ATD Insurance

TIPS FOR SURVIVING EXTREMELY HOT WEATHER

A heat wave is defined as three or more days of temperatures 90 degrees or higher. Most summers you can count on at least one heat wave, so remember these tips for surviving extreme heat in good health:

• Slow down. High heat and humidity put stress on your body as it tries to regulate internal temperature.
• Exercise early in the morning or in the evening after the sun goes down.
• Drink plenty of water all day - at least eight glasses a day, or two to four glasses an hour (16-32 ounces, or one to two quarts) if you are working or exercising in extreme heat.
• Increase salt intake to replace salt lost in sweat (if you're on a low-sodium diet, check with your doctor first).
• Dress in lightweight, light-colored clothing which reflects heat, and wear a hat to keep the sun off your head.
• Stay out of the sun during the hottest part of the day. If you can't, get out of the sun occasionally and take a break in a shady, cooler place.

Pay attention to your body. Early warning signs of heat stress include:

• headache
• heavy perspiring
• high pulse rate
• shallow breathing

If you experience any of these symptoms, sit down in a shady, cool location and drink water. If symptoms persist, seek medical attention.

A recent study by the Federal Trade Commission (FTC) determined the use of credit scores by automobile insurance companies has a strong relationship to the risk of loss of a driver. The FTC found that use of credit in the underwriting process increases the availability and affordability of insurance for most consumers. This finding is supported by similar studies conducted by the Property Casualty Insurers Association of America (PCI). "Using credit information makes underwriting and pricing more accurate, and results in many consumers paying less for their automobile and homeowners insurance policies, " said June Holmes, interim CEO for PCI.

Insurers have found the use of credit scores, when combined with other underwriting tools like driving record and driver age, help insurers better predict who the most profitable policyholders will be, and apply the best rate to those drivers. The use of credit scores in auto underwriting has also me insurers more confident to take on high-risk drivers. Insurers now feel they have an objective and statistically sound way to qualify those drivers and feels sure they are collecting an adequate premium. So, while the cheapest rates cannot be offered to all drivers, those drivers that most deserve the best rates can feel confident they are paying a fair price associated with their underwriting characteristics, and drivers with less positive underwriting characteristics can be more confident in finding auto insurance available to them.

A review of law enforcement records indicates that some cars are ticketed more than other cars. Here is a list o the five most, and five least, ticketed autos.

Most Ticketed

1. Hummer H2

2. Scion tC

3. Scion XB

4. Mercedes Benz CLK63 AMG

5. Toyota Solora Cpe

Least Ticketed

1. Jaguar XJ

2. Chevrolet Suburban

3. Chevrolet Tahoe

4. Chevrolet Silverado

5. Buick Park Avenue

The unthinkable happens - a faulty electrical connection causes a fire in your kitchen. While the fire is isolated to the kitchen, there is smoke damage throughout the house that makes it unlivable. There is an often-overlooked coverage in your homeowners policy that can help you in this situation.

Additional Living Expense (ALE) coverage is an automatic part of your homeowners coverage. The coverage limit is usually about 20 to 30 percent of the limit you carry on the house structure. So, if your house is insured for $100,000, you would probably have at least a $20,000 limit for additional living expense.

The key to understanding this coverage is the term "additional". ALE coverage pays for expenses that you wouldn't have if not for your insurance claim. If your meal expenses are higher than your grocery expenses were before the loss, this coverage will pay you the difference. The goal of this coverage is to keep you in the same financial condition as before the loss. The coverage pays for temporary living expenses such as living facilities, meals, moving expenses and temporary rentals.

Truth and accuracy are vitally important to auto insurance companies. A few examples will help you understand just how important accurate information is in the underwriting process.

• 20 to 30 percent of policies contain unreported youthful drivers, which results in an inadequate amount of premium being collected for the risk
• 25 to 60 percent of policies contain under-reported vehicle use
• 48 percent of household auto policies experience a change of vehicles or drivers each year for which insurers are not always made aware.

These errors, being either the result of carelessness or misrepresentation at the time of the application, amount to nearly $15 billion in lost premium income. To each of us, that means we are paying approximately 10 percent more for our auto insurance that we should have to pay. Insurers are using sophisticated data to narrow this gap, but the very heart of the problem is collecting honest and accurate information from the policyholder.

The good news is most of us do not try to the cheat the system. People are generally honest, but a few wish to take advantage of others for their own gain. If it is determined later that a policyholder knowingly misrepresented information on their application for insurance, and this information was material to the company rating, or accepting the policy, the policy can be rescinded and the insurer can refuse to pay a claim.

Most personal auto policies extend whatever coverage you have on your own vehicle to a short-term rental vehicle if the rental vehicle is a private passenger car, pickup truck, van or trailer. However, with regard to damage to the rental auto, the rental car company might be able to charge fees for losses or damages to the vehicle that might not be covered by your insurance policy, such as loss of use when the auto is withdrawn from service for repair, or diminished value upon resell. Therefore, it is often a wise idea to purchase the rental company's "collision damage waiver" (CDW).

If you do not have your own insurance, many car rental liability policies cover you, but usually only at the state's required minimum, which are usually extremely low limits. Also, you should buy the collision and comprehensive coverage offered by the rental company for your own protection.

A CDW simply releases you from financial responsibility if you damage the vehicle you are renting, provided you comply with the terms of the rental contract. The terms of CDW's can vary considerably, and CDW's are not state-regulated, which means they are technically not insurance.

It's always a good idea to review your policy before renting a vehicle and, if necessary, call your agent.

The Midwest continues to enjoy some of the most affordable insurance rates in the nation. There are many reasons for this, but one very important reason is what your insurance carrier is doing to avoid larger premium increases. In recent years, price increases have not only been driven by inflation but catastrophic events as well. In 2004, tornadoes accounted for more than 30 percent of all catastrophic losses. We are all aware of the rash of hurricanes in the Gulf in recent past. In 2007, flooding ravaged the Northeast, and in 2008, the Midwest and Plains states suffered their second 500-year flood in the last 15 years. Catastrophes are equal opportunity events.

With the large catastrophe payouts over the last few years, all insurance companies have faced higher reinsurance premiums (reinsurance companies collect a percentage of the premium taken in by your insurance company in return for guaranteeing portions of their claims. This reinsurance mechanism helps spread the effects of losses worldwide). With few places to go to pay for the increases in reinsurance costs, insurers will continue seeking modest premium increases.

Most insurance companies have been diligent about trimming overhead throughout the past couple of decades, and advances in automation have made the industry one of the most efficient in the financial sector. The unique, and hat some believe excessively strict, accounting standards required of the insurance industry have worked to make insurance one of the strongest of the financial sectors.

Companies continue to look for ways to trim costs without compromising quality. With all these efficiencies, our companies are still no more immune from the effects of inflation than any of us are individually. Their costs associated with auto and home repair or restoration, medical bills and other insurance-related expenses continue to climb, and the margins to absorb the increases have become very slim. As your agent, we are always ready and willing to work with you to determine the coverages and deductibles.