Mind the GAP

Every time you step off the Tube in London's Underground you hear a women's voice in her perfect British accent reminding you to "Mind the gap". It is a good thing too. At some stops on the Underground there is a pretty big gap waiting for you as you exit and if you got caught in one of those monsters you could be in some trouble. The same is true for the gap that occurs in leases and loans on cars. Normally over time a vehicle's value depreciates faster than the loan or lease can be paid off. This is commonly referred to as being "upside down" on your loan or lease. If during this "upside down" period you total a vehicle in an accident there is going to be a gap between what the insurance company will pay you (actual cash value of the car) and what you still owe on your loan or lease. The good news though is there is insurance that covers this gap and it is appropriately named GAP insurance.

GAP insurance coverage helps pay for the difference between actual cash value of the car and what is owed on the loan or lease. One thing to keep in mind though, GAP insurance from personal auto insurance companies does not cover the cost of warranties or other add on charges that might have been included in the loan or lease.

So for an example, you totaled your vehicle and the insurance company is going to value your car at $5000 but your loan was still $7000. Let’s also say that of the $7000, $500 of it is because of the warranty that you had purchased. Therefore, the insurance company (if GAP insurance was on your policy) would give you $6500 ($7000 due on the loan minus the $500 warranty cost) instead of $5000.

Improved Workplace Awareness Helps Traffic Fatalities Trend Downward

Employers and employees need to address the issues associated with automobile accidents as part of their daily management routine. A heightened awareness of automobile safety in the workplace has resulted in greatly improved fatality results. In 2010, 32,788 people lost their lives in vehicle accidents - down nearly 10,000 in the last decade. Fourteen percent of workplace fatalities result from automobile accidents. That is also down from 22 percent just 10 years ago. While this trend is moving in the right direction, the automobile exposure to a business offers one of the most serious liability exposures that can be faced.


Performance Management consultants recommend compliance with the 4-A’s of driving:

Anticipate what could possibly go wrong and focus on driving to avoid mishaps
Adjust to changing circumstances such as traffic congestion or changing weather
Assume nothing - don’t automatically assume that traffic will stay moving or a car won’t change lanes into your path
Allow no distractions - drivers must avoid anything that takes their focus off of driving

Not only can the strict adherence to an automobile safety program help relieve a business from a serious claim, maintaining drivers with good records reflect positively on the business’ auto insurance premiums.

Performance Management predicts that if employers would institute just two actions, implement standards of practice for driving and educate employees about good driving principles and management’s expectations, accidents would be reduced by more than 50 percent.

Buckle Up Your Best Friend

Dogs are a man’s best friend. So it only makes sense that dogs often travel in vehicles. Sometimes those are trips that are necessary for the dog such as doggy daycare or the vet. However, a lot of the time they are just to keep the driver company as they drive around town or go on a short road trip.

Dogs can be great companions as you drive around in your vehicle but they can also be great distractions. There are times you will see dogs sitting on the laps of the drivers or sitting dead center of the back seat which blocks the driver’s view out of the rear of the car.

In an accident dogs can also be a major hazard. When auto accidents happen they often stop a vehicle cold in its tracks. However, anything not buckled into the vehicle continues to travel at the speed the vehicle was traveling. Often, dogs are not strapped in and therefore become a large moving object in your vehicle. This can cause major damage to your pet as well as possibly to you or anyone else in the vehicle. It is best to have a dog strapped into your car, not only for your dog’s safety but also for your safety and for the safety of those in your vehicle. Visit a pet store near you and pick up an attachment that enables you to comfortably seatbelt in your dog.

Driving Drowsy

A 2008 study, taken from the Annals of Internal Medicine, suggest that some antihistamines may impair driving ability, even more than alcohol. The driver doesn’t even have to feel drowsy.

Forty study participants, when given diphenhydramine and an amount of alcohol to boost their blood alcohol level to .10 (legally impaired in most states), tested worse in a driving simulator when under the influence of antihistamine than under the influence of alcohol. A newer non-sedating antihistamine, Allegra, did not affect driving any more than the placebo given in a blind test screen.

The Asthma and Allergy Foundation of America estimates there are 50 million allergy sufferers in the United States. Allergies account for more than 17 million outpatient physician visits each year. Since the 1940s, antihistamines have been among the most widely prescribed medications. It is estimated that currently there are 30 million patients in the United State taking regular antihistamine medications in this $8 billion drug market.

If you have taken antihistamines, ask your doctor if a non-sedative prescription will work for you.

What to do Following a Car Accident

Car accidents are always a scary thing, even low impact accidents. Sometimes it can be difficult to stay focused on what you need to do right after an accident occurs, especially if you are injured. Obviously the most important thing to do after an accident is to move yourself and if possible the vehicles out of harm's way. Once you have done that make sure to exchange names and contact information. This is key. Now a days the police tell you to just give them the contact information and then wait for the police report to get the other party's information. This approach can causes a major delay for you and the other parties involved. Police reports, depending on the location of the accident, can take up to 10 days. That means that you will have zero information on the other party until that time. If you were not at fault in the accident it is going to be their insurance that takes care of you and your damages. Their insurance company won't be able to get a hold of you for up to 10 days because they won't know how to contact you until they get your information from the police report. If, however, you had exchanged information at the scene of the accident then you or your insurance agent would be able to call the other party and give them your information which would greatly expedite the whole process. So, even if the police officer tells you not to worry about the other parties information be sure to try and get at least a name and phone number.

Accident Near our Des Moines Location

A two car accident involving a third parked car held up traffic and brought some onlookers yesterday to try to figure out just what happened near our Des Moines location.

Speculators believe that the white SUV clipped the passenger rear of the other SUV causing the other driver to swerve due to the rain and mixed snow or possibly over-correct driving right over the sidewalk bending a railing over a parked car.

We wish the involved parties all the best.


Click images for larger version

Top 10 WORST Foods to Eat While Driving

“Driver distraction” causes 25 percent of the car crashes reported to police. While cell phones get a bad rap, they actually rank in fourth place among distractions, according to insure.com, which recently reported results from a Response Insurance Agency survey. Eating was a major culprit, topped only by tuning the radio.

In a separate Exxon survey, 70 percent of drivers said they eat while driving. Eighty-three percent said they drank coffee, juice, or soda while behind the wheel. (A handful even admitted to wishing they had a microwave oven in the car!)

With such widespread freeway foraging, it’s probably no wonder that eating plays a big part in single-vehicle and rear-end collisions where the feasting driver fails to stop in time.

The problem, say investigators, often comes with a confluence of unexpected events – a sudden stop ahead or a sharp curve combined with a food spill.

Most of the food-distracted drivers agree. They report it wasn’t the food that caused them to take their eyes and minds off the road. It was trying to mop up a spill.

Mornings are the worst when coffee-swilling drivers abhor ruining their work clothes for the day. Fearing they’ll be late for work, they try to clean up the spill on the go rather than pulling over.

Keeping spills in mind, insure.com reported these as the top-10 worst foods to eat in a car:

1. Coffee. Those spill-proof lids aren’t – plus the hot temperature adds pain to the distraction.
   
2. Soup. Same problem as coffee.
   
3. Tacos. They self-destruct even under the best circumstances.
   
4. Chili. It drips and must be eaten with a spoon, taking one hand off the wheel.
   
5. Hamburgers. Grease, ketchup, and mustard are a stain waiting to happen.
   
6. Barbecued foods. Ditto.
   
7. Fried chicken. Greasy fingers mean greasy steering wheels.
   
8. Jelly or cream-filled donuts. The filling often ends up on your shirt.
   
9. Soda pop. Prone to spills, pop swallowed too fast also gives you a nasty nose fizz.
   
10. Chocolate. Since it melts from the warmth of your hands, it gets all over the steering wheel.

Driving a stick shift while eating seems to double the danger (one hand shifting, one hand holding the food, no hand left to steer). The danger increases further when you add yet another distraction such as a chatty passenger, cell phone, or tuning the radio.


Thank you to PEMCO Insurance Company.

Washington Tenth Highest Uninsured Rate

Washington has the tenth highest rate of drivers without insurance and research suggests the number of uninsured drivers is rising.

According to The Insurance Research Council Washington 16% of drivers are uninsured. And a study shows that the number of uninsured drivers is, ironically, very close to the unemployment rate...and with estimates of a raising unemployment rate through 2010-- the number of uninsured drivers is also likely to rise.

What some people are doing, and what we suggest, is lowering coverage, raising deductibles, or removing coverage instead of canceling completely.

A graph showing uninsured rates vs. unemployment rates and the estimated number to the year 2010.
Click photo to enlarge in new window

Talk to your agent...

• to decipher which coverages to keep and which to drop
  
• about discounts you may be eligible for
  
• to raise your deductibles (note: there are sometimes limitations due to auto financing-- most require $500 deductibles)
  
• let us shop for you! We have 30+ companies both high risk and preferred to find you the best rates

Bad Economy Causing Many to Drop Insurance

With the economy at it's worst since the depression (and some speculating worse), many people are trying to cut back costs in their lives...some by dropping their auto insurance.

According to the Wall Street Journal, a study by the Insurance Research Counsil shows that several hundred thousand drivers dropped their insurance in the past year alone as the unemployment rate increased.

The Bureau of Labor Statistics' most recent update on our economic situation shows that unemployment rose to 7.2% in December-- up from 6.8%. And in December alone, payroll employment fell 524,000.

What can YOU do?
If you don't have insurance, get insurance. And we ALWAYS recommend Underinsured Motorist Coverage. This covers you in a hit and run or, more importantly these days, if the person that hit you does not have enough insurance or doesn't carry any insurance. It usually costs as little as $15-$20 a month but worth so much more than that if an uninsured driver hits you. What would you do if there's no one to pay? That's where underinsured motorist coverage comes in.

Theft also seems to be a rising issue. By carrying comprehensive coverage, your vehicle will be covered (less the deductible) for things like theft, vandalism, or if, say, a tree falls on the vehicle. The costs depends on your carrier, what deductible you choose, and what type of vehicle you drive most but times it can be quite inexpensive.

Please note, however, that comprehensive coverage only covers your vehicle for stock parts. Have an after-market stereo system? Rims? Paint job? Hold onto your receipts and invest in "Special Equipment Coverage".


Would you like a Quik Quote? Our rates may be better than you think! We shop from over 30 different companies to find you the best rate. We can insure you whether you fall into the "Preferred" market or if you have tickets, accidents, no credit, poor credit, or require an SR-22. Call us at 1-888-867-2866 OR visit us online at www.sav-on.com.


Thank you to: Auto Loan Daily and Bureau of Labor Statistics.

Safe Holiday Decorating Tips

It seems like there's always one house in the neighborhood that goes all out during the holidays. You might have a neighbor like that in your neighborhood, or maybe it's you! But even decorating for the holidays can be dangerous. According to the Consumer Product Safety Commission around 10,000 people are seen in emergency rooms every year as the result of burns, falls, shocks and cuts they received in the midst of holiday decorating.

Evergreen trees are a mainstay in many homes over the holidays. And while they are beautiful, the CPSC says trees can easily become fire traps.
According to a recent survey by the Commission dried out trees start more than 200 fires each year - some of which are fatal. But there are a few things consumers can do to avoid a tragedy during the holiday season.

The freshest trees are the least combustible, so live trees should have green needles that are difficult to pull from branches, don't break when bent and don't fall off if the tree is tapped on the ground. The tree's bottom should be sticky with resin. All trees - live or artificial - should be kept away from fireplaces, radiators and high traffic areas in the home.

Holiday lights, while adding to a festive holiday atmosphere, can also be a source of house fires. Opt for newer lights that have been tested by a nationally recognized laboratory, such as the Underwriters Laboratory (UL). Holiday lights should have thick wiring, and should be devoid of broken or cracked sockets, loose connections and frayed or bared wires. If lights are going to be used outdoors, they should be marked as such. Avoid extension cords unless they are specifically designed for lighting use.
Never use electric lights on a metallic tree, as this can pose an electrocution hazard.

Finally, while Santa likes stockings hung at the chimney, he asks that it be done with care. A screen should be placed around the fireplace to keep sparks from coming into contact with decorations, furniture or other flammable items. It is also not a good idea to burn wrapping paper or plastic materials in a fireplace. And fire salts, which are used to
produce colored flames, must kept away from children. The CPSC says they
contain heavy metals which can cause gastrointestinal problems and vomiting if eaten.

Holiday decorating accidents don't have to ruin anyone's fun this year. By keeping in mind these simple tips, the season can be truly joyous for all.

Does smoking affect AUTO insurance??

We got a really interesting question from one of the kids at the driving school last week (for more details, check out the 11/12/08 post on our teen blog www.savon-teendriver.blogspot.com). A young woman asked "I heard that smoking can make your insurance higher?" I replied that I'd never heard of anything like that...we certainly don't have any companies that surcharge for smoking (unless it's a life insurance policy which is a whole 'nother ballgame). But I decided to look into it...

I found that some companies do surcharge for a home policy...which makes sense. A smoker runs a higher risk of burning down the house. I'm sure you've heard stories in the news about a house or apartment catching fire and the cause was a lit cigarette. You also have to take into account that smoking inside your home will lower its value and the value of your possessions (due to the smell and damage caused by the smoke) which, in turn, could affect your premium of a renters or condo policy.

And evidently, auto premiums can be higher for smokers due to the fact that smokers tend to be more reckless drivers.

Again, I've never run into this problem with any of our companies we represent and I was unable to find out what states this affects. Has anyone else heard of this?


Thank you to www.ampminsure.org

Cell Phone Use Polls

PEMCO Insurance Company released some information today regarding the new cell phone laws.

Findings show that before the law went into effect 60% of respondents said that talking on a cell phone while driving should be a primary offense. Three months have passed and this number has dropped to 50%. At this time it is a secondary offense-- which means you must be violating another law (i.e. speeding, tailgating, running a red light, etc...) before being charged with the cell phone law.

The study was conducted in September by FBK Research.

You can see how your answers stack up with the research by going to http://survey.pemco.com

Text while driving? THINK again!

Reaction time is slowed down by about 35% while texting compared to 12% when drinking and driving (at the legal limit). Texting also worsens steering control by 91%. We all know the perils of drinking and driving, but who would have thought something as innocent as sending a text?

Texting is illegal in only 4 states, including Washington. But most believe it should be illegal in all. According to a recent poll by Daily Fuel Economy Tip, when asked "Do you think it should be illegal to text while driving?”

• 78% said texting while driving should be illegal
  
• 19% said texting while driving should not be illegal
  
• 3% said they were unsure or had no opinion
  

Do you think before you text?

Sav-on Teams Up with Enterprise Rental Car

Brr! This cold weather reminds us that Winter is fast approaching. And we at Sav-on Insurance know that whether it's cold, rain, fog, or snow today, the season for accidents is also fast at hand!

As a special service to our clients, Sav-on Insurance will be teaming up soon with Enterprise Rental Car Agency just in time for this chilly time of the year to provide our clients with discounts lower than any you will find on the Enterprise website!

Check back for updates as we welcome Enterprise Rental Car into the Sav-on Family or keep checking on our website (www.sav-on.com) to get those low rates when you need them most!