Clark, Perdue, Arnold & Scott's Blog

"Know!" is a collaborative effort by the Drug-Free Action Alliance and The United Way of Central Ohio to conduct research and provide monthly information to parents and other caregivers on raising children to be substance-free. With more than 170 tips available on its website, http://www.helpthemknow.com/, Know! offers facts on a wide variety of substance abuse issues, such as summer smoking and the significance of 4/20 (a generic way of declaring that one likes marijuana). Know!'s goals are to make parents aware that their children are at risk; to bring home the message that parental actions make a difference; to promote and improve communication between parents and children concerning the use of alcohol, tobacco and other drugs; and to empower parents with strategies that have been proven to prevent substance abuse.

If the results of a recent survey conducted upon middle school children are a true indication of the severity of the problem, such preventative measures have become a necessity. The 2006 Primary Prevention Awareness, Attitude and Use Survey conducted by The Safe and Drug-Free Schools Consortium confirms that the youth of Ohio are being exposed to alcohol, tobacco and other drugs at an alarmingly young age. Its data shows that:

• Eleven is the average age for first using alcohol;
• 1% of sixth graders and 5% of seventh and eighth graders drink at least once per month;
• 2% report smoking tobacco at least once per month;
• 0.4% of sixth graders and 1% of seventh and eighth graders admit to smoking cigarettes daily;
• Twelve is the average age for marijuana first usage; and,
• 0.6% of sixth graders and 4% of seventh and eighth graders report smoking marijuana once a month or more.

The significance of these numbers is heightened by the findings of the National Clearinghouse for Alcohol and Drug Information regarding just how and why the use of these substances places children at a greater risk for problems later on down the road. That organization concluded that the younger a person starts to use these substances, the more likely the person will become addicted and develop problems associated with such use. In addition, young substance users are more prone to end up as victims or perpetrators of violence, to engage in unplanned and unprotected sex, to experience failure in school and to sustain serious injury from driving, or other risky behavior. Moreover, youngsters who use tobacco are more likely to drink heavily later on, or to use illegal drugs.

However, many parents and other caregivers apparently simply do not appreciate the magnitude of the problem. For instance, Know! reports that when polled, the number of parents who thought that their children had experimented with marijuana - about 20% - represented only half the actual number of teens who admitted to having tried it!

You can find further information on the recent PPAAUS survey at http://www.edcouncel.org/. To learn more about the harmful effects of alcohol, drug and tobacco usage by kids, visit http://www.theantidrug.com/ and www.nida.nih.gov/drugpages, the National Institute for Drug Abuse website.

Handling the claim for damage to your motor vehicle after a wreck is frequently the most frustrating part of being in an accident.

The law in Ohio is pretty clear in most respects, and it is largely a matter of common sense. When your vehicle has been damaged in an accident, you are entitled to have it repaired and restored to its pre-accident condition unless the cost of repairs is more that the market value of the vehicle. The market value is essentially what an ordinary consumer would have paid for your vehicle, in an arms length transaction, immediately before it was damaged. For vehicles less than 10 years old, market value can be calculated by reference to one of several written guides that are professionally prepared and updated, and available to anyone at bookstores and on the Internet.

If the cost of repairing your motor vehicle exceeds the pre-accident market value, then you are not entitled to have the vehicle repaired; rather, you are entitled only to be paid the fair market value of the vehicle.

The problem for consumers arises when repairs to a vehicle fail to restore it to its pre-accident market value. For example, if the frame has been bent, some argue, and many prospective buyers believe, the vehicle can never be returned completely to its pre-accident condition. Then, more generally, many people believe that any vehicle that has been seriously damaged in a high-impact collision can never be restored to its pre-accident market value. This is sometimes referred to as “post-repair depreciation” or “residual diminution in value.”

In a case that is very good for the general motoring public (people who own and drive motor vehicles), the Franklin County Court of Appeals recently held that “residual diminution in value” is a legally recognizable element of damages after a motor vehicle crash. The case is Rakich v. Anthem Blue Cross and Blue Shield, 2007 Ohio 3739; 2007 Ohio App. LEXIS 3405, decided July 24, 2007. The court held as follows:

“Under the general principle that an injured party shall have sufficient compensation for the injuries to make him whole, we find that, when a plaintiff proves that the value of his automobile after repair is less than the pre-injury value of the automobile, the plaintiff may recover the residual diminution in value in addition to the cost of repair, provided that the plaintiff may not recover damages in excess of the difference between the market value of the automobile immediately before and immediately after the injury.”

This is a good case for consumers in Ohio and eliminates a loophole in Ohio's law of property damage.

If you are thinking about financing most of the purchase price of your next car or motor vehicle, you should consider purchasing “gap” or “guaranteed asset protection” insurance. According to www.GapInsuranceQuoates.com, it is available in all states except CT, LA, NH, NM, NY, VA, VT and WA, often from the dealership.

Why invest in gap insurance? It is almost common knowledge that a new vehicle depreciates in value the moment it is driven off the dealer's lot-sometimes by as much as 20%. If you finance a car with less than 20% down and you are subsequently involved in an accident that totals it, or if it is stolen, you may find yourself owing your lender more than the car is worth. This is called being “upside down on a loan” - an insurance company pays you X dollars for your car, but you owe the bank X dollars plus several hundred or even several thousand dollars!

In the past, loans were usually made for a 24 or 36-month period. Because the price of cars has risen greatly since the early 1980's, 60 and even 72-month loans are now common. However, the longer the loan, the longer it takes to reach a positive equity position in a car, where the borrower owes less than the car is worth. In fact, a borrower may well remain “upside down on a loan” for as long as two to four years, depending upon its length and the amount that was paid down. If your car happens to be totaled or stolen at such a time, your insurance company will not be obligated to pay you what you owe on the car, but only its actual market value-what it could have been sold for at the time of the wreck or theft. Your lender, however, will expect to be paid the difference.

That is where gap insurance comes into play. It covers the “gap” or difference between the vehicle's actual worth and what you still owe on the loan. www.Auto-Insurance-Options.us reports that aside from collision and comprehensive coverage, some leasing companies and lenders now require you to purchase gap insurance. Leasing companies typically include the cost of the insurance in the price of the lease agreement. And, while gap insurance is most often only available through a dealership at the time of purchase, some companies now offer the coverage in less than conventional situations, such as for used and refinanced vehicles. Further information on gap insurance is available at these, as well as other numerous websites: www.intellichoice.com, www.cars-insured.net, and www.bmv.ohio.gov/bmv.asp,