Accidents can happen anytime, even if you are an extremely cautious and defensive driver! Most accidents actually occur within a 25 miles of the home, according to a Florida highway spokesman. Sometimes, they happen right in your own driveway. Just ask my sister-in-law who hit her friend’s car in her driveway while backing up! No matter where they occur there are a series of steps that should be followed after an accident.

The Consumer Protection Association of America continually develops a list of recommendations for drivers so that they’ll actually know what they need when a traffic accident occurs. This fine organization takes major steps to increase public awareness regarding traffic safety. Some of the steps are preventative and should be followed now before you’re involved in an accident.

One, have an emergency kit in your glove compartment or storage area. The kit should include a cell phone, pen, pad of paper, and a disposable camera (this is very important). With today most of us carry a cell phone, which takes pictures. As long as you insure that your cell phone is with you and carries a charge this should suffice for the cell phone and disposable camera in the kit. These items are for recording the key information regarding the accident and the scene. You should also have a card with information concerning any medical allergies or conditions you have that require special attention, as well as emergency contact information. It is also recommended by other agencies that you have a number list ed on your cell phone under ICE (in case of emergency), where the attending policeman or EMT can simply hit speed dial on your cell phone to reach your emergency contact. You should also have traffic cones, warning triangles and emergency flares in your trunk.

Two, you need to insure that safety is first! When you are involved in a minor accident and there are no serious injuries, make sure that the vehicles are moved to the side of the road. Do not stay on the road and become an obstacle to oncoming traffic. If you do this, it may result in the occurrence of more and more serious traffic accidents because of your vehicles creating an obstruction in the road. My wife was rear-ended by another woman on an exit ramp and they both left their vehicles on the ramp believing it to be safe and that it was important for the police to see the exact position of the vehicles. In spite of the fact that both vehicles were clearly visible for a minimum of 300 yards and they both had their flashers on, another drive came up and rear-ended the SUV that had originally struck my wife! My wife called me on the cell phone and told me what was going on and I told her to get those vehicles off of the road right away! If the car or cars is not movable, make sure that the other motorists are warned by turning on the hazard lights and setting out flares, traffic cones or orange triangles to divert traffic. If you cannot move the vehicle, do what you can to alert the traffic and then move away a safe distance in case of any further accidents.

When you are involved in an accident with serious injuries make sure that no one is in immediate danger (from fires, falling tress or telephone poles, etc). After you have made sure of this, attend to those hurt. It is important that you not move anyone that has been seriously injured unless they are in immediate danger. Further injury can occur from movement. It is always a good idea to let the emergency response teams attend to and moved the injured whenever possible to help prevent this.

Three, exchange all of the important information with the parties involved. You’ll need to obtain the other driver’s name, addresses, phone numbers (home and work), insurance company, car insurance policy number, driver’s license number, license’s plate number, and make sure to write down a description of each car, the year, make, model, color and any apparent damage. Also, write down what occurred during the accident as soon as possible. Pay special attention to the position of the vehicles, sequence of events and the cause of the damage.

I recommend that you write down all information readily available to you without the cooperation of the other driver such as the license plate number, make, model and color of the car, driver description and brief description of other occupants. Also, obtain any witness information at this time. As long as no one is hurt, most witnesses will soon depart the accident scene, and you want to make sure that you have their information. After obtaining this info, then approach the driver about their information like driver’s license number, insurance information and contact information. This makes sure that the other driver cannot bolt from the scene while you are distracted without obtaining information and it lets them know that you are all business.

Four, take photos of the accident scene and the cars involved. Use your disposable camera or cell phone to document the damage to all the vehicles and the scene of the accident. If there are important points to demonstrate such as long skid marks, hidden entrance/exit, etc. make sure to document these as well. Make sure that the vehicle photos illustrate the total context of the accident so that they will back up your claims. If there are witnesses, make sure to ask them for their name and phone number, and ask if they’ll help you in case of problems with the other driver disputing what actually happened.

Five, file an accident report as soon as possible and obtain a copy of it as soon as it is made available. In some areas law enforcement officials do not respond to traffic accidents unless injuries are present. You should always call the police and request that an officer come to the scene to right up the police report. They will obtain the information from the other drive, if they are uncooperative with sharing the information with you, and they will write down their observations of the scene of the accident, which will further support your claims. If you cannot get a policeman to the scene where your accident occurs, find out how you go about filing an accident report and do so right away. You may have to go to the local police station or you may be able to download accident report forms on-line depending on your locale. A police report usually helps speed up the claims process.

Six, understand your insurance coverage before an accident. The more you know about your insurance coverage the easier the claims process and procedure will go. Does your policy cover towing or a replacement rental car fee? If yours does not and the accident was the other driver’s fault immediately make a claim for this with their insurance company.

The question everyone is typically concerned with is “Who is going to pay for this?” If it is the other driver’s fault you should insist that they pay for the damage. If they agree, get them to acknowledge this in writing if possible. The other drive may be agreeable to pay for the damage now, but after a little time goes by and they are not in your immediate presence they may have a change of heart and decide to try and stiff you (this is why you need witnesses, documentation, etc.).

I recommend calling someone if available to assist you in the accident management process. They will be much calmer and more objective in seeing that everything is carried out. I arrived prior to the police at my wife’s previously mentioned accident when our van was rear-ended. I checked and made sure that everyone was okay. Then I made sure that the vehicles were a safe distance from the road. Next, I obtained all of the vehicle information (make, model, color, license plate number), photographed the vehicles and the accident scene. I then obtained the driver information from the other two drivers involved. After I obtained the car insurance information, I immediately contacted the other driver’s car insurance company and had them open a claim for the damage that had been done to our van. I did all of this before the policeman completed writing his report. I then talked to the police officer and obtained his name and learned the content of his report. When I determined that I was satisfied the content accurately portrayed what my wife indicated had happened, I asked him for the report number so I could obtain a copy as soon as possible. My doing this streamlined the whole process for our claim and it moved through like clockwork.

If you drive a Jeep and you need some replacement parts, you can get them for low prices at Xtreme Terrain Concepts, which specializes in Jeep items. They can be found at www.xtremeterrain.com

Before you rent a car for the first time, try to make an accurate assessment of what your needs are. Consider whether you’re traveling alone or with other passengers. Decide how much storage space your going to need. Do you need a compact car, a luxury vehicle, an SUV or truck? Take into account where you will be traveling and your budget for travel expenses.

After you’ve got a short list of your car rental needs, start shopping the different rental companies in your area (or the area you’ll be traveling in). It’s very simple these days to look up these companies on the Internet. All of them have websites, and most even do locally based advertising via Google Adwords.

Pick the company that seems to have the best combination of price, terms and service. Remember the old adage, “you get what you pay for” holds true in this industry as well as any other. If one company is considerably cheaper than the others, they’re probably going to have problems in other areas. It’s hard to go wrong, however picking one of the large well-known chains. If the businesses in your area aren’t any of the well known national firms, a quick call to the Better Business Bureau wouldn’t hurt.

If budget is your primary concern, look for a corporation like Rent a Wreck. They’ve been around a long time and provide very good rates on used cars.

When you make your rental reservations, you will need to have a valid, unrestricted license. You’ll also need insurance, either your own or you may buy a policy issued at the car rental establishment. Be sure to check with your insurance company to see if your insurance covers a rental. If it does, don’t buy it through the rental agency. There’s no need to pay for it twice. You will also be required to have a credit card for a deposit.

In some countries, you may need an international driver’s license.

Once you have determined what you need in the way of transportation, chosen a prospective car rental company, and gathered the information and documents you need, you are ready to book your car.

You can walk in most car rental companies and rent one on the spot, but there are advantages to booking the vehicle in advance. Making advance reservations can save you time, money and lots of headaches. Often, there are packages and special offers that will save you a bundle by planning ahead. Ultimately, you save time and reduce anxiety because you know you have it all arranged and are confident that the car rental you want is available, reserved for you. Nothing is worse than scrambling at the last minute trying to get transportation when none is available.

You can make reservations by visiting the rental location in person, by phone or online. Many people, including this author, prefer to shop online to be able to look over prices and specials at leisure. Many reduced rates are only available through an online reservation.

Arrange to arrive to pick up your rental car with time to spare. There are often unexpected delays that could cause you to miss a flight, appointment or cause undue aggravation. Avoiding these with a little planning will make a trip flow much more smoothly.

Before driving away, thoroughly check the contract, review the charges, and inspect the vehicle. If there is any damage inside or out on the rental car, make sure that the employee duly notes it on the contract and signs off on them. If anything is missed at this stage, you’ll be charged for it when you return the car.

Make sure you have the appropriate contact numbers in case of emergency or other concerns with your rental car. You never know when a breakdown might occur. If you’re in a strange town this can turn into a minor disaster without knowing whom to call.

Finally, be sure you are comfortable with the rental terms, deadlines and restrictions before you head off to your destination.

When seeing advertisements involving cars for sale by the owner, you don’t have to automatically suspect. If you’re a smart customer, you’ll read the whole advertisement and decide for yourself whether or not the owner is a legitimate seller selling a viable vehicle. Some advertisements will reveal themselves as just nonsense; others will involve the sale of used automobiles by dealers. Still others will be legitimate advertisements for cars offered by owners who are giving you a great deal for their used vehicle. Again, reading carefully makes all the difference.

For example, I recently was in the market for a used automobile and decided to go for one that was for sale by an owner, feeling this to be the most effective way to get a used car at a reasonable price. I found a selection of advertisements on “Craig’s List”, an online community bulletin board. Amazingly, there were many choices for me, some of which looked great but weren’t in my budget, some of which were very affordable but lacked all the necessary parts (like the engine) and some that looked great enough to actually contact the owners and test drive the vehicles. Unfortunately, I was unable to get any response back from the owners, even after I called back and left an offer.

Unfortunately, I found ads on that site that really weren’t those for cars selling by owner but were ads that clearly came from dealers. Even the dealer’s information was listed in the ad. I didn’t think this would be a problem, however, the information listed four contact numbers, misspelled information and the same information showed up in ads for more than one vehicle. I was looking for a 1970’s Chevy truck and, in a search of over 1000 vehicles, it became obvious that the same dealer was selling many more than just one car. The same contact phone numbers and misspelled words were in each and every ad.

Personally, I think that dealer was a fraud. While the vehicles probably really existed – the photos and information were in the ad – but I could tell from the background in the photos in which the cars were shown were taken in the same place and that, unless this was a guy with a lot of vehicles, I was looking at a dealer and not just an owner trying to sell a car. This was more likely a person trying to avoid paying dealer’s taxes by passing himself off as an owner. The guy wasn’t going about it in a terribly sneaky way – using the same contact information and putting all the vehicles in the same category where they would likely get picked up by skilled and attentive buyers. As one of those buyers, I felt like he was wasting not only my time, but the time of serious buyers out there, trying to get a good deal on a car. Such behavior only serves to make the whole “used car” business look bad and it’s not good for those legitimate sellers out there just trying to sell a decent car.

How much insurance does one need? You have the big four: home, health, life, and car insurance. Then there’s a second category, which starts getting a little hazy with credit card insurance, purchase protection plans, fraud insurance and more. Extended warranties, also called extended service contracts, or extended service policies fall into the mist of this second category.

Extended warranties are supposed to pay (in full or in part) for specified repairs for a specific period of time after the expiration of the factory warranty. They can be a great value. They can also be a significant waste of money. It gets quite foggy in the details. What exactly is covered? How long? How much? Are there hidden charges?

There are numerous extended warranty companies and an even wider variety of warranty packages available: silver, gold, platinum, platinum-plus, and a host of other confidence-building words. What’s the best plan, and are extended service contracts worth the money? Extended warranties, like life insurance policies, are a numbers game. They’re a gamble. You pay $2500-$4500 for a 2 year, 100,000-mile protection plan and hope that you get at least that back in warranty repairs. The provider on the other hand, hopes to pay out less than it insured.

There are three major types of plan providers: The manufacturer, the dealership/third party, and third party providers. Each one has its assets and liabilities (discussed ahead).

What exactly is covered in an extended service plan? As mentioned above, what’s covered depends on the package purchased. Some plans only cover the power train: the mechanical components of the engine, transmission, and rear-end. Others cover the power train plus some electrical components. Still others cover electrical, advanced electrical, and computer components. Some only cover what’s listed in the contract. This is called a “Stated” or “Named” contract. This means that if it’s not stated, it’s not covered. Some cover bumper-to-bumper, similar to a manufacturer warranty, except trim pieces, upholstery, exterior components, cosmetic items, and a number of other exclusions.

Never before has the adage, “The devil’s in the details,” been so applicable.

Manufacturer Extended Plans: Extended service plans from the manufacturer are the best in terms of coverage, convenience, and quality. Coverage is similar to the warranty while the vehicle was under its original factory warranty—with similar exclusions stated above. The billing is direct, meaning you don’t have to pay out-of-pocket, except for a deductible, if applicable. Quality is great too, as an extended warranty from the manufacturer will only use factory parts. They also have money, so there’s less risk of bankruptcy.

The down side of manufacturer extended service plans is that they are not cheap. These plans are generally the most expensive, require low mileage standards, and necessitate servicing your vehicle at a dealer for coverage.

Dealership/Third Party Plans: Extended warranties from a dealership are actually from a third party insurer. These providers are “generally” reputable, but not always. However, if there is an issue (such as the warranty provider filing chapter 11, which is quite frequent in the extended service contract business), the dealer “may” step in to cover any repairs that would have been covered under the defunct plan. Also, claims are easier: billing is direct because the dealership has a working relationship with the provider, and there is usually agreement on price.

Some dealers set up their own “internal extended warranty,” which is honored by the selling dealer. This is rare, and should not be confused with a manufacturer warranty. Important: extended warranties are often passed off as “manufacturer” warranties. They’re not. This is a sales trick. Also be aware that there is a significant mark up, as the dealership is merely acting as the middle man. Lastly, extended warranty companies often go bankrupt without warning.

Third Party Plans: These plans are called third party plans because they are outside the responsibility of the manufacturer and the service center performing the repairs (unless there’s a working relationship with a repair shop as stated above).

There are hundreds of extended service contract companies. Some have good reputations, some don’t. Third party plans are frequently sold by used car dealers. You may also receive an official looking notification in the mail stating that your warranty is expiring, and directing you to call an 800 number ASAP. This is a marketing tactic by an independent warranty provider. Despite the “official” appearance of the postcard or envelope, it’s not from the manufacturer. Manufacturers do not send out reminders about warranty expirations.

Given the wide-variety of third party plans there are numerous red flags.

1) Claims: Extended warranty companies will be quick to tell you that filing claims is easy, and that the service center gets paid immediately via a credit card. Thus, there’s no out-of-pocket expense for you. However, the warranty company can’t dictate a service center’s policies. Some service centers will only accept payment from the repair customer. Thus the burden is on the repair customer to fill out the forms, contact their warranty company, and await reimbursement via check, which can take 2-8 weeks.

It is the service center’s responsibility to contact the extended warranty company to let them know what’s wrong with the vehicle and to check coverage. This process can take anywhere from 20 minutes to 20 days, sometimes more, depending on the degree of repairs and especially the amount. (See $1000 and Adjusters ahead)

Service centers and extended warranty companies frequently battle over the “fair” price of repairs. Many repair shops no longer negotiate, and just state the price, leaving the contract holder (i.e., the service customer) responsible for the difference.

2) Rentals: Rental coverage is a great benefit. However, there are fixed rates and time limits. In other words, the warranty company is not going to pay to have you drive a Mercedes-Benz, even if you drive a Benz. Rental allowances range from $25 to $35 per day. Also, rental coverage is based on the number of hours it takes to repair the vehicle, NOT how long your car has been at the shop.

3) $1000 and Adjusters: Repairs that approach $1000, or that require a significant amount of work, will be cause for the warranty company to call in an adjuster to confirm the diagnosis. This will delay the repairs by a minimum of 24-48 hours. It may cost you additional money when an adjuster is involved. You may be charged to have your vehicle pulled back into the shop for inspection, as well as for the time spent with the adjuster.

4) Tear-down Charges: In many cases, an extended warranty company will require that a particular component be taken apart for inspection to determine if the repair is indeed needed and covered. This puts the service customer in a very awkward position. The customer will have to authorize potentially hundreds of dollars of tear-down expense in the hopes that the repair is covered. If it’s not, the customer is out the hundreds in tear-down PLUS the actual repair. This does happen!

Common Myths:

1) “Extended warranties cover maintenance services and brake work.”

No. Extended warranty plans do not cover maintenance or wearable items. Brake pads and rotors are wearable parts. Maintenance such as coolant, brake and transmission flushes, tune-ups, services, oil changes, bulbs, wipers, and more are not covered.

2) “They told me it’s bumper-to-bumper, so it covers everything right?”

Wrong. Not even a factory warranty covers everything. When pitching the sale for the extended warranty, one is very often lead to believe that he or she will have nothing to worry about. This is just not true on so many levels. For example, if your bumper falls off it’s not covered.

3) “I don’t have to pay anything, right?”

Wrong. Despite the claims of 100% coverage, there are many factors involved. The labor rates, labor hours, diagnostic times, parts prices, and machine work are just a few items that often conflict with a service center’s policies. Some extended contracts only pay a maximum of $55 per hour, and only allow one half hour for diagnostic time. This is generally unacceptable to the service center, as labor rates have skyrocketed to over $100 per hour at many dealerships, and average $75 at local shops. Moreover, with the complexity of today’s vehicles, diagnostic time is at a premium. The customer pays the difference.

4) “If I have an expensive problem, I can just purchase an extended service contract.”

It’s unethical, but it’s an option many attempt. However, most service contracts have a minimum time requirement before the first claim can be filed: usually three months. Also, many contracts require that your vehicle be inspected by a service center to check for pre-existing conditions—just like life insurance.

5) “My contract lasts up to 100,000 miles.”

Only if the time limit doesn’t run out first. All extended warranty plans have a time limit. For example, a typical contract will state that the vehicle is covered for two years or 100,000 miles, which ever comes first. During the sales pitch, however, the emphasis will be on the 100,000 miles, not the time.

6) “If my car breaks, it gets fixed like new.” Actually, depending on the contract, an extended warranty company can insist on installing remanufactured or even used parts.

Items commonly not covered by extended warranties: • Any component with a pre-existing condition • Any component related to a Technical Service Bulletin (TSB) • Many components that has been updated by the manufacturer • Extra components necessary “due to manufacturer updates” to complete the repair • Trim pieces: molding, cup holders, dashboard, console, body parts, glass • Many accessories: radios, DVD players, TVs • Many expensive electronics: climate control units, navigation assemblies

Service contract positives: Some service contracts are transferable, and may thus increase the resale value of a vehicle. Many come with trip interruption reimbursement, towing and 24-hour road side. Some plans can also be financed, or have E-Z Pay Plans. Others offer a money-back guarantee.

What should you do? You’ll get lots of advice about doing the research, comparing plans, and reading the fine print. This is all sound advice. But what about doing the math?

Let’s say a plan costs $2500 for 2 years or 100,000 miles, whichever comes first. To break even you’ll need a minimum of $1250 per year in covered repairs, excluding regular maintenance. Remember covered is the vital word here.

Another way to break it down is to anticipate having to pay $104.17 per month over the next two years in “covered” repairs. Do you want to take that bet?

What could happen? You could double your money or more in repair work. You could conceivably get a new engine and transmission (or used ones anyway). You could also easily spend $2500 for a service contract, and still have to pay another $2500 for repairs, which for a variety of reasons, were not covered under your plan. Now you’re out $5000.

Alternatively, you could keep the initial $2500. In many ways all an extended warranty does is prepay for repairs. You could stick the money in the bank and collect interest. Then you could withdraw the money for repairs as needed.

Another consideration that’s rarely discussed is the cause of the problems. Many car repairs problems are the result of wear and tear, neglected maintenance, physical damage, or acts of God—such as flood damage. None of this is covered. The gamble only covers failed components.

If the vehicle you’re driving does cost $2500 to $4500 in repairs due to outright failed components, is it a vehicle you even want to consider keeping? A vehicle that needs this kind of repair work due to mechanical, electrical, or computer failures may not be worth it. The $2500-$4500 would be better spent on an upgrade to a quality vehicle rather than insuring a lemon.

There’s no question that auto repair is expensive, and even quality cars break from time to time. But do they breakdown to the tune of $2500-$4500? That’s a hefty bet on a “possibility.”

Terence O’Hara from the Washington Post makes an excellent assessment about extended warranties in general. He writes:

…extended warranties play upon a basic human trait to avoid loss, even if it means sacrificing a possible future gain…the gain is all the other things of value that a consumer could buy with the money that was spent on a warranty

What’s the best plan? Money in your bank account!

When you get car insurance quote online from an insurance company, always keep in mind to compare it with quotes issued by other companies with the same car insurance policy features. However, since this is a challenging task, with results often being prone to mistakes and miscalculations, here are some tips that can help you simplify the process.

The first thing you need to do when you get car insurance quote online is to assess your current auto insurance policy, and consider every feature it incorporates, such as limits for property, bodily injury, uninsured motorist and underinsured motorist; what the deductibles are; if you’re willing to pay for towing and rental care reimbursement; and if you have comprehensive coverage or just collision.

Determine if you are still going to need those features in your car insurance, and make note of any changes. For example, there’s no point opting for comprehensive coverage on an old car that has severely decreased in value. Therefore, getting only collision coverage might be able to save you a few hundred dollars on your car insurance premium.

Your second, particularly important step when you get car insurance quote online is to gather specific information about your cars, and the people who drive them. Be prepared to list down information regarding:

1. Drivers license and Social Security Numbers for each driver 2. Year, make and model of each vehicle to be insured 3. Average mileage for each day, and whether it’s used for business or pleasure 4. Safety features such as Anti-lock Brakes (ABS), alarms, air bags etc for each vehicle

Always make an effort to get at least three or more car insurance online quotes for your auto insurance from various sources, because rates are liable to differ between car insurance companies. Put down each online quote on the same sheet of paper, along with comments for each company you’ve listed.

When looking for a cheap car insurance quote online, you must also bear in mind the importance of good value, such as financial stability, fast claims service and good customer service. When you’ve tracked down the car insurance quote online that meet your requirements, keep it under scrutiny for a couple of days in order to be certain that you’ve got the right insurance coverage for your car.

Don’t hesitate to ask a lot of questions if you’re doing business with an agent or representative, who could probably be able to help you save a decent amount on your insurance. It’s also always a good idea to check if there’s a customer service contact on the insurer’s website when you get car insurance quote online.