The Winding Road of Automobile Insurance

A personal automobile insurance policy is an important part of today's mobile society. However, like any type of insurance, there are a maze of options, terminology, and costs associated with insuring your automobile. Here's a quick look at some key components of a typical automobile insurance policy.

Comprehensive. This is the "plain vanilla" of automobile insurance. Also referred to as auto liability coverage, it protects the "named insured" from liabilities as listed in the insurance contract. Liabilities typically covered include injury to others or damage to the property of others as a result of a car accident. In addition, comprehensive coverage generally protects the insured while driving someone else's car or a rental vehicle.

Collision. Although this type of coverage can considerably add to a policy's overall cost, it's a valuable component, especially if you own a newer or higher priced automobile. Also referred to as auto physical damage coverage, it covers the damage to or theft of the automobile insured through the policy. Generally, coverage pays for repairs or provides for the replacement or reimbursement of a "totaled" or stolen vehicle, not to exceed the vehicle's fair market value (FMV).

Medical payments. Some policies have separate costs for coverage associated with medical expenses of the named insured or others riding in the insured vehicle. In many cases, these expenses are covered even if the named insured is not at fault, or if the named insured is not driving the vehicle. Coverage is generally limited to a stated dollar amount in the policy (e.g., $2,500 per person).

Uninsured motorist coverage. This coverage helps pay for damages or medical expenses (exceeding the limits of medical payments coverage) in an accident caused by an uninsured motorist. Because some states do not require automobile insurance, or some "risk takers" illegally drive an uninsured vehicle in a state where automobile coverage is mandatory, there is always the chance you could be in an accident and the other party involved is uninsured. If the other party is at fault, you'll be hard-pressed to recover damages. For this reason, uninsured motorist coverage is often a valuable addition to a policy.

If you would like additional information regarding a current policy or have questions about what type of coverage you should have, contact your automobile insurance representative.

Smart Idea—Keep an Inventory of Your Valuables

Try closing your eyes and listing your living room furnishings or the contents of your jewelry box. If you have trouble coming up with a complete tally, imagine how hard it would be after the stress of a fire or burglary. Making a written inventory of your household valuables can be one of the best money-saving steps you can take. Property insurers are less likely to question claims based on such inventories, particularly if you submit photographs, videotape, receipts, or an appraiser's statement for valuable items. Your insurance company may even be able to give you a useful inventory form to fill out. Make sure to keep a copy of your inventory of household valuables with your insurance agent or in your safe deposit box.

Homeowners Insurance—Protects More
Than You Realize

Most homeowners are familiar with Part I of their homeowners insurance policy, which covers damage to their property. However, many policy holders are surprised to discover the extent to which Part II of a standard policy protects them against bodily injury and property damage a family member may cause others.

Part II protects you up to a stated limit for comprehensive personal liability. And, the coverage may be broader than you think. Take the following quick quiz. True or false?would your homeowners policy protect you against liability in the following situations?

Your son leaves some of his belongings on the floor of his college dorm room. A roommate trips over them and breaks his arm. The roommate sues you for injuries.

Your daughter gives a friend permission to walk her dog while she attends soccer practice. During the walk, Rover gets overexcited and bites a tot playing on the sidewalk. The child's parents initiate legal action against you to recover the cost of medical bills.

You send your housekeeper to the grocery store. In the parking lot, she loses control of the shopping cart. The runaway cart strikes an elderly woman, causing her to fall and break her hip. The woman sues you for medical expenses.

While cutting down a tree on your property, the tree falls in the wrong direction and lands on your neighbor's roof. Your neighbor moves to a motel while the roof is being repaired. Your neighbor sues you for property damage and the cost of his motel expenses.

The good news is that in all these situations the answers are "true." Your comprehensive personal liability coverage will most likely protect you. And, to make matters even better, Part II may also cover your legal defense costs if an injured party decides to sue. Though Part II may contain some exclusions and limitations, such as for intentional injury to others and for business and professional activities, you may be pleased to learn that, for no additional cost, the same policy that covers your home protects you in more ways than one.

Safety Tips for Trampolines

Trampolines have become very popular in recent years. In 1998, an estimated 640,000 backyard trampolines were sold in the United States. And in the 2000 Olympic Games held in Sydney, Australia, trampoline gymnastics was a featured sport.

Unfortunately, along with increased popularity has come increased injuries. In the last decade, hospital emergency room-treated trampoline injuries have almost tripled — from 37,500 in 1991 to almost 100,000 in 1999. Nearly two-thirds of the victims were children 6 to 14 years old. Most of the injuries result from jumpers colliding with one another, falling on the springs or frame, attempting somersaults or stunts, or falling off the trampoline.

To reduce injuries, the U.S. Consumer Product Safety Commission (CPSC) has worked with the industry to develop new standards for trampolines which became effective in 1999. These requirements include:

Padding must cover the frame, hooks, and springs.

A label on the box must state that trampolines over 20 inches tall are not recommended for children under age 6.

Ladders cannot be sold with trampolines, to prevent use by young children.

Warning labels must warn against more than one person jumping at a time and against somersaults which can cause paralysis and death.

In addition, the CPSC recommends the following safety tips:

Allow only one person on the trampoline at a time.

Do not attempt or allow somersaults.

Do not allow trampoline to be used without shock-absorbing pads that completely cover the springs, hooks, and the frame.

Place the trampoline away from structures and other play areas. Use shock-absorbent material on the ground around the perimeter.

Do not use a ladder with the trampoline because it provides unsupervised access by small children. No child under 6 years of age should use a regular-size trampoline. Secure the trampoline to prevent unauthorized and unattended use.

Always supervise children who use a trampoline.

For more information on trampoline safety, go to http://63.74.109.12/cpscpub/pubs/085.html