Insurance
Drivers are charged high auto insurance premiums only if they possess the high-risk factors. Thus, a sports car driver is has a high probability of paying high premiums while a sedan driver will be required to pay the average or lower premium rate. Logically, insurance companies determine premium rates basing on the cars features: color, model, security and others.
The Highway Loss Data Institute (HLDI), an organization dedicated to provide auto insurance loss statistics and studies, provide regular reports about losses under six insurance Coverages namely collision, property damage, medical, personal injury protection (PIP), bodily injury liability, and comprehensive. HLDI is the country’s main source of insurance loss information and is trusted by most card dealers, auto insurance agents and drivers. Their reports include the main factors used as bases for auto insurance agents to determine the premium ratings.
As of 2009, luxury and sports cars incur the highest collision coverage losses even though micro and small two-door cars have the highest collision claims. SUV’s has the highest property damage losses due to its numerous claims and losses per claim, small sports cars have the lowest overall loss. Medical losses are higher in small cars while large vehicles such as the pickups have lesser medical losses. Small sports cars have the lowest bodily injury liability losses while small two-door cars have the highest in the category. Very large pickups have the lowest overall personal injury protection loss and small four-door cars have the highest. Large luxury SUVs and pickups have the highest comprehensive loss mainly because of theft while small two-door and four-door cars have the lowest.
The trends indicate that small cars tend to get more exposed to danger on the roads than large cars. Expensive or luxury cars and large vehicles are more prone to theft than small cars. They also amount to high collision losses due to the high cost of damage repairs. Small cars are produce higher crash impacts than large cars causing its medical losses to be higher than the rest of cars. Older models have the least theft claims and new models, especially the expensive ones, have very high theft claims.
Auto insurance policy prices are equated with risks. The higher the claims frequency and losses, the higher will the insurance companies price their policies.
With these pieces of information provided, car insurance issuers will know how they can charge for their premiums. They have to accept enough premiums that will make their costs lesser or at breakeven when car owners will make their claim. On the other hand, knowing these statistics would enable the car drivers to be careful in purchasing their cars and choosing their policies. Though these data seems complex, most drivers choose the cars that fits into their budget and that are suitable.
Car insurance policy rates can cause headache especially if you are not financially ready to handle such expenses. However you cannot run away from availing one unless you wanted to go to jail or pay hefty of fines or if it’s okay for you to have your driver’s license be confiscated.
Car insurance policy rate would really cost you several dollars but luckily, with today’s stiff competition among car insurance providers, finding the best deal of the coverage you like is made possible.
Now that you have a lot of choice there is no reason for you not to get the best among the rest. If you are thinking about where to get time to do comparison shopping that is not a thing to worry about nowadays. You need not to seek for your best auto insurance deal manually. Visiting auto insurance companies’ offices one by one to get information is not the thing you must do to get into your goal. Even making phone calls for several insurance companies will not be necessary. Comparison is made a lot easier and faster now. Instant Car Insurance Quotes is made really instant for you through the internet.
If you are serious in getting quality coverage at the most friendly rate you will never make business with the first deal that comes your way. By doing do you are just defeating the main purpose of comparison shopping. Why you do comparison shopping by the way? It is simply because you want the best deal and that you will only have it once you’ve searched enough. You compare because you know you have vast options.
Get the maximum protection you need at the most favorable price by comparing instant car insurance quotes. First thing you might want to look at is the insurance company. The credibility and reliability of an insurance provider can be checked through the internet as well. The credit rating of a car insurance company can be searched via internet. Take a look also at the company’s history, payment records and claims settlement records of the insurance company.
Since you are doing a comparison shopping you are then aimed at comparing. Compare policies offering the same coverage. Depending on your needs and your state requirements, assess the types of coverage different companies are offering. Seek for discounts as well. Ask for any reward system the company has and check if you can qualify to any of those.
In no time you will get the coverage you want at the price you know you can handle.
Article source: http://www.performance-car-guide.co.uk/car-buying.html
Decisions, decisions, decisions:
This car buying guide has all you need to help with ypu with getting the right car. Buying a car can be a tricky ordeal – which car?, what’s the running cost?, where to buy it from?, who to trust?, what to look out for? am I buying a lemon or a bargain?…and the list goes on. Read our step by step article below and learn how to be a
smarter car buyer.
Choosing A Car: 1.
Firstly – how much money do you want/have to spend on your car buying quest? Do you have a list of
that needs to be taken into account?. Will you require
Can you afford to it? Car buying is more than just buying a car, no point buying a car you can’t afford to run.
With regards to modifications,
consider whether you want to spend money on modifying a car or buying a car already modified, just be careful if you opt for the second one, although it may be cheaper, you could end up buying a car that’s just had bits thrown together
haphazardly (read the and guides). Also consider whether you’ll be better off just spending all of your car money on a better car to begin with.
2.
Second thing to consider is what type of car are you looking for?:
Just consider what you want out of your car. Even if you’re just after a good performance car, take some time to consider your options. Car buying really is a
personal choice/preference,
but one that will help you narrow the search down and one that you will have to consider eventually.
3.
Also, read
reviews to find out what other owners or motoring journalist think of that particular car, but always remember, it’s a personal choice and most people will write about a problem or something they don’t like (have a moan) in a personal review. Also check out what people say in forums or visit an
(some car owners sites have a car buying guide just for that make and model). And of course have a look at the
section. All these sites can help you find out what the cars weak areas are and what to look out for in your car buying quest.
Things To Help Make Your Car Buying Choice Easier: Insurance cost (what group is it – get a quote, It’s free and quick on line. See my
Practicality and weather conditions where you live (no point in having a daily 30+year old classic sports car, if you intend to drive it in rainy cold conditions for most of it’s life and/or you don’t have a garage (it just wont workout, believe me)
Can you afford it? See my
Oh and finally will it upset your partner?
One Other Thing To Consider – A Second Car: Keeping costs down when owning a performance car can be difficult, especially at todays
petrol prices and mileages you tend to have to do to get to work. One way round this, is to own
2 cars. This may sound strange, but if you buy a
cheaper to run daily driver (turbo diesel for example) and run your pride and joy on a limited mileage/classic car insurance policy,
it can work out quite surprisingly lower than having an average performance car only.
Benefits include – when money is short or something needs fixing, you can take it off the road and save some money by just driving your diesel car about for a while, also you don’t have to worry about putting too many miles on your pride and joy. You don’t have to make such a big compromise in your car buying choice. Work it out, find out how many miles you do and the rough running costs involved (fuel, tax, mot, insurance and maintenance) and see if it works out for you, you may be surprised how running a 50+mpg diesel as a daily driver can offset the costs.
Are You Planning On Buying?
A New Car: The Advantages: You get a new car, mostly peace of mind, generally easy to do
The Disadvantages: A Used Car: The Advantages: The Disadvantages: Where To Buy From: Once you’ve done your homework and got a short list (if there’s such a thing?), it’s time to think about where you can do your car buying:
Franchised Dealer: Dealers who sell cars for a certain manufacturer. They’re generally more expensive but also have generally good after sales support.
Independent Dealer: They basically just sell most types of cars and have no affiliation with a certain make. A little cheaper than a franchise dealer, but with less after sales support. Many
specialists are independent dealers.
Home Dealer: I’ve added this one, as there seems to be more and more people selling cars from home.
Car brokers: Basically you get someone else to look for your car. Unless you’ve got a few extra pound notes lying around, why do this? – car buying for the rich?
Car Supermarket: They sell large amounts of cars on a site and are generally slightly cheaper than the other dealers, but you will not get the same service as from the above 2 dealerships, plus they sell mainly
mainstream type cars.
Import your car yourself: This can often work out cheaper. You
can get right hand drive cars from many EU countries (but you will have to wait for it though)- (also be aware that a foreign franchise dealer does not have to sell to you). UK garages/dealers can usually service them, and the
warranties are normally reduced.
Don’t forget customs and exise duty and if the car is less than 6 months old the dreaded VAT.
A broker may be used, watch the delivery cost.
There are two types of imports: EU imports i.e., cars bought from other EU countries , all now have same safety standards due to the European Whole Vehicle Type Approval. Making car buying from the EU a safer option for the car buyer nowadays. Check the specs though. If a car doesn’t have Vehicle Type Approval, then you will have to get a Single Vehicle Approval (SVA) – like a super-MOT carried out on it (this applies to all import cars).
Grey imports i.e. – cars bought from non EU countries like Japan. Cheaper than UK versions, can be hard to distinguish, most will have a 2 row number plate recess at the rear of the car – see the
Ensure that they have SVA type approval – should have a certificate. Generally unknown history prior to UK. Insurance specialist mostly and generally more expensive to insure. May not be as safe as EU cars. Any history prior to the UK will be in a foreign language. Uncertain Mileage. Spec may be different than EU/UK. Check local dealers/garages/parts stores for support. Selling it on may be difficult. Same goes for american imports, although you may not need to pay VAT on classic cars.
Car Auctions: Car buying at its cheapest, however these cars may require either a little or a lot of work, where duff cars and bargains alike can be found, be
warned.
Private Sale: Potential for haggling and getting a good deal, must know what you’re looking at though, as most cars are
sold as seen.
Very little car consumer protection.
Internet: And of course there’s the internet. Both dealers and private sellers are increasingly using the internet to sell their cars, either on their website, dedicated car sales websites or auction sites.
Owner Clubs: One other place to look, are enthusiast owner clubs. Generally well cared for cars, potentially find just what you’re after.
Once You Find A Car: There are a number of things that you should do once you see a car you’re interested in. I’ve listed what I would do in the order I would go about my car buying, although it’s not absolutely the way you may wish to do it yourself.
Handy hint – before ringing a seller, if you can see the registration number on a photo, you can do a quick check on
Autotrader or go to the (opens new window) – go to the vehicle check/enquiry sections. These 2 sites can give you some vehicle details for
free that you may find handy. Also you can check out the
for more details on the year and registration office. But to be absolutely sure, it maybe
advisable to go the whole hog and check the car out for any previous accident damage, outstanding finances or to check if it’s stolen etc and HPI check it.
HPI: Hire Purchase Information – although it says hire purchase, the details you get back are much more than that. For a
basic report a fee of between Ј2-4 can tell you (even by text) if the car is stolen or has any outstanding finance.
For Ј15-25 you can get a complete report – this varies from company to company, but can be very comprehensive, check what you get before paying. If your spending a lot of money when car buying, this is well worth the money. Also the VCAR (Vehicle Condition Alert Register) is used by most companies to tell if a car has been written off, but be aware a car that has been repaired and checked can be removed from this register and placed on what is known as the repaired register.
First phone call to seller: Save yourself time, ask any questions before going down, such as:
Have you got the log book (V5) If there is no paper work,
don’t bother,
Condition – any rust, any thing need doing to it soon, general condition of mechanicals, bodywork etc
HPI certificate (for damage/outstanding finance) – you may want to do this yourself anyway, there are a number of vehicle/data check sites – if a car comes back as having been registered on the HPI register you need to know the following:
Car buying can be a nightmare at the best of times, why not take a look at my
If you’re happy with your phone call: Be prepared – take a torch, something to kneel or lie on, if you have a magnet take it, you can use it if you suspect filler being used
Best to take a friend with you, two heads are better than one, better if they know a thing or two about cars. Also safer if you’re carrying money around with you and handy if you strike a deal there and then, as they can drive the car or your car back.
Upon arrival (view during the daytime and dry only – obviously), avoid doing the car buying thing in the wet or at night, as this can hide all sorts of problems. Have a very quick look around the car before knocking on the door:
i. Does it look like the car advertised?
ii. What are your first impressions?
iii. Is it what you expected?
If not, you have two choices:
Don’t waste time, make your excuses (you may have to look at a lot of rubbish cars that don’t match the description in your car buying quest
If it’s the first time you’ve looked at this particular model of car and you’re after one of them, have a good look around, learn from the owner of what’s been done, are there any oddities etc with those cars, try to familiarise yourself with the car so you can compare it to the next one, it maybe they’re all like that. Then just say you’ve got some more cars to consider and leave, don’t feel obliged and don’t let your heart rule your head
If you’re happy with your initial look: Log Book (V5) – does it have a watermark? Check that the registration number and address matches the V5 and is that of the seller
MOT certificate, does this have a dealer stamp impression, right registration number?, check the dates
Any service history – cambelt last replaced?
Receipts and any other paperwork – have a look, see if it’s had any work recently and/or any major work. Check the prices on there, you may be shocked at the cost of servicing or repairs/parts of that particular car
Check all paperwork thoroughly (a must do when car buying), especially the VIN (Vehicle Identity Number) on the V5 and MOT certificate and if you can the engine and chassis numbers (mostly located and
stamped Does all the previous MOT’s match the mileage?
While we’re talking about paperwork, if there’s an alarm or a coded radio etc, make sure the codes/certificates are present
Take a look at the It’s up to you to satisfy that the car is genuine and that the seller is the owner. Be warned, don’t make your car buying a dodgy deal, the police can take any stolen car from an unsuspecting buyer even if you have paid for it
Once happy with that, then it’s time to take a closer look at the car:
Look at the bodywork again: Any damage, dents, scratches, repairs, filler, ripples (also check boot floor for hidden crash damage)
Any rust (arches, door bottoms, sills, lower body work and were water can get trapped – spoilers, gullies etc)
Any uneven panels and doors (check they open and close properly), do they lock ok?
Any unmatched colours on the panels, any overspray on the window rubbers, lights, tyres/wheels etc. Could have had damage repaired
Signs of welding, especially along the roof (cut and shut)
Check underneath for: Are the tyres in good condition (inflated, plenty of “even” tread)
Suspension: Push on all four corners of the car (one at a time) to check the suspension. A car should not bounce up and down like a boat on water, once pushed down, it should bounce back up and at most just then return to its normal resting place, although if it has sports suspension, you may get hardly any movement (which is fine if that’s what you’re after)
Interior: Does the interior match the mileage? Check the pedals, gear knob, steering wheel and driver’s seat for signs of excessive wear. Also check if the dashboard has been removed (scratched screws or loose dash surround – may have had it’s odometer clock tampered with)
Look at the engine bay: Check the oil, is it reasonably clean or black as the ace of spade?
Check hoses, fluid levels, wiring, is there signs of fire damage, repairs (rough untidy wiring)
Generally you want to be able to start the engine when it’s cold, so you can see if it starts from cold ok
Start the engine and listen for any clunking, knocking, tapping etc
If you’re unsure perhaps get an RAC/AA or independent vehicle inspection carried out. Or a trusted garage/mechanic friend, but be aware the specialist vehicle inspection companies will have insurance against any unseen faults and a friend/friendly garage mechanic wont
Get in the drivers seat: Check the volt meter reading if fitted (around 12.5-13.5 volts is usual)
Give the throttle a blip, is there any blue or black smoke coming from the exhaust?
Once happy – take it for a spin: Are the brakes ok, not pulling to one side or squealing
Is the handling and steering ok, no vibration or wondering
Does the gears change ok, not notchy or difficult to engage gears
Does the clutch feel ok (put the car in top gear at about 25mph or 2000rpm, floor the pedal, does the revs rise quickly, with little acceleration, if so, the clutch could be slipping)
Does the car generally feel ok?
Take as much time to look around as you need when car buying, if you need to go away and come back, do so, it’s easy to let the heart take over the head, especially if it’s a car you’ve been looking for, for a while
Still happy: Time to haggle. This can be either a pleasant part of car buying or where you feel pressurised into a deal. Have an idea what you want to pay and what work if any needs doing. You should have an idea what the values are for the car you are looking at. The use of silence can be a great way of making the seller feel a little awkward, don’t pay more than you want to, there’s always another car somewhere else. Best to pay with a bankers draft or cheque and get a written receipt of the sale, even if sold as seen
Now go and sort out some insurance, before you smash it into a wall, round a lamp post or into me!
Warranties: A warranty can help in the case of an unexpected fault. However be aware that many have a limited pay out and limit what is covered (you need to check/ask what is and what isn’t covered). If you buy from a dealer you should atleast get a 3 month warranty on a used car and possibly have the option to increase
this. There’s also the option for going to an independent warranty company, which can be taken out for most any car, generally for cars under 10 years old though.
Some warranties, especially those that come with a new car will require the car to be serviced and maintained with the selling dealer/garage to keep the warranty valid.
Hidden mileage – use of steering wheel cover, new gear knob, pedals and seat covers
Home dealers – Now I don’t know if someone selling a car from home is a dealer just because they say so. So you need to be sure when you’re car buying, they are just that. Do they have a genuine business address?, invoices, track record. Make sure it’s not someone trying to sell you a stolen car, as the car wont be in their name or registered at the address they are at.
Be very cautious with this type of dealer Car Buying Fun?:
…or else I’ll be stuck with it
…was going to put “runs excellent” but felt guilty all of a sudden
…damn, that repair I did last week is looking dodgy
…I changed the oil at sometime and checked the washer bottle
…but drives like #@%Ј
…I never had anything fixed, adjusted, or replaced
…doesn’t run, needs some work (well loads really!), lost interest
…doesn’t run, needs some work (well loads really!), lost interest
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