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Archive for the ‘Auto insurance’ Category

Buying a new vehicle is a long-term purchase for most owners and requires quite a lot of money if you want a good vehicle. And there are two ways you can do it. The first one is simple and fast: you go to the local car seller and get the car you have the money for. It saves you a lot of time but in turn you can get a car that costs more than it is on the market and can have inconvenient conditions. The second way requires more of your time: decide which car make and model you want to buy and research the market for a real price. Yes, it’s not as fast as the first method but when use it you go to the dealership with plain facts and figures and not just a general conception of what you want that the dealers can use to sell you an expensive vehicle. When you have all things sorted inside your head it will be much easier for you to get a good car at a good price.

The most important decision you have to make is the type of car you want to buy. Different car types cater to different needs and will also have different maintenance and insurance costs. Once you have determined whether you need a truck, a SUV, a sedan or a fast muscle car, you will have to look deeper into sub-classes. Having 2 or 4 doors, different engine power and other features will contribute to the final price and subsequent costs. It’s better to have all of the options you want with your car on a list, and compare different cars according to the criteria you have, rather than shop only by car make and model. Why buying things you don’t need just for a name? Read the rest of this entry »

You probably know that your car insurance policy is comprised of different coverage types that each protects you against certain situations you may encounter. And knowing them and their purpose will help you tailor your policy for the best coverage and reasonable price. So before you choose to modify your coverage amounts, make sure you know the essence of the following coverage types:

Bodily injury liability. This type of coverage pays for injuries, harm or death of others caused by you while you were behind the wheel of the car included in the policy. It will also cover for your legal expenses if the other driver involved in the accident will sue you. However, this type of coverage doesn’t protect you or other people in your policy, nor it covers the damage to your vehicle. That’s why it makes sense to have a high enough amount of it in order to make sure your assets are protected in case the other party files a suit against you for injury, loss of income or pain.

Comprehensive. This type of insurance pays for the damage of your vehicle resulted from causes other than collision. For example, this type of coverage will kick in if your car gets stolen, damaged by a fallen tree, storm or flood. It will also pay for repairing your vehicle in full amount minus the deductible that you are free to choose when signing your policy. Deductible is the amount of money you are willing to pay from your pocket before getting actually covered. And the higher is your deductible the lower will be your rates. Read the rest of this entry »

Wherever you look, the news about recalls is headlining with Toyota leading the pack with the highest profile problems. Indeed, the US lawmakers have begun a formal investigation into the problem of the sticking accelerator pedal. This is not a simple issue of a manufacturer with a faulty vehicle. The problem is the US is supposed to have a formal system in place to ensure that only safe vehicles are allowed on the roads. To this end, the Department of Transport established the National Highway Traffic Safety Administration (NHTSA) as its agent to collect information about traffic accidents. If patterns emerge, the NHTSA is supposed to liaise with the manufacturer to get prompt action to repair the problem. The insurance industry is also supposed to send data to the agency. Because insurers are handling claims on a daily basis, they should be the first to know whether there are design faults causing accidents. Indeed, State Farm is on record as saying it notified the NHTSA of unintended acceleration problems in Toyotas in 2007. If that is confirmed and other insurance companies also sent in reports of the same problem, the lawmakers will want to know why the NHTSA failed to take any action. When Toyota learnt of the problems is also going to be a key issue. Read the rest of this entry »