Car Accident Injury: Which Insurance Pays the Bill?

The answer is: The car insurance pays first. Most states require motorists to have personal injury protection. The amount of coverage can vary depending on the premium you decided to pay. So, the medical bills will be charged up to the limits of your auto policy, and your responsibility will be to pay up to the deductible. Once that limit is crossed, your health insurance policy steps in to cover the rest of the cost for the car accident injury.

However, note that -- depending on what kind of health coverage you have -- your insurance company will determine what is covered and what is not. So, be prepared to pay, for example, the deductible amount under the health insurance policy, any co-payments that are required, any charges from hospital/clinic that are not typically covered by the policy.

If you are the at-fault driver, be prepared for increases in your future policy premium. If, on the other hand, you are not the at-fault driver, the insurance companies involved may work behind the scenes to get the at-fault party’s policies to bear some of the costs. Victims of car crashes can also sometimes recover some of their out-of-pocket expenses by making that part of any car accident settlement agreement with the at-fault driver and/or their insurance carrier.

Car Safety-Rating

The window-stickers in new cars show scores from tests performed by the Federal Government's NHTSA (National Highway Traffic Safety Administration).

Nowadays, consumers are also advised to consult the scores given by IIHS (Insurance Institute for Highway Safety), a non-profit organization. Rather than duplicating NHTSA's crash tests, IIHS tests are designed to complement NHTSA's tests.

So, in making a good judgement on price-safety-comfort parameters, consider results from both organizations. Few vehicles pass all of them. However, we expect that - over time more and more cars on streets and freeways of USA will pass these as automakers continue to improve their cars' crash-worthiness to convert them into cash-worthiness for their customers.

So, to see crash-test results, consult the following sites:
NHTSA (National Highway Traffic Safety Administration)
IIHS (Insurance Institute for Highway Safety)

Beware of Car Smells That Could Be Trouble

If your car smells, you must pay attention to its maintenance. Here are some common car smells:

Gasoline smell: Today's cars have vapor-recovery systems to prevent gasoline vapors from wafting into the surrounding air. If you smell gas, it's possible that the vapor-recovery system isn't working properly -- or worse, that there's an actual gas leak somewhere.

Acrid/burning hair smell: The friction material that lines brakes can produce this smell, especially during hard use or abuse, such as riding the brakes.

Burning oil smell: This often is the result of a small leak in a gasket or seal that lets engine oil seep onto hot engine parts, where it cooks off. It's usually more of an unpleasant annoyance than an urgent problem. But small leaks can become bigger leaks. If the oil smell is coming from the tailpipe (look for smoke with a bluish haze), it is a symptom of a worn-out engine in which oil is seeping into the combustion chamber and being burned up along with the air and fuel.

Rotten egg/sulfur smell: This may be a sign that the catalytic converter isn't working properly. There could be a problem with the converter itself or with the engine.

Sickly sweet/oily smell: This could be engine coolant. If you notice this smell outside the car, check underneath for puddles and drips to see if there is a leak somewhere in the cooling system. If you notice this smell inside your car, check for dampness around the passenger side foot well. If you find wetness, you probably have a leaking heater core.

Musty/moldy smell: Condensation may be collecting in the vehicle's air-conditioning system instead of draining out as it should.

Insurance of Rental Car

Most of us don't give much thought to insurance aspect of car rental until we're offered coverage at the rental car counter. It can be a costly mistake if there's an accident and the driver doesn't have adequate coverage. At the same time, drivers shouldn't have to pay for insurance that duplicates coverage on their personal auto policies or is available via some credit cards.

The two most important types of coverage for drivers are a collision damage waiver, sometimes called a loss damage waiver, and liability insurance. The collision damage waiver relieves the driver of financial responsibility if the rental car is damaged or stolen, while the liability insurance covers costs if the driver is in an accident and is sued. Accepting the collision damage waiver and liability coverage from a car rental agency can add between $16 and $33 to the daily cost of the car, according to the Insurance Information Institute.

You should check your personal insurance policies to see if you already have coverage. In the vast majority of cases, whatever coverage you have on your own personal auto policy is going to extend to your rental car. But the big caveat is that the car is being rented for pleasure, not business. So drivers who have comprehensive and collision coverage as well as liability coverage in their personal policies can decline coverage offered by rental car agencies.

If you're not sure, call your (insurance) agent and ask what coverage you have on a rental car. This isn't an option for families who don't own a car or who have dropped the comprehensive and collision coverage on an old car. In these cases, an alternative is to use a credit card such as Visa, MasterCard or American Express, that provides insurance protection as a benefit. The insurance benefits can vary depending on the credit card issuer and whether the card is basic or premium, so it is better to check the card issuers' Web sites or call the card companies to confirm coverage.

Consumers who take advantage of these credit card-related collision damage waivers may want to supplement it with the liability insurance offered by the rental agencies. Rental car companies also offer other insurance options to customers, some of which may duplicate personal coverage. These can include personal injury insurance, which provides a one-time payment if the driver or a passenger are maimed or killed, and personal property insurance, which covers the theft of goods from a car. However, most people don't need to buy either. If you have a health insurance policy, the odds are you're covered for personal injury. The theft of personal property often is covered in a homeowner's or renter's insurance policy and likely isn't necessary.

Enjoy New Year & Avoid Drunk-Driving

'Friends don't let friends drive drunk'

Each year, the number of accidents and crashes spike on New Year's Eve. So, during this holiday season, try your best to avoid such mishaps and also help your guests to stay safe, too, if you are hosting a party, by following these simple tips:

o Ensure that all guests have a ride to and from the party in a car driven by a nondrinking designated driver.

o Plan activities that take the focus away from nonstop drinking, and make non-alcoholic beverages readily available.

o Serve high protein snacks to slow down alcohol absorption.

o Put away alcohol and start serving coffee and dessert at least 90 minutes before the party ends.

o Take the car keys if an intoxicated guest is planning to drive home. Some guests may not like the idea of taking a cab home because they don't want to return again to take their car the following day. Take the following service from the Auto club then, if it's available in your state.

o Take the service of AAA's Tipsy Tow' program. The Auto Club offers a complimentary ride and tow back to the guest's residence up to a certain distance (for example, 7 miles in Southern California but 18 miles in Oklahoma) as a part of the club's public awareness campaign 'You Drink. You Drive. You Lose'. Even non-members of the club can get the ride. Callers need to keep in mind that the service excludes rides for passengers, is restricted to a one-way, one-time ride for the driver and the destination is limited to the driver’s residence. Reservations are not accepted. Drivers can expect to pay the rate charged by the tow truck contractor for rides farther than the maximum allowed distance. Call: 1-800-AAA-HELP (-4357).

Top 10 Cars with Best Resale Value

Chevrolet Corvette

Kelley Blue Book has released its annual list of Top 10 cars that should retain more of their original value by 2013 than the average vehicle.

On average, a vehicle will retain just 35% of its original value after five years of use. In other words, buying a new car today for $20,000 will mean you can expect to get just $7,000 for it after five years. Note that unpopular color, too many accessories and/or radical interior and exterior may reduce the resale value much more than this level simply because you'll get less number of buyers to bargain for the price.

Here is the Top 10 list ['Base price range' and 'Predicted 5-year retained value' are indicated in parenthesis after each car name]:

1) General Motors' Chevrolet Corvette ($47,245 - $55,585, 50%)
2) Honda Motor's Civic ($15,645 - $21,925, 52%)
3) Nissan's Infiniti G37 ($34,965 - $36,265, 52%)
4) BMW's Mini Cooper ($18,700 - $26,050, 52%)
5) Toyota Motor's Scion tC ($15,920 - $18,420, 52%)
6) Toyota's Scion xB ($16,270 - $17,220, 52%)
7) Toyota Corolla ($15,065 - $19,200, 52%)
8) Volkswagen's Eos ($29,555 - $38,630, 52%)
9) Volkswagen Jetta $17,630 ($23,465, 51%)
10) Volkswagen Rabbit ($16,130 - $17,075, 51%)

Car Warranty: Do You Need Dealer's Service?

While buying a new car, some dealers might tell you that you have to get the recommended service items regularly done 'at their shop' to keep your warranty in effect.

The subtly-forwarded incorrect part of this statement is 'at their shop'. You do not need to follow this, if you do not want. You can get service done anywhere; you can even do it yourself. Just keep records and receipts, should any questions arise over a warranty claim.

The part of the statement which holds true and you must keep in mind is that: If you do not follow the scheduled maintenance like oil changes and filters at recommended intervals, that can void a warranty.

Toyota Prius 0% Financing

One year back, if you wanted to purchase a Toyota Prius, you had to put your name in a waiting list and to wait for three to four months. Some customers were so enthusiastic to have one that they agreed to pay more than the sticker price.

But things have changed since then. The price of gas fell to around the two-dollar mark from three; Many people who wanted a Prius have acquired one; And Toyota increased the production of the hybrid. So supply, in some cases, exceeded demand and it's now consumer's turn to enjoy a hybrid ride.

Toyota is embarking on its first big ad campaign for the Prius, and also offering incentives to prospective buyers. That includes 0% financing for a rare few for two years, and 2.9% financing for three years. Also, you may be eligible for Federal tax benefits.

Fuel/Economy List for 2007 Cars

Toyota Prius

Today the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy released the 2007 Fuel Economy Guide to help consumers make well-informed choices when purchasing a new vehicle. Fuel economy estimates, which appear on the window stickers of all new cars and light trucks prior to sale, are determined by tests conducted by manufacturers and EPA according to EPA specifications.

Data show that hybrid vehicles continue to lead the government's fuel economy ratings. This year’s Toyota Prius, Honda Civic, Toyota Camry Hybrid and Ford Escape Hybrid FWD models top the list. Hybrid technology can be effectively used to improve fuel economy, as other models leading the list include the Toyota Yaris, Honda Fit, Toyota Corolla, Hyundai Accent, Kia Rio, Ford Escape 4WD Hybrid and Mercury Mariner Hybrid 4WD.

Here is the list by class of Highest fuel economy cars for 2007 model year [mpg -- miles per gallon in city roads/ highways]:

Compact Car: Honda Civic Hybrid, 49/51 mpg
Midsize Car: Toyota Prius (hybrid), 60/51 mpg
Large Car: Hyundai Sonata (manual), 24/34 mpg
Sport Utility Vehicle: Ford Escape Hybrid FWD, 36/31 mpg
Pickup Truck: Ford Ranger Pickup 2WD (manual), 24/29 mpg

...And here is list by class of Lowest fuel economy cars for 2007 model year:
Compact Car: Bentley Continental GT 12/19 mpg
Midsize Car: Ferrari 612 Scaglietti, 10/17 mpg
Large Car: Bentley Arnage LWB, 10/15 mpg
Sport Utility Vehicle: Jeep Grande Cherokee 4WD, 12/15 mpg
Pickup Truck: Nissan Titan 4WD, 13/18 mpg

Vacation With RV

Have you ever dreamt of taking a vacation driving an RV in countryside for a few weeks? We thought we should help you by giving some tips for RV rental today.

RV Types: The first question that comes to every RV-dreamer's mind is: What type of RV should I rent? The size you rent depends on how many people will be traveling. The vehicles most commonly available for rent are Type A motorhomes (sometimes called "bus" style, 27-36 feet long) or Type C mini-motor-homes (sometimes called "cabover" style, 17-27 feet long). Type A vehicles have a bedroom, a dinette that can be converted into a bed, and sometimes a sofa bed. Type C mini-moter-homes are smaller, with an additional sleeping area over the driver's cab, which is great for kids but can be a bit claustrophobic for adults. Both types have bathrooms with a shower.

Driving RV: Many rental companies allow you to try driving an RV before you rent. You should be aware of the vehicle's greater height, length and width. Don't take turns too tightly; You could run over the curb on right turns or graze oncoming traffic on left turns. Be sure to take sufficient care when backing up. Keep to the left in your lane to avoid drifting into the next lane to the right. And be aware of warning signs about low bridges or tunnels ahead.

Rental Cost: Rental costs vary depending on the season: higher in summer, lower in winter. Typically, a Type A motorhome will cost at least $130 a day plus mileage; a Type C will cost between $80 and $120 a day plus mileage. Bringing your own pots, pans, sheets, and towels will save you money.

Additional Costs: The main cost will be fuel. RVs usually get 7 to 12 miles per gallon, so the total will vary depending on whether you plan to travel every day or drive to a destination and vacation in one spot. Ask about fuel rebates. Other than fuel, campground fees can range from $10 to $50 a night, depending on the campground. You can save money by opting for only a water and electronic hookup instead of the full hookup which includes sewer.

Zero% Financing on Ford Cars

Ford Explorer

Ford Motor Co is currently offering a 72-month, zero-percent financing promotion on its cars. The program will run through Labor Day, in an effort to make room for 2007 models after another rough month of sales declines in July. Toyota outsold Ford for the first time ever in July as Ford cut back on sales to fleet customers, which had padded its true performance.

Zero percent financing will be available to customers with sub-prime credit ratings and not just customers in the top two credit tiers as has been the case with past programs.

The program will cover 2006 Ford, Lincoln and Mercury models, including the top-selling F-Series pickup line. But Ford will not offer zero percent financing on the Ford GT super-car and some larger F-series work trucks.

EPA: Car Mileage

There is no reason to have a total faith on the EPA (Environmental Protection Agency) mileage estimates on the window sticker when you bought your car or truck. Serious flaws in how those estimates are calculated overstate them by as much as 20%. With popular hybrids, which save gas by using electricity for some of their power, the difference between estimate and reality can be as high as 30%. At today's pump prices, that can easily put your annual gas budget a couple of hundred bucks on the negative side.

After years of complaining by consumer groups, the Environmental Protection Agency is about to fix its broken system. Under new rules proposed in January, starting in 2008 mileage estimates will better reflect real-life driving conditions. The result: Those window-sticker mileage numbers will drop by 10 to 20% for city driving, 5 to 15 percent for highway driving. The city figure for hybrids is expected to drop by a whopping 20 to 30%.

Also, starting in 2011, automakers will be required to test their cars to reflect the less-than-perfect driving habits and conditions that occur outside the laboratory - things like freeway driving speeds, stop-and-go driving during rush hour and the use of air conditioning. These new rules were pushed by Senator Maria Cantwell (Democrat-Washington) and was passed by the Senate but failed to make it into the final version of last year's transportation bill.

These changes were long overdue. The current tests are a product of the 1970s, and haven't been modified since the mid-'80s, when the freeway speed limit was still 55 mph. It also comes at a critical time, with gas prices expected to stay near or above current levels for the
foreseeable future, and sales of hybrid cars beginning to explode. Hybrids can cost several thousand dollars more than similar gas-only models, so buyers count on substantially better gas mileage to make up for that. Basing their calculations on inflated expectations has left many buyers feeling more than a little dejected or may be deflated!

Zero% Financing Ford Cars

Ford Explorer

Starting tomorrow Ford Motor Co will offer a 72-month, zero-percent financing promotion on its cars. The program will run through Labor Day, in an effort to make room for 2007 models after another rough month of sales declines in July. Toyota outsold Ford for the first time ever in July as Ford cut back on sales to fleet customers, which had padded its true performance.

Zero percent financing will be available to customers with sub-prime credit ratings and not just customers in the top two credit tiers as has been the case with past programs.

The program will cover 2006 Ford, Lincoln and Mercury models, including the top-selling F-Series pickup line. But Ford will not offer zero percent financing on the Ford GT super-car and some larger F-series work trucks.

Lights of Your Car

Your car's lights are the most important lights in your nightlife and all the time most of us remain forgetful about it. The following tips will help you see the road better, alleviate glare from other cars, and reduce glare that could distract other drivers:

Keep your car's headlights and windows clean. This increases headlights' effectiveness and reduces the glare coming from and into your vehicle. Keeping your eyeglasses clean helps reduce glare, too. If your car's clear plastic headlight covers have become clouded and darkened from aging effects, replace them with new ones. It will improve your ability to see the road and reduce glare from your car.

Use the "night" position on your rearview mirror to reduce glare from cars behind you. For the same reason, adjust your side mirrors properly. If you're buying a new car, consider equipping it with auto-dimming rearview and sideview mirrors, which are very effective in combating glare.

If you're temporarily blinded by oncoming headights, look slightly to the side, keeping your eyes on the lane divider or the white line on the roadside for a sense of direction, until the oncoming vehicle passes.

Use auxiliary lighting with care. If your car is equipped with auxiliary driving lights, be considerate to oncoming drivers. Use your high beams appropriately. You should not use high beams if an oncoming car is within 500 feet of your car or if a car you're following is closer than 300 feet. Also, don't use high beams in foggy or rainy weather. The water droplets reflect light back into your eyes .

On mountain roads, it's always better to keep your headlights on even in daytime to increase the visibility of your car to oncoming traffic.

Auto Insurance Tips

If you go to the street and ask people what they understand by the terms 'comprehensive' or 'collision' coverage, you will be surprised to find out that lot of them do not really know what these terms really mean, even though they go on paying their auto insurance premiums year after year. So, our today's topic is auto insurance:

Collision coverage: your insurer will pay for repairs to your car after a smashup if it was your fault or you can't collect from the driver who caused the accident.
Comprehensive coverage: protects you against other losses -- for example, if your car is stolen or vandalized, is hit by falling objects, catches fire or is damaged in a flood. In addition, the comprehensive covers loss of items installed in your car, such as a radio, but usually not anything that you are transporting in it (such losses are covered by your homeowner or tenant policy, as long as your car was locked when the theft occurred).

These two types of optional coverages may cause significant differences in premiums for various makes and models of cars. Their premiums are cheaper on cars that are harder to damage and easier to repair. Cars that are easily damaged in accidents or are popular for joy riders or are a valuable source of spare parts have more expensive premiums.

You may remember the following 3 tips while buying your auto insurance:
(i) Three Year Rule: In case of any mishaps, your insurer will reimburse you only upto your car's current retail value. This is very important and that's why you may consider buying both coverages when your car is less than three years old.
(ii) Largest deductible Rule: 'Deductible' is the amount you must pay before the insurer starts reimbursing you. Car owners typically accept deductibles of $250 but $500 might be better because that may reduce your premium by as much as 10%.
(iii) Too Old Car: If your car is more than 5 to 7 years old, or is worth less than $1,500, you may drop your collision and comprehensive insurance altogether and save money.

Car-Smart Abbreviations

Planning to buy a new fancy car? Well, before you do that you need an orientation so that you can understand what the dealers are referring to. Automotive manuals are now peppered with lots of acronyms and abbreviations reflecting the fact that cars are getting more and more complex as years are passing by. Here, we compile a glossary of such technical jargons:

ABS: Antilock braking system. This enables drivers to retain steering control during emergency stops by automatically "pumping" a car's brakes.

AWD: An 'All Whell Drive' system sends power to all 4 wheels, providing more traction on slippery or uneven surfaces than front wheel drive (FWD) or rear wheel drive (RWD). AWD is also referred to as four whell drive (4WD).

CVT: Typically using a belt instead of conventional gears, a 'Continuously Variable Transmission' is a smoother-operating and more fuel-efficient type of automatic transmission.

EBD: 'Electronic Brake-force Distribution' improves braking performance by varying pressure between the front and rear wheels according to the car's load and speed.

ESP: 'Electronic Stability Program', a skid-control system, determines a driver's intended direction based on steering and braking inputs and keeps the car on track.

LATCH: 'Lower Anchors and Tethers for CHildren' refers to a system in new cars for securing childrens' car seats.

OBDII: 'OnBoard Dagnostics' system, phase two, found in cars made in 1996 and later, sets off the "check engine" light if the engine or fuel system emits too much pollution.

PCM: The 'Power train Control Module' is a computer that manages the engine, transmission, and emissions system to maximize fuel economy and performance and to minimize emissions.

SRS: 'Supplemental Restraint System' refers to air bags, which enhance the effectiveness of the most important safety feature in cars: seat belts.

TCS: A 'Traction Control System' helps a car's wheels get a grip on a slippery surface when the driver accelerates. It's sometimes called ASR, or 'Acceleration Slip Regulation'.