banktime.com

Sticking with the same insurance company year after year may seem like the right thing to do. You are comfortable with them, your agent is friendly and calls you by your first name and sending them a check month after month is easier than shopping around. But blind loyalty to an insurance company can cost you bundles of cash and leave you with less coverage than you could find with another company. In fact, a recent survey by Consumer Reports revealed that many drivers pay twice as much for an auto insurance policy at their current company than they would with a competitor.

Finding the Best Rates

The best tool for seeking the best insurance rates is the Internet. With websites like Quicken Insurance and InsWeb it is faster and easier than ever to compare insurance quotes from top providers. These services submit your information to multiple insurance companie and they compete for your business, each submitting their own quote. Such competition can save customers hundreds of dollars per year on auto insurance.

A smart shopper will compare insurance rates at least once a year. This does not mean that one should go switching insurance companies year after year. Loyalty can and does have its benefits. Many companies, after years without a citation or accident will qualify you as a “safe driver,” which greatly reduces your rates. On the other hand, given your driving record, some other companies may offer you safe driver status right off the bat. Also, discounts are often granted if you insure other vehicles or your home with the same company.

An accurate quote will require you provide basic information on the car or cars you intend to insure such as the make, model, year, trim line and vehicle identification number (VIN). Personal information is also necessary. Be prepared to share the age, sex and recent driving record of all drivers to be included in the policy. Other information such as the environment in which the car is typically driven, where it is parked, and any anti-theft devices you may have installed are important in your rate. With all of the information compiled, your potential insurer will most likely check your driving history via police and other public records along with your insurance history.

Buy the Appropriate Amount

Remember that when you “sit down” to negotiate with an insurance agent, their job is to make as much money for their company as possible. Chances are they will offer you a slew of other forms of coverage that are not necessarily essential. Below, we separate what we believe to be the essential from the not-so essential forms of coverage you are likely to encounter when shopping for auto insurance.

“Must Have” Coverage

Bodily Injury Liability- Nobody expects or wishes to get in a car accident, but with around 6.5 million auto accidents accuring every year, statistics show they are inevitable. Should you be the cause of a car accident that results in the injury or death of your passengers, the other driver or his or her passengers, Bodily Injury Liability insurance is invaluable. According to Consumer Reports customers should “buy coverage that will pay at least $100,000 per person and $300,000 per accident. If you have sizable assets, consider increasing those limits to $250,000 per person and $500,000 per accident.”

While such coverage will undoubtedly raise your premiums, but should anything go wrong, this is well worth the cost. It is also recommended to those with a high net worth to take a out a separate “umbrella policy” to cover lawsuit amounts that extend beyond auto insurance policy limits.

Property Damage Liability- This coverage should be purchased to pay for the repair or replacement of damaged property caused by your car. States vary on their requirements, ranging anywhere from $10,000 to $25,000, but we recommend going for $100,000 of coverage as accidents often exceed state minimum requirements.

Uninsured and Underinsured Motorist Coverage- In the event of a hit and run or your getting in an accident with one of the many uninsured drivers on the road, this type of insurance covers you and the passengers in your car for medical bills, rehabilitation, funeral costs and losses for pain and suffering. It is highly encouraged to get an amount equal to your bodily injury liability insurance so in the event you are involved in an accident with an uninsured driver, your medical bills are covered.

“Should Have” Coverage

Collision and Comprehensive- Considering that most car accidents are collisions, this type of coverage is highly recommended. Collision insurance pays for repairs to your vehicle regardless of the cause of the accident. Comprehensive pays for repairs or the replacement of your vehicle in the event that it is stolen or damaged as a result of a natural disaster. This type of coverage is applied to any amount exceeding your deductable. To keep your payments down, it is best to go with the highest deductible you can afford to pay out of pocket with $500 being the minimum. When coverage equals or exceeds 10 percent of your automobile’s book value, we suggest canceling this coverage as the maximum payout you can hope for is your car’s market value.

Personal-Injury Protection- Also referred to as PIP, this pays you and anyone else riding in your car a minimum amount per person for their injuries regardless of fault. The benefits typically include medical expenses, rehabilitation, work loss benefits, funeral expenses and survivor’s loss benefits.

This type of insurance is especially worthwhile in states that have “no-fault” laws. No-fault laws establish that there is no need to establish who is at fault to receive payments in the event of injury in a car accident.

Medical-Payments Coverage- Regardless of who is at fault, this covers medical bills for you and your passengers. Such coverage is not necessary if you have a good health insurance plan, but you might want to have a little bit of this to cover any passengers who don’t have medical insurance of their own.

“Don’t Need” Coverage

Roadside Assistance- This pays for your vehicle to be towed. Many drivers belong to auto clubs like AAA which include roadside assistance or have this service provided by their car’s manufacturer. If this is the case, there is no need to purchase this coverage.

Rental Reimbursement- While the security of having a car paid for while you wait for repairs sounds enticing, there is usually a cap on the amount of days this service will be paid for, but not a cap on the amount of years an insurance company will allow you to pay for it. With different travel websites offering tremendous discounts on rental cars, this is one type of insurance you can afford to live without.

Money Saving Strategies

Ask for “Top Tier”- According to Consumer Reports, “Insurers sort customers according to their likelihood of filing a claim, then assign them to one of several categories commonly referred to as tiers. Top-tier customers who have had few or no claims in the past several years and live in neighborhoods where auto-theft rates are low can easily save 15% or more off of the standard rate.” Unfortunately, simply qualifying for top-tier status does not mean you will receive such status immediately. Simply asking can give you that little nudge you need to get the savings you deserve.

Check Rates Before You Buy an Automobile- Believe it or not, your car can have just as much of an impact on the cost of your auto insurance as your driving record. If you’re in the market for a new car, keep your insurance rates in mind when you do your shopping. For example, the cost to fix a Porsche is significantly larger than fixing a Honda. So before you go to the auto mall, know your rates and find a car that not only suits your tastes, but your wallet as well.

Go To Traffic School- Consider taking a driver improvement class. Usually, because they tend to be long and have a reputation for being boring, these classes are only taken by people who were given a speeding ticket and want to avoid points on their license. But by taking attending traffic school before you get a ticket, most insurance companies will offer a discount of up to 10%. Given the low price of most traffic schools (typically between $15 and $30), you will recoup the investment in a month or two and the rest goes in your pocket.

Get a Discount Just for Being You- Sometimes in the expensive world of insurance, the best way to get a discount is to ask. Perhaps you are a good student or a college graduate with a B average or better? You may be eligible for an insurance discount. Maybe you’re married? Discounts are available. Served in the military? Or just have a clean driving record? Discounts are available if you take the time to look and have the guts to ask. There are so many special programs out there offered by different insurance companies you are bound to fit the bill for one of them so be sure to ask.

The city of Phoenix, Arizona is fed up with scofflaws who ignore parking tickets and refuse to pay up. The city reportedly is owed around two million dollars in unpaid fines, and it recently compiled a “boot-and-tow” list for police officers to assist authorities in immobilizing and impounding cars that have been involved in unpaid fines. The only problem? The great majority of those fines are attached to rental cars.

The once-popular Smart ForTwo microcar seems to have lost a lot of its initial luster. Once upon a time, Daimler could barely keep enough of these teeny-tiny, sporty cars in stock. To obtain a Smart car, you needed to go on a lengthy waiting list and all put beg and grovel for the first car that became available. Not anymore. According to a German publication, worldwide sales of the vehicles manufactured by Mercedes-Benz’s parent company are tanking.

People tend to do well with easy-to-read labels on things. A price sticker on eggs in the grocery store, an “ORGANIC” label on meat, a red or green stop light – these are all effective, because they convey vital information without too much fuss or necessary thinking on the part of the customer. If the Environmental Protection Agency (EPA) has its way, cars will soon be labeled with a letter grade that lets the world know at a glance how environmentally-friendly it is. A much-touted proposal issued jointly to the government by the EPA and Transportation Department would grade new cars with a rating of “A” (for excellent) through “D” (poor) on the basis of fuel economy and emissions as a means of promoting greener passenger cars and advanced auto technology on a larger scale. The measure, endorsed by President Obama, would mark what’s being called the biggest change in over three decades to the familiar dealer price and mileage stickers that appear in the windows of cars for sale on auto lots in the United States at present.

Right now, dealer labels are only required to display the auto’s fuel efficiency in terms of miles per gallon and the estimated average fuel cost for driving the car or truck in question. The proposal would slap a prominent letter grade alongside that information that we have come to expect. As of right now, the government says, only electric and plug-in hybrid autos would qualify for grades anywhere in the “A” range (as the grades will include plus and minus symbols, just like in school!). Compact- to mid-sized passenger vehicles would most likely score in the “B” range under proposed standards. Larger vehicles like pickup trucks and SUVs would likely get “C’s.” I shudder to think at what Hummers would get! The cars getting lower ratings would be marked down for greedier consumption of petroleum and higher output of environmentally-hazardous carbon monoxide.

It’s believed that the labels would help consumers make “the right decision for their wallets and the environment,” said Gina McCarthy, the EPA’s assistant administrator for air and radiation. McCarthy noted that the rating system would hopefully make citizens of the United States not only more aware of the potential environmental impact of the vehicles they choose to drive, but would also reflect and reward tremendous advancements in the fields of auto technology. Environmental groups are hugely excited about the proposal, naturally. Many have said for a long time that it’s due time for consukers to be forced to take responsibility for their choices if they put fuel hogs on the road.

Not surprisingly, the auto industry is already dead-set against the proposal, and firing back on why they think it’s a bad idea. Of course, it’s not hard to understand why… if you made a product, would you really want it labeled with a scarlet letter telling the world that it was deficient in some way? I doubt that the makers of fancy SUVs want to have a glaring “C-“ taped in the glossy windows of their tricked-out mommy-mobiles! The car industry claims that the proposal would cross an ethical line between responsible consumer disclosure and making what the AP called “value judgments about vehicles.” The industry is already acting beleaguered over President Obama’s relentless pursuit of stronger rules concerning minimum fuel economy of new cars coming out. If passed, the new grading system would doubtlessly add an extra, unfair aspect of judgment to the makers of bigger cars that use more gas, say auto industry members.

The president of the Alliance of Automobile Manufacturers, Dave McCurdy, attacked the plan as short-sighted because it attached “school-yard memories of passing and failing” to the purchase of vehicles, and strongly implied the government’s approval and disapproval of certain models. Other members of the industry quoted in the original article say that they don’t necessarily disagree with the idea of a straightforward system of labeling that would represent a car’s relative green-ness, but want apples compared to apples and oranges with oranges. Steve Cook, an auto dealer, suggested that only cars and trucks in the same size class should be graded against one another for environmental impact and gas mileage, since obviously every single SUV is going to look poorly on those standards when compared to a compact sedan. That doesn’t mean that a smaller car is the right choice for everyone, he implies. On the other hand, comparing one SUV to another helps buyers to actually make an informed decision based on a particular model’s commitment to being the best it can be within its class. Another suggestion is to factor in more than just fuel economy as a flat grading system, and to also incorporate the size of the vehicle in the grading so that a comparatively green big vehicle could earn a better grade.

It’s interesting to note that, when gas prices are as stable as they have been in the past year, Americans purchase more big trucks and SUVs. The sales of these vehicles have risen almost twenty-one percent in the past year, whereas small cars have seen a less than eight percent increase. It’s reflective, say experts, of the fact that American car drivers like bigger vehicles and choose to purchase them when other factors aren’t an issue. Right now, Americans simply buy the cars that they want. A grading system could change that completely. Industry experts point out that the data on fuel economy and emissions is very accessible right on current dealer labels, but most would-be carbuyers simply do not know where to look. The letter grade would give them a very-accessible focal point for accessing and understanding that information. If customers knew the environmental impact of the car they wanted to buy, the implication goes, they might choose otherwise.

The EPA’s proposal also calls for taglines like “saves [x amount of money!]” in terms of how much more fuel efficient a certain vehicle is than the comparative cars in its weight class. The prospectively revamped dealer sticker also would clearly display figures reflective of how many gallons the car uses per one hundred miles of driving, its city and highway miles per gallon fuel efficiency ratings, how much carbon dioxide it emits, and the estimated annual fuel cost figured as a result of these functions. Additionally, the stickers would give the range of fuel economy for all vehicles in the same class so that buyers could make a more educated purchase based on the relative fuel economy of what they were buying based on competitors.

As per the written proposal presented to the government, the changes would not take effect until the model year 2012 vehicles came out. Right now, the government is in the midst of a two-month period for public comments on the suggested rule changes during which members of the public can make their feelings known and/or make suggestions as to amendments to the rules. The public is also being asked to consider a version of the modified labels that doesn’t include the much-contended letter grade, but simply displays the same information in a more relatable and straightforward format.

The prospective labeling changes are highly applicable to changes in the current auto industry, as many of the biggest names in domestic auto manufacturing prepare to roll out vehicles sporting the most advanced technology in fuel efficiency and the prevention of dangerous emissions. Big announced vehicles include General Motors Co.’s Chevrolet Volt, a battery-operated compact car that runs on gasoline to power a generator beyond certain distances traveled, and Nissan Motor Co.’s much-advertised, all-new, all-electric Leaf. GM caused an uproar in the industry when it proudly announced that, per the new EPA fuel efficiency standards passed by President Obama, the Volt would get around two hundred thirty miles per gallon of gas. That raised huge questions about the validity of the EPA formula, and has led the government to work in conjunction with the EPA and DOT on labeling standards for vehicles that are different from standard ones running entirely on gasoline.

One problem with the EPA’s new proposal on dealership vehicle labeling is that fact that it comes up empty-handed on the topic of forcing the labels to contain additional, comprehensive information on the environmental impact of the electricity used to charge and run electric cars. The discussion stemming from GM’s announcement of the Volt brought this to undeniable, crystal-clear light. It’s been argued by certain environmental groups that both the government and auto manufacturers need to responsibly disclose information on so-called “upstream emissions” (those associated with coal-fired power plants, the energy from which would charge electric cars) on cars powered fully or in part by electricity. McCarthy noted that the EPA was only currently required by the federal government to “specify only tailpipe emissions, not upstream emissions, be included on the label. The original article quoted Dan Becker, director of the Safe Climate Campaign, as claiming that the agency wouldn’t have been blocked from providing more information on emissions from power plants, implying that the EPA simply could not be bothered with disclosing this vital information.

Do you remember what you did last summer, oh car buyers of the United States? Those were glory days for those seeking new wheels. Cash for Clunkers was only the best-known of the myriad incentive programs made available to those purchasing new cars. Last summer was the climax of years of fancy deals made available to those buying new autos – employee discounts, rebates, and plenty of discounts to go around were all considered de rigueur. All good things have to come to an end, however, and the reign of car buying incentives is one of those things.

Almost everyone knows that you can refinance your home mortgage to save some cash on your monthly payments when rates fall (as, for many people, they have at present), but were you aware that you can also refinance your auto loan? Auto loan interest rates are also very low at the moment, even though it tends to be the cost of mortgages that gets all the attention.

More bad news for Toyota owners – including this (unhappy!) writer. The embattled Japanese auto manufacturer announced late last week that over a million late-model Corollas and Matrixes were in the process of being recalled. It’s said that issues with these vehicles’ engine control modules could cause the cars to stall. An estimated one point one million of the affected hatchbacks and sedans will be officially recalled in mid-September, at which point their owners will begin receiving letters from the company detailing the situation.

“Fuel economy” is one of those terms that gets mentioned a lot, even though not that many people have any clue what it actually means. The fuel economy of a vehicle is one of the most important deciding factors when we buy cars, but what does this really mean?

The results of the latest car insurance survey are in, showing what cars and trucks in the United States are most and least likely to be stolen. Do you have to be concerned about a thief making off with your wheels? Read on to find out. The Highway Data Loss Institute of Arlington, VA, which is an affiliate of the Insurance Institute for Highway Safety, recently ranked several well-known vehicles by their likelihood of being stolen.

Even if you aren’t really paying attention, you’ve definitely heard the ads. “You’re okay with us!” “Bad credit? No credit? No problem!” These people are offering you quick cash, which, on first glance, sounds like a great thing. Of course, there’s a catch. If someone’s hawking cash on the radio, you can guess that it’s definitely too good to be true. Invariably, these advertisements are either for payday loans or their less commonly-known cousin, title loans. Payday loans are a concept that many Americans know about: you go to a payday loan store, write a post-dated check, collect your cash, and pay back the short-term loan on your next payday (hence the name). Payday loans get a bad rap – and deservedly so – but they look downright innocent compared to title loans.

The title of this post says it all. Can you actually afford the car that you are thinking of buying? Liz Pulliam Weston doesn’t think so. The MSN Money guru recently published an article about car buying, and how we Americans are getting over our heads despite our best intentions. She has determined a “simple formula” for determining how much car you can truly afford. You won’t like the results, but there’s not much doubt that what she’s saying makes perfect sense.