Automotive Information

Many factors affect your car insurance premium like:

• Your Driving Habits
• Your Driving History: number of violations and accidents
• Your average yearly mileage
• Your number of claims filed
• Your neighborhood
• Your Credit Score

Insurance companies rate the risk of all of these factors and follow trends to set your premiums. A recent trend in the automotive industry is the introduction of green car or hybrids. Several types of automobiles are labeled green or hybrids. There are two types of combination hybrids series and parallel. The combination hybrid uses both a battery driven electric motor and a gas engine. The electric motor allows for a smaller, lighter more fuel efficient gas engine. In a parallel hybrid the electric and combustion motors both the transmission together. In a series hybrid, the combustion engine is only used to recharge the batteries, and the electric motor does all the work of driving the transmission. There are PEV’s (plug in electrical vehicles like the Nissan leaf) that use battery as the only power source; not to mention automobiles developed around natural gas as the fuel source are available on the market.

Most green cars on the road today are combination hybrids (gas and battery). They average between 45 and 55 mpg. With today’s volatile fuel prices that can add up to considerable savings at the pump, and the most popular models have good safety ratings. So does going green save you on car insurance? The answer is yes and no.

Many of the green cars are higher end, and higher price tag automobiles. The higher the initial cost of the car, the more expensive your car insurance. Don’t lose heart if you want to go green to save the environment, or just to save money at the pump. Most automobile manufacturers are rolling more moderately priced green machines off the assembly line. While the sticker price is still a bit higher than their non-green models, the range of models is opening up. There are green versions now offered in most price ranges. You can now buy a mid priced 4 door sedan version that is not only limited to the luxury line. If you want to go green the mid to compact size models will save you on car insurance and at the pump.

Everyone knows the potential advantages of renting a vehicle. You get the freedom of the road and, in those parts of the world where the public transport system is not so hot, it’s the only way to get where you want to go in a timely fashion. Yet we all have friends with horror stories about the poor service they received when collecting and returning their vehicles. Allowing for cultural differences and language problems, the first and best step to getting the best service is to write to the renter explaining your needs. Sadly, mental telepathy is still very limited and, unless you tell people what you need, they can only guess. When they guess wrong, you get upset and that’s where the problems grow bigger. So a simple list of your needs – trying not to make them sound like a list of demands – will smooth the way. If you arrive and find things still not ready, show the email. This usually produces apologies and more urgent attention to those needs.

Let’s start by thinking about your choice of vehicle. If you have children or a lot of stuff to carry around, remember some countries prefer smaller cars. Telling the renter what size of vehicle you need is essential. Put the other way round, if you want to make the biggest savings, you’re going to want the smallest, most fuel-efficient vehicle on the lot. Now come to the driving itself. In the US, we’re used to automatic transmissions. In other countries, stick shift is the norm. If you can’t drive a stick shift or you’re worried about a stick shift using the “wrong” hand (yes, some of these pesky foreigners drive on the other side of the road), tell the renter you want an automatic transmission. Now start thinking about all that stuff. How big is it? For example, if you’re off to a ski resort, do you want a rack on the roof to carry your skis and poles? Is one of your children young enough to need a special seat? Better still, if you don’t know exactly where you’re going, do you want a GPS system?

Now think about where you’re proposing to drive. This is not something that needs to be cared in stone, but if you think you may go into different countries, remember to ensure you are carrying all the equipment required under local laws. For example, as of July 1, 2012, the French Government has decided you must carry a breathalyzer. If you fail to produce one when asked by the nice police officer with a gun strapped to his waist, there’s an instant fine. It’s about $15 a time and these police officers have radios so can ensure you get stopped every mile if you don’t smile when asked to pay up. So ask your friendly a car rental company to stock up your vehicle with all the mandatory equipment for the countries in which you propose to drive. Ask for a list and know exactly where it is.

For example, did you prepare your vehicle for facing bad weather conditions? After all, it’s predictable there will be snow and ice in winter. So did you fit new tires so you would have the maximum possible traction in slippery conditions? Or did you remember to put chains in the trunk so that, when the snow gets deeper, you can still drive reasonably safely? We all know the risk of sliding or skidding out of control. Why then do we fail to take action to protect ourselves and other road users? There are probably several reasons, not the least of which are that this means spending money on buying the chains, some think it inconvenient to fit them, and you cannot drive fast when you have them fitted. The fact local governments may require chains to be fitted as a condition to using the roads in some areas is not considered a reason for action (curiously, there are no chain laws in Florida and Missouri – strange oversight).

Then we come to all those routine maintenance tasks like adding antifreeze and retuning the engine so it’s more likely to start when the temperature drops. Did you fit new blades on the windshield to give you better visibility when there’s snow fall or a blizzard? And then we come to all the steps to protect you should your vehicle break down or be involved in an accident. Do you have an emergency bag packed with warm clothing and blankets should you need to keep warm while rescue comes? You did remember to charge your cell so you could call for help? If you are making a trip cross-country where signal strength may be low, did you tell people when you were expected so they could send out search and rescue teams?

All these things are basic common sense yet, when the first snows hit, we seem to have forgotten to prepare. If accidents are more likely because of this failure and it’s shown to be a regular failure, your car insurance rates will rise. If you have been making claims, the car insurance quotes coming in from other insurers will not be welcoming. No insurer wants to take on someone who fails to prepare in the face of obvious dangers. That’s why insurers in the states where the weather is worst offer discounts for drivers who go on defensive driving courses and learn how to drive more safely. Your choice!

So you’ve bought yourself a new car? Congratulations! That’s certainly a purchase that matters a lot to most car owners. Whether it’s your very first car or just another vehicle to add to your garage, buying a new car is always exciting. Each car certainly feels different on the road and you will always try to find the model that will make you feel comfortable both as a driver and as a passenger. But with a new car comes new responsibility, which always takes the form of insurance. And it’s this small bit of responsibility that can sometimes spoil all the fun about buying a new car since it can be really expensive. So let’s try to learn how to optimize insurance costs and not spoil the excitement of owning a new vehicle.

First of all it really matters how did you finance your purchase. The most common option in our country is using auto loans since you can always get good rates and buy a car that you otherwise would have to save a lot of money for. But there’s a downside to using auto loans from the insurance perspective since you will be obliged to purchase additional types of coverage with your policy in order to get the loan. Most lending companies require collision and comprehensive coverage to be purchased with the insurance policy and that can considerably increase auto insurance quotes for your car. So make sure to consider this effect when financing your car through a loan. If that’s the only option you have then try to avoid the most common mistakes people do when buying cars this way. First of all, don’t get the policy offer at the dealer’s office or by the lending company. They usually have exclusive contracts with specific companies and offer higher rates than you would get from a third party provider. You’re obliged to purchase additional coverage but they can’t make you buy it from a particular insurer. So when you get your loan take the time to get auto insurance quotes from as many companies as possible in order to get the most competitive offer possible. You will be surprised to see that you can actually find affordable policies even with collision and comprehensive coverage included. That’s the whole purpose of comparison shopping.

Now, if you’re financing your car out of own pocket there are two main options to consider. First, you can get the most stripped down policy carrying only third party liability that will automatically offer low auto insurance quotes right from the start. Of course, this means that the situations when your policy will apply will be quite limited. But instead you can save a lot of money on auto insurance. Yet, assuming that you can afford to buy a car without using credits, loans or any other forms of financing it’s logic that you actually have enough money to buy decent coverage for your auto as well. And you would certainly like to buy more coverage options in order to protect your car adequately. After all, things like comprehensive coverage or uninsured motorist coverage really come in handy in a range of situations where a basic policy would simply make you pay out of own pocket. So make sure to think about that after celebrating the purchase of your new ride.

Having a number of quotes in your possession will give you an insight on what type of insurance you should get and where to get it from but aside from your insurance policy, another thing to consider when you are buying a new car is to ensure that it has all the features you want. Your premium is based on a number of factors – the type and model of car you have, your records at the DMV, and your profile. If you want lower premiums, getting a car that is not in car thieves’ hot wheels list is a good idea. Sure you’d be insured with it and you can easily replace your car but filing a claim is a very long process so if you do not want to be inconvenienced by your insurer’s processes or protocols, better not get any of these top 10 hot wheels. Here is the list of top 10 stolen cars in the United States in 2011 alone:

• No 10. 2002 Ford Explorer 11, 783 stolen
• No. 9 1999 Ford Taurus 12, 000 stolen
• No. 8 1994 Acura Integra Over 12, 000 stolen
• No. 7 1996 Jeep Cherokee 14, 350 stolen
• No. 6 2000 Dodge Caravan Over 15, 000
• No. 5 2004 Dodge Ram 17, 405 stolen
• No. 4 1997 Ford F-1 About 17, 500 stolen
• No. 3 1989 Toyota Camry Almost 27, 000 stolen
• No. 2 1995 Honda Civic Almost 50, 000 stolen
• No. 1 1994 Honda Accord 55, 170 stolen

As found in Forbes magazine, thieves have been stealing American-made cars since 2002 – preferring these cars over European ones. According to a report by CNBC, supporting what Forbes magazine has published, thieves steal cars that do not draw much attention that is why you didn’t see BMWs on this list.

It is wise to compare car insurance quotes online before buying a car

The good news is, if you get a car that is technologically more advanced than the ones in this list, thieves won’t try to steal them. This is because of the security these cars provide. Now that you know which models are the favorites of thieves, you can concentrate on getting a car that is not on this list and then surf car insurance quotes. If you do not have an idea where to get your coverage yet, go to a car insurance quotes comparison site asap.

In the past, people living together in the community were expected to act as good neighbors. If someone had a problem, you were expected to help out. But times change and trust issues have arisen. Today, the majority of people have their own problems and prefer to deal with them without outside interference. This reflects a shift away from old-fashioned Christian values to a Libertarian attack on the scrounger. There is a widespread discouragement of people who either depend on others to do what they should be doing themselves or feel that they are entitled to assistance.

Thats what makes the car-sharing services so interesting. Rather than opting for a rental or asking your neighbour to borrow their car there is now an alternative. This is a service that enables you to use another vehicle for short periods of time. It helps out the people who only need access to a vehicle occasionally. Some of the services are run as cooperatives. Local people club together to produce a pool of vehicles and members of the group can book them by the hour. Others run as commercial organizations, renting out on a for-profit basis. The common denominators are that, unlike many rental agencies, you can get access to shared vehicles at any time of the day. Its all self-service. But, as you will understand, every member has to be approved before any vehicle is made available.

Now le us look at the problem of auto insurance ,in terms of sharing a vehicle. When working on an informal basis, some owners have found their policies cancelled by their insurers. There are terms limiting ownership to non-commercial use. As long as you allow someone use your car on a regular basis for money it becomes a commercial use vehicle. Now states like California, Oregon and Washington are passing laws to control the emerging market. This allows you to share your vehicle and make a little extra income without risking to loose your auto insurance protection. This is good for the environment with fewer vehicles needed. It also meets a growing social need because more people find vehicle ownership too expensive. The laws require the sharing organization to hold a fleet policy. When you hand over your vehicle, its then covered by the common policy. There are also new rules about safety to ensure the vehicles are in a roadworthy condition when others are allowed to drive them. Everyone benefits!

The majority of car owners seem to get surprised when they learn about different insurance rates for various vehicle classes. From their perspective, it’s not important whether it’s a small car or a hot rod as long as they have a good driving record and don’t get in trouble in traffic. However, for auto insurance providers it’s a whole different perspective and they will charge you with different premiums depending on the type of car you’re trying to insure. Thus, it’s good to bear in mind the following characteristics of each car type and make your decisions correctly if you want your auto insurance budget to be limited:

Smaller vehicles

Small sized autos are generally quite cheap and rather comfortable in the conditions of a big city with heavy traffic. Usually having low engine volumes, top speed, being stolen quite rarely and inexpensive to handle at repair these cars are very economic. However, insurance can sometimes be a bit costly for small cars because they tend to get damaged very bad during accidents. The laws of physics aren’t on small cars’ side during collisions because the smaller object tends to get the most damage regardless of the safety features the manufacturer has included. Because of this, there are more costly claims with such vehicles, and the insurers respond with respective pricing.

Medium autos

These cars are typically recognized as the safest and the cheapest to insure. Sure, it depends on the particular make and model, but the general rule is that these cars are quite safe, have low repair costs and theft rates, and tend to get damaged much less than smaller vehicles during an accident. So, you will usually get the best auto insurance rates for this car type.

Large vehicles

Large cars and SUVs are certainly very comfortable and give you a whole different perspective in traffic. However, it’s the size that we all love that can be a problem with these vehicles. Because of their size and increased mass as compared to other vehicle types SUVs tend to produce more damage during accidents, especially when there are other cars involved. The third party liability cover with an SUV is usually higher because the other car tends to get damaged quite bad and there are likely to be injuries as well. Add up the higher repair costs for such vehicles, and you’ll understand why SUVs are usually more expensive to insure.

Sports cars

Such cars are an advantageous option for car buyers since they are both cool and cheap. But when it comes to insuring a typical sports car, you will actually have a hard time finding cheap auto insurance because insurers tend to classify such cars as high risk. Increased top speed, engine volume, elevated theft and accident rates as well as the likelihood to produce a very serious car crash all contribute to expensive auto insurance rates for sports vehicles.

Exclusive and expensive cars

It shouldn’t come as a surprise that expensive luxury cars will cost more to insure than other car types. Yet, it’s not because they are costlier to purchase – insurers have other reasons to charge higher rates for such cars. First of all, they are typically very expensive at repair, often requiring exclusive and overpriced repair parts that are hard to find in an ordinary repair shop. Moreover, such vehicles are often targeted by car thieves and burglars due to their value and exclusivity. So don’t expect to get cheap auto insurance for any luxury car.

There’s hardly anyone who would be willing to pay more for something they can actually get at a lower price. This is especially true when it comes to auto insurance. The only problem in this case is the common lack of knowledge about saving methods that can effectively reduce one’s insurance rates. Knowing even the basic saving strategies will help you save a lot of money and avoid situations when you’ll be forced to pay for something you don’t really need with your insurance policy. So the next time you will start shopping for auto insurance consider using the following tips:

Get only what you really need

The most common mistake customers make when buying a policy is getting all the coverage, they can get assuming that it’s better that way. Of course, having different coverage options with your policy is nice since you never know when you will need them, but this also pushes up the cost of your policy. As a result, you end up with higher premiums and lots of coverage options that aren’t truly necessary to buy. So, the first thing you got to do is analyze your current auto insurance needs and outline the types of coverage that are really necessary. See if you need any other coverage options besides the mandatory third party liability and consider buying them only if they are really necessary. Otherwise it will be hard for you to avoid overpaying for insurance.

Never take the first policy offered

For a lot of drivers, auto insurance is an obligation they want to get done with as soon as possible. So there’s not surprise about the fact that a lot of people choose to buy the first policy they come across without even spending some time on rate comparison, assuming that all the policies have the same price. This often results in additional costs you could easily avoid by getting a cheaper policy after some comparison shopping. The truth is that all insurers have different pricing methods, and you can actually get a policy that carries the same amount of coverage cheaper by comparing insurance quotes. With so many sites giving you the opportunity to do it online there’s no excuse for avoiding comparison shopping, which can result in substantial savings.

Don’t hesitate to get discounts if you can

Even if you don’t know about any discounts offered by your auto insurance provider this doesn’t mean that there aren’t any. Some insurers won’t advertise it widely but still give you a discount if you comply with their requirements. Discounts are usually offered to low risk drivers who maintain a clean driving record and don’t file any claims, good students who have an average of B or higher, owners of multiple vehicles, senior citizens and drivers who have a low yearly mileage. It never hurts to ask the insurer if they can give you a discount while the result can cut your insurance costs.

Change your insurance factors if needed

Some of the factors influencing your auto insurance costs are rather hard to change such as your sex, age or place of residence. However, you can take measures to improve other factors such as your credit score, driving record or even change the current vehicle with something that is cheaper to insure.

There are many different truths and myths about capitalism. The outcome, however, is usually the rich get richer and the poor get poorer. Indeed, when you look at the national statistics, you will see the highest levels of poverty for decades. There’s also a widening gulf between the richest and, as the Occupy movement would have it described, the remaining 99%. All of which means there are some very unkind ways in which the poor are penalized for being poor. As an example, let’s look at the question of payment plans. When you first look at the quotes that come back from the insurance companies, one of the first decisions will be how to pay what’s being asked. The first reaction is usually that it’s better to spread out the payments month by month. Adding another installment payment fits into the usual pattern of household expenditure and avoids stressing the budget. Except this usually means you are opting for the more expensive system.

This is treated as asking the insurance company for credit. It is, after all, entering into a contract with you for six or twelve months of coverage. Instead of you paying for this in full, you are spreading out the payments. For this privilege, you pay a fee. If it was expressed as a loan, the additional sum would be called interest. In one sense, this is a penalty for those who literally cannot afford a lump sum. If it was always a trivial amount, we could smile weakly and accept it. The reality is that, over six months on a standard policy, the difference can be more than $100. Put this the other way round and ask about about discounts. You will usually discover how much you can save if you have enough to pay the premium in full. Indeed, if you have savings, it’s always better to pay as a lump sum. It also avoids any problems in you forgetting to make any of the monthly payments.

You should also look out for the hidden fees. The majority of insurers list the premium rate as a monthly sum. This means they neglect to tell you about the fees they charge depending on how you make the payments. There can be big differences depending on whether you pay by electronic wire transfers or online or by the traditional check (which many businesses are now trying to discourage). Some add an administrative fee for handling all monthly payments. There have been problems with this practice in some states and their Insurance Commissioners have issued regulations capping the fees the car insurance companies can charge.

The moral of this is clear. If you are fortunate enough to have savings, always get the car insurance quotes including the discount and pay the full amount. For the majority who are struggling financially, do the calculation. Find out how much you will save if you pay in full and then see whether you can borrow this amount. Obviously, a payday loan will cost you a fortune – if that’s your only option, pay monthly. But if you can borrow more cheaply, do the math. Otherwise, try to save a little each month so that, when he renewal comes around next year, you can pay in full.