Insurance and Credit

Every summer, millions of people embark on driving vacations across North America. Before you hop in the car this summer, it is important to be aware of important aspects of summertime traveling in Canada and the United States. The following is a list of driving tips that will help make your North American driving experience both safe and enjoyable.

Car Rental: Often people will choose to rent a car because it safe and reliable. The size of the vehicle will affect your gas budget. Smaller cars tend to burn less gas. Larger vehicles will have more space for luggage and gear. Front wheel drive will safely transport you across most of North America, but some locations may have rougher terrain so before you rent, make sure you are aware of the type of roads you will be driving on. For instance, will you be driving in a mountainous area or flat paved road? Make sure seating is both comfortable and roomy. Small cramped seating will make the trip an unpleasant experience. If you are going to travel in the south, make sure you have air conditioning for the hot climate. If you have small children, music or even a television in the back will keep them occupied if you are on the road for long periods of time. Also, make sure you have both liability and collision insurance coverage. You never know when an accident may occur.

Road Side Emergency Kit: In the event that you find your self stranded on the side of the road, you should make sure that you have an emergency safety kit. Basic items to include in a kit are a pair of 12 ft jumper cables, road side flares, flashlight and extra batteries, extra quart of oil, first aid kit, tire pump, tire sealant or patch kit, brake fluid, antifreeze, window washer fluid, and some extra rags. You should also have a good Roadside Assistance package and a working cell phone for emergencies.

Follow the Rules of the Road: North American traffic can vary according to the volume of vehicles on the road. Practicing defensive driving is essential to a safe road trip. Driving in both the United States and Canada is greatly policed. You can receive fines or even have your drivers’ license taken away for breaking traffic rules. You must be ready for dangerous actions of other drivers or hazardous driving conditions. Obey all traffic rules such as speed limits, traffic lights, stop signs, and railway crossings.

Maintain Traffic Speed: A vehicle traveling slower than the speed limit may cause a car crash. When entering and exiting freeway ramps, make sure that you maintain an average speed. Keep a safe distance behind the car in front of you. If a car suddenly slammed on the breaks, it could result in a car accident.

Weather Conditions: Rain, fog, and slippery roads, can make for hazardous driving conditions. Make sure you practice safe driving when in bad weather. Use headlights when appropriate.

Alert Driving: If you are driving for many hours, you can often be overcome with extreme tiredness. If you are tired, stop for a rest, or get another passenger to drive. Falling asleep at the wheel can be fatal.

A Heavy Load or Trailer Tow: It is important to take precautions when driving with a heavy load or towing another car, trailer, or boat. You need more space to pass other vehicles. Keep a safe distance from the vehicle that is in front of you. Before you tow something, make sure that your vehicle is properly equipped. When traveling slower than the traffic, put on your hazard lights or pull over to let vehicles pass.

Every year vacationers travel long distances across North America. When planning a summer road trip, make sure that you are equipped with the right knowledge and equipment to make your trip safe, fun, and memorable.

Disability insurance covers some or all of one’s salary in case one is able to work. This type of insurance may be provided by state governments, or by one’s employer. Unemployment insurance is meant to give you some income in case your job is downsized or lost, and workers comp insurance gives you some salary and also covers your medical bills in case you are injured on the job.

Some policies cover illnesses related to the job, but many cover any illness or injury that prevents you from working. Disability insurance is frequently a benefit given by employers at a low rate since it is part of a group package, and employees always have the right to subscribe to more if they prefer.

These kinds of programs are not intended to replace your full salary, but usually only cover a maximum of about 2/3rd of it, and usually less than half. If you have a home loan to pay, this may seem woefully inadequate, since a home loan payment can take up to half of one’s income in many cases. To protect what is probably your biggest asset, you may want to make sure you can keep up with your mortgage payments when you are sick for a while.

This is where mortgage disability insurance takes over. If you have mortgage disability insurance, your mortgage will be paid through the policy, regardless of another disability policy you may have.

If you have mortgage life insurance, it will take care of your family’s obligation to pay off the home loan in the case of your death. But a disability can wreak a great deal of havoc, and life insurance will of course not kick in. If you were not working for an extended period of time, would you or your family be able to carry the mortgage? This is the problem mortgage disability insurance addresses.

In addition, as is the case with so many of today’s households, both earners can be covered if they both contribute to the payments. If you or your partner is injured, and they are covered under the policy, you would still be able to make the mortgage commitment for a few years. You will still receive other disability payments to cover other living expenses.

There are different aspects to each mortgage disability policy, so be sure to understand each. It is important to be clear on all of the features of the policy before you commit to an insurance policy, for example what illnesses and accidents will it cover and if there a time lapse before the insurance will “kick in”. Once you have made all the comparisons of the offers, you can decide which premiums offer the best coverage for your circumstances.

Car accidents usually result in an increase in insurance premiums. Even if you are not responsible, your insurance company will have to incur some costs. There is an increase in car premiums and policy quotes because the accident will be rated against your coverage. There are a number of types of insurance coverage that can include collision, personal injury protection, and medical coverage. If you are found at fault’ for an accident, coverage such as personal liability and collision will cover you, your vehicle, and personal injury to the other driver. Often, if you have just one accident, you will see an increase in your car insurance quote.

Car insurance quotes will increase because you will be considered a high risk driver. The premium will reflect the nature of the accident and the costs associated with the accident. Insurance companies will usually charge ‘points’ to your policy. Depending on the insurance company, these points will be charged to your policy for a certain period of time that usually ranges from three to possibly seven years. If you are in an accident that was your fault, the insurance company will consider that you are a high risk of having accidents in the future and increase your rates. You will also receive higher insurance quotes. The length of time between an accident and your quote and premiums decreasing depends on a providers policies. As well, you may have to pay a higher deductible for the insurance.

Another reason why an accident can increase your premiums when you are ‘at-fault’ in an accident is that there are some companies who will not insure you. When there is less competition for your business, then there is less incentive to give you a good deal. As a result, your insurance quote will be higher. When you add the insurance ‘points’ into the mix, it is easy to see how an accident can become very expensive. If you have a faultless driving record, it is unlikely that your premiums will increase after an accident that was determined not to be your fault.

You can normally expect a rate increase of between 20-40%. This increase is based on the Insurance Services Office’s (ISO) criteria of raising a premium after an accident. According to the ISO, for multi-car policies, the surcharge is 20 percent of the base rate, and for single-car policies it is 40 percent. It is important to remember that there are other factors taken into consideration after an accident such as your age, gender, and driving record. These factors will affect how high the percentage increase will be.

The increase in premiums is not done so that the insurance money can get their money back, but is based on the risk that you may be involved in another car accident. Each insurance company has different policies and standards, but they look at your chances of getting into another accident. The number of accidents that you are involved in also increases your insurance premiums.

Some companies will absolve past accidents after a set period of time has expired. This can be two years, or as much as five years, but the period will vary depending on the insurance provider. Basically, you have to show the insurance company that you are no longer a high risk driver.

The best way to avoid high car insurance quotes is to avoid an accident. You can do this by practicing safe driving. One car accident can seriously impact your car insurance quote and the premium that you will pay.