Car Blog

Many Ford vehicles cost less to repair after a collision on average than all other vehicles in their segments, according to a new U.S. government report based in insurance claims database.

This is good news for the pocketbooks of current and future Ford, Lincoln and Mercury owners because auto insurance companies often factor in model-specific claims data in setting premium costs.

The National Highway Traffic Safety Administration (NHTSA) 2010 Relative Collision Insurance Cost Information Booklet shows more Ford, Lincoln and Mercury vehicles lead their segments for the lowest collision insurance cost than any other automaker. The report will be available in all dealerships this spring to help consumers anticipate repair costs that insurers rely on for setting insurance rates.

Ford has 10 segments leaders, including Taurus, Focus and F-Series trucks, from the 2007-2009 model years, more than three times as many as Toyota and Honda combined. The NHTSA ratings based on claim costs data from the Insurance Institute for Highway Safety.

“Vehicle affordability continues to be the most important purchase consideration for car and truck buyers, rivaled only by fuel economy,” said Frederiek Toney, vice president, Ford Customer Service Division. “We design our vehicles to be easier and more affordable to repair because we know this saves our customers money in insurance premiums and repair costs over the long term.”

According to NHTSA, Ford’s 10 segment-leading 2009 model year vehicles include:

– Ford Focus – Small Cars (four-door)
– Ford Taurus – Large Cars (four-door)
– Ford F-150 – Large Pickups (two-door)
– Ford F-150 Super Cab 4WD – Large Pickups (two-door-plus)
– Ford F-250 4WD – Very Large Pickups (two-door)
– Ford F-250 Super Cab – Very Large Pickups (two-door-plus)
– Ford E-350 Econoline wagon – Cargo/Passenger Vans (tied with Chevrolet Express 3500)
– Mercury Grand Marquis – Very Large Cars (four-door)
– Mercury Mariner 4WD – Small SUV
– Lincoln Town Car – Very Large Luxury Cars

Approximately 78 percent of Ford, Lincoln and Mercury models rated at or better than the industry average — nearly double Toyota’s 40 percent (including Scion and Lexus).

Designing to reduce damage

In 2009, Ford opened a Paint and Body Technology Center to leverage the combined expertise of Ford’s repair and safety experts, auto repair technicians and insurance companies to identify design solutions and repair procedures that will lower repair costs.

“If your vehicle costs less to repair, it generally costs less to insure,” said Gerry Bonanni, Ford damageability collision repair senior engineer. “We’re working harder to help reduce insurers’ repair costs by developing more affordable repairs earlier in a vehicle’s development.”

“It’s great that Ford gets insurance industry insight about how to improve repairability of its vehicle designs,” said Mark Woirol, project manager with Allstate Insurance Company’s Tech-Cor Applied Research Center, which works with automakers, insurers and repairers to make cars more damage-resistant and repair methods more cost-efficient. “We’ve never been as involved in an automaker’s product development process as we have since Ford invited us to participate.”

For example, Ford Focus maintained its hold on the top spot in the four-door small car segment thanks in part to a bumper design improvements.

“Ford’s repair-ability experts and safety engineers made the Focus’s bumper bigger and stronger to better protect adjacent components,” said Larry Coan, Ford damageability engineer. “The new technology center will help us build on these leading efforts.”

Higher resale values, fewer warranty repairs

In another key area of vehicle affordability, Ford’s resale values outpaced the industry by rising 23 percent according to the latest National Automobile Dealers Association auction data. The gains resulted from stronger demand for Ford’s new vehicles and improved quality and durability ratings.

“Rising resale values means more money in customers’ pockets when it is time to sell or trade in for a new vehicle,” Toney said. “Combine these savings with lower repair and maintenance costs and better fuel economy, and the cost to own a Ford product drops dramatically over the life of the vehicle.”

Auto insurance is a vital part for every car owner. It is a great place to save money since it comes with many variations and different levels of coverage, including liability, comprehensive, collision, and more. Of course, with all these choices, it can be overwhelming for consumers as they decide to buy car insurance.

There are lots of factors that affect the computation of insurance rates which are beyond any consumer’s control, two of which are age and driving experience. However, one of the most significant rating factors is indeed controllable, and that is the driver’s driving history. An already established fact, drivers who practice road safety will not only lessen the chances of getting themselves into an accident, but will also save money during their insurance process. This is because most auto insurance companies will likely grant discounts and rewards.

When applying for auto insurance, the accumulation of tickets and participation to various accidents would mean a higher risk of loss. This raises a red flag and will directly impact the computation of insurance premiums. Nevertheless, maintaining a clean driving history is not as hard to accomplish. Practicing traffic rules and regulations have been proven to be the most effective way to keep the blemishes off and lowering the rates hugely.

Nearly all traffic accidents recorded are caused by human error or impaired judgment. Over speeding, failure to yield, driving under the influence of drugs or alcohol, driving too closely from another vehicle and trying to race and beat the red light are the most common. Individuals who suffer from swelled car insurance rates do so because they have created a negative impression on their driving records. The good news is that, all of the items cited above can be avoided just by reducing the likelihood of getting involved in such mishaps. Being safe on the road will lead to fewer claims, which will eventually lead to lower premiums in the end.

Source: AutoQuoteNow.com

Drivers can save $500 or more

1. Drive less and earn a discount

If you drive less than 7,500 miles per year, you may qualify for a low-mileage discount on your auto insurance. And, some companies offer a commuter discount if you use public transportation during the week.

2. Don’t use your car for business purposes

Some insurance companies will add a “business use surcharge” or increase your auto insurance premium as your annual mileage increases. But, if you must use your car for business, be sure to tell your company, so that your daily business travel is covered.

3. Increase your deductible

You might save as much as 10 to 15% if you increase your deductible from $250 to $500. But, remember that you’ll be required to pay the larger deductible upfront if you have an accident.

4. Keep an eye on your credit report

Your credit history is one of many “risk factors” that most auto insurance companies evaluate when setting rates, in states where permissible by law. Paying your bills on time and maintaining a solid credit history will help keep your home and auto insurance rates lower.

5. Drive safely

You may be eligible for a price break on your car insurance policy if you have no accidents or traffic violations for a specified period, usually three years. Even a single speeding ticket can increase your auto insurance rates 5 to 10% depending on your state.

6. Buy a low-profile car

Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance vehicles are higher risk because they are common targets for thieves, and statistically, the people who own them tend to drive more recklessly.

7. Move

If you live in a rural community with little crime and traffic congestion, your auto insurance premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident.

8. Keep your car in a garage

Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. And, you may get a slight premium reduction.

9. Install safety or anti-theft devices

Auto Insurance companies offer discounts for anti-lock brakes, automatic seat belts, airbags and more. Car alarms and tracking systems may also get you an insurance discount.

10. Shop around

OK, it might go without saying, but your current auto insurance company might not be the best one for you in the future! We recommend researching your options 30 to 45 days before your current policy is set to renew, especially if you have not shopped recently. Fact: Insurance.com customers reported annual auto insurance savings of $538 a year in April 2009. Your savings may vary.

Source: Insurance.com

The intense debate underway about the future of the American auto industry has generated a lot of discussion about the public’s attitudes.

“Right now, the American people are justifiably very concerned about the state of our economy and an overriding fear for their futures,” said pollster Peter D. Hart. “Polls I conducted in mid-November showed deep concerns about the harmful impacts of the collapse of the U.S. auto industry,” said Hart.

• 90% fear the harm it would do to America’s manufacturing sector.

• 84% of Americans say it would harm the U.S. economy.

• 70% fear the harm it would do to America’s standing in the world.

• 68% worry about the lack of consumer choice for America’s car buyers.

Some pundits have been citing polls by CNN that indicate that a majority of Americans do not favor “a program that would provide them with several billion dollars in assistance.” CNN does responsible and good polling. However, the question which is being touted on the financial loan assistance for the auto industry is not a good evaluation of public opinion or public sentiments.

Their question reads as follows: “QUESTION: The major U.S. auto companies have asked the government for a program that would provide them with several billion dollars in assistance. The auto companies say they may go into bankruptcy without that assistance. Based on what you have read or heard, do you favor or oppose this program?”

The basic flaw with the question is that the respondent must know the program. They don’t, so it is difficult to assume these respondents voicing an opinion are really talking about the legislation or program the congress is voting on.

There is a much more significant finding in this same CNN survey which has not been highly noted nor much discussed. Fully, 15% of the American public — or roughly 18 million households — tell the CNN pollsters that the auto industry going out of business “would immediately affect their families. Additionally, 77% of Americans say that auto bankruptcy would affect them and their families, if not now, sometime in the future it would affect them immediately.”

“This means that one out of six households would have a ‘goodbye and good luck’ sign put on their house. That is 18 million households directly affected. This would be the same as having a dozen Katrinas hit from coast to coast,” said Hart.

Peter Hart stated: “The bottom line is pretty simple — the American public does not want the housing industry to fail, the banks to fail, and they certainly do not want the auto industry to fail. This survey has merit, but the figure that counts most is the one that tells us that 3 in 4 Americans say they will be affected and 18 million American households will be affected immediately.”

Peter D. Hart is the founder of Peter D. Hart Research. He has co-directed the NBC/Wall Street Journal Poll for the last 20 years. His firm has conducted research for hundreds of corporations, government agencies, non-profits, including the automotive industry.

Source: Peter D. Hart Research

What you don’t know about your car insurance policy could be draining your wallet right now. Insure.com, Inc. has revealed 12 factors that may be costing you money.

1. You’ll pay for your friend’s bad driving

If your friend borrows your car and crashes it, you’ll have to file a claim with your insurance company. You’ll have to pay any deductible that applies and your rates could go up as a result of your claim, especially if you have made other recent claims.

2. Your personal property in your car isn’t covered by your auto insurance

Stolen or damaged items like compact discs aren’t covered by your car insurance.

3. You may be entitled to payment for sales tax and registration fees for a new car

Most states require insurers to pay sales taxes on total loss settlements. Some states require the insurer to pay it at the time of loss while other states require it to be paid only if you purchase a replacement vehicle within a certain time period. Make your request for a sales tax reimbursement no matter where you live.

4. You may be entitled to a diminished value claim in some states

Diminished value is based on the idea that any car that has been in an accident, regardless of how well the repairs are done, is worth less than the exact same car that hasn’t been in an accident. However, most states allow car insurers to use policy language that officially disallows diminished value claims.

There’s one way you may be entitled to a diminished value claim: If someone else hits you and you make a damage claim on that person’s insurance. That’s called a third-party claim and it’s possible to get diminished value damages as a third party.

5. You may be able to “stack” your coverage

Stacking uninsured/underinsured motorist coverage means you can collect payment more than once within the same auto policy or across two auto policies. There are two scenarios for stacking: First, if you have multiple cars, you can collect the limit of your UM/UIM policy to cover full payment for damages. Second, if you have more than one policy with UM/UIM coverage, you can make a claim under each policy until all your damages are recovered. Check the language of your policy.

6. Making a claim could increase your car insurance rates, but by how much?

When an insurance company decides to raise your premiums because you make a claim, it doesn’t follow any hard and fast rules; many factors are involved. For example, if you make a claim and have a birthday before renewal time, your birthday might bump you into a higher risk category along with the claim.

Some insurance companies have “accident forgiveness” guidelines. When you buy or renew your policy, ask how to qualify for accident forgiveness.

7. If you don’t drive much, “usage-based” car insurance could save you money

“Usage-based” car insurance allows you to buy coverage based on how much you actually drive. If you don’t drive much, this can save you up to 60 percent on your insurance. Progressive is the first insurance company to offer “pay-as-you-drive” policies through its MyRate program. Your mileage will be measured by a wireless device installed in a car port.

If your insurance company doesn’t offer usage-based coverage, inquire about “low-mileage discounts.”

8. Your credit history may affect your car insurance premium

Car insurers believe that your credit history is an indicator of whether you are going to make a claim, and price your insurance policy accordingly where states allow it.

9. You must officially cancel your insurance policy when you switch insurers

You can cancel your coverage at any time by notifying the company in writing of your intended date of termination. Most consumers assume that if they decide to terminate the policy at the end of the coverage period, they can simply ignore the bill. Insurance companies don’t see it that way. They will send you another bill for the next premium payment, and when you don’t pay it, the company can cancel you for nonpayment, which goes on your credit record.

10. You can wait to add your teenager to your policy until he or she is licensed

In most cases, insurance companies don’t require you to add your teenager to your policy until the teen has his or her driver’s license. The exception may be if you are in a high-risk insurance pool; you may then have to add your child when they receive their permit.

11. Paying in installments will usually increase your overall bill

“Fractional premium” fees are usually charged when you divide your annual premium payment into installments rather than pay for a year of coverage all at once. It can be as little as a few dollars per payment, but the more you break it down, the more it adds up. When you apply for the policy, ask what the fees are for paying in installments. If you can, pay your annual premium all at once.

12. Your car model affects your premium, but by how much?

Auto insurers have a premium-rating system for every car model, usually based on “Vehicle Series Ratings” (VSRs) received from the Insurance Services Office (ISO). This rating indicates how comparatively expensive your vehicle should be to insure. Factors include susceptibility to theft and typical claims losses for the vehicle.

If you are shopping for a new car, contact your insurance company and ask about the premium difference among the cars you are considering.

Source: Insure.com, Inc.