There are many who complain about all the irrelevant factors insurers take into account when setting premium rates. It’s unfair for them to look at where we live. And just what do out credit scores have to do with how well we drive? They are all for the assessment of risk being personal with the lowest premiums going to the drivers who manage to act like angels, avoiding accidents and never picking up tickets. In reality, this is all a matter of pure luck. No matter how well or defensively you drive, this fails to consider the maniac behind the wheel of the other vehicle that comes plowing into you. Or the magic day you got pulled over and the officer took pity on you and waved you on with a verbal warning.

So what do you do if you pull the short straw of the day and pick up a speeding ticket? Well, the first decision is whether to fight. Sometimes, going to court to argue the merits can pay off. The officer may be ill that day and no one appears to give evidence against you. Who knows. Anything is better than picking up those points. Except. . . except there are some states where you can do something to take back time. In California, Florida, New York, Wisconsin and, now, Michigan, there are driver improvement programs.

Let’s take the new law in Michigan as our example of how these programs work. If you pick up a ticket worth four points or less, you have a choice. Go through a drive improvement course and have the points removed from the record, or accept the points and run the risk your insurer will increase your premium rates. Not exactly one of these rock-and-a-hard place decisions. If you do opt to go through the course, you have 60 days to complete it. Most of these courses last between four and eight hours so there’s not that much of a commitment in terms of time. Some are offered online rather than behind the wheel. They also tend to be priced quite reasonably. So, you complete the course with a passing grade, you pay the fine and your points are removed.

Except this is not an automatic get-out-of-jail-free card. If the ticket carries more than four points or this is your second offense within a twelve month period, there’s no escaping the points. The idea is to give you a chance to prove your intention to improve as a driver. It’s a little like an anger management course for those who get into potentially violent arguments. Take your chance to reform and you are safe. Read the rest of this entry

If you’ve recently gotten an auto insurance premium quote and are happy with the amount you need to pay for the policy, then pat yourself on the back for being a good driver – because that probably has a great deal to do with your rate.

But your work isn’t over yet – because while you may have a great, low rate to pay this year, any number of little driving mistakes could work to increase the premium you must pay next year when the policy renews.

Avoiding Rate Increases

Some rate increases are unavoidable – like those that are spread amongst all policyholders equally rather than being determined by policyholder-specific data. Other rate increases have to do with age and marital status – things you either can’t help or don’t want to enter into solely based on how they affect your premium.

The last group of rate increases occurs as a direct result of your driving habits, and these are completely avoidable. In order to maintain inexpensive rates, try the following. Read the rest of this entry

Over the last week, the international headlines have been dominated by the disaster in Japan. First came the earthquake registering 9.0 on the Richter Scale. This makes it one of the most severe earthquakes since accurate record-keeping began. Then came the tsunami. With only minutes, there was no evacuation. Instead, a wall of water some thirty feet high, swept everything in its path to destruction. Now we watch as Japan struggles with a nuclear disaster in one of its major power stations. At times like this, our hearts go out to the survivors. It’s one of the worst tragedies in a developed economy for the last ten years. But this is not just a time to reflect on how fragile the Earth is and how easily our civilization can be disrupted. We must also look to home and review the preparations we have made should there be local problems.

The West coast sits on the Pacific Ring of Fire and, at some point, there may be a major quake affecting California. We should wonder whether the nuclear power plants in the areas most at risk will fare better than those in Japan. Southern California proudly boasts the design for the San Onofre Plant will survive a 7.0 quake. As a word of explanation, every change in a whole number, say from 7.0 to 8.0 means the quake is ten times as strong. It would not hurt to look carefully at the safety issues at all plants close to areas at risk of a quake.

Closer to home, we should take out our own insurance policies. Remember, the wording used by insurers is very precise. If it says something clearly, that is all it says. There is nothing more. Do not make the mistake of assuming the words will include everything you hope. So, for example, a reference to wind damage may cover the fall of a tree on to your home, but not a tornado that lifts off your roof. Sadly, tornadoes are rather specific events and more common in particular parts of America. They are always dealt with as a special endorsement. So what is included? In most policies, you are covered for accidental damage to contents, and damage to contents and structure by fire. You will be able to replace much of what has been taken in a burglary and “ordinary” wind damage is usually included. But after that, you are into formal additions to the policy. Read the rest of this entry

You might think this is another of these articles rambling on about distractions while driving. Yes, there are manufacturers who build in technology to watch TV or play DVDs. Most people in the back seat might think this a good idea but, from the driver’s point of view, driving gets more exciting when you have to turn around to catch the replays. But, as it happens, this is about something completely different. Do you remember the reality show called Motormouth? This was one of these “play-a-trick-on-your-best-friend” shows in which unsuspecting drivers would be encouraged to sing while navigating local streets. The results would then be viewed by a panel consisting of the show’s producer and friends. A winner was then declared and embarrassed by being shown up as the person least likely to succeed on American Idol (even with Jennifer Lopez as a judge who can’t say no). Well, here comes a real-world version designed to impact driving standards on your local streets.

One of the most unnerving of all moments for a parent is when their teen gets a driving license and then demands the keys to the family car. The statistics all suddenly leap into focus. Tens of thousands of teens are killed and injured on our roads every month. When you hand over the keys, you are praying your teen will not end up a statistic on a local hospital gurney. Yet, there has been a quiet experiment going on in Wisconsin since 2007. It’s called the Teen Safe Driver Program, run by American Family, a local insurer. The company offers parents a discount on the policy for their teen if the company is allowed to instal cameras inside each vehicle.

The way the package works is simple. One camera watches the road. The other captures the expression and body language of the driver. This is a realtime stream. If there’s a dramatic event, brakes are suddenly slammed on or there’s a violent swerve, the package saves the images for the twenty second before the event and notifies the parents. Everyone can then view what happened before, during and immediately after the event. Yes, there’s a remote website where authorized people can access the recordings and see exactly what the driver was doing. Mostly, it’s just the parents who see how badly their teens are driving. But obviously, the insurance company, police and other authority figures also have a interest in a factual record of what happened to decide who was at fault in any accident. Read the rest of this entry