Author: steve hom

Tips for Older Drivers As Your Reaction Time Slows

Posted on by steve hom

The feeling of freedom you get while driving is one you never grow tired of. That feeling keeps people behind the wheel, even when the effects of aging make it more difficult for them to drive safely.

As you age, your ability to react lessens. Taking medications for conditions, such as high blood pressure or cardiac problems, can add to your inability to react quickly. You may experience a feeling of being lost or confused when you find yourself in an unfamiliar environment. Sometimes you may also be overwhelmed by all of the traffic signals, road signs, pedestrians and vehicles that you have to keep track of at intersections. Distances become harder to judge, and you have difficulty in determining whether you have enough room to turn or change lanes. Likewise, knowing when to merge with traffic from the on-ramp of a highway may become difficult to judge. These are all the result of the natural aging process, but you need to take extra precautions to be sure they don’t interfere with your ability to handle your vehicle.

The National Highway Traffic Safety Administration has developed the following guidelines to help older Americans drive more safely:

  • Plan your route. Drive where you are familiar with the road conditions and traffic patterns.
  • Drive during the day and avoid rush hours. Find alternative routes with less traffic.
  • Keep a safe distance between you and the car ahead. Find a marker ahead of you, such as a tree, sign or lamppost. When the car ahead of you passes this marker, count “1001, 1002, 1003, 1004.” Try to leave enough space so that you reach 1004 before your car gets to the marker.
  • When approaching intersections, remind yourself to look to roadsides, as well as directly ahead.
  • Try to make left turns at intersections where green arrow signals provide protected turns. Sometimes you can completely avoid left turns by making a right turn at the next intersection. Two more right turns should put you on the street you need.
  • Scan far down the road continuously so that you can anticipate future problems and plan your actions. A passenger can serve as a “second pair of eyes.” Be careful not to get distracted in conversation.

Many seniors are still very capable of driving, which is why a decision about a person’s ability to drive should never be based solely on age. However, changes in reflexes can put at an older driver at increased risk. If you recognize and accept these changes, you can adjust your driving habits to allow many more years of safe driving.

Uncovering Common Misconceptions About Flood Insurance Coverage

Posted on by steve hom

According to the National Flood Insurance Program (NFIP), flooding is this country’s most prevalent natural disaster. In the years between 1995 and 2004, flood losses in the U.S. averaged $867 million annually. There are about 4.7 million citizens who have taken advantage of the government’s flood insurance protection, however large numbers of at-risk Americans still refuse to find coverage.  After hurricane Katrina last summer, when nearly 80% of New Orleans was underwater, it is surprising that people would not seek such coverage, since their homeowner’s policies do not insure them against floods.

Part of the problem stems from the innate sense that if it’s offered by the federal government, applying for it must be: a) tied up in red tape, and b) too complicated due to all the exclusions. Both of these statements, however, are not true. Let’s examine some of the commonly held beliefs about flood insurance:

 

  • You can’t buy flood insurance if you are in a high-risk area.  Flood insurance is available to all homeowners and businesses in any community that participates in the NFIP. You can check to see if your community participates by visiting https://www.fema.gov/fema/csb.shtm. The only issue which would prevent you from obtaining flood insurance is if you reside in a Coastal Barrier Resource System location, or a location that is designated as an Otherwise Protected Area. Land that falls under these two categories are undeveloped areas along coastlines. The flood insurance program doesn’t provide coverage in these areas to discourage settlement where there is an extreme risk not only for flooding, but potential loss of life.
  • You can only get flood insurance if you are a homeowner.  Condominium/co-op owners, apartment dwellers, and commercial/non-residential building owners can purchase NFIP coverage. There is a maximum of $250,000 worth of coverage on a one-family residential building. The maximum per-unit coverage limit on a residential condominium/co-op association building is also $250,000. Contents coverage for any residential building is limited to $100,000. Commercial/non-residential structures can be insured for a maximum of $500,000. You can also insure the contents of commercial buildings up to $500,000.
  • You have to wait 30 days for flood insurance protection to take effect. Usually there is a 30-day waiting period from the time a policy is purchased until you are covered. However, there are some exceptions. There is no waiting period if you already have a flood insurance policy, but need more coverage to increase, extend or renew a loan, such as a second mortgage, home equity loan, or refinance. Coverage is effective immediately, as long as you pay the premium at or prior to loan closing. There is a one-day waiting period when additional coverage is requested because of a map revision. This applies when the NFIP revises the map so that a non-Special Flood Hazard Area becomes a Special Flood Hazard Area. Coverage must be purchased within 13 months following the map revision to be applicable for the reduced waiting period.
  • You can get Federal Disaster Assistance even if you don’t have your own flood insurance policy.  The Federal Disaster Program will only provide coverage to uninsured individuals or businesses if the affected area is declared a federal disaster area, which occurs less than 50% of the time.  Statistics show the awards average about $4000 dollars and most are made in the form of a Small Business Administration Loan, which must be paid back with interest.  Furthermore, the award recipient must carry flood insurance for the duration of the loan.

 

To learn more about the terms of flood insurance coverage, log on to https://www.floodsmart.gov/floodsmart/pages/faq_policy.jsp.

Source: FEMA Publication F-216 (08/04) and www.floodsmart.gov

Tweens Need Seat Belts When Riding in the Back Seat

Posted on by steve hom

Child safety experts have always emphasized the vulnerability of young children in the event of a crash. Parents are continually schooled in the media about the proper use of car seats and booster seats. The federal government even established guidelines for parents of young children; recommending that parents place infants up to 20 pounds in a rear-facing child seat and toddlers weighing between 20 to 40 pounds in a child seat with a harness. Children weighing more than 40 pounds who aren’t at least 4 feet 9 inches tall should be in a booster seat.

However, when a child grew beyond 4 feet 9 inches tall, usually around the time they reached eight years old, there was no parental guidance from the government in place to protect them in the event of a crash. No longer considered as having the same level of vulnerability as they once did, children between the ages of 8 and 12 years old seemed to get lost in the cracks when it came to auto safety practices. The only recommendation the government made was to have them ride in the back seat until they reach the age of 13.

Experience proved that wasn’t enough. More than one pre-teen, or “tween,” passenger between the ages of 8 and 12 is killed in a motor vehicle crash every day and three times that number are injured, according to the Fatality Analysis Reporting System. In light of these statistics, it is no wonder that safety organizations like the Automotive Coalition for Traffic Safety are asking questions about how frequently tweens are wearing their seat belts and whether or not they’re sitting in the back seat. National fatality data demonstrate that of the more than 400 tweens killed in crashes each year, approximately half are not wearing a seat belt and one-third are riding in the front seat.

To verify these statistics, the Automotive Coalition for Traffic Safety conducted surveys in Dallas, Texas and Joplin, Missouri.  Researchers discovered that of the children polled, about one-third said they sat in the front seat. Even more significant was the fact that half of the 12-year-olds surveyed said that they sat in the front seat. About 63% of the Joplin tweens questioned said they always wore their seat belts, with 53% of the Dallas children stating the same. Surveys were completed by more than 400 children in both cities and had a margin of error of 5 percentage points.

The most alarming discovery that came out of this project was that belt usage in these two locations fell far below the national use rate of 82%. It was also successful in highlighting the problem of why tweens had such a significant death rate as a result of car crashes.

Despite so much bad news, the survey showed how easily parents could improve these results. The Joplin survey revealed a strong parental influence when it came to wearing a seat belt. Nine out of ten children whose parents always wear seat belts followed the example their parents set; however, only six out of ten children whose parents wear seat belts sporadically always wear their belts.

That’s why both the federal government and the Automotive Coalition for Traffic Safety recommend that parents serve as role models and always wear their seat belts. They also recommend using incentives like letting children choose the radio station in exchange for sitting in the back seat and wearing their seat belts. Parents should ban the use of handheld electronic games in the car if children insist upon sitting in the front. Parents also need to remind children that the law requires they wear a seat belt.

Flood Damage to Cars Isn’t Always Easy to Spot

Posted on by steve hom

Wherever you find disaster, you almost always find someone attempting to profit. Following hurricanes Katrina and Rita in the summer of 2005, thousands of water-damaged vehicles showed up in car lots all across the southern United States, many with no visible problems.  They were sold outside of the hurricane’s heavy-hit areas, to avoid suspicion of flood damage.  Though in excellent physical condition, these refurbished cars could still be prone to problems, which is why concealing their disastrous history is against the law.

A “flooded” vehicle is one that has been submerged or partially submerged in water to the extent that damage to the body, engine, transmission or differential occurs.  However, even though physical damage is visible within hours of the flood, it could take weeks or even months for the car to exhibit symptoms of damage with the transmission, on-board computer or electrical systems within the dashboard, anti-lock brakes, airbags, and other safety functions.

Even though most state laws require that the buyer be informed in writing of previous flood damage to a vehicle, there are still several cases each year where the buyer believed they were getting a great deal on a great car.  Despite a flawless exterior, there are other ways to spot a flood-damaged vehicle.

To prevent yourself from being taken advantage of in this situation, here are some basic guidelines in spotting a flood-damaged car:

 

  • Check the engine, trunk, glove compartment, and the floor beneath the carpeting for signs of sand, silt or moisture.
  • Examine all of the computerized and electrical components of the vehicle, including lights, gauges, air conditioning, wipers, turn signals, radio, etc.
  • If you suspect the car may be flood-damaged, ask the seller directly. 
  • If you are still unsure, have the car examined by an independent mechanic.

 

Protect Your Child While Driving

Posted on by steve hom

When transporting children in your vehicle (whether they are your own children or others), it is important to ensure that they are properly restrained.  Remember that cars are designed to comfortably and safely seat adult-sized passengers, and child restraints are designed to compensate for this.

In 2003, 5% of all traffic fatalities were children under 14 years old.  Most children were killed because they were not correctly placed in the seat belt, car seat, or booster, or had let themselves out of the restraint. In fact, many had been riding completely unrestrained.

It is extremely important that all children under 12 always ride in the back seat. This was true even before the arrival of airbags, and is especially true now.  Infants and young children should never be in the path of an airbag.  In the backseat, the child is also afforded more distance before they hit anything hard, in the event of a crash. 

Most states have child restraint laws, which specify the ways in which each age group should be restrained in a car.  Unfortunately, many leave a gap for children aged 6-12: children who are too large for child safety seats and too small to fit into vehicle-equipped seatbelts. The best idea is a booster seat, which boosts the child up about four inches, enough for them to fit perfectly into the seatbelt. This is recommended until the child is large enough to fit comfortably and appropriately into an adult-sized chair and seatbelt. 

Falling Asleep at the Wheel: Tips for Avoiding Driver Fatigue

Posted on by steve hom

There are many dangers that can contribute to car accidents, but driver fatigue is by far one of the largest.  Falling asleep behind the wheel is a serious problem, causing more than 100,000 accidents per year, according to the National Highway Traffic Safety Administration. For most of these fatigue-based crashes, the culprit is monotony on the road. Interstates and high-speed or long, rural highways, for example, are the most frequent areas where drivers fall asleep. Studies done by the NHTSA have proven that driving with fatigue is equally if not more dangerous than driving intoxicated, with very similar results: impaired reflexes, blurred vision, inability to stay focused, etc.  The NHTSA has estimated that drivers falling asleep at the wheel cost about $12.5 billion annually in insurance claims and medical costs.

There are several common-sense tips for staying awake, especially when driving long distances, or at night.

 

  • Make sure you’re well rested, beginning your trip only after having at least seven to eight hours of sleep.
  • Avoid driving alone on long-distance trips. Passengers can both share in the driving and providing conversation, which can help you stay awake.
  • Be an active driver. Avoiding prolonged use of cruise control. Using it in moderation will help you stay more alert.
  • Allow yourself ample time to reach your destination so you can take advisably frequent breaks. Try to stop about every two hours, or every 100 miles. Make a point of getting out of the car and walking at least a short distance.
  • Driving for long periods at night makes fatigue much more likely. By avoiding traveling during these hours, you escape the glaring dashboard and road lights. That alone will help decrease your risk of highway hypnosis.
  • Finally, if you’re losing the battle against fatigue, stop and sleep at a motel or well-guarded rest stop.

 

Vulnerable Homeowners Negligent About Flood Insurance

Posted on by steve hom

Quite a bit of attention is being paid lately to floods and the devastation they leave behind. In the wake of Katrina, more and more questions have been raised about what kind of preventative measures would have lessened the catastrophic effects of such an event.  How well equipped are individual homeowners to handle financial consequences on their own, as opposed to relying solely on agencies like FEMA to provide them with economic assistance? Are Americans taking advantage of the nation’s flood insurance program?

That’s what FEMA wanted to know. The agency worked through the American Institutes for Research (AIR) to commission a study. AIR is a not-for-profit organization that conducts research on social issues and provides technical assistance in the fields of health, education, and workforce productivity. AIR coordinated the study, which was conducted by the Institute for Civil Justice and the Infrastructure, Safety and Environment division of the RAND Corporation. It was intended to be part of an overall evaluation of the flood insurance program.

In the course of their work, the researchers discovered that most homeowners buy flood insurance only because it is required. Only 20% of homeowners living in the areas most vulnerable to floods buy federal flood insurance when they are not required to do so. The study went on to reveal that just 1% of Americans living outside designated flood zones buy federal flood insurance even though the possibility of being victimized by flood is a real threat.

Only 50% to 60% of the 3.6 million single-family homes in the most highly affected areas are legally required to buy federal flood insurance. The remaining homeowners in these areas and the nearly 76 million single-family homes outside these areas are not required to buy flood insurance.

The study put the greatest emphasis on exploring the demographics of flood insurance purchasers. About 63% of homeowners living in areas subject to coastal flooding purchase flood insurance. Approximately 35% of homeowners living in areas that are only affected by river flooding buy flood insurance. The researchers surmised that the disparity might be the result of a perception of having less risk or that coverage available for basements is limited, and basements are prevalent in inland areas subject to river flooding. The report recommended that this aversion to flood insurance by those living in inland areas be studied, to search for an explanation or possible causes.

The study also looked at purchasing habits along geographic breakdowns. In the South, 75% of homeowners who carry flood insurance also have contents coverage. Only 16% of homeowners with flood insurance in the Midwest and 49% in the Northeast have contents coverage.

Clearly homeowners everywhere need to reassess their exposure to flooding.  If you have questions about obtaining flood insurance for your property, please give us a call.

Traffic Violation Cameras and Your Auto Insurance Premium

Posted on by steve hom

With the sudden presence of traffic violation cameras (red light, speeding, aggressive driving) in states across the country, many Americans feel that their privacy is violated.  Others believe that this is a government ploy for fundraising, or to replace the local police department.  Many people are curious as to the effect a red light camera violation will have on their insurance premium.

Since initiating the program a few short years ago, participating cities have seen very promising results from their investments.  Many have seen a 40% decrease in violations since starting the program.  Fines can be anywhere from $35 to $200, depending on the city in which the violation was issued and the speed over the legal limit at the time of the photograph.

If you are found in violation, the cameras take a picture of your car, with a motion-triggered shutter, which captures an image of you in your vehicle in addition to a zoomed-in image of your license plate.  Some cameras even take a few seconds of video.  Once the data is analyzed, you are issued a ticket through mail.

Some drivers have contested that if the vehicle owner is not the driver at the time of the violation, they should not have to pay the fine.  Most cities allow residents to appeal the citation in this situation.  Other states, however, hold the vehicle owner responsible regardless of who was driving.

There have been a few reports that suggested the cameras increase traffic accidents.  This is both true and false.  As the lights change from green to yellow, drivers begin to panic.  To avoid receiving a traffic violation, they are inclined to stop much more suddenly, which could cause minor rear-end collisions, and fender-benders.  However, more serious side-impact and head-on collisions caused by drivers speeding through red lights have significantly decreased.  As these crashes were much more hazardous, and resulted in far more injuries, the cameras are still viewed as a positive implementation.

Since violations are usually issued as a civil penalty, in most cases they do not result in changes to your insurance premium or points on your license, except in extreme cases.  Driving safely, however, will always result in better insurance rates.

When Should You Get Car Insurance for Your Teen?

Posted on by steve hom

As soon as they start learning to drive, whether they are starting with a learner’s permit or going straight to the license, you should inform your insurance company to have them added to your policy.  This is usually much more cost-effective than placing them on their own policy, especially if you are a safe driver with a clean record.  They will also be eligible for more coverage under your policy.

Statistics show that teens are more prone to accidents than those in other age groups, so starting out with the right amount of coverage is extremely important.

When your child goes to college, unless they are taking a car with them, you will probably want to switch them to “occasional drivers” under your policy.  Some other considerations:

 

  • You may qualify for a multi-policy discount if your child’s car is covered under your policy.
  • You may also qualify for a discount during the time your child is away at college.
  • Encourage your child to earn good grades, and take a driver training course.  Some insurers discount due to good grades, and for completion of training courses.
  • Serve as a good role model; your child will learn by example, so it is important to demonstrate good driving habits early on (i.e. not talking on the phone, using seatbelt, not drinking and driving.)

 

The Number of Uninsured Drivers Continues to Rise

Posted on by steve hom

Here’s a sobering statistic you might not be aware of: nationwide, when a person is injured in a car accident, the odds are about one in seven that the driver that caused the crash is uninsured. According to a recent Insurance Research Council (IRC) study, the estimated percentage of uninsured drivers rose from 12.7% in 1999 to 14.6% in 2004. The IRC studied data provided by eleven insurance carriers, which represents approximately 58% of the private passenger auto insurance market in the United States.

Uninsured Motorists, 2006 Edition looks at trends in the percentage of uninsured drivers by state from 1999 to 2004. In 2004, the five states with the highest uninsured driver estimates were Mississippi with 26%, Alabama with 25%, California with 25%, New Mexico with 24%, and Arizona with 22%. The five states with the lowest uninsured driver estimates were Maine with 4%, Vermont with 6%, Massachusetts with 6%, New York with 7%, and Nebraska with 8%.

The researchers estimated the number of uninsured drivers by using a ratio of insurance claims made by persons who were injured by uninsured drivers to claims made by persons who were injured by insured drivers. The study also includes recent statistics broken down by state on the frequency of claims made by uninsured motorists, the frequency of claims of bodily injury, and the ratio of uninsured motorists to bodily injury claim frequencies.

Given these statistics, it’s a good idea for people to protect themselves in case they are in an accident with someone with either no coverage or not enough coverage. That’s why the insurance industry developed Uninsured Motorist Insurance and Underinsured Motorist Insurance. Requirements for carrying this coverage differ from state to state. However, in general, states that are considered “no fault” auto insurance states mandate both types of coverage.

Uninsured Motorist insurance protects you when the other driver has no coverage. In order for your Uninsured Motorist coverage to help, the uninsured driver must be the person responsible for causing the accident. The types of coverage provided under this policy include:

 

  • Uninsured Property Damage: Covers you when the insured vehicle sustains property damage, but the at-fault driver has no insurance.
  • Uninsured Motorist Bodily Injury: Covers you, the insured members of your household and your passengers for bodily/personal injuries, damages or death caused by an uninsured at-fault driver. If you get into an accident in which the at-fault driver has no insurance, your policy will pay your medical expenses, up to the stated limits of your policy.
  • Underinsured Motorist insurance protects you when you are in an accident with a driver who does not have enough liability coverage. Again, this coverage only helps if the underinsured driver caused the accident. The types of coverage provided under this policy include:
  • Underinsured Motorist Property Damage: Covers you when the insured vehicle sustains property damage, but the at-fault driver is covered by a policy with a liability limit insufficient to cover all the damages.
  • Underinsured Motorist Bodily Injury: Covers you, the insured members of your household and your passengers for injuries, damages or death caused by an at-fault driver whose insurance is insufficient to cover the entire expense. If you have an accident with a driver whose policy limits are too low to pay all your damages, your policy will pay the difference up to the stated limits of your policy.

 

If you haven’t reviewed your insurance coverage recently, talk to your insurance agent to review any gaps in your coverage. You may be putting yourself and your family in greater risk than you realize.