insurance

Car Rental Primer: What You Need to Know

December 26, 2019 by admin 1 Comment

Whether you need a car to take a vacation or to borrow one while your car is getting repaired, a car rental can get you behind the wheel of a vehicle quickly. Car rental periods may range from hours to weeks or longer, with nearly any make or model available. Each car rental company establishes its own rules and guidelines, therefore we will examine the general practices of the industry and include tips on how you can secure a quality rental for less.

Car Rental Overview

The car rental industry is made up of multiple players, but three companies dominate. Enterprise, Hertz and Avis lead the industry and all three own other companies.

For example, Enterprise owns Alamo and National, Hertz owns Dollar and Thrifty, and Budget belongs to Avis. Other car rental companies include Advantage, Payless, Rent-a-Wreck, Fox, and Sixt. There are regional operators too and you also may be able to rent a car from your car dealer.

Shop and compare prices online; booking via the Internet will often bring you the best deals.

Flexibility Equals Savings

Expect to pay more for a car if you rent it on a weekday than on the weekend. Business travelers usually rent from Monday to Friday, driving up prices on those days. Weekend rates will often kick in on Friday and provide you with a car until Monday morning.

If you need a car for four or five days compare that cost to renting a car for an entire week. Usually, the rental rate for a week is less than a five-day rental. You should be able to return the car early without a penalty too.

Car Insurance Considerations

Besides the basic daily rate for renting a car, you will find that car insurance is offered. Rates vary, but can range from about $8 to as much as $30 per day reports Bankrate.com. Also, your credit card provider may have you covered should you get in an accident. Contact your provider and ask if damage and total loss are covered. If so, charge your next car rental to that credit card.

Your auto insurance company may have you covered as well. For just a few extra dollars per term, your rental car can be protected. However, a deductible will apply and your insurance rates may be affected if you file a claim. Moreover, it won’t cover the rental car company’s loss of use, a cost the company will charge you for as long as the vehicle is out of commission or until a replacement vehicle arrives.

To Upgrade or Not

You’ve asked for a compact car and for $37 per day that is a price you can live with. That said, it isn’t uncommon for car rental companies to bump customers up to a larger vehicle at no extra cost, putting you behind the wheel of a midsize sedan or an SUV instead.

A larger vehicle will drive up your fuel costs, so decline the offer if that matters to you. In any case, you will also want to refuel the car yourself as car rental companies may charge you more than twice the price of a gallon of fuel if you opt for this service.

Higher Mileage Vehicles

Rental car companies have typically turned cars over after 25,000 to 30,000 miles, selling these vehicles to the public or at auction. In 2006, Hertz held a car for about 10 months, but by 2012 it extended its hold to 18 months.
The car your rent today can easily have 35,000 miles on the odometer to well over 50,000 miles according to the Wall Street Journal. Rental cars are usually very well maintained, thus mileage is rarely a concern. You can, however, ask for a replacement car at the rental counter.

Vehicle Safety Check

Always check the rental car before you get behind the wheel and drive off. You are liable for damages and if an existing scratch, ding or dent is not noted on the rental agreement, you could be held liable.

Don’t overlook examining the tires as any car with higher miles should have had at least one tire replaced. Bald tires are dangerous, reducing grip when you need it most. Check the headlights, the turn signals, navigation and audio systems as well. Your agent will supply you with an emergency contact number before you begin your journey.

Surveying the car rental car market can help you find deals. Moreover, if you are a regular renter, join the company’s loyalty program for additional discounts and perks.

See Also — Your Rental Car Insurance Options

Photo Credit: By Clotee Pridgen Alloc…, CC BY-SA 3.0, Link

Where is my VIN Number Located?

November 29, 2016 by admin 1 Comment

Making sense of your vehicle’s VIN.

All cars have a vehicle identification number, a 17-character alphanumeric identification unique to that vehicle. Commonly known as a VIN number, your vehicle’s ID is assigned when it is manufactured. And just as your Social Security Number (SSN) is unique to you, a VIN reveals details specific to your car only.

Unlike your nine-digit SSN, it is doubtful you have memorized your VIN. Indeed, you might never think of that figure until someone asks for it, namely your insurance company, a repair shop, or a government agency. Unless you have your VIN written down or have a picture of it residing on your smartphone, you’ll have to locate it.

Here’s where you can find your vehicle’s VIN number:

1. On the dashboard.

The most common place to find a VIN is on your vehicle’s dashboard, specifically near where the dashboard meets the edge of the windshield on the driver’s side. Typically, the VIN is fixed to a metal plate and the code displayed so that anyone can read it from the outside of the vehicle looking in.

vehicle identification number — Reflections obscure the VIN found on the lower dashboard,
but it is still decipherable with the human eye.

2. On the driver’s side door jamb.

Another place where the number is usually found is on the driver’s side door jamb. Here, it is as easy to locate as opening the driver door and finding it.

3. Check your insurance card.

If your car is already insured, then the VIN can be found on your insurance card. That card should be kept in a safe place, such as in your glove box with your other important papers and files (e.g., owner’s manual, repair records, satellite radio contract). Locate the card and the VIN should be published with your insurance information.

vehicle identification number on auto insurance card — A sample auto insurance card featuring a VIN, but with other pertinent blotted out.

4. On other locations.

A vehicle’s VIN can also be found on your engine’s firewall and may be located on other key components, including the transmission. The reason? For security, mostly. Given that many cars are routinely stolen, taken apart, and the parts are sold separately, matching the alphanumeric number is important. If there isn’t a match, that doesn’t necessarily mean the parts were stolen. Rather, it could reveal an engine swap you’re already familiar with, especially one you may have conducted yourself.

Deciphering Your VIN

The VIN isn’t simply some random letters and numbers. Certainly, it can seem that way, but there is a method to this 17-character madness.

The helpful people at Edmunds.com found the VIN reveals quite a bit of data about any car, including the make and model, trim level, country of origin, engine size, and the airbag type. Importantly, you can plug this information into the National Highway Traffic Safety Administration’s VIN Look-up Tool to find out what outstanding recalls, if any, are associated with your vehicle.

Another nifty tool is VINDecoder.net, what reveals pertinent information about your vehicle. The site is free, but you should know that links to the last 10 decoded VINs are featured. As the following example of a 1992 Honda Civic Coupe shows, there is much information about the car shared, but nothing about the current owner or its repair history.

See Also — Where Can I Find My Car Paint Code?

Hail Damage Cars: Are They Worth It?

May 2, 2016 by admin Leave a Comment

Yet another round of hail storms have left dealers with damaged vehicles to repair or sell ‘as is.’

“Cars getting hit by hail stones in Kansas” by State Farm is licensed under CC BY 2.0

Threatening clouds may portend something much worse than a rain shower: if conditions are ripe, property-damaging hail may fall, whacking your home’s siding, breaking windshields, and quickly covering your lawn in ice.

Hail also presents an opportunity for new car shoppers looking for a deal. Although many hail-damaged cars are repaired and look none the worse for wear, others are simply offered “as is” and typically are accompanied by deep discounts. Potentially, that $30,000 car might be sold for $22,000, with discounts of 25 percent or more possible.

But are hail-damaged cars worth it? Here’s what to keep in mind when shopping for one.

Beauty is in the Eye of the Beholder

Clearly, what you see is what you get with a hail-damaged car. Given that no two hail storms are alike and damage can vary from vehicle to vehicle, each car must be individually evaluated to determine whether purchasing it is worth it or not.

Likely, some repairs were made before a hail-damaged vehicle is offered for sale. Fragile surfaces such as the windshield, windows, side mirrors, and headlamp assemblies may be new. As for the roof, hood, trunk, trim and body, evidence of damage may yet be apparent.

Your decision here is fairly straightforward: can I live with the way the vehicle looks and enjoy the savings or should I invest “X” amount of dollars in handling the repairs myself? Be forewarned: those repairs may consume much of your savings.

Possible Insurance and Financing Challenges

Buy any car and you will want to have it insured. In fact, your lender will probably require your to carry certain types of coverage. Before you buy a hail-damaged car, check with your insurer. You need to know what the insurer will and will not cover as well as what your overall cost will be.

Financing may be another concern. Some of the usual new car financiers may not extend loans for damaged vehicles. On the other hand, a dealer can usually find a lender. Your bank or credit union should be considered as well.

Warranty Coverage Will Change

New cars typically come with a package of warranties: bumper-to-bumper, powertrain, and rust coverage. The first two may yet be offered, but the rust or corrosion warranty most likely will have been voided.

If all warranties were voided, then look for another vehicle. Some dealers may offer a generous warranty to replace the voided warranties, but may be valid only if your car is serviced at the dealership. This wouldn’t be a problem if you live nearby, but if you live or move far away the warranty is effectively useless.

As for rust, count on it. Unless repairs are made, then expect the vehicle’s already damaged body to show signs of rust early on. Everything else about the car may work just fine, which may be enough for you.

A Second Set of Eyes

As you evaluate a hail-damaged car, look closely for other signs of damage. Indeed, if the windshield was smashed, water damage may have followed. The interior may look great, but it might also show telltale signs of water damage: stained carpeting, a discolored dashboard, an odd smell.

Here, a second set of eyes inspecting your car can come in hand — especially if that person is your mechanic. He may pull out the dashboard and look for signs of corrosion, which may affect the electrical system. Your mechanic can find other signs of flood damage you may miss.

Is it Worth It?

If you plan to keep your hail-damaged car until you wear it out, then its resale value isn’t a concern. On the other hand, if you plan to make repairs, get an estimate from a body shop first as your up front savings may be wiped out by the cost of those repairs.

Where to Rent a Car if You’re Under 25

July 13, 2015 by admin 1 Comment

You are a college graduate and have been working steadily for at least the past year. Moreover, you have your own apartment and have a decent credit history. These accomplishments should work in your favor, including for renting a car — right?

Well, not always. Indeed, many of the major car rental companies draw the line and insist that drivers be at least 25 years old. In some cases you can get around the problem by paying a daily surcharge, but even then you must be at least 21. For those drivers who are younger, they may be left without wheels to rent. Fortunately, there are some exceptions for people who want to rent a car below the common age minimum.

Rent a Toyota Yaris

Choosing a smaller rental car such as this Toyota Yaris can save you money.

Dollar Rent a Car

If you are under 25 and have a valid driver’s license, you can rent a vehicle from Dollar Rent a Car. However, you cannot rent a luxury car, like a BMW 5 Series, but you should be able to rent a mainstream model, such as a Toyota Corolla or a Chevrolet Equinox.

You will be charged an underage document fee if you rent from Dollar. That price is set locally, so contact the rental outlet you are considering using. Tip: Try to negotiate the fee away or at least have it reduced. A talk with the manager may prove helpful here. Besides showing your driver’s license you need to supply proof of insurance.

Cadillac ATS

If you are under 25, renting a luxury model may not be possible.

Enterprise

You can rent a car at Enterprise if you are under 25, but a “youthful driver fee” is also charged. Across the board, the minimum driving age to rent an Enterprise vehicle is 21, except in two states. If you are at least 21 and not yet 25, then you may be charged a higher rate.

Enterprise will not rent certain types of vehicle to younger drivers. Typically, certain specialty models and larger sized vehicles cannot be rented. If you live in New York or Michigan, you are allowed to rent from Enterprise as young as 18. However, you will incur a per diem charge that is over and above your daily rental rate.

Renters who are US government employees only need to be 18 to rent a car. They will not be hit with a young driver surcharge provided the rental is for government purposes.

Ford Mustang

Drivers under 25 typically will be excluded from renting a Ford Mustang.

Go Off Brand

Dollar, Enterprise, Hertz, Avis and the rest of the major car rental companies may not give you a break if you are under 25. Or at least not the break you may think you deserve.

Fortunately, there are rental car companies that operate on a much smaller scale and may be willing to take a chance with you. For example, E-Z Rental Car with locations in just 10 states, typically rents to licensed drivers who are at least 18 years old. You may pay more if you are a younger driver, but you may also be entitled to certain discounts, such as 5 percent off if you are a student. Further, you may be entitled to additional discounts if you are in the military, are a government employee, are employed by a school or a service worker. Lastly, the rates for many off-brand companies is often quite a bit lower than the high-priced competitors — giving you net savings that can erase any surcharge.

Rental Car Considerations

You can save money on a rental car if you are under 25 by shopping around. Besides exploring your off-brand options (Ace, Payless and Sixt should also be considered), your credit card may provide additional discounts as well as insurance savings and allow you to save on certain fees. Be mindful of extras that can be avoided and always refill the tank before you return your car rental.

To sum up, it isn’t so much the restrictions that the car rental companies place on you that make for a difficult time renting, but the savings you can find through comparison shopping and by claiming your discounts.

See Also — Your Rental Car Insurance Options

IIHS: A Surge in Top Safety Pick Awards For 2015

January 1, 2015 by admin Leave a Comment

The number of vehicles that have received the Insurance Institute for Highway Safety’s (IIHS) two top safety awards has surged from 39 in 2014 to 71 in 2015. For the third consecutive year the IIHS raised the crash and safety testing bar for car manufacturers and quite a few companies have met that challenge by responding in kind. The IIHS is funded by numerous insurance companies and organizations — thus, its crash test scores can have a bearing on your insurance rates.

“This is the third year in a row that we are giving automakers a tougher challenge to meet,” says IIHS President Adrian Lund. “The quest for TOP SAFETY PICK and TOP SAFETY PICK+ awards is driving improvement in the small overlap front crash test and getting manufacturers to offer automatic braking technology on more and more vehicles.”

Eleven More Winners

For 2015, the IIHS tightened its safety testing criteria for its TOP SAFETY PICK+ award, while maintaining its requirements for the standard TOP SAFETY PICK honor. Despite the more rigorous stipulation for its top criteria award, the IIHS added 11 more vehicles to its top list. The top performers are now required to have a front crash prevention system that earns an advanced or superior rating instead of the previous basic rating.

Specifically, TOP SAFETY PICK+ awarded vehicles are now equipped with an autobrake system that slows down or stops the vehicle at speeds of 12 mph, 25 mph or both without driver intervention.

“Although forward collision warning on its own is a valuable feature, we decided to tighten our criteria to encourage manufacturers to offer autobrake. Systems that don’t require a driver response to avoid or mitigate a crash have the most potential for reducing crashes,” stated Lund. However, for 2015 some 2014 TOP SAFETY PICK+ winners have lost their plus signs, yet still finished as TOP SAFETY PICK winners.

Both awards criteria are coveted by manufacturers and may be used for advertising purposes. For 2015, 33 models are TOP SAFETY PICK+ winners and another 38 garnered the Institute’s TOP SAFETY PICK award.

Crash Test Categories

The IIHS tests vehicles in several categories to include: head restraint, roof strength, side impact crashes as well as a “moderate overlap front” test. New since 2012 is a “small overlap front” test that has proven to be a much stiffer challenge for manufacturers to satisfy. Notably, that test simulates what takes place when the front corner of a vehicle strikes another vehicle or an object such as a tree or a utility pole.

The Institute acknowledges that the new testing criteria is a difficult one because the crash force sidesteps most of a vehicle’s energy-absorbing structure. Yet, the IIHS says that small overlap crashes are common in actuality, therefore the Institute has been pushing car manufacturers to “look for solutions.”

Honda and Toyota Improvements

Honda is one manufacturer that has successfully found a solution for one of its models, namely its popular CR-V compact utility vehicle. When first tested for the new criteria in 2012, it received a marginal score. As a result of this lower score, Honda’s engineers modified the vehicle’s structure to coincide with the release of its all-new, 2015 edition. The latest test showed a reduction in intrusion from the previous one foot to five inches. More importantly, the test dummy’s head remained on the front airbag until it rebounded. In the earlier test the dummy’s head barely made contact with the airbag before sliding off as the steering column shifted to the right.

Toyota is another manufacturer that successfully improved one of its models. In an earlier test of the Prius V, the Institute said that this vehicle was “one of the worst performers ever in the small overlap test.” Whereas the earlier test recorded much intrusion and significant “injuries” to the dummy, the 2015 model showed a sharp improvement. Toyota made changes to the vehicle’s structure and also lengthened the side curtain airbag.

In the end, the driver and vehicle occupants are the winners when car manufacturers make the Institute’s recommended changes. Manufacturers can contain these costs by incorporating engineering changes as either revised or all-new models are brought to the market.

For a list of current qualifiers, visit the this page on the IIHS website.

Photo courtesy of the IIHS.

University of Michigan: Connected Vehicle Favorability Confirmed

April 10, 2014 by admin 1 Comment

A survey of public opinion about connected vehicles was recently conducted by the University of Michigan Transportation Research Institute (UMTRI). That survey, authored by Brandon Schoettle (project manager) and Michael Sivak (research professor), revealed that the majority of people surveyed in three predominately English-speaking countries (US, UK, and Australia) had not heard about connected-vehicle technology, but most expressed a positive initial opinion of the same.

Connected-Vehicle Survey

The researchers conducted an online survey through SurveyMonkey.com in March 2014 with the results published early the following month. The team developed a questionnaire to assess participant familiarity and their general opinion about connected vehicles.

As defined by the US Department of Transportation Research and Innovative Technology Administration, connected vehicles represent an initiative that aims to enable safe, interoperable networked wireless communications among vehicles, the infrastructure, and passengers’ personal communications devices. When fully operational, the technology is expected to reduce accidents, improve mobility, and provide environmental benefits.

With connected vehicles you wont be
blowing past stop signs.

The researchers also addressed topics related to the expected benefits of connected vehicles, concerns about the technology, the importance of certain connected-vehicle features, and participant interest in owning and their willingness to pay for connected-vehicle technology. The same core survey was conducted in all three nations with slight variations for spelling and currency.

Some 1,596 completed applications were accepted with the United States accounting for 576 responses to 520 from the United Kingdom and 500 from Australia. The researchers claim that the populace of the respective nations were represented minus people that do not have Internet access.

First Impressions

The researchers first asked the survey participants, “Had you ever heard of connected
vehicles before participating in this survey?” Overwhelmingly that answer was no, with only 21.9 percent affirming that they had.

Once they understood what connected-vehicle technology was, 62.4 percent expressed either a very positive (23.4 percent) or somewhat positive (39 percent) opinion about connected vehicles. Approximately one-third (32.6 percent) of the participants were neutral with just 4.9 percent offering negative (3.9 percent) or very negative (1 percent) opinions.

University of Michigan Transportation Institute

Source: Brandon Schoettle and Michael Sivak, University of Michigan Transportation Research Institute

Connected Vehicle Benefits

The UMTRI moved on to ask, “How likely do you think it is that the following benefits will occur when using connected vehicles?” That third question covered a number of topics including fewer crashes and a reduction in injuries, improved emergency response time, reduced traffic congestion, shorter travel time, lower vehicle emissions, improved fuel economy, lower insurance rates, and fewer driver distractions.

Some 85.9 percent of the participants believed that fewer crashes were very likely (28 percent) or somewhat likely (57.9 percent). Nearly as many (83.7 percent) believed that crash severity would fall as well.

As far as the impact on insurance rates, approximately two-thirds (67.4 percent) believed that insurance rates would fall, but an even 25 percent thought it somewhat unlikely. And despite connected vehicles doing much of the driving, nearly 40 percent were skeptical that it would cut down on distracted driving.

University of Michigan Transportation Institute

Source: Brandon Schoettle and Michael Sivak, University of Michigan Transportation Research Institute

Safety Consequence and Other Concerns

The fourth question asked, How concerned are you about the following issues related to connected vehicles?” That question also covered a number of topics including the safety consequences of equipment failure, driver legal liability, system and vehicle security as pertains to hackers, data privacy, pedestrian and cyclist interaction, learning how to operate these vehicles, potential distractions, performance in certain weather conditions, and the drivers reliability on the technology.

Some 82.1 percent of the participants expressed some level of concern about equipment or system failure. Just over two-thirds were concerned about potential legal liability for the driver or the vehicle owner, while three-quarters of the respondents believed that drivers would rely too much on the technology.

Pay Up or Not

The researchers concluded that the answers were very uniform across the three countries surveyed with high levels of agreement in a number of areas. Most participants expressed their interest in having connected-vehicle technology in their cars, although half said that they weren’t willing to pay for it. Of those willing to do so, those amounts ranged from US$20 to US$1,500.

Founded in 1965, UMTRI is a leader in motor vehicle research related to injury biomechanics. The institute has conducted more than 1,000 short- and long-term projects in a variety of areas including accident data collection and traffic safety analysis. UMTRI is also committed to advancing safe and sustainable transportation.

NHTSA: Summer is the Season for Car Heists

July 11, 2013 by admin Leave a Comment

It is summer and the living is easy. Easy for car thieves, that is.

The National Highway Traffic Safety Administration (NHTSA) has issued a reminder to consumers that when it comes to summer, thieves do not take a holiday. In fact, thieves are more likely to steal a car during warm weather and are doing so at a rate averaging one theft every 44 seconds. Moreover, only 52 percent of stolen vehicles are recovered and many of the recovered vehicles have sustained at least some damage.

NHTSA Tips

Who is to blame for vehicle thefts? The thieves are, of course. But, owners sometimes make it too easy for cars to be ripped off with the NHTSA noting that 40 percent of theft incidents are a result of mistakes made by drivers. And they’ are often common, even silly mistakes that can be avoided including:

1. Not parking in well lit areas. If you park on the street or in a public garage, you stand less of a chance of your car getting ripped off if there is sufficient lighting on and around it.

2. Lock and secure your vehicle. Your car doors should be locked, your hood down and your trunk secure. Easy access to your car makes it easier for thieves to drive off with your ride.

3. Take your key with you. Leaving your key in the ignition is an invitation to thieves. But, so is leaving a spare in your glove box or a storage compartment or any place on or under your vehicle.

4. Garage it, if you can. If you own a garage and you do not use it, then you are giving up a secure place to keep your car. Clear out the clutter and keep your car garaged. And then lock your garage.

5. Hide or take your valuables. Valuables in plain sight are an invitation for thieves to break in. Always hide what you own and, if possible, take these valuables with you.

6. Turn it off and take the keys with you. Idling vehicles are another invitation to thieves, especially if you leave your car parked, unlocked and running. Your “I was just dropping off a package” excuse won’t fly here: thieves will eye your vehicle and make off with it lickety-split.

7. Activate your alarm system. A vehicle alarm system can thwart thieves. If they do break in, an immobilizer device can keep them from going far. Protect your investment by investing in same.

Stop, Thief!

If you do all the right things, your vehicle can still get stolen. Some models are thief magnets and are prone to heisting. The NHTSA identifies models that include heavy duty pickup trucks, select SUVs and older versions of popular models such as the Honda Accord.

If your car is stolen, report it to the police at once. File a stolen vehicle report and share details about the vehicle including its license plate number, the vehicle identification number, make, model, trim level, color and whatever other information the police want.

After you file your police report, notify your insurance company. The NHTSA recommends filing your claim within 24 hours of the incident. In the event you recover your vehicle before the police find it, let both the police and insurance company know that you have it back.

About Car Insurance Classifications

March 10, 2013 by Stephen Catalano 2 Comments

car accident

Besides home insurance, car insurance is another expense that most consumers face each year. But unlike home insurance which is based largely on your personal address, auto insurance is determined by a number of factors, including what classifications are applied to you. Thus, your insurance costs may be based mostly on factors you have no control over or what insurers use to rate and underwrite consumers.

Lets take a look at car insurance classifications and how you can find the coverage that is right for you.

Insurance Verbiage

Please know that the language auto insurers use may be slightly different, which can make it difficult to compare policy estimates. Insurers seek to classify consumers to determine risk and for underwriting purposes.

Under personal auto insurance, you may hear of preferred class and non-preferred class or standard and non-standard classifications. Beyond these classifications there are tiers that are based on a number of personal factors, what we will examine next.

Rate Classifications

Auto insurers look at ways to further differentiate drivers. There are some restrictions on how insurers can do this with various states limiting such determinations. For instance, insurers may not discriminate against certain drivers based solely on moral character, a past criminal record or a physical disability. Your religion, creed, gender, ancestry, marital status and job occupation usually will not keep you from obtaining insurance.

Car insurance companies can set rates based on your age, gender and marital status. For instance, if you are 19-year-old single male, you will typically pay more for insurance than a similar aged female. Moreover, your rates will be higher than a driver who is married and in his or her 30s.

Where you live is an important factor in determining your insurance rates. Generally, you will pay more for insurance if you live in the city than in the country. Further, your insurance rates may be determined based on your zip code or even your neighborhood.

Vehicle Choice

Another classification for insurers is your choice of vehicle. Insurers have a very good idea what your car will cost them if repairs are needed. Indeed, the Insurance Institute for Highway Safety rates new vehicles those models that score higher in crash testing can incur a lower insurance rate than those that score lower. If your car is rated a top safety pick by the IIHS, expect to receive favorable insurance coverage.

Other factors insurers use are based on your cars engine size and performance, its overall value, the availably of replacement parts and its group or body style. For instance, plan to pay more for insurance if you buy a luxury car or a sporty coupe than you would for a standard sedan with a four cylinder engine.

Usage and Prior Coverage

How often you drive will have a huge bearing on your insurance costs. The more often you drive, the higher your coverage. You may need to present your vehicle to an insurance agent to review its condition as well as the miles on the odometer.

Insurers will also look at your prior coverage. Cancellation for nonpayment of premiums and your claim history can work against you. That information is readily shared between insurers.

Insurance Underwriting

The safest drivers can expect to receive best rates, individuals with clean driving records for the past three to five years. Nonstandard underwriting is for higher risk drivers including those under age 25 and drivers with multiple tickets, driving infractions or a poor payment premium history. Insurance approval for such drivers is more difficult to obtain and can be more costly too.

If you are not sure what you stand with your insurance company, your agent can help. Although the division points between classifications are not uniform across insurers, you can get a very good idea where you stand by understanding what risk factors apply to you.

References

State of Wisconsin: Consumers Guide to Auto Insurance http://oci.wi.gov/pub_list/pi-057.pdf

Forbes: How Does Your Car Insurance Company Classify Your Ride? http://www.forbes.com/sites/moneywisewomen/2012/01/31/how-does-your-car-insurance-company-classify-your-ride/

NICB Warns Consumers About Storm Fraud

November 21, 2012 by admin 2 Comments

Hurricane Sandy left a trail of destruction as it slammed the northeastern U.S. coastline in late October. Weeks later, the damage is still being totaled as insurers are paying claims expected to exceed $50 billion. Among the claims filed are for storm-damaged cars, including vehicles that may look fine on the outside, but were destroyed by flood waters. Unsuspecting car shoppers should be aware that some of these vehicles might be resold, with the National Insurance Crime Bureau warning that affected cars may be passed off as undamaged.

Flood-Damaged Vehicles

flood damage cars “Unscrupulous salvage operators and dealers often try to conceal from potential buyers the fact that vehicles have been damaged by a natural disaster,” said NICB President and CEO Joe Wehrle. Wehrle’s organization is working with law enforcement professionals to identify these vehicles so that they are not entered into the National Motor Vehicle Title Information System or NMTIS. That system currently includes more than 88 percent of the U.S. vehicle inventory.

The problem of salvaged vehicles being passed on to consumers came to a head in 2005 following Hurricane Katrina. That storm, plus Hurricane Rita, destroyed hundreds of thousands of vehicles, some that were later cleaned up and retitled in other states. To counter this problem the NICB developed what is known today as VINCheckSM, a service that enables consumers to learn if a vehicle has been declared salvage by a participating member insurance company. That information is available for free to consumers on the NICB website.

Fraud Warnings

Following Hurricane Sandy, the NICB has been working with law enforcement officials while warning that unscrupulous towing companies might take advantage of insurance companies and consumers. The NICB also notes that home contractors will often descend upon a disaster area, promising to make repairs, but taking homeowners cash without doing the work.

In addition to checking the NICB database, consumers can also have a vehicle inspected to ensure that it hasnt been damaged in a flood. Tell-tale signs include carpeting that may have been replaced, lights that are not working, electronic accessories that are malfunctioning as well as signs of a water mark in the trunk, in the cabin or underneath the hood (see How to Check for Flood-Damaged Cars).

Mechanic Inspection

Finally, consumers should always have a used car inspected by a reliable mechanic before following through on a deal. Your mechanic can put your vehicle on a lift, inspect its suspension, brake and emissions systems, and evaluate the vehicle for possible signs of trouble including alerting you to possible damage from flood waters.

See Also — Truck Tailgate Thefts Are on the Rise

How to Check for Flood-Damaged Cars

November 5, 2012 by admin 5 Comments

After every major natural catastrophe, particularly one involving flood waters, a slew of damaged cars begin to show up on the used car market. Those cars may have been declared a total loss by insurers and retitled as salvaged or flood-damaged by the state. However, a car may sometimes be moved to another state in a bid to conceal flood damage and sold to an unsuspecting buyer. This practice is known as title washing and can cost you dearly.

Many flood-damaged cars look immaculate, with pristine exteriors and clean interiors to show for it. It is not too difficult to make a car look good inside and out, but underneath and within the vehicle’s mechanics, signs of flood damage can be uncovered. Read on to find out ways to check any vehicle for problems.

1. Do your research. Never take the owners word when it comes to the condition of a vehicle. It may look great and run fine, but flood damage problems can appear later on. Rust, mildew and stained carpeting are visible signs of trouble. You will need to dig deeper too, by contacting your state’s Department of Motor Vehicle to learn if the car was branded with flood or salvage titles. You can also purchase a vehicle history report to get some information about the repair history of most any vehicle. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

2. Look around inside. The carpeting may have been replaced and the seats cleaned, but there may be telltale signs that a vehicle was damaged in a flood. Silt, mud and rust may lurk just beneath the surface, or in the back of the glove compartment, at the bottom of the trunk or behind the dashboard. If stains or discoloration are present or the interior colors are mismatched, you are likely looking at a salvaged vehicle.

3. Check the ignition and lights. Get behind the wheel of the car and turn on the ignition. The dashboard should immediately light up, with gauges moving into place and the ABS and airbag lights activated. Operate the turn signals, the emergency flashers, the horn, and get out of the car to inspect the headlamps, parking lights and other lights. Back inside, the climate control system should be functioning turn it on high for both heat and air-conditioning settings sniff the air for signs of mildew. If your car has a navigation system or other electronic components, these should be in working order too. Try each 12-volt connection and USB port. Power windows and door locks should work without a problem.

4. Take it to your mechanic. You will pay to have your trusted mechanic check your vehicle, but it is an investment you cannot afford to avoid. Ask your mechanic to put the vehicle on a lift to inspect its suspension system, brakes, exhaust system, powertrain and other components. If the car has been damaged by a flood, evidence such as mud, silt and rust will appear. High-water marks can be observed on the engine block; wires, as well as other parts, may have rusted.

5. File a complaint. If a car show evidence of flood damage, you should notify your state’s office of the attorney general to make a report. You can also file a complaint with your local Better Business Bureau office. Help other consumers avoid being ripped off by following through with your complaint.

Car Notes

Flood-damaged cars routinely appear on the market after a hurricane or other major weather event. From Texas to the northeast, such vehicles may have been declared a total loss by the tens, if not hundreds of thousands. Even if you do not live anywhere near where a storm occurred, an unscrupulous individual may try to sell a flood-damaged car, costing you thousands of dollars in later repairs when the engine seizes, the transmission fails or the exhaust system rusts through.