Questions to Ask Before Passing a Car Down to Your Child

 

Questions to Ask Before Passing a Car Down to Your Child

Your teenager just got his or her driver’s license and is begging you for a car. You’ve been thinking about buying a new one anyway, so you decide to give him your current ride. After all, an older vehicle should cost him less to insure as well as repair if he gets in an accident. Problem solved, right? Not so fast.

While hand-me-down cars can be money-savers, they also have potential drawbacks. One study conducted by the Insurance Institute for Highway Safety found that 48 percent of drivers between the ages of 15 and 17 who died in crashes from 2008 to 2012 were in cars that were at least 11 years old. Before you gift an older car to your child, ask the following questions.

  1. How safe is it?

Older cars may lack the safety features available on new models. While front-collision air bags have been required on all cars produced since 1998, electronic stability control didn’t become standard until 2012. Side-curtain air bags—which can be lifesavers in rollover crashes—are fairly rare even in cars purchased this decade.

Review the owner’s manual to determine the car’s safety features. You may want to check out crash-test ratings as well. You can find many on the Insurance Institute of Highway Safety website.

  1. Has your teen driven it?

While the aforementioned study found that 29 percent of the fatally-injured teenagers had been driving a small car—and 35 percent operating mid-size vehicles—bigger isn’t necessarily better. In fact, handing down a car that your teen has already been driving regularly is a more important consideration than size.

For example, if your daughter is used to driving a small car and you give her your large SUV because you think it will be safer on icy roads, you could actually be setting her up for an accident due to the difference in blind spots and turning ratios. On the other hand, a teen who learned to drive in a large car may not be able to do so as safely in a compact vehicle.

  1. Is it in good mechanical condition?

If you’ve been diligent about maintenance, you’re probably confident in your car’s condition. However, it makes sense to have a mechanic look it over before you hand it down to your child. A review of the vehicle’s systems will cost you, but that’s a small price to pay for the peace of mind you can have knowing your teen won’t be stranded due to engine trouble.

  1. Will it really be affordable to insure?

Teenagers pay some of the highest insurance premiums due to their minimal driving experience. Certain cars—such as those that are more valuable or are expensive to repair—will bump the price of their auto insurance up even more. Ask your insurance agent for a quote on the hand-me-down make and model.

Is your teen about to become a licensed driver? Contact us today to discuss adding him or her to your insurance policy or to explore other car insurance options.

Dispose of Documents to Prevent Identity Theft

identity theft

Identity theft is increasing dramatically in the U.S. today. According to the Federal Trade Commission (FTC), consumers reported more than 490,000 incidents in 2015, a startling 47 percent increase over the prior year’s number of reported identity theft crimes. While identity theft can happen to anyone, certain activities—such as posting personal information on the Internet or losing your wallet—can increase your risks. Improper disposal of paper documents can also be an issue. Consider these tips on what you need to shred and what you can safely recycle before your next desk or filing cabinet purge.

  • Shred anything containing your social security number. This is the holy grail of personal information in the eyes of would-be identity thieves. If they get their hands on it, they can open credit cards and fake checking accounts in your name. Your social security number may be included on employer paperwork, medical bills, health insurance cards and statements, credit card, banking and loan statements and more.
  • Shred your bank and mortgage statements. Paper statements sent for checking, savings, personal lines of credit, your mortgage and other loans will include your account information and—in many cases—your social security number. Experts advise saving these for three to seven years for tax purposes, but after that time has elapsed you should shred and recycle them. For maximum protection, shred everything you receive from your bank before putting it in the recycling bin—even if it’s just a policy change document or new product advertisement.
  • Shred your bills. From gas and electricity to water and trash collection, utility and service bills often contain sensitive information and may even include your social security number. Once you’ve reviewed the accuracy of the charges, shred and recycle them.
  • Shred anything with your signature. Did you have to sign the receipt at the drycleaner in order to pick up your order? Did you write an old-fashioned paper letter and then decide not to send it? A good rule of thumb is to shred anything that has your signature on it before putting it in recycling.
  • Recycle standard receipts. Receipts that don’t include your signature can be tossed in the recycling bin without shredding. This is true even if they contain the last four digits of your credit card number. However, receipts from ATMs for deposits and withdrawals should be retained for two years—according to experts. You can then recycle them.
  • Recycle junk mail, catalogs and magazines. Coupon books, sale’s flyers, catalogs and other junk mail can be recycled without shredding. The only information they contain is your address. The same goes for magazines after you’ve read them.

Keep in mind, cross-cut or diamond-cut shredders are better than those that simply turn documents into long strips of paper that are easy for identity thieves to reassemble. If you don’t want to invest in your own equipment, check your local government website for a shredding program or secure document recycling event. Some banks also hold periodic community shredding events.