Diesel vehicles now account for nearly half of all new vehicle sales in Europe. In some European countries (such as France), diesel vehicles account for as much as 70 percent of new car sales. Are diesel vehicles a viable alternative to hybrids?
The Diesel Difference
Diesels are also known as compression ignition engines, and have a different combustion cycle than gasoline engines. In a gasoline engine, fuel is sprayed into the cylinder, mixed with air, and ignited by a spark from the spark plug.
In a diesel, air is drawn into the cylinder and compressed first without fuel present. This compression heats the air to such a high temperature that when fuel is then injected into the cylinder, it combusts. By using higher compression ratios and higher combustion temperatures, diesels operate more efficiently. As a result, diesel vehicles attain better fuel economy than their gasoline counterparts. This fuel economy advantage is enhanced by the fact that a gallon of diesel fuel contains about 10% more energy than a gallon of gasoline. These two factors help modern direct-injection diesels achieve roughly 50% higher fuel economy than their gasoline counterparts. For example, a European model Honda Accord with a 2.2 liter i-CTDi diesel engine is rated at 43.3 MPG, 49 percent higher than the rating of a Honda Accord with a 2.4 liter gasoline engine. The Camry Hybrid is rated at 39 MPG, 10 percent lower than the diesel Accord.
Diesel Emissions
Modern diesels require something of an environmental tradeoff. While generating fewer greenhouse gas emissions (due to greater fuel efficiency), diesels emit larger amounts of two other pollutants:
* Particulate matter is the black cloud that trails many older diesel vehicles. Diesel particulates are harmful to human health as well as aesthetically unpleasing.
* NOx, while less visible, is a key ingredient in the formation of urban smog, and also can contribute to the formation of acid rain.
Higher emissions of these pollutants are diesels’ greatest drawback. There has been an ongoing split in diesel emissions regulations in the US between those required by the Environmental Protection Agency, and those required by the California Air Resources Board.
Currently no new diesel passenger vehicles can be sold in the five states that adhere to the more stringent California requirements: California, Massachusetts, Maine, New York and Vermont. The current diesel Liberty, Beetle, Golf and Jetta, in other words, are 45-state vehicles. The EPA, however, is tightening its diesel emissions requirements, and moving them more into alignment with the California requirements. The point at which the two map exactly for passenger cars is called Tier 2 Bin 5 (T2B5).
For a 2007 or later model year diesel passenger car to be sold in all 50 states, it must meet the T2B5 emissions requirements. Currently, there are no T2B5-compliant, 50-state diesel cars. One is on the horizon-the new Mercedes E320 BLUETEC, to be introduced in 2007. BLUETEC refers to the emissions after treatment system that enables the vehicle to meet the T2B5 standard. The 2007 E320 BLUETEC has NOx emissions that are more than eight times lower than the outgoing 2006 E320 CDI
The Diesel Dilemma
PROS CONS
Fuel Economy: 81% of U.S. diesel buyers say they bought a diesel engine for higher fuel economy. U.S. buyers should be aware, however, that in the United States diesel could often be more expensive than unleaded gasoline. (In Europe, diesel is taxed less heavily in Europe, and therefore can be substantially cheaper than gasoline.)
Availability: Until cleaner fuel and advanced emissions controls arrive here, availability of diesel models will be limited. New diesels are already absent from five states (California, Massachusetts, New York, Vermont, or Maine) that have stricter air quality standards. At the end of 2006, federal pollution rules will tighten, pushing cleaner diesel models out of the entire U.S. market.
Longevity: Diesel engines tend to last longer than gasoline engines, leading to higher resale values for many diesel-equipped models.
Emissions: Particulate and NOx emissions are higher than those of comparable gasoline vehicles. (Most diesel engines can use biodiesel without any modification.)
Power: Diesels provide greater torque, which can be important for drivers who carry heavy loads or tow trailers.
Price: Adding a diesel engine to a Volkswagen Jetta adds over $1000 to the car’s price, and in medium-duty pickups the increased cost of a diesel engine can exceed $5000.
Incentives: Future clean diesels will be eligible for the same types of tax benefits that hybrid vehicles receive. Buyers of the Mercedes E320 BLUETEC, for example, qualify for $1500 off of their tax bill.
Availability of Fuel: Diesel owners must also cope with a refueling network that is more limited than that of gasoline, although their vehicles’ longer range means they have more time to find a station that sells diesel.
Not an Either-Or Situation
It’s technically possible to use a hybrid drivetrain with a diesel engine. In fact, PSA Peugeot Citroën recently showed a diesel-hybrid prototype: the 307 CC Hybride HDi, a compact convertible that gets 70 miles per gallon, about 30 percent better fuel economy than the existing diesel version. No one makes diesel hybrids yet, mainly because they are expensive. The added benefits come at a double expense-more for the hybrid system and more for the diesel engine. PSA Peugeot Citroën may introduce a diesel hybrid to the market as early as 2010. But no promises yet from the company.
There is a rite of passage so each new teen driver am able to encounters so is in condition to train, test, and prove this the young inhabitant plans to push responsibly, safely, and intelligently. Parents experience the own gauntlet to run associated amongst the children’s new endeavors, that includes shopping for teen Automatic coverage and producing definite properties act sensibly and obey the law. Parents wish to compare the worth of not excluding the teen on the Automatic protection policy or turning out a separate policy for the teen. Parents furthermore ask for to put in to a contract amongst the teen to reach agreement to behave sensibly behind the wheel.
Teen Driver Laws
Laws governing the giving out of learner’s allows and driver’s licenses differ on neighborhood to state of affairs but all are calculated to submit an inexperienced driver substantial training and education to raise a competent grade of skill driving a car. In California, all teens who need to in the end earn a drivers license are required to earliest broad a driver education course. Most driver education courses are offered at astronomical schools or licensed driver education schools and entail 30 hours of classroom instruction or the equivalent online activity.
Learner Permits
After successfully completing a driver education course, attaining a learner make it easier for might permit the young student to impel a car in on an adult supervisor. For the six cycles too emulate taking out the learners permit, all youth short of the age of 17 ½ should pass a driver’s training course. With a licensed instructor endorsed by the DMV, the student have to attain at the very least 6 hours of behind the wheel training. Add a different 50 hours of parent Hello How Are you? practice and the teen is projected to ask for his driver’s license.
Graduated Driver Licensing
Due to the extreme fatality market values surrounded by inexperienced drivers and such a passengers in the first and foremost period of licensed driving, establishments in the field of highway safety suffer matured the Graduated Driver Licensing System. Most argues by now call a technique of graduated driver certifying the current includes laws and procedures to usher young drivers to the driving populace gradually. The approach limits the new driver to a reduced number of precarious driving circumstances first, at that time soaring the total quantity of need as the driver swells experience. A ordinary first age of graduated driving may prohibit the teen driver based on information from driving at night, driving on freeways or super highways, and driving in on a large amount of teens in the car. As the teen increases competency in the first and foremost driving level, he might be allowed to take on additionally demanding driving situations.
Passenger Restrictions
Peer pressure based on data from passengers is a ample distraction for a teen when driving. The likelihood of a fatal accident is notably greater when there is one teen passenger as opposed to when there are none. The possibility of going through a fatal vehicle accident swells amid the sum of teenage passengers. For now reason, all graduated certifying agencies affix passenger restriction as side of this program. In California, a 16 year old driver may not hold a new teen passenger in the car for a time of 1 year. As a result of the law restricting teen passengers, fatalities in these kinds of things experience moderated dramatically.
The Need for the “No Trunking” Law
Even laws through the perfect intentions can backfire, as in the state of affairs of restricting teenage passengers for teen drivers. To circumvent the passenger restriction clause in graduating driving laws, teen drivers suffer now encouraged such a teen friends to ride in the car’s trunk when more than likely to the mall or movies. They feel the current properties are outsmarting the law by working at this, but properties are as well unwittingly exposing the friends to egregious risk. Fatalities based on data from presently activity experience now began to become a different substandard statistic. As a result, several alleges undergo now imposed a “no trunking” law to prohibit teens on engaging in presently elevated activity.
Parents Need to Become a Factor.
If parents are going to share the responsibility of letting such a teens to drive, properties crisis to own the teens deal with the results of this own mistakes. Make a contract the present the teen will be able to share in using for the market value of Automatic insurance, and too the teen pay for his or her own income tickets and damage repairs. In such way parents can boon the teen drivers become a greater amount of mature behind the wheel. For the teen driver, driving a car is fun, but it in addition is a grown-up activity, providing grown-up consequences. When a teen learns to drive, the is the up to date equivalent of a tribal perfect of passage for a person, to transition of a child to adulthood. The a larger amount of the teen realizes that, the a good amount of responsible a driver he ought to become.
Getting a free quote with Get The Best Auto Loan is easy! Simply fill out this form with a little information about who you are, your credit situation, and what kind of loan you’re looking for (new car loan, used car loan, auto refinance, etc.) We’ll match you with a lender that can offer you the best rate depending on your answers, so be sure to be as accurate as possible for the best results.
Why You Should Use Us for Your Auto Finance Needs
We Have the Lowest Rates Around
Getthebestautoloan.com works with a network of the nation’s top auto financing lender groups to put your buying power to work! Lenders bid on the opportunity to service your loan – this means lower interest rates and affordable monthly payments are just a click away.
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No matter where you live in the United States we can help you with you need for an automobile loan. You can work with our agents online or over the phone 24 hours a day, 7 days a week.
Did We Mention We Do Car Refinance Loans Too?
If you’re looking to get out of a high monthly payment or an obscene interest rate, we can help! We have a special team dedicated to auto refinancing options of all sorts; 89% of all applicants see a sharp decline in their car loan amount by the next payment!
Complicated Automobile Loans are a Thing of the Past
Our quotation process takes about five minutes, which means you spend less time in front of paperwork and more time choosing the car financing options that best fit your lifestyle. We’ll even handle your original lender’s paperwork for you if car refinancing is what you’re after!
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Handling your quotation documents online might sound daunting, but we use the latest 128 bit SSL encryption technology to handle your automobile finance requests. This means no one but you has the ability to view your documents online, thus guaranteeing your privacy whenever you use us for your auto loan needs.
Get Started Now
Whether you’re looking for an auto loan for a new car, or you’re looking for automobile refinance options, Getthebestautoloan.com is a great place to start! We make it easy to compare multiple quotes from a variety of lenders all at once, which can save you a lot of time and a lot of money! If you’re ready to start saving, just fill out the form on the right and you’ll be taken to our secure online quote processing center. Once there you will be able to set your target interest rates, payments, and other options, & we’ll match you with the lender that can provide a loan with the terms closest to your goal.
This application is 100% safe and secure, and we never sell your information to third-parties for any use other than presenting you with the best auto loan rates. The quote process is completely free and you have nothing to lose – get started now!
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An auto loan is much like a mortgage in which you use the property you are getting the loan for as collateral for the loan. In this case the new car you are buying will be your collateral for the loan, so if you do not pay it back the lender has the right to repossess your car. When you originally take your new car loan you will be issued an annual percentage rate (APR) which is the interest rate you will pay on the loan. The APR will vary based on your credit rating. You will also have to issue a down payment on the loan, the larger your down payment the less your overall loan will end up being. Usually if you put less than 20% down you will end up paying more then the car is actually worth.
When you go to buy a car at the dealership there is great incentive to let to get an auto loan through the dealership. People fall in love with their new car and want to drive out of the dealership with it that very day so they settle with getting a loan through the dealership so they can have the car instantly. This can hurt you in the long run because car dealerships charge higher interest rates and do not specialize in loans, therefore might not be as adept in saving you money nor do they want to save you any money. It is much more efficient to get your new auto loan online, here are some reasons why:
Lower interest rates compared to most dealerships
Dealerships sometimes add to your interest rate in order to increase their profit
Dealerships might match your interest rate, but add more months to the length of the loan costing you much more
Avoid the “song and dance” from the dealership sales people and manager
Online lenders can approve you almost instantly
Car dealerships have little desire to deal with people that they consider risk, those with low credit ratings. If they do not deny you they will charge you incredibly high interest rates. Online auto lenders will approve you even if you have bad credit and can approve you quick. Let GTBAL.com we want to help you find the best loan that can fit you. Get a free quote and find the auto loan that will help you buy your dream car today.
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It is possible to get a loan to help you buy a used car, the older the car is the harder it will be to find a loan through a bank or dealership. Used cars are seen as deteriorating in value, therefore dealerships and financial institutions will charge you higher interest rates on your loans and may not even offer a loan if the car is old enough. A used car may cost less, which may be part of the reason you are buying it, but may cost a lot more to take out a loan on then a new car once you factor in interest expenses.
When you buy an used automobile you usually have one of two options: buy it from a dealership or from another person. Person-to-person used car purchases can range from buying a car off your friend or going through a service like Auto Trader. When applying for a used auto loan you can usually find slightly better interest rates on cars bought from a dealership. This does not mean, however, that you should take out your used auto loan from the dealership. They could try to get a higher interest rate out of you, add unnecessary expenses, and may even increase certain costs based on how old the car may be.
Getting a used auto loan online is always a better decision than going through the dealership. You can get approved quicker, qualify for lower interest rates and get approved even if you have bad credit. Getting a loan online will also help you get better rates on old cars. Buying a used car can be a smart financial decision. All cars deteriorate in value, and they deteriorate the most in their first year. You can avoid losing money on your purchase by buying used, but you can avoid even more money by taking out a online loan to help pay for that car. Let us help you find the best used car loan for your financial situation.
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When people think about refinancing, they probably think about refinancing their mortgage. Auto loan refinance is similar in concept but is a lot less complicated. Why should you refinance? Maybe your interest rate is sky high and your monthly payments are too much for you to handle. If this sounds like your situation (or you’re just curious to see if you can get a better deal) then a refinance quote is right up your alley.
When you refinance your auto loan you take out another loan to help you pay off your old loan. How does taking out another loan help you pay your current loans? Refinancing your auto loan will not only extend the length of the loan, but it will lower your interest rate which will lower your monthly payments and total loan cost. Getting your auto loan refinanced online makes perfect since, since very few dealerships offer loan refinancing options. Your current lender won’t either, since they do not want to help you save money at their expense. We can help you get out of debt and refinance to a reasonable interest rate in just a few easy steps. Get your free quote today!
Here are some frequently asked questions about the refinancing process:
Why Should I Refinance?
Refinancing your auto loan can help lower your interest rate and monthly payments, making it easier for you to pay your bills on time.
How Much Money Could I Possibly Save?
That depends on certain factors like how much your current interest rate is and how much of a balance you have remaining on your current loan. Most auto loan refinance clients see savings of $100 or more per month!
Are Auto Refinance Loans Popular?
Today auto refinance loans are extremely popular. With auto rates being at all time lows, lots of people are deciding to refinance their current auto loans with online providers since these companies have less overhead costs than dealerships and can provide lower rates as a result.
What is a Balloon Payment?
A balloon payment occurs when you have to pay the entire balance left on the loan on the date the loan matures. This can happen on loans when you are only paying the interest for a few years, yet when it matures most of the balance has yet to have been paid.
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Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
Contents
1 Public policy
1.1 Australia
1.2 Canada
1.3 South Africa
1.4 United Kingdom
1.5 United States
2 Coverage levels
3 Excess
3.1 Compulsory excess
3.2 Voluntary excess
4 Basis of premium charges
4.1 Gender
4.2 Age
4.3 Distance
4.3.1 Reasonable estimation
4.3.2 Odometer-based systems
4.3.3 GPS-based system
4.3.4 OBDII-based system
5 Auto insurance in the United States
5.1 Coverage available
5.1.1 Liability
5.1.1.1 Combined single limit
5.1.1.2 Split limits
5.1.2 Collision
5.1.3 Comprehensive
5.1.4 Uninsured/underinsured coverage
5.1.5 Loss of use
5.1.6 Loan/lease payoff
5.1.7 Towing
6 See also
7 Notes
Public policy
In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.
A 1994 study by Jeremy Jackson and Roger Blackman[1] showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.
Australia
In South Australia, Third Party Personal insurance from the State Government Insurance Corporation (SGIC) is included in the licence registration fee for people over 16.
In Victoria, Third Party Personal insurance from the Transport Accident Commission is similarly included, through a levy, in the vehicle registration fee .
Canada
Several Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) provide a public auto insurance system while in the rest of the country insurance is provided privately. Basic auto insurance is mandatory throughout Canada with each province’s government determining which benefits are included as minimum required auto insurance coverage and which benefits are options available for those seeking additional coverage. Accident benefits coverage is mandatory everywhere except for Newfoundland and Labrador. All provinces in Canada have some form of no-fault insurance available to accident victims. The difference from province to province is the extent to which tort or no-fault is emphasized.[2] Typically, coverage against loss of or damage to the driver’s own vehicle is optional – one notable exception to this is in Saskatchewan, where SGI provides collision coverage (less than a $700 deductible, such as a collision damage waiver) as part of its basic insurance policy. In Saskatchewan, residents have the option to have their auto insurance through a tort system but less than 0.5% of the population have taken this option.[2]
South Africa
South Africa allocates a percentage of the money from petrol into the Road Accidents Fund, which goes towards compensating third parties in accidents.[3]
United Kingdom
In 1930, the UK government introduced a law that required every person who used a vehicle on the road to have at least third party personal injury insurance.
Today UK law is defined by the The Road Traffic Act 1988, which was last modified in 1991. The act requires that some motorists either be insured, have a security, or have made a specified deposit (£500,000 as of 1991) with the Accountant General of the Supreme Court, against their liability for injuries to others (including passengers) and for damage to other persons’ property resulting from use of a vehicle on a public road or in other public places.
Insurance which satisfies the requirement of the act, for those who require cover, is called third party insurance. It is an offence to drive your car, or allow others to drive it, without at least third party insurance whilst on the public highway (or public place Section 143(1)(a) RTA 1988 as amended 1991); however, no such legislation applies on private land.
Vehicles which are exempted by the act, from the requirement to be covered, include those owned by certain: councils and local authorities, national park authorities, education authorities, police authorities, fire authorities, heath service bodies and security services.
The insurance certificate or cover note issued by the insurance company constitutes legal evidence that the vehicle specified on the document is indeed insured. The law says that an authorised person, such as the police, may require a driver to produce an insurance certificate for inspection. If the driver cannot show the document immediately on request, then the driver will usually be issued a HORT/1 with seven days, as of midnight of the date of issue, to take a valid insurance certificate (and usually other driving documents as well) to a police station of the driver’s choice. Failure to produce an insurance certificate is an offence.
Insurance is more expensive in Northern Ireland than in other parts of the UK.
Most motorists in the UK are required to prominently display a vehicle licence (tax disc) on their vehicle when it is kept or driven on public roads. This helps to ensure that most people have adequate insurance on their vehicles because you are required to produce an insurance certificate when you purchase the disc. However it is a known practice for some people to purchase insurance to gain the certificate and then to cancel the insurance and gain a full refund within the statutory 14 day cooling off period.
The Motor Insurers Bureau compensates the victims of road accidents caused by uninsured and untraced motorists. It also operates the Motor Insurance Database, which contains details of every insured vehicle in the country.
United States
In the United States, auto insurance is compulsory in most states, though enforcement of the requirement varies from state to state. The state of New Hampshire, for example, does not require motorists to carry liability insurance, while in Virginia residents must pay the state a $500 annual fee per vehicle if they choose not to buy liability insurance.[4] Penalties for not purchasing auto insurance vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states. Usually, the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle.
Coverage levels
Vehicle insurance can cover some or all of the following items:
The insured party
The insured vehicle
Third parties (car and people)
Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.
Excess
An excess payment, also known as a deductible, is the fixed contribution you must pay each time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair “garage” (The term “garage” refers to an establishment where vehicles are serviced and repaired) when you collect the car. If one’s car is declared to be a “write off” (”write off” is commonly used in motor insurance to describe a vehicle which is cheaper to replace than to repair), the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you.
If the accident was the other driver’s fault, and this is accepted by the third party’s insurer, you’ll be able to reclaim your excess payment from the other person’s insurance company. If the other driver is uninsured, a policy’s minimum limits include coverage for the uninsured/underinsured motorist(s) at fault.
“excess is the portion of any claim that is not covered by the insurance provider.
Compulsory excess
A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses vary according to your personal details, driving record and insurance company.
Voluntary excess
In order to reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer is able to offer you a significantly lower premium.
Basis of premium charges
Main article: auto insurance risk selection
Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.
When the premium is not mandated by the government, it is usually derived from the calculations of an actuary based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future claims.[5] Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (age, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven).[6][7]
Gender
Men average more miles driven per year than women do, and have a proportionally higher accident involvement at all ages. Insurance companies cite women’s lower accident involvement in keeping the youth surcharge lower for young women drivers than for their male counterparts, but adult rates are generally unisex. Reference to the lower rate for young women as “the women’s discount” has caused confusion that was evident in news reports on a recently defeated EC proposal to make it illegal to consider gender in assessing insurance premiums.[8] Ending the discount would have made no difference to most women’s premiums.
Age
Teenage drivers who have no driving record will have higher car insurance premiums. However young drivers are often offered discounts if they undertake further driver training on recognised courses, such as the Pass Plus scheme in the UK. In the U.S. many insurers offer a good grade discount to students with a good academic record and resident student discounts to those who live away from home. Generally insurance premiums tend to become lower at the age of 25. Senior drivers are often eligible for retirement discounts reflecting lower average miles driven by this age group.
Distance
Some car insurance plans do not differentiate in regard to how much the car is used. However, methods of differentiation would include:
Reasonable estimation
Several car insurance plans rely on a reasonable estimation of the average annual distance expected to be driven which is provided by the insured. This discount benefits drivers who drive their cars infrequently but has no actuarial value since it is unverified.
Odometer-based systems
Cents Per Mile Now[9](1986) advocates classified odometer-mile rates. After the company’s risk factors have been applied and the customer has accepted the per-mile rate offered, customers buy prepaid miles of insurance protection as needed, like buying gallons of gasoline. Insurance automatically ends when the odometer limit (recorded on the car’s insurance ID card) is reached unless more miles are bought. Customers keep track of miles on their own odometer to know when to buy more. The company does no after-the-fact billing of the customer, and the customer doesn’t have to estimate a “future annual mileage” figure for the company to obtain a discount. In the event of a traffic stop, an officer could easily verify that the insurance is current by comparing the figure on the insurance card to that on the odometer.
Critics point out the possibility of cheating the system by odometer tampering. Although the newer electronic odometers are difficult to roll back, they can still be defeated by disconnecting the odometer wires and reconnecting them later. However, as the Cents Per Mile Now website points out:
As a practical matter, resetting odometers requires equipment plus expertise that makes stealing insurance risky and uneconomical. For example, in order to steal 20,000 miles of continuous protection while paying for only the 2,000 miles from 35,000 miles to 37,000 miles on the odometer, the resetting would have to be done at least nine times to keep the odometer reading within the narrow 2,000-mile covered range. There are also powerful legal deterrents to this way of stealing insurance protection. Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel. Odometer tampering—detected during claim processing—voids the insurance and, under decades-old state and federal law, is punishable by heavy fines and jail.
Under the cents-per-mile system, rewards for driving less are delivered automatically without need for administratively cumbersome and costly GPS technology. Uniform per-mile exposure measurement for the first time provides the basis for statistically valid rate classes. Insurer premium income automatically keeps pace with increases or decreases in driving activity, cutting back on resulting insurer demand for rate increases and preventing today’s windfalls to insurers when decreased driving activity lowers costs but not premiums.
GPS-based system
In 1998, Progressive Insurance started a pilot program in Texas in which drivers received a discount for installing a GPS-based device that tracked their driving behavior and reported the results via cellular phone to the company.[10] Policyholders were reportedly more upset about having to pay for the expensive device than they were over privacy concerns.[11]
OBDII-based system
In 2004, Progressive launched another pilot program to allow policyholders to earn a discount on their premiums by consenting to use its TripSense device. TripSense connects to a car’s OnBoard Diagnostic(OBD-II) port, which exists in all cars built after 1996. The discount is forfeited if the device is disconnected for a significant amount of time.[12]
Auto insurance in the United States
Coverage available
The consumer may be protected with different coverage types depending on what coverage the insured purchases. Some states require that motorists carry minimum levels of auto insurance coverage in order to ensure that its drivers can cover the cost of damages to people or property in the event of an automobile accident. Some states, such as Wisconsin, have more flexible “proof of financial responsibility” requirements.[13]
In the United States, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles provided, do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is necessary for example, when a family member comes of driving age they must be added on to the policy. Liability insurance sometimes does not protect the policy holder if they operate any vehicles other than their own. When you drive a vehicle owned by another party, you are covered under that party’s policy. Non-owners policies may be offered that would cover an insured on any vehicle they drive. This coverage is available only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at fault in an accident.
Generally, liability coverage extends when you rent a car. Comprehensive policies (”full coverage”) usually also apply to the rental vehicle, although this should be verified beforehand. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured’s vehicle, assuming that a rental car may be worth more than the insured’s vehicle. Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered.[14]
Liability
Liability coverage provides a fixed dollar amount of coverage for damages that an insured driver becomes legally liable to pay due to an accident or other negligence. For example, if an insured driver drives into a telephone pole and damages the pole, liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company).
Liability coverage is available either as a combined single limit policy, or as a split limit policy:
Combined single limit
A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured driver with a combine single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver’s car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.
Split limits
A split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver’s vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.
Bodily injury liability coverage is also usually split as well into a maximum payment per person and a maximum payment per accident.
Collision
Collision coverage provides coverage for an insured’s vehicle that is involved in an accident, subject to a deductible. This coverage is designed to provide payments to repair the damaged vehicle, or payment of the cash value of the vehicle if it is not repairable. Collision coverage is optional. Collision Damage Waiver (CDW) is the term used by rental car companies for collision coverage.
Comprehensive
Comprehensive (a.k.a. – Other Than Collision) coverage provides coverage, subject to a deductible, for an insured’s vehicle that is damaged by incidents that are not considered Collisions. For example, fire, theft (or attempted theft), vandalism, weather, or impacts with animals are types of Comprehensive losses.
Uninsured/underinsured coverage
Underinsured coverage, also known as UM/UIM, provides coverage if another at-fault party either does not have insurance, or does not have enough insurance. In effect, your insurance company acts as at fault party’s insurance company.
In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws.
Loss of use
Loss of use coverage, also known as rental coverage, provides reimbursement for rental expenses associated with having an insured vehicle repaired due to a covered loss.
Loan/lease payoff
Loan/lease payoff coverage, also known as GAP coverage or GAP insurance,[15][16] was established in the early 1980s to provide protection to consumers based upon buying and market trends.
Due to the sharp decline in value immediately following purchase, there is generally a period in which the amount owed on the car loan exceeds the value of the vehicle, which is called “upside-down” or negative equity. Thus, if the vehicle is damaged beyond economical repair at this point, the owner will still owe potentially thousands of dollars on the loan. The escalating price of cars, longer-term auto loans, and the increasing popularity of leasing gave birth to GAP protection. GAP waivers provide protection for consumers when a “gap” exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company. In many instances, this insurance will also pay the deductible on the primary insurance policy. These policies are often offered at the auto dealership as a comparatively low cost add on that can be put into the car loan which provides coverage for the duration of the loan.
Consumers should be aware that a few states, including New York, require lenders of leased cars to include GAP insurance within the cost of the lease itself. This means that the monthly price quoted by the dealer must include GAP insurance, whether it is delineated or not. Nevertheless, unscrupulous dealers sometimes prey on unsuspecting individuals by offering them GAP insurance at an additional price, on top of the monthly payment, without mentioning the State’s requirements.
In addition, some vendors and insurance companies offer what is called “Total Loss Coverage.” This is similar to ordinary GAP insurance but differs in that instead of paying off the negative equity on a vehicle that is a total loss, the policy provides a certain amount, usually up to $5000, toward the purchase or lease of a new vehicle. Thus, to some extent the distinction makes no difference, i.e., in either case the owner receives a certain sum of money. However, in choosing which type of policy to purchase, the owner should consider whether, in case of a total loss, it is more advantageous for him or her to have the policy pay off the negative equity or provide a down payment on a new vehicle.
For example, assuming a total loss of a vehicle valued at $15,000, but on which the owner owes $20,000, is the “gap” of $5000. If the owner has traditional GAP coverage, the “gap” will be wiped out and he or she may purchase or lease another vehicle or choose not to. If the owner has “Total Loss Coverage,” he or she will have to personally cover the “gap” of $5000, and then receive $5000 toward the purchase or lease of a new vehicle, thereby either reducing monthly payments, in the case of financing or leasing, or the total purchase price in the case of outright purchasing. So the decision on which type of policy to purchase will, in most instances, be informed by whether the owner can pay off the negative equity in case of a total loss and/or whether he or she will definitively purchase a replacement vehicle.
Towing
Car towing coverage is also known as Roadside Assistance coverage. Traditionally, automobile insurance companies have agreed to only pay for the cost of a tow that is related to an accident that is covered under the automobile policy of insurance. This had left a gap in coverage for tows that are related to mechanical breakdowns, flat tires and gas outages. To fill that void, insurance companies started to offer the car towing coverage, which pays for non-accident related tows.
Source:wikipedia
By paying too much for car insurance, you are not doing yourself any favors. The only one benefiting from this is your car insurance company. There are many ways that you can lower the cost of your premium, but some of them are simply too time consuming for most to look into. If you want to save money in a simple and efficient manner, you should consider the three details below:
1….Do not buy the most expensive luxury car on the market. Remember, cars that are worth more money cost more to insure. This is due to the fact that these cars cost a lot of money to repair if they are damaged in any way, shape, or form. If you cannot afford to pay for the insurance, you should not purchase the car.
2….If you drive a beater, it may be time to drop your coverage down a few notches. Many people think that they still need a lot of coverage even though there car is on its last leg; this is simply not true. There may come a time when you can drop your coverage quite a bit due to the fact that your car is only worth a few thousand dollars.
3….Have you ever tried asking for discounts? Believe it or not, some car insurance companies will cut the cost of your policy if you simply ask. There are many discounts out there, and by asking you may find one or more that you qualify for. Even if you do not, your agent may be able to work with you to get your cost to a more acceptable level. But remember, until you ask you have no chance of receiving help.
With these three tips, you should be able to save money on car insurance sooner rather than later.
Source:2insure4less
When buying a car insurance policy, it should be a goal of yours to save money. How much you can save is up to you, but in the long run you definitely want to make sure that you get the best possible deal. There are many unnecessary costs associated with car insurance that you can avoid if you are a savvy shopper. Three of the most common unnecessary costs are listed below:
1.Rental car coverage. Is this a nice benefit to have? It sure is. But with that being said, it can cost you a few bucks every month as well. If you are interested mainly in low cost and less on extra coverage, this is one feature that you can do without.
2.Having a low deductible. Paying out of pocket is never fun if you are in an accident; that is why many have a low deductible. But o course, one of the best ways to keep your cost down is to raise your deductible. By saving the money you may need for an accident, you can increase your deductible and in turn save hundreds of dollars every year.
3.Do you drive an older car that is only worth a few hundred dollars? If so, you absolutely do not need the highest level of coverage. Remember, it is not as expensive to fix a car that is old and beat up. One of the biggest advantages of driving an old car is that you can save on auto insurance. Make sure that you take advantage of this benefit.
Are you currently paying too much for your car insurance policy? If so, you could be falling prey to one of the unnecessary costs above. By going over your policy with a fine toothed comb, you will be able to determine what you are paying too much money for.
Source:2insure4less
Compare Auto, Home Owner, Health, Life Insurance Quotes
Insurance prices for the same coverage may vary greatly from company to company depending on their loss experience. Your auto insurance company for example may increase your insurance premium even if you did not have any accidents or violations, while a different insurance carrier had a profitable year and reduced or discounted its car insurance rates to increase market share. Your home owner insurance carrier may suffer massive losses from fires, flood, tornado, or earthquake in one state and, to compensate, raising rates on its automobile and homeowners insurance in other states.
Health and life insurance rates are very competitive right now and insurance companies are often offering low cost insurance coverage to new clients, but raising them after a while without a notice. The only way to assure maximum savings on all your insurance policies is to periodically review and match your changing insurance coverage needs and to compare multiple insurance quotes offered by different insurance companies.
Use technology to save time and money
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So, whether you are looking for the cheapest price for your expiring car insurance, or want to compare prices for house, renters, disability, long term care, cancer, burial (final expense), life insurance, and annuity, 2insure4less can help you find an affordable insurance plan that meets your needs. Check if you can save money on your healthcare, or medical supplement insurance, you can instantly compare offers of cheap insurance coverage and quotes online, or speak with expert who is an insurance agent or broker licensed to advice and transact insurance in your state.
Learn how to buy more insurance for less money
Our learning center offers extensive library of educational material, FAQs, and helpful money saving tips, onboard tools to learn about your coverage needs, how to read and understand your policy, what to do and not to do if you have had an accident, or otherwise suffered a loss, how to make claim and accept your rights if your claim is not handled as you expected.
Remember, you owe it to yourself to save money when shopping for insurance by periodically comparing insurance quotes you get with the prices you pay for insurance with same or better coverage. Just select the coverage you want, answer a few easy questions, and compare rates in minutes.
Source:2insure4less
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