Life insurance and your car

Reducing risk of car accident

Want some free life insurance? This is not the kind that pays you money when you die. This is a way to help increase your life while you drive.

There is a statistically proven way to extend your life and reduce car accidents. I bet some of you have already guessed, "slow down"! If this was your first response then pat yourself on the back because you are right.

A study done by Sunnybrook Health Sciences Centre have determined that each hour spent driving in North America leads to about a 20 minute loss in life expectancy for the average driver because of the possibility of a fatal crash. The formula is that spending about 60 minutes in a car costs about 80 minutes in total for the average driver as time gone from that driver's life.

When a driver tries to speed to get to their destination faster, they actually lose more time. This id because the savings from faster travel are offset by the increased prospect of a crash. We've all seen "that guy" racing ahead of the pack. Often your first thought is, "how long before he crashes?".

When the results were reviewed it is suggested that drivers slow down slightly by about 3 km/h. This would work out to an average increase of about 3 minutes and day to make their usual trip but gain them three hours a year in annual survival.

What happens when you travel faster then the usual speed? The results show a 1 km/h increase in speed above average only nets a 26-second increase in total lost time. This is because the savings you gain from reduced travel time is more than offset by the increased risk of a car accident.

The benefit of a 3 km/h decrease in average driving speeds for North America yields about 11,000 fewer crashes each day. That saves about $10 million in property damages. It also conserved about 199 cumulative life years annually.

So if you want to live life to it's fullest you are best to slow down just a bit. That 3 minutes you are spending driving above nd beyond the usual can be used to listen to a favorite song or catch a weather report on the radio. Arrive home in a better frame of mind but most importantly, arrive home.

Is there a death benefit in car insurance?

Yes, there is for when a car crash ends up with fatality. The benefit is paid out according to your position in the household. The largest income earner will get the maximum payout with descending benefits for a spouse or for the death of a child. This is a part of the Accident Benefits or Section B coverage on an insurance policy. This benefit is intended to help with the funeral expenses. If there has been a death be sure to check with your insurance company adjuster. If you wish then your agent or broker may be able to help you with contacting the adjuster.

Be aware that this is a no-fault benefit paid whether you are in the wrong in the accident or if it was another person driving who caused the fatal injury. Lawsuits for the loss of life are above and beyond this coverage. A lawsuit would be addressed by the at-fault driver's liability section of his/her policy. If there was an award made above the limit that person carries then the driver becomes personally responsible for the difference.

What is car creditor insurance?

Car creditor insurance is when you have purchased insurance to pay out the balance owed on your vehicle that you have financed. The estate will now have a fully paid vehicle. For a young family with one income-earner this could be important coverage to purchase.

Creditor insurance can be purchased at the time of buying the vehicle from the dealership. It is usually less expensive if you check the rates with a life insurance broker. The dealership has you making payments on a loan that is going down every month with your car payment. The life insurance is a set amount and does not decrease as you progress.

Ask your agent or broker for further information about your specific policy.