Top Driving Faux-Pas in Alaska

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We wanted to know what some of your biggest gripes about those other drivers you share the road with. After tallying our unofficial poll results, we compiled a list of bad habits behind the wheel.

  • Blinkers: Not using a blinker topped the list of annoyances on the road. Using a blinker allows other motorists to know where you intended to merge, turn or otherwise move. It gives your fellow commuters a chance to slow down to let you in/turn, etc. Not using a blinker and then moving your vehicle could cause those around you to slam on their brakes potentially causing an auto accident. We all forget every now and again, but make sure to use that blinker.
  • Merging: There were several gripes surrounding merging. Most agreed that not allowing other cars to merge into traffic was not very nice and also hazardous. Allowing traffic to flow onto the freeway may prevent an auto accident. Also on the merging gripe list is merging at a speed too slow or too fast could cause other drivers to react which could lead to an auto accident.
  • Aggressive drivers: In many states, driving aggressively can lead to a hefty ticket. Drivers who tailgate, weave in and out of traffic and speed excessively put not only themselves at risk, but other drivers, etc., around them as well.
  • Distracted drivers: These days there are many things that can distract you while driving a vehicle. Shushing kids, minding pets, texting or talking on cell phones, self-grooming, eating, drinking coffee and playing with the radio are all things that can distract you from your number one task – keeping your eyes on the road. Whether you are on a major interstate or a country road, it only takes a moment for a vehicle, animal, child or debris to get right into your path. If you are not paying attention to the road, your reaction time could be minimized and it could lead to an auto accident.
  • Share the road: Not only do we share the road with other drivers, we share the road with cyclists and pedestrians. In some areas cyclists have dedicated lanes, but they are afforded the same “right-of-way” privileges as pedestrians. When driving in an area frequented by cyclists and pedestrians, you need to be hyper-aware of your surroundings as they can seemingly pop out of “nowhere.” While the burden of an auto accident may fall to the vehicle, all parties have a duty and responsibility to look out for themselves and each other. Cyclists and pedestrians should make the direction they are heading clear, and cyclists should use the proper directional hand signals.

Driving is a privilege and requires the utmost responsibility when behind the wheel. We all have bad days when we are rushing to get to our destinations, mad at the driver in front of us or just in a daze. Snapping yourself out of those moods may help prevent an auto accident or injury. If an accident does occur, make sure to get the appropriate information from all parties involved and report the claim to your insurance carrier. If you have any questions about your auto insurance coverage, don’t hesitate to ask the experts at Integra Insurance in Wasilla, AK. Your local, independent insurance agents can walk you through what may or may not be covered by your current auto insurance policy and help you decide if additional coverage is right for your situation. They can also assist you with a personal umbrella policy. You can visit their insurance website 24/7 for more details.

Replacement cost vs. Actual cash value: What does that mean?

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An insurance policy usefulness is determined by the policy language used. Specific policy language determines what is covered, what is excluded and the amounts covered under the policy. Reviewing your insurance policy language every now and again may be helpful in the event of a claim, as you would have a better understanding of what may be covered.

Insurance policies are full of language and terms that may not be clear right off the bat. Many terms are specific to the industry and to the specific type of insurance that is being purchased. Two such terms are Replacement Cost and Actual Cash Value. These terms can be a bit confusing to decipher between.

Replacement cost vs. Actual cash value in Alaska:

  • Replacement cost is very simple: It is literally the cost to replace your item with an item of similar quality. Replacement cost policies tend to be a bit more expensive since you are essential getting a brand new item for one that may have otherwise depreciated. Replacement costs are agreed upon by all parties before the insurance policy is finalized. If you have high-ticket items (jewelry, art, RV, boat, luxury vehicle or classic car) this may be the best type of coverage if you can afford it.
  • Actual cash value is the cost to replace the item minus any depreciation. For example, if you were in an auto accident and you had an actual cash value policy, your insurance would pay out the cost of the vehicle minus any depreciation, so if your vehicle is worth less than what you owe you would be responsible for paying that difference out of pocket, unless you had gap insurance. An actual cash value policy can put you in a tight spot if your items cost more to replace or repair than your policy pays out. Depreciation values for big ticket items like RVs or luxury cars can be quite large, so make sure that you have a nest egg and be prepared to pay some out-of-pocket for a loss if you have an actual cash value insurance policy.

No matter which policy type you choose, the local experts at Integra Insurance Services can answer any questions and walk you through the different types of scenarios to see which policy type is right for your situation. Integra Insurance Services in Wasilla, Alaska can guide you through your homeowner’s insurance policy and more, like auto insurance. Their years of insurance experience can save you a bundle, and they live right in your area, so know firsthand what your insurance needs might be. You can also visit their insurance website 24/7 to learn more about the insurance products they offer.

Closing the Gap: Do I need gap insurance?

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Congratulations, you just bought a new (or new to you) car! You were able to afford a down payment and now you are the proud owner of a new car and a monthly car payment. But, what happens if your car becomes involved in an accident and you owe more than your car is worth?

Imagine this scenario: While out enjoying your new car, you hydroplane and hit a guardrail damaging your new vehicle beyond repair. The insurance company is telling you that your new car is a total loss. While you may not be able to drive the vehicle, you are still responsible for the loan associated with vehicle. If you have gap insurance in Wasilla or Palmer, Alaska, you may be only responsible for your deductible.

How gap insurance in Alaska works:

What is depreciation:  Vehicles, especially new vehicles, begin to depreciate as soon as you drive them off the dealer lot. Depreciation can be quite surprising and is not necessarily tied to the base cost of the vehicle. Due to wear-and-tear, fluctuating market conditions and a number of other factors, depreciation in the first year is the steepest. Even with proper care and maintenance and no accidents, a vehicle will continue to depreciate. Even though the value of the vehicle will go down each year, the amount you owe on the vehicle will not. Depreciation will vary between make and model but here is a baseline comparison:

Year Vehicle Style Base price Depreciation year one
2013 Subaru Legacy 2.5i sedan $21,295 $3,069
2013 Honda Civic Base sedan $22,715 $4,406
2013 BMW 328i sedan $34,900 $5,198
2013 Ford F-150 $28,595 $5,915
2013 Toyota 4Runner $37,155 $6,380

 *Figures courtesy of automobilemag.com

Why gap insurance: In the unfortunate event that your vehicle is totaled, and it is an event covered under your current auto insurance policy, your insurer may pay the actual cash value of the vehicle, which may be significantly less than the outstanding vehicle loan. In that case, you would still be responsible for the remaining balance between the loan and the insurance payout, which could be thousands of dollars. If you choose to purchase gap insurance in Alaska, your insurance company would cover the remaining balance between the actual cash value of the vehicle and the remaining loan balance, typically up to 25 percent, potentially saving you thousands of dollars.

Options for gap insurance: There are two options for purchasing gap insurance in Alaska. It can be purchased from the dealership or through an insurance agent. If you choose to purchase gap insurance through the dealership you purchase your vehicle from, the gap insurance will be built into your loan. The average price for gap insurance from a dealership is around $1,000, but add interest and taxes and it can add up to much more. If you choose to purchase gap insurance from an insurance agent, on average it would add less than $10 per month to a policy! There may be certain stipulations associated with a gap insurance policy:

  • The loan may need to be through a financial institution rather than an individual
  • Your current auto insurance policy may need to include Collision and Comprehensive coverage
  • Your claim may need to be a covered Collision and Comprehensive coverage event
  • Your vehicle may need to be determined as a total loss

Before you purchase a new vehicle, make sure to check with your licensed insurance agent in Wasilla, Alaska to see how you can add gap insurance to your new vehicle policy. The local, independent agents at Integra Insurance Services can assist you with adding or amending an existing policy or setting you up with a new policy. Their years of insurance experience can save you a bundle. You can also visit their insurance website 24/7 to learn more about auto insurance or the other insurance products they offer like classic car or home insurance.