The Insurance Insider

Young drivers can be dangerous drivers.  That’s why it’s important for parents to inform themselves properly educating their children regarding the potential risks of sitting behind the wheel. 

(NewsUSA) - Teens’ lack of driving experience means they are at a greater risk of becoming involved in a collision or experiencing an automotive breakdown.

Accordingly, there are many factors parents need to consider before their teenage children get behind the wheel. AAA offers the following tips for parents as they hand their children their first set of car keys:

* Choose the right car. Consider a moderately powered mid-sized sedan with plenty of standard safety features such as antilock brakes, high-intensity headlamps, front and side air bags, electronic stability control, traction control and automatic seat belt tensioners. Sport utility vehicles and pickup trucks are less desirable as they have a greater likelihood of rolling over during an incident. Compact cars with poor safety ratings should also be avoided.

* Use caution when buying used. While purchasing a used vehicle may make economic sense, it is important to recognize that used vehicles are more likely to suffer roadside breakdowns. Consult the Kelly Blue Book and NADA price guides to determine the true market value of the vehicle. Then, have a pre-purchase mechanical inspection performed at an AAA Approved Auto Repair facility.

* Teach proper maintenance. Spend time helping your young adult become familiar with the vehicle owner’s manual and preventive maintenance schedule. This includes checking tire pressures, fluid levels, hoses, battery and windshield wipers, as well as keeping the car’s exterior and interior clean and polished.

One helpful tool is the AAA AutoManager, available at www.AAA.com. Users of this Web application system will routinely receive e-mail reminders advising them of when it is time to perform a specific service for their vehicle.

* Plan for emergencies. New drivers should plan ahead on how to respond to unexpected situations such as a car crash, a lost key, a stolen vehicle or a breakdown. Besides being enrolled in a roadside assistance program, have an emergency contact list and a written plan in the glove compartment. Make sure the vehicle is equipped with an emergency road kit that includes a flashlight with fresh batteries, reflective triangles, jumper cables and a first-aid kit.

* Set some limits. Young drivers should be aware of potentially dangerous situations such as drinking and driving, distracted driving and aggressive or reckless driving. They should also understand the importance of wearing a seat belt at all times. Because young drivers’ crash rates go up at night, their nighttime driving should be limited while they are learning and gaining experience. Novice drivers also have challenges managing distractions, so they should carry no more than one passenger and should only use a cell phone in an emergency.

For more tips and information, visit www.AAA.com.

Parents, you literally hold the key to protecting your children. Informing yourself is a vital first step.

Unfortunately, Medicare benefits continue to be reduced each year while medical costs continue to rise.  It is becoming ever more important to consider something to fill the gap. Medicare supplements are the answer. 

(NewsUSA) - There are many decisions to make when planning for retirement. Here is one important question to ask yourself as you prepare to leave the work force: “Will Medicare be enough to cover my medical needs?”

Designed to go hand-in-hand with your regular Medicare coverage, Medicare supplement insurance helps cover what your Medicare insurance does not. This private insurance, often called “Medigap,” helps fill the gap between health care costs and Medicare coverage.

Here are some tips from Mutual of Omaha on purchasing Medicare supplement coverage:

* Understand Medicare. Find out what your Medicare insurance does and does not cover.

* Find the best fit. Determine the supplement plan that best fits your needs based on your health and financial situation. Study all Medigap plans before deciding which one is best for you.

* Figure out when to enroll. The best time to buy Medicare supplement insurance is during your open-enrollment period, which starts the first month you are at least age 65 and enrolled in Medicare Part B. It ends six months later.

* Find the right insurance company. Consider the price as well as the level of customer service provided before and after the sale. Check the reputation of the company and its financial stability before you buy.

For more information, visit www.mutualofomaha.com.

You may also want to consider Medicare Part D. This plan provides affordable options for prescription drugs not covered by Medicare.

While you’re considering the many features of that new apartment, townhouse, or condo, take the time to consider building safety before you rent. Can the structure sustain damage by wind, fire, or flood?  Renters insurance can cover the loss to your property, but your life is considerably more valuable.

(NewsUSA) - In December 2004, a fire destroyed three townhouses and damaged a fourth in Lorton, Va., just south of the nation’s capital. Investigators later determined that faulty wiring had sparked the blaze.

Raul Castillo, a spokesman for the Fairfax County Fire and Rescue Department, said that fire marshals digging through the rubble uncovered an anomaly in the internal wiring at the back of one of the townhouses. This launched the fire, which spread to the adjacent townhouses.

Two firefighters were hurt, one burned, while navigating the smoky townhouses in the pre-dawn darkness. Seven adults were left homeless by the fire, which marshals estimate caused at least $800,000 in damage.

To avoid such a disaster, the National Concrete Masonry Association advises that you evaluate a building’s fire safety when you rent or buy a home in a multi-family dwelling, or if you are planning to lodge somewhere overnight or house your loved ones in college dormitories or nursing facilities. Buildings should contain these three components of a balanced fire-safety design: smoke detectors, sprinkler systems and concrete masonry walls between housing units. These elements, working in concert, provide the highest levels of safety and property protection.

Find out if the building’s walls and floors also are constructed of concrete and concrete masonry. Concrete masonry helps keep fire from spreading and does not produce smoke or generate toxic fumes. The NCMA recommends that you urge local building-code officials to ensure that multi-family homes adhere to the principles of a balanced fire-safety design, including non-combustible concrete masonry construction.

For more information on a balanced design for fire safety, go to http://www.ncma.org.

Masonry structures are well known for their ability to sustain damage caused by natural disasters.  Masonry building Inhabitants will also enjoy reduced rates on their homeowners insurance as well.

Part of planning for any natural disaster should include making copies of all your important documents. 

(NewsUSA) - The impact of disasters like last year’s Gulf Coast hurricanes is often long-term. As victims try to put their lives back in order, they frequently face the challenge of locating important documents that might have been lost or destroyed.

For many people, it takes a disaster to remind them of the importance of having copies of vital documents safely stored somewhere other than their homes.

A recent study commissioned by The UPS Store and Mail Boxes Etc. franchise network disclosed that 58 percent of those surveyed said that natural disasters have made them more aware of this need.

Yet only 21 percent of respondents have started preparing for a natural disaster. Of those who have started preparations, just over half indicated that they have taken steps to copy important documents.

The UPS Store franchisee Steve Spicer recommends that people make copying important documents a yearly ritual.

“Tax time is the perfect time to inventory and copy necessary papers,” he says. “We encourage customers to bring in important documents along with their tax returns. It just takes a few minutes and a few cents to duplicate each document.”

The survey indicated that a vast majority of respondents - 71 percent - consider their birth certificate to be among the most important documents to copy. Other documents cited include financial records, such as wills, bank records and credit card information (34 percent); insurance information (31 percent); social security card and related information (29 percent); and the deed for their house (20 percent).

There are a number of resources available to help people decide which documents are the most critical to have available in case of a disaster. The Red Cross provides a list of important family documents at http://www.redcross.org. The Federal Emergency Management Agency developed an Emergency Financial First Aid Kit, designed to help people organize their personal information, available at http://www.ready.gov.

In addition to important identification and financial documents, people shouldn’t overlook items that have sentimental value. Often the loss of cherished items is more devastating than anything else. For that reason, one-of-a-kind items like cards, letters and photographs should be copied and saved along with legal documents.

Make sure you copy those drivers licenses, passports, insurance papers, and credit cards today so you’ll be prepared tomorrow. Don’t overlook a disaster recovery plan for your business either. It’s just as important to secure electronic data off the premises as well as copy your business licenses, permits and other important documents.

You may have heard that drivers under the age of 25 are unable to rent a car.  We’re beginning to see a change in this trend, although it does come at a cost:

(NewsUSA) - Based on the commonly held belief that people in their early 20s are more prone to risky behavior while driving, many car rental companies have restricted renting cars to people under the age of 25 for years.

But with increased competition in the car rental market forcing companies to re-evaluate many long-held assumptions, some car rental companies are relaxing their rules to allow drivers under 25 years old to rent vehicles.

Unfortunately, to many young drivers, this comes at a cost.

During a four-day vacation with three friends to Miami, Eugene Minkin, 23, rented a vehicle from Alamo Rent A Car. Minkin was informed of a $30-per-person, per-day fee that he had to pay due to the fact that he and his passengers were all under 25. In addition, he had to purchase insurance and pay the usual four-day rental rate. The total for the rental came to over $650.

Despite the high cost, Minkin felt fortunate to be able to rent a car, where in recent years such transactions would not have been possible.

However, for some companies, renting vehicles to drivers under 25 is not a new development. For instance, at most of its rental branches, Rent-A-Wreck has welcomed young drivers for years.

“By the early ’90s most of our locations were renting to drivers under 25 years of age,” said Jason Manelli, director of public relations for Rent-A-Wreck. “We now consider ourselves to be the experts on rentals to younger drivers, with many of our locations even renting to drivers 18 to 21 years old.”

Typically, drivers under the age of 25 who are renting a vehicle from Rent-A-Wreck must have automotive insurance coverage, a credit card in their name and must make arrangements to rent a vehicle several days in advance so references and insurance coverage can be verified.

Some Rent-A-Wreck locations even run credit reports on young drivers and look at their driving records. These extra considerations help to weed out the drivers who have earned their 20- to 24-year-old counterparts a bad reputation in the rental car industry, allowing responsible young drivers to get behind the wheel of a rental car.

To learn more about Rent-A-Wreck, visit www.rentawreck.com.