.6 named storms, 5.9 hurricanes and 2.3 intense hurricanes per year. For Florida and the East Coast, the probability of a storm landfall is 64 percent, compared with a long-term average of 31 percent.
After struggling to come to terms with my astronomically high energy bill last month, I knew I had to look into finding ways to cut my usage. I came across an article on the Federal Trade Commission’s (FTC) website that may help people in my situation. Here are some of the tips they provided:
1. Check your attic, attic stairway, attached garage walls and basement to make sure your home is insulated to DOE-recommended levels for your geographic area.
2. Hire a professional to seal and insulate leaky ducts, and to ensure that the airflow distribution system serving your equipment is operating at peak efficiency.
3. Clean or replace AC and furnace filters once a month or as needed, and seal holes around plumbing and heating pipes.
4. Install a programmable thermostat. You can save money by keeping your house warmer than normal when you're out, and keeping the setting at 78 F when you're home.
5. Install drapes, shades, blinds or another window covering. Keeping them closed during the day blocks the sun and the heat from the sun's rays.
6. Consider replacing single-pane windows with double-pane windows with high-performance glass. Look for low-emissivity (low-e) or spectrally selective glass. In warmer climates, select windows with spectrally selective coatings to reduce heat gain. In colder climates, select windows that are gas filled with low-e coatings on the glass to reduce heat loss.
7. Open your foundation vents each spring if your home has a crawl space under it.
8. Install ceiling fans. The air circulation promotes cooling in the summer and heating efficiency in the winter.
9. Prune back shrubs and remove debris, like grass and leaves, that may block airflow to your air conditioner.
10. Plant a tree. Landscaping is a natural way to shade your home. Well-placed trees and shrubs not only deliver shade, but also add value to your property.
11. Shade room air conditioners from direct sun to reduce their workload. Clean the filters once a month and replace them as necessary to promote energy efficiency. Lower the setting when you go out to reduce operating costs.
12. Apply a reflective coating to your roof. Dull and dark-colored home exteriors absorb 70 to 90 percent of the sun's energy. Light-colored surfaces reflect most of the heat away from your home.
13. Have your central air conditioning (AC) system serviced each spring. Your utility company may provide this service.
Good (And Bad) News: Your Teenager Is Now A Teen Driver
Imagine this: Not only is it back-to-school time, but your teenager has just passed their driving test and they're ready to start driving around. This is great news, right? It means they can drive themselves to school, you don’t have to fit in driving them to their endless activities around your already busy schedule, maybe they can even help with errands, and so on. But is having a new driver in the house all good news? Most parents in this situation may not think so. Possibly because it also means that your insurance is going to cost more (often double what it cost before), there will be more people vying for the family car(s), and you’re going to worry about what kind of a driver your darling offspring will be.
This month, we focus on safety tips for parents of teen drivers (as well as for teen drivers themselves). Next month, we will focus more on keeping your insurance costs at bay once you add your teen driver to your policy.
Follow Your State’s Rules
Many states now require longer periods of supervised instruction before a teenager can get their driver’s license. Also, many states put restrictions on driving with passengers and driving at night. For example, in California, teenage drivers cannot have passengers under the age of 20 in their car or drive between the hours of 11 p.m. and 5 a.m. unless they have a licensed driver over the age of 25 in the car with them (these restrictions last for the first year). Check your state’s department of motor vehicles website to find out what the specific laws in your state are.
Place Limits On Teen Driving
Even if your state does not have restrictions in place such as the ones listed above, you as a parent should set certain restrictions on your teen driver, at least in the beginning. It is a well-known fact that more teen driving accidents occur at night (especially weekend nights), or when the driver is distracted by things like other teen passengers. In fact, according to the IIHS (Insurance Institute for Highway Safety): In 2003, 54% of teen deaths from motor vehicle crashes occurred on Friday, Saturday, or Sunday; 42% occurred between 9 p.m. and 6 a.m. Other studies show that the presence of teen passengers increases the crash risk of unsupervised teen drivers, and that the risk increases with the number of teen passengers.
Limit Cell Phone Usage While Driving
What’s another cause of distraction for the modern teen driver? Cell phone usage. The III (Insurance Information Institute) reports that more and more teens are using hand-held cell phones while driving. According to the III, “More young drivers are using cell phones, according to a February 2005 study from NHTSA (National Highway Traffic Safety Administration). The study reported that 8 percent of drivers age 16 to 24 were using a hand-held phone during daylight hours in 2004, compared with 5 percent in 2002 and 3 percent in 2000.” Many states have now enacted laws that prohibit teen drivers from using cell phones while driving. If your state is not one of them, be sure to caution your teen driver about talking on the phone while driving.
Discuss Drinking And Driving
Alcohol is also a big factor in many teen driving accidents and deaths. Make sure your teenager is highly aware of the risks of driving under the influence, and that they follow the zero tolerance laws that are in effect in most states for drivers under the age of 21.
Choose A Safe Car For Your Teen
Make sure the car you let your teen use is one designed with safety in mind. Also make sure your child understands the importance of wearing a seat belt.
Take A Ride With Your Teen
Another good tip is to ride periodically with your child in the car. Many teens are wary and safe drivers in the early months after getting their license, and then quickly become overconfident and start ignoring some of the basic rules and regulations of driving. If you drive regularly with your teen, you’ll be able to observe (and hopefully prevent) his or her bad driving habits as they occur.
Remember, auto crashes are still the leading cause of death in people aged 15-20. Make sure your teen understands how important safety is while driving. And tune in next month for tips on keeping your insurance costs at bay once you add your teen driver to your policy.
Attention fellow homeowners! We all know that most mortgage companies require that we purchase homeowners insurance, but do any of us really know exactly what is covered in a basic homeowners insurance policy? This article breaks down the basics of a typical homeowners insurance policy from a real-world perspective.
The Basics of Homeowners Insurance
According to the Insurance Information Institute (III): “The typical homeowners policy has two main sections: Section I covers your property, and Section II provides personal liability coverage (to cover you in case of lawsuits arising from things that happen on your property). Almost anyone who owns or leases property should have this type of insurance. Often, homeowners insurance is required by lenders as a requirement to obtain a mortgage.” Basically, Section I covers injuries that happen to your home (and property), while Section II covers things that happen to visitors while in your home or on your property (i.e. slip and fall or victim of dog bite).
So your home and property are covered, but what about your possessions? Standard homeowners polices automatically cover your household contents, but only at about 40% of the amount your home is insured for. For example, if you ensure your home for $200,000, its contents are insured for up to $80,000. If you want extra coverage for certain items (such as jewelry, electronic equipment, fine art, collections, etc.), you can purchase what are called endorsements (or riders), which increase the coverage on these items. Your possessions are also usually covered outside your home at around 10% of the amount your home is insured for; meaning if your stereo is stolen from your child’s dorm room, or your golf clubs are stolen from the trunk of your car, these will most likely be covered (at actual cash value, unless your policy specifies otherwise; see below).
You should also understand the difference between replacement cost and actual cost value. Your home itself is usually insured (for a specified amount) at replacement cost, meaning you are reimbursed the amount it costs to replace your property with something of a similar type and quality at current prices. Most of your possessions are covered at actual cost value, which means you are entitled to the depreciated value of the damaged property – so the older the item is, the less money you may receive for it. Again, the home itself is insured for replacement cost (up to your policy limits), while its contents are insured for actual cash value unless you buy additional replacement cost coverage.
Lastly, you have to decide on your deductible, as in how much you will pay out of pocket in the event of a covered loss before your insurance company pays the rest (up to your policy limits). So, if you have a $250 deductible, that’s what you will pay before your insurance company pays the remainder. You can often save a significant amount of money by raising your deductibles; for example, if you raise your deductible amount from $250 to $1,000, you might be able to save up to 25% off your premium.
What Hazards and Perils are Covered?
Typical hazards and perils covered in most homeowners insurance policies include fire, smoke, lightning, windstorm (excluded in certain areas of the country), hail, vandalism/theft, falling objects (such as a tree), water damage from bursting or frozen pipes, weight of snow or ice, a vehicle causing damage to the home, building collapse and structural damage from an electrical surge (not from electronics, such as your stereo, inside your home).
Typical exclusions include earthquake, floods (or sewer backup), windstorm (in certain areas of the country, such as those prone to hurricanes), war, pet damage, damage from birds, rodents or insects, pollution damage, deliberate damage you do to your own home, and normal wear and tear.
You can add endorsements or riders for things such as earthquake coverage, windstorms (in those areas that this is not included), sewer backup, or (as discussed before) possessions like your fine art collection or computer equipment. Flood insurance cannot be purchased as an endorsement, but must be purchased as a separate policy.
Conclusion
So that’s it; the basic building blocks of homeowners insurance. Remember, as discussed in previous articles, be sure to do a review of your policy around once a year, or anytime you add on to your house, buy something such as a pool or dog, or remodel a room such as a kitchen or bathroom. If you have any questions about what is covered in your policy and whether your coverage is adequate, be sure to contact your homeowners insurance company or agent. And remember, you may be able to save a significant amount of money by comparing your current coverage against the multiple quotes you can get at InsWeb.
Using Term Life Insurance To Ensure College Is Covered
With all the popularity of 529 Plans and other methods of saving for your children’s educational future, one great way of ensuring that all of college is paid for in the event of anything happening to you is often overlooked. That method is term life insurance. It’s quick, easy and usually very inexpensive to take out a policy on yourself with a term length that ensures that your children will have all of their college expenses taken care of; including things 529 Plans just can’t cover. Or even better, obtain both a 529 Plan and adequate term life insurance coverage.
What Is A 529 Plan?
A 529 college savings plan is an investment account that allows you to set aside money for your child's college education and let it grow tax-free. The federal government won't tax your money when you take it out of the account as long as it's used for higher education.
You can use the money in a 529 plan at any accredited college or university in the U.S. (public or private, graduate or undergraduate). The money can be used for tuition/fees, room/board, books, and supplies/equipment.
How Can Term Life Insurance Cover Educational Costs?
One of the many benefits of term life insurance is choice; you can choose the term length and coverage amount and tailor them to benefit you and your dependents. For example, many people may choose a 30-year term length to cover the mortgage on their home. Similarly, a 30-year term purchased soon after your child’s birth can ensure that your children are covered through their college years in case anything happened to you. And a benefit of term life insurance over something like a 529 savings account is that your beneficiaries can choose how they want to spend the money (as opposed to a 529 which must only be spent on things education-related). This way, if anything were to happen to you, your child could cover both education and personal costs, or use the money for something else. Or, if you passed away before the child was an adult, the money could be used to help raise the child up to (and hopefully through, depending on your coverage amount) his or her college years.
Remember to adjust your coverage and beneficiary designations each time something major occurs in your life, such as the birth of a child.
Insure your children’s future with term life insurance; find out how low your rates can be today!
As I was watching TV this past weekend, I noticed those shocking, in-your-face, Volkswagen commercials are back again. You know the ones where the common person is driving with a friend or two, having the same conversation that we all might have in a car...and then...."BAM" all of the sudden the viewer is involved in a car accident with these people. The ad campaign addresses the fact that accidents happen and the car you drive can significantly influence your safe outcome. Whether you think the ad is too extreme for TV or not, the fundamental message may in fact be very legitimate.
Appropriately, the Insurance Institute for Highway Safety, just released an announcement titled, "Declining Death Rates Due to Safer Vehicles, Not Better Drivers or Improved Roadways." The release states that the designs of passenger vehicles have been improving for years, becoming more protective of their occupants in crashes. According to the report, death rates per vehicle and per mile have been going down for decades, and they still are.
According to the IIHS President Adrian Lu:
"This suggests that an increasingly dangerous traffic environment has been offset since 1994 only because people are driving vehicles that are more protective. Of course the vehicle design changes are good, but people shouldn't have to buy new, more crashworthy vehicles to maintain their safety. Our concern is that the efforts we had been seeing in the 1980s to mandate belt use and toughen DWI laws diminished in the 1990s at the same time that states were raising speed limits. This produced an increasingly dangerous traffic environment. It has become dangerous enough that, without the design improvements that have made vehicles more crashworthy, death rates would have started up. An estimated 5,200 additional lives would have been lost in 2004 without the vehicle design changes."
InsWeb has addressed on multiple occasions, the subject of stolen vehicles, including the most stolen models and areas where they are stolen. It’s a fact that, both the area where a consumer parks their car at night, and the vehicle model they drive are among the factors that influence their auto insurance costs. If either the vehicle or the area are statistically prone to theft, insurance companies may charge higher insurance premiums.
Interesting, the same source that publishes the data about the most stolen vehicles, The National Insurance Crime Bureau (NICB), recently announced the States with highest motorcycle theft. According to the announcement, California leads the nation in motorcycle theft rates in 2005, followed by Florida, Texas, and then North Carolina. To view the complete list, vist: https://www.nicb.org
The article discusses how 70,613 motorcycles were stolen in 2005, representing a loss of over $434 million to motorcycle owners and the insurance industry. The NICB explains that motorcyclists can sometimes bring attention to their bikes with elaborate paint schemes and chromed parts to specialized frames and high-performance engines and exhaust systems. It's not uncommon for a motorcycle's base price to exceed $20,000 with aftermarket parts adding thousands of dollars more to the original cost. With recovery rates typically in the 25-30% range nationally, motorcycle owners need to take every precaution in protecting their investments.
Yes, we’ve all heard all the sayings about “those crazy teenage drivers,” but my first “incident” at the tender age of 16, only about a week after getting my license, really wasn’t my fault. Really. I know you’ve heard that from many teenage drivers, but in this case it’s true.
It was raining, and I was driving my 1976 Volvo sedan at a snail’s pace. I don’t think I was like many of my counterparts; I was actually a very nervous (and therefore very careful) driver until I got some confidence and became a road demon like everyone else. Anyway, I was creeping along in the left lane of a two-lane-each-way city road, and this woman (who was obviously in a hurry), turned right out of an apartment parking lot and was going too fast in the slippery conditions to only go into the right-hand lane as I’m sure she intended. Instead she careened into my panicked self in the left-hand lane. We pulled over, and, as I was crying and shaking, she started yelling at me telling me she was in a rush and I’d ruined her day and I needed to stay in my own lane, etc. While nervous and upset (and luckily not hurt), I STILL knew I had never strayed out of my lane, and that she had in fact spanned two lanes and crashed into me. I stood my ground, but she was pulling the whole “you’re a young driver, it’s obviously your fault” attitude. We gave each other our information, with the frazzled and rude lady threatening to come after me. Being young and uninformed, I did not know to find a witness or call the police to prove that I was in the right. I went home and sniffled out the story to my mom, who, bless her heart, instantly believed me and started taking the proper measures.
To make a long story short(er), the lady tried to hold her ground that I was in the wrong, calling me that crazy teenage driver, and I started getting shakier and shakier on my story, not being a confident driver yet. We finally got pictures of the damage to my car taken by our insurance company, which proved that I was right and she was wrong. Once she found this out, and we tracked her down, she had moved out of state and left no forwarding address. Which was really fun to deal with (note heavy sarcasm).
Anyway, the moral of the story is this: teenage drivers are not ALWAYS the problem. Sometimes there are immoral people out there who will blame a teenager just because they can. Not to say there aren’t plenty of bad new drivers on the road creating traffic problems, but don’t always assume it’s the teenager at fault. Just give them their space and allow them to learn to become a good and confident driver, just as you did back when you were young. If you are a teenage driver, or have one in your household, you should check out the section of one of InsWeb’s special reports entitled “Teen Drivers Take It Slow”
Are you going on a trip but don't really know if travel insurance is necessary? You can make an informed decision simply by conducting a quick needs analysis.
Ask yourself:
- What is the cost of your trip?
- How long are you going for?
- Where are you going?
- What elements of your trip would you like insurance to cover?
- What time of year will you be traveling?
The answers to these questions will help pave the way for establishing not only if travel insurance is a prudent option, but more specifically, what type of travel insurance you should consider.
For example, you are taking your family on a week-long Caribbean Cruise that you have invested $5,000 in. If your children become ill prior to your departure, would you be concerned about the $5,000 investment being lost? If your answer is yes, then you need to consider a Trip Cancellation Package Policy. These policies cover the loss of your trip investment for a covered reason prior to departure, as well as a host of other types of coverage.
To simplify matters, there are four primary types of travel insurance to keep in mind:
1. Trip Cancellation Package Policies which not only cover the trip investment but also other coverages like trip interruption, baggage, medical and emergency evacuation.
2. Travel Medical Policies which cover travel medical and emergency evacuation.
3. Medical Emergency Evacuation Policies which provide emergency evacuation protection.
4. Flight Accident Policies which provide life insurance while you are flying.
Armed with the knowledge and understanding of the various types of travel insurance protection available, as well as your personal travel details and specific coverage needs, you can successfully navigate the myriad of travel insurance products to get the best policy for wherever your journeys take you.
Remodeling Your Home? Be Sure To Adjust Your Homeowners Insurance
Home remodeling quickly adds to a houses value, but many homeowners fail to increase their homeowners insurance coverage accordingly. It is not until a disaster strikes that many homeowners realize that they haven’t reevaluated their coverage to include any work done on the house. After already undergoing the tragedy of losing your home, you don’t want to also find out that your insurance policy only covers what your house used to be rather than what you have made it into. Imagine that you renovated a small one bedroom fixer-upper into a modern 3 bedroom home with a new yard or deck – the difference in replacement value would be considerable.
It is recommended that you review your homeowners insurance policy at least once a year. Make sure your policy matches your home’s replacement value so you have one less thing to worry about.
• Many homeowners only insure their homes based on their lender’s requirements, purchasing only enough insurance to cover their mortgage balance. This leads experts to estimate that nearly two thirds of all U.S. homes are underinsured, and many significantly so.
• If you have installed home safety upgrades to your home since you purchased your homeowners insurance policy (such as alarms, deadbolts, smoke detectors or fire extinguishers), make sure you notify your insurance company, as you may qualify for discounts. Same advice goes for if you have upgraded your home’s heating, plumbing, or electrical systems.
• If you do not have a Homeowners policy that automatically raises your coverage on an annual basis due to increasing home values in your area, make sure you adjust your level of coverage to match your home’s value. It’s ultimately up to you to make sure you have enough coverage.
• Make sure you report any renovations to your insurance company or agent as soon as you begin, or at least right after completion. It’s a good idea to take before and after pictures in case your insurance company requires them.
• Consider insuring your home with the same company that insures your vehicle(s), as many companies offer multi-policy discounts for insuring both.
• Make sure any contractors you hire to work on your house are properly licensed and insured. Ask to see copies of both their licenses and insurance policies.
