The Winding Road of Auto Insurance

Personal vehicle insurance is an important form of protection in today’s mobile society. However, like any type of insurance, auto insurance comes with a maze of options, terminology, and costs. Here’s a quick look at some key components of a typical automobile insurance policy:

• Bodily Injury Liability. Perhaps the most important coverage on your policy, this protects you if you cause an accident resulting in injury to others. A severe accident may not only seriously injure someone; it could also cripple you financially.
  
• Property Damage Liability. This protection covers the damage done to the property of others, including vehicles and telephone poles. It also insures the loss of use of vehicles you damage.
  
• Collision. Although collision coverage can add considerably to a policy’s overall cost, it is a valuable component, especially for newer or higher-priced automobiles. This coverage insures against damage to your vehicle caused by collision with another car or object, or an overturn.
  
• Comprehensive. This covers physical damage to your car caused by events other than a collision or overturn, such as vandalism, fire, theft, hail, or flooding. Like collision protection, comprehensive coverage is optional, but it may be required if you have a car lease or loan.
  
• Medical Payments. Some policies have separate coverage for costs associated with medical expenses of the named insured or others riding in the insured vehicle. Coverage is generally limited to a stated dollar amount in the policy (e.g., $5,000 per person).
  
• Uninsured Motorist Coverage. This coverage helps pay for damages or medical expenses (exceeding the limits of your policy’s coverage) in an accident caused by an uninsured motorist. Because some states do not require automobile insurance, or some "risk takers" illegally drive without insurance, uninsured motorist coverage is often a valuable addition to a policy. Insurers in many states also offer underinsured motorist coverage to protect motorists in cases where the other party is insured, but not to the extent necessary to cover the motorist’s personal injury damages.
  

If you would like additional information regarding your policy or have questions about the right coverage for your needs, please give us a call.

Keep an Inventory
of Your Valuables

Try closing your eyes and listing your living room furnishings or the contents of your jewelry box. If you have trouble coming up with a complete tally, imagine how hard it would be after the stress of a fire or burglary.

Making a written inventory, and perhaps even a visual recording, of your household valuables can be one of the best money-saving steps you can take. Property insurers may be less likely to question claims based on such inventories, particularly if you submit photographs, videotape, receipts, or an appraiser’s statement for valuable items.

Your insurance company may even be able to give you a useful inventory form to fill out. Make sure to keep a copy of your inventory of household valuables with us or in your safe-deposit box. An inventory may be one of the most important items to safeguard, as it could prove invaluable after a sizeable loss. We’d be happy to help you determine the best way to record your family’s possessions. Give us a call.

Getting More Miles from a Tank of Gas

With gas prices becoming increasingly volatile and concerns about global warming mounting, conserving gas has become a national priority. While trading in your car or truck for a fuel-efficient sub-compact or hybrid may not be an immediate option, there are strategies you can use to minimize trips to the gas station while continuing to drive your current vehicle.

Tests conducted by Ford Motor Company have demonstrated that the combination of inefficient driver habits and vehicle maintenance can result in 38% loss of potential fuel economy. By taking some of the following steps, you may find your car is covering longer distances on each gallon of gas:

Monitor tire pressure. Under-inflated tires create rolling resistance and lower fuel efficiency. By keeping tires inflated at the highest recommended pressure level, you can improve your car’s gas mileage by around 3.3%, according to the U.S. Department of Energy (DOE). Proper inflation also lessens wear on tires and reduces the risk of accidents due to tire failure or blowouts.

Get regular tune-ups. Because malfunctions cause the engine to work harder, cars that aren’t regularly maintained tend to burn more gas. Problems such as clogged air and fuel filters, faulty oxygen censors, or worn and dirty spark plugs can lead to a dramatic drop in fuel efficiency. Taking a car for a tune-up at least every 30,000 miles can save on gas and protect the engine from damage.

Monitor brakes and wheel alignment. Improper wheel alignment and the drag of poorly adjusted brakes can lower gas mileage. A simple inspection can reveal whether an adjustment or realignment is needed.

Park in the shade. Because gas evaporates in the heat, parking your car in a cooler spot during the summer can conserve fuel.

Do not allow your car to idle for more than a minute. Turn off your car if you plan to stop for more than a minute, as idling for longer periods uses more fuel than shutting down and restarting the engine. Also, avoid warming up a car, as it is unnecessary with today’s engines.

Eliminate excess weight. Take the junk out of your trunk. Each additional 100 pounds of weight a vehicle carries can cut gas mileage by up to 2%.

Slow down. Fuel efficiency falls sharply in most cars when they are driven at speeds above 60 mph. In fact, the DOE estimates that you may pay an extra 20 cents per gallon for every 5 mph you drive over 60 mph.

Curb aggressive driving habits. Acceleration, rather than sustained cruising, accounts for nearly half the fuel burned in city driving. Accelerating smoothly from a standstill consumes much less gas than a sudden start. Use of cruise control on the highway can also improve mileage.

Find ways to drive less. To avoid long waits in traffic, telecommute for at least part of the week or schedule your commute for off-peak hours. Look for opportunities to carpool with neighbors and co-workers, or check out rideshare programs in your community. Take advantage of public transit if it is available in your area. Avoid making frequent trips to the mall by taking care of some of your shopping online. You may also want to try walking or cycling to nearby destinations.

Combine trips. Making several trips from a cold start uses more gas than making a longer trip during which the engine remains warm. By planning your route in advance and finding ways to combine errands, you may also be able to reduce the amount of time you spend driving.

Monitor your fuel economy. You can keep track of your car’s gas mileage by maintaining a log of the odometer reading and the number of gallons pumped each time you fill up. In addition to alerting you to possible engine trouble, a fuel economy log will also make you more aware of your gas consumption habits.