Aug

4

Speed, Safety and Cell Phones

Filed Under Auto Insurance, Auto Tips | Leave a Comment

According to the results of a research conducted by the Center for Auto Safety and Public Citizen on the safety effects of using cell phones and other wireless communications devices while driving, speaking on mobile phones while driving poses a higher risk of road accidents than drink-driving.

This observation has been seconded by a group of researchers in Utah who claim that drivers are more accident-prone while talking on their mobile phones – even hands free models – due to the inattention blindness induced during a telephonic conversation that increases their reaction time and reduces their ability to process visual information promptly.

These studies seem to have struck a chord with the US government which issued the new Wireless Communications Device Law, effective from January 1, 2009, which intends to regulate the use of wireless communications devices in motor vehicles. As per the law, the state considers it an infraction to write, send or read text-based message on an electronic wireless communications device, such as a cell phone, while driving a motor vehicle.

Though all agree that talking on a cell phone while driving is not only distracting but dangerous as well, not much has been done to change it. However, a number of insurance companies have decided to start charging higher premiums from their clients if they get caught talking on the phones while behind the wheels.
If you do not want to feel the pinch of such policies on your pocket, it would be wise to invest in a range of hands-free auto accessories that are available in the market. There is a wide range of cell phone devices available for people who need to stay connected on phone but constantly worry about taking a call while driving and having to pay a penalty for the same.

You can select from a wide array of cell phone car-kits, hands free devices, headsets, speakers, speakerphones and other automotive phone accessories so that you can drive with both hands even while attending a call. This will provide hands free mobility for you while driving, allowing you to talk and drive safely at the same time.

One of the key features that you should look for while buying hands-free auto accessories are that it should be compatible with multiple cell phone systems such as CDMA, TDMA, GSM, AMPS and PHS. Moreover, the car accessory kits that usually include a speaker phone, a headset and a hands free device should have echo cancellation and noise suppression feature, adjustable volume, earphone jack for privacy and a good quality holder, which preferably rotates 180 degrees for greater comfort while handling calls.

These hands-free car kits (HFCK) generally use Bluetooth as their wireless technology and include headsets as well as personal navigation devices (PND). Some of the latest HFCKS are equipped with voice recognition feature and allow the driver to connect to his or her phone even if it is left in the pocket, purse, backpack or briefcase.

With technology geared to add to the comfort of everyday life, this new generation of communication technology will definitely help keep the drivers’ hands on the wheels and their attention on the road.

Jul

15

Insuring a Modified Vehicle: No Two Cases Are Alike

Filed Under Auto Insurance, Modified Vehicles | 2 Comments

Just as no two modified vehicle are alike, no two visits to the insurance man to protect those cars will turn out the same way. Insurance companies are in the business of assessing and essentially betting on risk. Many factors go into those assessments — age, gender, driving record, and occupation to name a few. Owners of modified vehicles should be prepared to document all alterations made to their cars and to argue on a case-by-case basis for each. Facts are your friend in insuring a modified vehicle, followed closely by attitude.

First, do not, under any circumstances lie about a modification. Full disclosure is an absolute must. If you do not disclose a modification the company is within its rights to terminate your coverage in the event of an incident. The company can claim that any change, even something as simple as changing out the front seats, alters the driver’s perception of the road thus creating an unsafe situation. The only way to counter that is to disclose the change with full documentation of exactly how the modifications affect safety and driving performance.

At the same time, while you should not lie, you should also couch your disclosure in terms the company wants to hear. A change that increases rpms and horsepower to enhance speed, while sexy to your ears translates to fast, reckless driving in the insurance world with a greatly increased chance of an accident and claim. Talk in terms of engine efficiency. Downplay the speed demon aspect of the change or emphasize that it is for on-track use only. Make it clear that the vehicle is always securely stored and not driven daily. Show proof of membership in a car club or an enthusiast organization to illustrate that you value the car. Highlight the presence of theft deterrent systems like GPS tracking and monitoring.

Be prepared to negotiate every change individually and realize that some changes may counterbalance others. An improved braking system, for instance, may take some of the premium sting out of an engine modification that enhances speed. But also, be realistic. Some things the insurance company will not like no matter what you do. It’s hard to make a case for the safe use of a roll cage and a nitrous oxide injection system. If, however, that equipment can be removed for off track use, you may be able to negotiate a better rate.

After each modification, apprise the insurance agency of the change and review the terms of the policy. Be sure you understand the following insurance terms:

Actual Cash Value: A policy that will pay benefits at a depreciated “book” value. Modifications will not be covered.

Stated Value: A policy that accepts a value for the vehicle at the time the coverage is written but that does not bind the company to using that value in determining a claim payment.

Agreed Value: The only policy that gives the owner a complete return on modifications. Coverage considers the cost of totally rebuilding the car with identical specifications.

The most important thing to remember in a modification scenario is to never let the policy languish. In essence “modify” the coverage every time you modify the car. Disclose everything. Document everything. Be prepared, if necessary, to educate the insurance company. Be reasonable, understanding that some modifications are more expensive in insurance terms than others, and shoot for the best middle ground premium that meets your needs and also suits their risk profile.