Auto Insurance Affected by Gas Prices

Rising gas prices may end up affecting auto insurance rates. According to the article "Will Rising Gas Prices Cause a Small-Car Book?" by Jonathan Welsh on The Wall Street Journal, people are looking to more fuel-efficient cars as gas prices creep up.

A similar trend happened in 2008 when demand increased so many for smaller cars and hybrids that used car prices were matching that of newer cars. Used car insurance and car insurance for smaller vehicles is typically cheaper so consumers who go this route are saving money on numerous fronts.

Americans in general associate smaller, more efficient cars with tougher economic times so overall car makers wait for higher gas prices or an economic downturn to push the sale of their smaller cars.

Kelley Blue Book, which keeps track of resale values and other industry data through a Market Intelligence survey, reports that economic struggles and the growing concern over gas prices pushes new and used-car owner to proactively change the type of car they are driving. In February, their survey showed that 81% of car shoppers were influenced by gas prices which shows the power of these prices in the market place.

Understanding a Used Car's History

It is critical in today's economic environment to ensure you are not getting scammed, and purchasing a car should be no different. Many consumers are looking to used cars for many reasons such as they are generally cheaper, used car insurance is often less expensive and with cars being made so well today, used cars can run great and for a long period of time. But there are sellers out there trying to sell lemons to do your homework.

Larry Gamache of CARFAX says there are millions of cars on the road today with open recalls that have not been attended to. According to the article "Learn A Used Car's History Before You Buy" by Stephanie Wilson on WUSA9.com, consumers should insist that a mechanical inspection be completed before purchasing a car. In addition, they should order a car report from a trusted company such as CARFAX and get information on the VIN number. If there is an open recall on a car, the manufacturer must repair it at no cost to you so it's definitely worth your time to ensure the car is safe.

Jack Gillis from Consumer Federation of America and the author of The Car Book, says the best way to find a deal on a used car and know for sure what it has been through is to buy it from a trusted friend. Since this isn't always an option following the few steps mentioned above will hopefully prevent you from buying a car that may be unsafe.

Auto Auctions to Save Money

In today's economy everyone is looking to save money and what better way than to purchase a used car once it's time for a new vehicle. With new cars depreciating so quickly after they are purchased, it makes sense to buy a car after the initial depreciation is no longer a factor. The government wants to help consumers by suggesting auto auctions as a choice.

The General Services Administration wants consumers to find their auctions rewarding and enjoyable. By becoming familiar with how these auctions work, you can find great success and get a great deal on a used car. Not only can you save money on the actual car, but used car insurance rates tend to be lower as well, so you should see savings in this respect as well.

The GSA website talks about what you should know before you attend an auction. GSA holds its public auctions through registered auctions throughout the nation. If you are interested in participating in such auctions, you can register at their website and obtain a bidder number at the auction house before the sale and there is not a registration fee. Worth looking into if you are in the market for a used car.

Compare Car Insurance

Most auto insurance companies use driving record information determining your auto insurance rates. According to the recent article "Are You Driving Distracted, and is Your Auto Insurance Suffering" found on lexch.com, even non-fatal car accidents are detrimental to have on your driving record. Driving safely will end up saving you a lot of money over time, and makes it well worth your time to compare car insurance rates.

According to Distraction.gov, the official US Government site for distracted driving, there are three types of driving distractions which are visual, manual and cognitive. In 2008, distracted drivers caused around 5870 deadly auto accidents. This is a scary statistic which should motivate everyone to stop driving distractions such as talking on the phone, texting while driving, or eating. Having a conversation with a passenger or fiddling with music stations can cause accidents as well.

Before you compare car insurance quotes, be sure to know where your driving record stands. Tickets, accidents and mos DUI's do fall off your record over time, but it's important to understand that the safer you drive, the less likely you are to be in a crash and pay higher auto insurance premiums. Not to mention you can save lives if you are a very safe driver. There are many reasons to drive safely, and no good reason to risk lives and have any unnecessary distractions while driving.

Many Working to Save Massachusetts Auto Insurance Appeal Board

Massachusetts' Insurance Commissioner wants to eliminate the state's independent auto insurance appeal board, citing cost and a move towards a more competitive insurance market. This proposal doesn't sit well with many consumers, legislators, and even insurers, according to an article in The Republican. If the board is eliminated, policyholders will instead have to appeal their claims to the insurance companies themselves; consumer groups fear that is unfair and will create bias towards finding the motorist at fault in order to avoid paying accident claims.

However, the insurance commissioner claims that the change will actually benefit consumers, because they will no longer have to pay a fee to appeal and will have state oversight of insurance companies; not to mention the opportunity to shop around for auto insurance quotes from multiple insurers.

On average, the board of appeal has found in favor of the consumer about half of the time, saving drivers thousands of dollars in premium surcharges. The surcharges can appear on their records for up to 6 years!

A bill is currently pending in the state legislature to save the appeal board. As of now it will remain open for several months to deal with its backlog, but no new appeals may be filed after April 1st.

16% Of Drivers Will Be Uninsured in 2009, Predicts Insurance Research Council

In Newsday, Tom Incantalupo reported that the Insurance Research Council, and industry group, is predicting an increase in uninsured drivers for 2010. Their projection is that 16.1% of all drivers in the United States will be driving around without auto insurance, an increase from 13.8% in 2007.

The IRC blames this state of events on the economy, because consumers are trying to cut back on expenses. With the unemployment rate rising at a similar clip, it’s somewhat understandable that keeping up with your auto insurance premiums may fall to the wayside. Still, it’s a bad idea to let your policy lapse. For one, when you eventually buy insurance again, your premiums could see a sharp increase. Not only do uninsured drivers risk fines and other legal punishment in most states; they also cause the rates of insured drivers to go up when they’re involved in a crash, Tom says.