As a result of the extreme weather that we had last year and the huge Insurance losses resulting; Insurance Companies are being allowed rate increases this year for both homeowners and auto policies.
Auto rates need to be raised because of the larger jury awards, increases in medical costs and higher repair costs to damaged autos.
As usual, a good credit score, a good driving record and being loss free will keep any increase to a bare minimum.
Jan 192012
Dec 082011
Top Five Driving Mistakes
For many drivers, getting behind the wheel is second nature, so it’s easy to make errors without realizing it. However, these errors can lead to serious accidents. Keep yourself and others safe on the road by avoiding these mistakes:
1. Tailgating
Leave a three-second cushion between you and the vehicle in front of you. Leave even more time when road conditions are bad or when you’re travelling at higher speeds.
2. Stopping Instead of Yielding
Accidents can happen when drivers stop at a yield sign. “Yield” simply means to slow down and let the traffic on the road you are entering have the right of way. Most times, this is possible without coming to a stop.
3. Trusting Mirrors Instead of Your Eyes
Relying on mirrors can cause blind spots. Whether backing up or switching lanes, always look over your shoulder. And remember, objects in your mirror are closer than they appear.
4. Failing to Yield on Green
Even though a green light means “GO,” always remember to look at the street you are entering—especially when turning left—to make sure no pedestrians or vehicles are in your path.
5. Multi-Tasking
Drivers are distracted by just about anything these days—including the radio, eating and using the phone. Focus on driving and turn off all gadgets when you turn the key.
To ensure you’re driving a safe vehicle, take a few minutes to conduct this monthly Four-Point Safety Check. Your car and your safety may be riding on it!
1. Tire Pressure: Make sure all tires are inflated to the pressure recommended in your owner’s manual (not the maximum pressure noted on the tire’s sidewall). The correct pressure will ensure your tires wear evenly which will reduce the chance of blowouts.
2. Check Front End Alignment: Any pothole or bump can knock your car out of alignment. While driving slowly in an empty parking lot, see if the vehicle is pulling to one side. If so, have a qualified mechanic realign your front end.
3. Take a Brake: When in park, check your brake pressure. There should be resistance to the pedal when depressed. And, any grinding, squeaking or shuddering you hear or feel when you hit the brakes means it’s time to have them serviced.
4. Keep Your Lights On: Blown out brake lights and turn signals can be a big hazard on the road. Have a friend help you make sure all lights are working properly.
One of our frequently asked questions concerns the rental of cars when people go on a vacation. The question is, “Should I buy the collision coverage offered by the car rental company for $22 to $30 per day?” The answer is no, if your automobile is insured in Rhode Island.
Under Rhode Island auto policies, coverage for a car rental is automatically covered by the liability portion of your policy when there is a signed, written contract.
The rental contract calls for you to return the automobile in the same condition that it was in when you received it. If there is any damage to it, you would be covered under your liability policy. In addition, the rental company would also charge you for the loss of rental income while the car is being repaired and also the diminution in value because of the damage. All these items would be covered under your liability policy if your limits are high enough to cover the entire loss.
A word of caution: When you report that the vehicle has been damaged or stolen, the rental companies will usually immediately charge your credit card for the value of the car until your insurance company settles the claim. You should always give the rental company a card with a low limit, and keep the high limit card to pay for your vacation.