Tips to save money on your car insurance premium
Most people do not spend as much time trying to find the best insurance deals for their cars as they do on finding the best car to buy. The common perception is that getting the car insured involves a fixed payment and there is not much one can do to bring the cost of insurance down. The cost of insurance for a new car appears to be quite insignificant in comparison to the cost of the car, but most of the time people forget that insurance is a recurring cost that you pay throughout the life of the car every year unlike the fixed one time cost of the car itself, and any saving on insurance could mean substantial saving over the life span of your vehicle. Knowing some basic rules can save you a lot of money.
The first and foremost thing you must do before selecting an insuran
ce company is to do a thorough research on them as their rates vary widely. Most companies will give you a multi-car discount, so it is best to insure all your vehicles with one insurance company. There are further discounts if your home, where your car is kept is also insured. Try not to let your policy expire, because in that case you end up paying more than what you were paying before the expiry of the policy. The longer the policy term you choose, cheaper will be your insurance premium. It makes sense to drive cautiously for your own safety; it also reduces your chances of getting a speeding ticket and other moving violations, thus reducing your insurance cost.
You are unlikely to claim reimbursement in the first few years after you purchase the car if you are driving safely and do not get involved in an accident, and therefore it makes sense to raise your deductibles or the amount you will be paying when you file for claim. Thus, you save a lot by not claiming in the first few years when the insurance costs are high. Moreover, you should choose a coverage that you think is necessary, in addition to the minimum auto insurance requirement of your state.
Further discounts in the insurance amount may be claimed if your car has certain safety features installed in it. If your car is registered in the name of your teenaged son or daughter, then the insurance amount is likely to be higher. It is also advisable to keep checking the insurance rates offered by different companies at regular intervals rather than sticking to one company throughout the life of the vehicle.
The 10 most expensive and 10 least expensive cars to insure
The Insurance Institute for Highway Safety has released its list of the Ten Most Expensive and Ten Least Expensive Cars to Insure. Both lists are based on an assessment of car models from 2004 until 2006. Based on these lists, the usual favorites - small and fast cars - require owners to pay higher insurance premiums. According to Russ Rader, the spokesman of the Insurance Institute for Highway Safety, “Contrary to the idea that smaller cars can help you avoid crashes, the data shows that small cars get into more accidents. If you feel like you have a vehicle that can zip in and out of traffic, chances are you’ll do that.”
When you factor in the fact that young drivers prefer smaller and faster cars, you can be sure that they will be paying higher car insurance premiums. This is not to say that young drivers are reckless drivers or that only those who own sports cars are liable to pay for higher insurance premiums. But people who own sports cars tend to drive faster than those who don’t. And younger people tend to take risks more often than older drivers. Speed is one of the factors that cause vehicular accidents, especially among inexperienced drivers who have not mastered how to control a fast car yet.
Among the cars with high rates of collision are Subaru Impreza WRX 4WD (2nd), Nissan Sentra SE-R (7th), Mitsubishi Lancer, and Acura RSX (6th). These cars are often driven by young drivers and at a faster speed. The Scion tC is the car the comes fifthin the list of Ten Most Expensive Cars to Insure. This car is also driven primarily by young people, thirty-five percent of whom are below the age of 25, according to Kim Hazelbaker, the senior vice president of the Highway Loss Data Institute.
The model that tops the Ten Most Expensive Cars to Insure list is the Cadillac Escalade EXT 4WD. This car is considered desirable due to its appearances in shows such as MTV Cribs and to the fact that it is owned by most pop stars. The Cadillac Escalade EXT 4WD’s desirability also makes it a popular target for car thieves. Naturally, car owners are willing to pay more for the insurance. Other cars that made it to the list of Most Expensive Cars to Insure are Hyundai Tiburon (3rd), Suzuki SE-R (8th), Nissan Sentra (tied at 9th place with Mistubishi Eclipse), and the Chevrolet Cobalt two-door (10th).
As for the least expensive cars to insure, these are usually modern versions of family cars, such as sedans, SUV, or minivans. Since these cars are often driven by people who bring along their babies or children, they are less likely to drive carelessly. Therefore, they are less likely to get into vehicular accidents or collisions. The car that tops the list of Ten Least Expensive Cars to Insure is the Ford Five Hundred 4WD (also known as Ford Taurus), which is not considered as desirable to thieves as the Cadillac Escalade EXT 4WD. Other car models that made it to this list are, the Buick Rendezvous 4WD (2nd), Buick Lucerne (tied at 3rd with Buick Rainier 4WD and Honda Odyssey), Ford Freestyle 4WD (tied at 4th place with the Subaru Outback 4WD), Buick Rendezvous (tied at 5th with the Honda Pilot), Chrsley Town and Country LWB (6th), Honda Pilot 4WD (7th), Buick LaCrosse (tied at 8th place with Chevrolet Uplander, Ford escape, and Volvo V70), Dodge Grand Caravan (tied at 9th with Ford Freestyle 4WD), and Ford Explorer 4WD (tied at 10th place with GMC Sierra 1500 4WD, Toyota Highlander, and Toyota Sienna).
Bad Credit, Good Deal?
Most people are careful to keep and maintain a very good credit score. The general advice is that a good credit score will help you get better interest rates when you apply for a loan. Also, service providers such as mobile phone companies or insurance agencies check your credit report to see if you pay on time. Making timely payments is a sign of being a responsible individual. Because of that, companies would naturally want to do business with you.
However, it seems that this is not the case when you purchase a car (or any vehicle for that matter). Apparently, a good credit score would not be able to help you get the best deal or the price that you want to have. Any possible loss in profits from sales to people with bad credit ratings will be off-set by profits from sales to people with good credit scores. If you have always paid all your bills on time, this is definitely bad news for you. So what should you do when you want to purchase a new car? Should you try to prevent the car dealers from checking your credit report or from notifying your own bank?
You don’t have to hide any piece of information. Even if you do try to do this, the car dealer will be able to find out anyway. One of the first things that you should do is to get a copy of your credit report and check for any inaccuracies. Credit report companies may not be obligated for make the necessary correction in your reports so you yourself must do something about this. Check your own records against the information noted in the report. If you there are any inaccuracies in your credit report, avoid consulting credit repair companies. Such companies claim to fix your credit rating, but this isn’t entirely possible. If spending your money on them isn’t bad enough, you might even find out later that your credit score is now lower from what it was before you asked help from these credit repair companies.
Having a bad credit score usually means that you have lesser options whenever you apply for a loan. But with car purchases, a bad credit score means that the car dealer will not be able to offer any add-ons or extras to the deal. A person with a bad credit core can end up paying for less than someone with a good credit score. Try to get a pre-approved car loan so you’ll know about all the terms noted with the purchase. This will make it less for the car dealer to add anything to the price tag.
The downside to use of GPS in car
With breakthrough innovations being introduced by automobile companies every year world over aimed at making cars more comfortable, safer, and more easily operated, modern cars come loaded with latest advances in automobile engineering. GPS is one such feature that is becoming quite popular these days helping in pinpointing the exact location of the vehicle in which the device is fitted as well as providing information on the best travel route to a destination based on an in-built digital map with which the device is linked.
However, every new technology that is useful has a downside, and GPS is no exception. With the use of this device in your car, what is at stake is your privacy. The details like where you traveled, what route you followed at any point of time when you took your car out of your garage go into a database that can be accessed by others without much difficulty, which you may not like. A monitor in front of your eyes with tones of information about your position and the travel route to your destination brings the possibility of the hazard of reduced concentration while driving. The more elaborate front panel the vehicle has, the less reaction time you will have left at your disposal to steer yourself safely out of a sudden difficult situation arising on the road ahead of you.
If you want to use this technology to track the location of your teenager son or daughter taking your car, then the technology can appear to be of great advantage, but a smart kid can easily ditch the car leaving it at a place within the safe zone limit placed by their parents and then cross this boundary without the knowledge of their parents. You will also have to be willing to shell out more for the vehicle as the system does not come cheap, increasing not only the base price of the car but other related expenses such as registration and insurance charges.
Low mileage used cars vs New Cars
Most people with a limited budget are faced with the dilemma of choosing between a low mileage used car and a new car, and it is one of the most important decisions they have to make that determines their level of satisfaction with the car they ultimately buy. Looking at the size of the used car market in Australia, it is quite clear that this is not an easy decision to make as more and more people are considering used cars as viable alternative to new cars. Both have their own shares of advantages and disadvantages, and these factors must be considered before you go ahead with your purchase. 
A new car losses its value very fast because of fast depreciation in the first few years. In fact, a new car looses a substantial value the moment it moves out of the showroom and therefore it make sense to go for a low mileage used car whose value reflects the true worth of the car excluding the price you pay for the only fact that it is a new product. You also have to pay less on insurance charges as it depends on the value of the car. You also get a wide choice if you are buying a used car because you can easily purchase an old model of a car that is no longer being promoted by the company as well as the used version of a high end car in your limited budget.
Still, there are certain advantages of buying a new car that you cannot overlook. A new car comes loaded with the latest gizmos and if your budget permits, you can get it custom made as per your preferences. Because of its valid warranty period, the car is secured in the first few years against any major problem arising out of some manufacturing defect resulting in less maintenance cost. Car manufacturers are constantly working on making the new models of the car more fuel efficient than earlier versions and therefore your new car is most likely going to have a cheaper running cost as compared to a used old model version. It is also much easier getting cheap finance for a new car as compared to an old car.
If you decide to go for a used low mileage car, you have to be careful about the condition of the car and you may be fooled by the aggressive marketing strategy of the seller.
Company car or allowance? Weigh your options before purchasing.
There are several advantages with working for a company, as opposed to say, being a freelancer. Some of the obvious perks include getting a regular income (be it weekly, bi-monthly, or monthly), receiving medical insurance, and (possibly) getting bonuses or commissions. There is also the opportunity to get certain allowances, such as clothing, travel, and car. If you are offered a company car while given the option to have a car allowance (so you can pick your own car or vehicle), which should you choose? Which option would allow you to have more savings and ultimately, would be better for your situation?
It is always best to explore your options before making a decision. Getting the company car definitely sounds like a good idea. Usually, companies that offer a company car to its employees also give out a small allowance for fuel or allow employees to have fuel costs reimbursed when they claim business mileage. Bigger companies might also shoulder the maintenance cost of the car, except in situations when the driver (or the employee, whichever may be the case) is obviously the one at fault.
It seems like getting the company car is a better option when you consider additional costs that owning a car or a vehicle entails. As an employee, you are not responsible in paying for any unexpected bills. For instance, company cars also come with car insurance. Since the company already pays for this, you don’t have to worry about any monthly payment or other insurance-related concerns (except of course, when you are involved in an accident). You also don’t have to worry about the car during times of depreciation or model recall. Since the car belongs to the company, it is up to them to decide whether they would change the car for a newer model. Companies often opt for a newer model since maintaining an older model (or vintage vehicles) are costly, especially since spare sparts are not always available in every car shop.
Also, companies would like to give a good first impression to their clients and customers, so they often choose the classier models among the newer ones. This is also another good reason to go for the company car option. Given your monthly salary and your monthly expenses (and possibly, in addition to the status of your savings account), you may not be able to afford the same model as the company car. Of course, it is also possible that the model of the company car doesn’t suit your family’s needs. In the end, only you will benefit from owning the vehicle and you’d still have to spend for the transport needs of your family.
However, keep in mind that the company car, like a car allowance, is also taxable. Usually, this amount is not a problem but it can be if the company doesn’t offer fuel benefits. Weigh your options first before making a decision. Don’t hesitate to ask questions from your employer. This way, you can calculate all your possible expenses and come up with rough estimates for each option. Only then will you able to make the correct decision that suits your needs and at the same time, allows you to perform your duties as an employee.
Australia Testing Vehicle Speed-Limiting Devices
According to the Australian Bureau of Statistics, deaths related to motor vehicle crash in New South Wales, Australia was recorded at 370. This number is considerably lower than those recorded in the previous years. New South Wales is considered as the third largest among all the cities in Australia. It also has the most people, with its residents accounting for 32% of the total Australian population. So it is not surprising that the government has taken an initiative to make the roads safer for all residents. Laws were passed to ensure that all drivers will always wear seat belts or use helmets, whichever is applicable to them. The traffic law enforcement and the designs of roads and vehicles were also improved. In addition, the government increased people’s awareness on road safety and regulations related to such.
There has been a new addition to such efforts to lower the number of motor vehicle crash-related deaths, as the government puts intelligent speed adaptation (ISA) units to a test. These units are placed on a vehicle’s dashboard and works with a computer that checks the vehicle’s speed. The device uses the global positioning system (GPS) to check the speed limit in the area where the vehicle is located. The speed limits in New South Wales have already been recorded into a GPS receiver. Whenever the vehicle goes beyond the speed limit in the area, the device would make a sound to inform the driver about it. When this warning is ignored, the device would limit the supply offuel and as a result, force the vehicle to slow down.
When the ISA units prove to be successful in preventing the occurrence of speeding in the roads of New South Wales, the government would lose around $80 million from speeding fines. Although it seems that the use of ISA units would also save the government from spending billions on any speed-related fatalities and injuries. Since the ISA units will take care of speed-related incidents, the police can now concentrate on other motor-related occurrences such as beating the red light, road rage, hit-and-run, and other related incidents. The police can also monitor any motorists who may be doing other things, like talking on phone or putting on make-up, while they are driving.