http://www.allstate.com/insurance-industry-news/auto-insurance-news.aspx 60 en-us http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-to-launch-navigation-app-lessen-focus-on-in-car-console-800767052.aspx One of the basic problems some automakers have dealt with in recent years is that the technology they put inside new cars can quickly become outdated as the systems continue to evolve.

The problem is particularly prevalent with in-car navigation units, since the continued evolution of GPS systems and similar technologies has left past models behind. General Motors is looking to avoid this issue by abandoning in-car navigation consoles within some of its new models.

Starting with select 2013 Chevrolet Spark and Sonic models this year, car buyers will be able to download a mobile application to their cellphones which will be capable of broadcasting turn-by-turn directions through the cars' MyLink system, according to USA Today*. The system will essentially replace the in-car navigation console.

The app itself will cost just $50.

Price and updates are the keys

The high cost of the in-car systems—which can range between $1,000 and $2,000, according to GM officials—is one of the main factors behind the changes. Omitting it will allow the company to lower its list price for the vehicles and specifically target the lower end of the market with its smaller Spark and Sonic models, which already offer great gas mileage.

The application, which is called GoGoLink, can also be updated free, which adds to its utility. That is a sharp difference from current systems.

"Instead of having CDs that you have to update with map data, it's all on your phone," Sara LeBlanc, GM's global infotainment program, told the paper. "If you have an embedded navigation, you have to pay money to get those maps updated."

The Spark will go on sale this summer, according to USA Today, while the Sonic will hit showrooms this fall.

Potential for driver distraction remains

However, it is unclear if the shift toward the increased use of personal cell phones behind the wheel will have any other consequences, given the continued push on many fronts toward a reduction in the use of in-car electronics.

Some experts may question whether encouraging people to use their phones for navigation while driving will also push them to use the devices for text messaging or other purposes behind the wheel.

*according to USA Today on March 29, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-to-launch-navigation-app-lessen-focus-on-in-car-console-800767052.aspx Wed, 02 May 2012 16:17:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-car-transaction-prices-peak-according-to-study-800765605.aspx A recent study suggests that the prices of new cars are at some of their highest levels in recent memory.

According to car pricing website TrueCar.com*, the average transaction price for light vehicles in the United States in March was nearly $30,750. That's 7 percent ahead of the average in March 2011, or what translates to roughly $1,944. On a monthly basis, transaction prices rose 0.5 percent or $143.

Jesse Toprak, industry and insights vice president at TrueCar.com, said this bodes well for automakers, suggesting that they've hit the right balance between supply and demand.

"The auto manufacturers have finally found their sweet spot, with the production of vehicles meeting the demand of consumers, keeping incentives to a minimum," said Toprak. "This led to the highest transaction prices in the industry in March, along with record highs for Chrysler, General Motors, Hyundai/Kia and Nissan."

Hyundai/Kia logs most significant jump in transaction prices

Some of the brands that saw the biggest increase in transaction prices were Hyundai/Kia and Nissan, up more than 9 and 7 percent, respectively, on a monthly basis. Chrysler logged the biggest increase among American carmakers, as transaction prices jumped just over 6 percent to $29,842. Prices for Ford and General Motors both averaged more than $30,000, but the percentage change was just 4 and 3.4 percent, respectively.

Meanwhile, incentives for light-vehicles trended downward in March, dropping by $43 to $2,440 year-over-year and $36 from the previous month.

Mazda3 Touring offers best fuel-boosting package

While incentives are offered to encourage more people to purchase a vehicle, automakers also offer packages that car buyers can purchase to make their ride more enjoyable. Some of these offers include fuel economy features that help a vehicle burn less fuel and get more mileage.

However, a separate report that was also conducted by TrueCar.com** found that how cost-effective these fuel economy packages are often depends on the vehicle that's being purchased.

For instance, the automotive information firm found that the Mazda3 Touring with SkyActiv offers the best value for consumers, breaking even on their purchase soon after taking it home. For other vehicles, however, it often took years before the fuel economy package paid for itself in added fuel efficiency. The Chevrolet Sonic took nearly three years to pay off the premium for its Ecotec package and five years for the Ford F-150 with EcoBoost.

"The price of gas has consumers thinking about fuel economy but there's a financial investment involved with most of these fuel—saving package," said Toprak. "It's important to compare the improvements in fuel economy and the extra costs of the package before purchasing a new vehicle."

*according to TrueCar.com on April 3, 2012
**according to TrueCar.com on April 12, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-car-transaction-prices-peak-according-to-study-800765605.aspx Tue, 01 May 2012 11:43:30 http://www.allstate.com/insurance-industry-news/auto-insurance-news/driverless-cars-may-be-coming-but-insurers-say-not-for-a-while-800765603.aspx While state-of-the-art technology has increased car safety and comfort, it hasn't developed to a point where they'll be able to drive themselves.

Or has it?

As the Chicago Sun-Times* recently reported, the notion of self-driving cars is not just an idea, but a reality. Google, for example, has put driverless vehicles to the test in California, and Nevada's governor recently sat in the passenger seat when he went for a test drive with no one behind the wheel.

Even though some auto experts and technology gurus say driverless cars are not a matter of if but when, some auto insurance companies are trying to figure out how they'll be insured. Representatives for several nationally recognized insurance companies said they've investigated the possibility, which Wired magazine ran as a cover story in a recent issue. The magazine reported that virtually every automaker today has at the very least broached the topic.

Cars becoming increasingly automated

While this may come as a surprise to even the most devoted automotive enthusiast, industry insiders say automation has been a growing trend for a while now, the Sun-Times reports. For instance, many of today's vehicles are outfitted with electronic stability control that can automatically apply the brakes when it senses the vehicle is sliding or out of control. Collision warning systems use radar technology to jam on the brakes to prevent an accident. And cruise control has become more advanced, as the feature not only maintains a certain speed but can increase or decrease how quickly a car is moving depending on the flow of traffic.

"It's a pretty high level of automation," David Zuby, chief research officer for the Insurance Institute for Highway Safety, told the Sun-Times. "It won’t be too long before a manufacturer comes out with a system that is basically autopilot for the highway."

Others, however, aren't so sure driverless vehicles will be hitting the streets any time soon. The Sun-Times reports that several insurance companies haven't looked into the matter, believing that fully automated vehicles are decades away from being realized.

'Technology has to be 100 percent,' says expert

And the biggest issue that could hold things up is the technology needing to be flawless in order to be utilized.

"The reliability of the technology has to be 100 percent," said insurance expert Bill Windsor. "It’s not acceptable to have one error, because that could mean somebody’s life, so I think they have a long way to go before they can prove that the reliability is at that point."

Other potential conflicts Windsor noted are out-of-date satellite maps that robot cars may rely on to work.

*according to the Chicago Sun-Times on April 4, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/driverless-cars-may-be-coming-but-insurers-say-not-for-a-while-800765603.aspx Tue, 01 May 2012 11:39:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/current-car-connectivity-leaves-some-people-wanting-800762919.aspx Automakers indicate that they have had to walk a fine line between not contributing to distracted driving and equipping new cars with the type of technologies that car buyers are increasingly demanding—namely interactive systems that are smartphone and mobile device compatible.

However, in automakers' haste to make these technologies available, they often prove to be less than reliable for motorists using them. Roger Lanctot, a senior analyst at technology research firm Strategy Analytics, elaborated on automakers' plight.

"It's kind of a mess," Lanctot told Popular Mechanics*. "Because all of these systems are proprietary, it's expensive to deploy content app by app. They are also all brand-new, and they all work differently, so you have usability issues and glitches galore."

Sync saddled as slow, glitch-prone

Ford is one of the automakers that has entered the connectivity market fray, as it rolled out the program Sync with MyFord Touch, which is available as an added feature for all of Ford's models. Its capabilities include recognizing voice commands, reading text messages aloud, GPS compatibility that offers turn-by-turn navigation and hands-free calling technology. However, despite its variety of usages, it has been roundly criticized by technology experts and consumer product review companies as being slow and confusing to operate.

MirrorLink has proven to be successful

Hoping to make vehicle and mobile-based connectivity seamless, cellphone company Nokia has developed a system called MirrorLink. When a phone is connected to a vehicle's infotainment system, everything that is on the phone's screen can be seen on the vehicle's dashboard, Popular Mechanics reports. Toyota and General Motors are among the carmakers that could start integrating similar technology into various models within the next few years, according to Lanctot.

While Nokia's product may help resolve car connectivity issues, Popular Mechanics says it may contribute to driver distraction. As a result, automakers will likely limit which apps and functions are allowed to appear on a dashboard so that drivers are not taken away from the primary task at hand—driving—at the cost of auto safety.

Tech expert: MirrorLink band-aid to larger problem

Furthermore, according to technology expert Mike Hichme, suggestions that MirrorLink will be the answer to automakers' problems are premature.

"[MirrorLink] is a feature; that's not the solution," said Hichme.

Instead of employing a quick fix, Hichme says automakers will need to design devices of their own, such as customized radios. When they will be produced is in question, however, which will only complicate matters further for automakers in their attempts to satisfy customers and safety officials.

*according to Popular Mechanics on March 27, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/current-car-connectivity-leaves-some-people-wanting-800762919.aspx Fri, 27 Apr 2012 11:53:42 http://www.allstate.com/insurance-industry-news/auto-insurance-news/turbocharging-becomes-popular-way-to-boost-fuel-economy-800758280.aspx Gas prices across the United States are hovering near 2008 highs of nearly $4 per gallon, and pain at the pump has prompted many Americans to rethink their auto choices. Some are purchasing new fuel-efficient vehicles, while others are turning to carpooling and public transportation to save money on gas. However, some are also turning to a lesser-known strategy to lower their pain at the pump: turbocharged vehicles.

Turbochargers are typically associated with auto racing and high-performance vehicles, but many money-savvy adults are adopting this type of technology to help them save money on gasoline, according to AOL Autos*. Big-name automakers, such as Chevrolet, Ford and Hyundai have all unveiled consumer cars, trucks and SUVs that have turbocharged engines as a way of catering to a new batch of car shoppers that are focused on performance and fuel-economy, rather than size or features.

Turbos function by pushing more air into the engine, which gives it more power to accelerate. In doing so, automakers can replace traditionally large and gas-guzzling engines with smaller ones connected to a turbocharger, which allows the car to run more powerfully while using less fuel, AOL Autos explains.

Making the decision to purchase a turbocharged vehicle

Some drivers may have reservations about purchasing these types of vehicles because they are unaware of the benefits and drawbacks. Many car shoppers who purchase these types of vehicles do so because their fuel economy improves and they do not have to give up their cars' driving power to save money on gas. However, because turbocharged engines require more parts than traditional engines, the costs are typically passed on to the consumer, who may pay more for this type of vehicle.

Many automakers are now manufacturing vehicles with turbocharged engines, which may allow shoppers to compare different prices and features to find the model that works best for them.

In addition, high gas prices have also prompted automakers to unveil new energy-efficient models, which are supposed to make up a larger percentage of vehicles on the road in the coming years. While prices for hybrid and electric cars still remain higher than most gas-powered vehicles, experts say that a lower dependence on gas or a break altogether from fuel prices will translate into higher savings for drivers.

A recent Associated Press** article highlighted the growing demand for fuel-efficient vehicles that rising gas prices may spark, noting that many auto dealers across the country have already seen more interest in more efficient models. In addition, as more automakers manufacture more fuel-efficient cars, Americans may have more to choose from.

"The American consumer shopping for a new car is seeing the most fuel-efficient lineup of vehicles ever," Jesse Toprak, TrueCar.com vice president of market intelligence told the AP.

*according to AOL Autos on March 14, 2012
**according to the Associated Press on March 15, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/turbocharging-becomes-popular-way-to-boost-fuel-economy-800758280.aspx Sun, 22 Apr 2012 17:32:29 http://www.allstate.com/insurance-industry-news/auto-insurance-news/flex-fuel-legislation-stirs-controversy-among-several-groups-800758278.aspx Several pieces of legislation have been passed as of late to wean drivers off their dependence on oil and safeguard the environment from the harmful effects of carbon gas emissions. However, some laws have drawn more support than others, as evidenced by the growing opposition to a controversial bill that was introduced in September 2011.

The Open Fuel Standards Act of 2011 would require 80 percent of gas-powered vehicles to be compatible with ethanol and methanol fuels by 2018. However, the legislation, which was drafted by Washington Senator Maria Cantwell and Indiana Senator Richard Lugar, has sparked unexpected debate among several groups, ranging from environmentalists and automakers to government agencies, according to the New York Times*.

Leading the opposition to this bill are automakers, environmental activists, the U.S. Chamber of Commerce, the Competitive Enterprise Institute and the American Meat Institute, which argue that the legislation is unnecessary since Americans already have the option of purchasing flex-fuel vehicles, the Times explains. In a letter to the Senate and House majority leaders, the opponents also noted that implementing this policy would have a negative effect on the industry overall.

"[The amendment is] a misguided consumer mandate that will lead to unintended consequences on vehicle manufacturers, the supply chain and emerging technologies," they wrote, according to the Times.

Support for the amendment

Supporters of the legislation, which include the United States Security Council, say the amendment will not only help diminish Americans' reliance on foreign oil, but also help cash-strapped households save money on gasoline, which has spiked to nearly $4 per gallon.

Many automakers have responded to rising frustration with high gas prices by manufacturing more fuel-efficient vehicles, rather than large, gas-guzzling trucks and SUVs. A recent Associated Press** report reveals gas prices are expected to hit record levels in the coming months, and are expected to break the July 2008 record of $4.11 per gallon. As a result of gas price volatility and Americans' new focus on smaller, fuel-efficient models, it is likely that automakers will continue to build more cars that offer better fuel economies. Because of this new shift in auto manufacturing, opponents of the flex-fuel amendment say that Americans have plenty of fuel-efficient vehicles to choose from currently, and argue that the legislation goes too far.


*according to the New York Times on March 1, 2012
**according to The Associated Press on March 14, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/flex-fuel-legislation-stirs-controversy-among-several-groups-800758278.aspx Sun, 22 Apr 2012 17:25:38 http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-automakers-try-to-catch-up-with-mobile-technology-800758272.aspx Most Americans rely more on technology today to conduct basic functions and transactions than they did in years prior. Many adults now bank and shop with their mobile devices, while others connect to their work emails and social networking websites. Auto technology has become more advanced in recent years as well, with built-in GPS systems and auto safety measures.

However, some adults who have become accustomed to being "connected" all the time have prompted a growing demand for new auto technology that allows drivers to access the internet, make phone calls and sync their music while behind the wheel. While some automakers, such as Ford and Toyota, have developed apps and systems that enable drivers to stay connected, many others are trying to strike a balance between offering innovative technology and avoiding distracted driving systems, according to Popular Mechanics*. In addition, some experts say that the complexity of building these "infotainment" systems has made it difficult for automakers to meet the rising demand of today's car buyers.

"It's kind of a mess," Roger Lanctot, Strategy Analytics' senior analyst, told the news source. "Because all of these systems are proprietary, it's expensive to deploy content app by app. They are also all brand-new, and they all work differently, so you have usability issues and glitches galore."

Technology issues

Ford's MyTouch system is currently one of the most comprehensive infotainment features available in vehicles, with drivers having the capability to make hands-free phone calls, read text messages aloud, provide navigation instructions, and access Pandora, the news source explains. However, many drivers deemed the feature too sluggish.

Automakers are now seeking new ways to keep up with the constantly evolving tide of smartphone technology, but experts say that compatibility development systems are still in the works. Currently, many automakers, including Toyota and General Motors, are exploring MirrorLink systems, that turn a car's dashboard into the display of the driver's smartphone screen, if the mobile phone is MirrorLink capable, the news source explains. However, the technology has been criticized by some for serving as another type of driver distraction.
*according to the Popular Mechanics on March 27, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-automakers-try-to-catch-up-with-mobile-technology-800758272.aspx Sun, 22 Apr 2012 17:04:57 http://www.allstate.com/insurance-industry-news/auto-insurance-news/bi-fuel-pickup-trucks-to-hit-market-later-this-year-800750358.aspx Individuals who are looking for energy efficient cars may be heartened by General Motors' announcement of two bi-fuel pickup trucks scheduled to reach the market later this year.

According to GM*, the Chevrolet Silverado and GMC Sierra 2500 HD will hit showroom floors in late 2012, but dealers have already begun taking orders from consumers buying cars.

Both of the vehicles are capable of running on compressed natural gas, as the Vortec 6.0 liter V8 engines allow them to transition from CNG to gasoline.

"The bi-fuel Chevy Silverado and GMC Sierra provide customers with choices in advanced propulsion technology, and because CNG is a clean-burning, domestically produced fuel, it has wide appeal," said Ed Peper, GM Fleet and Commercial Operations general manager. "The addition of a full-size bi-fuel pickup truck to GM’s fleet portfolio is another milestone in putting the customer first in everything we do—by offering great products, innovative solutions and a great customer experience."

Joyce Mattman, director of GM's Commercial Product and Specialty Vehicles division, noted that the trucks are equipped with an engine that is specifically designed for CNG fuel, which will help set business owners' and consumers' minds at ease about emissions and fuel costs.

Honda offers CNG-ready vehicle

While GM is entering the CNG market, they are not the first carmaker to do so. CNGnow** notes that at present, the only natural gas light-duty vehicle that is manufactured in the U.S. is the Honda Civic GX. Toyota also announced plans for a CNG-ready Camry at the Los Angeles Auto Show in November 2008, but any further plans on production have yet to be announced.

The source notes that among the states, CNG fuel for vehicles is used most often in California New York and Utah, with more than 5,000 CNG vehicles on the roads in the Beehive State. In addition, other states have made tax incentives available to encourage more people to buy these types of cars.

However, people do not necessarily have to buy a CNG-ready vehicle to use natural gas as a fuel source.

Car owners may be able to convert engines for CNG consumption

CNGnow indicates that certified CNG installers will perform engine conversions, but they generally are restricted to vehicles that are new or are nearly new. Once the conversion is installed, the vehicle will be able to run on both CNG and its original fuel source, whether that was diesel or unleaded gasoline.

GM says that its soon-to-be-released bi-fuel trucks are built in Fort Wayne, Indiana, and are then sent to a supplier that installs the CNG bi-fuel delivery and storage system.

*according to GM on March 5, 2012
**according to CNGnow.com on March 28, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/bi-fuel-pickup-trucks-to-hit-market-later-this-year-800750358.aspx Wed, 11 Apr 2012 13:26:01 http://www.allstate.com/insurance-industry-news/auto-insurance-news/march-bookends-strong-auto-sales-quarter-800750217.aspx Many automotive buyers have not been able to turn down new car prices through the first few months of 2012, as a new report indicates car sales have been swift.

According to J.D. Power and Associates' Power Information Network* and LMC Automotive, new-vehicle sales totals in March are projected to continue what has been a streak of sales gains, potentially totaling nearly 1.1 million units. If the assessment proves to be accurate, it would be the highest monthly sales pace since the fall of 2009.

John Humphrey, senior vice president of global automotive operations at J.D. Power, said the high rate of sales has many automotive experts believing that the car industry's worst days have long since passed.

"Each month of strong sales brings with it increased optimism that the pace of growth represents a true recovery for the sector," said Humphrey. "Barring any future shock related to geopolitical issues in the Gulf region and further upward pressure on the price of oil, we believe sales will continue on a solid pace for the balance of the year."

Compact vehicles popular among car buyers

Vehicle purchases have been particularly fruitful in the sub-compact and compact categories. J.D. Power notes that through the first half of March, roughly one-fourth of retail sales in the United States were in these two segments. In addition, they did not stay on dealers' showroom floors for long, as they were on dealer lots for an average of 42 days before being snapped up by a buyer. The industry average is 48 days.

As for overall sales, forecasts are positive, as J.D. Power notes that the first quarter selling rate is nearly 12 million units for retail purchases and more than 14 million units for total light vehicles.

Jeff Schuster, senior vice president of forecasting at LMC, said the active first quarter sets up what could be a record year for automotive purchases.

"The first quarter selling rate has outperformed the annual forecast for sales for the first time since 2008, when the automotive market started to decline," said Schuster. "The vigorous start to 2012 suggests that there is further upside potential if the current pace continues through the summer months."

He added that surging gas prices might be contributing to the positive sales pace, as more people are buying smaller vehicles, which tend to consume less fuel and get better mileage.

*according to J.D. Power and Associates on March 22, 2012

  http://www.allstate.com/insurance-industry-news/auto-insurance-news/march-bookends-strong-auto-sales-quarter-800750217.aspx Wed, 11 Apr 2012 11:11:36 http://www.allstate.com/insurance-industry-news/auto-insurance-news/handle-traffic-tickets-calmly-and-quickly-800748951.aspx The blue flashing lights behind you are never a welcomed surprise, and getting pulled over for traffic violations can ruin a person's day. However, the way you handle yourself when you are speaking with the police officer and in traffic court can have a big impact on your ticket amount and by extension, your auto insurance.

The most simple and important thing to remember is, keep calm and be polite, according to AOL Autos*. Common niceties, such as turning off your radio and not toying with your cellphone, demonstrates that you are open to hearing what the officer has to say. Being rude or aggressive on the other hand, may prompt the officer to write you a ticket. The simple act of being polite and showing respect may get you let off with a warning.

Although being polite is always recommended, it's not an invitation to talk a lot, try to get out of the ticket or explain why you were speeding or driving recklessly. Arguing with the police can not only land you with a surefire ticket, but the more information you provide can give officers more ammunition to use against you if you wind up in court over the infraction, the news source explains. This is especially true if the ticket is your first, in which most officers will reduce the speed you were actually driving to a lesser charge when issuing your ticket. This is equally true if you have several tickets on file, which may slowly begin to have a negative impact on your car insurance premiums.

Going to court

If you end up in court to dispute the charges, it is important that you follow the same behavioral rules when speaking with a judge. Being polite, responding when spoken to, staying calm and mild-mannered, and dressing appropriately can all help your case. In addition, if there are several charges on your record, it can be helpful to request a plea bargain prior to your court date. Accepting a plea may keep you out of court and the lesser charges may help shield you from higher insurance rates.

Lastly, if you are required to pay a ticket, take care of the amount quickly, lest you avoid fines, penalties, credit score damage, and in some states, a warrant out for your arrest.

*according to AOL Autos on March 26, 2012. http://www.allstate.com/insurance-industry-news/auto-insurance-news/handle-traffic-tickets-calmly-and-quickly-800748951.aspx Mon, 09 Apr 2012 17:28:14 http://www.allstate.com/insurance-industry-news/auto-insurance-news/president-obama-promises-to-buy-chevy-volt-800747257.aspx Once he leaves 1600 Pennsylvania Avenue and enters the world outside the Oval Office, President Barack Obama has pledged to purchase a Chevy Volt when it comes time to buy a new car.

During the United Auto Workers Conference* that was held at the Washington Marriott Wardman Park on February 28, President Obama addressed the state of the automobile industry and how far it's come since 2008, when the industry was at a crossroads.

"Four hundred thousand jobs across this industry vanished the year before I took office," said Obama. "And then as the financial crisis hit with its full force, America faced a hard and once unimaginable reality, two of the Big 3 automakers—GM and Chrysler—were on the brink of liquidation."

Obama: 'GM is back on top'

He added that thanks to the financial bailout package provided by the government, combined with restructuring efforts employed by automakers, the car industry has recovered, with General Motors re-establishing itself as the world's leading carmaker.

"GM is back on top as the number-one automaker in the world—highest profits in its 100-year history," said Obama. "Chrysler is growing faster in America than any other car company. Ford is investing billions in American plants, American factories—plans to bring thousands of jobs back to America.

As for how the future of the automotive industry will turn out, Obama said fuel-efficient vehicles could play a significant role.

"The most high-tech, fuel-efficient, good-looking cars in the world are once again designed and engineered and forged and built—not in Europe, not in Asia—right here in the United States of America," said Obama.

He added that he has witnessed how fuel-efficient vehicles are built and was so impressed with the process, he is confident he will buy one for himself.

"I got to get inside a brand-new Chevy Volt fresh off the line—even though Secret Service wouldn't let me drive it," he quipped. “But I liked sitting in it. It was nice. I'll bet it drives real good. And five years from now when I’m not President anymore, I’ll buy one and drive it myself."

Volt's popularity relatively low

The Chevy Volt has failed to win the approval of many consumers, however, falling far short of sale expectations when it was first introduced in 2010. Sales were further hampered late last year, when it was revealed that several Volts caught fire after undergoing crash testing. After a two-month investigation, the National Highway Traffic Safety Administration and government officials determined there were no inherent defects with the Volt itself. Further, the safety modifications employed by General Motors increased the Volt's safety, even though there have been no reports of real-world crashes that resulted in fires.

To encourage motorists to buy the Volt, some state governments are offering motorists incentives. For instance, in Colorado, GM** notes that car buyers who purchase a Volt may qualify for a state tax credit of up to $6,000 in addition to a federal tax credit of as much as $7,500.

* according to The White House on February 28, 2012
** according to General Motors on March 21, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/president-obama-promises-to-buy-chevy-volt-800747257.aspx Fri, 06 Apr 2012 12:27:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/carmakers-look-to-marketing-experts-to-help-reach-millennial-demographic-800747258.aspx In an effort to reach young consumers, some carmakers are reaching out to various companies in the technology industry and ones that deal with younger consumers which they believe can help them make their models appeal to Millennials, according to Forbes*.

The news source notes that Ford has turned to tech companies in Silicon Valley and General Motors is seeking advice from MTV to aid its own marketing efforts toward Generation Y members.

Interest in cars among Millennials is perceived by baby boomers as weak Forbes notes, which has posed a problem for some car companies trying to attract younger consumers.

With assistance from businesses such as MTV, that gear their marketing schemes entirely at members of Generation Y, the source states seeking advice from these experts could pay dividends for automakers.

MTV Scratch helping GM appeal to younger consumers

GM, which was one of several carmakers to experience financial difficulties at the onset of the recession, turned to MTV Scratch to help them rebrand as a car company for younger buyers, the New York Times** reports.

Specifically, GM asked the company to determine the best method for marketing its brand of Chevrolet models to Millennials. One way in which MTV Scratch helped GM was by identifying what young buyers wanted, which was mostly smaller, more fuel-efficient models.

MTV Scratch executive vice president Ross Martin told the newspaper that automakers such as GM should be aware that they need to keep in touch with what younger consumers' preferences are in order to thrive, as well as understand how to sell to them.

"We tried to teach dealers how to calibrate conversations," Martin told the paper. "Stop trying to be cool and give them the fist pump. They can tell you don't get it."

Dour economy for Millennials a hurdle to car buying

Though increased attention toward Generation Y may help some auto companies, Forbes reports high unemployment among the demographic is keeping many Millennials from pursuing a car purchase.

A study by Zipcar indicates other factors are contributing to their attitudes of not wanting to buy a new car, including poor brand awareness for several automakers and a preference for car sharing among today's youths.

*according to Forbes on March 30, 2012
**according to The New York Times on March 22, 2012

  http://www.allstate.com/insurance-industry-news/auto-insurance-news/carmakers-look-to-marketing-experts-to-help-reach-millennial-demographic-800747258.aspx Fri, 06 Apr 2012 12:27:48 http://www.allstate.com/insurance-industry-news/auto-insurance-news/japanese-automakers-look-to-implement-strategies-to-avoid-production-issues-800747242.aspx In the wake of the Japanese tsunami that caused financial problems for much of the car industry, automakers say they have learned a few lessons that they hope will help prevent future problems.

As The Wall Street Journal notes, automakers' production among foreign models like Toyota and Nissan came to a grinding halt several weeks after a 9.0-magnitude earthquake struck Japan last March. The aftermath left global car parts supply chains without the equipment needed to send to manufacturers for production.

While no one knows when another tsunami may occur, Toyota says it is looking to implement strategies that will enable production to continue shortly after the event occurs.

Shinichi Sasaki, executive vice president of Toyota, told the paper that it is looking to restore manufacturing capabilities so the company can continue production less than 14 days after an earthquake.

The company says this is necessary after recently polling 500 suppliers affiliated with Toyota and asking about their supply chains. More than half—300 production locations—indicated their preparations were insufficient and could be at risk if another earthquake or tsunami were to occur.

Because of this, Sasaki told the paper that Toyota has asked its suppliers to "hammer out" a plan that would enable them to continue operations, such as buying plants in other portions of the world that are at a reduced risk of being hit by earthquakes.

Toyota looks to build more efficiently

Sasaki said that while securing plants in other portions of the world will likely increase operating costs, he thinks they can be offset through some adjustments. For example, Sasaki told the paper that Toyota is trying to make the building process more efficient by reducing the number of parts it uses. This will make the company less reliant on large volumes of parts from various suppliers.

Should the company's efforts prove to be successful, Sasaki said Toyota would be able to trim the number of parts it uses and make the parts capable of being installed in a variety of new cars rather than one in particular.

Another Japanese automaker, Nissan, is looking to implement a similar strategy that will enable the company to emerge from an environmental disaster more quickly. However, Toshiyuki Shiga, Nissan's chief operating officer, told the paper that there are many issues standing in the way, such as what the company can do if there are road or port closures, preventing supplies from being sent.

*according to The Wall Street Journal on March 7, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/japanese-automakers-look-to-implement-strategies-to-avoid-production-issues-800747242.aspx Fri, 06 Apr 2012 12:19:54 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-touts-efficiency-of-its-focus-electric-800741825.aspx The Ford Motor Company* indicates a new company model could be one of the country's most energy efficient cars.

According to testing conducted by the U.S. Environmental Protection Agency, the 2012 Ford Focus Electric is America's most fuel-efficient five-passenger vehicle, getting the equivalent of 110 miles per gallon in the city and 99 miles per gallon on the highway. Electric vehicle mileage is determined by the number of kilowatt-hours it takes to travel a certain distance.

Ford says Focus Electric sets records in mileage, charging capabilities

The American automaker said not only is the 2012 Ford Focus one of the best vehicles to drive for energy efficiency among vehicles in general, it more than competes with its electric-vehicle contemporaries. For example, the Ford Focus Electric has been certified as getting the equivalent of six miles per gallon more than the Nissan Leaf. In addition, the Focus has more legroom and charges faster than the Nissan Leaf, the automaker asserts.

Eric Kuehn, chief nameplate engineer at for Ford's Focus Electric unit, said the company is supplying today's motorists with more car buying options to help them save money and reduce their fuel costs. In addition, the release of the 2013 Ford Fusion will give them another affordable choice.

"Ford is giving customers the power of choice for leading fuel economy regardless of what type of vehicle or powertrain technology they choose," said Kuehn. "The Focus and Fusion are great examples of how we transformed our fleet of cars, utilities and trucks with leading fuel efficiency."

Chuck Gray, chief engineer of global engineering and electric vehicles at Ford, said the company has devoted a considerable amount of resources to the Focus' development and believes those efforts will pay off for consumers.

"We've been working for three years to make the Focus Electric America's most fuel-efficient vehicle of its kind," said Gray." The entire group feels like a sports team that has just won a major championship. It's a good feeling to be at this point now."

He added that some people might be hesitant to buy an electric vehicle, fearing that it will be too different from standard unleaded fuel-consuming vehicles. However, because the Fusion Electric was built in the same mold as Ford's global C-segment car, motorists should not notice a significant difference in functionality.

*according to Ford Motor Company on March 2, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-touts-efficiency-of-its-focus-electric-800741825.aspx Fri, 30 Mar 2012 10:20:35 http://www.allstate.com/insurance-industry-news/auto-insurance-news/reliability-of-used-cars-improves-800740757.aspx With overall reliability ratings at record levels, there has never been a better time for consumers to buy a used car, a new analysis indicates.

According to a recent study performed by Consumer Reports*, even vehicles that at one time were considered to be unreliable are becoming more trustworthy. However, vehicles made by Toyota, Honda and Volvo over the past decade have shown the most significant improvements in reliability.

In order to determine this, researchers from CR compared the percentage of cars that were problem-free as three-year-old models built between 2002 and 2011. In virtually all of the automobiles examined, used-car reliability rose, specifically for Mercedes-Benz, Volkswagen, Hyundai, Ford, General Motors and Chrysler. These automakers recorded an increase in reliability of at least 10 percentage points when compared to their models built in 2002.

CR noted that it chose used vehicles that were three years old because that is traditionally the time in which most vehicles warranties expire, leaving owners with the responsibility of paying for any repairs.

While overall reliability has risen, CR notes that car shoppers could still buy a lemon if they are not careful. To help shoppers avoid this, CR offers a few recommendations.

Check for telltale signs of repair

If the vehicle's doors or trunk do not close properly, it may be an indication that the vehicle was in a collision and a repair shop used mismatched parts. Shoppers should inquire about any such issues with the seller.

Signs of flooding

Some used cars may have been impacted by flooding. CR states there are usually signs of flooding that shoppers should be able to determine just by examining the inside. For instance, if the interior has a moldy smell or if its carpeting is discolored, the vehicle may have experienced water damage. Electrical problems could result, if they have not already.

Use the gas and brake pedals

While inside, consumers should push down on the gas and brake pedals, CR advises. If the engine revs to a high degree before moving, it may suggest the transmission is damaged.

Have it inspected

Finally, CR says used-car buyers should have their vehicles inspected by a certified mechanic. They should be able to identify any issues that have previously been corrected or need to be addressed before the car is registered.

*according to Consumer Reports on February 12, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/reliability-of-used-cars-improves-800740757.aspx Thu, 29 Mar 2012 11:22:01 http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-automakers-factor-gas-prices-into-new-car-models-800739857.aspx Gas prices have been in a state of limbo since 2008, fluctuating dramatically and causing pain at the pump for many cash-strapped consumers. Automakers have felt the effects of unpredictable prices as well, as many Americans turned their backs on gas-guzzling trucks and SUVs in favor of more fuel-efficient vehicles. Americans' renewed focus on both frugality and environmental friendliness have become strong contributing factors in Detroit automakers' new car designs, which are expected to host more fuel-efficient features to attract drivers.

During the summer of 2008 when gas prices spiked to over $4 per gallon, the three Detroit automakers saw sales plummet 20 percent during the month of July alone, according to The Associated Press*. Alternately, automakers offering more fuel-efficient vehicles saw sales spike. Years following this revelation, Detroit automakers have seen strong sales increases since 2008 after shunting more resources toward building smaller cars with more efficient energy outputs, the AP reports.

A recent Edmunds.com analysis shows the fuel economy of vehicles has increased 16 percent between 2008 and 2012, and experts say the production trend will continue to increase as buyers seek out models that are more efficient.

"The 2008 spike in gas prices served as a wake-up call for manufacturers whose fleets just weren't cutting it for consumers who were demanding vehicles with better fuel economy," Edmunds.com analyst Ivan Drury told the Los Angeles Times**. "Automakers responded by de-emphasizing fuel-chugging V6 and V8 engines and turning their focus to fuel-sipping four-cylinder and diesel engines."

Sales of fuel-efficient models increase

Automakers have noted that the production of more fuel-efficient models has boosted sales, with February sales figures reaching an annualized 15.1 million, the highest record since the same period in 2008, the Times reports. Analysts say that looser credit standards may also be a driving factor in renewed auto sales. In addition, many Americans that have been driving older vehicles may have grown tired of making costly repairs and chosen instead to purchase new, more efficient and reliable vehicles to save money on expenses. Experts say economic factors are also at play.

"You look at the various things happening out there in the economy," Ford sales analyst Erich Merkle told the LA Times. "Claims for unemployment are coming down. Jobs are being created. While we would like it to be better, consumer confidence is on the upswing."

*according to The Associated Press on March 1, 2012.

**according to the Los Angeles Times on March 5, 2012. http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-automakers-factor-gas-prices-into-new-car-models-800739857.aspx Wed, 28 Mar 2012 14:19:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-executive-auto-technology-may-help-prevent-traffic-gridlock-800739846.aspx Few drivers enjoy being stuck in bumper-to-bumper traffic, and heavy congestion can prompt auto accidents, pollution and frustration on the part of consumers. Bill Ford, executive director of Ford Motor Company, raised a possible solution to the issue of heavy traffic and gridlock in his speech before the Mobile World Congress.

Ford put forth that stronger collaboration between telecommunications providers and automakers would allow them to develop new technology designed to help drivers monitor traffic patterns and plug in additional routes, according to the Detroit Free Press*. He explained that the number of drivers on the road will likely increase significantly in the coming years, leading to more congestion and gridlock in the world's largest cities.

"When we do the math, and look at the global vehicle population, there is cause for real concern," said Ford. "There are about a billion cars on the road worldwide. With more people and greater prosperity, that number could grow up to four billion by mid-century."

In order to combat the crowded roadways and lower energy consumption, pollution and the risk of auto accidents, Ford suggested new public database systems that would connect drivers, buses, trains and other modes of transportation to a single network, the Free Press reports. In addition to suggesting alternate routes to avoid high congestion, Ford also encouraged more carpooling to save resources.

"Cars are, to put it simply, a great untapped opportunity for the telecommunications industry," Ford said, according to the news source. "We both need to step back and look at transportation as a network."

Auto technology continues to evolve

Automakers' greater focus on technology is not expected to slow down in the near future, as navigation systems, autopilot programs and the ability to connect to online platforms are becoming a driving force in consumers' auto purchases. Many vehicles allow drivers to check their email, login to social media websites and browse the Internet through automated voice systems. Some states, such as Nevada, are also establishing the first set of rules regarding self-driving vehicles.

Between self-driving vehicles and safety systems that have the power to take over a vehicle's operating system if road rules are breached, future vehicles are expected to be equipped with significantly more auto safety technology as consumer demand grows.

*according to the Detroit Free Press on February 28, 2012. http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-executive-auto-technology-may-help-prevent-traffic-gridlock-800739846.aspx Wed, 28 Mar 2012 14:13:10 http://www.allstate.com/insurance-industry-news/auto-insurance-news/rare-automobiles-from-milhous-collection-fetch-millions-at-auction-800739466.aspx Many collectors of classic automobiles and other items turned out for a recent auction of many of the collectibles obtained through the years by two brothers.

The Milhous Collection, offered by brothers Bob and Paul, included nearly 30 vehicles along with assorted other items, such as an paintings, statues and even a 42-foot custom-built carousel with more than 40 hand-carved animals, chariots and an organ.

"The brothers looked all over the world for a suitable carousel to buy, and they couldn't find one," Alain Squindo, the manager of the research department for RM Auctions, told the New York Times*. "So they commissioned this one. It took years to build."

The pair had spent years collecting the items, and chose to sell them off as a way to simplify estate planning for their relatives, the Times reports, since many would have no idea what to do with some of the collection's more unique items, such as the carousel. Their collection was so large, it had already outgrown four previous storage locations.

The most expensive item sold at the auction was a 1912 Oldsmobile Limited Five-Passenger Touring automobile. While the former museum piece would have been sold for roughly $7,000 back in 1912, RM Auctions* says that vehicle ended up selling for more than $3 million at the auction, largely because it's the only known survivor of the 1912 Oldsmobile Limited line. The vehicle has also won a number of auto show awards during the past few years.

The Oldsmobile was one of six classic cars to sell for more than $950,000. Some of the other high-priced cars included in the auction were a 1933 Chrysler Phaeton, a 1939 Lagonda V-12 Rapide Sports Roadster and a 1930 Duesenberg convertible.

Overall, the cars in the collection impressed many collectors who attended the auction looking to buy cars.

"All of us have seen some nice collections before, but this one turned the knobs all the way up to 11," David Wallens, an automobile collector, told the Times.

In total, the items in the collection sold for more than $38 million.

*according to the New York Times on February 27, 2012
**according to RM Auctions on March 15, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/rare-automobiles-from-milhous-collection-fetch-millions-at-auction-800739466.aspx Wed, 28 Mar 2012 06:49:07 http://www.allstate.com/insurance-industry-news/auto-insurance-news/volkswagen-eyes-honda-audience-for-considerable-us-market-share-800738768.aspx A decline in automobile sales in the United States during the past year for Honda has led rival Volkswagen to take aim at the carmaker's significant share of the American market, according to a report by Reuters*.

During 2011, Honda's U.S. market share dipped 2 percentage points to 8 percent. Sales for the automaker slipped 7 percent last year - a stark contrast compared to the rest of the industry, which saw an overall double-digit rise in vehicle sales.

The drop in sales for Honda in the United States and substantial increases in sales of two of VW's most popular automobiles - the Jetta and Passat - has the carmaker looking to capitalize on what it sees as a chance to boost business.

"The good news for Volkswagen is that brand loyalty is not what it used to be," TrueCar analyst Jesse Toprak told the news source. "Honda buyers started to flee to other brands like Hyundai because they wanted to express themselves and not be just one of the herd."

VW faring better than many other automakers since recession

Compared to several other auto companies that did not fare well during the recession, Reuters notes VW has not suffered any major detriments to its business in the past few years.

For example, General Motors and Toyota have both suffered financial setbacks since 2008. GM needed a federal government bailout to survive and Toyota endured major net losses in operating costs.

However, the news source states VW weathered the storm better than these companies, thanks in large part to strong international sales, which led to a record profit for the automaker in 2011, and maintaining a strong reputation with the car buying public.

*according to Reuters on February 28, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/volkswagen-eyes-honda-audience-for-considerable-us-market-share-800738768.aspx Tue, 27 Mar 2012 14:36:56 http://www.allstate.com/insurance-industry-news/auto-insurance-news/lawmakers-introduce-bill-to-lower-auto-maintenance-costs-enhance-competition-800730514.aspx Two U.S. House Representatives recently introduced legislation that if passed could help lower auto insurance and maintenance costs for consumers.

Representatives Darrell Issa and Zoe Lofgren of California*, both members of the House Judiciary Committee, introduced what is known as the Promoting Automotive Repair, Trade and Sales (PARTS) Act. Under the proposed legislation, auto parts manufacturers would have a restricted amount of time—two-and-a-half years—in which they would be the only ones that could sell certain types of collision repair parts. Once that 30-month period passes, however, alternative manufacturers would be able to test, market and sell generic parts using the same patent.

Shortly after introducing the legislation, Issa indicated the law has the potential to lower motorists' overall costs, because of increased competition among companies working to win consumers' business.

Issa: Choice should 'extend to automotive repair parts'

"Competition is the hallmark of our free market system," said Issa. "Consumers have dozens of choices in consumer electronics, food, services, clothing and other products—this same array of choices, across all price points, should also extend to automotive repair parts."

Lofgren noted that the legislation comes at an ideal time, as auto maintenance costs have been rising.

"This is not the time to raise repair costs for Americans depending on their cars so they can get their kids to school and drive to work," said Lofgren. "We need a balanced approach, and this bipartisan bill encourages competition for an innovative, quality auto parts market at the best price for consumers."

Legislation would reduce automakers' exclusivity period by 12 years

She added that automakers currently have a 14-year period of exclusivity for collision repair parts, which has stymied competition and made the cost of vehicle ownership more expensive for the average consumers.

Also supporting the PARTS Act was Ben McKay, senior vice president of federal government relations for the Property Casualty Insurers Association of America**. McKay stated that PCI supports the bill—House Resolution 3889—and believes its implementation will aid consumers by enhancing their repair options while at the same time reducing their maintenance costs.

The legislation was referred to the Subcommittee on Intellectual Property, Competition and the Internet, where it first must be voted on before any additional consideration can go forward.

* according to Congresswoman Zoe Lofgren on February 2, 2012
**according to the Property Casualty Insurers of America on February 2, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/lawmakers-introduce-bill-to-lower-auto-maintenance-costs-enhance-competition-800730514.aspx Thu, 15 Mar 2012 12:05:26 http://www.allstate.com/insurance-industry-news/auto-insurance-news/dashboard-technology-in-volkswagen-golf-to-receive-update-800730513.aspx Volkswagen, a leading German automaker, is looking to enhance motorists' navigation capabilities by installing top-of-the-line technology into one of its models.

According to AOL Autos*, Volkswagen will be outfitting its 2013 Golfs with three high-end navigation systems, with features that include a five-inch touch screen in the dashboard, a high resolution 800x450 display and a NVIDIA Tegra 3 processor, the same processor that will soon be used by Audi in some of its future models.

In addition to more state-of-the-art technology, Volkswagen will also try to make the devices more user-friendly. AOL Autos reports that the new system will feature handwriting recognition capabilities, enabling drivers and passengers to enter their destination information using the screen itself rather than typing it in on a keyboard.

Other potential enhancements the automaker is considering but has yet to implement, according to the source, include making internet connectivity a possibility, as well as adding Mirror Link functionality. This system would enable smartphone users to "mirror" their phone's navigation system display so they can see it more clearly.

Detractors say systems can contribute to distracted driving

While these and other infotainment systems can make navigation easier, some say that equipping cars with mobile-based technologies diminishes driving safety by enhancing driver distraction.

To help bridge the gap between taking advantage of modern-day technologies and preventing driver distraction, the National Highway Traffic Safety Administration** released a list of voluntary recommendations that safety advocates have encouraged carmakers to follow. The suggestions for enhancing safety pertain to navigation systems, smart phones, electronic tablets, pads and other mobile communication devices.

"We recognize that vehicle manufacturers want to build vehicles that include the tools and conveniences expected by today’s American drivers," said David Strickland, administrator of the NHTSA. "The guidelines we're proposing would offer real-world guidance to automakers to help them develop electronic devices that provide features consumers want—without disrupting a driver’s attention or sacrificing safety."

It is unclear whether Volkswagen or any other automakers will implement the auto safety agency's recommendations, which include enhancing the automatic capability of devices while reducing manual operation.

*according to AOL Autos on February 7, 2012.
**according to the U.S. Department of Transportation on February 16, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/dashboard-technology-in-volkswagen-golf-to-receive-update-800730513.aspx Thu, 15 Mar 2012 12:01:42 http://www.allstate.com/insurance-industry-news/auto-insurance-news/many-automakers-take-on-niche-vehicle-market-with-varying-degrees-of-success-800730502.aspx When consumers make a new car purchase, automakers typically understand that certain types of models will be more popular with the public. However, as Cars.com* describes, some vehicles that were meant to appeal to a certain segment of society turn out to be sales successes, with others barely getting off the ground.

Perhaps the best example of unanticipated success is the Nissan Juke, the website notes. Built with a particular niche audience in mind - as the vehicle has an unusual looking exterior - Nissan was not surprised that the number of models sold in 2011 was 35,886, a fraction of the number of Rogues it sold. However, the Juke unexpectedly outshone some of its more mainstream contemporaries - selling more than Mini's Countryman and Mitsubishi's Outlander Sport combined last year.

Honda CR-Z sales slim since debut

Nissan is not the only automaker that has entered the niche car market, however. Cars.com reports that Honda marketed its CR-Z with hybrid devotees in mind. However, its low sales numbers illustrated just how narrow its base of interested buyers were, as the website indicated that CR-Z purchases have been meager ever since the earthquake and tsunami in March 2011, which crippled the Japanese auto industry. However, even before the environmental disaster, CR-Z sales were weak, as its best month was last April when just 1,819 units moved.

Lexus HS 250h failed to compete with Toyota Prius

Meanwhile, other vehicles that automakers thought would take off with the car-buying public have turned out to be relative duds. Cars.com notes Lexus experienced this, as the company built the HS 250h to compete with the more mainstream Toyota Prius. Lexus sold just 13,527 units of the HS 250h in two years to the Prius' 11,555 in January alone.

Despite the uncertainty that can come with building niche vehicles, Cars.com indicates automakers will likely continue to build these specialized automobiles, if for no other reason than to enhance brand loyalty.

"Otherwise, why would automakers bother building cars they acknowledge will never end up on a best-seller list?" the website noted.

*according to Cars.com on February 15, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/many-automakers-take-on-niche-vehicle-market-with-varying-degrees-of-success-800730502.aspx Thu, 15 Mar 2012 11:46:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/interest-rates-and-delinquencies-down-for-car-buyers-800729526.aspx Car buying consumers who are operating on tight budgets may be delighted to learn that financing a vehicle is at its most affordable level in three years.

According to Experian Automotive* and its quarterly automotive credit analysis, in the fourth quarter of 2011, average interest rates for new vehicle loans dropped to 4.52 percent, down from 4.84 percent a year earlier. The reduction in car loan interest rates also held true for used vehicles, as loans dipped to 8.68 percent from 8.71 percent on a quarter-over-quarter basis. For both used and new vehicle loans, that is the lowest average since 2008, the report noted.

Melinda Zabritski, director of automotive lending at Experian, said this bodes well for consumers who are car shopping.

"The improved automotive lending market is good news for consumers in the market to buy a vehicle," said Zabritski. "The confluence of low interest rates, longer loan terms and an increase in loans outside of prime provide a great opportunity for more people to find a vehicle that suits their needs."

Lenders were also more willing to give loans to people with less-than-perfect credit, as the average credit score for loans fell six points to 761 from 767 between October and December of 2011 for new cars. Credit scores were even lower for used vehicle loans, with the average down nine points to 679 from 670.

Despite the dip, Zabritski noted that people are doing a better job at repaying their loans, as loan delinquencies tumbled when comparing the two quarters. Thirty-day delinquencies lowered nearly 7 percent, representing just 2.79 percent of all loans from 2.98 percent. The 60-day delinquency rate also fell 9.51 percent, totaling 0.72 percent of all loans from 2011's 0.79 percent.

Lower interest rates portends well for car industry

While this finding bodes well for consumers in the car buying marketplace, Zabritski said it also serves as a boon for lenders, dealers and virtually everyone else involved in the automotive sector.

"With delinquencies and total dollar volume at risk down, lenders have been able to adopt more aggressive strategies," said Zabritski. "This tends to benefit everyone, from lenders to automotive retailers to the end consumer. With more lenders aggressively competing for business, it's a great time for consumers to buy or finance a vehicle."

*according to Experian Automotive on February 23, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/interest-rates-and-delinquencies-down-for-car-buyers-800729526.aspx Wed, 14 Mar 2012 11:32:15 http://www.allstate.com/insurance-industry-news/auto-insurance-news/shop-for-the-most-affordable-auto-insurance-rates-800725452.aspx Auto insurance can be your saving grace when it comes to covering damages or repairs that result from auto accidents, theft or acts of vandalism. However, many drivers balk when it comes to choosing a policy because there are several options available to consumers. When it comes to choosing the right auto insurance policy for you, it's important to know what you're looking for and weigh your available options carefully.

Several factors will influence your premium, some of which are under your control and others are out of your hands. The latter includes your age, gender and location. However, you can control other factors, such as your driving record, credit score and the type of car you drive. After weighing in these factors to get a good idea of what your premium may be, there are a few actions you can take to find a policy that falls within your budget and still provides sufficient protection, according to the Insurance Information Institute*.

Comparison shop

You wouldn't purchase a home without shopping for different mortgages or secure a credit card without comparing rates, and the same attitude applies to purchasing insurance. There are several options available that cater to drivers of all circumstances, and shopping around will inform your decision. The III recommends getting at least three quotes from insurance providers, as rates and levels of coverage will vary. In addition, it's beneficial to do some additional background research on the company. This includes speaking to friends and family about their experiences, reviewing the company's status on your state insurance department website and checking to see if the company is suffering from any financial issues.

Consider the vehicle

If you are in the market for a new car, consider what it will cost to insure it before you buy it. The type of vehicle you drive does play a role in your premiums, and you may find it financially beneficial to go with a different model than the one you originally had in mind in order to save on insurance costs.

If you are insuring an older vehicle, carrying certain types of coverage may not be in your best financial interest. For example, drivers with vehicles that are worth less than 10 times the amount they are paying on insurance premiums may consider dropping optional comprehensive insurance or collision coverage, the III suggests.

Seek out discounts

Many drivers may not realize that they are eligible for considerable discounts that could slash their auto insurance premiums. Many insurance providers will chip away at overall costs if drivers meet certain criteria. This may include having a clean driving record, being a long-time customer, having a student driver with good grades, sporting a low annual mileage or paying a higher deductible. In addition, drivers who bundle their auto policy with their homeowners insurance may also receive a discount.

*according to the Insurance Information Institute on February 21, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/shop-for-the-most-affordable-auto-insurance-rates-800725452.aspx Thu, 08 Mar 2012 08:15:39 http://www.allstate.com/insurance-industry-news/auto-insurance-news/nhtsa-slaps-3-million-fine-on-bmw-800721487.aspx Addressing auto safety concerns quickly and recalling vehicles with possible defects is a responsibility of all automakers. However, when automakers fail to do so in a timely manner, they may be hit with significant fines and other sanctions as evidenced by the most recent National Highway Traffic and Safety Administration action.

The NHTSA imposed a $3 million fine on BMW after discovering the German automaker failed to notify the agency of safety defects quickly after becoming aware of the problems, according to the agency*. In addition, BMW is required to make changes to its internal recall procedures. The charges go back to a string of 16 recalls in 2010.

NHTSA regulations require automakers to alert the agency to auto safety concerns within five days of discovering them. After conducting an investigation into the recalls, the NHTSA determined that the automaker did not comply with federal law and held off on notifying the agency and customers of potential problems. The NHTSA made particular notes about the automaker's failure to provide complete information to them about safety defects, instead promising to provide it later, according to The Associated Press**. However, the automaker took a great deal of time in providing the missing details, prompting the agency to investigate the matter.

For example, BMW was unable to provide the exact number of potential vehicles affected in 10 out of the 16 recalls. In addition, the automaker could only provide a chronology of events, an NHTSA requirement, in five of the recalls and four were missing important information and dates, the AP reports.

"It's critical to the safety of the driving public that defects and recalls are reported in short order," said NHTSA Administrator David Strickland. "NHTSA expects all manufacturers to address automotive safety issues quickly and in a forthright manner."

Facing a recall

When drivers learn their vehicle is part of a voluntary or involuntary recall, it is imperative to follow the instructions provided by the automaker. Correcting auto safety issues is imperative to protecting yourself and other drivers on the road. In some cases, automakers who recall vehicles may agree to provide other vehicles on loan until the issue is fixed.

*according to the NHTSA on February 10, 2012
**according to The Associated Press on February 11, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/nhtsa-slaps-3-million-fine-on-bmw-800721487.aspx Fri, 02 Mar 2012 09:54:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-automakers-put-pedal-to-the-metal-with-diesel-engine-800719072.aspx It appears automakers have been adopting some energy experts' fuel saving tips by producing more vehicles that burn diesel rather than unleaded gasoline.

According to Automotive News*, this is particularly true for Japanese automaker Honda, as at the end of 2011, Honda supplied reporters with details about its latest incarnation of the Civic, which the company says will have a turbodiesel engine.

Said to be smaller than traditional Honda Civic, the diesel-powered model will house a clean-burning 1.6-liter engine that has more horsepower than traditional gasoline engines, the source reports.

If all goes as planned, Honda told reporters that the company would start building the engine later this year and begin offering it sometime in 2013.

However, one of the markets that it will not be advertised in is the United States, Automotive News reports.

"Automakers have been holding diesels out of the United States for years, but such decisions are especially perplexing today," the news source said. "If there ever were a moment when the North American industry could benefit from a switch to different engine architectures to claim quick and easy fuel-economy improvements, it would be now."

Diesel could help automakers reach fuel efficiency standard

John German, senior fellow with the International Council on Clean Transportation, is similarly confounded as to why diesel-powered vehicles are not as popular in the United States. That is because U.S. regulations will require vehicles with 2025 model years to have fuel economy ratings that average 54.5 miles per gallon, up from 30.1 mpg by today's standards. In addition, within four years, fuel economy for vehicles with 2016 model years will need to average 35.5 miles per gallon.

One of the reasons why companies may not be producing more diesel-powered cars may stem from the high cost of diesel fuel. According to data cited by Automotive News from the U.S. Department of Energy, for the past several years, the cost of diesel fuel has consistently been higher than regular unleaded gasoline. For instance, as of January 23, diesel has averaged $3.85 to the unleaded average of $3.39. Moreover, as recently as December, diesel topped out at nearly $4 per gallon.

In addition, diesel-powered engines cost more to build, according to Dave Coleman, product development engineer at Mazda. This translates into a higher sticker price for car buyers.

GM to introduce diesel-powered Chevrolet Cruze in 2013

There is some evidence to suggest, however, that production of diesel vehicles has increased. The source reports that General Motors will likely introduce Americans to the diesel-powered Chevrolet Cruze in 2013. It is expected to get as much as 40 miles per gallon.

Allen Schaeffer, executive director of the Diesel Technology Forum, tells Automotive News that motorists can expect more vehicles that use diesel just as soon as fuel prices drop and automakers become more confident that they will be popular with the buying public.

*according to Automotive News on January 30, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-automakers-put-pedal-to-the-metal-with-diesel-engine-800719072.aspx Wed, 29 Feb 2012 12:00:32 http://www.allstate.com/insurance-industry-news/auto-insurance-news/us-automakers-expected-to-lose-market-share-in-2012-800717620.aspx Market analysts say the battle for market share will likely result in a decreased number of share for U.S. automakers as Asian brands make a comeback this year providing a larger variety for consumers interested in buying a car.

Results from a survey show that analysts believe U.S. auto manufacturers may see a drop in market share during 2012 after rising to the top in auto sales in 2011. Bloomberg* reports that as Asian automakers including Toyota and Honda recover from natural disasters that halted their production, they will likely reclaim their titles as top-selling brands.

According to the news source, automakers General Motors, Ford and Chrysler all saw added market share in 2011 contributing to the 12.8 million vehicles sold during 2011. However, Bloomberg analysts say these big names may lose 1.3 percent of market share in 2012 as Toyota and Honda make a comeback and expected sales rise to 13.6 million.

Sales in 2011 and 2012 predictions

U.S. automakers dominated the market with combined sales of GM, Ford and Chrysler making up 47 percent of total vehicles sold in 2011 with GM and Ford earning $8.47 billion and $6.6 billion respectively. Additionally, the media outlet says all three brands will be revealing new compact cars, small SUVs and midsize sedans to keep up with competition from Toyota and Honda who typically head the segments. Nissan, another Asian brand, was not as heavily affected by the natural disasters in 2011.

The news source says that GM could drop to having 19 percent of share, down from 19.6 percent last year while Ford is expected to fall slightly to 16.3 percent from 16.8 percent and Chrysler is predicted to decline to 10.5 percent from 10.7 percent reported last year.

"Even though Toyota and Honda will inevitably do better—it's hard to go backwards after last year—it's going to be an extremely challenging marketplace, and more so than ever in the segments that they've dominated," one analyst told Bloomberg.

According to the source, analysts predict Toyota could hold 13.8 percent of the U.S. market in 2012, up from 12.9 percent in 2011 while Honda may earn 9.5 percent of sales, up from 9 percent.

Other foreign automakers including Hyundai and Kia could take 9 percent of auto sales in 2012, but will reportedly move slower than their competitors. To keep from losing share, Bloomberg states that the somewhat underdog brands will focus on improving vehicle quality but neither brand has released its own goal for sales this year.

Some analysts say that Volkswagen could come up short of its sales goal for 2012, missing their target by nearly 500,000 sales, says the source. But the combined sales of Volkswagen and Audi brands managed to claim 3.8 percent of market share in 2011.

*according to Bloomberg on January 26, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/us-automakers-expected-to-lose-market-share-in-2012-800717620.aspx Tue, 28 Feb 2012 10:41:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-buyers-seek-discounted-saabs-post-bankruptcy-800717615.aspx Saab Automobiles officially filed for bankruptcy before the end of 2011 and The New York Times* reports that people interested in buying a car for cheap may be seeking out a bargain from the automaker.

According to the news source, the company had been struggling during the first two quarters of the year and only manufactured 130 vehicles during the third quarter, ultimately selling only 1,235 cars. The brand, previously owned by General Motors has reportedly been struggling for many recent years and was cut loose two years as sales began to decline.

Tori Tellem, a blogger for The Times wrote about her personal hunt for a low-priced Saab. She found that the official website for the automaker was the best way to find local dealers which were also offering incentives for car buyers.

One factor that led Tellem to a dealer in Beverly Hills was its advertisement which presented a sale on the entire 2011 new model inventory and offered to $12,000 cash back on models such as a 9-5 or $8,000 on a 9-3 according to the blog. Another dealership was offering similar discounts.

The first stop at the dealer showed a small inventory of three 9-5 models and a salesperson told Tellem they would not be getting any more any time soon. In addition to a limited selection, she reported that the vehicles had stickers that cautioned buyers new cars wouldn't be eligible for warranties and were being sold as-is as a result of the company's bankruptcy.

After asking for clarification on coverage, Tellem was told that only used models would be covered and serviced by General Motors; the sales representative noted that the exclusion had not seemed to keep shoppers from buying. According to the blog, leasing was also not an option for buyers.

Another local dealership was offering similar discounts. Tellem wrote that it did offer a four-year warranty but did not include free maintenance, unlike the previous dealer. According to the blog, it was also not offering leasing as they were lacking partnership with a bank.

After speaking to the outgoing president and chief operating officer, Tim Colbeck, Tellem says many recent buyers are likely already Saab owners. He also told the writer that there are around 2,200 vehicles in dealer inventory and despite the company's status, dealers won't likely be offering extreme deals as the cars being sold are still of great value.

"It's not so much the bargain hunters right now that are going out, but I think loyal Saab owners who are looking to get their last Saab," Colbeck told the blogger.

*according to The New York Times on January 26, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-buyers-seek-discounted-saabs-post-bankruptcy-800717615.aspx Tue, 28 Feb 2012 10:37:46 http://www.allstate.com/insurance-industry-news/auto-insurance-news/more-car-owners-doing-their-own-automotive-repairs-800711944.aspx Even though some may not be highly skilled when it comes to car repair, a new survey suggests motorists are increasingly opting to handle their auto maintenance tasks themselves rather than have an expert deal with them.

According to AutoMD.com's* 2012 DIY Report, when respondents were asked whether they were more likely to try to attempt a difficult repair on their vehicle rather than having it serviced at an auto shop, nearly 70 percent of them said yes. Thirty-one percent indicated they would let their mechanic handle the work.

The survey found that motorists' willingness to try and fix their vehicle was even found among those who had never performed a repair on their car in the past.

Economy, saving money primary reasons for DIYers

When the study's participants were asked why they were choosing to work on their own vehicles, 83 percent said it was to save money due to experiencing a period of trying economic circumstances.

However, there were other reasons respondents cited as to why they were servicing their own car repairs. This included enjoying the maintenance process, trusting themselves more than they would a mechanic, having some expertise on vehicle maintenance and a history of performing maintenance as a hobby.

While a high number of respondents indicated that they were do-it-yourselfers when it comes to automotive repair, these same individuals also said they had postponed the activity. Roughly 57 percent of AutoMD.com's participants noted they had procrastinated fixing their vehicle at least once within the last 12 months, largely due to busy schedules and limited time. However, for the majority of respondents—60 percent—the economy was cited as the top reason for putting off repairs.

Average age of vehicles on U.S. roads nearly 11 years

This may also help explain why the average age of vehicles has increased in recent years.

According to the Polk research firm, the average age of cars and trucks on today's roadways has risen to 10.8 years as of July 2011 from 10.6 during the same month in 2010.

Mark Seng, global aftermarket practice leader at Polk, said the aging trend of today's vehicles may bode well for repair companies, as owners may need their older vehicles serviced—provided they don't handle the repairs themselves, that is.

*according to AutoMD.Com on February 1, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/more-car-owners-doing-their-own-automotive-repairs-800711944.aspx Tue, 21 Feb 2012 13:37:03 http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-details-why-many-luxury-buyers-stick-with-or-switch-from-a-certain-brand-800711929.aspx When consumers consider all the factors that can influence them into buying a new car, certain things take more precedence than others, especially among automotive enthusiasts who stay loyal to a certain brand and prefer luxury offerings.

According to the 2012 New Luxury Vehicle Loyalty Study, conducted by Polk and AutoTrader.com*, brand affinity was the top reason why luxury buyers opted to stay with their current brand of vehicle when buying a new car.

Forty-four percent of respondents cited a fondness for a particular vehicle make as being one of the primary motivating factors for staying faithful to a certain brand. Other reasons were quality and reliability, the vehicle's driving performance, its price and overall styling.

Price a motivating factor for switching luxury brands

Just as there were reasons that consumers bought a certain brand, there were also factors that most influenced owners to opt for a different make. For example, while a vehicle's price had an impact on staying loyal to a certain brand, it was not a top contributor. However, when it came to defecting to another brand, the vehicle's price was the leading reason, cited by 24 percent of respondents. Less common reasons for going with a different brand included issues with the body of the vehicle, a general desire to want to change things up and driving performance.

Rick Wainschel, vice president of automotive insights at AutoTrader.com, said the survey's results might prove to be an invaluable resource for automakers, as it can help them determine what factors influence consumers' impressions about whether they should stick with a certain brand.

"Understanding behaviors and attitudes is critical in helping automotive marketers to more effectively reach and influence luxury shoppers during their decision making process," said Wainschel.

For this reason, he added, the survey aimed to learn more about why buyers were deciding to remain true to a certain type of luxury brand or whether prior experience led them to consider an alternative make.

The study also found a unique set of differences among male and female luxury buyers. For example, 17 percent of women surveyed said they were loyal to a certain brand because they had an affinity for a certain dealership. This contrasted fairly sharply with 11 percent of men who cited this as a reason for their loyalty.

Acura, Audi, BMW, Cadillac, Lexus and Mercedes-Benz were the six luxury brands analyzed for the survey, researchers note.

*according to AutoTrader.com on Feb 3, 2012

  http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-details-why-many-luxury-buyers-stick-with-or-switch-from-a-certain-brand-800711929.aspx Tue, 21 Feb 2012 13:31:01 http://www.allstate.com/insurance-industry-news/auto-insurance-news/less-production-supply-driving-automakers-profits-800710738.aspx Even though consumers aren't buying new cars at the same rate they used to, the automotive industry is performing quite well, according to The Wall Street Journal*.

This was illustrated by a large proportion of automakers which recently reported their sales totals for January. As compiled by the Detroit Free Press**, Chrysler generated a 44 percent sales increase compared to the same month last year—moving more than 101,100 vehicles—making January 2012 its best start to the year since 2008. Fellow American car maker Ford also fared favorably, with sales totals up a more modest 7 percent.

Michael Jackson, chairman and CEO of Ford, said the entire automotive industry went through a significant transformation after receiving a bailout from the government.

"It is a new world," Jackson told the Wall Street Journal.

Automakers have reduced operating costs

Instead of oversupplying their inventories, Jackson noted that automakers have generally been trimming back on their supply levels so that output is more commensurate with demand. In addition, instead of relying on discounted offers to stimulate demand, manufacturers have implemented some of the things that surveys have suggested consumers want, such as putting more of an emphasis on the quality of vehicles' exterior design.

"This type of behavior simply didn't exist in the U.S. auto industry for 40 years," Jackson told the newspaper.

Last year, automakers sold approximately 13 million cars and light trucks throughout the U.S. At one time, that amount of automobiles sold would be viewed as a negative for the car industry as a whole. But today, it translates into a boon for the sector, according to Peter Nesvold, a leading financial analyst expert, in an interview with the Journal.

Closing plants reduced production capacity by 30 percent

He noted that today's automakers have reduced their operating costs significantly by closing down factories that aren't producing as much as they used to. This has reduced production capacity considerably but also helped to offset losses experienced during prolonged periods of reduced buying among consumers.

"Supply and demand are roughly equal, and that's healthy," Nesvold told the newspaper.

Sales haven't improved for everyone, however. As the Detroit Free Press reports, General Motors sustained a net loss for car sales in January, falling by 6 percent year-over-year. This may stem, in part, from the bankruptcy filed by Saab in late December, which GM owned.

Overall, however, automakers' sales climbed in January, with Nissan, Toyota, Hyundai and Honda all reporting increases in sales volume, according to the Detroit Free Press.

*according to The Wall Street Journal on January 27, 2012

**according to the Detroit Free press on February 1, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/less-production-supply-driving-automakers-profits-800710738.aspx Fri, 17 Feb 2012 12:40:24 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-shoppers-see-few-differences-among-auto-industrys-leading-brands-800710731.aspx While there's no shortage of car brands to choose from when consumers are looking to buy a new car, survey results indicate many shoppers don't find much of a difference among the various options, particularly as it relates to high-priced and more affordable models.

According to the Consumer Reports National Research Center and its 2012 Car-Brand Perception Survey*, the difference noted by consumers between car brands has become increasingly negligible.

Perception scores overall have dropped off

In previous years, Toyota, Ford, Honda and Chevrolet scored high, but their scores have trended lower recently.

Jeff Bartlett, deputy editor for autos online at Consumer Reports, said economic events have had an impact on car shoppers' perceptions.

"Dramatic events in the automotive industry seem to be affecting how consumers view auto brands," said Bartlett. "Erratic gasoline prices and a struggling economy have pushed consumers to prize low operating costs and good reliability."

Consumer Reports indicates that car brands receive their Car-Brand Perception score through various criteria, including safety, quality, value, performance, how environmentally friendly it is, design and technology. While these categories can often be determined objectively, the source notes that each brand's score illustrates consumers' perception and not the results from actual testing.

Toyota, Ford, BMW and Chevrolet best finishers, but score lower

Overall, Toyota took home the top score in brand perception, which is to say the foreign automaker scored the most favorably when taking all of the categories into account. However, respondents were less impressed with Toyota this year when compared to last, as its score slipped 17 points.

Other brands that were among the top finishers—but whose scores also fell—were Ford, Honda and BMW, with scores dropping an average of 20 points.

"Brand perception can be influenced by many things, from professional road tests to marketing," said Bartlett. "Word-of-mouth from friends and neighbors can be a slower moving, though influential contributor as ownership transitions from the initial honeymoon phase to the seven-year itch."

When determining overall performance, BMW scored highest, but similar to its contemporaries, its score dipped from 27 in 2010 to 19 in 2011.

The survey was conducted at random among more than 1,700 adults who had at least one car at the end of 2011, Consumer Reports confirmed.

*according to Consumer Reports on January 24, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-shoppers-see-few-differences-among-auto-industrys-leading-brands-800710731.aspx Fri, 17 Feb 2012 12:35:36 http://www.allstate.com/insurance-industry-news/auto-insurance-news/this-boot-was-made-for-driving-800710724.aspx In recognition of its 100 years of operation, clothing outfitter L.L. Bean will be conducting an across-the-country tour that promotes the Freeport, Maine-based company—and they're doing it in a giant hiker's boot on wheels.

As detailed by The New York Times*, L.L. Bean's Bootmobile—which measures 20 feet long  and 13 feet high—is scheduled to go on tour throughout the U.S, having already made a stop in some of the country's most heavily trafficked locales like New York's Times Square.

What the Oscar Mayer Weinermobile is to its namesake, the Bootmobile is to L.L. Bean, which is why the company is going from state to state in the larger-than-life Bean Boot.

"We have it, so why not?" Carolyn Beem, L.L. Bean spokeswoman, told the paper. "People have been taking photographs and sharing their Bean Boot stories."

Bootmobile created by Florida-based company

While on the outside the vehicle looks like a boot suitable for the giant from "Jack and the Beanstalk"—measuring a shoe size of 747, according to L.L. Bean's sizing chart—the Bootmobile was created on a Ford- F-250 Super Duty truck by Echo Artz, a specialty fabrication company, the Times reports.

Though the vehicle's exterior is highly complex and made chiefly out of fiberglass, behind the wheel the interior is fairly pedestrian, so much so that drivers may forget the unique automobile they're navigating, the paper reports.

What the interior lacks in its distinctiveness, however, it makes up for in its mechanical make-up.

"It has a turbodiesel, and it has a ton of power," Ian Bechtel, who drove the Bootmobile from L.L. Bean's headquarters in Maine to New York's Times Square, told the paper. He added that the F-250's towing capacity, combined with its 400 horsepower and 800 pound-feet of torque, enables the Bootmobile to haul as much as 8,000 pounds.

Next destination: TBA

Though the Bootmobile is destined for more far off places, it returned to its home base shortly after touring the City that Never Sleeps. It has yet to be determined where the souped-up truck will turn up next or the route that will be established.

Wherever it does, locals will no doubt find it to be a real 'kick.'

*according to The New York Times on Jan. 19, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/this-boot-was-made-for-driving-800710724.aspx Fri, 17 Feb 2012 12:29:15 http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-uncertain-future-of-the-midsize-truck-800710714.aspx As more drivers are showing interest in smaller, more eco-friendly vehicles or sporty-yet-spacious SUVs, sources say many automakers are questioning the need to manufacture midsize trucks. AOL Autos* says many automakers have been contemplating cutting the number of midsize trucks as they continue to make larger trucks more fuel efficient and to avoid having an inventory of unsold trucks.

According to the source, sales of midsize trucks have been falling since the mid 1990s. They were once a more affordable option for drivers who wanted a truck but didn't want to pay the bigger price tag that comes with full-size options, but AOL Autos reports that the addition of more features desired by drivers has increased their price, possibly making them less appealing for buyers.

Some automakers including Chrysler and Ford have reportedly stopped producing the models in the U.S. and the source says Ford's recently renovated midsize Ranger will be sold internationally, just not in the U.S.

Other automakers stand behind their midsize models including General Motors, Toyota and Nissan, who have continued with the segment and plan to keep making current and new models appealing with the latest upgrades and technological features, says AOL Autos.

Some models still available

For drivers who are interested in buying a car, AOL Autos has made a list of options that have been removed from the market and some that are still available.

The source reports that after sales dropped to 13,000 in 2011 from 177,000 the previous year, Chrysler stopped making the Ram Dakota in August 2011. Despite the recent elimination of the model, AOL Autos says that CEO Sergio Marchionne has said that the midsize truck could make a comeback as a more fuel-efficient option for drivers running on a diesel engine.

Toyota and Ford have previously dominated the segment with high sales of the Tacoma and Ranger, but unlike Ford—Toyota will reportedly be continuing with the model as it is currently the best-selling small truck in the U.S. The source predicts that its sales will likely keep increasing as other competitors drop out of the segment.

According to the source, General Motors recently confirmed that it will be releasing a completely remodeled Chevrolet Colorado but says that a production start date has not been confirmed. The future of the GMC Canyon is also unknown, but AOL Autos says when it previews on the market, it will likely look completely different than previous editions.

The Nissan Frontier will be another midsize truck that drivers can continue to buy and as Japanese automaker Nissan increases production, the source recommends drivers give it a chance.

While some options are disappearing from the market, AOL Autos says quality models will continue to be available for drivers.

*according to AOL Autos on Jan. 27, 2012.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-uncertain-future-of-the-midsize-truck-800710714.aspx Fri, 17 Feb 2012 12:21:42 http://www.allstate.com/insurance-industry-news/auto-insurance-news/general-motors-surpasses-toyota-as-worlds-best-selling-auto-brand-800709763.aspx A year after General Motors relinquished its title as the world's top-selling make, the automaker regained its distinction in 2011, surpassing chief rival Toyota.

GM recently announced that in 2011, it sold more than nine million automobiles across the globe, increasing sales by 7.6 percent when compared to 2010. In addition, one of its leading brands, Chevrolet, sold 4.76 million vehicles in global sales, with 1.7 million occurring in the U.S. That's a sales increase of more than 13 percent when compared with 2010. Other countries where GM posted double-digit sales gains included Vietnam, Russia, Turkey and Germany at 79 percent, 49 percent, 30 percent and 21 percent, respectively.

Dan Akerson, CEO and chairman of GM, attributed the sales momentum to revamping many of its product lines.

"Chevrolet's impressive growth in both established and developing markets is the result of a strong new product lineup that meets the diverse needs of consumers around the world," said Akerson. In addition to Chevrolet’s record-setting sales, the entire lineup of GM vehicles is meeting customer needs for fuel-efficient cars and work vehicles as well as unmatched luxury."

Tim Lee, president of GM international operations, furthered that assessment, saying that GM's new models "without doubt" led to the company's success around the world.

Toyota sales fell 6 percent last year

Meanwhile, the world's former top-selling automaker had a less than stellar 2011. According to Reuters*, Toyota moved 7.1 million vehicles last year, the downturn largely resulting from the March earthquake in Japan that depleted supply. Sales volume diminished 6 percent when compared to 2010.

However, Kohei Takahashi of JP Morgan told the source that had the earthquake not hit, the Japanese automaker likely still would have seen sales slide.

"Toyota's biggest problem is that even without the natural disasters, its sales weren't exactly growing," said Takahashi. "They need a convincing strategy to boost their sales."

Hoping to stimulate more car purchases, Toyota is increasing its footprint on global markets, adding factories in countries such as Brazil, China and Thailand, Reuters reports. The hope is that half of its sales volume will come from emerging countries by 2015.

Toyota finishes first in brand loyalty

While sales at the Japanese automaker have diminished, Toyota established its position as a favorite brand former owners are most likely to return to for their next purchase.

According to vehicle valuation company Kelley Blue Book**, Toyota finished first in brand loyalty in the last quarter of 2011, the first time it has done so since the third quarter of 2010. At 50.6 percent, Toyota's brand shopping loyalty increased nearly 3 percent from the previous quarter, with the former loyalty champion, Hyundai, finishing second.

"Hyundai was No. 1 in loyalty for the past two quarters thanks to its strong redesigns, attractive value and the struggles of the Japanese brands with safety perception and supply issues," said Akshay Anand, market intelligence web analyst for KBB. "However, Toyota has done a laudable job overcoming these issues, introducing programs such as 'Toyota Care,' while getting its supply back online."

*according to Reuters on January 20, 2012

**according to Kelley Blue Book on January 18, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/general-motors-surpasses-toyota-as-worlds-best-selling-auto-brand-800709763.aspx Thu, 16 Feb 2012 13:21:24 http://www.allstate.com/insurance-industry-news/auto-insurance-news/scientist-develops-identification-system-based-on-drivers-behinds-800709752.aspx While a person's hands are typically used for identification purposes, a mechanical engineering professor is working on some new technology that would identify car owners as soon as they take their seats.

According to the Wall Street Journal*, Shiggeomi Koshimizu, a mechanical engineering associate professor at the Advanced Institute of Industrial Technology, has developed a thin sheet that, when sat upon, can identify the contours of the user's posterior.

A total of 360 disc-shaped sensors are placed throughout the durable sheet, which is about the size of a typical passenger seat in a vehicle. Each one collects data based on stress points the occupant demonstrates in the way they sit, with the pressure gradient differing for virtually everyone, the paper reports.

Ultimately, Koshimizu's creation establishes the closest resemblance to a finger or thumb print through a "bottom print."

"No additional effort is needed [from the driver]," he told the paper. "All you have to do is sit."

He added that the intended utility of the device will enable car drivers to control their vehicles by preventing unauthorized users from accessing the vehicle.

Kinks still need to be worked out

Even though Koshimizu said the sheet is able to correctly identify its registered owner 98 percent of the time, it will be a while before they are installed in car buyers' next new car purchase . That's because there are a variety of issues that still need to be ironed out, such as determining how the sheet can be situated so that its sensors always work.

There are also questions as to the sheet’s staying power. With vehicle owners keeping their vehicles longer than they ever have—approximately 11 years on average, according to a recent study—the sheet's durability is highly suspect, according to the paper.

An additional factor to consider is the cost, as he notes that the device would put an extra $900 on the sticker price of buying a new vehicle.

There's also some concern as to how many automakers would be interested in equipping their models with the device. Thus far, one major brand has shown interest, Koshimizu told the paper.

*according to the Wall Street Journal on Jan. 18, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/scientist-develops-identification-system-based-on-drivers-behinds-800709752.aspx Thu, 16 Feb 2012 13:10:29 http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-factors-that-may-influence-auto-insurance-rates-800709737.aspx As anyone who has shopped around for auto insurance knows, there's wide variation in how auto insurance plans are priced. Not only do prices vary among providers, they're often different from person to person.

The main reason why this is the case is because several factors are taken into consideration by insurers when assessing a policyholder's premiums. As the Insurance Information Institute* (III) indicates, prices are determined after analyzing several different criteria.

Driving record

One of the main one criteria considered is the policyholder's driving record. As a general rule, the cleaner the record is, the more affordable the plan will be. That's because a history of traffic violations and accidents is an indication to the insurer that the driver may be involved in another accident. That increased risk generally leads to higher premiums, III notes.

Frequency of vehicle use

Another factor is how often the car is used, III indicates. Naturally, if someone spends a great portion of their day behind the wheel, it increases the risk they will be involved in an accident. Thus, driving less often not only saves motorists on gas, but it also generally saves them on premiums.

Where the car will be driven

Insurers also take where the policyholder lives under advisement. III points out that some parts of the country, particularly urban localities, have higher rates of crime than others. This increased risk of vandalism may translate into higher costs.

The insured's age

The policyholder’s age also plays a role. While there are always exceptions, statistics show that younger drivers tend to be in more accidents than drivers who are older. As a result, individuals 25 and under are often charged a bit more, according to III.

The type of car

Just as the make and model of a vehicle affects its sticker price, auto insurance providers also weigh these factors. The size of the engine, cost of repairs and the vehicle's safety record all vary from vehicle to vehicle, leading to disparities in premium prices, III indicates.

Amount of coverage

The extent of an auto insurance plan also influences premiums. III notes that just about every state requires motorists to at least have liability insurance , but some people choose to purchase additional coverage, especially if they have purchased an expensive vehicle. That's because liability insurance is limited in what it provides. For instance, liability protection does not cover a stolen vehicle; replacing the vehicle will have to be paid for out-of-pocket. Comprehensive coverage can help policyholders recover their losses if their vehicle is stolen.

Consumers may want to consult with their insurance agent about additional factors that are considered in the rate assessment process and what they can do to help lower their monthly premiums.

*according to the Insurance Information Institute on Feb. 22, 2012 http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-factors-that-may-influence-auto-insurance-rates-800709737.aspx Thu, 16 Feb 2012 12:57:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/what-happens-when-young-adults-leave-their-parents-insurance-policy-800709704.aspx When young adults graduate from college and start living on their own, several changes result that differ significantly from when they were living with their parents. Not only do they start taking on added responsibilities, but their financial obligations become more significant as they start to pay for their own rent, food and car.

Kiplinger.com* indicates something else they do is start paying for their own auto insurance, as insurers often require young adults who were originally under their parents' plans to buy their own policies.

Perhaps because of its ease or parents' influence, these young adults often sign up for their own policy with the same provider they had under their mom and dad.

But as the source indicates, it pays to shop around.

"Even if you're happy with your policy, it's a good idea for anyone of any age or life stage to examine his or her coverage now and then to make sure he or she is getting the best deal," the financial news periodical indicates. "But it's especially important for young adults because several factors that go into calculating your rate are in flux in your twenties and thirties."

It pays to get older

Advancing in age is particularly beneficial for young policyholders, as the source indicates. Young drivers tend to have the highest rates, as statistics suggest teenagers are involved in traffic accidents more frequently than people who are older. The older individuals get, the more likely it is their rates will decline, provided they have a good traffic safety record.

Establishing good credit can help policyholders save

The building of credit can also have influence on premiums. Kiplinger.com notes that because young people often have limited credit, it can initially result in higher insurance rates. But as younger policyholders age and consistently make their payments on time, insurers often respond favorably by lowering rates.

Graduating from college may yield savings

Not only does getting older and having strong credit work in a young policyholders favor, graduating from college can also play a role in lower rates. Kinglinger.com cited how insurers look upon college graduates favorably, especially those with advanced degrees. Citing a study from Insure.com, the source indicates jobs that require graduate work tend to have the lowest rates.

Insurance shopping has never been easier

Kiplinger.com says the internet has made it easier than ever to shop for insurance. There's a wide variety of comparison websites, which price and contrast various providers and estimate what policyholders’ costs will be based upon certain factors they fill in, such as vehicle type, age and residence. However, some providers require that policyholders contact them directly.

Either way, insurers have increased the ways in which policyholders can obtain auto insurance coverage and the ways in which they can lower their monthly premiums.

*according to Kiplinger.com on Jan. 31, 2012
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/what-happens-when-young-adults-leave-their-parents-insurance-policy-800709704.aspx Thu, 16 Feb 2012 12:38:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-push-fuel-efficient-hybrids-toward-consumers-800703569.aspx President Barack Obama's recent announcement of new fuel economy standards may be one of the many contributing factors that have led automakers to push consumers toward more fuel-efficient vehicles, such as hybrid cars. The push to "go green" has been in the works for a long period of time, but analysts reveal the number of Americans who are actually switching to more energy-efficient vehicles is still extremely low.

According to NPR*, less than 1 percent of vehicles on the road today are hybrids and sales of these energy-efficient models only represent 3 percent of 13 million vehicles sold in the U.S. But in the coming years, automakers are likely to boost their marketing efforts to promote these new models, namely due to new fuel economy standards. The Obama administration plans to double the current miles per gallon standard from 27.3 mpg to 54.5 mpg by 2025. The regulations would apply to 2017 to 2025 vehicle models.

Environmentalists, policymakers and automakers have shown broad support for the new fuel economy standards, which is expected to provide consumers more savings at the pump and increase market competition between automakers.

"By setting a course for steady improvements in fuel economy over the long term, the Obama administration is ensuring that American car buyers have their choice of the most efficient vehicles ever produced in our country," said Lisa Jackson, administrator for the Environmental Protection Agency. "That will save them money, reduce our nation's oil consumption and cut harmful emissions in the air we breathe."

Consumers may not be ready for the change

Despite greater fuel efficiency and increased marketing efforts, many analysts say consumers may remain hesitant to purchase hybrids due to the high purchase price. Hybrids tend to carry price tags that are thousands of dollars more than traditional gas vehicles, Brian Moody of AutoTrader.com told NPR. In addition, some legislators are not on board with Obama's proposals because the new plans will likely increase consumer's purchasing costs by $2,200, according to USA Today**. However, the Obama administration has stated that although vehicle costs may rise by that amount, consumer fuel savings would average out at $6,600, leaving drivers with overall savings of $4,400.

In addition, there are a number of vehicles that already meet the new fuel-efficiency standards, such as the Toyota Prius, Ford Fusion hybrid, Chevy Volt, Nissan Leaf, Honda Civic hybrid and Hyundai Sonata hybrid, USA Today reports.

"Our surveys show car buyers want better fuel standards, particularly because they want to spend less on gasoline. These standards put us on the right track toward the development of affordable, quality cars that use less gas," said Shannon Baker-Branstetter, policy counsel for Consumers Union.

*according to NPR on Nov. 22, 2011

**according to USA Today on Nov. 18, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-push-fuel-efficient-hybrids-toward-consumers-800703569.aspx Wed, 08 Feb 2012 15:52:47 http://www.allstate.com/insurance-industry-news/auto-insurance-news/compact-vehicles-popularity-gaining-on-midsize-sedans-800703303.aspx Based upon car sales data over the past several years, midsize sedans—like the Toyota Camry, Honda Accord and Ford Fusion—have consistently been the favorite class of vehicles for people who are in the market to buy a new car. But recent sales trends suggest consumers are opting for smaller models.

According to The Associated Press, compact models have become hot commodities, with more car enthusiasts snapping them up because of their fuel efficiency and affordability.

The trend toward smaller vehicles isn't likely to abate any time soon. In fact, according to a study cited by the AP from marketing information firm J.D. Power and Associates, for the first time in more than 20 years, compact cars are anticipated to outsell midsize models as early as this year.

While high gas prices and low-interest financing offers are some of the most significant reasons as to why more people are trending smaller, automotive experts tell the AP that the trend can't be pinpointed to one thing.

Compact models have improved in many ways

For example, one of the reasons experts believe smaller cars have become in vogue is because automakers are equipping them with more features, where as before, they tended to have only the most basic of features. Today, however, AP notes that car buyers can get a Nissan Versa with navigation system capabilities for around $15,000.

Another reason why is because smaller cars aren't as small as they used to be. The AP says the Ford Focus is now eight inches longer and five inches wider than the Ford Escort it replaced 10 years ago. Thus, buyers can get as much room as they can in a midsize car but at a cheaper price.

Satisfaction with compact models may also be playing a role. According to Consumer Reports' annual owner-satisfaction survey, the Chevrolet Volt edged out perennial favorites like sports cars as the vehicle more people said they would "definitely" buy again if given the choice. An overwhelming 93 percent of Volt owners said they buy another one, beating out the Dodge Challenger and Porsche 911, which earned owner-satisfaction scores of 91 percent.

"These models reflect a larger trend we've seen in recent years: Sporty cars and fuel-efficient cars with alternative drivetrains tend to generate more enthusiasm and loyalty than most other types of vehicles," said Rik Paul, automotive editor for Consumer Reports.

While compact vehicles have gained more than a niche following, that's not to suggest midsize vehicles aren't still popular. As the AP notes, five of the top 10 best-selling vehicles in October were midsize sedans. But with automakers under pressure to make more fuel-efficient models, compact vehicle output is only expected to increase that much more in the years ahead.

*according to The Associated Press on Nov. 26, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/compact-vehicles-popularity-gaining-on-midsize-sedans-800703303.aspx Wed, 08 Feb 2012 12:38:11 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-executives-fearful-of-economys-future-but-project-increased-sales-800703092.aspx There was much hope from analysts across the auto industry following a survey by KPMG in July. At the time, 58 percent of auto industry executives expected the economy to improve during 2012, while 71 percent felt it would completely recover by 2013.

Times have changed and so have the thoughts of most executives who have seemingly taken a 180 degree. Executives responded to the same survey conducted by the audit, tax and advisory firm in October. Based on the most recent results, 58 percent of respondents believe the economy won't recover in 2012 and 73 are doubtful of a full recovery by 2013.

Surprisingly, most executives don't expect the economic factors to interfere with sales growth during the next year. According to the study, 77 percent of executives project profit increases—a 5 percent increase from this past quarter, when overall economic confidence was higher among industry leaders.

"One major finding of our most recent survey are the concerns that executives have over the macro economy, in particular the potential contagion with a European slowdown and the implications on the U.S. economy," Gary Silberg, national automotive industry director of KPMG, said in a statement. "In addition to the uncertainty regarding the global economic environment, auto execs are challenged with intensified competition, pricing pressures and volatile commodity prices."

One factor that executives must face is the rise of trade costs, which had a stark rise from the third to fourth quarters. Due to the instability of the economy, commodity prices have risen and forced companies to become more efficient traders than they were in years past. According to Silberg, most automakers are now primarily focused on cost management and operational efficiency.

"Companies are looking for suppliers they can trust, and suppliers with the ability to 'grow as we grow'," Silberg said.  "The recent events we've witnessed with supply chain disruptions have opened everyone's eyes and have placed supply chain management initiatives squarely in the spotlight."

The auto industry will always be a strong force in American trade, regardless of international or local economic woes. As is evident by KPMG's survey, not even the current recession has auto industry leaders concerned about future sales. Still, it is evident that Americans are more cautious in these times and are holding onto cars longer refraining from new car purchases, which lowers the amount of sales per owner. According to R.L. Polk, the average age of U.S. cars is 10.2 years, the highest it's been in 15 years. http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-executives-fearful-of-economys-future-but-project-increased-sales-800703092.aspx Tue, 07 Feb 2012 21:22:09 http://www.allstate.com/insurance-industry-news/auto-insurance-news/cars-will-have-545-miles-per-gallon-by-2025-800703091.aspx Electric and hybrid cars are commonly seen as the future of the auto industry. The advanced technology within these vehicles allows car owners to reap the benefits of increased gas mileage and few toxic emissions.

Taking this into account, the Obama administration has made a proposal to increase national fuel economy standards by approximately double the current requirement. However, this proposal would only take effect in 2025, The Associated Press* reports. 

The administration came to agreements with 13 major automakers back in July, and now it is reported this plan would probably cost auto dealers $157 billion to complete. This would effectively lower gas costs for consumers nationwide.

U.S. Transportation Secretary Ray LaHood said in a statement that the new standards mandated by the government will be an imperative step forward toward fuel efficiency and reducing foreign dependence on oil, while protecting the environment with decreased emissions.

"We expect this program will not only save consumers money, it will ensure automakers have the regulatory certainty they need to make key decisions that create jobs and invest in the future," LaHood said. "We are pleased that we've been able to work with the auto industry, the states, and leaders in the environmental and labor communities to move toward even tougher standards for the second phase of the President's national program to improve fuel economy and reduce pollution."

Based on the new gas-mileage standards, both cars and trucks would have to average at least 54.5 miles per gallon, which is more than double the amount averaged by cars today.

The regulation will be implemented starting in 2017, when automakers will have to meet certain landmarks leading into the 2025 deadline. According to the Obama administration, car prices may rise by approximately $2,000 per vehicle, but savings on gas will exceed $4,000.

Environmental Protection Agency administrator Lisa Jackson said in a statement that this process has been two years in the making and with the help of automakers, environmental agencies and consumer groups, there will be significant health, cost and technological benefits as a result of a higher gas mileage standard.

*according to The Associated Press on Nov. 16, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/cars-will-have-545-miles-per-gallon-by-2025-800703091.aspx Tue, 07 Feb 2012 21:19:43 http://www.allstate.com/insurance-industry-news/auto-insurance-news/mit-developer-creates-program-to-predict-red-light-violators-800703089.aspx When you approach a green light, all signs may point to go, but there's a chance a risk-taking driver is speeding through a red light perpendicular to you. According to the Massachusetts Institute of Technology, 700 of the 7,000 traffic-related deaths in 2008 resulted from individuals running red lights.

Plainly following the rules of the road can save hundreds of lives every year, which only goes to show that poor drivers have a major and negative impact on our lives no matter how safely we drive.

According to the U.S. Census Bureau, there were 10.8 million motor vehicle accidents during 2009, of which nearly 36,000 individuals died within a year as a result of injuries. MIT believes it can reduce the amount of accidents related to drivers running red lights with its recently developed algorithm.

By calculating a vehicle's rate of acceleration or deceleration, speed and distance from a traffic light, developer Georges Aoude, a former MIT student, reveals his algorithm can determine whether a driver is about to speed through a red light. This information, in theory, could be transferred to other drivers surrounding the traffic light and they would be effectively warned not to cross through the traffic light.

If such a program were installed into standard vehicles or intersections, perhaps a large percentage of unnecessary deaths and accidents could be prevented every year.

The algorithm was put to test in Virginia at a densely populated intersection. After 15,000 vehicles passed through, the algorithm correctly cited red-light violations 85 percent of the time.

"If you had some type of heads-up display for the driver, it might be something where the algorithms are analyzing and saying, 'We're concerned,'" Jonathan How, professor of aeronautics and astronautics at MIT, said in a statement. "Even though your light might be green, it may recommend you not go, because there are people behaving badly that you may not be aware of."

To some degree, drivers that are passing through red lights may be doing so unknowingly. The widespread act of text messaging while driving is regarded as extremely dangerous and some feel it poses a greater threat on the road than driving while intoxicated.

"Driving while talking on the phone has been found to be roughly the equivalent of driving with a blood alcohol count of .08 (percent)," said Judy Reichler coordinator of New Paltz, New York's Stop Distracted Driving organization, according to the Poughkeepsie Journal*. "A driver on the phone is four times more likely to crash than a driver not using the phone, and a texting driver is 23 times more likely to crash."

Many states have banned texting while driving, yet some individuals continue to disregard this law. Drivers should always be aware of their surroundings on the road because an accident has the potential to raise their auto insurance rates.

*according to The Poughkeepsie Journal on Dec. 5, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/mit-developer-creates-program-to-predict-red-light-violators-800703089.aspx Tue, 07 Feb 2012 21:13:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/americans-deal-with-increasing-car-prices-800703088.aspx The United States government and Environmental Protection Agency have proposed legislation which would mandate automakers to develop eco-friendly light vehicles and trucks with at least a range of 54.5 miles per gallon. Both agencies suggest Americans will benefit atmospherically and monetarily. While the new fuel efficiency standards could save car owners $8,000 per year on gas by 2025, the increasing cost of new vehicles may counter that.

The average price of a light vehicle during November was $30,317, according to a report by TrueCar.com. This figure is 4 percent higher than November 2010 and $164 more than October 2011.

"Transaction prices have been creeping back up after a slight decline in August with average new vehicle prices over $30K," Jesse Toprak, vice president of industry trends and insights for TrueCar.com. "We are going to see automakers really push incentives in December to finish the year off strong."

In the past year, both the economic uncertainty in the United States and the aftereffects of the earthquake in Japan hampered auto sales, but recently brands Chrysler, Ford, Nissan and Hyundai reported major sales increases during November, compared to the same month last year, The Associated Press reports.

If the current rate of sales continues, total units sold across the industry would reach 13.6 million for the year, which would be more than 1 million higher than the rate of the first ten months. According to Autodata Corporation, the number of people buying cars climbed 14 percent during November 2011.

A recent boost in the American workforce may prove beneficial for the auto industry. According to the U.S. Census Bureau, the unemployment rate fell to 8.6 percent as employers hired in light of the holiday season rush. Although the recent job expansion is a positive sign for the United States, chairman and chief executive of 3M George Buckley still feels substantial economic recovery in the country may take a couple years.

"The economy is much more likely to grow very slowly than collapse," Buckley told Dow Jones Newswires.

The proposed fuel-efficient standards can only be cost effective if ongoing price increases in the light vehicle industry slow down—otherwise, consumers may defer to buying used cars. http://www.allstate.com/insurance-industry-news/auto-insurance-news/americans-deal-with-increasing-car-prices-800703088.aspx Tue, 07 Feb 2012 21:11:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/american-automakers-take-three-out-of-four-hot-awards-800702351.aspx Faced with stiff competition from the world's leading auto manufacturers, only a handful of vehicles could walk away with the coveted recognition as America's "hottest" rides. And this year, American automakers dominated.

During the second annual Specialty Equipment Market Association Award Show held in Las Vegas in November, American auto manufacturers General Motors, Chrysler and Ford took three of the top four spots in their respective categories. The Chevrolet Camaro, which is owned by GM, was crowned with the "hottest car" title, the Ford F-Series was bestowed with the "hottest truck" award and Chrysler's Jeep Wrangler won "hottest 4x4-SUV." The Fiat 500 got the "hottest sport compact" nod.

Chris Perry, vice president of global marketing strategy for Chevrolet, expressed the company's delight with the Camaro's solid finish.

"After more than two years on the market, the Camaro continues to inspire creativity and Chevrolet is thrilled to see that expressed in all the wonderfully personalized examples here at the SEMA Show," said Perry.

Pitero Gorlier, president of Chrysler subsidiary Mopar, accepted the award on behalf of the Jeep brand. He said one of the reasons why so many people buying a new car choose Jeep is because it is one of the road's most customized vehicles.

Awards determined and judged by specialty-equipment manufacturers

According to Chris Kersting, president and chief operating officer of SEMA, winners at the annual event are based upon how the vehicles are showcased in their respective booths and how well they serve as platforms for customization, according to specialty-equipment manufacturers' judging.

"With each booth vehicle representing one vote, the most prominent models in each category are the winners," he said. "The SEMA Award celebrates these outstanding vehicles that emerge each year at the show."

While organizations like J.D. Power and Associates bestow awards to auto manufacturers based on reliability and the Insurance Information Institute for Highway Safety credits automakers if their vehicles score well in safety tests, SEMA bases its awards on specialty-equipment and how well the companies showcase "this year's coolest products," as SEMA describes them.

"There is no shortage of options for new car and truck buyers," said Kersting. "The ability to accessorize a vehicle often impacts the decision on which vehicle to purchase. The SEMA Award helps guide consumers to the most accessory friendly vehicles on the market by demonstrating the unlimited potential for customization."

The Chevrolet Camaro, Ford F-Series and Jeep Wrangler were rivaled by other American models from Dodge and GMC, but foreign automakers were also well represented, including Toyota, Kia, Honda, Lexus and Subaru. Each category had nine nominees, though the "hottest car" category had eight.

The Jeep Wrangler, Ford F-Series and the Chevrolet Camaro earned awards from SEMA in 2010 as well.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/american-automakers-take-three-out-of-four-hot-awards-800702351.aspx Tue, 07 Feb 2012 13:21:43 http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-kicking-spare-tires-to-the-curb-800702312.aspx As an increasing number of energy efficient cars populate today's roadways, fuel isn't the only thing that automakers are looking to conserve. As Reuters* reports, they're also looking to preserve space and reduce weight by ridding vehicles of their spare tires.

According to the news source, thus far, the trend toward shedding vehicles of spare tires is predominantly taking place at General Motors, but a tire expert for GM believes the trend will expand.

"There are increasing pressures to find alternatives," said Dave Cowger, GM's group manager of tire engineering. "For customers who want an extra wheel, they can get a compact spare as an option. That's the way we try to package it."

Just a few years ago, virtually every vehicle had a spare tire. But through the first 10 months of October, approximately one in five sedans, compacts or other passenger vehicles sold in the U.S. came without a spare as standard equipment, according to data obtained by Reuters from Edmunds.com.

Nation's most popular selling vehicle still has spare tire

Though GM's Cowger believes automakers' shedding of spare tires will increase in momentum, there's still evidence to suggest that the change won't be immediate. For instance, Vince Muniga, spokesman for Chrysler, told Reuters that their vehicles will continue to carry spare tires "as long as the customer expects it." What's more, the U.S.' top-selling passenger vehicle, the Toyota Camry, comes with a spare tire, as do models made by Ford as well as most pickup trucks and sport utility vehicles.

But General Motors maintains that more automakers will opt out of equipping their vehicles with spare tires as 2025 draws closer—the year in which fuel efficiency standards will be doubled to 54.5 miles per gallon. President Barack Obama announced the increased fuel efficiency standards this past summer.

According to industry experts interviewed by Reuters, eliminating a spare tire will help automakers achieve that standard as a spare tire eliminates an average of 25 pounds. The less weight a vehicle has to carry, the more fuel efficient it will be on the roads.

Technology advancements have decreased necessity of spare tires

Not only does spare tire removal free up weight and space, but GM and roadside assistance providers say they're simply not needed like they used to be because of safety enhancements. GM officials point to tire pressure monitoring systems that inform drivers of when their tires need to be serviced or if air pressure is low.

But according to some dealerships, consumers aren't subscribing to the idea of spare tire-less vehicles. Carroll Smith, who runs a Houston-based Chevy dealer, told Reuters that in his experience, consumers believe carrying a spare tire is a wise move, and his showroom often orders extras.

*according to Reuters on November 8, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-kicking-spare-tires-to-the-curb-800702312.aspx Tue, 07 Feb 2012 12:55:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/us-automakers-plan-to-win-auto-sales-in-2012-800696708.aspx Sources report that U.S. automakers will continue their efforts to top Asian automakers in the new year. MSNBC* says that Ford, Chevrolet and Chrysler are depending on new releases to gain sales and market share this year.

According to the new source, Ford is hoping the launch of the next-generation Fusion will make a difference. The newly designed model was set to premier at the Detroit Auto Show in January and reportedly mirrors looks of the Ford Evos. The source says the car could trump other imported midsize cars that have topped auto sales in recent years.

"We see the Americans coming out with a lot of product that's not only new but very attention-grabbing," Aaron Bragman, an automotive analyst told the source. "It's a lot of stuff that's going to make it a lot more difficult for the Japanese to regain market share."

The 2013 Chevrolet Malibu and Chrysler Dart also created buzz ahead of the Detroit Auto Show and are expected to help keep U.S. manufacturers in competition with Japanese automakers who took a fall after a year of natural disasters.

The news source reports that Detroit automakers will also be introducing a variety of vehicles that the market has seen including the renovated Ford Escape crossover and Cadillac's luxury XTS to keep stable in the competition.

Toyota and Honda are relying on the new year to boost auto sales after recent troubles stemming from the earthquake and tsunami that slowed production in 2011. The source says the Japanese auto industry fell short of anticipated production by nearly 1 million units. MSNBC reports the loss of inventory hurt sales with Honda's 1.5 point decline in market share topped by Toyota's drop of 2.5 points, while Detroit automakers ended the year with a gain of around 2 points.

To stay in the competition, the news source says Japanese automakers are also introducing new products and are increasing production at a rapid pace. The Honda Civic has reportedly received mixed reviews while reactions to the Toyota Camry, despite an expensive ad campaign, are also mediocre.

According to MSNBC, the two Asian manufacturers are spending a lot of money on incentives for consumers buying a car  including rebates and low-interest loans in attempts to help increase sales. The source says the companies once criticized competitors for doing the same thing in the past. Detroit makers have reportedly cut back on incentives in 2011 as consumers were won over by compact cars including the Chevrolet Cruze and Ford Focus.

The source reports that if an incentive war was to occur, domestic makers who recently signed contracts with the United Auto Workers Union may have the upper hand in the competition. The contracts reduced the amount of hourly wages and benefits earned by a UAW worker pushing the savings amount to thousands per vehicle. The source says it is an important factor in the combined profits of Detroit automakers reaching nearly $10 billion.

*according to MSNBC on Dec. 28, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/us-automakers-plan-to-win-auto-sales-in-2012-800696708.aspx Tue, 31 Jan 2012 08:35:54 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-hope-super-bowl-sunday-will-lead-to-super-sales-800692193.aspx In an effort to encourage more Americans into buying cars in 2012, automakers will once again be conducting a massive advertising campaign during what is typically the most-watched television event of the year: the Super Bowl.

According to Bloomberg News*, one of these automakers is Hyundai, telling the source that it hopes to produce something similar to what Volkswagen did in last year's NFL championship game, which depicted a young boy trying to start a vehicle telepathically with "the force," while dressed up as the Star Wars character Darth Vader. Unbeknownst to the boy, his father starts the vehicle with a key fob, but the youngster is under the impression his secret powers did the trick.

"[We'd like to] turn the needle a little bit in the direction of more entertainment," John Krafcik, CEO of Hyundai's U.S division, told Bloomberg. "We'd like a little bit more memorability."

Interest in Volkswagen, Chrysler soared after Super Bowl commercials

Volkswagen's clever ad campaign paid dividends. According to Bloomberg, interest in the vehicle that was depicted in the commercial—the VW Passat—surged 70 percent on Edmunds.com when compared to the previous month.

Chrysler was another company whose Super Bowl ad led to positive returns, as its commercial that promoted the Chrysler 200 sedan led to an 87 percent upswing in consumer interest at Edmunds.com.

Jeremy Anwyl, vice chairman of Edmunds.com, told the source that the success of Chrysler and Volkswagen "raises the bar" on what other automakers consider when they decide how to promote their line of vehicles.

"Car companies look at what happened with the 200 and they figure, 'We can do that too,'" said Anwyl.

Other manufacturers reported to taking up advertising space during the Super Bowl include Toyota for its redesigned Camry sedan and Audi, which is made by Volkswagen, Bloomberg reports.

Daimler, Ford among automakers not planning to air ads during Super Bowl

However, other automakers will be sitting on the sidelines come Super Bowl Sunday. Daimler AG's Mercedes-Benz has no spots planned and Ford Motor Company has no advertising intentions, either, the source reports.

Meanwhile, General Motors chief marketing officer Joel Ewanick has been coy about his company's advertising plans, saying in an interview in November that "there are lots of moving pieces" as to how many spots GM will air on Super Bowl Sunday. Executives for the automaker have reviewed at least 100 potential ideas, he added.

*according to Bloomberg on Dec. 17, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-hope-super-bowl-sunday-will-lead-to-super-sales-800692193.aspx Wed, 25 Jan 2012 12:38:06 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-sales-go-out-like-a-lion-in-2012-800692188.aspx In the last two months of 2011, consumers showed their love for buying cars, as vehicle sales surged both in November and December.

Chrysler purchases jump 45 percent in November

According to global information services firm IHS, Chrysler, Hyundai, Kia and Volkswagen all posted significant gains in November, with Chrysler seeing sales rise 45 percent compared to the same month in 2010. It marked the automaker's best sales month since filing for bankruptcy in 2009.

But Chrysler's success was just one of several brands that had a solid sales month, as Hyundai, Nissan and Ford all posted sales increases of 13 percent or more.

"The industry sales rate has exceeded 13 million in each of the last three months," said Ken Czubay, head of marketing and sales at Ford. "This suggests the current momentum is not an aberration."

Also suggesting the high rate of car sales haven't been an anomaly were the pace of vehicle purchases in December.

Car sales projected to surpass 1 million vehicles in December

According to sales projections developed by J.D. Power and Associates, new-vehicle retail sales are projected to total more than 1 million units sold in December, marking the first time more than a million vehicles have been sold in one month since the government-sponsored "Cash for Clunkers" program in August 2009.

"The industry has managed through another series of external shocks and is in a healthier position as the year closes," said John Humphrey, senior vice president of global automotive operations at J.D Power. "Retail light-vehicle sales in December are performing well month-to-date, even as total incentive spending averages $2,700, down 10 percent from December 2010."

Strong sales haven't been experienced by all automakers, however, particularly among Japanese brands. IHS reports that Honda's pace of sales in November dipped 6 percent on a year over year basis while Toyota model purchases are down 8 percent in year-to-date sales.

Toyota to partner with BMW, Tesla for engine production

Hoping to improve its profitability in 2012, Bloomberg News* reports that Toyota has teamed with BMW to start developing vehicles fitted with diesel engines. In addition, in an effort to stir interest in its electric car offerings, the company wants to equip its electric models with battery packs made by Tesla Motors.

Jeff Liker, an engineering professor at the University of Michigan who specializes in Toyota research, told Bloomberg that there's always some risk when car companies decide to unite on a project. Akio Toyoda, CEO of Toyota, apparently believes the benefits outweigh the costs, he said.

*according to Bloomberg on Dec. 16 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-sales-go-out-like-a-lion-in-2012-800692188.aspx Wed, 25 Jan 2012 12:34:34 http://www.allstate.com/insurance-industry-news/auto-insurance-news/driving-without-insurance-can-land-you-in-trouble-in-some-states-800692166.aspx Insurance is one of those necessary and beneficial policies Americans purchase to safeguard their assets and carrying sufficient auto insurance can protect you from shelling out thousands of dollars in the event of a car accident. However, some states, such as Virginia, do not require that drivers purchase an auto insurance policy before they hit the highway. However, law enforcement officers are still writing tickets for drivers who cannot provide proof of insurance.

A recent article in the Virginia Lawyers Weekly*reports that police officers are asking for license, registration and proof of insurance when pulling over drivers—and issuing tickets to drivers who lack the latter. According to the publication, the state General Assembly has vetoed numerous bills that would require drivers to carry auto insurance, but many drivers continue to face sizable fines and tickets for failing to purchase a policy. Existing laws give drivers the option of purchasing a policy or paying a $500 uninsured motor vehicle fee to the Department of Motor Vehicles, the news source explains. Drivers who refuse to do either can be charged with a misdemeanor crime and face fines up to $500.

Lynchburg, Virginia, Commonwealth attorney Michael Doucette notes that there is a misconception among residents about the practice of imposing tickets for lack of auto insurance.

"The offense is not driving an uninsured motor vehicle," Doucette told the publication. "The offense also is not failure to have proof of insurance while operating the vehicle on the highways. Virginia allows the operation of uninsured motor vehicles on the highways. Rather, the offense is having an uninsured motor vehicle and not paying the uninsured motorist fee of $500 per year."

Benefits of purchasing insurance

Many drivers cite cost as the reason for driving without insurance. But the overall costs of failing to purchase coverage can be much higher than auto insurance premiums in the event of a car accident, weather-related damages or injury. In Virginia, for example, uninsured drivers may not only face fines, but the suspension of their license for a short period of time. In addition, there are a number of factors and affordable insurance options that can keep costs low and drivers financially protected.

*according to Virginia Lawyers Weekly on Dec. 19, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/driving-without-insurance-can-land-you-in-trouble-in-some-states-800692166.aspx Wed, 25 Jan 2012 11:53:30 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-insurance-claims-costs-jump-800691173.aspx In a reversal of recent trends, auto insurance claim costs are on the rise throughout much of the country, a new report reveals.

According to the Insurance Research Council's Trends in Auto Injury Claims report, which used private passenger auto claim data from a variety of reporting agencies, the rise in costs is mainly attributable to a surge in injury claims, which have actually been on the increase for the past several years. However, because claim frequency had diminished, these rising costs hadn't been given much consideration. But the most recent data suggests there's been a jump in the prevalence of claims as well.

PIP claims have also proliferated

Further compounding the issue has been an increased incidence of personal injury protection claims. According to the IRC, PIP claims rose more than 18 percent between 2008 and 2010. Meanwhile, bodily injury claims stayed constant in 2010. However, the IRC noted that the stabilization in BI claims marks the first time in 16 years that the rate did not decline on a year-over-year basis.

While PIP claims at the national level have elevated, the IRC indicates that most of them originated from three states that have PIP laws on the books, those being Florida, Michigan and New York. In all of these states, PIP claims have skyrocketed, jumping as much as 120 percent in Michigan since 2000. And since 2008, claims costs have risen 62 percent in Florida. Claims costs in the Empire State have fluctuated over the past few years, primarily because of suspicions that the system is being abused, the report found.

PIP, or what's often referred to as "no-fault" coverage, pays out an insurance claim regardless of who is to blame for the accident. In New York, Florida and Michigan—as well as several other states—PIP coverage is mandatory.

Elizabeth Sprinkel, senior vice president of IRC, said the study's results are bad news for the industry and policyholders in general.

"These are not encouraging findings for insurers or drivers," said Sprinkel. "While we hope these findings represent temporary conditions, we can’t be sure that is the case and can't afford to ignore the factors driving rising claim costs." http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-insurance-claims-costs-jump-800691173.aspx Tue, 24 Jan 2012 13:19:37 http://www.allstate.com/insurance-industry-news/auto-insurance-news/how-the-saab-bankruptcy-affects-owners-and-buyers-800688038.aspx Whether car owners are new to Saab ownership or have owned one for many years, they may have been disappointed to hear that the Swedish automaker was filing for bankruptcy after a potential deal involving Chinese investors failed to materialize.

As a result of the liquidation, many Saab owners may be curious about how this will affect them. To help, The New York Times recently compiled what some of their most pressing concerns may be.

Will warranties still be honored?

One of these may be how the bankruptcy will affect Saab owners who purchased a car warranty through the company. According to a statement released by General Motors, Saab's parent company, GM will "take necessary steps to ensure that remaining warranty obligations on Saab vehicles marketed by GM in the United States and Canada will be honored." James Cain, GM's spokesman, told the Times that this equates to about 48,000 vehicles in the U.S. alone.

He added that Saab owners who need to have repair work done should take their vehicles to their nearest GM dealer and GM will then reimburse the dealerships.

What happens if there's a recall on a Saab model?

Another question Saab owners may be curious about is who will handle safety problems should there ever be a recall on a Saab model. Cain told The New York Times that GM would be responsible for all recalls on vehicles that have been sold through the 2009 model year. This may pose an issue for Saab owners whose vehicles were built in 2010 or 2011.

However, in an email written to the Times, Karen Aldana, a spokeswoman for the National Highway Traffic Safety Administration, said the safety agency was working with the Department of Justice to ensure that the safety of Saab owners would be a primary concern in bankruptcy court filings that are scheduled to take place in the not-too-distant future.

Will Saab parts continue to be made?

Because of the bankruptcy filing, owners may be wondering if parts made specifically for Saabs will continue to be produced. Tim Colbeck, the chief operating officer for Saab Cars North America told the paper that the Swedish company that makes Saab parts is not directly affiliated with the automaker. Since it was unaffected by the bankruptcy filing, owners should have no issue with getting parts.

"My understanding is that for the foreseeable future there is no worry about there being parts availability issues," added Kurt Schirm, who serves as the chairman of the Saab National Dealer Council.

Finally, people who have had never driven a Saab may be the unwitting beneficiaries of the Swedish automaker's demise when looking to buy a new car. Colbeck told the paper that dealers may offer rock bottom prices on Saabs to sell off the 2,400 models that are at various Saab dealerships, but it will be difficult because certain model years no longer carry factory-backed warranties.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/how-the-saab-bankruptcy-affects-owners-and-buyers-800688038.aspx Thu, 19 Jan 2012 12:51:17 http://www.allstate.com/insurance-industry-news/auto-insurance-news/efficiency-of-2012-ford-focus-electric-surpasses-100-mpg-equivalent-800688014.aspx The adoption of fuel-efficient vehicles has been a slow one among consumers, but automakers are working hard to unveil new options and make the market more competitive. Ford is staying in the race to provide the most efficient and cost-effective products to consumers, and recently announced that its 2012 Focus Electric exceeds other 100 mpg equivalents. This accomplishment makes it the first five-passenger vehicle to reach the 100 mpg mark.

The new Ford electric vehicle is expected to host a number of other benefits that will allow it to remain competitive, the first of which is its cooling and heating system which maximizes its efficiency. The lithium-ion battery is equipped with a system that regulates the temperature of heating and cooling liquids based on outside temperatures. During cold weather, the liquid is heated to warm the battery and alternately cooled on warm days to absorb heat from the battery.

In addition to its heating and cooling system, the time it takes to fully charge the vehicle is significantly lower than that of its competitors. The 2012 Focus Electric can fully charge in no more than four hours, half the amount of time it takes the Nissan LEAF to charge.

"Focus Electric's innovative faster charging technology can help customers save money and get much more out of the car in a busy day of running around town and recharging between stops," said Ford Electrification Programs and Engineering director Sherif Marakby.

Ford also said the fuel-efficiency the new vehicle offers to consumers will likely play a role in the car's success. Basing its calculations on a $3.30 gas-per-gallon cost and measuring energy in kilowatt-hours, the automaker notes the cost to drive 80 miles would come to $2.10 vs. $8.80 it would cost for an average 30 mpg gas-powered vehicle.

Expected popularity

Ford expects the new vehicle to gain a strong following and already began taking orders for the vehicles in November from dealers in California, New York and New Jersey. The automaker expects to expand the availability of the Focus Electric into 15 other markets following a production increase.

The new vehicles are priced at $39,200; however, consumers who purchase the cars would be eligible for a $7,500 federal tax credit, Cars.com reports*. The Focus Electric will also be equipped with a range of technology and features to add safety and comfort to drivers, including the MyFord Touch navigation system, SmartGauge and mobile applications.

"Focus Electric was designed to deliver the same dynamics and quality of a conventional Ford Focus," said Eric Kuehn, Focus Electric chief nameplate engineer. "It shares many of the same premium components and features as its gasoline-powered counterpart while delivering distinct efficiencies and a uniquely exciting driving experience."

*according to Cars.com on Dec. 15, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/efficiency-of-2012-ford-focus-electric-surpasses-100-mpg-equivalent-800688014.aspx Thu, 19 Jan 2012 12:32:53 http://www.allstate.com/insurance-industry-news/auto-insurance-news/used-car-buyers-rely-on-quality-rather-than-price-800686940.aspx Buying a used car can be tricky business and many consumers consider a range of factors before even taking the vehicle for a test drive. Although used cars offer many drivers the benefit of affordability, it turns out that this may not be the leading factor most Americans prioritize when shopping for a used vehicle. A new study released by CarMax.com shows 45 percent of all drivers look at quality as the most important factor in their decision, over price and auto safety.

Men and women were somewhat split on the issue of quality, with 53 percent of men prioritizing it vs. 37 percent of women, according to the study. Overall, 22 percent of shoppers said price was the most important factor when shopping for a vehicle, and safety concerns came in third, with 15 percent prioritizing this factor. Seven percent of car shoppers listed resale value as their prime concern and six percent reported fuel-efficient vehicles and environmental consciousness as the most significant influence.

"Choosing a vehicle that balances high quality with a fair price provides the value that consumers are looking for," said Carmax.com's Tracy Hanson, Nashville region vice president of service operations.

What to look for when shopping for a used vehicle

Determining whether a used car is of good quality can be tricky, but there are a number of components you can examine to help you decide if it's the right car for you. A recent Consumer Reports article highlighted that recent makes and models are sturdier and more reliable than they used to be, noting that five-year-old vehicles they examined in recent surveys had one-third fewer problems than five-year-old cars they examined in the 2005 survey. This means that more current models may pose fewer auto safety concerns and afford drivers with more reliability and longevity.

In addition, looking at the vehicle's repair history can shed some light on how much money a used car buyer can expect to shell out in repairs and fixes down the road, according to Consumer Reports. This is largely because a used car may no longer fall under the comprehensive warranty coverage it's typically granted within the first few years after being purchased, meaning it will be up to the new owner to cover the costs of repairs. It's also important to understand whether the car may need special-order parts in the future for common repairs and how expensive these parts are likely to be. Although common brake jobs or new tires may not be expensive, the costs of recurrent engine or mechanical problems may outweigh the low price of the vehicle itself.

Lastly, find out how much it may cost to insure the used vehicle as well as which type of auto insurance policy you may need to purchase it. http://www.allstate.com/insurance-industry-news/auto-insurance-news/used-car-buyers-rely-on-quality-rather-than-price-800686940.aspx Wed, 18 Jan 2012 13:05:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/understanding-deductibles-may-save-money-800681539.aspx In a money-tight economy, drivers and homeowners who are knowledgeable about their insurance deductibles get the most out of their insurance dollars. A recent report from the Insurance Information Institute outlines the basics of insurance deductibles, so current and potential auto and homebuyers can make smart choices when it comes to their policies.

A deductible, which is the amount deducted from an insured loss, serves an important role of the insurance contract and represents the share of risk between the insurer and the insured. When repairing or replacing, the amount of the deductible comes out of the owner's pocket.

According to the III, the deductible can be either a dollar amount or a percentage of the total amount of insurance on a policy. Generally the larger the amount that is deducted, the less a consumer pays in premiums for the insurance policy.

Recently, deductibles have been increasing, especially in states that are more vulnerable to major catastrophes including hurricanes. Sometimes special deductibles apply for homeowners insurance claims when damage is caused by a hurricane, but these deductibles are generally higher and often take the form of a percentage of policy limits.

Raising your deductible is one of the best ways to save money on homeowners or auto insurance  says the source. The only catch is that if you do have a loss, the larger amount will be deducted from your insurance claim and the person insured is responsible for the difference.

Deductibles also differ by company and state, since insurance is state regulated and insurance companies must abide state laws. III says that in many states, a range of deductibles can be found so when comparing policies you should always ask about deductibles.

There are typically no deductibles for a liability portion of a policy as deductibles apply to property damage. Auto policies offer a deductible for the optional comprehensive or collision coverage but not liability, says III. Additionally, homeowners deductibles apply to damage to the structure of the house or personal possessions but not if a homeowner is sued or a medical claim is made by someone injured on the property.

Aside from understanding the basics of how deductibles work, the source says it is equally important for drivers and homeowners to take into consideration the price of insurance when considering a new purchase.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/understanding-deductibles-may-save-money-800681539.aspx Wed, 11 Jan 2012 09:08:40 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-sales-increase-as-economy-improves-800681531.aspx The Associated Press* reports that people are finally replacing used cars and trucks they kept during the economic downturn as three major companies report double-digit gains from sales in November last year, Chrysler, Ford and Nissan. Buyers were offered good deals which improved confidence in the economy and provided a push to trade in cars which people had held on to.

Dealers also reportedly offered good terms for leasing because low interest rates and high used-car values make for greater value when returned.

Chrysler Group's sales rose 45 percent, led by the increase in sales of the Jeep Compass. Jeep brand sales reportedly went up 50 percent and sales almost doubled due to a strong demand for sedans. Chrysler also reported that it has raised incentives for car purchases to around $3,300 per vehicle, a six percent increase from the previous month.

General Motors reports that car buyers  were most attracted to small cars and pickup trucks as sales of the Chevrolet Cruze increased 54 percent and the Silverado jumped 34 percent. The source reports that their sales were up 7 percent overall.

Ford Motor Company's sales also rose 13 percent, with much credit to the sale of the new Explorer, whose sales tripled from November last year.

Some analysts say that last month's sales pace was the fastest in over two years and project that the annual rate for November to range between 13.3 million to 14 million vehicles sold, a much greater amount than the 12.6 million throughout 2011 so far. The source reports that sales could reach the 14.1 million annual pace from August 2009 when the government offered rebates for drivers to trade in for cars better on gas—the so-called Cash for Clunkers program.

The source reports that auto manufacturers have been anticipating an improvement in sales, because many have kept their cars to save money while the economy has added a financial pressure. One survey reports that the average age of a car is between 10 to 11 years old. The increase in auto sales also mirrors the recently reported improvement of consumer confidence, which reached its highest level last month.

*according to The Associated Press on Dec. 1, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-sales-increase-as-economy-improves-800681531.aspx Wed, 11 Jan 2012 08:58:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-and-driver-announces-10-best-cars-of-2012-800681526.aspx Consumers who are considering buying a new car can now use Car and Driver magazine's recently released 10 Best list of cars on the market. Cars that make the list must meet specific requirements including being under $80,000 and the magazine says they must meet standard needs while still satisfying wants.

"As in years past, the cars on this year's list represent the best overall vehicles on the market today," said Eddie Alterman, editor-in-chief of the magazine. "Out of 68 contenders these are the ones that consistently perform the best, are a good value and are engaging fun-to-drive vehicles."

Many luxury models

The Audi A6/A7 3.0T Quattro is currently on its seventh remake and made the list as the magazine says passion and persistence win, always. The source recognizes the A6 for its gratifying steering and structure while, giving love to the A7 version duplicate stating that both have a comfortable and quiet ride.

The BMW 3-series/M3 held its ground as it reaches 21 consecutive years on the magazine's top 10. The source states that the only threat to the car's title as the one is BMW's own elimination of the driver-car connection.

The more expensive Porsche Boxster/Cayman made the list, and while offering only two seats, both cars have become stronger more flexible. The Boxster has made the top 10 twelve times and this year is marks the Cayman's sixth consecutive ranking. According to the source, Porsche will be unveiling a new Boxster in the spring.

Despite its slow speed going from zero to 60, the Cadillac CTS-V made the list and was described as a Corvette with extra seating. A faster Mazda MX-5 Miata offers the experience of a roadster without a luxury price tag. The source says racers love its balance and reliability.

Muscle cars, compacts also make list

The source also gives credit to the Ford Mustang GT and the upgraded Boss 302. The magazine credited its speed, horsepower and standard-setting design for muscle cars for its spot on the list.

Other cars that made the top 10 include Ford's Focus and Honda's Accord and Fit. The Focus was noted for its ride-handling balance and inside materials and utility while the Accord's sporty-sedan combination adds to its precision. The small Fit gained notoriety for its engineering. http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-and-driver-announces-10-best-cars-of-2012-800681526.aspx Wed, 11 Jan 2012 08:48:59 http://www.allstate.com/insurance-industry-news/auto-insurance-news/chevrolet-volt-receives-rave-reviews-from-owners-800680661.aspx While few people have bought the Chevrolet Volt—General Motors recently admitted that it will fall short of selling 10,000 units by the end of the year—those who have purchased one swear by them, according to the results of a new survey.

Chevy Volt scored a 93 percent

In Consumer Reports' annual owner satisfaction survey, the Chevy Volt was the top scoring model, edging out the V8-powered Dodge Challenger and Porsche 911 by receiving a solid 93 percent to the Dodge and Porsche's 91 percent.

"These models reflect a larger trend we've seen in recent years: Sporty cars and fuel efficient cars with alternative drivetrains tend to generate more enthusiasm and loyalty than most other types of vehicles," said Rik Paul, automotive editor for Consumer Reports.

Approximately 314,000 subscribers responded to the owner-satisfaction survey and were asked to score their vehicles based on price, reliability, comfort and enjoyment. In short, if they were in the market to buy a new car again, how likely would they be to buy their car?

Twenty-seven models received top owner-satisfaction reviews, which Consumer Reports defined as those where at least 80 percent of respondents said they would "definitely" buy their car again if given the opportunity. Fuel-efficient models tended to be a theme among vehicles that were highly favored, as the Ford Fusion Hybrid, Lincoln MKZ Hybrid, Lexus CT 200h and Toyota Prius all received stellar reviews.

Also faring well were sports cars, particularly those made by Audi, Chevrolet and Ford.

"The appeal of power also extends into mainstream models, as owners of turbocharged versions are often more satisfied than owners of conventional versions of the same car," the report concluded.

Owner-satisfaction survey performed prior to safety investigation

While the Volt topped them all, Consumer Reports noted that the survey was conducted before the National Highway Traffic Safety Administration announced it was conducting a safety investigation into the electric vehicle. During crash tests, the lithium-ion battery used to power the vehicle caught on fire. NHTSA has been investigating the cause of the fire. If it's determined that other Volts can catch fire, a safety recall will be issued. However, the safety agency says it has not received any reports of battery-related fires in real-world settings for the model.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/chevrolet-volt-receives-rave-reviews-from-owners-800680661.aspx Tue, 10 Jan 2012 12:21:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-industry-sees-year-end-demand-for-vehicles-800680647.aspx Automakers are likely to see inflated sales figures at the year's end, as consumer demand for a range of vehicles has skyrocketed these winter months. Vehicle sales have surged in recent months and demand has not been specific to a particular brand or model, according to a recent Businessweek report*. Americans are buying cars ranging from gas-guzzling trucks and sedans to hybrids and fuel-efficient models.

Industry analysts say the surge in sales, which are expected to reach 12.8 million this year, is largely due renewed consumer confidence in the economy, rather than discounts, incentives and special auto deals. Consumer confidence spiked in November to levels not seen since July, rising to 56.0 from October's 40.9.

"The industry has managed production levels to where demand was this year and didn't get ahead of itself," LMC Automotive analyst Jeff Schuster told Businessweek. "With inventory now being replenished, it's not a situation where we're seeing too much production or seeing heavy incentive use."

Other professionals, such as Ford's senior economist Jenny Lin, told the news source falling gas prices have also provided some financial relief to drivers, making it more feasible to purchase new vehicles.

November sales for most automakers, such as Toyota, Nissan and Ford, rose significantly, with Toyota reporting a 49 percent increase in sales of its Prius Hybrid model alone. However, Honda sales lagged behind that of its competitors, largely as a result of the damage it suffered from earthquakes and floods this year. The Japanese automaker recently told MSNBC** that it plans to unveil three new vehicles at the Detroit Auto Show and is currently working on a variety of green engines to boost its fuel-efficient models.

Future sales projections

Due to renewed sales across a broad-based range of companies, makes and models, three analytics firms - Jefferies Inc., IHS Automotive and TrueCar.com - say they may revise their 2012 sales projections to accommodate the changes. Professionals say annual sales may top 13.5 million light vehicles in 2012, up from 11.6 million light vehicles in 2010 and 10.4 million in 2009, the news source reports.

*according to Bloomberg Businessweek on Dec. 12, 2011

**according to MSNBC on Dec. 12, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-industry-sees-year-end-demand-for-vehicles-800680647.aspx Tue, 10 Jan 2012 12:09:33 http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-and-bmw-forge-partnership-to-develop-new-battery-technology-800679652.aspx New fuel-efficiency standards that are slated to impact vehicles manufactured between 2017 and 2025 have encouraged auto manufacturers to make improvements to their existing plans and adopt new technologies to remain competitive. Toyota and BMW are the latest automakers to plow ahead in the industry, announcing a collaboration that will focus on researching new technologies dedicated to improving lithium-ion batteries.

In a statement, Toyota executive vice president Takeshi Uchiyamada expressed his sentiment that the partnership will aid in the production of new technologies that will improve existing battery models. Industry experts say battery development is one of the trickiest and more complicated aspects of electric vehicle production and strides in this area could prompt more consumers to purchase electric vehicles, the New York Times reports.

"We think that this collaboration will allow for development of next-generation batteries to be done faster and at a higher level," said Uchiyamada.

BMW board chairman Norbert Reithofer also noted the partnership would allow the automakers to provide more environmentally-friendly products to their customer bases.

"Toyota is the leading provider of environment-friendly series technology in the volume segment and the BMW Group is the most innovative and sustainable manufacturer of premium automobiles," Reithofer said in a press release. "We are now joining forces to further develop environment-friendly technologies and to expand our innovation leadership in each of our segments."

Other Toyota collaborations

Toyota's partnership with BMW falls on the heels of another agreement it recently made with Ford Motor Company. The automakers will work together on hybrid powertrain development for light trucks and sport utility vehicles. Analysts say the collaboration makes sense for the two automakers, as their existing powertrain systems are similar and will allow them to research and develop new technologies at a quicker and more cost-effective pace, according to the Times.

"This agreement brings together the capability of two global leaders in hybrid vehicles and hybrid technology to develop a better solution more quickly and affordably for our customers," said Ford's global product development vice president Derrick Kuzak.

In addition, the technology is expected to help both automakers fall more in line with the new fuel-economy standards and make their products more competitive in the evolving auto market. http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-and-bmw-forge-partnership-to-develop-new-battery-technology-800679652.aspx Mon, 09 Jan 2012 13:28:19 http://www.allstate.com/insurance-industry-news/auto-insurance-news/nhtsa-opens-investigation-into-chevy-volt-engine-fires-800679609.aspx Since the Chevy Volt was unveiled to the public in December 2010, it's failed to live up to sales expectations. In fact, according to recent sales data from its maker, General Motors, the electric model will not reach its 2011 goal of selling 10,000 Volts by the end of 2011. After a recent announcement by the National Highway Traffic Safety Administration, safety concerns may hamper sales in 2012.

According to the NHTSA, the agency has launched an investigation into the safety of Chevrolet Volts, as there have been indications they may pose a fire risk.

Fire originated from Chevy Volt's lithium-ion battery

The NHTSA discovered these potential problems in May after putting the Volt through a battery of safety tests under its recently developed New Car Assessment Program. During the NCAP, the Volt was intentionally crashed in order to assess the vehicle's ability to protect passengers involved in a side collision. However, three weeks after it was smashed, a fire developed in the Volt's battery after the coolant line had been ruptured. An investigation by the NHTSA determined the fire resulted from the lithium ion batteries that power the model.

After consulting General Motors and the Department of Energy about the fire, the organizations tried to recreate the test on other Chevy Volts to see if the fire was an isolated incident or if the problem was endemic. While the follow-up test did not result in a fire, there was a temporary increase in temperatures recorded in the cars' batteries.

As a result of this, the NHTSA is a conducting a thorough analysis of other Chevy Volts to see whether accidents increase the risk of engine fires.

While the agency says the investigation could lead to thousands of Volts being recalled, it's too early to know whether one will be instituted. In addition, the NHTSA also stated there have been no reports of motorists using a car fire extinguisher after Volt bursting into flames, as no fires have been reported in real-world settings.

Honda, BMW recall thousands due to reported fires

That's not to say they can't happen, though, as this isn't the first time the NHTSA has conducted an investigation into cars and fires.

As The Detroit News* reports, as recently as October, the NHTSA opened an investigation into 36,000 BMW Mini Cooper S vehicles—model years 2007 to 2008—after receiving 12 reports of engine fires, five of which totaled the vehicles. In September, Honda initiated its own recall of more than 80,000 2006 CR-V vehicles after the NHTSA received five reports of fires involving the vehicles' power window master switches.

Other car companies that have had fire investigation inquiries within the past 10 years include Chrysler, Volkswagen, and Ford, The Detroit Press reports.

*according to The Detroit News on November 29, 2011 http://www.allstate.com/insurance-industry-news/auto-insurance-news/nhtsa-opens-investigation-into-chevy-volt-engine-fires-800679609.aspx Mon, 09 Jan 2012 12:44:01 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-join-forces-to-develop-recharging-stations-for-multiple-evs-800644116.aspx Perhaps one of the reason electric vehicles sales haven't risen as highly as automakers expected is due to the inconvenience of charging stations. Unlike gas stations, electric vehicle recharging stations are not as abundant, nor as accommodating. However, a group of automakers aims to reverse this trend and progress the EV industry stance.

Seven automakers are joining to create a global standard for electric vehicle fast charging systems that aims to cut the time it takes for drivers to recharge their electric cars.

The system uses a charging device with a basic electronic setup to give the vehicles ability to communicate with a charging station. Vehicles from automakers Audi, BMW, Daimler, Ford, General Motors, Porsche and Volkswagen would all be able to charge at the same stations.

"The development of a common charging approach is good for customers, the industry and charging infrastructure providers," the companies said in a joint statement. "Standardization will reduce build complexity for manufacturers, accelerate the installation of common systems internationally and most importantly, improve the ownership experience for EV drivers."

Nissan stated it would cut the cost of its home charging system for the Leaf electric vehicle line in order to accommodate car owners. This move may be to attract more customers in a struggling electric vehicle market.

GM plans to produce a fully electric Chevrolet Spark that will be sold in U.S. and global markets in 2013.

Jim Federico, global vehicle chief engineer for EVs at Chevrolet, told The Los Angeles Times that the Spark EV gives consumers who reside in urban areas with a predictable or short commute an efficient all-electric option.

The Spark will be introduced at the Los Angeles International Auto Show in November, according to the news source. It is 14 inches shorter than Chevrolet's current smallest car, the Sonic. It will have a 1.2 liter, four-cylinder engine that produces 83 horsepower and a five-speed manual transmission, with the availability of automatic transmission.

Similar to current gas stations for standard cars, the automakers aim to develop recharging stations so that different types of EVs can use them.

The automakers believe this will benefit the consumer, the auto industry, and pursuit of the governmental goal of having all U.S. vehicles maintain 54.5 miles-per-gallon by 2025.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-join-forces-to-develop-recharging-stations-for-multiple-evs-800644116.aspx Wed, 16 Nov 2011 20:27:30 http://www.allstate.com/insurance-industry-news/auto-insurance-news/dealers-looking-for-answers-from-automakers-800638963.aspx New-car dealers have implemented a number of renovations to their showroom floors that have cost millions of dollars to install, at the behest of auto manufacturers. Automakers say that these upgrades are worthwhile, as it improves the customer buying experience, and in so doing, the chances someone will buy a new car.

But because many dealers haven't fared as well in sales this year as in years past, the National Automobile Dealers Association wants proof from automakers that the renovations implemented will ultimately pay off.

Renovations have 'significant impact on dealer balance sheets'

"Each year dealers collectively invest billions of dollars in facility upgrades, much of it mandated by the auto manufacturers," said Stephen Wade, chairman of the NADA during a speech at the Automotive Press Association held in Detroit. "These costs have a significant impact on dealer balance sheets, in many cases severely straining them and in some cases even persuading a dealer to leave the business rather than commit such large sums."

He added that the NADA wants to get proof from manufacturers that the renovations are warranted because based on his assessment, there has been little evidence suggesting the money spent has been a good investment.

Discord between dealerships, automakers

According to The Detroit Press, relationships between dealers and manufacturers have been strained for the past several years. An example of this involves Chrysler, as in 2009, the automaker dropped nearly a quarter of its dealerships as part of its bankruptcy restructuring, putting thousands of people out of work.

Chrysler's plight has been shared by others. According to data collected from NADA, the newspaper reports that that there are 17,700 dealerships nationwide as of December 2010, nearly 800 fewer than there were in 2009.

Objective analysis commissioned by dealerships

While dealers wait for automakers to respond, NADA says it has commissioned an independent analysis that will help them determine their return on investment after implementing showroom renovations.

"The goal is to move the facilities-investment decision onto a rational, informed and fact-driven footing," said Wade. "The study’s findings will be of use to dealers and automakers alike, by moving the debate away from opinion and assertion toward objective facts and data."

The NADA expects to receive the results of the study by the end of 2011.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/dealers-looking-for-answers-from-automakers-800638963.aspx Thu, 10 Nov 2011 13:00:01 http://www.allstate.com/insurance-industry-news/auto-insurance-news/dodge-caravan-to-end-its-run-in-2013-800635048.aspx A vehicle type that epitomized what a family car looked like is nearing its end for an American car manufacturer. In an interview with Automotive News, Sergio Marchionne, CEO of Chrysler, said that the company will no longer make its Dodge Grand Caravan minivan, as the vehicle will be retired in 2013.

Caravan discontinued to avoid duplication

Despite it being one of Dodge's most popular vehicle types for those buying a new car, Marchionne said Chrysler will end the minivan's production to avoid duplicating it with Chrysler's other brands, namely Chrysler, Jeep and Ram. A similar minivan is sold under the Chrysler brand name—the Town and Country—only a more upscale version.

"We cannot have the same type of vehicle in the showroom because the consumer is not stupid," Marchionne told Automotive News. "We're not going to create the confusion and conflict in the showroom."

With the retirement of the Dodge Caravan, the Chrysler Town and Country will be the automaker's only minivan offering. However, Marchionne said that the Caravan will be replaced by the Journey crossover, even though at present, its sales volume is roughly 50 percent of what the Caravan gets on an annual basis.

Ford, General Motors have already discontinued minivan production

As FoxNews.com documents, Chrysler is one of a few companies that still offers a minivan. Fellow American automotive manufacturers Ford and General Motors stopped selling their minivan models within the past few years, preferring to put their focus on crossover utility vehicles. This past year, there had been speculation that Ford would re-enter the minivan market. But the automaker put an end to the rumors in June, saying it would introduce a hatchback version of the minivan that was fuel efficient.

"Customers have really changed in the last 120 days," said James Farley, Ford's group vice president for global marketing to an assemblage of reporters this past summer. "People are so focused on fuel economy."

An automaker that's still very much in the minivan market is Nissan, as it recently announced that its 2012 Quest minivan is on sale nationwide. For a basic model, the manufacturer's suggested retail price is $27,750. Fully equipped, it runs $41,350.

Automotive experts credit Chrysler with creating the minivan model in 1984, with the Dodge Caravan and Plymouth Voyager serving as the company's first offerings.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/dodge-caravan-to-end-its-run-in-2013-800635048.aspx Fri, 04 Nov 2011 14:55:22 http://www.allstate.com/insurance-industry-news/auto-insurance-news/retail-sales-take-positive-turn-in-september-800635041.aspx While a variety of market indicators have suggested the economy is still struggling, a new retail sales report for the month of September indicates people are still buying.

Car sales up 3.6 percent

According to the Commerce Department, retails sales increased 1.1 percent in September with purchasing activity increasing in the furniture, clothing and auto industries. In fact, among auto sales alone, buying activity rose nearly 4 percent when compared to the same month in 2010, as more people were buying cars and taking advantage of low-interest financing.

Paul Dales, senior U.S. economist for Capital Economic, told The Associated Press that homeowners appear to be weathering the country's poor economic conditions.

"[The report] shows that households are not completely down and out," said Dales.

While Dales went on to suggest that the pace of sales overall will likely not continue, the same can't be said for the automotive sector, according to a recent October vehicle sales projection.

Global marketing information services provider J.D. Power and Associates recently released its sales forecast for the month of October. According to the report, new-vehicle retail sales are projected to total 828,300 units sold, which on a seasonally adjusted annualized basis amounts to 10.5 million units. The sales increase is expected to be approximately 11 percent, which would mean that for the second-straight month, there was double-digit growth after four straight months of single-digit expansion.

John Humphrey, senior vice president of global automotive operations at J.D Power, said the forecast may come as a surprise to economists, many of whom were projecting sales would slow.

"After a solid September selling rate, there were questions as to whether the strength would continue into October, given continued concerns with the economy," said Humphrey. "However, consumers are again returning to dealerships, keeping the sales pace more consistent with the strength seen at the beginning of the year."

Car sales in 2011 expected to total 12.6 million

As a result of the positive sales forecast, J.D. Power said it stands behind its 12.6 million sales projection this year for total light vehicles and 10.2 million for retail light vehicle sales. However, it is amending its sales prediction for 2012, as it now believes 13.8 million total light-vehicle units will be sold next year and 11.2 retail light vehicles. Previously it had predicted 14.1 and 11.5 million units would be sold, respectively.

"The risk of a double-dip recession has increased to nearly 40 percent, driving the reduction in the forecast for 2012," said Jeff Schuster, executive director of global forecasting for J.D. Power. "While there have been recent positive signs in the economy and we expect another recession will not materialize, the recovery pace for 2012 is taking another hit, although a complete halt in growth is unlikely."
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/retail-sales-take-positive-turn-in-september-800635041.aspx Fri, 04 Nov 2011 14:49:48 http://www.allstate.com/insurance-industry-news/auto-insurance-news/chevy-volt-earns-consumer-reports-approval-800631795.aspx For those interested in buying a car that's both reliable and eco friendly, Consumer Reports has a recommendation: the Chevy Volt. Recently, the product review resource gave General Motors' electric vehicle its highest recommendation.

This isn't the first time the Volt has received commendation. As CNNMoney reports, it's earned a variety of awards since being rolled out in December 2010, including Motor Trend Car of the Year and North American Car of the Year. However, given the prestige of Consumer Reports, CNNMoney says the recommendation could be an economic boon for GM by helping to improve sales, which for the most part have been underwhelming.

In a conference call with reporters recently, representatives from GM maintained that the company will hit its sales projection of 10,000 Volts sold by the end of 2011. Sales figures released by the automaker in October indicated GM increased how many Volts it sold in September by 240 percent. In August, 302 units were sold nationwide, but that jumped to 723 last month. Thus far, 4,000 Volts have been purchased.

Consumer Reports liked the Volt's fuel economy, quietness and stellar crash-test results. It also fared well in "predicted reliability," a standard gauged by subscribers, who email CR and detail any problems they've had with the vehicle. CR says it's received 116 surveys from owners, with only a handful reporting experiencing any significant problems.

The Volt isn't without its faults, however, as CR says its visibility is poor, has limited seating capacity and its driving range is adversely affected by cold temperatures.

Chevy Volt's competition

Since debuting, the Volt's only competitor is the Nissan Leaf. Like the Volt, it has also received numerous awards since hitting the market in December 2010. In fact, tests conducted by CR give Nissan a better rating than the Volt—78 to 67 on a 100-point scale—but because limited data has been collected from Leaf owners, it hasn't been given CR's recommendation.

While General Motors waits to see if sales begin to pick up for the Chevy Volt, the automaker recently announced that it will begin producing another electric vehicle in 2013.

GM said the Chevy Spark EV will be unveiled to the car buying public in limited markets some time in 2013 in parts of the U.S. and other countries. A gasoline-powered version will be available sometime next year.

Jim Federico, global vehicle chief engineer for electric vehicles at Chevrolet, said the Spark EV is geared for the city-dweller.

"The Spark EV offers customers living in urban areas who have predictable driving patterns or short commutes an all-electric option," said Federico.

It's unclear as to what the Spark EV will cost or what markets will receive the first shipments. http://www.allstate.com/insurance-industry-news/auto-insurance-news/chevy-volt-earns-consumer-reports-approval-800631795.aspx Tue, 01 Nov 2011 12:08:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/white-is-the-new-king-color-for-cars-800623887.aspx A recent report indicates what color automotive enthusiasts gravitate toward when buying a new or used car. According to PPG Industries, a leading manufacturer for paint supplies, white is the most popular color that graces the exterior of cars in America.

The report indicates that in North America, 20 percent of vehicles are painted white, overtaking silver as the most popular car color in 2011. In a close second was last year's leader, silver, at 19 percent. Black, gray and red rounded out the top five at 18 percent, 15 percent and 9 percent, respectively. Other common, but slightly less popular, colors were blue, brown, tan, gold, orange and yellow, all of which were tied for sixth place. At 2 percent, green was second to last, as only "niche" colors were less frequent.

"Color is one of the most basic means of human expression," said Jane Harrington, PPG manager of color styling and automotive coatings. "The palette of colors being developed for the automotive segment is being influenced by culture, nature, fashion, interior design, media, auto shows, color popularity and new pigment technology."

PPG revealed its findings recently at the annual Automotive Color Trend Show, held at the company's offices in Troy, Michigan.

In addition to detailing what Americans' favorite hues of color on vehicles were, PPG also released the online results of the company's survey of opinions regarding just how important consumers considered a car's color to be in the buying process.

One-third would pay more for a specific color of car

For example, 77 percent said they factored in the exterior color of a car into their purchasing decision. In addition, nearly a third said a vehicle's color was an "important" consideration. In fact, approximately the same percentage said it was so significant that they would be willing to pay extra for a vehicle that had the color they wanted.

"Our consumer research has clearly shown that color is critically important to car buyers," said Harrington. She added that this is why the company devotes so much time and effort to understanding color trends, not only among American car buyers, but worldwide. For example, in Europe, black is by far the most popular color, as 26 percent of vehicles are painted that shade, with white coming in second at 19 percent.

Vehicle color has no effect on auto insurance rates

While color may be an important consideration for car buyers, it's not something taken into account by auto insurance companies.

According to the Insurance Information Institute, one of the biggest myths regarding the things that affect auto insurance premiums is color, as some believe that red cars cost more to insure than white vehicles, for example. But as III indicates, color has no influence on how much insurers charge for premiums. What does have an impact is the type of car that's purchased, specifically its make, model, body type, engine size and the age of the vehicle.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/white-is-the-new-king-color-for-cars-800623887.aspx Fri, 21 Oct 2011 11:43:44 http://www.allstate.com/insurance-industry-news/auto-insurance-news/subaru-unveils-new-vehicles-800618630.aspx Competition in the auto industry is heating up as more automakers vie to produce the most eco-friendly and fuel-efficient products for consumers. Subaru recently announced its own initiative to manufacture a new line of lighter vehicles in the coming years that will provide better fuel economy and have reduced drag.

The automaker plans on producing four new models at various stages before 2015. New versions of the Impreza, turbo-powered WRX and STI are expected to be released in 2012. The WRX and STI will be designed to host a 300-horsepower boxer engine. In addition, Subaru has plans to release its first hybrid model in 2014, according to Cars.com. Lastly, the automaker may unveil a newer version of the Forester, which has already cemented its place in the auto market for the last three years.

The newest vehicle, the 2012 Subaru Impreza, is largely excluded from the new line of vehicles as it will be available for purchase in the U.S. in the next few months, Cars.com reports. Rumors that a new Subaru XV Crossover, which was debuted at the Frankfurt Motor Show, will hit the U.S. market are also circulating, but the group has not confirmed whether or not this model will be sold, the news source adds.

Focus on light-weight models and fuel efficiency

Subaru plans to manufacture its new vehicles with strong, albeit lightweight, steel to reduce the drag heavier vehicles experience, according to Car and Driver. In addition, the automaker has announced its goal of increasing its overall fuel-economy across all product lines by roughly 30 percent by 2015.

"New engines and revised transmissions will contribute to two-thirds of the increase, while lightweight body and chassis technology will provide the rest," the vehicle website reports.

More automakers may be feeling the pressure of new fuel-efficiency rules enacted by the Obama administration in July, which stipulated that cars and light trucks must achieve a combined 54.5 miles per gallon by 2025. The new fuel-efficiency standards are nearly double the 2011 average and would be phased in starting in 2017. However, the formal fuel economy rules, which were set to be released at the end of September, were pushed back to November. http://www.allstate.com/insurance-industry-news/auto-insurance-news/subaru-unveils-new-vehicles-800618630.aspx Fri, 14 Oct 2011 07:12:03 http://www.allstate.com/insurance-industry-news/auto-insurance-news/unmarried-couples-may-get-auto-insurance-discounts-800618362.aspx An increasing number of states are passing legislation that allows couples involved in domestic partnerships and civil unions equal rights to that of married couples, Insurance.com reports.

Many car insurance companies have followed suit by offering discounts to heterosexual and same-sex partners that are recognized by their state as having a legal relationship.

Depending on the state, the grammar used to describe a legal relationship may vary. Civil unions and domestic partnerships fall in the same umbrella of legal relationships, according to the website.

All insurance companies are required to accord with state laws in how to treat domestic partnerships and civil unions. However, certain agencies are more vocal than others about informing the public about their discounts.

Statistically, married couples are less likely to file a claim than a single person, according to Insurance.com, therefore discounts are given to them. While a couple's driving record affects the insurance premium, and ultimately the rate varies from state to state, a discount can be up to 10 percent, the news source states.

For instance, one company recently announced a discount to those in civil unions in Illinois following the state's approval of the Religious Freedom Protection and Civil Union Act, which gives those in civil unions similar rights to married couples.

David Peasley, research director of gay and lesbian outreach organization Community Marketing, said that travel and beverage industries started engaging such domestic partnerships 20 year ago and companies that adopt that philosophy experienced an increase in customer loyalty. Community Marketing states that the gay and lesbian community makes up more than 10 percent of the consumer market.

"Insurance companies are becoming more active," Paisley says. "All the research shows that the first thing any company in any industry needs to do is get their own house in order. If you start advertising to the LGBT [lesbian, gay, bisexual and transgender] communities and don't have the right personnel policies in place, it can actually become a negative."
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/unmarried-couples-may-get-auto-insurance-discounts-800618362.aspx Thu, 13 Oct 2011 16:32:58 http://www.allstate.com/insurance-industry-news/auto-insurance-news/lightweighting-is-the-focus-of-frankfurt-auto-show-800614405.aspx The 64th Frankfurt Motor show exhibits cars of the future, and although there's a distinct difference in philosophy as to how the vehicles will be powered, auto experts visiting the event agreed that eco friendly cars have to be made lighter, The New York Times reports.

One of the biggest factors in gas mileage is a car's weight, according to the U.S. Department of Energy. Automakers have been stressing to reduce the weight of every component of a car, even the screws and bolts. Certain car companies have taken the extra step to ensure the future of its vehicles take a lightweight approach.

For instance, Jaguar Land Rover appointed Mark White as head of lightweight vehicle strategy. His job is to point out areas on a car that can be reduced in weight. White's department noticed the roofs of Land Rovers could be reduced in weight by using aluminum, instead of steel. With this change, every Land Rover lost 15 pounds. In addition, Jaguar now uses lighter materials such as magnesium, plastics and carbon fiber, according to the Times.

Jaguar's global brand director, John Edwards, told the news source that Land Rover is committed to reducing the weight of its SUVs by 500 kilos (1,102 pounds) by 2021. Edwards presented both the DC100 and DC100 Sport, which are lean and lighter-versions SUVs of prior models.

"When weight is reduced and packaging size is made more compact, efficiency gains in fuel economy, range, and reliability all multiply," Bob Carter, a Toyota group vice president and general manager, told the Times.

For years, Audi's autos increased in weight for each successive model until it began using aluminum frames. According to the automaker, its 2012 A6 sedan has a partial aluminum chassis that reduces a total of 175 pounds from its previous models.

Exotic vehicles combine both power and quickness and benefit from a light body. However, Porsche was able to reduce the weight of its 911 model by approximately 100 pounds, report the Times.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/lightweighting-is-the-focus-of-frankfurt-auto-show-800614405.aspx Fri, 07 Oct 2011 16:39:24 http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-saic-to-produce-all-electric-vehicle-800613837.aspx A greater number of energy efficient cars will soon be produced in China.

According to a joint statement issued by General Motors and the Shanghai Automotive Industry Corporation, the automakers recently came to an agreement to build a new electric vehicle in China. The Pan Asia Technical Automotive Center—built by GM and SAIC in Shanghai—will serve as the manufacturing site for which the new model will be built.

"The co-development of this new electric vehicle architecture demonstrates the broad range of benefits made possible by the strong partnership between SAIC and GM," said Tim Lee, president of GM International Operations. "For almost 15 years, our two companies have forged some of the industry’s most successful joint ventures. This unprecedented level of cooperation is another demonstration of our companies’ commitment to work collaboratively."

Chen Hong, president of SAIC Motor, said the collaborative effort will benefit both countries, as vehicles with advanced technology will reach the market much faster than if GM and SAIC built a new electric vehicle without the other's help.

What the electric vehicle will be remains a mystery

While the electric vehicle's architecture has yet to be revealed, GM and SAIC say the two organizations will work collaboratively to develop key components and vehicle structures. What results will be sold in China under both the Shanghai GM and SAIC brands.

The companies said the product design and details for when it will be available to the public will be announced at a later date.

Nissan Leaf has consistently beat Chevy Volt in sales

Whatever results from the collaborative effort, GM hopes it can push out Nissan's all-electric vehicle, the Leaf, which has consistently outsold GM's Chevy Volt.

According to sales figures released September 1, GM had sold 3,172 Volts through eight months of the year, while Nissan had moved 6,187 Leafs since December 2010. As for August exclusively, again, Leafs outpaced Volts—1,362 units sold to 302 sold. However, GM told Edmunds.com's Inside Line that Nissan's ability to sell more all-electric cars would "soon change."

"The fact that more than one-third of Volt sales this month happened [the last week of August] and most 2012s are on dealer lots for less than three days is an indication that product is beginning to arrive and demand remains strong," said Rob Peterson, GM spokesman in an email to Inside Line.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-saic-to-produce-all-electric-vehicle-800613837.aspx Fri, 07 Oct 2011 12:37:39 http://www.allstate.com/insurance-industry-news/auto-insurance-news/yamaha-atvs-rated-best-in-class-800613280.aspx Yamaha has long claimed that its All Terrain Vehicles are the most durable and strongest on the market. A recent study may help prove them right, ATV.com reports.

In a comparison study of continuously variable transmissions conducted by ADP Lightspeed, Yamaha ranked highest in reported warranty and non-warranty repair orders for its 2007 to 2010 4x4 ATV models with 400cc engines and above, according to the news source.

Steve Nessl, Yamaha's ATV and SxS group marketing manager, told the website that many ATV developers are all bark and no bite. He added that Yamaha's stance in the ATV industry is clearly established following the study.

Yamaha won't bask in glory for too long, however. The company recently introduced its 2012 YFZ50, with a base price of $6,799. The cost is $1,200 less than the closest competing 450 cc ATV. In addition, Yamaha announced its new Grizzly 300 two-wheel-drive utility ATV priced at $4,099. The Grizzly 300 is the only vehicle in its class to have a fully automatic dual range transmission. Nessl told the news source the Grizzly 300 is ideal for farmers in need of light utility vehicles instead of buying a car and also for a rider who simply wants a joyride.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/yamaha-atvs-rated-best-in-class-800613280.aspx Thu, 06 Oct 2011 16:10:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/pay-as-you-go-insurance-increases-in-popularity-800611848.aspx With unemployment above 9 percent for months, a housing market that's been struggling to recover since 2008 and consumer sentiment at record low levels, the economy is far from being in sound shape. In fact, conditions have been so bleak for so long, many Americans believe the country will be in the same condition or worse off this time next year, a recent Gallup poll indicated.

Some consumers have tightened their belts in light of this and made adjustments to their expenses with regards to discretionary and necessary purchases. For instance, while most people need to drive, many consolidate their trips so that they're behind the wheel less frequently, saving on gas.

But as motorists fuel their cars less often, they're also saving money by purchasing an auto insurance policy that's geared for infrequent drivers. In short, an increasing number of Americans are jumping on the pay-as-you-go car insurance bandwagon.

What is pay-as-you-go?

Pay-as-you-go insurance is just as the name implies. Depending on how frequently drivers take to the road and the number of miles they travel, policyholders pay a corresponding premium. The more miles traveled, the higher the costs are.

In a recent non-scientific survey conducted in partnership with MSN, Insurance.com asked motorists if they would consider driving less if it meant their insurance rates would be lowered accordingly. Twenty-four percent said they would, with 35 percent of that total saying it would largely depend on how much money they could save. Twenty-one percent said they wouldn't, but 20 percent of those respondents said they couldn't drive less than they do already.

Several major auto insurance providers have added pay-as-you-go to their list of policy options. Allstate, the nation's third largest insurer, is one of them, as it recently expanded its a la carte Drive Wise insurance program by offering it to Ohio and Arizona Allstate policyholders. Previously, it had only been offered to Illinois drivers.

Program can trim premiums by 30 percent

Similar to other pay-as-you-go insurance programs, Drive Wise not only rewards drivers with discounts for driving less often, but a good driving record leads to lower premiums as well, potentially cutting their rates by as much as 30 percent.

"By rewarding drivers on a variety of safety factors, the roads become safer for everyone and the safest drivers reap the most benefits," said Alice Byrne, field vice president of the Midwest region for Allstate when the program was first launched in December 2010.

Pay-as-you-go here to stay

Are pay-as-you-go insurance plans the wave of the future? Perhaps for those who are able to significantly reduce their commutes. But as Allstate director of new products Dan Kraft told Insurance.com, the program is not cost-saver for everyone. In fact, for some, it may cost them more than a standard auto insurance policy.

"It's not going to be a program that we're going to end up seeing 60, 70 or 80 percent of our customers opt into," Kraft told the website.

Still, he added that he believes the program is popular enough that policyholders will continue to opt for it even in a bull economy.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/pay-as-you-go-insurance-increases-in-popularity-800611848.aspx Wed, 05 Oct 2011 13:02:21 http://www.allstate.com/insurance-industry-news/auto-insurance-news/one-in-seven-drivers-uninsured-800611838.aspx With many people struggling to make ends meet, many consumers have been looking to cut back by eating out only occasionally, clipping coupons and driving less frequently.

While discretionary purchases have become less common and discount shopping has increased, a recent study found that people are also cutting costs by not purchasing things they legitimately need.

According to the Insurance Research Council, approximately one in seven drivers on the road today are not covered by auto insurance. Nationwide, the IRC says that number has increased in the past two decades.

"Over the last 20 years, uninsured motorists and the unemployment rate have tracked fairly closely," said David Corum, vice president of the nonprofit IRC, in an interview with USA Today.

Uninsured cost $10.8 billion in 2007

While motorists who choose not to buy auto insurance typically do it to save money, insured policyholders ultimately wind up paying the price. In 2007 alone, for example, drivers spent approximately $11 billion in excess premiums, according to data collected from the National Association of Insurance Commissioners. These additional excess charges go toward covering medical expenses for those who aren't covered, or what's called uninsured motorist coverage.

Although insurance is required in 49 of the 50 states—New Hampshire being the exception—that doesn't prevent motorists from flouting the law.

"Laws in most states have proven ineffective in reducing the numbers of drivers who are uninsured," Worters told USA Today. "Some drivers can't afford insurance, and some drivers with surcharges for accidents or serious traffic violations don't want to pay the high premiums that result from a poor driving record."

Mississippi has highest uninsured rate, lowest in Massachusetts

Uninsured motorists are particularly prevalent in the South. Based on 2009 statistics, the latest year for which this type of data is available—more than half of the 10 states with the highest number of uninsured drivers were in southern locales. Mississippi, New Mexico, Tennessee, Oklahoma, Florida and Alabama all have uninsured motorist rates that's above 20 percent, with Mississippi having the highest rate. At 4 percent, Massachusetts has the fewest drivers without auto insurance.

When asked why his state had such a low rate of uninsured drivers, Joseph Murphy, Massachusetts' insurance commissioner, told USA Today he believes it's because the state requires drivers to show proof of insurance before they can register it. Mike Chaney, Mississippi's commissioner of insurance, says drivers in his state have no such obligation.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/one-in-seven-drivers-uninsured-800611838.aspx Wed, 05 Oct 2011 12:58:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-sales-projection-dialed-back-800611831.aspx From a volatile stock market to mixed real estate data, a variety of indicators suggest the economy is hurting. The latest indication the country's financial system is in the midst of a rough patch is the revised auto sales forecast—a measurement many consider to be a harbinger of the U.S. economy.

Vehicle sales projection lowered to 12.6 million

Earlier this year, Edmunds.com released its 2011 estimate for how many cars would be sold nationwide. At the time, the automotive website projected approximately 13 million units would move. But on September 21, Edmunds.com lowered its expectations for how many people would buy a new car this year, trimming its projection by nearly 400,000 to 12.6 million.

The automotive information source said it based its initial sales estimate upon the pace of sales at the time and economists' expectation that by the latter portion of 2011, consumer confidence would improve, the stock market would make a comeback and the unemployment rate would stabilize. However, a sluggish housing market and economic unrest throughout much of Europe has tempered sales expectations.

"Although some consumers who deferred purchases earlier this summer are responding to improving vehicle supply and more competitive prices, declining economic conditions are keeping other consumers away from dealer lots and will continue to do so at least through the end of the year," said Lacey Plache, an economist with Edmunds.com.

Compact, subcompact car shopping on the rise

As Plache notes, improved supply levels in the wake of the March 11 earthquake off the coast of Japan have led some car buyers to re-enter the market. But car purchases have been trending toward less expensive, more fuel-efficient vehicles.

For instance, based on Edmunds.com's analysis, car shoppers around the country are much more likely to consider purchasing a compact or subcompact car compared to last year. In the 10 major metropolitan regions surveyed, all of them posted a rise in compact and subcompact car shopping. The increase was particularly significant in Dallas-Fort Worth, as shopping for subcompact vehicles jumped 70 percent compared to 2010.

"A jobless economic recovery and high gasoline prices have caused a realignment of buyer priorities and almost unprecedented demand for small cars, just in time for the launch of a stable of tech- and content-rich new models," said Bill Visnic, senior editor for Edmunds' AutoObserver.com.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-sales-projection-dialed-back-800611831.aspx Wed, 05 Oct 2011 12:53:34 http://www.allstate.com/insurance-industry-news/auto-insurance-news/47-million-aventador-the-most-expensive-car-model-in-the-world-800611656.aspx Lamborghini is one of the most recognizable and unaffordable vehicles on the market, yet nearly every auto enthusiast dreams of one day taking one out for a drive aimlessly on an empty road. Now, the automaker has created the most expensive and precious car model, according to Guinness World Records.

The only problem is, it's a model, about one-eighth the size of an actual Lamborghini Aventador and not drivable.

Once a consumer has finished buying a car , its value immediately sinks. For every mile driven, the car depreciates exponentially. However, with the customized Lamborghini Aventador LP 700-4, the new source suggests the value will increase as time passes. Basically, its worth relies on the future owner's caretaking and polishing.

Designed by Robert Gulpen, the $4.7 million Aventador model is ordained in gold, diamonds and platinum. It took more than 500 hours to develop and contains more than $2.7 million worth of precious metals and stones, according to Business Insider.

Sotheby's plans to auction the model off in Dubai, United Arab Emirates, or New York City. For buyers that want a shot at purchasing the item before the December auctions, they must put forth an extra $1.35 million, Business Insider reported.

The life-size and functioning Aventador LP 700-4 goes for a base price of approximately $414,000. It was developed in Italy and runs on a V12 engine with carbon-fiber technology.

As luxurious and appealing as the Aventador is, it's probably one of the most un-green cars a driver could own. With a 6.5-litrer, V12 engine, a 217 mile-per-hour top speed and a 2.9-second 0-62 mph time, it barely manages 13.5 miles per gallon. Reaching 44 miles per gallon, the 2012 Honda Civic Hybrid gets more than three times the gas mileage of the Aventador.

However, most Lamborghini brands aren't meant for the average eco-friendly consumer, and furthermore, many owners use it as a showy car and don't drive it every day, according to Lamborghini-Talk.com.

Although Lamborghini's $4.7 million Aventador model may seem excessively high priced, the popularity and revolutionary auto technology of the company may entice buyers to have a piece of history and purchase this beautiful piece of art.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/47-million-aventador-the-most-expensive-car-model-in-the-world-800611656.aspx Wed, 05 Oct 2011 09:03:24 http://www.allstate.com/insurance-industry-news/auto-insurance-news/lasers-to-be-a-cars-light-source-800609725.aspx As the world's leading auto manufacturers pursue the latest ways to make their vehicles more fuel efficient, BMW is looking to add highly energy-efficient light bulbs to its line of vehicles.

The company says it is pursuing ways to make headlights stronger and more efficient through the implementation of laser light technology.

"After LED technology, laser light is the next logical step in car light development," the company said recently. "BMW engineers are currently already working on the introduction of laser light as a further pioneering technology for series production within a few years. Laser light could then facilitate entirely new light functions for even more safety and comfort and at the same time contribute significantly through its higher degree of efficiency towards a saving in energy and fuel respectively."

Lasers a thousand times stronger than LEDs

Laser lighting is far different from sunlight, the company says, as its light waves all have the same length. Because it can produce a near-parallel beam of light, its intensity is a thousand times greater than LEDs, which are considered to be the top-of-the-line technology in today's current crop of vehicles.

Laser diodes are not only stronger, but they're 100 times smaller than square-shaped LED cells, BMW asserts. While stronger lighting enables drivers to see and be seen from farther distances, the implementation of lasers in headlights will be beneficial to motorists looking to save as much energy as they can, the company stated. In short, because lasers don't consume as much energy as LED headlights, BMWs installed with laser headlights will improve vehicles' fuel efficiency.

Headlights are safe to humans, wildlife

Some individuals may be opposed to the installation of these headlights, however, fearing that the intense light they emit may be damaging to humans and animal wildlife. But the company says the opposite is true, as laser light is not emitted directly but rather converted through a fluorescent phosphor material that's build into the headlight. This makes laser technology ideal for traffic use.

"The resulting light is very bright and white," the company stated. "It is also very pleasant to the eye and has a very low energy consumption."

BMW i8 first model to be equipped with laser diodes

While it's not known when the technology will come standard in all BMW vehicles—or when the lasers will be completed—the company said the public will be able to take advantage of the new lighting "within the next few years." The first model reportedly to be equipped with the laser diodes will be the German automaker's concept vehicle, the BMW i8.

According to the company, the BMW i8 will be a plug-in hybrid car with a 170-horsepower electric motor for the front wheels, while the rear wheels will be powered by a three-cylinder engine capable of producing 220 horsepower. Production is expected to begin in 2014.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/lasers-to-be-a-cars-light-source-800609725.aspx Mon, 03 Oct 2011 12:14:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/83-mpg-ford-focus-2012-to-be-unveiled-in-frankfurt-800608943.aspx The 2012 Ford Focus could blow the competition away with an unrivaled mile per gallon output, Fox News reports. Ford will unveil the gas-sipping vehicle at the Frankfurt Motor Show as the most gas-efficient, non-hybrid small vehicle on the market.

The 2012 Focus has a turbocharged diesel engine with start-stop technology – meaning, similar to hybrid cars, as the vehicle slows down or stops, the gas-powered engine shuts off to save fuel, according to the new source. The grille shutters are active which increases the aerodynamics at higher speeds.

Because Britain uses Imperial gallon - which is 20 percent larger than the U.S. gallon - Ford expects the Focus to average 83 mpg in the United Kingdom. The 2011 model had a 76 mpg in Britain. That translates to 55 mpg in the U.S.

Ford Focus won't sell the diesel-fueled version of the 2012 Focus to the American market. Instead, it will continue to distribute traditional engines. As a result, the American 2012 Focus will only have 33 mpg. Ford mentioned that the expense of diesel fueled engines prevents it from being able to distribute to such a high demand.

Road and Track magazine inspected the interior and exterior of the Ford Focus ST. Based on their report, the Focus ST has a muscular look, a roof spoiler, side skirts and rear diffuser vents. In addition, consumers will have the option for a tangerine-colored Focus, as well as the original blue, red and white. The steering wheel and gearshift have a sporty look, and the rear seats have extra padding to give passengers a more comfortable ride.

In 2010, Ford sold more than 1.9 million automobiles, a 19-percent increase from 2009, according to the company's website.

"With our balanced line of high-quality, fuel-efficient products, we have a solid foundation to deliver more sales and improved results in 2011," Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service, said "Consideration for Ford is increasing beyond our traditional areas of strength - signaling that the seeds of growth already have taken hold."

Right now, the top diesel-fueled small vehicles available to Americans are the Volkswagen Golf and Jetta, which average 34 and 42 mpg on the highway, respectively.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/83-mpg-ford-focus-2012-to-be-unveiled-in-frankfurt-800608943.aspx Fri, 30 Sep 2011 16:00:31 http://www.allstate.com/insurance-industry-news/auto-insurance-news/nissan-to-produce-another-model-in-us-800606153.aspx While Japan is considered by many to be the world's hub for automotive manufacturing, one of the country's carmakers may be exporting some of its production to Tennessee.

According to High Gear Media, based on multiple reports from Japanese media outlets, Nissan is considering off-shoring the production of its Teana mid-size sedans from Kyushu to Smyrna, Tenn..

Nissan 'won't discuss future production plans'

When High Gear Media sought the company's comments on the rumors, David Reuter, vice president of corporation communication for Nissan Americas, was evasive.

"As you've noted there have been a number of stories speculating about Teana production in Japan," said Reuter. "We have not announced any actions around Teana, so our official comment is simply that we don't discuss future production plans."

While the company is not revealing whether it will move the manufacturing of one of its models to Tennessee, reports are speculating why Nissan may be doing it. According to information obtained by High Gear Media from Japanese media sources, because the yen is currently strong, it makes vehicle exports from the country to others expensive.

To save on costs, Nissan would build the Teana in the U.S. and export the cars to Japan-based consumers looking to buy a new car.

Should the reports prove to be accurate and Nissan does wind up making Teanas exclusively in Tennessee, it would be the carmaker's first model built in the U.S. solely for export.

Domestic sales increased nearly 20 percent

As for how Nissan's sales have fared in the U.S., the carmaker recently reported that sales in August were solid.

On September 1, Nissan announced that domestic sales reached 91,541 units sold, a 19 percent increase in volume compared to the same month last year.

The company attributed the significant boost in sales to the production to the launch of the Versa Sedan and the continued interest among car buyers in the Altima and Rogue. August sales for the two models rose 24 percent and 13 percent, respectively.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/nissan-to-produce-another-model-in-us-800606153.aspx Wed, 28 Sep 2011 12:29:50 http://www.allstate.com/insurance-industry-news/auto-insurance-news/north-american-hybrid-plants-on-the-rise-800595643.aspx Honda has announced its $800 million plan to build an automobile plant in Mexico, The Los Angeles Times reports. Normally, buying a car means you'll inevitably unload your wallet for future car tune ups. However, the increased adoption of cost-efficient vehicles is creating a more affordable car owning experience.

Currently, Honda produces more than 1.6 million cars per year. With the inclusion of the proposed Mexican site, its yearly output will rise to more than 1.8 million units, according to the news source.

The new factory will primarily manufacture sub-compact, hybrid vehicles, which are growing in demand in North America. Honda realizes that high gas prices and a scaly economy forces North Americans to be more frugal than usual. In light of this, the automaker suggests its proposed plant will effectively accommodate the rising popularity of fuel-efficient cars.

"With growing demand for fuel-efficient vehicles, this plant will increase Honda's ability to meet customer needs for subcompact vehicles from within North America," Tetsuo Iwamura, president of American Honda Motor and CEO of Honda’s North America Region, said to the L.A. Times. "This new plant will further strengthen the foundation of Honda’s North American business by enabling Honda to more flexibly respond to changing market conditions from within the region."

North American production already high

More than 87 percent of Honda and Acura automobiles sold in the United States during 2010 were produced in North America, according to the newspaper. Studies have proven buying locally is more productive for the American economy, rather than purchasing a product internationally, according to Sustainable Connections.

Torque News states that Mexico has become one of the global leaders of manufacturing. In addition to Honda, Mazda, Nissan and Volkswagen have also recently invested in Mexican auto plants. Between January and June, Mexican output of cars and light trucks increased 14 percent to more than 1.2 million automobiles, according to the news source. Volkswagen's plant in Puebla, Mexico, employs 2,000 workers and aims to manufacture more than 100,000 Beetles by next year.

"Production in Mexico is absolutely being driven by exports and exports continue to grow," president of the Mexican Automobile Industry Association, Eduardo Solis, said in a news conference.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/north-american-hybrid-plants-on-the-rise-800595643.aspx Wed, 14 Sep 2011 08:19:06 http://www.allstate.com/insurance-industry-news/auto-insurance-news/stylish-yet-affordable-cars-800587135.aspx Consumers who want to buy a new car that won't empty their savings account but still has sleek and stylish features have a handful of potential fits, according to Vehix.

Chevrolet Camaro SS

Starting at nearly $37,000, the Chevrolet Camaro SS is one of the more cost-friendly sports cars on the market, the auto company states. Compared to its sister car—the Corvette—Vehix reports the Camaro SS costs roughly $12,000 less but boasts nearly the same horsepower. Additionally, the Camaro SS is more than $5,000 cheaper than the Dodge Challenger SRT8 and is faster.

Lexus IS 250

In comparison to similar sports luxury vehicles, Vehix reports the Lexus IS 250 offers a lower list price than many other cars in its class. The Lexus sells for roughly $34,000, according to the website—nearly half the cost of a Cadillac CTS. The IS 250 gets better mileage than the CTS and may entice car buyers looking for a fuel-efficient model. Lexus' vehicle comes with other luxury features at a relative bargain, including Bluetooth and iPod connectivity.

Mazda MX-5 Miata

In terms of affordable convertibles, the Miata MX-5 from Mazda is a car many consumers may want to check out. With a classic style as well as the ability to use a soft top or a power retractable hardtop, numerous consumers may find the vehicle a quality value, according to Vehix.

The base model Miata costs slightly more than $25,000. Similar models, such as the Nissan 370Z and the Audi TT, sell for more than $14,000 more than the Miata, reports Vehix.

"We love that the Miata performs like some expensive roadster at a steep discount," the website notes.

Chevrolet Traverse

Drivers with growing families may want to invest in a three-row crossover SUV, suggests Vehix. A prime option in this class is the Chevrolet Traverse. This model comes with good towing and passenger capacity, as well as fuel economy. The price tag for the vehicle is slightly higher than competing models, such as the Honda Pilot and Toyota Highlander, but is considered by Vehix to be a better overall quality. http://www.allstate.com/insurance-industry-news/auto-insurance-news/stylish-yet-affordable-cars-800587135.aspx Wed, 31 Aug 2011 09:09:47 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-look-to-aerodynamics-for-more-mpg-800582263.aspx New fuel economy standards recently proposed by the National Highway Traffic Safety Administration and Environmental Protection Agency will require auto manufacturers' fleets to average 54.5 miles per gallon.

"This agreement on fuel standards represents the single most important step we've ever taken as a nation to reduce our dependence on foreign oil," said President Obama. He was joined by manufacturers including Ford, General Motors, Chrysler, BMW, Honda, Hyundai, and Toyota. "Most of the companies here today were part of an agreement we reached two years ago to raise the fuel efficiency of their cars over the next five years. We've set an aggressive target and the companies are stepping up to the plate."

A recent USA Today article explains that making new automobiles more aerodynamic may be the key to improving fuel economy.

Impact of improving aerodynamics

Automobile manufacturers will need to take a number of steps, reports the newspaper, like reducing vehicle weight and cutting fuel use with turbochargers, but aerodynamic modifications will be instrumental. Several automakers have already begun to improve aerodynamics.

The new Hyundai Accent, for example, is fitted with an underbody panel that prevents air from becoming trapped. It experiences a 2.1 percent increase on gas savings. The new Ford Focus is reportedly 7 percent more aerodynamic than previous models, making use of new side mirrors, wheel wind deflectors, molding on the front roof pillars to smooth the air, and a panel underneath the front end.

The new Honda Civic features aerodynamic wheels and a rear spoiler with flatter surfaces. It gets roughly three more miles per gallon than previous models. The upcoming Nissan Versa is more than an inch lower to the ground than previous models, improving its efficiency.

It is expected that the new regulations will save about $1.7 trillion in fuel costs, according to USA Today. By 2025, families are expected to save more than $8,000 per vehicle on fuel, potentially making them less likely to skimp on auto insurance rates. http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-look-to-aerodynamics-for-more-mpg-800582263.aspx Wed, 24 Aug 2011 13:26:12 http://www.allstate.com/insurance-industry-news/auto-insurance-news/cars-have-never-looked-so-good-800576848.aspx Automakers trying to make their vehicles more appealing to consumers are succeeding. Marketing and research firm, J.D. Power and Associates, recently conducted its annual Automotive Performance Execution and Layout study, also known as APEAL. Since 1996, the study has examined the satisfaction level of new car drivers based on more than 70 criteria.
The gratification car owners have with their vehicle is then measured on a 1,000-point scale, 1,000 being a perfect score. This year's results revealed car owners' vehicle satisfaction is at an all-time high of 781, up from 778 in 2010.

While several factors may help explain why vehicles are more appealing to car owners this year, the firm attributes the higher rating to enhanced fuel economy and sharper vehicle styling.

This comes as a welcome revelation for an industry that's received its share of negative news, according to David Sargent, vice president of J.D. Power and Associates.

"The auto industry has taken a battering during the past few years," he said. "However, it is clear that throughout this period, automakers have never lost sight of the fact that survival—and ultimately success—only comes from winning over customers in the showroom. Offering highly appealing vehicles is one of the primary means to succeed."

Attractiveness is up, but quality is down
While vehicle attractiveness may be at record levels, consumers appear less excited about a separate study performed by the vehicle research firm, which indicated all-new models tend to have more problems than those that are redesigned.

Sargent said this finding may serve as an incentive for automakers to improve the quality of their vehicles, as appeal and superior craftsmanship may increase consumers’ willingness to spend more at dealerships.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/cars-have-never-looked-so-good-800576848.aspx Tue, 16 Aug 2011 15:28:50 http://www.allstate.com/insurance-industry-news/auto-insurance-news/carmageddon-ends-up-smoother-than-expected-800574445.aspx Residents of Los Angeles County, especially those with cars, are no strangers to gridlock. The U.S. Department of Transportation (DOT) reports four out of the top ten worst bottlenecks in the country can be found in Los Angeles.

Interstate 405 in Los Angeles is one of the more notorious routes for heavy traffic and gridlock in the country. Last month, a closure of a portion of Interstate 405 was given the name "Carmageddon" by local officials, the Associated Press reports.

The purpose and preparation of the closure

The AP reports a 10-mile stretch of the busy freeway that connects the San Fernando Valley and the west side of Los Angeles was closed for demolition of Mulholland Bridge. The demolition job created about 4,000 tons of rubble, the news source reports.

The Los Angeles County Metropolitan Transportation Authority (MTA) predicted a disaster of sorts, and planned similarly to their disaster preparedness steps for an approaching hurricane or flood, the news source reports. The MTA and the Los Angeles Police Department were creative and persistent in getting the word out to the citizens of Los Angeles.

According to the AP, local officials used Twitter, Facebook, and roadside signs to notify millions of potential drivers in the weeks leading up to the closure.

The unexpected success of the project

Originally, Kiewit Infrastructure West, the contractor for the job, estimated the project to take about 53 hours. The contractor ended up finishing the job close to a day in advance, which not only helped the contractor avoid a $72,000-an-hour fine for any delays, but lead to a $300,000 early-completion bonus.

The AP interviewed disaster-preparedness expert Joanne Nigg about the weekend. "If they hadn't had this sort of education ahead of time, if people hadn't taken alternate roads or changed their place, it could have been horrible," Nigg said to the news source. "In retrospect, people might say it wasn't a big deal, but it could have been."

A new concern of local officials is how receptive the public will be when the next phase of the demolition process, scheduled in about 11 months, occurs. Citizens expressed frustration, feeling they were misled by the campaign, as the roads were easier to travel than most weekends.

Saving drivers and taxpayers money

The project's smooth completion lead to big savings for the city of Los Angeles, as well as the drivers who would have been sitting in the traffic for hours, had they not known of the construction.

The AP notes the city saved about $400,000 dollars from the early completion, as one extra 12-hour shift would have been an addition $700,000 for the workers. Though the city did pay out the $300,000 to the contractor, the savings were still enormous.

The gridlock that would have ensued had officials not successfully gotten the word out would have proved costly to the drivers sitting in traffic. Idling in traffic, as well as the grinding of stop-and-go traffic, can have a negative effect on fuel efficiency.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/carmageddon-ends-up-smoother-than-expected-800574445.aspx Fri, 12 Aug 2011 05:42:14 http://www.allstate.com/insurance-industry-news/auto-insurance-news/younger-generation-prefers-asian-made-cars-800572728.aspx Generation Yers, young adults in the 18 to 27 age range, represent the newest, and some think most important, demographic of car buyers in the market. A study from TrueCar.com found this generation prefers Asian brand automobiles over those made in the U.S. and Europe.

What are they buying?

The study reviewed the purchases of more than four million people buying a new car from 2009 to 2010. Overall, this new buying demographic favored Scion, Mitsubishi, and Mazda above the rest, with Nissan, Volkswagen, and Kia right behind them.

"Generation Y buyers are very important to automakers because they help set trends from popularizing social media sites such as Facebook or Twitter or technologies such as the iPhone and iPod," said Jesse Toprak, vice president of trends and analysis at TrueCar.com.

Toprak also noted it is important for manufacturers to get a person to buy their vehicles early on, in hopes of retaining them as a loyal customer through the years.

Seeking out something unique

The most successful models were those that allowed for a significant amount of customization. The Scion tC, Mitsubishi Lancer, and Honda Civic Si were the top selling models, respectively. Experts feel that this generation of car buyers wants a vehicle that is individualistic and can be tailored to their specific tastes.

This new market of auto shoppers also desires a vehicle equipped with the electronic features they have become accustomed to, while still remaining affordable. Having iPod docks and navigation systems built-in provides more appeal than manufacturers that change extra for these perks.

Reasonable price is a must

All of the top 10 most popular cars had a base manufacturer's suggested retail price (MSRP) under $23,000 and often came with unique exterior styling. The Toyota Yaris Sedan, Scion xD, and Volkswagen GLI were quite popular among young drivers, and the Ford Focus Coupe was the most popular American car in the study.

In general, the most purchased American brand in the study was the Jeep, with 5.8 percent of the market. Ford and Chevrolet had 5.1 percent and 4.2 percent of the market, respectively. Ford has been heavily marketing its smaller cars through social media outlets and unfortunately, those results have been disappointing to date.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/younger-generation-prefers-asian-made-cars-800572728.aspx Wed, 10 Aug 2011 13:44:07 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automotive-website-details-what-cars-are-favored-by-generations-x-and-y-800567995.aspx Many car experts and companies claim to know what 18- to 27-year-olds are looking for when they're out buying a new car. One company that contends it knows is TrueCar, as the company put together a listing of the vehicles this age group—or what's often referred to as "Generation Y"—most frequently bought between 2009 and 2010.

Jesse Toprak, vice president of trends and analysis for TrueCar, said knowing the buying behavior of this demographic is crucial to car manufacturers.

"Generation Y buyers are very important to automakers because they help set trends from popularizing social media sites such as Facebook or Twitter or technologies such as the iPhone and iPod," said Toprak.

Scion favored by Generation Y

The study detailed which cars Generation Y buyers tend to purchase both by brand and by make and model. For both, Toyota's Scion led the way, followed by Mitsubishi, Mazda, Nissan and Volkswagen. The most popular model was the Scion tC. The manufacturer's standard recommended price for the tC is $18,995.

"Generation Y buyers want vehicles that look distinct and can be tailored to their individual tastes," said Kristen Andersson, an automotive analyst for TrueCar. "Buyers from this generation are also looking for vehicles that have the technology features they are accustomed to built into the vehicle at an affordable price."

While the Scion tC had a marginal discount, the study found the biggest deals to be had by Generation Y were with the Kia Forte, the ninth most commonly purchased make and model on TrueCar's list. At an average of $18,975, car shoppers received a near 9 percent discount when compared to the MSRP.

But it isn't just Generation Y TrueCar believes it has pegged when it comes to buying behavior. Another study of the company's pinpoints which cars Generation X'ers—those between the ages of 28 and 45—tended to purchase.

Generation X prefers comfort of Volkswagen

Among the older demographic, the Toyota Scion wasn't even in the top 10. The most popular model and brand, rather, was the Volkswagen Routan, for which shoppers paid an average of $26,536.

Volkswagens are often viewed as economical cars, and Andersson said this is likely why so many Generation X'ers trended toward this brand.

"Generation X buyers have a work hard/play hard mentality and chose cars that were comfortable and convenient for their lifestyle," said Andersson.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/automotive-website-details-what-cars-are-favored-by-generations-x-and-y-800567995.aspx Wed, 03 Aug 2011 13:04:40 http://www.allstate.com/insurance-industry-news/auto-insurance-news/fuel-stations-may-do-away-with-vapor-recovery-systems-800567991.aspx The last time motorists filled up their car, they may remember a black rubber contraption that surrounded the nozzle of the gas pump that resembled the folds of an accordion.

As USA Today describes them, these are called gasoline vapor recovery systems, and as the name implies, the eco-friendly devices help prevent motorists from breathing in noxious fumes while they're filling their gas tank. These have been in place since 1994, when the Environmental Protection Agency started requiring gas stations to use them.

But as the paper reports, these devices may soon be a thing of the past.

The reason why, according to the paper, is that since gas stations were required to use these contraptions, automakers began installing their vehicles' gas tanks in such a way that prevented the fumes from escaping while drivers were filling up.

Getting rid of recovery systems could save gas stations $3,000 annually

While all vehicles don't have these types of fume-preventing tanks, the EPA estimates 70 percent of cars on the road do. That's enough for the agency to consider doing away with them, the paper states, which could wind up saving gas stations more than $3,000 on an annual basis.

In an interview with USA Today, the Natural Resource Defense Council's Bob Keefe said doing away with them would be a good thing, as they're no longer needed.

"It's good news," said Keefe. "We've dealt this, now we can take these things away."

Should they be done away with, the paper indicates motorists would likely stop seeing them in 2013.

While consumers no doubt appreciate not having to breathe in gasoline fumes, they're also hoping gas prices are reined in.

National average for self-serve regular: $3.67

According to GasBuddy.com, the price of self-serve regular as of July 15 is $3.67, down from $3.69 one month ago. However, in comparison to the same time last year, gas prices are nearly $1 more.

As high as that is, the cost of fuel is even more than the national average in 21 states, the source indicates, topping out in Hawaii at $4.07 per gallon. The state with the least expensive gas is Arizona at $3.34.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/fuel-stations-may-do-away-with-vapor-recovery-systems-800567991.aspx Wed, 03 Aug 2011 13:01:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-details-which-companies-have-the-highest-number-of-us-built-models-800567985.aspx Whether it's due to a sense of patriotism or wanting to contribute to the country's economy, when consumers are in the market to buy a new car, they'll often seek to buy American-made models. But as Consumers Reports indicates, a car doesn't necessarily have to be made by a domestic company to be considered American-built.

Toyota is the maker of nine U.S.-built models

For instance, as the source indicates, Toyota produces nine models in the U.S., eight of which Consumer Reports recommends as good buys. Of all the companies that originate from another country, Toyota produces the highest number of U.S.-built models.

Other foreign automakers with a high number of models built in the U.S. include Japan's Honda, with eight, and Nissan with seven. Germany's Mercedes Benz is the maker of four U.S.-built models, according to Consumer Reports.

Ford, Chevrolet build the highest number of models in the U.S.

Of all makes, it may come as no surprise that the two most prolific automakers in the U.S. are Ford and Chevrolet, as each produces 12 U.S-built models. This may come as good news for car buyers who try to remain loyal to domestic makes.

Brand loyalty highest with Hyundai, Ford comes in fourth

However, as a recent study from Kelley Blue Book reveals, shoppers' devotion to American automobiles appears to be waning.

According to the vehicle valuation company, when it comes to brand loyalty, Ford is in fourth place, as a higher number of car buyers are finding their allegiances lie with foreign car producers like Honda, Toyota and Hyundai. In fact, in this year's second quarter, Korea's Hyundai ranked highest for brand loyalty.

"Hyundai's product renaissance is benefitting the company not just by attracting an all-new customer base, but by helping them to retain current loyal Hyundai owners, as well," said Arthur Henry, market intelligence manager for Kelley Blue Book. "This latest brand loyalty analysis from KBB.com is a testament to the power of attractive vehicle designs and intriguing marketing in the minds of in-market car shoppers as they consider their next vehicle."

What explains the increased loyalty to Hyundai? According to KBB, and as Henry suggested, it likely has to do with aggressive advertising campaigns for specific models such as Hyundai's Elantra and Sonata.

As a general rule, however, KBB states brand loyalty is down among car shoppers, largely resulting from the struggling economy and high fuel prices that have plagued much of the country.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-details-which-companies-have-the-highest-number-of-us-built-models-800567985.aspx Wed, 03 Aug 2011 12:58:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-presidential-vehicle-loses-decal-in-philadelphia-800567848.aspx Last month, the presidential vehicle, commonly known as "The Beast," "The Obamamobile" and "Cadillac One," lost one of its presidential decal stickers on I-76 in Philadelphia, USA Today reports. The car, made by General Motors, is a highly-modified Cadillac limousine with unique features.

Though the chauffeur is trained for any sort of problem, as his driver education consists of special CIA training, this particular incident seemed a bit out of his reach.

Decals not very high-tech

The news source notes the vehicle's decals are in fact simple magnetic, slap-on stickers that could be found in many different auto-shops and even novelty stores. The car itself, however, runs very little risk of having working parts fall off as the sticker did.

On paper, the car safety features of the presidential vehicle appear closer to a tank than to a regular Cadillac Limousine. The windows, for one, do not open except for the driver's window which has a three inch sliding slot for paying tolls. All of the windows can withstand heavy artillery, while the rest of the body is eight inches thick.

The gas tank and the wheels are equally as impenetrable. The wheels are reinforced with Kevlar, with special steel rims beneath the Kevlar that enable the car to continue driving normally with a flat. The fuel tank is armor plated, while a special foaming feature prevents the tank from exploding at any time.

What was the outcome of the incident?

Once agents realized the presidential seal had fallen off of "Cadillac One," secret service agents and local police backtracked down the interstate in the night to try and find it on the side of the road, the news source reports. Officials were not able to locate the object that night.

The next day, a local highway patrol officer found the decal on the side of the road while helping a disabled vehicle. Ed Donovan, a spokesman of the secret service, told CNN "It happens periodically. They're only magnetic, they're not put on in any special way."

What are the downsides to the presidential vehicle?

Because of the extremely heavy weight of the vehicle, which is capable of withstanding armor-piercing bullets and even roadside bombs, "Cadillac One" is not one of the more energy efficient cars out there. In fact, the vehicle only reaches a maximum speed of 60 mph, and gets an average of eight miles to the gallon.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-presidential-vehicle-loses-decal-in-philadelphia-800567848.aspx Wed, 03 Aug 2011 09:55:57 http://www.allstate.com/insurance-industry-news/auto-insurance-news/mitsubishi-motors-unveils-new-developments-in-electric-car-technology-800567847.aspx In response to the energy crisis—one magnified in Japan as a result of problems with nuclear power plants—the auto industry is working to come up with innovative solutions to improve energy use. While energy-saving cars have rapidly entered the mainstream automotive world, vehicle manufacturers look to further the popularity and use of these vehicles through efficient and impressive technologies.

Mitsubishi announces new features

Japanese car manufacturer Mitsubishi Motors has unveiled upcoming features for its i-MiEV electric car model. The Wall Street Journal reports the manufacturer is developing a feature that would allow owners to power household appliances with the same battery that powers the engine.

This feature is dependent on the completion of an AC Power Supply EZ adaptor. The news source explains the manufacturer expects to release this new technology before 2012. The company expects the technology to be capable of powering small appliances, such as microwaves, for over 24 hours.

Why would drivers want a microwave?

In a statement, the company stated: "today more and more people are looking to the EV both as a means to address environmental issues and also to address the pressures on the demand and supply of energy."

The news source reports the manufacturer intends to make their battery a new, alternative source of energy. The company believes this energy source will be especially helpful in the event of a disaster like the earthquake and tsunami that plagued Japan earlier this year.

Downsides to vehicle design

Some automotive experts believe the i-MiEV has more drawbacks than perks. Car and Driver points out that this model, after test drives, is not expected to be capable of reaching 100 miles a charge. Additionally, the costs of the car are projected to be around $30,000, while the standard recharge times can take up to 12 hours.

Still, the automotive magazine believes this car will be useful for certain drivers, as the primary purpose of the model is not cross-country drives. Rather, the car is intended as an eco-friendly solution for consumers with a need for cheap, short-distance drives.

With the addition of features such as the AC Power Supply EZ adapter, this model appears to be a creative step toward combating the effects of the energy crisis on the transportation industry.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/mitsubishi-motors-unveils-new-developments-in-electric-car-technology-800567847.aspx Wed, 03 Aug 2011 09:53:04 http://www.allstate.com/insurance-industry-news/auto-insurance-news/luxury-automobile-makers-roll-out-unique-features-800567846.aspx To be successful, automakers must combine reliability, aesthetic appeal, efficiency and more in each car. While some groups, such as the Union of Concerned Scientists, feel automakers should be more focused on creating features to lower emissions and improve gas efficiency, manufacturers seem to market more toward flashy and unique car accessories.

By considering which types of technological advances should be priority, some automakers are finding ways to create incredible designs.

Infiniti's impressive new feature

The Los Angeles Times reports automakers, especially those of luxury vehicles, have been trying to create unique ways to grab the attention of the average consumer. One of the newest features, the news source reports, was recently announced by Nissan, for its luxury line, Infiniti.

According to the source, Infiniti has improved its roadside assistance programming, giving owners unlimited access to a live support team, 24 hours a day. The support team provides everything from sports scores to driving directions and restaurant reservations.

The feature allows owners to access the service via cell phone when not inside of the car. While other brands offer comparable services, the news source notes Infiniti will be the first to offer this class of support for free.

Other brands pick up the pace

The news source notes how automakers like BMW and Hyundai offer features that could be categorized in a similar fashion to Nissan's new features. For example, Hyundai's Equus sedan offers impressive technical support, along with an iPad instead of a car maintenance manual. Additionally, BMW offers free car maintenance for the first four years after purchase.

"The brands tend to offer things based on their strengths," said auto-industry consultant Dan Hall to the news source. "Lexus doesn't offer years of maintenance because they are known for being reliable. But BMW is known as Break My Wallet, so they had to do something."

Alternative features with illusive functions

Some manufacturers are truly thinking outside of the box when creating new and enticing features for their cars. Forbes recently did a piece on odd-named car features that had hit the market over the past few years.

Forbes ranked the strangest to be the "Openometer" feature, which comes standard in all Mini Coopers. The feature is a dial on the dashboard that keeps track of how much time the driver has spent with the top down.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/luxury-automobile-makers-roll-out-unique-features-800567846.aspx Wed, 03 Aug 2011 09:49:53 http://www.allstate.com/insurance-industry-news/auto-insurance-news/scientists-express-disappointment-through-annual-hybrid-scorecard-800567843.aspx The fuel crisis, coupled with the environmental impact of vehicles, has brought on a new age of energy efficient cars. To help foster this massive overhaul of the automotive industry, an independent, non-profit group of citizens and scientists began the Union of Concerned Scientists (UCS).

One of the functions of this group is to rate hybrid cars for efficiency, cost, and greenhouse emissions. This month, the UCS released their second annual hybrid scorecard.

What does the scorecard include?

The UCS Hybrid Scorecard rates cars with regard to four factors. First, the UCS establishes the combined miles per gallon (MPG), or the average of highway and city. This number is estimated by the U.S. Environmental Protection Agency (EPA).

The second piece establishes the environmental improvement score, on a scale of one to 10, which compares the emissions of the hybrid to the conventional fuel counterpart of each model.

The third category, titled Hybrid Value, assesses the cost-effectiveness of each model.

The final category investigates the forced features, or the premium features that come standard with each given hybrid. To get the ranking, the UCS then compares these standard features with those of the model's conventional fuel counterpart.

How automakers fared this year

The 2011 Hybrid Scorecard showed energy efficient cars have not made the impact the group has hoped for. While 34 cars were reviewed, only 13 lowered the emissions compared with the standard models by 25 percent, the news source reports.

Notable successes were the Toyota Prius, which ranked first in the non-luxury category for the second year in a row, and the Honda Civic Hybrid at second in the category. The UCS noted how the Prius has a combined mpg of 50, while the vehicle tacked on an environmental improvement score of 9.2 out of 10.

The UCS explained how automakers negotiated the actual efficiency of vehicles through a strong focus on performance, such as speed and visual appeal, the news source reports. The group also explained they felt automakers were shooting themselves in the feet by tacking on unneeded standard features that made the base price of energy efficient cars too high for consumers to pay.

Overall, the UCS was disappointed in the improvements and felt on the whole, automakers did not live up to expectations and promises made with regard to lowering emissions and abilities to save fuel, the news source reports. While green technology progresses, automakers will need to meet environmentalists halfway between cost and eco-friendly characteristics.

The UCS recommends using their scorecard as a guide for finding the best deal with hybrid cars. The organization notes the hybrid label does not always mean a more efficient or more eco-friendly automobile.

Consider using the UCS Hybrid Scorecard in conjunction with the EPA and the given car dealer, to ensure the choices you make as a consumer are the wisest.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/scientists-express-disappointment-through-annual-hybrid-scorecard-800567843.aspx Wed, 03 Aug 2011 09:45:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-study-finds-just-how-much-color-affects-car-buying-800559864.aspx Car buying is often an elaborate process. Safety, style, price, performance and fuel efficiency are criteria considered by most consumers. While everyone has their own preference of which aspect of the car is the most important, some lean more toward the general aesthetic of the vehicle. The color of the car is often at the forefront of first-time car buyers' minds.

The winning colors

DuPont Automotive recently released a report of the most popular colors for cars over the past year. According to the site, silver took the top honors for the seventh year in a row.

Dupont believes that silver was so popular as a result of the clean, mechanical and technological aesthetic it carries in the eyes of car buyers. The report stated that 26 percent of car buyers took silver, 24 percent took black, white and gray took 16 percent each while red and blue made up 6 and 5 percent of new cars, respectively.

Some speculation surrounds the report, especially with regard to the reasons behind the trends in choices. The British Medical Journal (BMJ) stated that people who drive silver cars are 50 percent less likely to get into a serious accident than drivers in white cars, while brown, black and green are the most prone to accidents, the source reports.

They add that this may be a result of silver reflecting more light than other cars, hence making them more visible to other drivers.

How much color matters

As the Dupont report elucidates, silver is the most popular choice for drivers across the world, while certain classes of cars, such as luxury and compact, are more popular in black and white.

BuyingAdvice.com goes on to explain that if a car is not available in the preferred color, 40 percent of drivers will decide to change brands.

Myth of color correlating with car insurance rates

Although certain colored cars have been proven to be more susceptible to car accidents, the color of a car does not affect auto insurance rates.

A common myth was that red cars must pay higher insurance, though this is not true, as can be seen when looking for auto insurance rates. Myths aside, the Insurance Bureau of Canada (IBC) reports that 40 percent of Canadians mistakenly believe that colors do have an impact on car insurance.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-study-finds-just-how-much-color-affects-car-buying-800559864.aspx Mon, 25 Jul 2011 15:30:35 http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-best-cars-featured-in-james-bond-films-800559480.aspx One notable feature of nearly every James Bond film is what car the famous movie character drives. Over the years, 007 drove several high-end, luxury vehicles—many of which were operated while the MI6 agent narrowly escaped from a high-speed pursuit.

While many of the vehicles are esteemed by auto enthusiasts, two Bond experts who have written books about the film character—Lee Pfeiffer and Ray Dempsey—reveal their top picks to Cars.com.

To qualify for the list, though, each vehicle under consideration needs to have some type of MI6 gadget in it, been driven by Bond and been featured in one of the movies for a considerable amount of time.

1964 Aston Martin DB5 - Goldfinger

Both Pfeiffer and Dempsey agree that the best car Bond has ever sat behind the wheel of is the 1964 Aston Martin DB5, featured in the 1965 007 hit, "Goldfinger."

"The DB5 launched the era of space-aged gadgets that would become a hallmark of the series, much to the chagrin of Sean Connery, who felt the character of Bond was now overshadowed by the hardware," Pfeiffer told the website.

1975 Lotus Esprit - The Spy Who Loved Me

Featured in the 1977 Bond film, "The Spy Who Loved Me," the 1975 Lotus Esprit is the second-ranked vehicle by the experts. Dempsey told Cars.com the car is "a clever product from Q's laboratory," and praised it for being able to convert into "a submarine capable of laying underwater mines and firing lethal antiaircraft missiles."

Pfeiffer added that many Esprits were used to film the movie—six of which were miniature models used in some of the action sequences featuring the car.

1997 BMW 650iL - Tomorrow Never Dies

The second vehicle not made in England that was featured in a Bond movie, the BMW 6500iL was the secret agent's main ride in 1997 in "Tomorrow Never Dies," and may have cost 007 a considerable amount for auto insurance.

According to Pfeiffer, the vehicle is a key component of the movie, as it was featured in a lengthy car chase scene, while Bond uses a cell phone that allows him to drive and fire weapons from it.

1985 Aston Martin Volante—The Living Daylights

Another Aston Martin model featured in a 007 film was the Volante, in "The Living Daylights," released in 1987—Timothy Dalton's first time out as Bond. Compared to previous Bond films, the Volante was the most high-tech ride ever used by the agent in the movie series.

Among its features, according to Pfeiffer, were laser beam devices in the car's hubcaps, bulletproof windows, dashboard control system for weapons and jet propulsion.

1930s Bentley Mark IV Convertible - From Russia with Love

One of the more atypical Bond cars, Pfeiffer and Dempsey told Cars.com, the Bentley Mark IV Convertible was used by the agent in "From Russia with Love" in 1963.

"Although the car featured no weaponry, it did have one 'high-tech' gadget for 1963: a telephone," said Pfeiffer.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-best-cars-featured-in-james-bond-films-800559480.aspx Mon, 25 Jul 2011 10:36:50 http://www.allstate.com/insurance-industry-news/auto-insurance-news/employment-growth-in-automotive-sector-800553367.aspx The American auto industry is continuing its slow and steady recovery, and along with international manufacturers, is hiring a significant number of U.S. workers. Volkswagen has opened a plant in Tennessee which will need 2,000 workers and Honda is in the process of hiring 1,000 workers in Indiana, according to the Associated Press.

In addition to foreign companies, General Motors is poised to hire 2,500 workers to help build the Chevy Volt. GM will be investing $69 million in the Detroit-Hamtramck factory and adding two shifts of workers to help make the Volt, as well as the Chevy Malibu and Impala.

Surprising industry growth

This new hiring spree shows the industry is growing much faster than the rest of the economy, which has been slow to recover. Airplane manufacturers, shipbuilders, healthcare providers and the federal government are all lagging behind in their industry growth, the media outlet reports.

Experts believe this sector's recovery is impressive because General Motors and Chrysler both needed government bailouts in order to avoid complete collapse. They entered bankruptcy proceedings in 2009, as auto sales hit a 30-year low.

A positive sign for auto workers

A mere 623,000 Americans were employed by the auto industry in June of 2009, and that number has grown by 12 percent to the current 700,000 employees. Adding jobs is a direct result to the increasing number of sales by both foreign and domestic carmakers.

"The buzz is incredible around here about what opportunity we're going to get if we can build a great product," Ben Edwards, who went to work for Volkswagen in Chattanooga, Tennessee, last year and is now a team leader on an assembly line that installs tires and seats, told the source.

Volkswagen is estimating its plant will also create an additional 9,000 spin-off jobs in the region, 500 of which may be in auto-supplier plants being opened nearby. Most companies laid off so many employees during the recession that they are now trying to rehire and rebuild staff to accommodate growing sales needs.

Unusual job growth trend

Traditionally the construction industry will see the first signs of growth in an economic recovery because the housing market is usually the first to turn around. Unlike years past, home prices continue to fall and construction jobs tend to be few and far between. The industry has dropped 8 percent of its workers over the last two years, the AP reports.

Ohio has seen a 31 percent increase in auto manufacturing jobs since 2009, and parts makers in Michigan have hired almost 20,000 workers. Similar jobs have increased by 15 percent in Alabama and Kentucky, where parts are made for Mercedes, Honda, Chevy and Toyota.

In addition to hiring manufacturers, these automakers are also hiring more white-collar workers. As the technology inside of vehicles advances and car safety improves, these companies need engineers with a certain level of expertise. http://www.allstate.com/insurance-industry-news/auto-insurance-news/employment-growth-in-automotive-sector-800553367.aspx Fri, 15 Jul 2011 15:21:51 http://www.allstate.com/insurance-industry-news/auto-insurance-news/flying-car-receives-special-exemptions-800553348.aspx In an effort to allow the Transition, a road-able aircraft, to continue its development, the National Highway Traffic Safety Administration has granted Terrafugia special exemptions, according to the Wall Street Journal.

This is the first time a combined flying-driving vehicle has received special consideration from the Department of Transportation since the Federal Motor Vehicle Safety Standards were established in the 1970s. It is unclear what the rates for auto insurance and aircraft insurance will be, or if they might be combined.

What are the exemptions?

These special circumstances, which are limited to vehicles that drive and fly, will allow the Transition to use plastic windows instead of standard automotive safety glass. They will also allow the vessel to use tires not usually allowed on multi-purpose vehicles, the media outlet reports.

Terrafugia claims the safety glass will add too much weight and may obstruct the pilot's view. Also, the polycarbonate windshields used in aircraft are designed to withstand bird strikes, which are typically more dangerous to pilots than drivers.

Why provide them?

The exemptions have been made because the NHTSA decided the company has made efforts to comply with standards, but doing so may cause substantial economic hardship, according to the Aircraft Owners and Pilots Association.

Many of the issues the company has faced are a result of the dual nature of the vehicle. Last year the Federal Aviation Administration decided to allow the vehicle to be 100 pounds heavier than is typically allowed for light sport aircraft, the WSJ reports.

The tires are designed to withstand the stress of landings and are rated for highway speeds. Several exemptions have been made for these tires because there are different rules for passenger cars and light sport aircraft.

Delivery schedule postponed

The first deliveries of the Transition were originally slated to be made at the end of the year, but that date has been pushed off due to production issues and problems with suppliers, according to the media outlet. The company is now estimating the final product will not be ready until late 2012.

Additionally, the vehicle cannot currently get airborne carrying to normal American men as it is can only lift 330 pounds of passengers and payload, according to the UK's The Register. The price has also jumped from $148,000 to $250,000.

Benefits of production

Terrafugia has claimed the vehicle will provide 500 manufacturing, engineering and support jobs by 2015, once production is in full swing, the AOPA reports. The ability to turn the aircraft into a car may help increase safety among pilots by allowing VFR-only operators the option to divert to the nearest airport during deteriorating weather conditions. They would then be able to finish their trip by road. Visual flight rules (VFR) require a pilot can see outside the cockpit in order to control altitude, navigation and avoid obstacles. These pilots are not typically given routes or altitude by air traffic control.

The NHTSA granted Terrafugia three-year exemptions from tire selection, rims for cars and glazing materials. But, they granted only one-year exemptions from occupant crash protection requirements, advanced airbags and electronic stability and control systems, according to the news source. http://www.allstate.com/insurance-industry-news/auto-insurance-news/flying-car-receives-special-exemptions-800553348.aspx Fri, 15 Jul 2011 15:13:26 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-increasing-the-sophistication-of-promotional-items-800553337.aspx With the hundreds of options on the market for Americans buying a new car, many companies have tried to personalize the shopping experience for their customers. A car can be seen as an extension of an individual, whether it's an environmentally friendly driver in a Prius, or a farmer in a pick-up truck.

However, such stereotypes are few and far between these days, as cars with good gas mileage may be appealing to a wide variety of Americans, and those who live in places with inclement weather may truly feel the need to have four-wheel drive on their automobiles.

Ways to make more money

While individuals may be searching for other ways to express themselves, beyond the make and model of the car they drive, carmakers are attempting to capitalize on a growing accessory market, according to MSNBC. Companies are also licensing the use of their name on a number of different products deemed flattering, such as hats, polo shirts, pens and key chains.

Audi bicycle

Some companies have decided to take their merchandising efforts to the next level with expensive and unique products. Audi is known for its all-wheel-drive vehicles that are often thought of as sophisticated and ahead of the design curve. To keep that standard running, the company had a line of bicycles designed to their specifications. The Two-wheelers are made with hollow frames constructed with recyclable and biodegradable wood and retail for around $7,460.

Bentley meets Breitling

Bentley, a company whose cars remain out of reach for much of the population, has teamed up with watch giant Breitling to create a unique time-piece. The latest collaborative watch was created to celebrate Bentley Continental Supersports' 205 mile-per-hour speed record, set on the frozen Baltic Sea.

"This is held up as the most successful of the watch and car company collaborations," Lindsay Weaver, director of licensing and branded goods for Bentley, told the media outlet.

Dodge brilliance

For more financial conscious consumers, Dodge Motor Company has ingeniously emblazoned the school-yard red rubber ball with the company's logo. The balls, often used to play dodgeball, take the play on words and combine for a simple and smart marketing tool, according to the news source.

High-end options

Ferrari offers customers the opportunity to purchase a piston from one of its Formula One race cars. Promoting the duality of the sport and the history of the company, Jaguar goes step further, allowing interested parties to purchase a race helmet branded with company logos.

Get outside and exercise

Jeep Wranglers have been known to attract individuals who enjoy the outdoors and an active lifestyle, so it is not difficult to see why the company lent its name to a jogging stroller. New moms may not be able to off-road with a little one strapped in, but they can still enjoy Mother Nature with a study running option. http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-increasing-the-sophistication-of-promotional-items-800553337.aspx Fri, 15 Jul 2011 15:09:19 http://www.allstate.com/insurance-industry-news/auto-insurance-news/states-using-vanity-plates-to-supplement-budget-problems-800548632.aspx In an effort to battle an ever-growing budget crunch across the country, many states have started charging significant amounts of money for personalized license plates, according to The Wall Street Journal.

Some parts of the country have historically charged as little as $5 for the specialized car accessories, but recently Texas prices hit as high as $15,000 for a plate which read FERRARI.

Many states are raising surcharges and proposing annual fee hikes for these personalized plates, but the Lone Star State Star took it even further. Texas hired a private company to raise $25 million over the next five years with a license plate auction, the newspaper reports. The Texas Department of Motor Vehicles was able to raise $139,400 during the state's first auction.

"The potential market is huge," Stefan Lange, who conducted a study for the American Association of Motor Vehicles Administrators about total vanity plate revenue in the country, told the media outlet.

Record-setting prices

In the U.S., more than 9.3 million vehicles have vanity plates, but the 46 states that collected fees only raised $177 million, according to the AAMVA. In Europe, one man paid $400,000 for a specific plate, while in Abu Dhabi another driver purchased a vanity plate for $14.3 million that simply read "1".

Virginia had the highest percentage of new vanity plates, with 16 percent of the total plates given in the country, followed by New Hampshire and Illinois. Some states allow the transfer of plates while others have auction and inheritance allowances.

Link with road rage

Some experts believe vanity plates display egotism and make a blatant portrayal of how owners believe they should be treated. Several psychologists believe drivers with these plates are more likely to express rage through aggressive behavior.

"We were surprised that something as simple as a vanity plate or having some personal identity attached to a car relates to a willingness to cut someone else off," Jake Benfield, an assistant professor at Penn State University-Abington, told the media outlet.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/states-using-vanity-plates-to-supplement-budget-problems-800548632.aspx Mon, 11 Jul 2011 08:31:47 http://www.allstate.com/insurance-industry-news/auto-insurance-news/study-high-number-of-auto-accidents-caused-by-women-800547961.aspx Women may be more likely to file auto insurance claims due to accidents than previously thought, as the number of female drivers involved in crashes is substantially higher than researchers at the University of Michigan initially believed, a new study shows.

The study, conducted by UM's Transportation Research Institute, was based on 6.5 million car accidents reported between 1988 and 2007. The researchers used the General Estimate System to pre-determine what they thought they would find from that sample based on the ratio of male to female drivers.

According to researchers, because men make up roughly 60 percent of all driving, and women make up 40 percent, they expected to discover a proportionate ratio of accidents based on those figures.

Female-to-female accidents were expected to make up roughly 16 percent of all accidents, while male-to-male crashes were projected to account for 36 percent of all crashes.

However, the study showed accidents involving two female drivers made up more than 20 percent of all accidents and crashes involving two male motorists made up just 32 percent.

Researchers unsure of reason for results

Michael Sivak, one of the two researchers who conducted the study, stated there isn't a clear explanation as to why the results came out this way.

"The results indicate that in certain crash scenarios, male-to-male crashes tend to be underrepresented and female-to-female crashes tend to be overrepresented," said Sivak. "This pattern of results could be due to either differential gender exposure to the different scenarios, differential gender capabilities to handle specific scenarios or differential expectations of actions by other drivers based on their gender."

He added preventing auto accidents from occurring is based on a variety of factors, including not only psychomotor ability, but also interactions and patterns of traffic and past experiences which influence future driving methods.

A separate study conducted by the Sivak and his partner, Brandon Schoettle, found driving in different states may also have an impact on the frequency of fatal car accidents.

"There is a wide variability across the 50 states in the percentage of all drivers involved in fatal crashes who were out-of-state drivers, with a minimum of 5 percent in California to a maximum of 41.2 percent in Wyoming," the study concluded. http://www.allstate.com/insurance-industry-news/auto-insurance-news/study-high-number-of-auto-accidents-caused-by-women-800547961.aspx Fri, 08 Jul 2011 13:16:41 http://www.allstate.com/insurance-industry-news/auto-insurance-news/slam-dunk-champ-griffin-inks-multi-year-deal-with-kia-800544805.aspx Ever since Los Angeles Clippers forward Blake Griffin soared over a Kia Optima at the 2011 Slam Dunk Contest, the carmaker has seen a dramatic increase in the number of consumers buying cars. As a result, Kia has signed Griffin to a multi-year deal to serve as the company's global spokesman.

Year-to-date sales for Kia have increased 45 percent

In a news release, Kia said it hopes to build upon the "connection forged" between Kia and Griffin when he jumped over the 2011 Optima in February, which Kia turned into a 30-second nationwide television commercial.

Kia reports since the beginning of the year, overall sales are up nearly 45 percent, which it attributes to its sports marketing campaign.

"Blake Griffin is one of the most exciting players in basketball and has proven that he is an all-star on and off the court with extraordinary talent and a youthful, dynamic style that matches the energy and spirit Kia puts into every vehicle it produces," said Michael Sprague, vice president of marketing and communications for Kia. "Expanding our presence in professional basketball by adding Blake Griffin as a global spokesperson will allow us to continue our momentum."

Kia says it's confident Griffin will help enhance the carmaker's popularity even more by appearing in advertising campaigns and by making public appearances on behalf of the company.

Kia receives high ratings from ALG, Cars.com

The automaker has been the recipient of a steady stream of good news in recent months. Not only have year-to-date sales increased, but several of its models have received glowing reviews. For instance, car valuation company ALG gave the 2012 Kia Sorento a high residual value rating after the carmaker improved the model's fuel economy, and Cars.com listed the 2011 Soul and Forte as being among the best models for its "Top 10 Urban Cars" list.

Blake Griffin had a stellar rookie season in the NBA

Griffin had a successful year as well. In addition to being crowned as the 2011 Sprite Slam Dunk champion, he also received the NBA's Rookie of the Year honor. Furthermore, Griffin was the first rookie to be voted into the All-Star Game since Tim Duncan in 1998, and led his team in various statistical categories, including points and rebounds.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/slam-dunk-champ-griffin-inks-multi-year-deal-with-kia-800544805.aspx Tue, 05 Jul 2011 13:01:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/worst-cities-in-us-for-vehicle-theft-in-2010-800544549.aspx Though a new report from the National Insurance Crime Bureau shows the total number of cars stolen in the U.S. decreased in 2010 for the seventh straight year, high car-theft rates in some cities may have led to auto insurance claims for many drivers.

The NICB's study found Fresno, California, was the worst city last year in terms of vehicle theft, as more than 7,500 stolen cars were reported. Three other California metropolitan areas—Modesto, Bakersfield-Delano and Vallejo-Fairfield—as well as Spokane, Washington, rounded out the top five.

Car thefts increased in each of those cities from 2009. However, numbers six through 10 on the NICB's report experienced declines in thefts. These cities included four additional California metros.

"While improved anti-theft technology and law enforcement efforts have had a significant impact on thefts, professional criminal rings and gangs are active in parts of the country and stopping them is the ongoing challenge," said Joe Wehrle, president and CEO of the NICB.

Population density affects rankings

Frank Scafidi, spokesman for the NICB, told MSNBC.com a likely reason why many California metros with average populations ended up at the top of the bureau's list is lower population density. He stated the higher the population is in a city, the lower the theft rate is likely to be.

"What they lose in Fresno or Modesto they lose at half-time at a Lakers game," Scafidi told the news source. "But L.A. never makes the top 10 because there are 18 million people down there."

He added while it may seem like California's high unemployment rate and other poor economic conditions may have contributed to the rise in car thefts, there is no statistical evidence to back that claim.

Auto thefts down, car components becoming new focus

Though vehicle thefts have fallen in the last year, Terri Miller, director of the Michigan-based Help Eliminate Auto Theft program, told MSNBC.com thieves are still stealing car parts at a high rate. Miller thinks this is likely due to improved car security systems and features.

"Cars are just getting harder to steal," Miller told the news source. However, items such as tires and rims are being easily sold on the black market. http://www.allstate.com/insurance-industry-news/auto-insurance-news/worst-cities-in-us-for-vehicle-theft-in-2010-800544549.aspx Tue, 05 Jul 2011 08:19:59 http://www.allstate.com/insurance-industry-news/auto-insurance-news/earthquake-continues-to-disrupt-automobile-market-months-later-800536131.aspx The devastating Japanese earthquake this spring continues to send ripples through the automotive industry, causing prices to increase. The average price of a new car is up $350 this year, according to Edmunds.com.

Not only did Japanese carmakers stop production, but parts shortages have forced other car manufacturers to slow down, Forbes reports. This is causing dealerships to have lower inventories and offer fewer incentives.

Worth the wait

Some experts believe car shoppers who are interested in buying a new car may want to wait until later in the year until production can get back to normal, the media outlet reports. For individuals who have a lease expiring in the next few months, trying to extend it through the end of the year may be beneficial.

Taking over the end of someone else's lease is also an option individuals may want to consider. This is called a bridge-the-gap lease and does not typically require a down payment.

"Taking over an eight-month lease with low monthly payments would allow a person to delay their car shopping until the beginning of 2012, when inventories are expected back at normal levels," Sergio Stiberman, the founder and CEO of LeaseTrader.com, told Forbes.

The prices of used cars are also at record highs, making them a less than desirable alternative, according to the media outlet.

Fewer incentives being offered

With demand high and inventory low, dealers may not feel the need to offer as many discounts as they did in years past. The average true cost of incentives was $2,118 in April, which is a $250 reduction from March and a 19.6 percent decrease from a year ago, Edmunds.com reports. It's also the lowest spending by dealers in six years.

"This is the clearest indication yet that automakers are gearing up for inventory shortages," said Jessica Caldwell, director of industry analysis for Edmunds.com. "Demand for new cars has been growing as the economic recovery has strengthened, but now the industry may experience a hiccup if consumers decide to wait for the next deal to come around, which may not be until the autumn."

However, some shoppers will still be able to find deals when looking at vehicles. Some car dealerships will offer cash rebates to military personnel, college students and recent graduates, according to Forbes. Shoppers who have another vehicle to trade in may also receive extra discounts since used car demand is so high. http://www.allstate.com/insurance-industry-news/auto-insurance-news/earthquake-continues-to-disrupt-automobile-market-months-later-800536131.aspx Wed, 22 Jun 2011 12:22:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/virtual-travel-through-google-maps-800535934.aspx While technological advancements continue to change the way individuals go about their everyday lives, the great American road trip may soon be a thing of the past.

Google Maps with Street View allows individuals to explore the world through 360 degree street-level imagery. This feature enables travelers to check out restaurants and neighborhoods in places they may be considering visiting.

Take a virtual road trip

However, AOL autos reports some potential travelers are using this feature to go on virtual road trips, exploring the country without ever leaving the comfort of their living room. Eliminating the need for gas and an emergency car kit can help potential travelers save a significant amount of money.

Several individuals have dedicated websites that allow visitors to go on virtual road trips with them. Some sites have teams and travel journals, while others document a trip they may have taken with a friend.

Creating art out of images

Artist John Rathman uses Google Maps to capture artistic views ranging from unique to disturbing. Some of Rathman's pictures display beautiful images of wild animals in their natural habitats, including penguins and moose.

One of Rathman's more unsettling snapshots shows a small baby crawling alone in front of a department store with no adult in sight. In addition, the artist was somehow able to capture the characters from the Wayne's World movies walking down the street.

International travel

While some Americans may still have the desire to travel the highways of this country, having the means to do that across the globe may be out of reach for most. Google Maps not only provides images of the U.S. but also of many areas around the world.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/virtual-travel-through-google-maps-800535934.aspx Wed, 22 Jun 2011 08:31:05 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-sales-in-may-included-positive-trends-800530041.aspx Due to high gas prices, supply shortages from Japan and an economy which continues to struggle, fewer Americans were buying a new car in the month of May, as many carmakers reported negative sales data. But as the Detroit News recently documented, every cloud has its silver lining.

Jeep sales strong in May

According to the newspaper, there were several areas of the automotive industry that showed improvement. For instance, Jeep, owned by Chrysler Group, had a particularly prosperous month, as retail sales increased 55 percent compared to May 2010, and are up 44 percent for 2011.

The newspaper says Buick also bucked the negative buying trend, as General Motors reported a swift rate of sales for the luxury model.

European automakers increase sales by double-digits

Furthermore, because double-digit declines for Japanese automakers' Toyota and Honda hogged the headlines, automotive observers may have missed the fact most European carmakers had double-digit sales increases. The paper reports European manufacturers like BMW, Jaguar, Saab and Volvo all saw sales jump in May, with the rate of Saab purchases increasing 120 percent compared to May 2010.

The Detroit News says a few other positive indicators may have escaped car enthusiasts' attention, such as Volkswagen becoming the 11th-best selling brand in America after moving 30,100 units. And even though General Motors had a negative sales month comparatively speaking, it was the only carmaker to sell more than 1 million units, the source reports. The Detroit News expects Ford and Toyota to cross the 1 million units sold threshold in June.

Low-interest financing still available, but not for long

How other car sales fare in June is uncertain, but U.S. News and World Report says it may all depend on whether buyers take advantage of the low-interest financing several manufacturers are offering. For instance, the magazine reports Toyota, Chrysler, Honda, Mazda and Ford are all offering financing rates of 2.5 percent or lower on several models. The low-interest financing deals won't last long, however, as they're set to expire June 30 for Toyota and July 5 for all the other automakers, according to the source.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-sales-in-may-included-positive-trends-800530041.aspx Tue, 14 Jun 2011 13:27:22 http://www.allstate.com/insurance-industry-news/auto-insurance-news/sounding-off-on-the-car-horn-800517815.aspx While several factors influence buying a new car, the sound of its horn probably isn't one of them. And while the sound of a car horn may be a small issue for some, it's a big issue for others—particularly automakers.

Pat Seashore of Ford Motors is one person who takes car horns seriously—it's what she does for a living.

"Horns are tremendously important," said Seashore in an interview with USA Today. "The horn is a communication device. You alert someone that something is happening."

Some countries require a minimum decibel level

Dubbed the "horn czar," Seashore, an engineering supervisor for Ford, recently spoke to the paper about the factors Ford takes into consideration when determining a car's noise. And according to Seashore, none is more important than how loud of a sound it makes.

For instance, if a particular model is being sold in Europe, South Korea or Japan, Seashore says the horn has to be at least 93 decibels. According to from the National Institute on Deafness, 93 decibels is louder than a lawnmower engine but softer than a revving motorcycle.

How loud must an American-sold vehicle be? Seashore tells the paper the U.S. doesn't have a minimum level. As a result, Seashore says the Ford vehicles tailored to the noise specifications in Europe and parts of Asia are the same ones sold in the U.S.

Varying the horn volume

Despite the absence of a noise minimum requirement in the U.S., Seashore told the paper Ford tries to adjust the noise levels of a horn depending on what it's being used for. For instance, when people lock their cars remotely, the vehicle often beeps to alert the driver it's locked. Seashore says Ford is trying to make that noise slightly softer than the one used to alert fellow motorists to something urgent.

Of course, car horns aren't always used solely for their intended purpose. They may be used to vent frustration or as a way to say hello or goodbye. FamilyCarGuide.com recently chronicled the ways in which car horns may be misused, calling them the "Top 10 Car-Honking Sins." Included among the "sins" were honking the horn late at night, incessant beeping and laying on the horn behind someone who's driving slowly.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/sounding-off-on-the-car-horn-800517815.aspx Fri, 27 May 2011 13:29:44 http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-unexpected-things-rise-when-gas-prices-increase-800515614.aspx From more energy efficient cars being purchased to increased bicycle traffic, there are certain things people expect to see when gas prices increase. But prices at the pump lead to increased activity in ways you may not expect—from how frequently people surf the net to the number of scooter thefts. A recent article from Fast Company talked about this trend.

Google may make money when gas prices rise

For example, the source reports one of the internet world's most affluent companies—Google—makes out quite well when gas prices spike. Citing a study from Marin Software, Fast Company says there's a strong correlation between the number of users who click on paid advertisements on Google's website and gas prices. In short, the higher gas prices go, the more clicks there are and the more money Google makes.

The magazine says the study's researchers can't explain why this is the case. The most widely accepted theory is more people take advantage of the free shipping many retailers offer when gas prices are high and buy things from the comfort of their own home rather than driving to a traditional store.

Scooter thefts jump

Something else that increases when gas prices increase is scooter thefts. Citing an interview a Tennessee scooter business owner had with a local television station, Fast Software says anecdotal reports indicate thefts rise in tandem with gas prices.

Given scooters' mileage, however—according to USA Today, the average Vespa scooter gets approximately 75 miles to the gallon—it's not too surprising scooter thefts are believed to increase with gas prices.

Fryer grease also stolen

Recyclers buy used grease—often referred to as yellow grease—from restaurants, clean it through processing and then resell it to other restaurants for their use. According to Reuters, thefts of yellow grease have risen in recent months with the cost of oil. The news service reports one Lincoln, Nebraska, fast-food chain had 4,200 pounds stolen from one of its restaurants recently.

[Grease thefts] are on the rise and it's because of higher oil prices," said Tom Cook, president of the National Renderers Association, in an interview with the source. "I have one member who told me it's costing his business $1 million a year."
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-unexpected-things-rise-when-gas-prices-increase-800515614.aspx Wed, 25 May 2011 13:10:48 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-engineers-working-to-use-dandelions-as-plastics-modifier-800515213.aspx People who buy a new car from Ford may have the added bonus up making an environmentally friendly choice without even realizing it.

Working alongside researchers at Ohio State University, officials with Ford say they are close to developing a new rubber-like substance from dandelions which could replace synthetic, petroleum-based rubbers, according to the New York Times.

The paper states the material could be used for car features such as cup holders, interior trim and floor mats, and may provide a green alternative to petroleum-based vehicle materials.

Philip Gott, managing director of IHS Automotive, an auto industry forecast center, told the newspaper the development of a rubber replacement, which is more eco-friendly, could be substantially positive for the environment.

"Far from 'greenwashing,' there has been a longstanding effort on the part of the industry to use natural plants to produce manufactured goods," he told the paper, adding European auto manufacturers are also looking into creating and using the new material.

Ford has history of working with alternative materials

Since Henry Ford began the company, the paper states Ford has tested a variety of alternative products and materials to use in their vehicles, such as toy parts. Today, officials with the auto manufacturer have made a number of changes to vehicle materials, including the use of soy-based foam to create car seats.

The company conducted research with Bridgestone in 2008, according to the newspaper, to develop tires from the Russian dandelion, as well as a Southwestern shrub called guayule.

Company ranked low in terms of environmentally friendly practices

One possible reason for the switch to alternative materials in their vehicles was a poor ranking in regard to fuel economy and carbon emissions from the Environmental Protection Agency for the past few years. Ford's car models for 2008 to 2010 ranked third-worst in those categories, the paper says.

"Only about 10 to 20 percent of the emissions are tied up in manufacturing," Jim Kliesch, research director in the clean-vehicles program at the Union of Concerned Scientists, told the paper. "So that leaves 80 to 90 percent to operating the vehicle and creating the fuel." http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-engineers-working-to-use-dandelions-as-plastics-modifier-800515213.aspx Wed, 25 May 2011 07:47:22 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-york-city-unveils-its-taxi-of-tomorrow-800513512.aspx When it comes to recognizing iconic markings found on the road, right up there with stop signs and traffic lights is the taxi. Few can mistake its bright yellow exterior and black trim for the ride millions of city dwellers hail down every year.

But in New York City, the taxi cab is getting an upgrade. And while its refurbishing won't be so significant that people will no longer be able to recognize it, it's being 'hailed' as the taxi of tomorrow.

Nissan wins title of 'Taxi of Tomorrow'

Recently, Mayor Michael Bloomberg and Taxi and Limousine Commissioner David Yassky announced the winner of the Taxi of Tomorrow competition, which was launched by Bloomberg in 2007. Built by Nissan, the cab, which will be the exclusive taxi of New York, will be the NV200. It’s being billed as "the safest, most comfortable, and most convenient cab" Manhattan has ever had, according to Bloomberg.

Deputy Mayor Stephen Goldsmith said the mayor's office and the Taxi and Limousine commissioner decided to make the city's taxi more in line with today's vehicles because of the vital role taxis play for the city's residents as well as New York's transportation industry.

"For the first time, we'll have a taxicab that wasn't 'off the rack,' but rather custom-tailored to create the best fit for the drivers, owners, and passengers of our city," said Yassky.

The mayor's office and Yassky said they expect the current crop of taxis to be phased out over the next three to five years , and the Nissan NV200 will be found throughout Manhattan's city streets by the fall or winter of 2013.

Nissan faced stiff competition from Ford

While the mayor and the Taxi Limousine Commission boast of the Nissan's array of amenities—which includes more luggage room, passenger reading lights, and anti-bacterial non-stick seats—it faced stiff competition. Last month, the New York Times took a ride in a Ford taxi model, which was among the three cars city officials were considering. The paper said not only was it fun to drive, but passersby gave it a "thumbs up."

For the most part, according to the Times, passengers praised the Ford Transit Connect, as one rider labeled its ride as "really smooth," while another enjoyed the fact it had more head room, making it easier to enter and exit the vehicle.

The Nissan has similar ease-of-entry features, however, such as built-in grab handles, sliding doors and a more spacious cabin.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-york-city-unveils-its-taxi-of-tomorrow-800513512.aspx Mon, 23 May 2011 14:10:51 http://www.allstate.com/insurance-industry-news/auto-insurance-news/consider-bringing-a-wingman-along-when-looking-to-buy-a-car-800513443.aspx Though finding the right auto insurance policy and taking care of car maintenance are things a vehicle's owner will have to handle on their own, Edmunds.com states they can - and should - have a wingman by their side when actually purchasing a car.

While it's ultimately up to the one buying a new ride to decide which automobile is right for them, the source states a trusted friend can help that person make the right decision by providing expert insight and opinions about the potential vehicles.

Finding the right wingman

A good wingman, according to the source, is someone who can contribute a considerable amount of knowledge and expertise to the car buying process. This person is oftentimes a friend, a classmate, a roommate or a family member. But, for those in the market for a car doesn't have someone close who they know knows a substantial amount about vehicles to help them with the task, the website suggests bringing someone they trust and are comfortable with.

Even if the buyer's friend doesn't know a rear axle from a hubcap, Edmunds states having someone trustworthy and objective can still be helpful when visiting dealerships and checking out automobiles.

Establish a game plan

After a wingman is found, the website recommends that person and the buyer they're helping come up with an appropriate game plan.

According to the website, one person should do most of the talking with dealers - usually whoever is the best at negotiating - while the other should be asking questions. The latter is often the buyer, the source states, so those who plan on purchasing a car should come up with a distinct list of questions before heading to a dealership, as well as doing their research about what kind of car they want.

Stay close together

Once each person's role is defined, Edmunds says it is important both the buyer and wingman stay close together. If an unsure or nervous buyer is left alone, the source says the chance of making an uninformed opinion or decision could increase, as the buyer may not know how to say "no" to a dealer.

That's one of the main reasons why a wingman can help. The website states this person can help the buyer guide the conversation so they only discuss the essential information, such as what kind of car the buyer is looking for, the price range, desired features and other important details.

Dealers may try to sell added features or show potential buyers more expensive cars. So long as the buyer and their friend stay close to one another, dealers likely won't be able to give their sales pitch. http://www.allstate.com/insurance-industry-news/auto-insurance-news/consider-bringing-a-wingman-along-when-looking-to-buy-a-car-800513443.aspx Mon, 23 May 2011 13:16:24 http://www.allstate.com/insurance-industry-news/general-safety-and-prevention-tips/understanding-the-differences-between-awd-4wd-and-4x4-800513183.aspx For people looking to buy a new car, comparing the features offered by different vehicles is a major part of the process. However, there are a number of vehicle-specific terms which can make it difficult to actually compare features side-by-side.

For cars with rear-wheel or front-wheel drive, the comparisons are fairly simple. But some vehicles are also advertised as all-wheel drive, four-wheel drive, or 4x4, which may all seem like the same thing.

Actual differences uncertain

While there are differences between the designs, no actual legal definition exists for any of them, says Detroit Free Press columnist Mark Phelan.

The Society of Automotive Engineers, which sets definitions for these types of standards, doesn't even use terms such as four-wheel drive or 4x4, meaning carmakers can advertise them as whichever one they want. At first glance, that would mean the all-wheel drive featured on some passenger vehicles might seem similar to that on a pickup truck, but that is not the case.

Key factor is transfer case

The key difference between lighter four-wheel drives and more heavy-duty ones, Phelan says, is a two-speed transfer case. In true four-wheel drive vehicles, the engine's power goes through its drive axles and a two-speed transfer case, which can shift the vehicle into a four-wheel low mode. In off-road situations, such as driving through heavy mud, downshifting the engine allows the vehicle to pull out of deeper holes. All-wheel drive still involves all four of the vehicles' wheels, but there is no low setting for difficult terrain.

AutoTrader adds many of the all-wheel drive systems currently featured on crossover and passenger cars lean more toward front-wheel drive, much like the front-wheel drive vehicles most of them are based on. By contrast, heavier four-wheel drive vehicles, by default, generally send more power to the rear wheels.

The choice between the two, Phelan says, should hinge on drivers' preferences and driving habits. If they want to take a vehicle off-road, then they should look for a two-speed transfer case. Otherwise, a lighter drivetrain should still be sufficient and provide additional grip for those who driving entirely over paved roads.  http://www.allstate.com/insurance-industry-news/general-safety-and-prevention-tips/understanding-the-differences-between-awd-4wd-and-4x4-800513183.aspx Mon, 23 May 2011 08:34:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/used-vehicle-prices-higher-than-ever-800508355.aspx When 16- and 17-year-old boys and girls finish their driver’s education courses, many of them hope their parents will reward them with a new car. However, as most teenagers will testify, parents usually buy their sons and daughters used vehicles, if for no other reason than they're cheaper to buy and less costly to maintain.

But a new report from Cars.com has found used vehicles aren't nearly as inexpensive as they used to be.

Used Hyundai 22 percent more expensive

According to Cars.com's blog Kicking Tires, the average cost for a pre-owned vehicle has ticked up since 2010. The website found compared to April of last year, the cost of a used car has increased 10 percent on average, with the price of certain brands, like Hyundai, increasing as much as 22 percent.

With the Hyundai Elantra and Hyundai Sonata being among the most sold vehicles on the market, the increased demand for Hyundais may be influencing used car dealers to increase their prices. But as Cars.com discovered, used car prices are increasing even among brands which are no longer viable. For instance, the recently-defunct Mercury brand was found to have the second-highest price increase among used cars at 19 percent. Last June, Ford announced it would no longer be selling its Mercury line of automobiles due to poor sales performance.

Cars.com is not the only outlet reporting an increase in the price of used cars. Kelley Blue Book—one of the most definitive resources for new and used car listings—recently announced used vehicles are more expensive now than they have ever been.

Some prices up thousands

For instance, in April 2007, KBB reports a three-year-old used Toyota 4Runner sold for $13,000. Today, a 2008 Toyota 4Runner sells for $20,500—a $7,500 price increase.

KBB reports fuel-efficient vehicle price changes have also been quite dramatic, as a three-year-old Toyota Prius sells for nearly $6,000 more today than 4 years ago.

Are high-priced pre-owned vehicles here to stay? Not according to Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book. Gutierrez said the rising cost of gas is fueling the rise in used car prices, but relief may not be too far distant.

"Mid-to-late summer, gas prices are expected to decrease and when they do, values for many of these fuel-efficient models are expected to drop," said Gutierrez.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/used-vehicle-prices-higher-than-ever-800508355.aspx Mon, 16 May 2011 14:16:47 http://www.allstate.com/insurance-industry-news/auto-insurance-news/how-to-potentially-avoid-becoming-an-auto-insurance-fraud-victim-800507316.aspx For most people, the last thing motorists want to get into is an accident. But, unfortunately, for some motorists, being involved in a crash is their primary goal.

Every year, thousands of U.S. motorists are the unwitting participants of a staged auto accident, which is where another driver intentionally causes a crash in the hopes of bilking auto insurers out of fraudulent damage claims.

The 'swoop and squat'

To avoid being hoodwinked by a potential scammer, Edmunds.com compiled a list of several things to keep in mind on an accident scene. Most of the tips were originally suggested by the National Insurance Crime Bureau.

The NICB reports one of the more common ploys used by auto insurance fraudsters is called the swoop and squat. In these scenarios, a vehicle comes out of nowhere by cutting in front of a person. Hoping the person cut off will follow closely behind them, the scammer slams on the brakes, forcing the tailing car to slam into the back of their vehicle.

To avoid this, Edmunds.com and NICB say it's better to pull over to the side of the road, or into the nearest gas station, and let the would-be scammer continue driving.

Be meticulous about an accident's details

In other accident scenarios, scammers hope the other person involved in the accident will be too naive to write down pertinent details which could lead an investigation if an auto insurance company finds the claim suspicious. Thus, after every accident, NICB and Edmunds.com says it's important to be meticulous about the accident's details. Insurance information should be exchanged, driver’s license and registration details should be shared and pictures should be taken of both vehicles. Police should also be contacted after an accident.

Finally, NICB and Edmunds.com says motorists should also be wary of people who appear to be officials, but who are, in fact, scammers-in-waiting. Thus, the website and advocacy group say to use one's common sense and watch out for things which seem out of place, such as tow truck drivers who recommend specific services without being asked, or random people who offer their legal services.

Be wary of unsolicited service providers

Earlier this year, the NICB issued a release detailing how prevalent unsolicited service providers have become on accident scenes. Some of them make their presence known by contacting accident victims over the phone. According to the NICB, these solicitations occur when phony service providers attain the victim's insurance information and then falsely identify themselves as a representative from their provider.

NICB says policyholders should consult with their provider when they sign up with the company to determine how the claims process works to prevent any confusion.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/how-to-potentially-avoid-becoming-an-auto-insurance-fraud-victim-800507316.aspx Fri, 13 May 2011 13:44:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/aerodynamics-providing-compact-vehicles-with-similar-mileage-to-subcompacts-800507286.aspx Auto experts at an international auto show state aerodynamics is helping car makers get the most out of compacts.

Speaking with auto industry analysts and manufacturers at the New York International Auto Show, a report by Cars.com details why newer-model compact vehicles get the same mileage as subcompact cars, which are considerably smaller.

According to the online source, one answer a number of auto experts cited as a reason for this is aerodynamics.

Compacts better utilize aerodynamics than subcompacts

IHS Global Insight Analyst Aaron Bragman told Cars.com while it may seem easier to make subcompact vehicles more aerodynamic than compacts, that's not the case.

"When you have a B-segment [subcompact] car, it's very hard to make it aerodynamic, given how short it is and how many of them end abruptly," he told the source.

However, Robert Parker, marketing manager with Ford, told the website aerodynamic features on compact cars are just one of numerous reasons why they achieve quality fuel mileage.

Aerodynamic effects seen most with city compact car drivers

Mike O'Brien, vice president of product planning for Hyundai, told Cars.com city drivers who own compact cars are likely to see more of a difference in mileage savings in comparison to subcompact autos.

"Keep in mind that technology will help both [highway and city mileage], but not at the same rates," O'Brien told the source. "The city number is going to be the bigger difference when you go a class up in car size."

Some of the more popular compact cars with these aerodynamic features, according to the site, include the Hyundai Accent, Ford Fiesta and Mazda3.

Price could be issue for aerodynamic vehicles

Though experts told the source the technology for compact and subcompact cars is advancing quickly, affordability remains a substantial problem, as paying for a high-priced, fuel-efficient compact cars, along with auto insurance, may be too much for some consumers.

"You can have the cleanest car in the world, but unless someone buys it, you can't be clean," O'Brien told the website. "It's really a tipping-point discussion."

According to AutoData, the introduction of newer compact cars may have contributed to lower sales for established compact vehicles already on the market this year. The source states sales for the latest versions of the Toyota Corolla, Honda Civic and Ford Focus all fell in April from the same month a year earlier. http://www.allstate.com/insurance-industry-news/auto-insurance-news/aerodynamics-providing-compact-vehicles-with-similar-mileage-to-subcompacts-800507286.aspx Fri, 13 May 2011 13:14:50 http://www.allstate.com/insurance-industry-news/auto-insurance-news/vehicle-history-report-important-for-any-used-car-purchase-800502777.aspx While thousands of Americans purchase a new car each year, many of them may not know how to investigate its history to determine whether they are buying a quality vehicle. Even if a used car looks brand new, it may not run that way, which is why experts recommend buyers obtain a third-party vehicle history report before committing to a purchase.

Why a history report is necessary

A vehicle history report can help assure interested used-car buyers they know what they're purchasing. Reports combine information from the state's Department of Motor Vehicles and Registry of Motor Vehicles, in addition to police reports and other sources, allowing a buyer to analyze a comprehensive look into where that car has been before committing to it. According to CarFax.com, there are certain parts of a vehicle's history a buyer should be sure to look out for.
Previous owners

An automobile is likely to have more wear and tear if it has already gone through multiple owners. While vehicle's such as former rental cars and taxis may sell for less than a typical used vehicle, the source said they will likely have a history of damage or abuse which may affect car safety.

Location is key

A used vehicle from certain sections of the country may be more damaged than others, according to the source. For instance, cars which have undergone multiple winter storms may have some problems from salted roads or excessive water exposure. Similarly, automobiles exposed to floods, extreme heat and ocean air may have hidden damage not seen in vehicles from more temperate climates.

Pay attention to identification

Buyers should be sure to carefully review a vehicle's documentation to make sure they're purchasing the right car. Vehicle identification number (VIN) cloning is typical among car thieves who use a VIN number from a legally owned automobile to mask the identity of a similar stolen model. Many vehicle history reports include detailed descriptions of the car in question, which can help a buyer make sure they're looking at the right model.

As more companies begin selling used cars on the internet, relying on a solid car history report may become more important than ever. The auction website eBay has become a popular source for used vehicles, while other ventures such as driverselect.com are also finding success on the web.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/vehicle-history-report-important-for-any-used-car-purchase-800502777.aspx Mon, 09 May 2011 09:18:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/gas-saving-tips-separating-fact-from-myth-800502767.aspx With gas prices nearing and even surpassing $4 a gallon across the U.S., consumers may be testing a variety of tips in an effort to increase fuel mileage. To help motorists ditch the myths and choose the strategies that work, the Chicago Tribune has analyzed a list of popular ways to save fuel to see which methods actually work.

Fill up early in the morning

False. For years, drivers in hot states have heard filling their gas tank during the morning, when temperatures are coolest, will allow them to get more for their money as gasoline expands in the heat. However, the newspaper said while that strategy may have worked in the past when gas stations still stored their product above ground, these days, stations usually keep their fuel in underground tanks which are set at a cool temperature.

Air up tires

True. Under inflated tires have been proven to use up more fuel, according to the newspaper. While hyper-milers sometimes recommend driving on overly-inflated tires to preserve gas, the source said that could cause premature wear on the tread and may even compromise car safety. Motorists should be sure to maintain tire pressure at the level recommended by the manufacturer to get the best mileage.

Manual cars get better mileage

False. The source said these days, automatic transmissions often receive better gas mileage, a shock to those harboring the popular belief that driving a stick is more energy efficient. For instance, fueleconomy.gov reports the Toyota Tacoma V-6 gets 17 miles per gallon in the city and 21 on the highway with an automatic and 15/19 with a manual, while the Cadillac CTS receives 18/27 with an automatic 16/26 with a manual. However, the news source said manual cars usually cost $700 to $1,200 less than an automatic.

Use premium gas

True. Filling a vehicle with premium gasoline, even if it only requires regular, can lead to slightly improved mileage. However, the source said the improvement is only marginal, and the cost of paying for the premium gasoline will likely offset any fuel savings for most car models.

Turn off the air conditioning

True and false. While those who swear by this popular gas saving method point to the fact using air conditioning uses more fuel by putting an extra load on the engine, the source said most vehicles are now designed with efficient systems. Plus, the aerodynamic drag created by rolling down the windows will usually counteract any benefit shutting off the air conditioning initially had. The source said drivers who are traveling at speeds below 35 miles per hour may be able to save fuel with this method, as almost no aerodynamic drag is created at those low speeds.

Reducing time behind the wheel by carpooling or using public transportation are the best ways to lower gas consumption. Consumers who can't get around their daily commute can also save gas by driving under 60 miles per hour, using cruise control when possible and avoiding sudden braking or acceleration, according to the U.S. Department of Energy.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/gas-saving-tips-separating-fact-from-myth-800502767.aspx Mon, 09 May 2011 08:45:59 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-model-gives-beetle-another-shot-at-life-800502715.aspx While many are nostalgic when thinking of a small, squat, hippy-chic old Volkswagen Beetle, that feeling hasn’t translated into sales. Although a handful of industry experts believe there isn't much life left for the model, MSNBC reports Volkswagen released its new 2012 Beetle in the New York and Shanghai auto shows last month.

The new design of the German "people's car" is only the second remake of the model since it was introduced in the 1938. The original Beetle was a strong seller for 60 years, spurning the mildly successful 1998 reboot, which did not ultimately have the same staying power, according to the news website. Production of that model strained Volkswagen's manufacturing and marketing resources and soon saw sales plummet when the 1998 Beetle's bubble design was primarily embraced by women.
Volkswagen brand design director Klaus Bischoff told the source the company wanted to give the Beetle a more gender-neutral design for its 2012 relaunch.

"I didn't want to lose this beloved icon for the brand," he said. "It was clear for us designers that we didn't want to follow the path of the [1998] New Beetle. That game was over."

The 2012 Beetle will lose the round, circular design of the 1998 model in favor of returning to the basic dimensions of the original model, reported the source. The vehicle has a more pronounced snout, an upright windshield, and large, round head lamps. In addition, Bischoff said the 2012 model includes new, subtle details such as bigger wheels and a built-in rear wing that will hopefully give it a sportier feel.

Volkswagen also plans on releasing variations of the third-generation coupe that will include a turbo and a convertible model.

Although Volkswagen doesn't expect the new Beetle to generate the sales of the original - which the source said has reached world-wide sales of more than 20 million—Jonathan Browning, the CEO of Volkswagen Group of America, told the source the company expects to sell somewhere between 20,000 and 100,000 annually. Sales of the 1998 Beetle only reached about 447,000.

Drivers interested in buying a new car  which saves fuel may be satisfied with the new model. AOL Autos reports the new Beetle is expected to get 29 miles per gallon in the city and 40 on the highway. According to fueleconomy.gov, cars on their Most Fuel Efficient Vehicle list such as the Mini Cooper and Toyota Yaris receive similar mileage.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-model-gives-beetle-another-shot-at-life-800502715.aspx Mon, 09 May 2011 08:39:54 http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-car-sharing-services-may-lack-adequate-insurance-coverage-800500601.aspx As a result of the recession, fractional ownership programs have developed in a number of different industries as a cost-effective alternative to owning something outright. The automobile industry has been no exception, as car-sharing services such as Zipcar and Connect by Hertz have sprung up in recent years.

Though these types of programs may be convenient and financially conservative for users, according the New York Times, they may potentially place drivers at risk due to a lack of adequate liability insurance coverage to protect them in the event of a serious accident.

Insurance may not be enough

Though the concept may be successful, the New York Times reports car-sharing companies may not be doing enough to protect customers, should a serious car accident with multiple injured parties occur. Auto insurance liability coverage for Zipcar users over the age of 21 is capped off at $300,000 per accident.

According to the source, insurance coverage is even lower for Connect by Hertz, which assigns liability insurance equivalent to the minimum levels required by each state in which the service is being operated. Zipcar uses the same practice with its customers who are younger than 21.

Though these levels may be in line with the amounts required by law, the coverage may not be enough for serious accidents.

"That would have to cover mangled limbs, brain damage, pain and suffering and anything else that might befall all the people that a Zipcar vehicle mowed down or plowed into," the source warns.

 Zipcar argues insurance is adequate

Despite the opinion of the New York Times, officials from Zipcar told the source they believe they are providing enough coverage.

"Never in 10 million drives has a single person had to come out of pocket" Rob Weisberg, Zipcar's chief marketing officer, told the source. "Our coverage is two times our next-largest competitor, and our coverage is greater than most Americans have who insure their personally owned vehicles."

However, the source points out some insurance settlements can potentially amount to as much as seven figures in awarded damages—an amount that Zipcar's $300,000 worth of coverage would not be enough to absorb. Many car-sharing customers, particularly those looking to save money by using the service, may likely be unable to afford the difference.

Despite the potential oversights for users, the source says Zipcar has taken more than adequate measures to protect itself from liability. The New York Times reports that, according to the company's recent initial public offering, it carries $5 million worth of liability coverage, should it encounter a legal dispute with a customer.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-car-sharing-services-may-lack-adequate-insurance-coverage-800500601.aspx Wed, 04 May 2011 22:46:35 http://www.allstate.com/insurance-industry-news/auto-insurance-news/motorcycle-taxis-offer-alternative-travel-option-for-busy-commuter-800498807.aspx Moto Limos Club will soon open the nation's first motorcycle taxi service in Los Angeles and New York City.

Commuters in a rush on both coasts may now have more taxi-cab options beyond traditional sedans. In an effort to bypass both New York City and Los Angeles' notoriously gridlocked streets, the company Moto Limos Club is starting a motorcycle taxi service, according to AOL Autos.

Although similar motorcycle taxi services have been driving through Europe's busiest cities for years, the news source said this is the first service of its kind in the U.S. The Moto Limos Club will include a fleet of 2012 Honda Goldwing motorcycles that will run with or without a trailer at the client's request. In addition, the company will also offer a number of Bombardier Can Am Spyder trikes, which consist of a box-shaped cabin that is constructed on top of a three-wheeled motorcycle. To ensure the transportation is safe, the source said the Club will only hire motorcyclists who have at least 15 years of professional riding experience.

The taxi service will feature a Bluetooth-equipped helmet for passengers, as the transportation is aimed for businesspeople and other passengers on the go. In the event of unfavorable weather the taxi will offer all-weather gear to go over the passengers’ normal clothing, while it will also provide thick blankets for chilly temperatures, according to the source.

Moto Limos Club will begin offering taxi services sometime in May. However, passengers cannot simply hail a vehicle off the road—AOL Autos reports it is a membership-only service[AB1] , which costs between $125 and $250 to join.

Despite the entry fee, the service may be well worth the money for commuters in those cities. Forbes Magazine recently reported the National Traffic Scorecard found roads are becoming more congested than ever, with Los Angeles and New York City roadways leading the pack. According to the scorecard, the City of Angels' major highways are congested for an average of 85 hours per week, while New York City is home to the nation's worst traffic bottleneck—the Cross-Bronx Expressway.

While motorcycles may be a faster option for commuters, the vehicles may not be the best option for commuters who want to save fuel. RidetoWork.org reports motorcycles receive an average of 35 to 40 miles per gallon of gas, much better than many automobiles, but still less than many hybrid vehicles that are currently on the market. http://www.allstate.com/insurance-industry-news/auto-insurance-news/motorcycle-taxis-offer-alternative-travel-option-for-busy-commuter-800498807.aspx Tue, 03 May 2011 08:46:12 http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-ford-gm-toyota-have-highest-loyalty-rates-800497365.aspx During the Great Recession, fewer people could afford to buy cars and many of those who could, were still influenced by financial restrictions. This may have resulted in individuals putting less importance on brand. However, as the economy improves and the number of new car buyers has increased 13 percent, according to R.L. Polk, some carmakers have been able to maintain their customers' loyalty.

Cars with highest loyalty

According to the results of a recent survey by R.L. Polk, 63 percent of Ford owners buying new cars, including the Lincoln models, purchased another Ford vehicle. Ford had the highest percentage of return buyers, followed by GM with 59.9 percent and Toyota with 58.8 percent.

The results also account for individual brands and Ford remains in first place with 60.3 percent. It is then more distantly followed by Mercedes-Benz, Honda, Toyota, and Chevrolet.

For specific car models, the vehicles with the most loyal shoppers were the Mercedes-Benz E-Class with 44.2 percent return buyers and the Ford F-Series with 42.4 percent brand loyalty.

For certain brands these numbers are particularly impressive. As Cars.com notes, Toyota was able to maintain a close third place for automaker loyalty and fourth place for individual car brand loyalty, despite the recalls the company faced in 2009 and 2010.

R.L. Polk also discovered a number of luxury carmakers experienced large leaps in customer loyalty between 2009 and 2010. This was most evident with Land Rover, which Polk says experienced an 8.2 percentage point increase in brand loyalty.

Results important in a time when loyalty thought to be fading

The impressive numbers of return buyers are important in an industry where car buyer loyalty was thought to be a fading concept a few years ago. According to a 2009 study by CNW Marketing, only 20 percent of buyers had returned to the same carmaker. The number was a far cry from the nearly 80 percent of repeat car buyers the company had found in the 1980s.

The company says these results play an essential role in the automotive industry, as "the real value is derived from the various consumer marketing and field training strategies created from the measurements."  http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-ford-gm-toyota-have-highest-loyalty-rates-800497365.aspx Fri, 29 Apr 2011 16:18:23 http://www.allstate.com/insurance-industry-news/auto-insurance-news/carpooling-can-save-americans-time-fuel-costs-800495226.aspx As gas prices continue to rise and roads become more congested, more Americans are leaving their individual vehicles at home and choosing to carpool to work.

The toll traffic is taking on Americans

According to the Texas Transportation Institute, Americans spent an average of 34 hours stuck in traffic in 2009, burning through about $808 of fuel. Nationally, traffic congestion cost Americans a whopping $87 billion that year, a figure that could be significantly reduced if more people partner up with friends or coworkers during their daily commute.

An overabundance of cars on the roadways is wasting more than money—it's also eating up chunks of time. Forbes Magazine reported a traffic scorecard from the National Highway Traffic Safety Administration found the average travel time tax—the extra time added to a drive as a result of traffic—rose from 8 to 10 percent between August and October of 2009, corresponding with the beginning of the nation's economic recovery from the Great Recession. As the job market continues to improve, more Americans will likely be on the road, resulting in even heavier traffic congestion.

Carpooling can help reduce both the money and time that is currently being wasted in traffic gridlock. To help drivers start one up, the website Edmunds.com has offered some general rules for creating a successful commuter carpool.

Carpool tips

To make sure the morning commute runs smoothly, the website suggests carpoolers print out driver schedules, pick-up times and locations and contact information and distribute it to all members. Similarly, if everyone is splitting the gas costs, carpool members should establish a solid schedule for payments.

Moreover, the source suggests carpoolers set up policies on stereo and air conditioning and/or heating use to keep every member of the group satisfied. Plus, drivers need to be clear about any habits that are unacceptable in their vehicles, such as smoking or cell phone use.

In a carpool, every member of the group relies on one another to get to work safely and conveniently. Because of that, the website said members should give advance notice of any vacation or personal plans which may affect the driving schedule, so other members aren't left standing on the curb waiting for a ride that's never going to come. Anyone participating in a carpool should also have a backup transportation plan in case the carpool driver needs to leave work early or stay late.

"Slugging" is popular in some regions

For the sake of energy efficiency, some commuters have even resorted to slugging, a system where drivers pick up passengers or even total strangers during their commute, according to Slug-Lines.com. The website said this form of transportation is becoming more commonplace in Washington, D.C., and has its own rules and etiquette.

The website said drivers who need additional passengers to, say, meet the requirements to travel in the High Occupancy Vehicle lane can pull up to a known "slug line" to find passengers. Drivers usually display a sign or simply call out where they are heading and then accept the first person in line for that particular destination. However, commuters who are interested in trying out slugging should remember to review safety protocols to ensure their ride goes smoothly.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/carpooling-can-save-americans-time-fuel-costs-800495226.aspx Thu, 28 Apr 2011 08:38:43 http://www.allstate.com/insurance-industry-news/auto-insurance-news/hondas-are-the-most-stolen-and-recovered-vehicle-in-the-nation-800493499.aspx The car world was informed of what automobiles thieves favored in 2010, and for the second year in a row, Hondas were the most prized of them all.

Honda Civic and Accord were the most stolen

In its second annual vehicle theft recovery report, the LoJack Corporation announced the Honda Accord and Honda Civic were number one and two in vehicle thefts and recoveries last year. The Honda and Accord were also the top two in 2009 but in the reverse order.

Among the top 10 most stolen and recovered vehicles, eight of them were in the top 10 in 2009. The two new additions were the Dodge Ram Pickup and Nissan Maxima.

Clancy: 43 percent of vehicles were not recovered

Patrick Clancy, vice president of law enforcement for LoJack, said the company's stolen vehicle recovery system helped law enforcement recover more than 10,500 stolen vehicles last year. And while the rate of stolen vehicles has hit a 25-year low, Clancy said more can be done.

"Across the country, an astounding 43.2 percent of stolen vehicles were not recovered," Clancy said. "What this tells us is that today's sophisticated thieves are getting around different means of protection ... and getting away with theft."

California and Texas are leading areas for vehicle theft

The study also tracked which states have the highest rate of car thefts—once again, California was number one, followed by Texas, Florida, New York, and Massachusetts, each finishing in that order in 2009 as well.

Clancy said over the past two years, several Southern California cities have been among the most common areas affected by car theft. The National Insurance Crime Bureau confirms this, as a 2009 study found six of the 10 highest motor vehicle theft rates occurred in the Golden State in the cities of Modesto, Stockton, Fresno, Visalia, and San Francisco. However, the NICB indicates Laredo, Texas, has been the car theft capital both in 2009 and 2010.

While LoJack's study tracked both stolen and recovered vehicles, most motorists whose cars are stolen never have the issue resolved. According to the Insurance Information Institute, only 12.4 percent of thefts were cleared, usually through arrests.

Fortunately, many victims of theft can recover their losses through their auto insurance plan. However, car theft is usually covered under the comprehensive portion of a policy, which is optional.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/hondas-are-the-most-stolen-and-recovered-vehicle-in-the-nation-800493499.aspx Tue, 26 Apr 2011 15:51:53 http://www.allstate.com/insurance-industry-news/auto-insurance-news/can-diesel-mount-a-comeback-in-the-automotive-market-800493179.aspx Next to gasoline, diesel is one of the more plentiful sources of transportation fuel used in the U.S. today. Yet while billions of gallons of diesel are used every year for locomotives, construction equipment and power generators, diesel-powered cars are few and far between. In a recent article, Edmunds.com outlined the reasons why.

Diesel is expensive

Due in part to diesel being less refined than unleaded gasoline, diesel has historically cost less per gallon than gas, but that hasn't been the case recently. There are several reasons for this, according to the U.S. Energy Information Administration, but the primary one is that worldwide demand for diesel has been steadily increasing since 2004, the last time diesel prices were lower than regular unleaded.

But it's not just the fuel itself that's expensive. According to Edmunds.com, so, too, are the vehicles which use diesel. In the automotive website's search, the least expensive car using diesel was a Volkswagen Golf TDI, which costs upwards of $22,000. The remaining diesel-fueled vehicles Edmunds.com found were luxury models or trucks.

Diesel fuel has a reputation as being dirty

Another factor holding diesel fuel back is the perception that it's dirty and pollutes the atmosphere. While Edmunds.com said this perception is sometimes true, newer diesel-fueled models use clean diesel.

Volkswagen is trying to rehabilitate diesel's "dirty" image through its "Truth & Dare" campaign, which "dares" consumers to learn about the new kind of diesel. Last year, the New York Times did a feature on diesel perhaps mounting a comeback because of the significant advances in its development over the past several years.

Carmakers hope for a better future for diesel

Despite the advances, however, there's no immediate indication diesel will surpass gasoline as the most used transportation source of fuel. And because the cost per gallon of diesel is above $4.10 throughout the country, according to the EIA, its comeback may be further delayed. However, Edmunds.com reports auto manufacturers like Mazda and Mercedes will soon be unveiling diesel-electric hybrid models in the hopes the campaigns touting diesel's cleanliness and quality will eventually bear fruit. Making the announcement in January 2010, Mercedes said sales for its 2011 E-class Cabriolet will begin in the second half of this year.

Should the cost and reputation of diesel turn a corner, diesel-hybrids could be the new buzzword in the green energy movement. Diesel has a higher energy density, making it a more fuel-efficient source compared to hybrids that use unleaded gasoline.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/can-diesel-mount-a-comeback-in-the-automotive-market-800493179.aspx Tue, 26 Apr 2011 12:52:51 http://www.allstate.com/insurance-industry-news/auto-insurance-news/tracking-the-history-of-vanity-plates-800493172.aspx When automotive enthusiasts consider buying a new car, they're usually not just looking for reliability. Oftentimes, they want the one car that best represents their sense of style.

But for people who want to speak more directly to other motorists, they do it through their license plates, which have become quite prevalent on American roadways.

Vanity plates have generated $1 billion

Vanity plates—license plates which display a word or phrase in a unique way—are big business. Edmunds.com reports they can cost the average motorist between $10 and $65 a year, depending on the state. This may not sound like a whole lot, but in California, vanity plates have generated $1 billion since the first one graced a Golden State vehicle in 1970.

Dennis Cowhey, the self-described "greatest expert on vanity plate meanings," lives and breathes specialized license plates and devoted an entire book to the topic called, "What Does That Mean? The Personal Stories Behind Vanity License Plates."

"You wouldn't believe how clever the plates are," Cowhey said in an interview with Edmunds.com. "Some are touching, heart-rending, hysterically funny and everything in between. People wear their hearts on their sleeves."

Similar to text messages, vanity license plates have their own language. Some are easily decipherable, while others often have to be explained. People struggling to make sense of a plate they may have seen on the roads can consult a wide array of websites that translate oft-used terms. For instance, according to the Dictionary of Custom License Plate Terms, "YY" translates as "too wise," "TT" is short for "to tease," and "CMXI" is code for "911," or "emergency."

States determine what messages pass muster

But not just any term can be put on a license plate. Depending on the state, Edmunds.com reports profanity, obscenities, religious connotations and politically-charged statements are usually banned from being used, often due to complaints of offensiveness.

State mottos can be deemed offensive as well. For instance, according to the Automobile License Pate Collectors Association, several years ago a New Hampshire couple thought the state should remove its motto¬—"Live Free or Die”—from all license plates, taking their complaint to court. The Supreme Court ruled New Hampshire could keep the motto, but motorists can cover the phrase if they so choose. http://www.allstate.com/insurance-industry-news/auto-insurance-news/tracking-the-history-of-vanity-plates-800493172.aspx Tue, 26 Apr 2011 12:48:33 http://www.allstate.com/insurance-industry-news/auto-insurance-news/audis-new-foursquare-account-may-enhance-brand-popularity-800491488.aspx Social networking is a rapidly expanding part of life, and new takes on the idea seem to be appearing rapidly. One recent trend is location-based social networks that allow people to let their friends know where they are, usually through GPS-enabled smartphones, by "checking-in" at different destinations. However, few of these programs were concerned with how people got to that destination—until now.

Audi shares best roads in America through Foursquare

Audi has started a Foursquare account to introduce driving into the location-based networking concept. Foursquare is a program which allows individuals to check-in at different locations, but also provides a tips section where people can make remarks about certain destinations, such as commenting on the food served at a restaurant or critiquing different venues.

This is the feature Audi has latched on to, according to Cars.com. Audi is now commenting in the tips sections of certain destinations, but instead of discussing the actual place, they are describing the route to that place, providing users details about the scenery, road quality and other aspects of the driving experience. For example, a post cars.com shared for Highway 1 between Carmel and Big Sur in California reads:

"Go south from Monterey all the way down to Hearst Castle. Two lane. Cliffside. Sea and surf. White knuckles. Scenery so good for once it might be better to be the passenger."
According to cars.com, the automaker is also including places to park. Though the source says Audi has only made 13 of these comments so far, they are growing quickly and could add a new dynamic to the location-based social networking world.

Taking social media on the road

According to the Wall Street Journal, the trend of using social networking sites to get drivers to buy new cars is catching on quickly.

A recent trend is using web celebrities to advertise vehicles on Twitter, YouTube and other social networking sites, as some argue they can reach customers better.

"People trust people like themselves, and when we can tap into these people, it will sound less like Ford tooting its own horn," Scott Monty, Ford's global digital-communications manager, told WSJ.

The Wall Street Journal says Ford has already seen some success from its aggressive web campaign. After hiring 100 young "web-savvy" drivers to test-drive the Ford Fiesta and post about their experience online, the company was able to generate a lot of buzz as evidenced through over seven million YouTube views, four million mentions of the "Fiesta Movement," and 130,000 website hits. Of those visiting the link, the source says 83 percent had not previously owned a Ford, bringing fresh clients to the company.

Though social media has successfully been used to market vehicles, some auto industry innovators have considered taking the relationship between cars and social networking even further. The infotainment group Hartman recently created a vehicle tool that would allow drivers to receive up-to-the-moment twitter and Facebook updates on a hands-free device. http://www.allstate.com/insurance-industry-news/auto-insurance-news/audis-new-foursquare-account-may-enhance-brand-popularity-800491488.aspx Fri, 22 Apr 2011 16:18:29 http://www.allstate.com/insurance-industry-news/auto-insurance-news/cars-2-coming-to-theaters-in-june-800489254.aspx Fans of automobiles and animated films are in for a treat this summer, especially if they enjoyed the feature film "Cars." Four years after the original, Lightning McQueen and his friends are returning to the silver screen as "Cars 2" motors into theaters in June.

Lasseter: 'I just adore cars'

John Lasseter, the film's director, tells Cars.com the reason for the sequel is quite simple: He just can't get enough of automobiles.

Lasseter told the website cars are a part of him. His father used to be a parts manager for Chevrolet dealerships when he was growing up in Southern California, and Lasseter followed in his dad's footsteps, working at various Chevy dealers in the summers and on weekends throughout his childhood and teenage years.

His passion for automobiles—particularly classics—has extended into adulthood, evidenced by the three cars sitting in his garage: a 1962 Ford Falcon, a 1964 Messerschmitt and a 1952 Jaguar XK120 black roadster.

Cars designed to look as authentic as possible

While Lasseter admits several of the automobiles featured in "Cars 2" are creations of Pixar, the cars people will recognize were designed to resemble their real-life counterparts as closely as possible.

"We are very adamant about getting it authentic," Lasseter told Cars.com. From the car accessories to the purr of their engines, Lasseter and Pixar's animators wanted to make the vehicles look and sound as believable as possible.

However, because the cars are characters, Jay Schuster, director of character art for the movie, told the website certain liberties had to be taken to "make them more expressive." Thus, wheel dimensions and other measures may not exactly match what would be found on the real-life representation of the cars.

Lasseter tells the website while it took three years to create "Cars 2," the production time was actually less than what it usually takes to make a Pixar film, which is four years.

The sequel to "Cars" will have to do very well in the box office if Pixar wants it to outperform the original. According to Box Office Mojo, "Cars" earned $60.1 million in the 4,000 theaters that showed the film its opening weekend. It went on to earn $244 million in 2006, making it the highest grossing animated film of the year. Among all 2006 films, it was the third-highest grossing.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/cars-2-coming-to-theaters-in-june-800489254.aspx Wed, 20 Apr 2011 15:38:07 http://www.allstate.com/insurance-industry-news/auto-insurance-news/simple-tips-for-used-car-sellers-800488689.aspx Many people who want to sell their old car aren't sure of which steps to take to increase the vehicle's appeal and get a fair price. Selling a used car doesn't have to be a hassle, according to Edmunds.com, which offers a list of simple steps a seller can take to get an automobile off of their hands.

Know your market

Before setting a price, sellers should scour the web to see how other people are pricing the same vehicle. They should also know that the kind of model they have can make all the difference. For instance, the website said family sedans are always in constant demand by anyone looking for a simple, inexpensive means of transportation. Convertible and sports cars usually sell well during the warmer seasons, but may sit on the curb during the fall and winter, while trucks and vans are usually steady sellers and can usually be competitively priced.
Sellers who are unsure of what their vehicle should sell for should check out pricing sources such as Kelley Blue Book or the Edmunds.com true market survey, to see how mileage, region, options and condition may affect their automobiles worth. The source also recommends the seller set a price that is slightly higher than what they would actually accept, so that they won't be left with a significant loss if a potential buyer tries to negotiate lower.

Give your car curb appeal

People usually decide whether or not they want to purchase a car within seconds of seeing it, so anyone hoping to sell a used car should make sure it’s in tip-top shape. Before listing a car for sale, Edmunds says the seller should make sure it’s attractive inside and out—meaning they should wash and vacuum the interior, clean the exterior, and wipe down the dashboard and windows. Although some sellers may be tempted to skip out on any simple repairs, the website said they may be able to price the car higher if they just put a little extra effort into its maintenance.

Showing a vehicle

Sellers should know that the way they interact with a potential buyer may influence whether or not they'll actually commit to the purchase. According to Edmunds, a buyer may be evaluating a seller almost as much as the vehicle, since they may be uneasy buying a car from someone who they believe may not be trustworthy. To help calm their fears, sellers should be open about the vehicle's history and allow them to test-drive the model before making a final decision. Having the vehicle inspected by a mechanic beforehand—and keeping a hard copy of the report—can also calm any fears about car safety a buyer may have.

According to recent reports, now is a great time to sell a used vehicle. Cars.com reports that the average retail price of a used car has risen 10 percent in the last year, meaning sellers might receive much more for a well maintained pre-owned car than they would have even a few years ago.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/simple-tips-for-used-car-sellers-800488689.aspx Wed, 20 Apr 2011 08:25:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/land-rover-experiences-sales-renaissance-800487755.aspx Under its new owner Tata Motors, Jaguar Land Rover, the previously struggling car model is now experiencing a boost of popularity that is usually unseen in failing automobile brands, according to the Wall Street Journal.

Sales rise under new ownership

Ford sold the luxury SUV brand three years ago, one of nine combined models sold off by both Ford and General Motors amidst the auto industry's decline during the peak of the economic recession. Some brands like Hummer and Pontiac were completely discarded, while Jaguar Land Rover, Saab and Volvo were rebuilt under new ownership.
Although the paper said Tata Motors initially lost more than $500 million in the year after acquiring Land Rover, the model has recently become a strong seller in both the American and European markets. The source said Land Rover's U.S. sales have climbed 26 percent in the last year, while its European sales have increased 18 percent. The vehicle is selling so well that Tata Motors is set to hire 1,000 additional engineers to expand production, while it also plans to open a new factory in India.

The brand's sharp improvement isn't only due to new ownership. The newspaper said Ford spent billions of dollars restructuring its brands, and hoped to transform the Land Rover into a "premium cash cow," after acquiring it in 2000.

"Ford laid out a good foundation for us," John Edwards, global brand director for Land Rover, told the paper. "But I think we're more nimble now."

Edwards said company executives predict they will sell about 300,000 cars within the next few years, after selling 233,000 in 2010. While that is only a fraction of what rival companies put out—such as BMW AG, which sold 1.46 million cars last year—the source said Land Rover still posted earnings of $443 million in the quarter ending December 31, 2010.

Size may hold Land Rover back

However, the rising cost of gas as well as new energy policies in the U.S. and European Union may hamper Land Rover's growth. Motortrend.com reports the vehicle receives a measly 12 miles per gallon in the city and 17 on the highway, which may be too few for budget conscious drivers who are looking to save fuel . In addition, both the U.S. and the EU have pledged to lower the automotive industry's fuel emissions by investing in renewable and green energy technologies.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/land-rover-experiences-sales-renaissance-800487755.aspx Tue, 19 Apr 2011 08:53:01 http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-finds-83-percent-of-men-occasionally-disobey-gps-directions-800487019.aspx A new study has come out that may confirm a long-standing stereotype that male drivers prefer to go it alone when it comes to finding their way on the road.

Based on a survey conducted by a UK-based insurance company, 83 percent of male drivers regularly ignore or disobey directions given to them by their GPS, otherwise known as a satellite navigation system.

GPS should not replace a person's navigational abilities

While GPS systems are often seen as being a definitive resource for finding various locations, Steve Chelton, an insurance development manager at the company that conducted the poll, said men are sometimes right to 'go with their gut' when it comes to trusting their directional prowess.

"A [satellite navigation system] should aid your own navigational abilities rather than replace them," said Chelton.

Men weren't alone in disobeying the advice of their GPS system, as a number of women do the same thing, but the survey found that women do this less often. Just fewer than 75 percent of female motorists said they went against their GPS unit's advice.

The survey also found that many of the 3,000 motorists polled still place their trust in maps, as just under 66 percent said they kept a route map in the car in the off chance they needed one.

Sales for GPS units slipped in 2010

Ten years ago, GPS systems were hardly commonplace, but an increasing number of motorists use them regularly as a convenient source for roadside assistance. But as USA Today reported a few months ago, GPS systems may not be selling at the rate they used to.

According to numbers collected by USA Today from the NPD Group, which tracks portable navigation device trends, sales for the units dropped almost 10 percent through the first 11 months of 2010.

"In 2007 and 2008, PNDs were the hot items," said Tom Murray, senior vice president of market development for TomTom, in an interview with the USA Today.

Murray told the paper that technology sales in 2010 were largely centered on tablets and cell phones, in particular, as many of them are equipped with GPS capabilities.

Murray hasn't thrown in the towel just yet on GPS units' ability to mount a comeback in sales, telling the paper that many people prefer them because of the features they offer that cell phones don't, like a bigger screen, clearer audio and better reception.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-finds-83-percent-of-men-occasionally-disobey-gps-directions-800487019.aspx Mon, 18 Apr 2011 13:05:53 http://www.allstate.com/insurance-industry-news/auto-insurance-news/tips-for-dealing-with-car-salesman-800486377.aspx Buying a new car can be tricky, but dealing with a salesman can be even trickier. To help a potential buyer beat an aggressive car dealer at his own game, Investopedia has offered a list of simple strategies that can help shoppers purchase their ideal vehicle without getting ripped off.

Walk in prepared

First off, the source said a potential buyer should do their research so they're knowledgeable about the car they want to buy. There are various websites and magazines that cater to automotive reviews, research and car safety information while the Kelley Blue Book is a great resource for shoppers who are interested in purchasing a used vehicle. In addition, Investopedia said shoppers should bring their research with them when they go to a car dealer so they are on top of the information during the negotiation process, something that will increase their credibility and also let the salesman know they are not a pushover.

Have a budget

Vehicle shoppers should walk into a dealership with a budget in mind. However, the website said consumers shouldn't necessarily let salesman know what price bracket they are shopping in, as it can give them less leeway during negotiation. If a salesman knows how much a client is willing to spend, there isn't any room to negotiate lower than that base number. When questioned about budget, the source said a shopper should be vague, and only let on that the money they spend will depend on the car and the value of the overall deal.

Dress the part

Similarly, the website said buyers should dress down before heading to a dealership, recommending a casual but professional outfit for the event. While a shopper should certainly look well-off enough to merit the attention of a salesman, the source said a well-to-do consumer shouldn't flaunt his or her wealth. For instance, shoppers interested in trading-in an old car should drive it to the dealership and leave any nicer vehicles at home, while women may want to go light on expensive jewelry and watches.

Bring backup

Bringing a friend or family member to a dealership can be good move because they can deflect some of the sales pitch. Investopedia said it gives shoppers the opportunity to use a "good cop, bad cop" approach that can allow them to remain calm and cool while their friend points out any flaws. Plus, settling on a new car can be tough - sometimes a second opinion is key.

Many people will soon need to brush up on their negotiation skills, as the Federal Reserve reported that in February, consumers borrowed more money to buy new cars but cut back on other purchases. While car loan applications increased by 7.7 percent that month, credit card borrowing fell 4.1 percent, indicating that investing in a new car is a priority for many Americans.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/tips-for-dealing-with-car-salesman-800486377.aspx Fri, 15 Apr 2011 16:17:33 http://www.allstate.com/insurance-industry-news/auto-insurance-news/travelers-of-chicago-highway-prepare-for-gridlock-800486069.aspx On many major American highways, bumper-to-bumper traffic is a daily routine for commuters in the mid-morning and early afternoon hours. But with road maintenance on tap for one of the Midwest's most trafficked highways, gridlock could well become a 24-hour experience.

According to the Chicago Tribune, the Jane Addams Memorial Tollway near the Windy City is rife with cracks and potholes and $65 million will be put toward its rehabilitation.

Commuters prepare for delays

The Jane Addams, formerly known as the Northwest Tollway but renamed in 2007 after the first woman to be awarded the Nobel Peace Prize, stretches 79 miles and ends just south of the Wisconsin border. But the paper reports that only a portion of the 50-year-old highway will be resurfaced. Officials say what the road really needs is a top-to-bottom fix. However, the state can only afford a temporary fix that should last between five and seven years before it needs work again.

Wendy Kissee, one of the Addams' more frequent commuters, says the road is in dire need of a face-lift.

"Oh, it needs it bad. Bad," Kissee told the Tribune. "It's very rutted from the semis. I know [the Illinois Toll Highway Authority] did a lot of pothole patching last year, but you can feel it: Bum-bum-bum-bum. I think they've just been piecing it together for the last two years."

Other commuters interviewed by the paper agreed with Kissee, but they are dreading the expected traffic delays, which they say were particularly time-consuming two years ago.

"It was a headache," said Robert Horna, who uses the Addams frequently when commuting. "It's a nice drive if they leave things alone."

But Kristi Lafleur, executive director for the state's Highway Authority, says that's not an option, telling the Tribune that the rebuilding of the Addams is at the top of the authority's priority list.

Traffic jams will try to be kept to a minimum

With resurfacing scheduled soon, the paper reports road crews will try and reduce traffic jams as much as possible by keeping the same number of lanes open, even though traffic flow will be moved toward the shoulders of the road. The state Highway Authority said lane closures will be sporadic, but none of them will occur during the morning and afternoon rush hours.

While road construction is a hassle for commuters, improved road maintenance is one of the factors that has led to improved driving safety. The dramatic drop in traffic-related deaths attests to this fact. Earlier this month, the National Highway Traffic Safety Administration announced that traffic-related fatalities in 2010 fell to their lowest levels in six decades. In addition to enhanced servicing of roadways, officials attribute the decline to stepped-up DUI enforcement, safer vehicles, and more people wearing their seatbelts.

David Strickland, an NHTSA administrator, said even more can be done to enhance safety.

"The decrease in traffic fatalities is a good sign, but we are always working to save lives," Strickland said. "NHTSA will continue pressing forward on all of our safety initiatives to make sure our roads are as safe as they can possibly be."
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/travelers-of-chicago-highway-prepare-for-gridlock-800486069.aspx Fri, 15 Apr 2011 14:09:48 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-contributes-to-green-movement-with-recycling-800486062.aspx Ford is really getting involved in the fuel-efficiency movement, and it has four million pounds of recycled carpet to prove it.

Ford Motor Company says that it helped save more than 400,000 gallons of oil by recycling 4.1 million pounds of carpet, which was used to make various car parts like cylinder head covers.

The car company said it did this by moving away from making engine parts out of virgin material.

Cylinder heads made out of nylon

Since last year, Ford says it's been making cylinder head covers with nylon that's taken out of scrap carpet material. Four vehicles use the nylon-based head covers: the Ford Escape, Fusion, Mustang and F-150, one of the country's best-selling vehicles of all time.

To make the covers, Ford says it enlists the help of Wellman Engineering Resins, which grinds the carpet until it turns into nylon resin and becomes malleable.

The carmaker says that because the nylon has been so versatile, it fully anticipates nylon to make its way into the production of a variety of other car parts.

"We do expect the use of recycled nylon resin to expand in upcoming years, especially since it has been so successful," said Roy Ford, supervisor of the company's component engineering and design department.

Ford says it uses other unexpected renewables, such as soy foam for seat cushions and recycled fabric for upholstery.

Gas-sipping models 'fuel' robust car sales for Ford in March

Ford Motors has had much to celebrate lately, as for the first time in over a year it bested General Motors in U.S. sales. For the month of March, Ford's retail sales jumped 52 percent to 2,008 units sold, making it the car company's most prosperous month since the summer of 2009.

And according to Ken Czubay, Ford's vice president of U.S. sales, the increased sales activity was driven by an increased demand for its fuel-efficient models.

"Consumers are placing a high priority on fuel efficiency in every size and kind of vehicle," Czubay said. "Customers are rewarding Ford four our investment in new products as well as more efficient engines and transmissions, which save them money at the pump whether they drive Fiestas or F-Series trucks."

Ford says that it's an industry leader when it comes to offering consumers more bang for their buck when looking to save fuel, saying four of its vehicles get an EPA-certified 40 miles per gallon. Ford says "no other full-line automaker" has as many cars with the same kind of fuel efficiency.

Czubay said the carmaker's new line of products, particularly its redesigned Focus and Explorer, will lead to more people turning to Ford in the months ahead as an increased number of motorists seek gas-sipping models with $5 per gallon gas prices looming.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-contributes-to-green-movement-with-recycling-800486062.aspx Fri, 15 Apr 2011 14:04:45 http://www.allstate.com/insurance-industry-news/auto-insurance-news/tips-for-shoppers-buying-a-car-on-the-web-800485743.aspx Plane tickets, clothes, food, appliances - these days, you can buy almost anything directly from the web without ever having to step foot inside of a retail establishment. As the internet continues to change the face of the global marketplace, even some auto companies have decided to sell new cars through the internet. To help consumers avoid being swindled online, Investopedia has offered tips for buyers interested in ordering a vehicle via the web.

While buyers have been able to find used cars online for years, General Motors recently announced it will beginning selling automobiles directly to buyers through eBay in conjunction with its 225 California-based dealerships. The test program is set to run from August 11 to September 8 and will expand nationwide if it is successful.

Get plenty of information

Buyers who are interested in purchasing a new car online should first verify the sellers’ credibility before making any payment transaction. Investopedia recommends scrolling checking the seller's history with the Better Business Bureau before committing to a purchase. Potential buyers should also contact the seller with maintenance questions and ask for photos of the vehicle's interior and exterior. Anyone buying a used car should request an auto history report through a vendor to make sure it's up to par.

See the vehicle in-person

If a seller is based nearby, the website said an interested buyer should test-drive the vehicle to see if it's comfortable and drives well. Verifying car safety is also key, which is why the automobile should also be inspected by an independent mechanic in person, although the source said buyers should still have a mechanic review pictures and vehicle information if they are unable to physically bring it in.

Secure payment

Transferring funds through the internet can leave a buyer open to fraud, which is why they should confirm that a deposit is refundable before making a purchase. After submitting a payment, buyers should print out any online records to verify the transaction. In addition, the source said buyers should make the purchase on a credit card if possible to get limited liability in the event of fraud.

While eBay Motors is a popular option for consumers interested a buying a car on the web, other companies also offer similar services. The Dallas-based startup Driversselect.com, which allows shoppers to virtually peruse and buy used cars, recently announced it was tripling the size of its store facility to keep up with customer demand. http://www.allstate.com/insurance-industry-news/auto-insurance-news/tips-for-shoppers-buying-a-car-on-the-web-800485743.aspx Fri, 15 Apr 2011 09:10:37 http://www.allstate.com/insurance-industry-news/auto-insurance-news/americans-are-buying-less-gas-due-to-climbing-prices-800485732.aspx Americans are refilling their gas tanks less as the price of fuel continues to rise, according to the Associated Press, which said consumers purchased 2.4 million fewer gallons of fuel during the week of April 1 compared to the same time last year.

Prices have spiked compared to last year

Consumers have purchased less gas for five weeks in a row compared to last year, even though before that point demand had risen for two months. While said some experts expected gas sales to keep up as unemployment rates drop, the news source said a survey by the Oil Price Information Service found that 70 percent of the country's major gas station chains say sales had fallen in March. More than half said sales had declined by 3 percent or more last month.

Fuel prices have climbed due to the global demand for crude oil and the political unrest in oil-producing countries in North Africa and the Middle East. The AP said the average price of gas in the U.S. has reached $3.77 per gallon, already 41 cents more expensive than it was at this point in 2008, the year gas prices spiked to an all-time national high of $4.11 in July. The cost of fuel has shot up so much in the past year alone that Americans are now paying about $340 million more each day than they did in 2010.

More Americans are buying smaller cars to offset costs

Although larger cars and trucks are typically best-selling vehicles in the U.S., earlier this year Kelley Blue Book reported that more consumers are searching for smaller, energy efficient models when considering a new purchase. In February, the company said 81 percent of car shoppers said the cost of gas influenced their vehicle considerations, while 40 percent said they were looking for smaller automobiles to offset the price of fuel.

Automakers have been releasing a wider variety of hybrid and fuel efficient vehicles to appeal to drivers who are looking to save fuel. Subcompact cars like the Ford Fiesta and the Chevrolet Cruze both receive about 40 miles per gallon of gas and are fairly affordable at $16,000 or less, making them a potential option for smaller families on a tight budget. Motorists who would like to transition to green energy vehicles may want to try out a hybrid like the Toyota Prius, which the U.S. Department of Energy said is currently the most fuel efficient car in the market, excluding some electric models.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/americans-are-buying-less-gas-due-to-climbing-prices-800485732.aspx Fri, 15 Apr 2011 08:58:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-and-microsoft-team-up-for-digital-media-service-800484720.aspx Microsoft and Toyota have partnered up to develop an energy management system for plug-in cars that may even extend to home energy use in the future.

Toyota Media Service

Toyota president Akio Toyoda and Microsoft CEO Steve Ballmer held a joint webcast last week to announce the creation of the Toyota Media Service, which will provide the data service to drivers. The companies are reportedly investing $12 million into the venture.

The system is initially being developed for the new plug-in Prius, which is set to be released in 2012. Using the Windows Azure cloud computing platform, the system will allow Toyota customers to control and monitor their vehicle from anywhere. For example, a driver could power up the air conditioning or heat to set it to a comfortable temperature before hitting the road, or even use a smart phone to remotely check its battery power or maintenance information.

Moreover, the program could promote power management among green energy vehicles.

"Customers can use these applications and services for power management as cars connect into the smart power grid," Balmer said, according to the Environmental News Service. "Imagine being able to tell a car to charge at the time of day when energy demand is low and therefore, the least expensive."

Eventually, the system will also be able to control power use in the user's home as well.

Toyoda said the information infrastructure will boost the value of cars by making them 'information terminals' that can also enhance driver and traffic safety.
Microsoft distributes Windows Azure through a "cloud" delivered through the internet instead of being loaded onto individual computers. Starting in 2012, Ballmer said anyone who buys one of Toyota's electric of plug-in vehicles will be able to connect to the cloud, reported the source.

Other automakers follow suit

New York Times columnist Maureen Dowd wrote that Ford, Chrysler and Chevrolet are all currently developing digital connectivity systems for their automobiles. For instance, Dowd said the Ford's Sync system allows their drivers to sync smartphones to their vehicles to read text messages and Twitter feeds. It can also control lighting, vibrate the driver's seat and heat their steering wheel.

While the rapid advances in automotive technology offer some tangible benefits to motorists, some say installing more gadgets and programs into a vehicle may simply add to the number of distractions a driver already faces while behind the wheel.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-and-microsoft-team-up-for-digital-media-service-800484720.aspx Thu, 14 Apr 2011 08:58:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/honda-sales-were-strong-for-march-800484007.aspx For Japanese auto manufacturers like Honda, it's been a steady flow of bad news over the past month as the carmaker continues to try and pick up the pieces in the earthquake's aftermath. But Honda got a momentary reprieve this month when the company announced how many Honda shoppers bought new cars in March.

Moving 133,650 units, American Honda announced a near 19 percent increase in car sales compared to March 2010. The company said March's numbers give the carmaker its sixth consecutive month of double-digit sales increases.

Honda executive expects a 'challenging' April

John Mendel, executive vice president of sales for American Honda, was pleased by the sales data, but he's expecting a less prosperous April with all that's happened in Honda's home country since March 11.

"We know there will be challenges in the coming months as we continue to deal with supply chain issues resulting from the devastating earthquake in Japan," Mendel said. "We continue to appreciate everyone's patience and understanding."

Mendel's pessimism is not without cause. Over the past several weeks, multiple reports from Honda and elsewhere have indicated the company's American manufacturers will have to cut back on production because of parts shortages. Furthermore, Honda said that American plants can expect a drop in production through April 15.

Honda delays announcement of Fit Shuttle

Another concern for April sales is the postponement of one of its newest models to be sold in the U.S.

As sales data from last month indicates, the 19 percent rise in Honda car purchases was largely a result of more people buying the fuel-efficient Honda Fit. Posting a 43 percent sales increase, Honda sold over 6,500 Fits in March, a record for the company.

Hoping to a capitalize on the Fit's popularity, Honda was scheduled to announce the domestic launch of the world's first hybrid wagon, the Fit Shuttle, for March 17, but the company delayed the announcement due to the earthquake. Honda has not indicated when the new launch date will be.

Complicating matters further, Honda has said while it will increase production after April 11, it "anticipates additional production disruptions after that date."

The bottom line is April may not be as prosperous a month as March was for Honda.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/honda-sales-were-strong-for-march-800484007.aspx Wed, 13 Apr 2011 13:18:37 http://www.allstate.com/insurance-industry-news/auto-insurance-news/fiat-500-designer-says-he-was-inspired-by-history-ipod-800482788.aspx As the Fiat 500 makes its first American debut in 27 years, the automobile's designer said that a mixture of classic and modern designs inspired his new creation, according to the New York Times.

History of the 500 model

The original Fiat 500 model was manufactured in Italy during the 1930's as an attractive but affordable car for working class families. Then known as the Il Topolino - the Italian nickname for Mickey Mouse - the model's designer, Dante Giacosa, created more versions of the car over the years. However, the Times said his crowning achievement was the 500 model of 1957, known as the Nuovo 500. The vehicle's "double bubble" curved aesthetic became synonymous with images of Italian life, with the model even included in the 2006 Pixar film "Cars" to depict an Italian racecar fanatic.

Roberto Giolito, the designer of the new Fiat 500, told the paper he included touches of Giasco's double-bubble look in the new 500, as part of his goal to create a vehicle with a look of "timelessness and purity." As for modern influences, Giolito said he was also inspired by the streamlined appearance of the Apple iPod.

The American reception

U.S. News and World Report gave the 2012 Fiat 500 - which was recently introduced in the states - an overall score of 8.3 and ranked it 13 out of 33 for Affordable Small Cars, although the source still questioned how well the European car would be received by Americans. While the review said the Fiat 500 has a "cute, petite exterior that makes it hard to dislike," and receives up to 38 miles per gallon of gas on the highway, it still isn't as energy efficient as other subcompact vehicles such as the Honda Fit or Ford Fiesta. In addition, while the Fiat 500 has generally been met with positive reviews, some industry experts question whether Americans - who tends to lean toward larger and more powerful cars - will warm up to the model.

The Fiat 500 may face some stark competition from similar vehicles like the Mini Cooper, which is one of the only European subcompact vehicles on the market that has been successful in the U.S., according to the source. However, the Mini Cooper, which starts at $20,100, is considerably more expensive than the basic Fiat 500, which costs about $15,500.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/fiat-500-designer-says-he-was-inspired-by-history-ipod-800482788.aspx Tue, 12 Apr 2011 09:03:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-sales-in-march-improve-for-most-car-manufacturers-800482111.aspx It was a good month for the automotive industry in March as people continued buying new cars despite the increased cost of gasoline.

General Motors, Ford, Honda and Nissan all reported increasing sales, with Nissan being among the industry's leaders as its sales activity rose 27 percent compared to last March's figures.

Banner month for Nissan

Nissan sales were so good last month that the company says it achieved 9.7 percent of the U.S. market share for new car purchases. Further, the company said that its Altima is now the best-selling sedan in America, moving 32,289 units among the 121,141 units sold overall.

Not to be outdone in sedan sales was Chrysler, as the company says its 31 percent bump in activity was in large part due to the high number of Chrysler 200 cars that were sold.

General Motors saw an 11 percent increase in sales activity, with the Silverado continuing to be the company's most popular vehicles sold as sales increased 9 percent.

Kia and Hyundai saw more of its vehicles leave showroom floors as well, reporting a 44 percent and 32 percent sales jump, respectively. Please clarify. How can Nissan be the industry leader with a 27% increase in sales but Kia and Hyundai saw higher percentage increases? What am I missing here?

Toyota struggles in March

The one major car maker that did not report positive numbers last month was Toyota as auto sales fell 9.2 compared to the same period in 2010.

Overall, Toyota sold 176,222 units last month. The carmaker's light truck sales saw the most precipitous decline as the company saw a 20.4 percent decrease year-over-year.

Sales were likely affected by the earthquake in Japan and its aftermath, as manufacturing came to a halt throughout the country.

Bob Carter, Toyota Division group vice president and general manager for Toyota Motor Sales, put a positive spin on the sales report.

"Our sales momentum continued in March and contributed to a strong first-quarter close," Carter said. "With improving purchase intentions and healthy inventory levels heading into April, we feel confident about our sales outlook for the month ahead."

Optimism is something the company is trying to focus on. Earlier this month, Toyota said it hoped to reach an annual sales rate of 10 million vehicles by 2015 as the company outlined a "new global vision" in an effort to recover after the recall crisis in 2009.
   http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-sales-in-march-improve-for-most-car-manufacturers-800482111.aspx Mon, 11 Apr 2011 14:17:36 http://www.allstate.com/insurance-industry-news/auto-insurance-news/high-oil-prices-may-encourage-natural-gas-cars-800480791.aspx Now may be a great time to own a vehicle that burns natural gas. The renewable energy source is currently priced at $1.93 a gallon, according to USA Today, almost $2 less than a gallon regular gasoline.

Natural gas-powered models

Despite the low cost of fuel, only a small number of commercially available vehicles can actually run on natural gas. Honda recently announced it was going to start selling its natural gas-powered 2011 Civic in every state this year, after previously only offering the model to government fleets and individual buyers in New York, California, Utah and Oklahoma. To date, the vehicles aren't huge sellers - the Associated Press reports that Honda only sells about 1,500 natural-gas Civics a year.

Ford also manufacturers a natural-gas burning car, although it has mainly been sold to taxicab companies at this point. With a low load floor and tall roof the Transit Connect car-truck is made for passengers, while GreenCar.com reports the vehicle is about 30 percent more fuel-efficient than traditional taxis. Rod Phillips, Ford's commercial business manager for the New England area, said more businesses have expressed interest in Transit Connect as gas prices continue to climb.

"Fleet managers are adding all the reasons up and concluding that it makes sense to switch to CNG [compressed natural gas] now more than ever," he said.

Current legislation

During a recent speech about American energy concerns, President Barack Obama endorsed the benefits of natural gas-powered vehicles. The NAT GAS Act - legislation that provides incentives to fuel cars with natural gas instead of oil - will shortly be introduced to Congress, which lawmakers hope will increase the use of natural gas in the transportation sector.

According to Natural Gas Vehicles for America, a Washington trade association, there are currently about 110,000 natural gas-powered vehicles on American roadways. But, there are only 1,000 fueling stations in the nation, with only half of those open to the public.

While natural gas can reduce the nation's reliance of foreign oil, save fuel and provide an affordable way for the average person to power their cars, some groups are concerned drilling for the substance can have dire environmental impacts. In some cases fracking - the process of drilling for natural gas - has been found to contaminate groundwater sources with potentially toxic chemicals.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/high-oil-prices-may-encourage-natural-gas-cars-800480791.aspx Fri, 08 Apr 2011 09:47:34 http://www.allstate.com/insurance-industry-news/auto-insurance-news/americans-bought-less-fuel-efficient-cars-in-2010-800477657.aspx Despite the skyrocketing prices of gas and plethora of new vehicles on the market, sales of energy efficient vehicles actually shrank in 2010, according to the Detroit Free Press.

Meeting fuel economy goals

Automakers are spending more than $50 billion to satisfy the federal fuel economy law, which requires car companies to manufacture vehicles that achieve a 35.5 miles-per-gallon average by 2016. While a variety of green energy cars that satisfy those standards have been flooding the market, the newspaper said many American consumers aren't biting. In fact, the 2010 average of all new vehicles experienced a slight drop, from 22.3 miles per gallon to 22.2, according to an analysis from Ward's Automotive Reports.

Hybrid sales fell from 2.9 percent in 2009 to 2.4 percent last year, while the sales of light trucks—which include pickups, crossovers, minivans and SUVs—increased to 51 percent from 48 percent over the same period.

Although the paper said there are now 160 car models on the market that get 30 miles or more per gallon, Americans have held on to their love for larger automobiles, even as gas approaches $4 a gallon. Rebecca Lindland, a representative of IHS Automotive, told the source that following an energy crisis, Americans will purchase smaller vehicles for three or four months before switching back to trucks and SUVs.

"The change in consumer buying behavior toward better fuel economy is not aggressive enough to meet the 35.5 m.p.g. standard," she said.

Promotion is key

Experts say auto companies have to increase their promotional efforts for energy efficient models to drive sales. Mark Copper, the director of research at the Consumer Federation of America, told the paper that manufacturers are also going to have to find ways to improve the mileage of popular vehicles.

Ford has already gone in that direction, creating a campaign that touts four of their models - the Fiesta, Focus, and hybrid versions of the Fusion and Lincoln MKZ - that get 40 miles per gallon.

"Our plan is to have the best fuel economy across the entire range of products," Ford spokeswoman Christin Baker told the source.
Budget-friendly options

While many motorists want to save fuel, some may believe that purchasing a pricey new hybrid is the only way to do so. However, experts say that energy efficient compact cars are a good alternative to hybrid or electrical models. For instance, fueleconomy.gov reports the Ford Fiesta is the second behind the Toyota Prius as the most energy efficient vehicle available in 2011, receiving 40 miles per gallon of gas.

Buyers on a modest budget who still dream of owning a hybrid may want to purchase a used model, according to Kelley Blue Book. It can take years to recoup the extra cost of a hybrid in gas savings, reported the site, so buying used could be an immediate option for consumers who want to save money.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/americans-bought-less-fuel-efficient-cars-in-2010-800477657.aspx Mon, 04 Apr 2011 17:00:24 http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-reveals-many-consumers-dont-understand-electric-vehicles-800476920.aspx Car makers like Nissan and Chevy are trying to appeal to consumers buying a new car by including electric models among their variety of vehicle options. But as sales data released last month from the two companies shows, there doesn't appear to be much of a market for them so far. What explains the lack of interest? A new survey is indicating it might have something to do with motorists not knowing much about how they work.

According to a survey conducted by Synovate, a market research firm affiliated with the Aegis Group, a significant percentage of Americans have a lack of understanding about what electric vehicles are, what they can do and how they operate.

Many consumers misinformed about features

For instance, only 66 percent of respondents knew that Hybrid Electric Vehicles, HEVs, used both gasoline and batteries, and only one-third of respondents knew that they had the ability to run solely on their electric motors.

"This low level of understanding about the way in which electric powertrain vehicles work will have profound consequences for vehicle sales," said Stephen Popiel, senior vice president of Synovate Motoresearch. "In the short term, dealers will have to spend an inordinate amount of time explaining the workings of [Plug-in Hybrid Electric Vehicles] and [Battery Electric Vehicles] to interested buyers."

The survey was conducted last fall from October 22 to November 2. Approximately 1,898 respondents were selected at random from a database of over one million people who had previously agreed to participate in Synovate's online surveys.

The survey provided the respondents with a variety of statements about the different kinds of electric vehicles - Battery Electric, Plug-in Hybrid, Hybrid Electric and Fuel Cell Powered - and those participating had to confirm or deny whether the vehicles contained certain characteristics.

While knowledge was lacking among all the electric vehicles, respondents were especially unaware about the function of plug-in hybrids. For instance, the survey found that a majority of respondents did not think PHEVs used gasoline and, similar to the HEVs, less than 50 percent knew PHEVs could run in electric mode.

Effect of knowledge gap on dealerships

"We have to wonder if consumers will become disillusioned when they understand the actual requirements of electric vehicles," Popeil said. "Will the person who goes to their Chevy dealer to buy a Volt, or their Nissan dealer to buy a Leaf, still buy the vehicle once they discover the need for plugs and 220-volt outlets? And, if they become discouraged with the electric option, will they stay and buy a different Chevy or Nissan vehicle?"

Both car makers will be fine if February car sales for Nissan and Chevy are any indication of future sales. Both Chevy and Nissan reported retail sales improved last month in the U.S, but not for their electric vehicles. Chevy moved just 281 Volts last month; Nissan fared even worse, selling only 67 Leafs.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-reveals-many-consumers-dont-understand-electric-vehicles-800476920.aspx Sat, 02 Apr 2011 15:36:07 http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-rental-cars-fare-poorly-in-crash-tests-800476919.aspx Many consumers in the car buying market put safety among their highest priorities when considering what vehicle to purchase. As such, several car manufacturers have responded by highlighting what safety features the vehicle is equipped with and what awards it's won from organizations like the Insurance Institute for Highway Safety.

But a recent study from USA Today finds that some rental car vehicles do not have a strong auto safety record.

Several poorly rated models

According to an in-depth analysis by the paper of the nation's eight biggest rental car brands - Alamo, Avis, Budget, Dollar, Enterprise, Hertz, National and Thrifty - many of their vehicle offerings are lacking in safety ratings if they're involved in side, rear or rollover accidents.

USA Today found six 2011 vehicles and one 2010 vehicle that had side-impact ratings of "poor": the Hyundai Accent, Kia Rio, the Volkswagen Beetle, the Jeep Wrangler, GMC Canyon, the Chevrolet Colorado with crew cab and the 2010 Chrysler PT Cruiser. For "poor" rear-impact safety ratings, the Cadillac STS and Lexus hybrid were the worst for 2011 models. The worst 2010 vehicles were the Chrysler PT Cruiser, the Infiniti M35 and the Hummer H3.

The paper came to their conclusions by compiling information on 213 types of vehicles from the rental car companies and matching it with the IIHS car ratings for each vehicle. Some 2011 models weren't available, so in those instances 2010 models were used instead.

Most vehicles had positive safety ratings

On the positive side, USA Today found that the overwhelming majority of rental car companies' selections of vehicles performed well in head-on collisions. Analysis by the paper indicates 95 percent of the offerings were rated as "good" in head-on crashes.

"Consumers should act like they are buying the car and pick the safest car available in the rental class they want," said Clarence Ditlow, executive director of the Center for Auto Safety, in an interview with the paper.

Earlier this month, the IIHS revealed its Top Safety Pick winner for performing well in crash test ratings. IIHS picked the Mini Cooper Countryman as its winner after receiving "good" ratings in front, side, rollover and rear-impact tests. Due to its size, however, the small four-door may be size prohibitive for large families who are traveling.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-rental-cars-fare-poorly-in-crash-tests-800476919.aspx Sat, 02 Apr 2011 15:31:45 http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-president-aims-for-10-million-vehicle-sales-by-2015-800476918.aspx After a trying period, Toyota is hoping more people will be willing to trust their brand and buy a new car - and lots of them.

10 million vehicle sales by 2015

According to the Associated Press, within the next four years, Toyota would like to reach or eclipse 10 million vehicle sales on an annual basis.

That's according to Akio Toyoda, president of the Toyota Motor Corporation, telling the AP from a Tokyo hotel that the car maker wants to improve customer satisfaction in addition to profits in the wake of millions of vehicles being recalled since 2009.

"This vision is about what kind of company we are, our values and the road to what kind of company we want to be," Toyoda told the AP.

Toyoda also stated the company would like to see profits in the $12 billion range "as soon as possible."

A new 'global vision'

The Associated Press says these goals are part of Toyota's new "global vision" since the recall of 2009, which led to millions of vehicles being taken off showroom floors for faulty floor mats, sticking gas pedals and braking issues. The AP reports Toyota paid $48 million in fines to the government for how it handled the recalls, but it may be forced to pay even more to individuals, as many motorists are suing the company, alleging that their accidents were caused by the defects the cars were recalled for.

Production halt continues after earthquake

The financial windfall that Toyota is hoping to achieve over the next couple of years may be delayed, however, after the earthquake in Japan.

Since the 9.0-magnitude quake affected the country March 11, many car manufacturers in Japan have put a halt on production as rescue, search and recovery operations continue. The car maker announced that vehicle production will remain at a standstill through March 26, with no indication as to when the manufacturing process will resume.

However, parts production has resumed, as Toyota announced that plants are making replacement parts for cars already on the roads or that are in production in other countries.

Toyota reports that other countries have seen minimal impact in manufacturing processes despite the production decline in Japan, as its 13 manufacturing plants in Canada and the U.S. are running normally.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-president-aims-for-10-million-vehicle-sales-by-2015-800476918.aspx Sat, 02 Apr 2011 15:23:14 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-urge-government-to-continue-to-make-available-fuel-containing-less-ethanol-800475216.aspx Even though the Environmental Protection Agency has approved the use of E15, a gasoline blend containing more ethanol than is currently used, foreign car makers are urging federal authorities to continue to make gasoline containing less ethanol available.
More ethanol may lead to problems

That's because according to the Association of Global Automakers - the lobbying group that represents car manufacturers like Toyota, Honda, Nissan and Hyundai, among others - the fuel change could adversely affect the function of consumers' vehicles.

"Without the widespread availability of legacy fuels, consumers may have no choice but to misfuel their vehicles," Global Automakers said in a statement. "Misfueling can create environmental harm and operational or even safety consequences."

Today, most gasoline carriers use E10, which contains 90 percent gasoline and 10 percent ethanol. But the increasing reliance on ethanol, which is made from corn, has automakers worried that cars will breakdown prematurely.

Will gas stations offer E10 and E15?

USA Today reports that if the government requires gas stations to carry both E10 and E15, it could lead to the end of E15 because it would cost service stations too much to maintain separate pumps.

The Obama administration gave the ethanol industry its approval to increase the use of ethanol in last August, and automakers have been roundly criticizing the approval ever since. In an interview with the New York Times last summer, a spokeswoman for the auto manufacturers described the announcement as "ethanol creep."
Even though the burning of ethanol is considering to be more eco-friendly than regular gasoline, environmentalists are largely against the increased use of ethanol because it requires the burning of corn, thus robbing the food chain of a valuable staple.

It's also led to an increase in food prices since the Environmental Protection Agency approved the use of ethanol in gasoline in 2001. According to a study conducted by the non-partisan Congressional Budget Office, "Producing ethanol for use in motor fuels increases the demand for corn, which ultimately raises the prices that consumers pay for a wide variety of foods at the grocery store, ranging from corn syrup sweeteners ... to meat, dairy and poultry products."

The report goes on to state that in 2008, three billion bushels of corn were produced in the United States, due in large part to the increased use of ethanol for fuel, which led to a 50 percent rise in corn prices compared to 2007.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-urge-government-to-continue-to-make-available-fuel-containing-less-ethanol-800475216.aspx Thu, 31 Mar 2011 13:07:48 http://www.allstate.com/insurance-industry-news/auto-insurance-news/chip-shortage-could-lead-to-supply-problems-for-manufacturers-dealers-800475206.aspx A major microchip manufacturer hasn't been able to produce as many chips for car makers since the earthquake in Japan struck.

The scale of destruction in Japan after the March 11 earthquake is hard for many to fathom as thousands of companies have been adversely impacted, particularly the car industry. But the effect on the production of one of the car's smallest elements—the microchip—has some worried it could bring the auto industry to its knees.

Earlier this week, Renesas Electronics—the semiconductor company that produces many of the microchips that allow a car's engine to communicate with its various parts so it can run—reported it is operating at a diminished capacity.

"The affected regions where these eight factories are located are still experiencing shortages of electricity and fuel supply and unstable logistics networking among other effects caused by the earthquake," the company said in a statement. "Although seven of these factories are restarting production, their output levels are not yet at pre-earthquake levels due to these continued unstable, but improving conditions."

Chips have revolutionized automobiles

As the Wall Street Journal notes, the biggest change the auto industry has seen over the last century is the introduction of electronic chips to a car's operating system. As the paper notes, what was once an amalgamation of steel, glass, rubber and textiles has morphed into an electronic device rather than a mechanical one.

Because modern-day cars are so reliant on these chips, the paper says a prolonged shortage could lead to a domino effect—fewer parts means car makers won't have the resources they need to build, which leads to a drop in supply and a hike in prices if the demand to buy a new car doesn't decrease. According to Reuters, U.S. auto sales are expected to jump 12 percent this month compared to March 2010, despite the rising cost of gasoline around the country.

Parts suppliers may not be able to meet demand

Because consumer demand for vehicles is rising, Automotive News reports parts makers likely won't be able to keep up with manufacturers' demands for the supplies they need to build. Even before the earthquake, according to the news source, suppliers had low inventory levels, the lowest the industry has seen in the month of March since 2002.

Others say they're 'ready'

But other suppliers tell the paper that they'll be able to meet the demand of car manufacturers.

"I'm positioned to handle more volume," said Peter Anthony, CEO of UGN, a Chicago-area supplier that produces interior parts for, among others, Toyota and Honda.

Last week, Toyota issued a statement saying North American dealers had "an ample supply of vehicles," but that may change if parts production continues to struggle. The car maker asked its dealers in an email recently to limit the parts necessary for production and repairs to those that were "critically needed" because of the disruption in supply parts that automakers have experienced.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/chip-shortage-could-lead-to-supply-problems-for-manufacturers-dealers-800475206.aspx Thu, 31 Mar 2011 12:59:46 http://www.allstate.com/insurance-industry-news/auto-maintenance-news/google-tests-first-wireless-ev-charger-800475012.aspx Google has become the first company to test a new wireless electric vehicle charger that may be the next step in green energy technology, according to Wired magazine. 

Plugless Power

The charger was developed by the Virginia-based company Plugless Power and was installed in Google's Mountain View headquarters in California, reported the magazine. The device replaces an electrical outlet with a charging pad that a vehicle can park over top of to recharge - however, as of now only specialty-built cars have the technology to use the wireless device.

The magazine said the pad system is based on a principle known as inductive charging, where an electrical transformer is split between the vehicle and the charger. When the two objects come together the current flows and charges the car's battery. The same system is used to charge devices such as phones and electric toothbrushes, reported the source.
While Plugless Power developed the first wireless prototype in 2009, the station installed at Google is the first time the technology has been released to the public. The company has not said how much the charger may cost, according to Wired, although it did say it will be installing more wireless chargers later this year.

One company, Halo IPT, already plans on expanding on Plugless Power's creation. The source reports that the New Zealand startup is working on a system that will allow a vehicle to charge itself while in motion.

Growth of charging stations

As more consumers purchase hybrid and electrical cars, both home and public charging stations are becoming more widespread. California's Bay Area recently received $3.9 million toward the installation of 27,750 home chargers, in addition to 30 fast-charging stations throughout the city. Los Angeles officials announced the city will soon introduce charging stations, while the city of Phoenix is set to install about 1,000 chargers across the Valley and Tucson by the end of the year.

Energy efficient  vehicles are becoming more common on U.S. roads are more automakers unveil electric and hybrid models. In addition to the Nissan Leaf, General Motors has introduced its own electric model - the Chevrolet Volt. To keep up with the demand, Nissan has taken out a $1.6 billion loan from the U.S. Department of Energy to modify a factory   http://www.allstate.com/insurance-industry-news/auto-maintenance-news/google-tests-first-wireless-ev-charger-800475012.aspx Thu, 31 Mar 2011 10:05:54 http://www.allstate.com/insurance-industry-news/auto-insurance-news/chrysler-sues-local-t-shirt-maker-over-use-of-tagline-800474966.aspx Many Super Bowl viewers enjoyed the Chrysler advertisement that aired during the game's commercial break. Featuring popular rapper and Detroit-native Eminem, some found the ad to be an inspirational representation of the future of Detroit and the auto industry.

"I can't think of a more fitting way to depict Detroit's story than to have fellow Detroit native, Eminem, announce that the city is back and to remind Americans that the revitalized Southeast Michigan auto industry is brimming with new investment and optimism," Representative John Conyers told the Hotsheet. "This year marks a serious upturn for the city of Detroit."

However, the ad's popularity allegedly has a number of other companies attempting to profit from its success. According to the Detroit Free Press, T-shirt makers Pure Detroit may have landed in legal trouble for using the ‘imported from Detroit’ slogan on T-shirts.

Suit against Pure Detroit

Chrysler has sued Kevin Borsay, Shawn Santo and their company Pure Detroit for selling T-shirts that say "Imported from Detroit." The company claims that the two have sold a large number of T-Shirts featuring the slogan and allegedly intentionally copied the car maker's tag line, for which the company had filed a trademark application, according to the source.

According to the Detroit News, before seeking an order for Pure Detroit to cease production of the shirts, Chrysler allegedly offered to halt legal action in exchange for $50,000.

Pure Detroit not the only target

Pure Detroit is not the only group being advised against using the Chrysler slogan. According to the Toledo Blade, Chrysler squashed the plans of a local dealership to use "Imported from Toledo" as a tagline for its vehicles. The slogan was intended to commemorate the 70th anniversary of the Jeep as well as promote Chrysler's release of new restyled models.

However, Chrysler saw it as potentially watering down the impact of its slogan.

"We appreciate the enthusiasm and support of our dealers, but we do not want to dilute the Chrysler Brand's 'Imported from Detroit' tag line," said Michael Palese, a spokesman for Chrysler.

Chrysler reaping benefits of successful ad campaign

Despite the legal skirmish that has resulted from the "Imported from Detroit" campaign, the logo seems to have worked wonders for the struggling automaker . The slogan has expanded and is being featured on clothing items, decals and other garments made by Chrysler. Though whether or not the advertisement has influenced car buying is still unknown, according to the Detroit News, sales of items carrying the slogan exceeded 8,500 as of March 28.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/chrysler-sues-local-t-shirt-maker-over-use-of-tagline-800474966.aspx Thu, 31 Mar 2011 09:24:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/media-may-have-gotten-the-toyota-recall-scandal-wrong-800474930.aspx Toyota's 2010 recall of over 5 million vehicles came as a surprise to many. However, according to Businessweek's Ed Wallace, much of the shock and awe of the Toyota story was perpetuated by media sources.

When the story first broke, the words unintended acceleration struck fear in many Toyota owners worldwide. As with many major stories, the scandal sparked what Wallace refers to as a "media firestorm."

The public was bombarded with "harrowing" stories on a daily basis, Wallace says. Portrayals of drivers in "runaway" cars that accelerated uncontrollably were suddenly being reported on by reputable news sources. However, Wallace suggests that much of the media's information was fuzzy, inaccurate or came from unreliable sources.

Driver error, sticky pedals and improper floor mats

The National Highway Transportation Safety Administration, along with NASA, did a full 10-month investigation into the possibility that the unintentional acceleration in Toyota vehicle was an electrical issue for which the automaker is responsible.

According to the organization, no flaws were found in the electronic systems of Toyota vehicles. Rather, researchers discovered that there was the potential for "sticky" accelerator pedals and the possibility for pedals to get trapped by floor mats - two issues it was aware of from the beginning.

In fact, according to Wallace, some of the unintentional acceleration issues may have been caused by driver error, either through improperly installed mats, "pedal misapplication" or even panic.

"Some people freeze up mentally instead of physically when they panic; they honestly believe they are slamming on the brakes when in fact it is the gas pedal they're flooring," Wallace says.

Devastating consequences

Despite being cleared of much of the responsibility in the problem of unintended acceleration in its vehicles, the vindication for Toyota may have come too late.

The company's shares plunged almost immediately following the announcement of the recall. According to autoblog.com, Toyota's shares plunged 14 percent during the week following the recall - a total value of $21 billion.

The early estimates for the amount the company would spend in recall expenses ranged from $2 billion to $5.5 billion, according to different reports.

Though, according to Moody's Investors Service, the recall wasn't expected to have much of an impact on auto insurance companies and commercial lines, other related industries also were at risk for major losses. Moody's noted that lawsuits against company officials could have led to an increase in claims for directors and officers insurance carriers, which generally protects higher-level employees from expenses related to lawsuits brought against them in their official capacity at a company.

Though much of the panic surrounding the Toyota recall has since died down, Wallace says it serves as a reminder for many of the power media can have in public opinion.

"The first job of a journalist is to ask, 'Is this information true?' It's obvious that when it comes to automobiles, that's the last question the broadcast media want answered," concludes Wallace.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/media-may-have-gotten-the-toyota-recall-scandal-wrong-800474930.aspx Thu, 31 Mar 2011 09:03:15 http://www.allstate.com/insurance-industry-news/auto-insurance-news/detroit-news-apologizes-for-censoring-auto-critics-review-800474922.aspx News articles generally go through a rigorous editing process before being published. However, edits recently made to an auto critic's article in The Detroit News ultimately led to controversy, according to the Wall Street Journal. Displeased with the censorship, the critic quit his position, leading the paper to publish a front-page apology.

The "scathing" review

The root of the conflict between auto columnist Scott Burgess and editor and publisher Jon Wolman was a review Burgess wrote about the Chrysler 200. The review was published in the print edition of the paper. According to the source, the "scathing" review was so harsh, it drew the ire of an advertiser.

In order to appease that advertiser, the source says Wolman made substantial changes to the article, softening it significantly before publishing the online version. According to the website Jalopnik, among the comments taken out were Burgess referring to the car as a "dog" and saying, "It's vastly improved, but that's only because it was so horrendous before."

Though Burgess did not publicly comment on his ultimate decision to resign, he did tell Jalopnik, which closely followed and reported on the story, that his resignation was "unplanned."

The apology

Wolman had reached out to Jalopnik and stated that the decision was "poorly handled", but he decided to make an even more grand gesture in an attempt to rectify the situation. The Detroit News published a front-page apology to Burgess on March 19.

"Our decision to make these changes following an advertiser’s complaint was a humbling mistake," Wolman said in the story. "As publisher and editor, I want to apologize to our readers and of course Scott."

Commenting on the apology, Burgess said the gesture was "impressive and well done" and "clears the air," the Wall Street Journal reported. However, he did not clearly state whether or not he will return to the Detroit News as an auto critic or in any other role.

Despite the editor's public apology, some believe the reputation of the newspaper may have been injured along with the credibility of the new car reviews published within its pages.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/detroit-news-apologizes-for-censoring-auto-critics-review-800474922.aspx Thu, 31 Mar 2011 08:59:04 http://www.allstate.com/insurance-industry-news/auto-insurance-news/allstate-honored-for-high-quality-collision-repair-training-800474888.aspx Allstate Insurance has become the first major auto insurance company to be recognized for excellence in the collision repair field by I-Car, the company announced.

The I-Car Gold Class Professionals award was given to the company recently, in recognition of its commitment to creating knowledgeable professionals who perform safe and complete repairs for customers. Allstate is the largest property and casualty insurer to receive such recognition, the company said.

The company had consistently displayed a commitment to excellence in the collision repair field by requiring employees to take five or more I-Car training courses in order to increase their expertise and be better able to assist customers. By enhancing employees' knowledge of repair practices, Allstate was able to offer customers "efficient, safe and high-quality repair services," the company said.

"We're pleased to be recognized as an I-CAR Gold Class Professionals. This is a symbol of Allstate's commitment to providing its employees with the training and resources needed to provide Allstate customers with a safe and superior customer experience," said Bill Daly, assistant vice president for auto claims at Allstate.

I-Car said the designation will align the company to better serve its customers in the future, but continuing to train employees with the I-Car system will further increase their employees' expertise, which will then be transferred to customers in the form of quality service.

About I-Car

I-Car is an international training group dedicated to educating members of the collision repair industry in order to allow them to perform safe, high-quality maintenance for customers. The nonprofit organization was founded in 1979 by members of the collision repair industry.

The base has expanded beyond simply providing training for those who actually perform collision repairs. "In addition to developing and delivering technical training programs to professionals in all areas of the collision industry, I-CAR supports dialogue among those interested in issues related to proper collision repair and I-CAR's training reaches a broad base of students within six inter-industry market segments who learn the latest methods of efficient, high-quality repair," the company says on its website.

Insurance is one of the related areas that I-Car has expanded its training to, and insurance companies, such as Allstate, take the opportunity to use the company as an informative resource concerning the collision repair process.

A well-regarded company

The I-Car Award is not the only significant recognition Allstate has received recently. Allstate received a number of awards in 2010 for maintaining a diverse and inclusive work environment.

The company's advertising was also recently recognized at the 2011 American Advertising Federation's ADDY Awards, for the now infamous 'Mayhem' character.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/allstate-honored-for-high-quality-collision-repair-training-800474888.aspx Thu, 31 Mar 2011 08:46:57 http://www.allstate.com/insurance-industry-news/auto-insurance-news/electric-cars-sell-at-snails-pace-800474813.aspx  

For the electric car industry, February just wasn't it's month. In fact, at least so far, 2011 hasn't been its year.

According to Chevrolet's February sales release, a paltry 281 Chevy Volts - the company's electric car - were sold nationwide, representing 0.1 percent of its total sales.

Nissan didn't fare much better in electric vehicle sales. Nissan, which unveiled its Leaf model in December as a more affordable alternative, moved just 67 in February and has sold just 173 for the year.

Combined, 1,101 electric vehicles have been sold nationwide in 2011.

Overall, however, car sales for both companies were quite swift last month. Increasing 31.6 percent over January, last month's sales for Nissan was the car maker's best February on record. A short month didn't detract from Chevrolet's sales either, as retail sales surged 69 percent compared to January.

The price of the cars may also play into the lack of sales. The Chevy Volt sells for a little more than $45,000 and the Nissan Leaf for $27,000, more expensive than smaller cars which can still help consumers save gas .
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/electric-cars-sell-at-snails-pace-800474813.aspx Thu, 31 Mar 2011 07:32:24 http://www.allstate.com/insurance-industry-news/auto-insurance-news/is-now-the-time-to-buy-a-new-car-800474204.aspx With gas prices continuing to rise and Japan's recent earthquake affecting automobile production, many people who have been considering buying a new car are questioning if they should take the plunge now or wait it out.

The answer to that question depends on who you ask.

Buy later

The Los Angeles Times asked that question to a representative from Kelley Blue Book and he said the only people who should be buying right now are those who can't afford not to.

"Don't run into the marketplace and purchase a new vehicle unless you absolutely have to," said Juan Flores, director of vehicle valuation for Kelley Blue Book in an interview with the paper. "Wait for gas prices to come down and the Japanese earthquake to no longer be an issue."

Over the past several weeks, Japanese car makers like Toyota and Honda have released press releases almost daily, detailing the status of automobile manufacturing in the country. Both Honda and Toyota have discontinued production since the earthquake struck March 11. The car makers have also both said that U.S. production should not be affected, but because several models are only built in Japan, there may be shortages for certain models. For their part, Toyota has said they will resume production of the Prius Lexus CT and HS March 28, while Honda has said its halt on production will last through April 3.

Now's the time

The supply shortage has other industry experts telling the Los Angeles Times that now, in fact, is the best time to buy a new car. Excluding the Toyota Hybrid, a chief executive for Edmunds.com says people should take advantage of the affordable market while they still can.

"I cannot imagine a scenario where there will be more cars to choose from or lower prices months from now than what we have now," said Jeremy Anwyl, chief executive of Edmunds.com, in an interview with the Times. "If the supply of cars is disrupted, dealer pricing would firm up, incentives would go down, and you will have more limited options, such as not being able to get the color you want."

The price of gasoline is also factoring into many car shoppers' decisions. According to Gasbuddy.com, the average price of regular unleaded has steadily risen since December 2010, but it's skyrocketed since February. The website says the current national average for regular unleaded is in excess of $3.90 throughout much of the West Coast, but in most states prices are in the $3.40 range.
But unlike the possible rise in car prices being due to a supply shortage, increased gas prices have nothing to do with inadequate gasoline storage levels, according to experts.

"There is no doubt that the price of gasoline is out of whack with the current supply that we have," said Phil Flynn, an oil analyst with PFGBest Research in an interview with the Los Angeles Times.

Most economists attribute the increase in gas prices to fears that there may be a shortage due to the political unrest in the Middle East. Just how high prices will go—and when they will come down—is still uncertain.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/is-now-the-time-to-buy-a-new-car-800474204.aspx Wed, 30 Mar 2011 15:02:36 http://www.allstate.com/insurance-industry-news/auto-insurance-news/carscom-names-the-best-vehicle-for-college-bound-students-800474194.aspx With summer approaching, the last thing on most students' minds is going back to school. But that may be a different story for soon-to-be high school graduates, as not only will many be off to college, they may be arriving there with a new set of wheels.

With this in mind, Cars.com has performed a breakdown of what vehicles it considers to be off-to-college worthy when the time comes to buy a new car.

Ford, Honda and Toyota considered

The website's finalists were the 2011 Ford Fiesta SES, 2010 Honda Fit Sport and 2010 Toyota Scion xD. Unlike the other tests, though, it wasn't just safety that the editors at Cars.com were judging. In addition, they took factors into account that college-bound drivers would likely want or need, such as space for luggage, room for friends, the quality of the car's stereo system and whether the car had "campus appeal."
Valedictorian: 2010 Honda Fit
Judging based on nine criteria, the 2010 Honda Fit Sport earned the editors' choice designation, scoring well in drivetrain performance, audio system quality, room for friends and storage space.

"The Fit's eager drivetrain is endearing, but it's the remarkably spacious cabin and cargo area - a packaging marvel - that solidified the Honda's position atop the podium," the Cars.com editors conclude.

While the editors admired the Fiesta's driving capabilities, they said the interior might be a bit cramped for some. The xD finished third, but the site said it was definitely a strong value and had a good list of features.

Will earthquake impact Honda Fit inventory?

With the recent earthquake and the devastation wrought in Japan, shoppers interested in buying a Honda may be wondering if supplies have been affected. But according to Edmunds' Inside Line, Honda Fit inventories should not be impacted. Honda has had to shutdown manufacturing operations in the quake's aftermath - a shutdown that will last through April 3, according to the USA Today. But Honda has said in a statement that the company has "adequate inventory of products supplied from Japan."
Because the Fit—along with the Insight, CR-Z, Civic Hybrid, Acura TSX and Acura RL—is only made in Japan, short supply and high demand may send prices up for the model.

According to TrueCar.com, which tracks daily price reports for a variety of cars, the price for a Honda Fit went up $21, or 0.1 percent, just days after the March 11 quake struck.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/carscom-names-the-best-vehicle-for-college-bound-students-800474194.aspx Wed, 30 Mar 2011 14:57:47 http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-announces-multiple-factory-closings-following-japanese-tragedy-800470843.aspx General Motors has frozen all nonessential spending and travel as it analyzes the full potential impact that the recent earthquake and tsunami in Japan may have on the company.

GM stopping all non-critical expenses

GM Chairman and Chief Executive posted a note on the company's employee website saying the organization is holding off on any expenses that are not critical in an attempt to lower the financial fallout that may result from the Japan crisis. Sources say GM has already taken steps to shut down a factory in Shreveport, Louisiana, that manufactures small trucks.

Moreover, GM - which the Wall Street Journal reports has voiced its concerns regarding the effect of the disaster on production more than any other Detroit automaker - announced it also shutting down a plant in Zaragoza, Spain, and is severely cutting shifts at another factory in Eisenach, Germany.

Spokesman Klaus-Peter Martin told the Minneapolis Star Tribune that GM is adjusting as necessary to reduce the financial impact of the Japanese tragedy on the company.

"The whole industry is still in the process of figuring out what the implications are from the disaster in Japan," he said.

Industry-wide impact of the disaster

Multiple automakers have either closed factories or reduced production in the aftermath of the tsunami. According to Reuters, Japanese automakers alone are expected to lose about 65 percent in light vehicle production in the two weeks following the disaster. The small country, a hot-bed for car manufacturers, normally produces about 37,200 a day, reported the source, coming to about 521,000 in a two-week period. IHS Automotive Insight told Reuters that it could take seven weeks of full production with overtime at one factory to make up for just one week of lost production.

Toyota, which the New York Times said produces almost half of the vehicles the company sells world-wide in Japan, has temporarily halted production at all 12 of its Japanese plants. Many car dealers are concerned about the hold, since demand for the Prius hybrid - which is only manufactured in Japan - has skyrocketed. In addition, Toyota has had to postpone the launch of its new wagon-version of the Prius that was set to go on sale in the in April.

According to the Wall Street Journal, the delays in production could make 2011 a bad year to purchase a new car. Japanese factories primarily produce the components necessary for many hybrid vehicles and are also a leading manufacturer of energy efficient economy cars such as the Honda Fit and Toyota Yaris. If supplies dry up, the newspaper said consumers may find themselves paying full price - or even higher - for vehicles that were discounted only a few weeks ago.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-announces-multiple-factory-closings-following-japanese-tragedy-800470843.aspx Fri, 25 Mar 2011 09:18:25 http://www.allstate.com/insurance-industry-news/auto-insurance-news/experts-explain-factors-that-help-influence-auto-insurance-premiums-800470838.aspx Instead of simply looking at the overall price tag of auto insurance, vehicle owners should consider studying the six major components that insurers may use to help determine rates, as their driving lifestyle can have a major impact on policy costs.

Driving record may influence rates

Knowing that their policyholders are good drivers matters to car insurance companies, which is why an applicant's driving history has a serious impact on rates. Motorists who have had multiple accidents or driving violations may have more expensive premiums, according to experts, while companies offer discounts to those with clean records.

Age may also have one of the biggest impacts on auto insurance rates. Teen drivers between the ages of 16 to 24 are traditionally the most expensive to insure because statistics show they have the highest risk of getting into a collision. Those in that age group are four times as likely to get into a car accident, according to the Centers for Disease Control and Prevention, which also reports motor vehicle crashes are the leading cause of death for teens. Experts say drivers are typically considered high risk until the age of 25, while those between the ages of 40 and 50 are usually considered the lowest risk and therefore, will receive lower insurance premiums.

Lifestyle matters

Car owners living in busy cities may also pay more than their rural or suburban counterparts. In its 2011 Car Insurance Rate Report, InsWeb reported that the largely rural Idaho had the lowest rate for a six-month policy at $436, followed Maine and Vermont. Moreover, J.D. Power and Associates reports that cities are considered high-risk areas since more accidents and cases of car theft generally occur.

Drivers with newer, flashy vehicles may also pay more for car coverage, because their vehicles may be more susceptible to theft or require expensive parts for repairs. However, insure.com reports that an automobile's retail price is not the only factor that determines insurance rates. A model's car loss history - meaning the number of claims that owners of the same vehicle have submitted - can also have a significant influence on premiums.

How much a policyholder actually drives can also affect auto insurance prices. Car insurers may use risk to measure rates, and the more a motorist drives, the higher risk he or she potentially has of getting into an accident. Motorists who put 10,000 miles or less on a vehicle each year may qualify for low-mileage discounts, a good option for automobile owners who take advantage of carpools or have short commutes.

Each policyholder chooses a different amount and combination of car insurance coverage, which directly contributes to the cost. While all motorists are required by law to own basic liability coverage, there are additional plans - such as collision and comprehensive coverage - that offer a wider range of protection for the policyholder in the event of an accident. http://www.allstate.com/insurance-industry-news/auto-insurance-news/experts-explain-factors-that-help-influence-auto-insurance-premiums-800470838.aspx Fri, 25 Mar 2011 09:13:54 http://www.allstate.com/insurance-industry-news/auto-insurance-news/porsche-announces-production-of-hybrid-sports-car-800470828.aspx Drivers looking for an energy efficient vehicle with some serious style may soon be able to buy the car of their dreams - if they have $845,000 to spend.

After a successful unveiling at the 2010 Geneva Motor Show in Switzerland, luxury automaker Porsche said its dealers are now taking orders for the 918 Spyder hybrid sports car. The vehicle was introduced as a concept car, and the company said it will begin production of the model in September 2013. However, Porsche is only producing 918 cars, meaning any interested buyers need to get in fast if they want to secure one the German manufacturer's high-end hybrids.

Still a high-performance vehicle

The plug-in coupe combines a 500 horsepower V8 engine with two electric motors that contain an additional 218 horsepower, allowing the vehicle to save fuel while maintaining top speeds. Porsche said the hybrid will be able to go from zero to 60 mph in 3.1 seconds, reported Forbes Magazine, and will reach a top speed of 199 mph. With electric power alone, the vehicle will still reach a top speed of 94 mph within limited distances.

The model will have an electric-only range of about 16 miles in slower driving conditions, added Forbes, and will take seven hours to recharge.

Based on a conversion from the New European Driving Cycle, the 918 Spyder hybrid will get approximately 78 miles per gallon, according to the Wall Street Journal. Official fuel-economy estimates from the U.S. Environmental Protection Agency will be available in 2013, reported the source.

Others also entering hybrid arena

After years of domination by more affordable car manufacturers such as Toyota and Honda, premium car companies have decided to jump into the hybrid market. High end brands like Rolls Royce and BMW also introduced concept cars for new hybrid or electric models at last year's Geneva Motor Show. In September's Frankfurt Auto Show, automaker Daimler is slated to reveal the news versions of its Mercedes A-class and B-class series, which will feature green technology to power the vehicles either with battery power, a gasoline-electric hybrid or fuel cell-gasoline hybrid power.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/porsche-announces-production-of-hybrid-sports-car-800470828.aspx Fri, 25 Mar 2011 09:03:27 http://www.allstate.com/insurance-industry-news/auto-insurance-news/driving-techniques-can-help-reduce-gas-consumption-800468936.aspx With gas prices approaching $4 a gallon across most of the country, many drivers are struggling to fill their tanks without breaking the bank. To help consumers save money on fuel, Minneapolis' KSMP-TV has offered some gas saving tips that can reduce motorists' trips to the pump.

The process of maximizing fuel efficiency, known as hypermiling, can help a car get the most miles per gallon. While unusual, the news station said wind conditions can have a surprising influence on gas mileage. The source said motorists should try to drive with tailwinds if possible and to avoid getting behind the wheel at all on an especially windy day.

Another tip that may surprise some drivers is placing cardboard over the radiator while driving in order to keep the engine warm. Warmer engines are more fuel efficient, reported the station, although drivers should be sure to remove the cardboard if the vehicle is in danger of overheating.

Driving habits make a difference

Anyone used to slamming on their brakes should try to quit the habit, as it can waste a considerable amount of fuel. The harder a driver breaks, the harder they will have to accelerate, burning more gas than necessary. Keeping a generous space between cars can reduce the need to ride the brakes, according to the source, which recommended that drivers take their foot off the gas and simply coast to a stop whenever possible.

Using a vehicle's cruise control system can also save gas. The setting keeps speed steady, reducing the waste that comes with needlessly speeding up and then slowing down again. According to Edmunds.com, using cruise control can save up to 14 percent of fuel, which could lead to a substantial savings over the course of a long trip.

Resisting the urge to speed can also be a money saver in more ways than one. Besides reducing the chance of getting hit with an expensive speeding ticket, the Consumer Energy Center reports that the average vehicle loses fuel economy once it goes over 55 miles per hour. Slowing down from 75 miles per hour to 55 can reduce costs by up to 25 percent.

Some Americans are turning in their gas guzzlers for more fuel-efficient models to avoid expensive fill-ups. According to the Wall Street Journal, Kelley Blue Book reported that in February 81 percent of car shoppers said the price of gas influenced their vehicle choices, up 11 percent from January. Out of those, 40 percent said they were buying a smaller car to save money.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/driving-techniques-can-help-reduce-gas-consumption-800468936.aspx Wed, 23 Mar 2011 09:17:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-industry-may-feel-pain-after-japan-earthquake-800468122.aspx The car market is saturated with Japanese automobiles, and in the wake of the 9.0-magnitude earthquake that's left thousands dead and hundreds of thousands homeless, the disruption to the automobile manufacturing market will likely be significant.

According to the Wall Street Journal, several Japanese automakers have shut down production and don't plan on resuming until next week at the earliest.

Limited damage to vehicles

The paper reports that while damage to automakers' vehicles was limited, the ability to produce cars is what will really hurt the industry. As the Journal indicates, Japan's lack of electricity, fuel supplies and transportation avenues has effectively paralyzed the assembly process.

The paper reports it's too early to know how the lack of production will affect the U.S. market and consumers' ability to buy cars. Because many Japanese vehicles are built in the United States, there may not be too much of a shortage, but the WSJ says some models are exclusively made in Japan. As a result, the Honda Fit, Toyota Yaris and Toyota Scion could be in short supply down the road.

The paper reports that what is a financial disaster for some car makers could be a windfall for others, as Ford and General Motors could fill the vacuum of fewer foreign-made automobiles being in the marketplace, especially if U.S. automobile sales continue to perform well.

According to Businessweek, automobile sales in February could eclipse the number of cars sold during the government's cash-for-clunkers program in 2009. Ten analysts surveyed by Bloomberg say light-vehicle deliveries may be in the 12.5-million annual rate range.

Consumer confidence up

Another factor boding well for an increase in people looking to buy a new car is the increase in consumer confidence. "The measures in the consumer confidence surveys that relate to autos have picked up more than the overall index," said George Magliano, a New York-based senior economist for IHS Automotive, in an interview with Bloomberg. "The consumers with jobs are feeling better about the economy and have held off purchases for quite some time."

According to the New York-based Conference Board, consumer confidence improved in February to 70.4, up from 64.8 in January. Lynn Franco, director of the Conference Board Consumer Research Center, says consumer confidence is now at a three-year high.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-industry-may-feel-pain-after-japan-earthquake-800468122.aspx Tue, 22 Mar 2011 13:29:05 http://www.allstate.com/insurance-industry-news/auto-insurance-news/renault-ceo-apologizes-after-accusing-employees-of-espionage-800466217.aspx After accusing three employees of corporate espionage, which led to their dismissal from the company, Renault's CEO is publicly apologizing to the men because they were wrongly accused.

According to the Wall Street Journal, Renault CEO Carlos Ghosn went on national television in France and apologized to the three senior managers.

"I was wrong. We were wrong," Ghosn said. "And from the conclusions we heard from the Paris prosecutor, it seems that we were all fooled."

Bribe accusations

Last August, Michel Balthazard, head of the Renault's development project, was found to have apparently negotiated a bribe. An investigation conducted on behalf of the car company determined Balthazard was holding the money from those bribes through Swiss bank accounts. The investigation also found that two others - Balthazard's deputy Bertrande Rochette, and the deputy head of the car company's electric-vehicle program, Matthieu Tenenbaum - were also involved. The three men were dismissed from the company in January.

But the paper reports that a subsequent investigation, which cost Renault approximately $400,000, indicated the three men were falsely accused and the car maker was the victim of an organized fraud attempt.

"At this point we do not know whether this is just fraud or a deliberate attempt to destabilize Renault," said Jean-Claude Marin to reporters, the Paris prosecutor who conducted the subsequent investigation. "If there was any espionage, it was not done through the networks identified by Renault."

Employees may not return

All of the men have been offered their jobs back, but Balthazard's attorney told the Wall Street Journal last week that he wouldn't accept Renault's offer to return. A lawyer for Tenenbaum told the paper his client would consider the offer. Representatives for Rochette weren't able to speak to the paper.

The car maker issued a press release March 14, saying Ghosn offered to waive the bonus he's due to receive due to the scandal. The company's executive board unanimously supported the decision.
Renault, which is allied with Nissan, has a global presence, with dealers in the United States, Europe, Japan, China, India and Russia. By volume, it takes up 9 percent of the global market and is the third-largest automaker in the world.

The company has put a lot of investment into the potential vehicles that run on green energy. Approximately $5.16 billion has been invested in eight different electric models over the next four years, according to National Public Radio.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/renault-ceo-apologizes-after-accusing-employees-of-espionage-800466217.aspx Fri, 18 Mar 2011 14:08:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/japanese-auto-brands-extend-shutdown-period-800465883.aspx The motor vehicle industry in Japan, home to a number of world-renowned auto brands, is struggling to recover from the March 11 earthquake and subsequent tsunami, according to industry research and forecasting group IHS automotive.

The group reported that a number of Japanese auto makers have decided to extend the amount of time they will suspend production of vehicles. Some automakers were more affected than others, depending on the location of their primary manufacturing facilities in Japan.

Toyota has decided to idle all of its Japanese facilities through March 16, while Honda's production is unlikely to restart until sometime after March 20, according to the source. Subaru, Mazda, Suzuki and Mitsubishi have all halted production as well

According to the Wall Street Journal, it is unclear how long the industry will take to rebound and whether or not the halt will affect those buying cars in the U.S. Many of the cars sold in America by the affected car makers are actually produced in the U.S or elsewhere in North America. However, popular vehicles like the Honda Fit and Toyota Yaris and Scion are only built in the Japanese region that suffered significant damages.

Indirect impact

The industry also suffered a significant amount of indirect impact, the source said. Many suppliers which provide parts for Japanese auto manufacturers worldwide were severely damaged by the earthquake and tsunami.

Additionally, the devastated neighborhoods where many of the plants were located may have the long-term effect of desolation, stripping the human support for these facilities from the area.

"Beyond the physical plant and facility issues are human issues that are unlikely to be resolved any time soon. The tragic loss of life and homes across the region means that even if infrastructure and facilities can be repaired, whole communities that have supported many of these plants have been uprooted or are still unaccounted for," the report said. "An ongoing nuclear power emergency that has seen five power plants shut down could make power outages a routine occurrence across the country in the near term as well."

The report also discussed problems with land and sea transportation as well as inventories that were destroyed when the earthquake struck. According to the report, 2,300 Nissan and Infiniti vehicles waiting for shipment at the Hitachi port were destroyed by the tsunami.

The 9.0-magnitude earthquake was one of the most devastating to hit Japan in modern history. The subsequent tsunami - a more common geographic occurrence in Japan, which holds half of the top 10 spots on Australian Geographic's list of the most destructive tsunamis in history - served as a major obstacle to recovery efforts.

Some experts believe the recovery of economic output across the nation will be delayed due to the extent of damages to infrastructure, according to the BBC.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/japanese-auto-brands-extend-shutdown-period-800465883.aspx Fri, 18 Mar 2011 07:52:36 http://www.allstate.com/insurance-industry-news/auto-insurance-news/kia-announces-major-recall-800465880.aspx The Kia Motors Corporation is recalling approximately 70,115 Optima cars from the 2006 to 2008 model years, meaning they were manufactured between September 29, 2005 and June 13, 2007. Shift cables in those vehicles could possibly fail because they may have been improperly installed.

The cable could detach from the shifter, preventing drivers from properly changing gears with the in-vehicle gear lever. This could be particularly dangerous in a situation where a driver's shift cable detaches just before they park their car. If the vehicle's gear lever is not connected to the shifter, placing the vehicle in park will be ineffective, and the car will actually remain in drive, the company says. The vehicle could potentially begin rolling and hit another vehicle or other obstruction.

Though Kia did not specify in the document they submitted to the National Highway Traffic Safety Administration any injuries resulting from the problem, the Wall Street Journal reported that such cable detachments have been reported on a number of vehicles.

Kia is offering to inspect vehicles for proper shift cable installation and will make repairs at local car repair facilities as necessary. The company is also advising customers that, until they can get their cars inspected, they should engage their parking brake whenever placing their vehicle is in park as an added precaution.

Recall history

This is one of a few major recalls the company has made in recent months. Last September, Kia recalled nearly 86,000 vehicles in order to repair internal wiring used for lighting the dashboard and other interior features, which were found to potentially cause heat-related damages. The vice-chairman and co-chief operating officer for the automaker, Chung Sung-eun, resigned to take responsibility for the recall, according to Reuters.

The company also had a much smaller recall in November 2010, when it called back approximately 7,697 Sorentos built between September and October of that same year, due to a potential rear brake problem, according to The Weekly Driver.

Though the current recall is major for Kia, it is still much smaller than the largest auto recall in history, according to AutomotiveAddicts.com. The site reported that Ford's 1996 recall related to faulty ignition systems which could potentially spark fires affected 7.9 million automobiles made between 1993 and 1998. The site also ranked the Toyota gas pedal recall in 2010 as the largest recall in recent times, affecting a reported 5.3 million cars.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/kia-announces-major-recall-800465880.aspx Fri, 18 Mar 2011 07:41:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-show-features-high-end-hybrid-vehicles-800464056.aspx More luxury automakers are hopping on the electric bandwagon, as Rolls Royce released its own energy-efficient model at the recent Geneva Motor Show.

The newly displayed Rolls Royce Silver Phantom features batteries and an electric motor in the place of a traditional engine, according to the Economist, one of many hybrid or electric vehicles featured at the show, which included models from brands such as Mercedes, BMW and Porsche. Ian Robertson, the marketing director of BMW, told the magazine that more auto manufacturers are feeling the pressure to tighten their environmental standards and produce energy saving cars.

"Society and governments want to move towards zero emissions from cars," Robertson said.

Until recently, the news source said Lexus was the only luxury brand to produce energy-efficient vehicles, following in the footsteps of its parent company, Toyota. The Japanese automaker is currently one of the leading producers of hybrid cars in the world, with the company selling over two million of its Prius hybrids since their introduction in 1997.
The source said the Prius is Toyota's best-selling model in Japan, while experts predict one in five Toyota or Lexus vehicles sold in Europe will soon be hybrids.

Carl-Peter Forster, the chief executive of Tata motors - the owner of Jaguar and Land Rover - told the magazine that for the last decade, premium automakers have been making environmentally friendly changes. He predicts that 80 percent of luxury cars will have hybrid engines in the next 10 years.

However, gasoline-electric hybrid vehicles will soon be just one of many options available. The source said September's Frankfurt auto show will feature new versions of the Mercedes A-class and B-class models that can be powered by an electric battery, a traditional hybrid configuration or a fuel cell hybrid. Thomas Daimler, the director of research and development for Mercedes' parent company Daimler, told the magazine that the company has managed to reduce the price of fuel-cell systems, meaning those models will be ready for mass production whenever regions begin producing hydrogen filling stations.

Some U.S. environmental groups hope that unrest in oil-producing nations and skyrocketing gas prices will lead to considerable policy changes to wean America off its dependence on oil. The Hill reports that President Barack Obama recently called for more initiatives to make the nation more energy-efficient and energy-independent. To encourage the transition, the federal government offered tax breaks for consumer who purchased an electric vehicle in 2010.

As U.S. gas prices approach $4 a gallon, more consumers are looking to save fuel. The Los Angeles Times reports that the number of hybrid vehicles in the nation jumped from 10,000 in 2000 to 1.4 million in 2011, and the industry continues to expand.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-show-features-high-end-hybrid-vehicles-800464056.aspx Wed, 16 Mar 2011 09:26:45 http://www.allstate.com/insurance-industry-news/auto-insurance-news/model-law-addressing-aftermarket-auto-parts-voted-down-800463765.aspx The National Conference of Insurance Legislators has rejected a proposal that would have specified conditions under which insurance companies could repair vehicles with aftermarket parts.

The decision, which came through the agency's Property-Casualty Insurance Committee, had been a popular topic of conversation among the organization. The proposed law would have required disclosure and consent before a crash part is repaired or replaced, in addition to establishing rules for insurers to specify which parts are from aftermarket suppliers.

Jack Gillis, the executive director of the Certified Automotive Parts Association, said automakers have opposed the model law because it would be beneficial to aftermarket parts manufacturers and eat into their profits.
"There's nothing wrong with generic products. In fact they're the best thing for consumers because they put downward pressure on the cost of those products," said Gills, comparing aftermarket parts to generic medications.

While aftermarket parts are less expensive and can usually work just as well as those from the original manufacturer, Edmunds.com reports that consumers may get what they pay for in auto maintenance. Some cheaper aftermarket parts may use lower quality materials that could damage a vehicle.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/model-law-addressing-aftermarket-auto-parts-voted-down-800463765.aspx Tue, 15 Mar 2011 14:07:33 http://www.allstate.com/insurance-industry-news/auto-insurance-news/study-traffic-fatalities-increase-for-winning-fans-following-major-sporting-events-800456199.aspx Athletic games that keep fans on the edges of their seats may also result in a sharp increase in traffic fatalities, according to a recent study.

Researchers evaluated the rate of fatal traffic accidents following 271 professional and college football and basketball games between 2001 and 2008. The group of games included championship series', tournaments and rivalry matches. They contacted experts to rank the games on how close they were in score on a scale of one to five.

Results showed that the closer the game, the higher the risk of a fatal accident for fans afterwards. Specifically, an increase of one on the closeness scale was associated with a 21 percent rise in accident risk. The difference in risk between a blow-out game and one very close in score was 133 percent. However, these increases generally occurred near the site of the competition and in the hometown of the winning team.

Researchers say the link may be associated to an increase in aggression caused by a spike in testosterone levels for winning fans. Though they did not propose a way to combat the problem, safe driving practices are always important for preventing accidents.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/study-traffic-fatalities-increase-for-winning-fans-following-major-sporting-events-800456199.aspx Thu, 10 Mar 2011 23:38:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/batmobile-auction-nets-over-200000-800456193.aspx The iconic Batmobile from the 1995 production of Batman Forever was recently sold at a Fort Lauderdale auction for $233,000.

Though the vehicle has a proud new owner, don't expect to see it on the road anytime soon. At 25 feet long and with a 10.5-foot tail fin on the back, the car will likely never meet federal vehicle safety standards.

The Wall Street Journal reported the vehicle was expected to go for anywhere between $200,000 and $275,000, which may sound expensive for a car that can’t be driven, but according to some sources, it was merely a fraction of the vehicle's original cost.

The film's producer Tim Burton may have spent nearly $2.8 million for the vehicle.

Now that the old Batmobile has been sold, rumors are starting to spring up about the vehicles that will appear in the upcoming Batman film, The Dark Knight Rises. According to a fan site, in addition to a new car, the super hero may also be sporting an aerial vehicle.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/batmobile-auction-nets-over-200000-800456193.aspx Thu, 10 Mar 2011 23:33:13 http://www.allstate.com/insurance-industry-news/auto-insurance-news/pets-may-pose-driver-distraction-hazard-800453293.aspx Though cell phones and other electronic devices are usually the target for laws intended to combat distracted driving , a new Oregon bill recently introduced in the Senate would ban driving with an animal on one's lap.

State Senator Ginny Burdick has introduced the law in an effort to make "operating a vehicle when an animal is in the operator's lap," a traffic violation that would carry a $90 maximum fine.

Potential hazards posed by animals in vehicles have been in the forefront recently, given the increasing public concerned over distracted driving hazards.

Pets could begin begging for their owners' attention, become carsick, begin chewing the car's upholstery or even place their paws on the steering wheel, all potential distractions for the driver, which could result in a serious accident.

"Tens of thousands of car accidents are believed caused every year by unrestrained pets, though no one has solid numbers," according to the Associated Press.

Drivers should be cautious when driving with animals and may want to keep pets in the backseat, whether or not it is mandated by local law.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/pets-may-pose-driver-distraction-hazard-800453293.aspx Wed, 09 Mar 2011 17:14:34 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-vehicle-tool-integrates-social-networking-capabilities-800453272.aspx A new system created by infotainment group, Harman, may allow social networking addicts to stay connected while on the road, according to Connected World Magazine.

The company has created an entertainment system that allows drivers to hear Twitter and Facebook updates, as well as stream music online, listen to podcasts and get up-to-date traffic information, the source says.

For those concerned about the potential for distracted driving , the system is entirely hands-free, making it legal in states that have only banned the use of hand-held electronic devices while driving.

However, some who argue that diverted attention also contributes to distracted driving may still be concerned of potential safety hazards of this system.

"What's still debatable is the kinds of things that might be a cognitive distraction. Not necessarily distracting your hands, but distracting your mind and attention from the road," Debbie Hersman of the National Transportation Safety Board told News4Jax.

In order to remain safe on the road, drivers should always try to focus on their surroundings and should ensure their vehicle has adequate auto insurance coverage.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-vehicle-tool-integrates-social-networking-capabilities-800453272.aspx Wed, 09 Mar 2011 17:11:18 http://www.allstate.com/insurance-industry-news/auto-insurance-news/lotus-the-next-luxury-vehicle-800444729.aspx A small car manufacturer wants to gain prestige in the car world, and to do it, it's pulling out all the stops.

According to the Wall Street Journal, Lotus, a U.K.-based car company known mainly for its success in engineering, is in the midst of an in-depth marketing campaign to try to become the car industry's next luxury model.

In an interview with the paper, Lotus CEO Dany Bahar says his company is introducing an array of accoutrements designed to fit a Lotus driver's lifestyle, including three clothing lines and Lotus-branded merchandise like luggage and backgammon sets.

"This isn't about a car," Bahar told the Wall Street Journal. "It's about creating a family."

Bahar says although the first new Lotus model won't be available until 2013, he hopes to sell as many as 8,000 cars within the first five years of being introduced.

"We want to be the next Porsche," Bahar told the WSJ. "Not in terms of volume but in the extent of their range."

However, drivers of the new models will likely pay higher auto insurance rates. Owners of the Porsche 911 Carrera S pay some of the highest auto insurance premiums in the country, according to industry reports.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/lotus-the-next-luxury-vehicle-800444729.aspx Fri, 04 Mar 2011 14:54:39 http://www.allstate.com/insurance-industry-news/auto-insurance-news/three-states-consider-adopting-no-pay-no-play-laws-800444715.aspx In an effort to curb auto insurance fraud, legislators in several states are considering passing a law which would make it more difficult for motorists to turn a profit after being involved in an accident.

The legislation, often referred to as 'No pay, no play,' would limit the damage uninsured motorists could recover after being involved in accident where another driver was to blame. The state legislatures considering the legislation - Montana, Oklahoma and Minnesota - would join eight other states with 'no pay, no play' provisions already on the books, according to the Property Casualty Insurers Association of America.

The 'no pay, no play' laws vary from state to state, but in general, most states allow for more money to be paid out if the damages or injuries sustained to one or more people were due to a drunk driver.

According to the International Risk Management Institute, no-pay, no-play laws often require uninsured drivers to pay a large deductible if they want to sue for the insured party for property damage. IRMI says the deductible is usually $10,000.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/three-states-consider-adopting-no-pay-no-play-laws-800444715.aspx Fri, 04 Mar 2011 14:51:24 http://www.allstate.com/insurance-industry-news/auto-insurance-news/richland-county-police-use-technology-to-recover-stolen-cars-800442329.aspx The number of stolen vehicles have been on the rise both in Richland County, South Carolina, and nationwide. To combat the rising problem, deputies in the South Carolina county have installed LoJack tracking devices on some of their vehicles, WIS-TV reported.

A vehicle with a LoJack transmitter that is reported stolen will transmit a signal with its VIN number that can be picked up by cars with LoJack tracking devices, including the newly equipped police vehicles. The police department helicopter has also been equipped with the device, further enhancing the ability to track down stolen cars.

Before these devices were installed, much of the recovery efforts for stolen automobiles were based on pure luck, deputies told the source."It was more or less recognizing a vehicle description and getting lucky with a tag or maybe had a broken window or a guy would just run from you on a minor traffic stop," said Richland county corporal Chris Duke.

Though these devices may help increase the number of stolen vehicles that are eventually recovered, some cars may still never be found. Auto insurance coverage can be essential for having funds to put towards a replacement vehicle in the event a driver's car is stolen.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/richland-county-police-use-technology-to-recover-stolen-cars-800442329.aspx Thu, 03 Mar 2011 17:22:14 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-pa-legislation-may-toughen-state-driving-laws-800442321.aspx A recent bill introduced in the Pennsylvania state legislature by Representative Joseph Markosek is intended to reduce the number of accidents caused by distracted and inexperienced drivers.

In order to reduce distracted driving, the bill would make driving while using a cell phone a secondary offense, meaning drivers pulled over for a different violation would pay a $50 fee for cell phone use in addition to other penalties. Adults are required to use hands-free devices, but no type of mobile phone use will be permitted for teen drivers under the new law.

To tackle problems caused by inexperienced drivers, the state is also considering adding new rules for license eligibility, including increasing required driving practice hours.

The area has had a high number of accidents involving young teenagers, according to the source, which claimed federal statistics showed 97 drivers between the ages of 15 and 19 involved in fatal accidents in Pike and Monroe counties between 1994 and 2008.

These teen deaths are part of a major onslaught of traffic accidents that have been occurring in Pennsylvania. According to the Pennsylvania Department of Transportation, the number of annual highway deaths increased by 68 from 2009 to 2010.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-pa-legislation-may-toughen-state-driving-laws-800442321.aspx Thu, 03 Mar 2011 17:18:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/suspicious-auto-insurance-claims-up-24-percent-from-2008-800439886.aspx The National Insurance Crime Bureau has released its questionable claims report for 2010 and the results show a 24 percent increase in the number of suspicious claims that auto insurance companies received, in comparison with 2008 statistics.

Member insurance companies reported 91,797 insurance fraud cases, up from 84,407 in 2009 and 74,146 in 2008. The claims qualify to be counted if they were referred to the NICB for investigation over the year, for having anywhere from one to seven indicators of possible fraud. Such indicators include auto glass fraud and inflated towing or storage bills.

"Insurance fraud is not a victimless crime. It affects all consumers who buy insurance because the money lost to fraud is recovered, in part, through higher premiums. NICB, its member companies and law enforcement across the nation are working to reduce this criminal activity, and I urge all Americans to help us help them," NICB president and CEO Joe Wehrle said.

A possible explanation for the increasing numbers of auto insurance fraud may be consumers in financial trouble due to the recession who are looking for a way to escape their car payments, according to ABC News.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/suspicious-auto-insurance-claims-up-24-percent-from-2008-800439886.aspx Wed, 02 Mar 2011 21:39:18 http://www.allstate.com/insurance-industry-news/auto-insurance-news/baltimore-sheriffs-deputy-charged-in-road-rage-case-800439884.aspx Baltimore City Sheriff's Office deputy Michael Savage has been arrested and charged with two counts of first degree assault, second degree assault and reckless endangerment for allegedly pointing his gun at a motorcyclist, according to the Carroll County Times.

The motorcyclist told the news source he made an obscene gesture toward the officer, who he claims had illegally passed him on the highway. After he made the gesture again, the driver, who was later determined to be Savage, allegedly pointed a black handgun at the cyclist, and made a motion as if he was firing, the source said.

Had the alleged incident gone any further, it may have ended in tragedy. "Savage was wearing his Baltimore Sheriff's Office uniform and carrying a .40-caliber Glock handgun with one round in the chamber and 14 in the magazine, according to court documents," the source said.

Though nobody was injured as a result of this incident, it may serve as a reminder that even the most unlikely people may suffer from road rage. The sudden onset of anger while driving may result in various forms of violent crime and may even end in a fatal auto accident.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/baltimore-sheriffs-deputy-charged-in-road-rage-case-800439884.aspx Wed, 02 Mar 2011 21:34:44 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ohio-drivers-likely-uninformed-about-wiper-headlight-law-800439883.aspx Compliance is low on an Ohio law that requires drivers to turn on their headlights whenever they have their windshield wipers on, according to the Columbus Dispatch.

The news source did an independent investigation to support their claim. Standing out on the side of a major intersection during a rain shower, they counted 67 vehicles within five minutes that were not adhering to the rule. According to their estimates, that represented about 25 percent of traffic on the road. Some of the other 75 percent of drivers were only halfway compliant, having their parking lights on, but not their full headlights, the source said.

The law was implemented for safety purposes, according to city officials. "It makes drivers' vehicles as visible as possible during inclement weather. Drivers increase safety not just for themselves, but others as well. It helps drivers see oncoming vehicles," police Staff Lieutenant Tony Bradshaw told the news source.

Weather conditions frequently play a role in auto accidents by reducing visibility and causing slippery roads. Following safe driving practices, such as maintaining speed limits, and having adequate auto insurance are essential for those driving in inclement weather.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/ohio-drivers-likely-uninformed-about-wiper-headlight-law-800439883.aspx Wed, 02 Mar 2011 21:32:25 http://www.allstate.com/insurance-industry-news/auto-insurance-news/tips-for-avoiding-road-rage-800439882.aspx Road rage has played a role in a number of accidents and despite the risk of getting overly angry while driving, it seems many have a difficult time curbing their ire. Attorney Mark Bello has provided some tips on injuryboard.com that may be helpful for staying calm even in tense driving situations.

Drivers should not feel drawn in by confrontation and should not respond in-kind to signs of aggression, including being cut off. Bello recommends taking the nearest exit to remove yourself from the situation and pulling into the parking lot of a police station or heavily populated area if an angry driver pursues you.

Drivers may also avoid road rage by monitoring their driving to ensure they don't commit the common errors that anger others on the road. These include not signaling or allowing enough room when changing lanes, and tailgating other vehicles. Driver courtesy is essential and planning extra time to reach your destination may alleviate some of the anxiety you feel on the road, Bello also suggests.

Above all, if you feel threatened, contact the police. Road rage is not worth getting into a serious auto accident or risking your life.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/tips-for-avoiding-road-rage-800439882.aspx Wed, 02 Mar 2011 21:29:48 http://www.allstate.com/insurance-industry-news/auto-insurance-news/road-rage-attacker-publicly-apologizes-to-victim-800439881.aspx John Antonacci, a longtime professional driver, recently experienced road rage for the first time when he verbally attacked a woman after she honked at him while he was trying to switch lanes, according to the Quad City Times. However, what was truly unique is the way he responded to the incident.

Eaten away by guilt, which was further confounded by the fact that the woman had her two daughters in the car, Antonacci set out to apologize the best way he knew how - through the internet.

When he arrived home, he wrote the local newspaper an open letter to the woman "in the red car," giving his "most sincere apology," the paper reported.

"Instead of just ignoring you, I jumped out of my truck and started yelling and swearing at you. For that I am very sorry. You and your daughters didn't deserve that," Antonacci said in his letter.

Antonacci described the outburst as out of character for him, the paper said.

Road rage can come on quite unexpectedly and may result in drivers losing control, attacking fellow drivers or getting into car accidents, which will likely increase their auto insurance premiums.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/road-rage-attacker-publicly-apologizes-to-victim-800439881.aspx Wed, 02 Mar 2011 21:27:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/suspect-in-road-rage-accident-indicted-for-murder-800439879.aspx Chris North of Abilene, Texas, has officially been charged for the murder of 21-year-old Austin David, which allegedly took place during a road rage incident on February 9.

Prosecutors told the station that after both drivers exited their vehicles and engaged in an argument, North returned to his car and backed into David's vehicle, pushing it over the median, witnesses told the news source. He then allegedly exited his car holding a gun, approached David's vehicle and killed him, according to those who were present.

Sam Moore, North's attorney claims he fired in self-defense, and he has temporarily been let out of prison on $100,000 bond to await his trial. "Obviously, there are facts that the public doesn't know," Moore said.

This tragic incident has left David's family devastated, including his mother and two children, the station said.

David's mother told the news source that he had dreamed of becoming a police officer, where, ironically, one of his duties may have been promoting auto safety.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/suspect-in-road-rage-accident-indicted-for-murder-800439879.aspx Wed, 02 Mar 2011 21:25:35 http://www.allstate.com/insurance-industry-news/auto-insurance-news/winter-weather-sparks-arguments-and-anger-800439878.aspx Icy roads and darkness falling early can have a negative effect on anyone's mood. However, this year's frigid temperatures and unprecedented amount of snowfall may have negatively affected road manners as well, according to the Wall Street Journal.

Many areas in the south have had unexpected snowfall this winter season, leaving drivers who aren't used to slick roads potentially unprepared. However, there seem to be arguments occurring between southerners and northern transplants about who is really to blame for the winter accidents, according to the news source.

"These Southerners, they just freak out," Mike Quinn, a Dallas bar owner originally from Greensburg, Pennsylvania, told WSJ. 

Some southerners beg to differ. "It's just this running joke that we don't know how to drive in the snow, but it's the people from [the North] who are just flying down the roads and end up flying into other cars," Tim Langley from Marietta, Georgia, told the source.

These complaints seem to be part of a larger trend of winter blues. Anger toward people who don't clean snow off their cars before hitting the road is also among the gripes being expressed through different outlets. 

Though the issues vary, safety seems to be the underlying concern. To prepare for potential winter accidents, drivers should ensure their vehicles are sufficiently insured.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/winter-weather-sparks-arguments-and-anger-800439878.aspx Wed, 02 Mar 2011 21:16:47 http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-must-be-creative-to-attract-young-buyers-800438196.aspx Automakers are struggling to appeal to young drivers, according to National Public Radio, which reports manufacturers have to think outside of the box to reach today's youth.

Young drivers in their 20s are less likely to subscribe to car magazines or see the latest television advertisements, making it more difficult for auto companies to connect with that market. Plus, in today's world of social media and internet dominance, automakers have to hit multiple mediums to appeal to a wide variety of consumers.

"In order to reach the people you're trying to reach, you need to have a broad approach in terms of the media you consider, and a targeted approach based on finding where these people are," John Emmet, the global marketing manager for Ford, told the station.

For example, the radio station reported the Ford Focus has launched a world-wide ad campaign featuring extremely short commercials, a social media campaign and an internet television show.

The Detroit Free Press recently reported that auto manufacturers are concerned that the variety of gadgets, games and computer accessories now available to young adults is making them less interested in purchasing a new car.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/automakers-must-be-creative-to-attract-young-buyers-800438196.aspx Wed, 02 Mar 2011 09:57:01 http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-sales-challenged-by-high-tech-automobiles-800438161.aspx While the Toyota Corolla has been the world's top-selling small car for years, Businessweek reports that the company is beginning to lose out to competitors who are producing newer, feature-laden vehicles that appeal to consumers.

The Corolla managed to maintain its top spot in 2010, but]sales last year declined by 10 percent to approximately 266,000, only about 5,800 units ahead of the Honda Civic. Analysts say Corollas are still reliable, but its features are largely the same as they always have been compared to models from Ford, Honda and Hyundai that contain technology such as voice-activated controls and connections to computer networks.

"Corolla has always had a tough place in the market. It's never been a style leader," David Champion, director of automotive testing for Consumer Reports magazine, told Bloomberg. "The new cars coming out offer more style and content. They're really going to give Corolla a run for its money."

Production errors have also dampened Toyota's good name, with the company recalling more than 8 million vehicles over the last year due to problems like malfunctioning fuel pumps and sticking acceleration pedals. In response to Toyota's most recent recall, the National Highway Traffic Safety Administration announced it is redesigning the placement of car pedals to increase safety.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-sales-challenged-by-high-tech-automobiles-800438161.aspx Wed, 02 Mar 2011 09:49:32 http://www.allstate.com/insurance-industry-news/auto-insurance-news/seattle-lawmakers-target-unlicensed-chauffeurs-800437877.aspx Lawmakers in Washington State are putting unlicensed town-car drivers on notice: Get licensed, or face the consequences.

According to the Seattle Post-Intelligencer, there are a number of town cars in the city posing as taxi cabs, stealing business away from legitimate taxi and chauffeur operations. In order to legally serve as a state-recognized ferrying service, town cars and limousines must be registered and licensed with the Department of Licensing.

The paper reports that if the bill passes, it would give the city's Consumer Affairs Unit the same kind of authority that they have over the taxi industry. Senator Scott White told the paper the limousine industry at present is "essentially unregulated."

While the law would likely increase business for legitimate taxi drivers and town car operators, the paper reports it would also wind up costing these same companies more money in licensing fees to help pay for more enforcement.

In addition to operating without a license, the paper reports these same outfits often lack auto insurance as well. According to Washington State law, a motorist must carry an insurance identification card while driving that verifies proof of coverage.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/seattle-lawmakers-target-unlicensed-chauffeurs-800437877.aspx Wed, 02 Mar 2011 08:19:27 http://www.allstate.com/insurance-industry-news/auto-insurance-news/iii-seeks-to-end-common-auto-insurance-myths-800437870.aspx With access to the internet, consumers have never been better equipped to find the cheapest auto insurance quote. But since no one is perfect, the Insurance Information Institute knows there are a number of auto insurance myths that have fallen through the cracks. In light of this, the III is arming consumers further by dispelling some of these myths once and for all.

One of the more common myths is the notion insurance will cover a car if it's stolen, vandalized or damaged by environmental factors. While these can be covered, III says they're traditionally not automatic. Consumers must specify they want particular packages, in this case comprehensive and collision.

Another common myth is thinking you only need to buy the minimum amount of coverage that's required by state law. The state may not require a consumer to buy additional coverage, but because most accidents cost more than the minimum, the group says people often wind up paying more out-of-pocket expenses by default.

This situation is particularly relevant for Wisconsin residents, as the state legislature recently repealed a law which had increased minimum liability rates for drivers in the state.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/iii-seeks-to-end-common-auto-insurance-myths-800437870.aspx Wed, 02 Mar 2011 08:13:48 http://www.allstate.com/insurance-industry-news/auto-insurance-news/take-special-precaution-when-buying-insurance-for-vintage-cars-800436918.aspx Auto news and information site Automotivediscovery.com advised vintage-car owners to be aware of the differences between vintage car insurance and regular car insurance, and to keep those differences in mind when shopping for a policy.

The first major difference between these two types of auto insurances, the site says, is that vintage car insurance generally places a cap on how many miles the car can be driven in a year, since vintage cars may not be as capable of covering as many miles as a newer car.

Other considerations include storage location of the car is, its rarity, its year and model, , and how many miles are on the car.

Automotivediscovery.com recommends looking around to see what different policies allow for your particular vintage car. The internet is a good way to compare policies, but the site warns that it may be necessary to have an appraiser to evaluate the car.

Because vintage cars can require more maintenance than newer cars, and are often more prone to damage, it is crucial that they have the proper insurance policy in place. http://www.allstate.com/insurance-industry-news/auto-insurance-news/take-special-precaution-when-buying-insurance-for-vintage-cars-800436918.aspx Tue, 01 Mar 2011 17:20:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-recalls-another-21-million-cars-800435520.aspx Toyota has announced yet another recall of Lexus and Toyota automobiles due to floor mats that may jam against pedals and cause unintended acceleration.

The company is recalling 2.1 million vehicles only a year after doing the same for millions of cars between 2009 and 2010 for a similar issue. This time, Toyota announced six models manufactured between 2003 and 2010 - depending on the vehicle - may have floor mats that could wedge underneath the car pedals and easily cause an accident.

The Lexus GS, Lexus RX, Lexus LX, Toyota Highlander, Toyota 4Runner and Toyota RAV4 have all been affected by the issue. While the company said the recall is voluntary, some federal regulators have claimed they requested the action.

In response to the federal investigation on Toyota vehicles , the National Highway Traffic Safety Administration said they plan on redesigning the placement of the brake and acceleration pedals in automobiles. The initiative will hopefully reduce acceleration mishaps and prevent more people from getting into an accident that may raise their car insurance rates.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/toyota-recalls-another-21-million-cars-800435520.aspx Tue, 01 Mar 2011 10:05:41 http://www.allstate.com/insurance-industry-news/auto-insurance-news/potential-ways-to-reduce-your-monthly-auto-insurance-rates-800433574.aspx Investopedia says there are many things that drivers can do before they buy a new car to help reduce the monthly cost of auto insurance premiums.

The first thing the paper advised doing was to select cars that you are considering buying, and to call your insurance company ahead of time to find out what the rates for each car would be. If they're all cars you're equally interested in, you can simply select the car with a lower premium.

Working with only one insurance company, as well, can lead to lower premiums, the source says. Many insurance companies offer a discount for customers who have car, homeowners or other insurance policies with them.

The paper also suggested everyday practices drivers can exercise to reduce their rates, including driving less in order to take advantage of any low-mileage discount their company may offer. The source also points out that causing an accident can raise your rates significantly, so it's important to practice safe driving skills. http://www.allstate.com/insurance-industry-news/auto-insurance-news/potential-ways-to-reduce-your-monthly-auto-insurance-rates-800433574.aspx Mon, 28 Feb 2011 16:03:19 http://www.allstate.com/insurance-industry-news/auto-insurance-news/texas-man-pulls-gun-in-fit-of-road-rage-800429929.aspx When tempers flare on the roadways, it doesn't take much for a dispute to get past the point of no return. Texas authorities recently responded to an incident where a motorist allegedly pulled a gun on another motorist.

According to the Tyler Police Department, authorities received a call Saturday evening from a motorist who said he'd been threatened with a gun by a fellow driver after he allegedly cut him off in traffic. After that, the motorist began following his attacker.

Police say they were able to track down the gun-wielding man, Craig Ashmore, and arrested him for aggravated assault.

While police were able to track Ashmore because the motorist followed him, police say he should have let them handle the situation on their own.

"Don't take it into your own hands," said Don Martin, with the Tyler Police Department in an interview with television station KETK. "Just that little bit of road rage is certainly not worth losing your life over."

While no one was injured, road rage typically leads to accidents and increasing auto insurance premiums. Fourteen states have passed aggressive driving laws that aim to keep road rage to a minimum.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/texas-man-pulls-gun-in-fit-of-road-rage-800429929.aspx Fri, 25 Feb 2011 15:01:34 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ohio-driver-charged-after-heated-road-rage-incident-800428865.aspx Joseph Armelli, 54, was charged with inducing panic and aggravated menacing after he threatened another driver in a road rage incident in Columbia Township, according to the Chronicle-Telegram.

The local paper says Wade Emmett, 22, was driving a tow truck when he turned onto Royalton Road and cut off Armelli, who was driving a Ford F-150, says the local newspaper. Armelli began to tailgate Emmett, pulling in front of him and slamming on his brakes.

Eventually, the paper reports, the two pulled over, and Armelli pulled a gun out of his car and began to point it at Emmett and Emmett's father, who had been driving past the scene.

The police were called when a nearby woman saw Armelli pull the gun, and though officials told the paper there were no bullets in the chamber, there were still five blanks in the gun's magazine.

Though this incident is an extreme case, road rage that leads to reckless driving is a common cause of car accidents that can easily raise car insurance premiums. http://www.allstate.com/insurance-industry-news/auto-insurance-news/ohio-driver-charged-after-heated-road-rage-incident-800428865.aspx Fri, 25 Feb 2011 10:15:06 http://www.allstate.com/insurance-industry-news/auto-insurance-news/general-motors-recalls-over-44000-cadillacs-due-to-rear-suspension-defect-800428719.aspx General Motors filed a recall on more than 44,000 2009-2010 Cadillac CTS cars with the National Highway Traffic Safety Administration because of a problem with the rear suspension the manufacturer feared could cause drivers to lose control of their cars.

A wax coating on part of the rear axle could cause bolts in the back of the car to loosen, GM told the NTHSA, which would result on a loud clanking noise close from behind the driver's seat.

If the bolt came loose entirely, however, the rear wheels could spin inward or outward, and the driver would be unable to regain control of their motion, potentially leading to a car accident.

Dealerships have been instructed to clean off the wax from the affected areas and install two replacement jam nuts, all of which will be done free of charge to Cadillac customers.

Car accidents or damages caused by design defects in a car model are covered by auto insurance. If an accident is caused by a defect, the insurance company will pay the claim, and then go to the manufacturer to be reimbursed. http://www.allstate.com/insurance-industry-news/auto-insurance-news/general-motors-recalls-over-44000-cadillacs-due-to-rear-suspension-defect-800428719.aspx Fri, 25 Feb 2011 09:37:24 http://www.allstate.com/insurance-industry-news/auto-insurance-news/maine-man-arrested-two-years-after-road-rage-incident-800427132.aspx A man that lost his arm and 30 spent days in jail after a road rage incident is in trouble with the law again.
According to the Cumberland County Sheriff's Office in Standish, Maine, Douglas Tenczar was arrested for driving while under the influence of alcohol on Wednesday. His blood-alcohol level was .22 and because he was in possession of alcohol, he violated the terms of his probation set in 2008, when a road rage incident involving three teenage girls occurred.

In 2008, the Portland Press Herald reports Tenczar was arrested and shot by police after he threatened three girls with a handgun and aimed a shotgun at officers when they went to investigate the incident. Police shot him five times at the time, and due to the severity of his injuries, it had to be amputated.

With road rage being among the most common causes of car accidents, anger behind the wheel can affect your car insurance rates. One accident can lead to an insurance claim, and that one claim can send premium rates skyward.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/maine-man-arrested-two-years-after-road-rage-incident-800427132.aspx Thu, 24 Feb 2011 15:11:56 http://www.allstate.com/insurance-industry-news/auto-insurance-news/lawmakers-may-mandate-mileage-based-auto-insurance-discounts-800417125.aspx
Allowing motorists to pay for insurance premiums based on how often they drive has gained traction around the country as an affordable option some insurers provide. But under a proposed law in Washington State, insurers would no longer have an option - they'd be required to offer such a plan.

State Senator Phil Rockefeller has introduced legislation that would require auto insurers to lower rates by giving companies operating in the state one of two options - determine premium rates based on how often someone drives, or offer a discounted premium plan for people that drive less than 5,000 miles annually.
While consumers are largely in favor of the law, representatives from several insurance companies told the Kitsap Sun they are opposed to it. They told the paper they don't oppose offering insurance discounts, but they are against being required by law to offer them.

With auto insurance rates on the rise in many states, and high gas prices causing many to cut down their driving, many more consumers may soon qualify for these discounts.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/lawmakers-may-mandate-mileage-based-auto-insurance-discounts-800417125.aspx Mon, 21 Feb 2011 08:19:40 http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-insurance-crackdown-in-florida-800417111.aspx Some Florida motorists pulled over by police officers are being asked for something in addition to their license and registration on Wednesday - proof of an auto insurance policy.

According to the Associated Press, 17 auto insurance companies joined the Broward County Sheriff's Office to try to crack down on motorists who don't carry auto insurance. Officers stopped cars as usual and called insurance agents for verification of the drivers' insurance. Agents had received more than three dozen calls by 3 p.m., claimed the AP.
According to the Insurance Research Council, Florida has the fifth-highest rate of uninsured motorists in the country. New Mexico has the highest rate at 29 percent, with Mississippi at 28 percent. Mississippi lawmakers tried to pass legislation recently, which would have increased fines for uninsured motorists, but it failed to garner enough votes for passage.

Auto insurance rates are increasing in many sections of the country, including Florida, which may be due to the high rate of auto insurance fraud. Florida has had the highest rate of fraudulent claims in the country for the past three years, according to the National Insurance Crime Bureau.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/auto-insurance-crackdown-in-florida-800417111.aspx Mon, 21 Feb 2011 08:15:58 http://www.allstate.com/insurance-industry-news/auto-insurance-news/optional-coverage-essential-to-cover-seasonal-hazards-800416294.aspx The New York State Insurance department has outlined different forms of optional insurance that may come in handy in the event of accidents relating to seasonal road conditions. As springtime approaches, drivers should consider how some of these coverages could save them money in the long run.

Just as humans come out to enjoy the warmer weather, animals also tend to appear from their nooks during the spring and begin reproducing. As deer, moose, geese and other animal populations expand, they are more frequently seen crossing roads and presenting a hazard to unsuspecting drivers.

These types of accidents can be extremely costly and hazardous. Statistics show that one quarter of animal-vehicle collisions cause human injury, and that this type of accident results in $1.1 billion worth of vehicle damages per year in the United States, according to the Insurance Institute for Highway Safety. However, the expenses incurred by hitting deer and other animals can be mitigated with optional comprehensive physical damage coverage, according to the New York State Insurance Department.

Spring storms may also result in falling objects, such as wayward tree limbs blown by strong winds or hail. This type of hazard is also covered under comprehensive physical damage coverage, which is also beneficial during the winter, when falling ice is a concern, the Department says.

Though the above hazards fall under the scope of physical damage, another form of optional coverage may help with other popular springtime driving dangers.

Potholes become more prevalent in the springtime because water from thawing snow and rainfall seeps into pavement cracks, then freezes on colder days. When the water rethaws, it changes the road structure and may cause it to cave-in, according to the road repair firm Emcol.

Though some potholes may not appear threatening, damages caused by hitting one can range from being fairly mild to disabling the vehicle. According to AAA, accidents caused by potholes result in $5 billion in automobile repair costs per year.

In order for drivers to ensure their vehicle is covered if damaged by a pothole, they would need optional collision coverage according to the New York State Insurance Department.

April showers also present the risk that a driver may skid out of control and hit a parked car. For the owner of that parked vehicle, optional collision coverage would prevent them from paying for all of the damages for this type of accident, where they weren't present or at-fault in any way, even if the other driver isn't found.

There are some other springtime hazards that are difficult to prepare for, including those occurring at road construction sites. As nicer weather approaches, many construction companies get to work repairing or expanding roads. It may be in a driver's best interest to be very cautious around road work sites, as an accident in such an area may result in an insurance premium increase. However, if road work is improperly marked, drivers may have some form of legal recourse to cover damages to their vehicle.

Though many may forgo optional coverage as a way to save money on their monthly insurance premiums, it can potentially cost more than they’re saving if an accident occurs.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/optional-coverage-essential-to-cover-seasonal-hazards-800416294.aspx Sun, 20 Feb 2011 11:54:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/rain-blamed-for-increased-accidents-in-santa-rosa-800416293.aspx Valentine's Day rains in Santa Rosa, California may have led to an increase in auto accidents throughout the day, according to The Press Democrat.

Between 6 a.m. and 4 p.m. that day, California Highway Patrol reported 30 crashes in the area, which resulted in significant traffic delays, the source reported. They believe many of the crashes were the direct result of the 0.7 inches of rain that fell, following a period of dry weather.

Officer Jon Sloat hinted to the source that speed was also a major factor, saying it seemed as if "people have forgotten that they need to slow down in the rain."

Among the accidents were a three-car head-on crash that left at least one person injured, and another incident in which a Jeep flipped over and landed upside-down in a creek.

"People should drive slower in wet and windy conditions and turn on the headlights to improve visibility, particularly when the windshield wipers are in use," the source warned.

As more downpours begin to occur during the spring, safe driving practices and adequate auto insurance are essential for drivers to protect themselves on the road.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/rain-blamed-for-increased-accidents-in-santa-rosa-800416293.aspx Sun, 20 Feb 2011 11:47:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/how-to-handle-driving-in-heavy-fog-800416292.aspx As springtime arrives, drivers are faced with weather hazards such as fog, which may be especially dangerous in the evening when it is already more difficult to see. Some areas in the country have already begun to experience dense fog, and police have put together some recommendations that may help you avoid a fog-related accident. 

If you encounter heavy fog, you should pay attention to your speedometer and "slow down to a lesser speed," Sergeant First Class Eddie Edwards told WALB-TV in Georgia, where there have been many fog-related incidents lately. This is because a "visual illusion" created by fog may make you feel like you are driving slowly when you're not, the source says.

The Pennsylvania Department of Transportation also recommends using your low-beams, not high-beams, which is a frequent misconception among drivers. "High beam settings create glare and reduce visibility," according to PennDOT.

Other recommendations from both sources include increasing your following distance, trying to use sounds to judge your environment, and, in very dense fog, stopping completely until it lifts. An accident may not only risk your life, but may also lead to an increase in your auto insurance premiums.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/how-to-handle-driving-in-heavy-fog-800416292.aspx Sun, 20 Feb 2011 11:42:10 http://www.allstate.com/insurance-industry-news/auto-insurance-news/driving-while-using-a-cell-phone-will-add-points-to-ny-drivers-licenses-800416288.aspx Though New York State already has a relatively comprehensive set of laws concerning driving while using handheld electronic devices, the penalties will now become even steeper, according to state officials.

The New York State Department of Motor Vehicles is enacting a new law that will add two points to a driver's license if they are caught driving while using a cell phone. The infraction has been reclassified as a moving violation, triggering the additional license points. Though hands-free devices are still approved, any device that may distract the driver by requiring manual activation is considered illegal.

In addition to the two points, drivers still face a fine of up to $100 for talking and $150 for texting while driving, plus up to $85 in surcharges and fees for both violations. The sole caveat to the law, according to the New York Department of Motor Vehicles is cell phone use "to call 911 or to contact medical, fire or police personnel about an emergency."

License points lead to increases in auto insurance premiums and, if a driver racks up a high tally, may even lead to license suspension in some areas.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/driving-while-using-a-cell-phone-will-add-points-to-ny-drivers-licenses-800416288.aspx Sun, 20 Feb 2011 11:36:17 http://www.allstate.com/insurance-industry-news/auto-insurance-news/wisconsin-senate-approves-lowering-auto-insurance-minimums-800411447.aspx What took 20 years for Wisconsin Democrats to approve took about a month and a half for Wisconsin Republicans to repeal.

By a vote of 25-7, the state Senate approved a bill lowering Wisconsin auto insurance minimums for motorists to pre-2009 levels. The minimums hadn't increased for 20 years, but when the congress was in Democrats' control, the legislature voted to increase liability coverage for the injury or death of one or more people in 2009. Though six Democrats voted to decrease minimums this time, the bill was largely supported by Republicans, who obtained the majority this past November.

The minimums would be rolled back six months after the state's Republican governor, Scott Walker, signs the bill.

Republicans say the decrease in minimums should lower premiums for motorists.

The minimum amount of auto insurance coverage a state requires a motorist to have is one of the factors providers take into consideration when determining premium rates. Other factors include the driver's credit history, marital status and how often he or she has been involved in an accident.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/wisconsin-senate-approves-lowering-auto-insurance-minimums-800411447.aspx Thu, 17 Feb 2011 08:31:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/mississippi-may-tighten-auto-insurance-law-800411436.aspx Mississippi lawmakers are debating instilling tougher laws in order to ensure drivers across the state are covered by auto insurance, reported WLOX News.

A bill that is currently being analyzed by the state House of Representatives would use random computer checks to make sure drivers have insurance. Representative Hank Zuber told the news station the insurers would provide the system with information about whether specific policies have lapsed, allowing the state to deliver citations to those drivers who no longer have coverage. Another proposal, the station reported, would require Mississippi drivers to show proof of insurance when purchasing a car tag.

While Mississippi law technically requires all motorists to own auto insurance, the report said many drivers get around the law by temporarily buying coverage, canceling the policy and then saving the proof of insurance card to show police officers if they are pulled over.

New Hampshire is currently the only state in the country that does not require drivers to purchase car insurance, although drivers must cover the costs of damages to an injured party in the event of an accident.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/mississippi-may-tighten-auto-insurance-law-800411436.aspx Thu, 17 Feb 2011 08:26:50 http://www.allstate.com/insurance-industry-news/auto-insurance-news/simulator-trains-police-for-chases-in-adverse-conditions-800410548.aspx Officers at the Rowan County sheriff's office will be trained in preparation for chases using the realistic simulator Patrol Slim III by L3 Communications, according to the Salisbury Post.

The office requested the simulator to prepare its officers for pursuit driving, which entails driving at high speeds while still maintaining an overall awareness of surroundings and other drivers on the road and being prepared for potential emergency situations.

Besides hazards such as tire blow-outs and unexpected pedestrians or stray animals, officers are put in situations of adverse weather conditions, the Post said. With the click of a button, the weather in their virtual surroundings can change to heavy snowfall, dense fog, black ice or a tropical downpour. Officers may also be exposed to a thunderstorm, to train them to concentrate through loud thunder and flashes of lightning, according to the source. 

Unfortunately, regular drivers usually do not have access to materials that can expose them to the natural driving hazards of some weather conditions before they encounter them in real life. The only preparations against weather-related accidents are safe driving habits and auto insurance, to protect the driver and their vehicle should they encounter poor weather conditions while on the road.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/simulator-trains-police-for-chases-in-adverse-conditions-800410548.aspx Wed, 16 Feb 2011 21:31:19 http://www.allstate.com/insurance-industry-news/auto-insurance-news/clogged-storm-drains-cause-flooding-in-connecticut-800410547.aspx In East Lyme, Connecticut, city officials are now concerned about storm drains that are clogged with snow, leaving the water runoff with no place to go, according to WTNH-TV.

The station reported the clogged snow drains, in combination with heavy rains that later hit the area are resulting in flooding. Levels of water reached an ankle-deep level in some parts of the city and have resulted in unsafe driving conditions.

"I just watched a large truck hydroplaning up the street for about 300 feet, which I'm sure was a shock to the driver," Dick Morris from East Lyme Emergency Management told the news source.

The city's Emergency Management crew has been overwhelmed by flooding reports. Town officials, now working to pump the water away, told WTNH the problem may get worse as March approaches.

Since this winter had record-breaking snowfall across the country, this upcoming spring will likely result in slick roads filled with water from the melting snow. It is important for drivers to have excellent auto insurance coverage, since they will face a higher risk of hydroplaning and other water-related accidents.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/clogged-storm-drains-cause-flooding-in-connecticut-800410547.aspx Wed, 16 Feb 2011 21:29:45 http://www.allstate.com/insurance-industry-news/auto-insurance-news/boston-dpw-to-try-out-new-pothole-iphone-app-800410546.aspx As winter turns to spring, many potholes develop in Boston roads, costing the city a reported $2 million per year to repair according to the Boston Globe. However, a new iPhone app may help the city intervene early and repair developing potholes before they become a more serious problem.

The app, called Street Bump, is by the same app developers that created the Citizens Connect application, which allows residents to report community problems such as graffiti and speed bumps to the Department of Public Works.

This new app, which is still in development, uses the popular smart phone features of accelerometers, which measure the unit's movement, and Global Positioning System software, to measure the location of the unit. The phone would sense when a car hits a bump in the road, measure the location of the bump and instantly report it to the DPW for them to inspect and make any necessary repairs.

"We're constantly looking for new ways to make sure that roads are as smooth as they possibly can be, and we believe that Street Bump is a first-in-the nation app," Chris Osgood from the mayor's new Office of Urban Mechanics told the Globe.

Potholes, which arise as a result of changing weather conditions, may be a major hazard for unsuspecting drivers, especially those with insufficient auto insurance coverage.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/boston-dpw-to-try-out-new-pothole-iphone-app-800410546.aspx Wed, 16 Feb 2011 21:28:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/electric-car-owners-may-pay-more-for-insurance-800410541.aspx There are many factors that may result in a high cost of insurance coverage for up-and-coming eco-friendly electric vehicles, according to the website AllCarsElectric. 

The first factor mentioned is that electric vehicles are typically more expensive; therefore, they may cost more to insure.

Some may be able to mitigate the car price because of electric vehicle purchase incentives. However, even if the vehicle is purchased at a significantly discounted price, the price to replace it will remain the Manufacturer's Suggested Retail Price, the source said, which is what insurance costs are based off of.

Another factor is that the cost of replacing internal car parts such as batteries, may be higher, according to the site, because of the high demand and low supply of electric vehicles. Finally, the site says the lack of existing models to determine the depreciation rate of electric vehicles makes it tougher for insurers to accurately determine a damaged vehicle's value.

Although these factors may contribute to higher insurance rates, electric cars may be a worthwhile investment and drivers can employ typical methods for ensuring they have the lowest premium rate available, including getting multiple quotes and driving safely.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/electric-car-owners-may-pay-more-for-insurance-800410541.aspx Wed, 16 Feb 2011 21:12:58 http://www.allstate.com/insurance-industry-news/auto-insurance-news/massachusetts-storms-leave-insurers-with-their-hands-full-800410540.aspx Insurance claims are up in the Bay State following an unprecedented amount of January snowfall in some areas, according to MetroWest Daily News.

The winter storms caused a spike in the number of claims for problems ranging from fender benders, to a car that was totaled when a heavy chunk of ice fell from a roof onto the vehicle, the source said.

Insurers told the paper they are having the highest rates of claims seeking compensation or repairs in about 15 years. One insurer told the paper it had to double the amount of licensed adjusters working within the state by bringing in employees for surrounding areas. 

Icicles falling off homes, in addition to snow, have been contributing to the problem. "I had several where it went through the windshield of customers' cars, several on the roofs, on the hood," a local insurance agency owner told the news source.

According to State House News Service, the state's $59 million budget for snow and ice removal had almost run out. 

If Massachusetts is unable to extend the budget and cannot afford to keep the roads clear, even more car accidents may ensue.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/massachusetts-storms-leave-insurers-with-their-hands-full-800410540.aspx Wed, 16 Feb 2011 21:10:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/spencer-barn-collapse-may-have-damaged-cars-boats-rvs-800410539.aspx Organizers of the annual Spencer Fair in Massachusetts are devastated by the collapse of the roof of a barn used in the fair, according to CBS News. However, the barn is not the only casualty of the incident. The falling roof possibly damaged RVs, cars and boats that were being stored inside of it. 

Some of the 140 vehicles, whose owners had rented the space inside the barn as winter storage, were covered with debris when one half of the barn's roof caved in due to the pressure of ice and snow accumulations, CBS said.

Fair organizers have begun contacting the owners of the vehicles, but are unsure of the extent of the damages, since the fire department has declared the barn unstable, and, thus, unsafe to enter.
The director of the storage space told the news source the barn is insured and some of the vehicles owners have separate insurance, but they all signed a damage waiver before agreeing to rent the space.

This accident serves as a reminder to drivers that auto insurance is not only essential for protecting cars while they are on the road. Vehicles are still vulnerable to damages, even when the motor is off.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/spencer-barn-collapse-may-have-damaged-cars-boats-rvs-800410539.aspx Wed, 16 Feb 2011 21:09:12 http://www.allstate.com/insurance-industry-news/auto-insurance-news/uninsured-motorist-coverage-can-be-important-800410538.aspx Choosing an auto insurance policy can be complicated, given the various different options available and the common desire to avoid paying for unnecessary coverage. However, uninsured or underinsured motorist coverage is not a form of coverage policyholders should forgo in an effort to save money, according to a recent post by the website TheTruthAboutInsurance.

Uninsured motorist coverage can protect drivers when they are in an accident involving an uninsured vehicle. Many drivers may not realize that even when they are not at fault in an accident, repairs to their vehicle can only be covered assuming the other driver is properly insured. Even if an at-fault driver has insurance, but is lacking in specific coverage areas or amounts, the innocent driver may wind up stuck. 

Even the option of suing the other driver for the related expenses may not be lucrative, according to the post. "If they don't have insurance, which is mandatory in most states, what are the odds of seeing any money via a lawsuit?" the author says.

According to the Insurance Research Council, nearly one in six drivers in the U.S. may be without auto insurance.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/uninsured-motorist-coverage-can-be-important-800410538.aspx Wed, 16 Feb 2011 21:06:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-law-may-force-nebraskans-to-increase-auto-insurance-coverage-800410534.aspx Soon Nebraska residents may have to shell out more money to insure their vehicles. State Senator, Steve Lathrop, has proposed a bill that would double the amount of minimum liability insurance coverage that the state currently requires drivers to have.

Under Senator Lathrop's bill, liability insurance coverage amounts would go from $25,000 per person, $50,000 per occurrence and $25,000 for property damage, to $50,000, $100,000 and $50,000, respectively.

The reason for this increase is the widening gap between coverage and actual personal injury expenses resulting from an accident, Lathrop said. "This is all tied to the cost of medical care. The cost of medical care is significantly greater than it was just 10 years ago,” he said.

Those in favor of the bill believe the potential increase in monthly premium payments is relatively small and will not result in more uninsured drivers who forgo policies to avoid paying more per month, as opponents suggest.

Other states, such as Wisconsin, have taken opposite measures, voting to rollback the required amounts of auto insurance liability coverage, which had been increased in 2009.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-law-may-force-nebraskans-to-increase-auto-insurance-coverage-800410534.aspx Wed, 16 Feb 2011 21:00:31 http://www.allstate.com/insurance-industry-news/auto-insurance-news/nys-idc-plans-to-crack-down-on-car-insurance-evasion-800410531.aspx Auto insurance fraud is a major issue in New York and one legislative group plans to do something to stop it. The New York State Senate's Independent Democratic Conference has proposed a set of new laws to help tackle the statewide problem of auto insurance evasion. 

These proposals follow a 23-page report released by the group, listing statistics showing the detrimental impact that auto insurance fraud is having on the state. Not only did auto insurers report a 20 to 50 percent increase in auto-evasion cases in 2009, but that it resulted in a loss of millions of dollars from registration fees and other revenues to the state.

One aspect of the bill includes using the State Police Motor Vehicle Enforcement Account to provide $1,000 to $5,000 awards to anyone that provides law enforcement with information that leads to the arrest and conviction of people involved in insurance fraud.

Some recommendations of the council included making forgery of insurance papers a felony charge, creating a task-force to deal with auto insurance evasion and granting the state superintendent expanded power to investigate auto insurance fraud cases.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/nys-idc-plans-to-crack-down-on-car-insurance-evasion-800410531.aspx Wed, 16 Feb 2011 20:55:33 http://www.allstate.com/insurance-industry-news/auto-insurance-news/texas-lawmakers-may-cancel-fund-but-not-drivers-payments-800410527.aspx One of the many proposals that will stand before the Texas House and Senate is a bill cancelling the Texas Automobile and Theft Prevention Authority. However, drivers in the state may still be charged the $1 fee, through their auto insurers, that was formerly used to fund the organization, according to The Texas Tribune. 

The agency, opened nearly 20 years ago, was designated to award grants to law enforcement agencies intended to fund the investigation of auto thefts and break-ins. 

However, despite a proposal to close the agency, state lawmakers intend to continue to charge Texans for the agency's operation, and redirect the funds towards the state budget deficit, the paper says.

Those angered over this potential "misuse of the fee" are also concerned by the possibility it will lead to an increase in insurance rates, due to a hike in thefts and burglaries as the result of less funds being directed towards their prevention. Under this reasoning, Texas drivers may be left paying higher premiums in addition to a $1 fee for an agency that doesn't exist, the Tribune argued.

Though insurance rates in Texas have been declining, according to one insurance quote provider, the median auto insurance premium in Texas is $6 per month higher than the national average.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/texas-lawmakers-may-cancel-fund-but-not-drivers-payments-800410527.aspx Wed, 16 Feb 2011 20:46:33 http://www.allstate.com/insurance-industry-news/auto-insurance-news/how-to-save-on-car-insurance-800410526.aspx Just because auto insurance is a must, doesn't mean drivers should have to pay an arm and a leg for quality coverage. Bankrate.com has provided some tips that will help drivers save on their policies.

The first suggestion for those with good credit is to consider switching insurers. Drivers should research other companies by asking for feedback from family members and friends on their insurers. Certain states also have bureaus that keep records on complaints filed for specific companies, says Bankrate.com. If the company has poor reviews stating they do not handle claims well, it may not be worth switching to them, even if they are inexpensive.

Drivers should also uncover potential car insurance discounts and their eligibility. Some insurers even give loyalty discounts for staying with a company for a significant amount of time, so not switching companies may have financial benefits as well, according to the site.

One additional way to save money is to raise the deductible. However, the site recommends drivers only do so once they have saved enough money to cover the payment in the event of an accident.

By following these tips, drivers may be able to experience long-term savings while still having sufficient auto accident protection.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/how-to-save-on-car-insurance-800410526.aspx Wed, 16 Feb 2011 20:44:39 http://www.allstate.com/insurance-industry-news/auto-insurance-news/yolo-county-to-fight-sacramento-crash-tax-800410522.aspx Yolo County supervisors are opposed to the tax-crash implemented by neighboring city Sacramento and believe it could hurt their residents, according to an article in the Daily Democrat. 

The tax, which is the result of an ordinance passed by the city's council last week, would charge those who are involved in accidents within the city the cost of fire fighter response to the scene, a fee that averages around $495, but could be higher, according to the paper. Liability would be decided by auto insurance companies and the taxes would likely be billed through them as well.

Much of the anger in regards to the tax is not due to the concept itself, but is because the rule would not be applied to Sacramento residents. "The idea of only charging people outside of your county and not your residents is wrong," Yolo County board chairman Matt Rexroad told the Democrat.

Those in other areas throughout California may not be so thrilled about the tax either. According to a poll conducted by the Insurance Information Network of California, only 29 percent of Californians are in support of so-called emergency accident fees.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/yolo-county-to-fight-sacramento-crash-tax-800410522.aspx Wed, 16 Feb 2011 20:38:36 http://www.allstate.com/insurance-industry-news/auto-insurance-news/city-prepares-roads-for-spring-during-brief-winter-storm-break-800406531.aspx Some areas that have been ravaged by winter storms are now experiencing an unexpected period of mild weather. Officials in Bridgeport, Connecticut, are taking advantage of this break in storms to fill potholes in local roads before spring weather makes them worse, according to the Bridgeport News.

The local Public Facilities Department is actively looking for developing potholes and patching them as they are found, the source says. They are also following up on pothole reports they receive through their Citizen Service phone number and website. So far, they have found some road areas in dire need of immediate repair.

According to the report, the city has used 80 tons of cold patch, the material used to repair the potholes, since last December, and has recently ordered more. The extreme weather may be to blame for the extent of the damages. "Mother Nature has wreaked havoc on our streets," Mayor Bill Finch told the news source.

Repairing potholes is essential, since they can potentially cause car accidents. Anyone who lives in an area with roads that are severely impacted by the weather should ensure they have adequate auto insurance coverage and keep an eye out while driving.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/city-prepares-roads-for-spring-during-brief-winter-storm-break-800406531.aspx Tue, 15 Feb 2011 11:56:59 http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-33-million-in-false-electric-vehicle-credits-dispersed-800405929.aspx A recent report by the U.S. Treasury Department discovered thousands of Americans falsely claimed a $7,500 tax credit toward the purchase of a plug-in electric vehicle during the first half of 2010.

According to the report, almost 13,000 people tried to scam the government by claiming they bought an electric vehicle, amounting to almost 20 percent of all the credits granted and totaling about $33 million.

The agency found that prisoners and even some Internal Revenue Service employees were among those making fraudulent claims, many of which were used to buy gas-guzzling vehicles such as the Cadillac Escalade and Hummer H3.

The IRS said it is "taking aggressive steps to recapture the credits people erroneously claimed."

Soon there may be even more incentives to purchase electric or hybrid cars, as President Barack Obama recently said in the State of the Union that the country aims at having one million electric cars on the road by 2015. http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-33-million-in-false-electric-vehicle-credits-dispersed-800405929.aspx Tue, 15 Feb 2011 10:19:33 http://www.allstate.com/insurance-industry-news/auto-insurance-news/what-car-insurance-costs-over-a-lifetime-800405471.aspx For anyone who's ever wondered how much of their money goes toward car insurance payments over your many years behind the wheel, the answer may surprise you.

According to Insurance.com, the average American will pony up approximately $84,388 in car insurance payments over the course of their lifetime. That's more than what it would have cost to buy a median-priced home in the central Florida city of Ocala in December 2010, with $2,188 to spare, according to Florida Realtors.

The website added that the total cost of car insurance for the average driver is also more than two years of average college tuition, or a monthly subway pass in New York City for 60 years at today's prices.

Despite it costing the average driver thousands of dollars over their life, it's still necessary to have in case an accident occurs, because having insurance can help pay for repairs or medical bills, which could end up costing even more.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/what-car-insurance-costs-over-a-lifetime-800405471.aspx Tue, 15 Feb 2011 08:17:06 http://www.allstate.com/insurance-industry-news/auto-insurance-news/mississippi-lawmakers-crack-down-on-uninsured-motorists-800405457.aspx
According to the Insurance Research Council, Mississippi ranks second among states with the highest uninsured motorists. Lawmakers are hoping that rate will be lowered with the passage of new legislation.
The Sun Herald reports Mississippi state representatives will vote on a bill allowing law enforcement officials to randomly check if a motorist carries auto insurance. Mississippi has long required people to purchase a car insurance policy, with liability coverage at the very least, but lawmakers say the law was largely unenforceable.

In an interview with the paper, Representative Hank Zuber said the new legislation will make offenders pay more than the $500 they were forced to pay prior to this bill. Further, he said the bill "stand a very good chance" of passing, as approximately half of the House's members are co-sponsors.

Should it pass, the new law could be enforced starting next year, according to the paper.

Almost every state requires motorists to carry auto insurance, the sole exception being New Hampshire. Penalties for not carrying auto insurance vary from state to state, but they could include fines, penalties, driver's license suspension or impoundment of the vehicle.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/mississippi-lawmakers-crack-down-on-uninsured-motorists-800405457.aspx Tue, 15 Feb 2011 08:11:56 http://www.allstate.com/insurance-industry-news/auto-insurance-news/study-fresno-is-americas-drunkest-city-800395862.aspx With the Super Bowl passing, arguably one of the biggest days of the year for alcohol consumption, patrol officers no doubt had their eyes peeled for signs of drunk driving. And if the latest study on the country's drunkest cities has any validity, they were particularly vigilant in California.

According to information gathered by researchers from Men's Health magazine, Bakersfield, Riverside and Fresno, California, rank among the country's 10 drunkest cities, Fresno being the runaway leader.

The magazine came to their conclusions by assessing death rates from alcoholic liver disease, the number of arrests made for drunk driving, the number of people who admitted to binge drinking last month and the severity of DUI convictions. Fresno led the nation in every category.

The data from the study was collected from the CDC, FBI and Insurance Institute for Highway Safety.

Auto insurance companies take DUI convictions seriously, and premiums can rise drastically following a conviction. According to the Insurance Information Institute, there is an alcohol-related traffic fatality ever 48 minutes.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/study-fresno-is-americas-drunkest-city-800395862.aspx Wed, 09 Feb 2011 14:23:50 http://www.allstate.com/insurance-industry-news/auto-insurance-news/simple-steps-can-help-parents-find-affordable-car-insurance-for-teens-800391856.aspx Receiving a driver’s license is one of the first major steps leading to adulthood, and is a monumental event in a teenager’s life. While parents also share in the excitement, it may be slightly overshadowed by the costly car insurance payments  that come with their son’s or daughter's ability to get behind the wheel.

For teens who are licensed but do not have their own vehicle, experts recommend that parents add them to their own policy as an occasional driver. While MSN Money reports adding a young driver can increase monthly premiums by 50 to 200 percent, rates are significantly higher for teens that are listed as the principal driver on their own policy.

Divorced parents need to be particularly careful about how they insure their teen driver, according to insure.com. Different insurers may have varying regulations for insuring a young driver who splits his or her time between two homes. Some suggest that the parent with full custody add the driver to their policy, while others say teens should be covered by the parent that has custody where the child attends school. In the case of joint custody, the website recommends the teen be covered by both parents' policies, as some insurance companies define "an insured" as someone who is directly related to the policyholder and is a resident of their household.

Vehicle choice is also key in determining auto insurance rates for young drivers. Flashy, expensive cars will result in higher premiums than basic models, while older vehicles that have a lower retail price are much less expensive to insure. Furthermore, MSN Money reports faster, high-performance automobiles that contain a variety of special features can be distracting to teen drivers, who are already six times more likely to be involved in an accident than drivers ages 20 to 24.

Furthermore, an older car does not require as much insurance as a newer, more valuable model. This can bring down the price of student car insurance even further because it allows parents to drop extra policies such as collision or comprehensive insurance, leaving them with a smaller insurance rate. Less insurance plans also gives the policyholder the option to raise their deductible, ultimately making monthly premium payments more affordable.


While many insurers don't offer specific policies for student drivers, there are still steps younger drivers can take to lower their auto insurance rates. Full-time high school and college students can receive discounts on their premiums by getting good grades. High grades may also be key in securing a better rate after graduation, as MSN Money said that while A students aren't really safer drivers than C students, some insurers will still give them a better discount because they see high achievers as better future risks.

"Long-term, they want the A student as a customer," Joe Annotti, a spokesperson for the Property Casualty Insurers Association of America, told the news site.


Enrolling teen drivers in a licensed driving school program can also reduce car insurance premiums while instilling safe driving habits. Research from the Centers for Disease Control and Prevention (CDC) found comprehensive graduated licensing programs can reduce fatal accidents by 40 percent, and injuries by 38 percent among 16-year-old drivers, an impressive figure considering that motor vehicle crashes are currently the leading cause of death for teens in the nation. The CDC also recommends limiting the amount of passengers and distractions in the car when a teen driver is behind the wheel to decrease the chance of a collision. http://www.allstate.com/insurance-industry-news/auto-insurance-news/simple-steps-can-help-parents-find-affordable-car-insurance-for-teens-800391856.aspx Tue, 08 Feb 2011 09:43:40 http://www.allstate.com/insurance-industry-news/auto-insurance-news/reckless-habits-may-lead-to-higher-auto-insurance-rates-for-women-800391824.aspx Women traditionally pay less for auto insurance than their male counterparts, which may soon change as some reports suggest that female drivers are becoming more aggressive behind the wheel.

More women are beginning to receive drunk driving violations, reported insure.com, a violation that can boost car insurance rates. According to the National Highway Traffic Safety Association (NHTSA), DUI (driving under the influence) arrests for women increased by almost 30 percent from 1998 to 2007 compared to a 7.5 percent increase seen by men in the decade.

Vanity may be to blame for some bad habits female drivers are picking up that could put other motorists at risk. According to a British survey, 7 percent of women admit to applying makeup while driving and 21 percent said they often use the rear view mirror to check their appearance. Furthermore, a quarter of respondents admitted to operating a vehicle in high-heeled shoes, a safety hazard since they can easily come off or get stuck underneath the pedals.

Glen Victor, who works for the Florida Safety Council, told WKMG News the increase of ladies being sentenced to court-ordered driving classes may indicate they are developing unsafe driving habits. Victor said the classes, which are ordered for excessive speed, careless driving, reckless driving and street racing violations, used to only have about 1 or 2 women in a group of 15.

"Now half of them are girls," he told the station.

Loretta Worters, a spokesperson for the Insurance Information Institute, said the increase in violations is being reflected in insurance premiums for ladies, according to insure.com.

"The cost of auto insurance has slowly increased for women, gradually erasing a [cost] disparity that once existed between the genders,” she said, adding that 30 years ago female drivers between the ages of 17 and 24 paid about 46 percent above the base car insurance rate, while young male drivers paid 187 percent more. Now, young men of that age group are still paying about the same amount, but ladies' rates have shot up to 120 percent, Worters claimed.

However, a plethora of reports still indicate that statistically women are usually safer drivers and have habits that prompt lower insurance costs. Despite the increase in drunk driving, MSN Auto reports men are still 3.09 times more likely to receive a DUI than women. Men also have 3.41 as many reckless-driving violations, and are more likely to have seatbelt, speeding and failure to yield violations.

Ladies also tend to buy cheaper vehicles then men, allowing them to secure lower rates. INSweb reports women on average pay 8 percent less for an automobile than men, and are less likely to purchase sports cars or flashy add-ons that can lead to higher premiums.

Collision statistics also show male drivers are involved in more serious or fatal car accidents than the women. According to the Insurance Institute for Highway safety (IIHS), statistics from the Department of Transportation show 71 percent of all U.S. motor vehicle driver fatalities in 2009 consisted of men, with that year seeing 11,902 male fatalities compared to 4,887 of female drivers. The IIHS said men are usually more aggressive behind the wheel and usually drive more miles than women, increasing the likelihood that they will become involved in an accident.

INSweb shows the average rate for a 6-month car insurance policy for women is currently $698, while men pay $765 for the same plan. As of now, Iowa is the only state in the nation where women pay more for car insurance with policies beginning at $544 compared to the $533 men are charged. http://www.allstate.com/insurance-industry-news/auto-insurance-news/reckless-habits-may-lead-to-higher-auto-insurance-rates-for-women-800391824.aspx Tue, 08 Feb 2011 09:37:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/north-carolina-to-keep-insurance-rates-unchanged-800391625.aspx In a move that bucks national trends, North Carolina will not be hiking its auto insurance premiums this year.

The North Carolina Rate Bureau announced Tuesday it will keep rates the same in 2011, marking the 10th straight year the state has kept auto insurance rates stable.

In an interview with the Charlotte Observer, insurance commissioner Wayne Goodwin said the decision by the bureau is a "significant victory for Tar Heel consumers and businesses."

Keeping rates the same was an easy move for the bureau, as auto insurers didn't even request an increase, due in part to the number of accidents holding steady, Ray Evans, the bureau's general manager, told the paper.
North Carolina leaving auto insurance premiums unchanged for years is unique. According to insurance.com, 2008 marked the biggest average jump in auto insurance rates in the previous five years across the U.S. Some state lawmakers are trying to decrease auto insurance premiums for their constituents, like in Wisconsin. Overall, however, most states are increasing rates.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/north-carolina-to-keep-insurance-rates-unchanged-800391625.aspx Tue, 08 Feb 2011 08:41:53 http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-coasts-favor-foreign-vehicles-800391615.aspx According to a new survey, whether people buy foreign or domestic cars is largely dependent on where they live.

TrueCars.com says in 2010, foreign car sales tended to be concentrated on the West and East coasts, while domestic cars were purchased in the Midwest and Southern regions of the country.

"The differences in buyer behavior based on location can be dramatic," said Jesse Toprak, vice president of industry trends and insights at TrueCar.com. "This data shows the car is a reflection of not just the person, but also where they live. It is fascinating to see how tastes and needs change in each region."

The findings indicate the top five cars sold in 2010 in both California and New York were Toyotas and Hondas. In Illinois and Texas, domestic car sales dominated, with Ford and Chevy leading in sales.

With a new car purchase comes a new auto insurance policy. According to Insure.com, the 2011 models with the highest auto insurance premiums are all foreign built.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/the-coasts-favor-foreign-vehicles-800391615.aspx Tue, 08 Feb 2011 08:34:57 http://www.allstate.com/insurance-industry-news/auto-insurance-news/choosing-to-drive-or-fly-for-spring-break-800410519.aspx To help students who are trying to avoid overspending this spring break, About.com’s Kathleen Crislip has created a guide with recommendations for deciding whether to drive or fly to their destination.

First, students should determine the cost of driving by figuring out gas prices for the type of vehicle they are planning to use. They can use an online fuel calculator to estimate the expense, and should also consider the cost of food and lodging, in case they need to make an overnight stop.

When looking for flights, Crislip recommends searching for student fares, which some airlines offer for those enrolled in an accredited school. If they aren't available, using major fare aggregators and other online travel sites can help locate the lowest possible tickets for the trip. Consider airport parking costs, gas prices if using a distant airport because airfare is less expensive, luggage and other miscellaneous expenses sometimes incurred from air travel.

The final tip is to consider the value of time. If a destination is close by, driving may be a more convenient option than going through the lengthy stress of airport security.

Once the figures are worked out, students can select the least expensive option and save money that they can use to enjoy their spring breaks.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/choosing-to-drive-or-fly-for-spring-break-800410519.aspx Mon, 07 Feb 2011 20:29:03 http://www.allstate.com/insurance-industry-news/auto-insurance-news/taking-a-spring-break-road-trip-to-the-southwest-800410530.aspx Southwestern states such as Colorado, New Mexico, Utah and Arizona are rarely considered spring break hotspots. However, for some, they may be the perfect adventure destination to drive to during the upcoming vacation, according to See the Southwest.

The tourism company has created a guide for those who would like to visit the area. In it, they highlight historical sites such as pueblo ruins and scenic outdoor locations such as rivers, streams and tall mountains, which provide a number of possible physical and educational activities for visitors.

The guide also covers upcoming events in the Southwest, so those planning a trip can coordinate their vacation dates to coincide with a particular sports game, concert, museum exhibit or any other major occurrence they would like to attend.

The company has also added a feature to its site that allows users to book tours or accommodations while they are learning about the potential destinations they could visit.

Drivers should make sure they have adequate insurance on their car before they take off. Those looking for adventure may have to partake in off-road driving as some Southwestern areas are known for their rocky terrain.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/taking-a-spring-break-road-trip-to-the-southwest-800410530.aspx Sun, 06 Feb 2011 20:52:53 http://www.allstate.com/insurance-industry-news/auto-insurance-news/winters-end-may-offer-great-skiing-conditions-800410528.aspx The end of the winter season may provide skiers with the best slope conditions, according to MSNBC. 

Between weather conditions, skiing prices and snow quality, late March and early April have a lot to offer those interested in taking a ski trip. According to the news source, lodging and ski lifts cost less during those times and the effects of low attendance stretch beyond short lines at the slopes, also affecting things like local restaurant and hotel reservations.

Weather is also at its prime during the final weeks of the ski season, MSNBC says. The skies tend to be clear and sunny and the snow is powdery and deep - the best type for a high-quality skiing experience. High elevations may experience snow at night, but warm up in the daytime, providing both fresh snow and comfortable skiing conditions, according to the news source.

Perhaps instead of spending a lot of money on plane tickets to far away sunny destinations, students can take a road trip to the nearest ski slopes to take advantage of the prime time for skiing.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/winters-end-may-offer-great-skiing-conditions-800410528.aspx Sun, 06 Feb 2011 20:48:22 http://www.allstate.com/insurance-industry-news/auto-insurance-news/oklahoma-can-be-a-tasty-road-trip-destination-800410524.aspx Though Oklahoma may not be the first state to come to mind when someone mentions spring break, the state offers many eateries that may be worth a road trip during vacation, according to a recent article in The Oklahoman.

The Discover Oklahoma Destination Dining Guide is free to the public, and offers a list of some of the best destinations that food-lovers may enjoy across the state. Compiled by experts from the television show Discover Oklahoma, the guide points out 100 of the state's best places to get a plate of food, whether they be drive-ins or restaurants.

There is no specific genre of food focused on in the guide, but rather it includes "everything from tearooms to barbecue joints, wineries to health food and everything in between," according to the paper. Therefore there is something for all types of taste preferences.

Not only is the dining in Oklahoma road trip a relatively inexpensive idea, but it may be the best bet for some whose spring breaks have been shortened as a result of nearly nationwide inclement weather, which caused a number of school cancelations.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/oklahoma-can-be-a-tasty-road-trip-destination-800410524.aspx Sat, 05 Feb 2011 20:40:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/spring-breaking-in-florida-take-a-trip-to-gainesville-800410521.aspx Though spring break on the beach in Florida can be enjoyable, some families may be interested in spending one day of their vacation doing something unique and exciting. For those looking for a new experience, Roadtrips for Families recommends driving inland to Gainesville, where there are opportunities to get up-close glimpses of butterflies and alligators.

For butterflies, Roadtrips for Families suggests two potential viewing sites. The first is Great House Butterfly Farm, a working farm whose specialty is raising butterfly species native to Florida. The second is the Florida Museum of Natural History, which houses many indoor exhibits, including a butterfly rainforest, and would conveniently enable visitors to see other exhibits in the museum as well.

For the thrill-seeking type, the Paynes Prairie Preserve State Park provides a chance to see alligators as well as wild horses and bison, which are visible from an observation tower. The visitors' center also offers educational information about the animals that inhabit the park.

Families with children preparing for college may be able to use their day trip for multiple purposes. Gainesville is also home of the main campus of the University of Florida.   http://www.allstate.com/insurance-industry-news/auto-insurance-news/spring-breaking-in-florida-take-a-trip-to-gainesville-800410521.aspx Fri, 04 Feb 2011 20:36:54 http://www.allstate.com/insurance-industry-news/auto-insurance-news/inexpensive-spring-break-ideas-800410520.aspx Though many students dream of a spring vacation in a tropical destination, such trips can be expensive. The Gloucester County Times has offered some more affordable alternatives that will save money, but keep all the fun. 

Washington D.C. is a prime destination that may be within driving distance for many living on the east coast, making the travel less expensive, according to the Times. In addition to the cost-saving benefits, the trip can be exciting for those who have never been to the nation's capital. Springtime in D.C. offers special events, such as the Cherry Blossom Festival in early April.

Another popular road trip destination for those from nearby east coast locations is Florida, which the paper says is easily reachable by "cruising down [interstate] 95." The sunshine state offers many beaches, some of which rival those at popular spring break destinations in the Caribbean.

The Times also recommends alternative spring breaks as way to save money and enjoy time off from school while making a difference. On these trips, students learn about issues such as poverty, hunger and the environment, according to the paper.

By using these tips, students may be able to enjoy spring break for less. However, those going on a road trip should make sure they have adequate auto insurance in case something goes wrong.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/inexpensive-spring-break-ideas-800410520.aspx Fri, 04 Feb 2011 20:32:18 http://www.allstate.com/insurance-industry-news/auto-insurance-news/research-finds-wide-disparities-between-auto-insurance-rates-based-on-driving-records-800387470.aspx One's driving record is a critically important determinant of premium rates, says insurance information website Einsurance, which recently performed an experiment to test this.

The site attempted to get coverage for three non-existent drivers who were identical in all respects except driving history. One had a clean record, another had a poor one, and the third had a past DUI.

Some results were unsurprising, the website reported. The good driver received generally lower rates than the bad one, at both the high and low ends of the spectrum. However, the driver with an alcohol offense received a wide range of quotes. Some companies offered rates almost as low as those of the good driver, while others wouldn't provide auto coverage at all, Einsurance said.

While there were some surprises, it's still clear that an accident-free - and DUI-free - driving record is a big advantage in getting low auto insurance rates, experts say. http://www.allstate.com/insurance-industry-news/auto-insurance-news/research-finds-wide-disparities-between-auto-insurance-rates-based-on-driving-records-800387470.aspx Fri, 04 Feb 2011 14:43:00 http://www.allstate.com/insurance-industry-news/auto-insurance-news/study-fraud-costs-florida-auto-insurance-customers-plenty-800387466.aspx Inflated claims and abuse of the state's no-fault car insurance system are driving expenses for Florida motorists through the roof, the Insurance Information Institute (III) recently said in a report.

The III's Florida representative, Lynne McChristian, said the group's investigation into statistics in the state was strongly indicative of policyholders acting in bad faith.

"There are more auto insurance claims and a higher percentage of them seem to require extensive medical treatment. This is a costly combination that only offers one reasonable explanation - fraud and abuse of the no-fault auto insurance system is being paid for by all drivers, and steps must be taken to reverse this course," she said.

The group reported losses due to fraud in the state from 2009 through 2011 could total $1.5 billion.

To keep rates low, experts say it's important to maintain safe driving habits and keep one's vehicle in good shape at all times. http://www.allstate.com/insurance-industry-news/auto-insurance-news/study-fraud-costs-florida-auto-insurance-customers-plenty-800387466.aspx Fri, 04 Feb 2011 14:41:23 http://www.allstate.com/insurance-industry-news/auto-insurance-news/californians-angered-by-prospect-of-accident-response-fees-800386184.aspx The Insurance Information Network of California (IINC) recently released a survey that found most California residents are opposed to cities charging fees for police or fire department responses to traffic accidents.

The study surveyed 800 California residents. When the subjects were asked whether or not they agreed with the idea of cities charging accident fees, 50 percent said they opposed the whole concept, 21 percent supported the idea, and 29 percent said they were undecided.

The IINC reworded the question, also asking how drivers felt about their insurance companies being charged for these fees, and consequently raising insurance premiums. A full 62 percent said they were against the billing, while 29 percent said they would support such a policy.

IINC Executive Director Candysse Miller says, "It’s clear that the public does not believe that budget shortfalls should be filled by charging motorists for emergency services. The prospect of insurance costs rising to routinely cover these fees only increases their opposition."

The poll was conducted in the wake of an increasing number of California cities attempting to fill deficits by attaching a fee to police and fire department responses to car crashes, a policy that has met a lot of public dissatisfaction.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/californians-angered-by-prospect-of-accident-response-fees-800386184.aspx Fri, 04 Feb 2011 08:46:50 http://www.allstate.com/insurance-industry-news/auto-insurance-news/california-duo-arrested-for-false-insurance-claim-800386154.aspx According to the San Bernardino District Attorney, two people from Del Mar, California, were recently arrested on auto insurance fraud charges after turning themselves in at the San Bernardino County Superior Court.

Last year, Katherine Yarborough rented a car from Alamo Car Rentals and drove it on Highway 15 with Charles Witt in the passenger seat. After crashing the car into the divider, she told police that she lost control of the car because the road was wet from rain.

Yarborough did not have auto insurance, and later, Whitt filed a claim with his insurance company stating that he was driving the car, and Yarborough was in the passenger seat. The claim was denied when the insurance received a copy of the accident report from the California Highway Patrol and saw that Whitt was, in fact, the passenger.

Their bail has been set at $25,000.

Yarborough and Whitt's arrest is one of an increasing number of fraudulent insurance claims. According to A.M. Best, Florida saw 2,779 staged accidents in 2010. http://www.allstate.com/insurance-industry-news/auto-insurance-news/california-duo-arrested-for-false-insurance-claim-800386154.aspx Fri, 04 Feb 2011 08:39:40 http://www.allstate.com/insurance-industry-news/auto-insurance-news/three-simple-ways-to-save-on-car-insurance-800386096.aspx Tara Baukus Mello, an automotive writer for Bankrate.com, shared three ways that drivers can lower insurance costs and still be secure in their coverage.

Mello first advised making sure that your estimated annual mileage is still accurate, especially if your work situation has changed and doesn’t require you to drive as much. The less miles you’re on the road per year, the lower your insurance rates can be.

She also pointed out that there are increased risk factors involved when accidents occur with a driver who is either not adequately insured or not insured at all. Having minimal car insurance coverage will save a lot of money in the event that you incur damages caused by an uninsured driver.

In addition to updating your policy, Mello also cautioned drivers to keep their credit score as high as possible and to have their insurers take their new score into account when it rises.

Mello said that with a struggling economy, many people cut their coverage to save money. A study from the Insurance Research Council recently released a study that connected unemployment with the rate of uninsured drivers.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/three-simple-ways-to-save-on-car-insurance-800386096.aspx Fri, 04 Feb 2011 08:11:30 http://www.allstate.com/insurance-industry-news/auto-insurance-news/despite-low-earnings-chrysler-believes-2011-will-profitable-800384841.aspx Chrysler ended 2010 on a negative note, posting $198 million in losses for the fourth quarter. Despite ending the year in the red, Chrysler CEO Sergio Marchionne is confident about the company's future earnings, pointing to some of its recently released vehicles as examples of what consumers will be buying.

"As Chrysler Group’s brand displays at the Detroit auto show confirmed, the company has lived up to its promise to launch 16 all new or significantly refreshed vehicles in the past 12 months," said Marchionne. "Given the positive comments we have received to date, it can safely be said that what Chrysler delivered last year, on both the product and financial fronts, surpassed many expectations."

Some of the new and refreshed vehicles Chrysler will unveil in 2011 include the Chrysler 300, Chrysler 200, Dodge Charger and Dodge Avenger. The Insurance Institute for High Safety labeled these and other Chrysler models as top safety picks for 2011.

In addition to top safety picks, IIHS keeps track of which models were involved in the highest number of accidents every year. Safer cars generally translate into lower auto insurance rates.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/despite-low-earnings-chrysler-believes-2011-will-profitable-800384841.aspx Thu, 03 Feb 2011 14:12:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/maryland-governor-proposes-tax-credits-for-electric-car-buyers-800382622.aspx People living in Maryland who are planning on buying a new car might want to consider an electric vehicle. As part of the state's new budget, the recently re-elected governor, Martin O'Malley, has proposed the state provide tax credits to those who purchase electric vehicles, according to the Washington Examiner.

The $1.5 million worth of tax credits is intended to be used over three years to provide a 20 percent discount on the price of charging equipment for the vehicles. This discount will be in addition to a 30 percent discount already being offered by the federal government through the end of 2011, according to the paper.
O'Malley has also considered the effect that an increase in electric vehicles will have on the state's electric grid, the paper said. To avoid over-use of energy during peak times, he has recommended that utility companies provide incentives for owners of electric cars to charge them during off-peak hours, the Examiner reported.

These recommendations concerning electric cars are part of O'Malley's new legislative agenda aimed at increasing energy-saving measures across the state and encouraging local venture capitalism, the Examiner said. Other plans include investing in off-shore wind energy sources and providing incentives to science and biotechnology startup companies, according to the paper.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/maryland-governor-proposes-tax-credits-for-electric-car-buyers-800382622.aspx Wed, 02 Feb 2011 18:51:27 http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-new-cars-cost-less-than-used-and-certified-pre-owned-vehicles-800382615.aspx Purchasing a used car instead of a new one does not necessarily mean saving money, according to auto information company Edmunds.

Due to the current state of the economy, some car makers have produced less expensive versions of their models. Also making these vehicles more affordable is the fact that new cars are frequently financed at lower rates than older vehicles. They also have other advantages, such as the possibility of lower maintenance costs, which add to their appeal.

The company published a list of vehicles whose new prices are the same or lower than the used version. The cars on their list with newer versions that give consumers the most financial benefit over a 60-month loan term are the Lexus LS 460 L 4-door sedan, saving consumers about $2,880 and the Ford F-450 Super duty Lariat, saving consumers $2,580 over the used version.

In addition to costing less than older cars, some new vehicles may also make drivers eligible for savings on auto insurance, since some insurers give discounts for vehicles that have the latest safety features.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/some-new-cars-cost-less-than-used-and-certified-pre-owned-vehicles-800382615.aspx Wed, 02 Feb 2011 18:47:17 http://www.allstate.com/insurance-industry-news/auto-insurance-news/international-auto-show-brings-business-to-michigan-dealerships-800382605.aspx Michigan area auto dealerships are looking forward to an increase in sales following the 2011 North American International Auto Show, according to C and G News.

Dealerships have prepared themselves for a potential spike in sales by stocking a high number of updated models for their brand, the paper reported. In anticipation of a more profitable year for the auto industry, many auto companies made considerable upgrades to most of their vehicles for 2011, according to C and G. Michigan dealers hope consumers will see new versions of vehicles at the auto show and then go to area dealerships afterwards to get a closer look.

The increase in sales is expected to continue beyond the auto show into the remainder of the year. "We're definitely forecasting an increase in sales. We expect it will probably be one of our biggest years ever," Jim Elder III, general sales manager of a local Ford dealership, told the paper. 

People who attend the car show and are interested in buying a new car may also be eligible for special promotions and discounts, C and G said.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/international-auto-show-brings-business-to-michigan-dealerships-800382605.aspx Wed, 02 Feb 2011 18:42:17 http://www.allstate.com/insurance-industry-news/auto-insurance-news/after-a-year-of-increases-auto-insurance-prices-fall-in-december-800379889.aspx Auto insurance prices dropped slightly in December, according to U.S. Bureau of Labor Statistics, whose new Consumer Price Index (CPI) shows the cost of coverage declined by 0.3 percent between November and December.

The decrease was surprising, as CPI data found the cost of a car insurance policy was on the rise for most of the year, with prices averaging $886 in December, compared to $854 during the beginning of 2010, according to a combination of data from the CPI and National Association of Insurance Commissioners (NAIC).

The Bureau of Labor Statistics reported price fluctuations are representative of the experiences of 87 percent of consumers nationwide. While data indicates insurance prices are going up, the Bureau cautioned that previously NAIC median prices have consistently lowered even when the CPI showed an increase.

October and November had the highest month-to-month increases in auto insurance costs, with prices rising by 1.1 percent and 0.9 percent.

Automobile.com reports Maine had the lowest auto insurance prices in the nation, at an average annual cost of about $903. Louisiana, which reported the most expensive premiums, paid more than double that price at $2,510. http://www.allstate.com/insurance-industry-news/auto-insurance-news/after-a-year-of-increases-auto-insurance-prices-fall-in-december-800379889.aspx Tue, 01 Feb 2011 20:34:14 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-cars-not-as-appealing-to-younger-market-automakers-say-800379885.aspx While the new car market is slowly beginning to recover, automakers are concerned younger drivers aren't as interested in purchasing a new vehicle as they have been in the past, reported the Detroit Free Press.

According to IHS Automotive told the Free Press that as baby boomers hit retirement, people younger than 38 are expected to account for a larger percentage of drivers by 2015. However, young people now have the option to buy a plethora of gadgets, games, and computer accessories that may prevent them from investing in a new vehicle, according to the newspaper.

"Many young people care more about buying the latest smartphone .... than getting their driver's license. That's a serious problem we need to address," Jim Lentz, president of Toyota Motor Sales, told the paper.

While younger drivers may be opting for older vehicles so they can afford other purchases, they also may be choosing them to receive less expensive auto insurance rates. According to Bankrate.com, cars that are over 10 years old, or have more than 100,000 miles on them, do not need the same comprehensive and collision coverage as a newer vehicle, allowing owners to pay a lower premium. http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-cars-not-as-appealing-to-younger-market-automakers-say-800379885.aspx Tue, 01 Feb 2011 20:30:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/environmentalist-traditional-hybrids-still-better-choices-than-all-electric-cars-800376200.aspx Those looking to buy cars will have heard a lot about new all-electric cars like the Chevy Volt, the environmental blog Tainted Green says, but they should opt instead for more traditional hybrids.

While it may seem the environmental impact from an all-electric car is necessarily smaller than that of a gas-electric hybrid, Tainted Green notes that this fails to account for the pollution generated by fossil-fuel plants which will power many electric vehicles. The absence of a gasoline engine is frequently more than offset by the need to charge the battery from dirty energy sources, whereas traditional hybrids generate their own battery power.

Additionally, it's still unclear which type of propulsion system will be cheaper to operate, the blog says. Until regulations standardize electric pricing, it could easily cost a motorist more to operate a plug-in vehicle than, for example, a Toyota Prius.

Nevertheless, some experts see electric cars taking over the U.S. market as soon as 2020. http://www.allstate.com/insurance-industry-news/auto-insurance-news/environmentalist-traditional-hybrids-still-better-choices-than-all-electric-cars-800376200.aspx Mon, 31 Jan 2011 14:36:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/twenty-eight-percent-of-mississippi-drivers-dont-have-auto-insurance-800376163.aspx Data from the Insurance Research Council shows that roughly 28 percent of Mississippi drivers do not have auto insurance, making it one of the five states with the most uninsured drivers. Nationally, about one in six drivers are uninsured.

According to Sunherald.com, the local news site for Biloxi-Gulfport and South Mississippi, the 2000 compulsory auto insurance legislation has not affected the high rate of uninsured drivers.

The Mississippi Highway Patrol issues more than 30,000 citations for uninsured driving per year.

Sunherald.com notes that many other states, like Louisiana, equip their highway patrol cars with a computer system that lets officers see whether or not a driver’s auto insurance coverage has lapsed, and if it has, they are required to tow the car immediately. In Mississippi, the site says officers must place a phone call to the insurance company, which may be why many uninsured drivers escape more strict penalties.

There are legislative bills in the works that would prevent uninsured drivers from collecting damage payments from insured drivers, but similar efforts have been defeated in the past.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/twenty-eight-percent-of-mississippi-drivers-dont-have-auto-insurance-800376163.aspx Mon, 31 Jan 2011 14:21:51 http://www.allstate.com/insurance-industry-news/auto-insurance-news/mazda-will-begin-leasing-electric-cars-next-year-800376157.aspx Mazda, one of the automakers that has been relatively inactive on the electric car development front, recently announced it would begin leasing an initial model of an electric vehicle in Japan next spring.

A press release said that Mazda’s Building Blocks Strategy is focused on improving central technologies in their car building process, like “efficient engines” and “regenerative brakes,” the initial fruits of which will it start selling this year.

The new electric car will only be offered for local government use and fleet customers, so the company can gauge its success. They are, however, still developing cars to be used by private commuters. The company says the internal combustion engine, for now, will drive its electric car developments.

Mazda is part of a wave of car companies like Chevrolet and Nissan that are developing fuel-efficient electric cars that will appeal to consumers worldwide wary of rising gas prices.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/mazda-will-begin-leasing-electric-cars-next-year-800376157.aspx Mon, 31 Jan 2011 14:19:03 http://www.allstate.com/insurance-industry-news/auto-insurance-news/fears-over-rising-gas-prices-compelling-car-buyers-to-go-with-fuel-economy-800376149.aspx A recent Kelly Blue Book Market Intelligence Survey focusing on the effect of gas prices revealed 70 percent of drivers were either changing their car habits, or taking fuel economy into consideration when car buying.

Because of rising gas prices and an unstable economy, 43 percent of consumers said they were putting off buying a new car.

The survey also showed that consumers were considering changing their car model to a more efficient one because of the high prices. Forty-eight percent said they would consider getting a smaller engine, and 36 percent were willing to consider downsizing when making their next car purchase.

Kelly Blue Book also used a pricing model to find what price per gallon level would begin to affect consumers’ car choices. The study found that consumers would consider any price over $3.50 expensive enough to change their vehicle choice or driving habits.

The study comes ahead of an expected rise in gas prices. The U.S. Energy Information Administration predicts oil prices will continue to rise through this year and 2012. http://www.allstate.com/insurance-industry-news/auto-insurance-news/fears-over-rising-gas-prices-compelling-car-buyers-to-go-with-fuel-economy-800376149.aspx Mon, 31 Jan 2011 14:16:07 http://www.allstate.com/insurance-industry-news/auto-insurance-news/byd-set-to-unveil-first-all-electric-car-800376129.aspx In its China Real Time Report blog, the Wall Street Journal revealed China-based automaker BYD, which is preparing to launch its line of vehicles in the U.S., has finalized the design of their first all-electric car with German car producer and manufacturer Daimler AG, the company that produces Mercedes Benz cars.

The news comes at the tail of a very bleak year for BYD, whose sales sank in China this past year because of the rough economy. China’s central government also forced them to give up part of their land in a zoning dispute. The source reported BYD and Daimler hope to finish the electric car’s development in 2012, and release it for sale in 2012.

The style of the car is apparently conservative; a style a source told the blog was "half sedan and half crossover."

While the finalization of the new car’s design is positive news for the struggling BYD, they will be lagging behind other companies like Chevrolet and Nissan, which released electric car models this past year.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/byd-set-to-unveil-first-all-electric-car-800376129.aspx Mon, 31 Jan 2011 14:08:45 http://www.allstate.com/insurance-industry-news/auto-insurance-news/buying-a-car-watch-out-for-stolen-vehicles-800371721.aspx The practice of title washing - or providing fraudulent registration and ownership information on official documents - can land even legitimate car buyers in a sticky situation, according to a report from MyFOX Houston.

Sheriff's deputies recently conducted raids on four auto title companies in Harris County, Texas, which were allegedly found to be engaging in title washing, the news station said, and many people there were charged with tampering with government documents and organized crime.

Montgomery County Sheriff's Lieutenant David Moore told MyFOX Houston modern technology provides an opportunity to the criminals, allowing them to create and edit much more convincing forgeries than may have previously been possible.

"These days and times there's so much access to computer-generated documents, you're on your own basically," he said.

Despite the uptick in auto insurance fraud, rates are still about average in Texas, experts say. The same cannot be said, however, of home insurance in the state, which is among the most expensive in the nation. http://www.allstate.com/insurance-industry-news/auto-insurance-news/buying-a-car-watch-out-for-stolen-vehicles-800371721.aspx Fri, 28 Jan 2011 10:42:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/teens-with-divorced-parents-require-thorough-car-insurance-800371720.aspx Securing car insurance coverage for teenage drivers is always a feat, but insuring the child of divorced parents may throw even more curveballs into the process.

According to insure.com, many insurers suggest the parent with full custody should add their teen to their policy. In the case of joint custody, the teen should be covered by both policies, as many insurance companies define "an insured" as someone directly related to the policyholder and a resident of their household.

Parents who neglect to list their teen on their car insurance policy once they get a drivers license may face serious consequences, said the website, as they may consider it misrepresentation. Teens should be listed even if they only drive occasionally, as an insurer can cancel or refuse to renew a policy because of the error.

Teenage drivers are considered safety hazards by insurers, which is why having secure coverage for them is necessary. According to MSN Money, teen drivers are almost six times more likely to get into an accident than drivers ages 20 to 24, while the Centers for Disease Control and Prevention reports traffic accidents are the leading cause of death for teenagers in the nation.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/teens-with-divorced-parents-require-thorough-car-insurance-800371720.aspx Fri, 28 Jan 2011 10:41:22 http://www.allstate.com/insurance-industry-news/auto-insurance-news/phoenix-dealership-leverages-ipad-to-streamline-car-buying-process-800367282.aspx A car dealership in Phoenix, Arizona, is planning to launch an iPad application that will streamline the car buying process for its customers, reports KNXV-TV in Phoenix.

RC Auto, operated by father-son team Roger and Ryan Camping, has created an app which allows car shoppers to browse the cars available in their lot, and then alert RC Auto when they’ve decided on a few they’d like to test drive.

Once they’ve decided on a car that’s right for them, the station says they can arrange the process behind purchasing or leasing without any in-person paperwork. The process, according to the Campings, takes close to four minutes, as opposed to the typical 40.

“This application will allow us to do a transaction with an automobile and they don’t have to be at the dealership. It can be done all at one time, at home or maybe at a coffee shop,” Camping told the station.

With the auto industry suffering from lack of consumer demand over the past couple of years, a buying experience that decreases time and stress may give RC Auto a competitive advantage over other dealers.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/phoenix-dealership-leverages-ipad-to-streamline-car-buying-process-800367282.aspx Wed, 26 Jan 2011 16:53:18 http://www.allstate.com/insurance-industry-news/auto-insurance-news/anxious-to-move-cars-off-lots-dealerships-granting-low-interest-finance-options-800367272.aspx As the automobile industry continues to suffer, dealerships are looking for alternative ways to lure buyers and move merchandise out of their lots. As a result, according to Smartmoney.com, they’re giving out auto loans with extremely low interest rates.

While banks have traditionally been the main source of financing for car purchases, the financial and business website says consumers are better advised to approach dealerships about finance options. The average interest rate on an auto loan from a bank is currently at 5.9 percent, whereas the average rate for a dealer loan hovers around 4.4 percent, according to a survey from HSH Associates.

The reason for this phenomenon is automakers are able to subsidize financing to dealers, who are looking for any way to move inventory from their stores to move in new cars. This may be a great way for consumers to save money in the long run, but automakers have lost $2,239 for each car they financed over the past year, according to Edmunds.com.

Toyota, in particular, absorbed a lot of these losses, having financed 24 percent more cars than it did in 2009.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/anxious-to-move-cars-off-lots-dealerships-granting-low-interest-finance-options-800367272.aspx Wed, 26 Jan 2011 16:50:15 http://www.allstate.com/insurance-industry-news/auto-insurance-news/finance-writer-advises-retirees-to-sit-tight-on-electric-car-buying-for-another-year-800367260.aspx Jennie L. Phipps, a personal finance blogger and commentator for Bankrate.com, advised retirees planning to buy a new car for retirement to wait another year or so for the electric car industry to further develop, citing many car companies whose releases in 2011 will outperform previous electric cars.

Phipps attended the North American International Auto Show, one of the largest car shows in the country, where companies like Chrysler unveiled models with many advantages over current big-name electric cars, like the Chevrolet Volt and the Nissan Leaf. Many auto companies are also releasing car parts that would increase electric vehicles’ efficiency.

One battery manufacturer has recently developed a lithium battery that’s half the size of the one used by the Chevy Volt today, and some companies have developed a tool which allows gas-guzzling automobiles like trucks to be electrically powered, greatly increasing their fuel economy.

“Despite the recent release of the Chevy Volt and Nissan Leaf,” she says, “electric cars aren’t ready for prime time, but they’re getting there.”

According to Claes Bell, a car blogger also from Bankrate.com, the battle between car companies to develop the best electric car took off last summer, when both Nissan and Chevy announced their respective models. http://www.allstate.com/insurance-industry-news/auto-insurance-news/finance-writer-advises-retirees-to-sit-tight-on-electric-car-buying-for-another-year-800367260.aspx Wed, 26 Jan 2011 16:47:03 http://www.allstate.com/insurance-industry-news/auto-insurance-news/californias-high-electricity-prices-threaten-viability-of-electric-cars-800367205.aspx A study from researchers at Purdue University recently showed the benefits of electric cars will be more difficult for consumers in California to reap because high electricity costs offset the benefits of their fuel economy.


California originally set these electricity prices as a way to discourage overuse of power and cut down on carbon emissions. The researchers say between the high cost of buying a car itself and the monthly cost of charging the vehicle overnight, oil prices would have to skyrocket to between $171 and $254 for an electric car like the Chevrolet Volt to be economical for California consumers.

Wally Tyner, an agricultural economist at Purdue, cited the "three-tiered pricing system," which charges consumers at a higher rate for electricity consumed after they’ve used a certain amount, as one of the reasons consumers could expect to spend more money by buying an electric car.

Currently, California has one of the highest electricity rates in the country, charging 35 times the national average. In the average household, an electric car would raise electricity costs by 60%.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/californias-high-electricity-prices-threaten-viability-of-electric-cars-800367205.aspx Wed, 26 Jan 2011 16:16:32 http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-variety-is-key-to-success-of-hybrid-vehicles-800366019.aspx Buying a new hybrid vehicle could be a process with an extra step in the near future, as consumers may need to decide not only on make and model, but on propulsion system, according to a report from tech news site CNET.

A single type of car could be offered to the public in several different variations, including plug-in hybrid and battery-electric. Vice president of marketing and communications at lithium-ion battery maker A123 Systems Andy Chu told the website this offers consumers better choices.

"As these vehicles come online, the fact that you can choose the type that fits your specific needs will lead to greater adoption. Different regions or countries may gravitate to one architecture or another," Chu said.

While most hybrid vehicles still tend to have higher price points than traditional models, the savings in gasoline could add up quickly, making them attractive to budget-conscious consumers looking to buy cars. http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-variety-is-key-to-success-of-hybrid-vehicles-800366019.aspx Wed, 26 Jan 2011 10:17:58 http://www.allstate.com/insurance-industry-news/auto-insurance-news/mitsubishi-to-replace-current-us-lineup-800365987.aspx Those looking to buy cars from Mitsubishi will have radically different options in the near future, as the Japanese manufacturer announced a near-total overhaul of its offerings for the American market.

The company said it would discontinue the Galant, Eclipse, and Endeavour models by 2014 and replace them with vehicles more similar to the rest of its global lineup. Automobile magazine said Mitsubishi will also look to expand its cooperative ventures with other carmakers and improve its presence in the growing market for hybrids and other eco-friendly machines.

The changes will likely make for similar shifts at the company's Normal, Illinois, manufacturing facility, which currently produces the cars for sale in the U.S. However, Automobile reported a new model - possibly an SUV - would be built at the plant.

Consumers should make sure to research new car purchases before making then, and should be aware of possible difficulties in finding reliability data on brand-new models. http://www.allstate.com/insurance-industry-news/auto-insurance-news/mitsubishi-to-replace-current-us-lineup-800365987.aspx Wed, 26 Jan 2011 10:14:48 http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-ohio-car-insurance-letters-could-stop-soon-800365945.aspx A system designed to weed out uninsured Ohio drivers may be scrapped if some legislators get their way, according to a story in the Columbus Dispatch.

More than 5,000 letters are sent at random each week to the state's motorists, according to the newspaper, and those who fail to reply with proof of car insurance within a 90 day deadline are hit with a suspended license penalty plus a fine.

State Representative Matt Huffman told the Dispatch the current system is unfair.

"There are a variety of ways to do this without sending out these letters and in some instances playing gotcha," he said.

All U.S. states except New Hampshire require drivers to have at least a minimal level of car insurance. Regardless of what the legal mandates in a given area are, experts say consumers should have enough coverage to cope with most eventualities. http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-ohio-car-insurance-letters-could-stop-soon-800365945.aspx Wed, 26 Jan 2011 10:08:13 http://www.allstate.com/insurance-industry-news/auto-insurance-news/chrysler-to-jump-on-the-hybrid-vehicle-trend-with-new-version-of-300-sedan-800365925.aspx Although the company has not released an official statement confirming the news, Chrysler CEO Sergio Marchionne said the automaker has plans to test the hybrid vehicle market's waters with a new model of its 300 sedan.

Chrysler has its own type of hybrid technology, the CEO confirmed in a statement released January 19. Teaming up with the U.S. Environmental Protection Agency (EPA) was a big part of the development process, he said.

"Hydraulic hybrid vehicle technology is one more promising path worth pursuing in the effort to reduce our carbon footprint, and we are excited to partner with the EPA to push forward on this track," Marchionne said.

The system - which works by reusing energy from braking via a hydraulic pressure vessel, according to the EPA - will be rolled out in a minivan in 2012, meaning those looking to buy a car at that time could have an innovative new option available. http://www.allstate.com/insurance-industry-news/auto-insurance-news/chrysler-to-jump-on-the-hybrid-vehicle-trend-with-new-version-of-300-sedan-800365925.aspx Wed, 26 Jan 2011 10:06:17 http://www.allstate.com/insurance-industry-news/auto-insurance-news/wealth-and-high-end-cars-go-hand-in-hand-in-china-800365843.aspx The women of China's rising capitalist class are frequent buyers of high-end luxury and sports cars, according to a recent report from Bloomberg News.

The president of a construction company, Lily Liu, told the news agency she was happy to be the center of attention in a two-year old Porsche 911 Carrera S, and she was searching for an Aston Martin.

"Women buying such cars are just seeking an equal standing with our male counterparts," she said.

The percentage of women buying exotic cars in the Chinese market is far higher than it is in Europe or America, representatives of Fiat - which owns Maserati and Ferrari - told Bloomberg, and research shows overall spending on luxury models is getting bigger in the country, the news service added.

A cost hopeful owners of the world's top cars must consider, according to experts, is auto insurance, which can be quite expensive for particularly high-end models. http://www.allstate.com/insurance-industry-news/auto-insurance-news/wealth-and-high-end-cars-go-hand-in-hand-in-china-800365843.aspx Wed, 26 Jan 2011 09:51:21 http://www.allstate.com/insurance-industry-news/auto-insurance-news/criminals-must-be-avoided-when-buying-a-car-800365832.aspx Anonymity and a clever story can be all a criminal needs to take advantage of an unsuspecting new car buyer, the Tulsa Herald reports. This makes it important for prospective buyers to recognize certain signs a transaction might not be on the level.

Any deal advertised on Craigslist, eBay, or AutoTrader for significantly less than the commonly accepted market value of the car should be regarded as suspicious, Tulsa Police detective Thom Bell told the newspaper.

Usually, he added, scam artists in other countries come up with a story about being a soldier about to go on deployment or some such, in order to explain their inability to meet the buyer in person.

In addition to checking out the seller, experts say getting a report on the vehicle itself - to discover any damage not apparent from an inspection - is always a good idea. http://www.allstate.com/insurance-industry-news/auto-insurance-news/criminals-must-be-avoided-when-buying-a-car-800365832.aspx Wed, 26 Jan 2011 09:46:55 http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-mercedes-most-expensive-car-to-insure-800358585.aspx Insure.com publishes a yearly report on which makes and models have the highest car insurance rates. And for 2011, the Mercedes sets motorists back the furthest.

At $3,543, the Mercedes SL65 AMG costs the most, with two BMW models - the 750i and 750 Li - tied for second at $3,280. Rounding out the top five are two other Mercedes models - the SL63 AMG and S65 AMG - and the Aston Martin DB9.

With the help of Quadrant Information Services, Insure.com arrived at the numbers by averaging the cost of car insurance premiums for a 40-year-old male in 10 zip codes per state and among the six largest auto insurance providers. The study also assumed the driver had a clean record.
In 2010, the Porsche 911 Carrera GT2 was the most expensive, costing motorists $2,943 to insure.
Of course, the reason luxury vehicles cost so much to insure is because repairs for those cars tend to be higher than traditional models.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/survey-mercedes-most-expensive-car-to-insure-800358585.aspx Fri, 21 Jan 2011 16:08:35 http://www.allstate.com/insurance-industry-news/auto-insurance-news/texas-foundation-formed-to-financially-assist-motorcycle-crash-victims-800358571.aspx The freedom that comes from cruising the open road on a motorcycle can be alluring. But the appeal can be severely curtailed in the event of an accident, especially without motorcycle insurance.

Such was the plight of Bevo Garza, who suffered a life-altering motorcycle accident in 2007 that paralyzed him.

In an interview with the Brownsville Herald, Agustin Mata, a friend of Garza's said, "It was a shock. We didn't have money for a bed, supplies, harnesses, chairs. It was hard."

With Garza and other uninsured motorists in mind, Mata formed the RGV Fallen Riders Association, a non-profit organization that aims to assist families whose financial situation has fallen on tough times due to a motorcycle accident. Through word of mouth and fundraisers, Mata is doing all he can to get people to donate money. Mata told the Herald his first fundraiser was held this past June.

While Garza did not have motorcycle insurance at the time of the accident, his home state of Texas requires it. According to the Insurance Information Institute, Washington State, Montana and Florida are the only states that don't require motorcyclists carry insurance.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/texas-foundation-formed-to-financially-assist-motorcycle-crash-victims-800358571.aspx Fri, 21 Jan 2011 16:02:19 http://www.allstate.com/insurance-industry-news/auto-insurance-news/maryland-now-requires-more-extensive-car-insurance-800355999.aspx Maryland motorists with state minimum car insurance policies are on the hook for a 50 percent increase in coverage, but their overall bills might not rise by that much.

The previous minimum level of coverage required by the state was $20,000 for bodily injury liability and $40,000 for two or more people injured in an accident, the news source says, but the new requirements raise that to $30,000 and $60,000, respectively.

While it might sound like this is a recipe for higher car insurance premiums across the state, the National Association of Insurance Commissioners has stated higher coverage limits aren't necessarily a high-cost item.

Although state minimum auto insurance levels vary, some are still too low to cope with a serious accident. Many car insurance experts encourage more investment in a policy to ensure financial stability in case the worst happens. Additionally, purchasing comprehensive coverage can protect against many hazards besides a collision. http://www.allstate.com/insurance-industry-news/auto-insurance-news/maryland-now-requires-more-extensive-car-insurance-800355999.aspx Thu, 20 Jan 2011 17:02:57 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-best-buy-team-up-to-sell-electric-car-charging-stations-800355987.aspx Finding an appropriate place to plug in and charge one's electric Ford Focus could become much easier as the car manufacturer announced earlier this month it would team up with Best Buy to sell electric car charging stations to be installed in the home.

Ford's manager of vehicle electrification and infrastructure, Mike Tinskey, predicted the devices would sell quickly.

"With fast charge times, low pricing and a user-friendly design, the 240-volt home charge station will be on the shopping list of most Focus Electric buyers," he said, also praising the partnership with Best Buy for providing convenience and ease of installation.

Best Buy's existing Geek Squad tech support team will perform inspections of homes in which the chargers are to be placed, and will schedule an appointment with a master electrician to do the actual installation, the company said in a statement. http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-best-buy-team-up-to-sell-electric-car-charging-stations-800355987.aspx Thu, 20 Jan 2011 17:00:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-toyota-prices-hold-steady-despite-high-recall-volume-800355969.aspx Instead of a precipitous dip in the wake of Japanese carmaker Toyota's safety and recall issues in 2010, the company's average prices were relatively stable, reported Kelley Blue Book.

Used car values, the automotive information company said, were particularly strong, as the 2007-2009 versions of the Camry, Highlander, Sienna and Yaris were among the top performers in the market segment last year. However, Kelley did point out the relative underperformance of Toyota's Lexus luxury brand, though this was also part of a general downward trend for high-end makes.

The company may have managed to offset much of the downturn from the recall problems with aggressive pricing and rebate programs, Kelley Blue Book said.

The Kelley report may be useful information for those looking to buy a car, since it could help identify models likely to have lower-than-average prices, experts say. http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-toyota-prices-hold-steady-despite-high-recall-volume-800355969.aspx Thu, 20 Jan 2011 16:56:21 http://www.allstate.com/insurance-industry-news/auto-insurance-news/north-carolina-county-commissioner-proposes-law-to-impound-uninsured-cars-800355799.aspx The commissioner of New Hanover County in North Carolina is encouraging lawmakers to pursue an ordinance imposing harsher penalties for drivers without auto insurance, according to an article in the Star-News.

Commissioner Jason Thompson wants authorities in his county to be able to impound any vehicle they determine is uninsured. In addition to impounding the vehicle, the Star-News reports the driver would receive a $350 fine plus court costs. Vehicles left in the lot for over 30 days would receive an additional $20 fine per day. If, after a currently unspecified amount of time, a car was considered abandoned, it would be sold by the county.

Since the state controls motor vehicle laws, Thompson has approached state legislators with this prospective law, reasoning it could potentially stop dangerous drivers from being on the road. "If we had more teeth than our current system to take their car away then they couldn't get that fourth, fifth or sixth DUI," he told the Star-News.

The Star-News also mentioned Dallas enacted a similar law in 2009, and media reports from the area stated the number of uninsured drivers on the road decreased drastically as a result.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/north-carolina-county-commissioner-proposes-law-to-impound-uninsured-cars-800355799.aspx Thu, 20 Jan 2011 15:37:02 http://www.allstate.com/insurance-industry-news/auto-insurance-news/delaware-officials-report-record-decline-in-fatal-accidents-800351890.aspx Delaware officials and residents alike have a lot of celebrate in terms of road safety. The Delaware Office of Highway Safety (DOHS) says last year marked the lowest number of deadly motor vehicle accidents in the state in more than 40 years.

The number of car accidents has also declined in the state. DOHS data shows there were 92 fatal collisions last year, down from 102 the year before.

While the drop in accident fatalities is welcome, officials say even one death is still too many on the state's roads. DOHS director Jana Simpler says efforts will remain to increase driving safety.

"We are constantly striving to implement the most effective strategies possible in an effort to prevent deaths and injuries on our roadways," says Simpler.

There are actions motorists can take every day to increase safety and improve their likelihood of surviving an accident. Always wearing a seatbelt and operating a vehicle with airbags are a couple of good places to start. http://www.allstate.com/insurance-industry-news/auto-insurance-news/delaware-officials-report-record-decline-in-fatal-accidents-800351890.aspx Wed, 19 Jan 2011 10:34:16 http://www.allstate.com/insurance-industry-news/auto-insurance-news/nearly-2400-minnesota-motorists-arrested-for-driving-while-impaired-in-december-800351871.aspx Minnesota has been trying to reduce the number of fatal motor vehicle accidents through its "Toward Zero Deaths" campaign. Ramped-up patrol units helped bring the state closer to reaching its goal in December.
Nearly 2,400 motorists were arrested during the last month of 2010 for driving while impaired (DWI). Furthermore, more than 2,000 citations were given to occupants defying the state's seatbelt law.

Minnesota State Patrol Lieutenant Eric Roeske says law enforcement efforts helped prevent motor vehicle fatalities.

"Minnesota roads are far from safe when you consider these DWI arrest numbers," says Roeske. "Many people made a selfish and dangerous decision to drive impaired. The good news is law enforcement officers were able to stop these motorists before damage was done."

In Minnesota, those who are convicted of DWI are likely to face higher car insurance rates as a result. Those who cause motor vehicle accidents, live in high crime areas or drive a vehicle known for catching the eyes of thieves are also likely to also be charged higher auto insurance premiums. http://www.allstate.com/insurance-industry-news/auto-insurance-news/nearly-2400-minnesota-motorists-arrested-for-driving-while-impaired-in-december-800351871.aspx Wed, 19 Jan 2011 10:31:43 http://www.allstate.com/insurance-industry-news/auto-insurance-news/474-florida-motorists-arrested-for-drunk-driving-during-holidays-800351858.aspx Law enforcement officials nationwide cracked down on intoxicated motorists during the holiday season with the "Drunk Driving. Over the Limit.Under Arrest." initiative.

Now, states are reviewing the results of their efforts. In Florida, 474 motorists were arrested for drunk driving while nearly another 41,000 received a citation between December 16, 2010 and January 3, 2011.

Florida Highway Patrol director Colonel John Czernis says law enforcement does the best they can to keep unsafe drivers off the road.

"Motorists who operate their vehicles in an unsafe fashion are a danger that puts innocent lives at risk," says Czernis. "The men and women of the Florida Highway Patrol did their part to identify the unsafe drivers and take the steps necessary to decrease that risk."

Safe driving practices should always be used. When going to an event where alcohol is likely to be served, it's best to determine a designated driver in advance to avoid confusion. Failure to do so can have devastating consequences. http://www.allstate.com/insurance-industry-news/auto-insurance-news/474-florida-motorists-arrested-for-drunk-driving-during-holidays-800351858.aspx Wed, 19 Jan 2011 10:29:38 http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-is-most-searched-automaker-in-the-world-google-says-800350208.aspx U.S. automaker Ford topped the list of most-Googled car manufacturers in late December and early January, the search giant announced in an official blog entry.

As well as ranking auto brands by search volume, Google pointed out several other automotive search trends, including a spike in traffic inspired by vehicles featured in popular culture like movies and video games. The Rick Ross hip-hop song "Aston Martin Music" may have inspired increased search volume for that car maker, as well.

The Detroit Auto Show was another big traffic driver, Google said, and vehicles making a splash at that event - like the Chevrolet Volt, which was named Car of the Year - saw big search numbers. Additionally, volumes for crossover models are rising steadily, the company noted.

Informational terms are always big as well, experts said, as many Americans use the internet to search for facts on safety and car insurance. However, Google's information indicated a decreasing interest in auto financing. http://www.allstate.com/insurance-industry-news/auto-insurance-news/ford-is-most-searched-automaker-in-the-world-google-says-800350208.aspx Tue, 18 Jan 2011 16:28:49 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-car-technology-keeps-getting-more-advanced-800350203.aspx Experts say smaller price tags for basic computer equipment and an increasing demand for digital integration is driving the rapid influx of new technology in the latest car models, reports the Des Moines Register.

Ken Chester, the president of the Motor News Media Corporation, told the paper lower costs and the advent of the iPod helped push more technology into the modern car.

"In about 2005 there was this beautiful convergence of lower cost for electronics for auto makers and consumer demand," he said, adding "what really drove this was the iPod explosion. Younger customers wanted to play their own music and the auto industry found that it wasn't that expensive to install auxiliary plugs that would allow that to happen."

Despite an increasing focus on safety, others say it's possible to become distracted by cool gadgets. Safe driving habits mandate paying full attention to the road ahead, according to experts. http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-car-technology-keeps-getting-more-advanced-800350203.aspx Tue, 18 Jan 2011 16:27:00 http://www.allstate.com/insurance-industry-news/auto-insurance-news/simple-steps-to-take-after-a-car-accident-800350027.aspx The confusion of a car accident can often leave the parties involved forgetful of important steps which need to be made. That, combined with the 87 reported car accidents after a recent Rhode Island snowstorm - has caused PCI to issue 10 steps Ocean State residents should always remember to take when an accident occurs.

Chief among these is to remain calm. Becoming flustered can lead to a series of wrong decisions, like leaving the scene of the accident, not calling police or signing documents one shouldn't. PCI says the only documents signed should be for a police officer or insurance agent.

To avoid any additional damage, PCI reminds drivers to turn their hazard lights on, move cars away from oncoming traffic if the accident is minor and exchange insurance information.

"Your insurer or insurance agent can help you minimize problems in finding reputable autobody repair and assist you every step of the way following an accident," said Frank O'Brien, vice president of state government affairs for PCI.

As might be expected, auto insurance claims tend to rise in the winter months, when driving conditions are at their worst.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/simple-steps-to-take-after-a-car-accident-800350027.aspx Tue, 18 Jan 2011 14:30:05 http://www.allstate.com/insurance-industry-news/auto-insurance-news/in-big-apple-insurance-fraud-on-the-rise-800343152.aspx After a June 2009 report showed a 58 percent increase in staged auto accidents in Florida, the National Insurance Crime Bureau put the Sunshine State on their watch list. This year, their sights will likely be set on the city that never sleeps.

That's because according to a study from the Insurance Research Council, 22 percent of all no-fault auto insurance claims made in the New York City area in 2010 had at least some elements of insurance fraud.

The fraud cases appear to be most wide spread in no-fault auto insurance claims or personal injury protection auto insurance claims, in which an insurance provider pays the cost of treatment regardless of who was at fault in the accident. New York is one of 12 states to offer such a plan.

"The preliminary findings from this study confirm that New York City is a hot bed for auto insurance fraud and that the problem has grown worse in recent years," said Elizabeth Sprinkel, the Insurance Research Council's senior vice president.

New York City isn't the only area that's seen increases in questionable claims being made. Nationally, compared to the same period in 2009, there was a 12 percent rise in apparent fraudulent claims last year, the most common ones relating to auto glass and towing, according to the NICB.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/in-big-apple-insurance-fraud-on-the-rise-800343152.aspx Fri, 14 Jan 2011 09:10:07 http://www.allstate.com/insurance-industry-news/auto-insurance-news/combining-car-insurance-after-marriage-cost-saving-or-costly-800339224.aspx Getting married can cause many voluntary and involuntary financial changes for both members of a couple. While considering which accounts to unite or keep separate, couples should thoroughly research the costs and benefits of either option.

The website iSeeCars.com recently posted the pros and cons of combining car insurance for a newly married couple. They listed two key benefits to newlyweds who decide to combine their auto insurance plans.

The first benefit is that married couples are seen as lower risk by auto insurance companies. In other words, they are considered safer drivers. According to the site, the lower rates for married couples are based on a combination of statistics and the general social perception of married couples being more responsible.

Since auto insurance rates are based on a client's risk, becoming a lower risk client will have the effect of lowering auto insurance premiums. Married people can add their spouses to their policy as a second driver to receive a reduction in rates and can also add their spouse's vehicle to their policy to receive a multi-policy discount through most insurance companies.

The second benefit is the additional discounts a second driver could open up, which were perhaps unavailable to the first driver. Examples mentioned by iSeeCars.com the site are infrequent driver discounts if the policyholder's spouse doesn't drive often or commuter discounts for a spouse who frequently uses public transportation or carpools to work. The site reinforces the importance of asking about available discounts. Getting married can provide new opportunities for reduced premiums, but inquiring about the available discounts may be the only way to find out they exist.

Though marriage can open up the possibility of new savings on auto insurance policies, this is not always the case. There are also downsides for married couples combining their car insurance, and for certain couples, combining policies may cause more harm than good.

The first con mentioned by the source is that once an auto insurance policy is combined, if one driver develops a poor driving record, premiums for both drivers will increase. Auto infractions such as speeding tickets, car accidents, or DUIs will cause an insurance company to regard the account as a higher risk and spark a policy-wide increase irrespective of which member of the couple is at fault. This issue is exacerbated due to the extended length of time that these higher premiums can last, ranging 3 to 5 years or longer, depending on the insurance company.

Couples should also be aware that as their family expands, so can their auto insurance premiums. If the married couple has children they would like to add to their policy, they can expect their premiums to increase at steeper rates. This is partially because drivers under 25 are subject to higher insurance premiums whether they have independent policies or are listed on the policies of their parents. Therefore, adding children or stepchildren of driving age to the policy will cause a rate increase. If the married couple themselves is under the age of 25, they are also members of this highest risk group, and despite discounts due to marriage will likely remain subject to high premiums.

Whether or not combining car insurance policies is a financially responsible decision can best be determined on an individual basis. Each policyholder should consider the above pros and cons before saying "I do" to joint auto insurance policies. http://www.allstate.com/insurance-industry-news/auto-insurance-news/combining-car-insurance-after-marriage-cost-saving-or-costly-800339224.aspx Wed, 12 Jan 2011 17:27:11 http://www.allstate.com/insurance-industry-news/auto-insurance-news/transfers-create-auto-issues-for-servicemembers-800335082.aspx For military families, work transfers are far more common than they are for the rest of the population. But as the FINRA Investor Education Foundation says, each transfer creates a number of potential issues related to driving and car insurance.

For servicemembers who are being transferred to another base within the continental U.S., the foundation says they should immediately notify their car insurance company, and make sure they are licensed to sell insurance there. Many insurance companies make the process easier for military families by offering car insurance plans that move along with a transfer.

If the insurance company doesn't work in a particular state, then the foundation says military personnel should be sure to take care of their auto insurance needs within 60 days of the move. If military workers have advance notice about a potential move, the foundation says it's also a good idea to plan ahead, and ask the company about whether their auto insurance costs will change for their new location.

The report adds servicemembers also need to plan for how they will get their vehicle from one location to another, and how much it will cost. Driving the car cross-country can cost a significant amount of money in gas and hotels, while hiring a company to deliver the car may be just as expensive.

There are also a number of other car-related considerations for military families. Many auto lease agreements don't allow for the car to be housed in another state, a part of the contract which could cause headaches if it is discovered at the last minute. The site advises sevicemembers to review existing agreements carefully, and be sure any future leases don't contain a similar provision.

The foundation adds many times, workers at the state's motor vehicle department may not be completely sure how to deal with military workers and try to charge fees, such as taxes on personal property, which soldiers may be exempt from. When in doubt, the report says military members should ask others at their base or post for assistance. Many states also have web pages aimed at military personnel, detailing any fees or taxes they may need to pay.

According to the report, many states don't require transferring servicemembers to get a new driver's license, but they are advised to check with base personnel. The foundation also cautions the rules may be very different depending on who actually owns the car. Many fees and taxes that don't apply for servicemembers will still apply to a nonmilitary spouse.

The report says servicemembers may face an entirely different set of challenges if they are transferred or deployed overseas, even if it is to a non-combat area. In most cases, the report says soldiers aren't able to take leased vehicles overseas. While it may be possible to get out of the lease, it may be a long process.

Any vehicle sent overseas needs to have adequate insurance throughout the time it's out of the country. Servicemembers will also need to obtain an international driver's license before getting on the roads overseas.

Shipped vehicles also may not arrive promptly, and will be inspected when they reach their final destination, so the group says military workers should plan on paying for the use of a rental car until their car makes it through the inspection.

The number of times military families need to pack up and move is generally far greater than it is for civilians. The website VeteransAdvantage says military families move roughly once every two years, while the average American relocates just 11 times throughout their lifetime. http://www.allstate.com/insurance-industry-news/auto-insurance-news/transfers-create-auto-issues-for-servicemembers-800335082.aspx Tue, 11 Jan 2011 09:42:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/michigan-unveils-driving-safety-course-800335062.aspx Drivers in Michigan who get a ticket for a minor violation may not have to deal with higher car insurance costs after state officials gave the green light to a program allowing good drivers to take an online driving safety course to avoid adding points to their record.

Under the program, eligible drivers who complete a three-hour Basic Driver Improvement Course and pass a test within 60 days of getting the ticket won't have the violation reported to their car insurance company.

"This new law provides drivers with a very unique opportunity," said Brian Makowski, president of O/E Learning, which will be running the course. "Not only will they be safer drivers but they will be able to avoid additional points on their driving record."

Makowski says studies have shown 70 percent of those who participated in the program didn't have any violations or at-fault crashes over the next nine years. Drivers can only use the program once.

Police also said the new law may improve overall driving safety by increasing officers' willingness to give out tickets instead of written warnings, information about which aren't shared between counties, the Grand Rapids Press reports. http://www.allstate.com/insurance-industry-news/auto-insurance-news/michigan-unveils-driving-safety-course-800335062.aspx Tue, 11 Jan 2011 09:36:20 http://www.allstate.com/insurance-industry-news/auto-insurance-news/cdc-1-in-7-americans-dont-buckle-up-800328419.aspx While wearing a seat belt has been proven to reduce the risk of being seriously injured or killed in a car accident by half, one in seven Americans still don't buckle up when they hit the road, according to a study by the Centers for Disease Control and Prevention (CDC).

According to the study, Oregon has the highest rate of seat belt use at 94 percent, while North Dakota was at the bottom of the list at 59 percent. States with primary seat belt enforcement laws, which allow police officers to pull over a car and issue tickets solely because someone is unbelted, had seat belt use rates of 88 percent, compared to the 79 percent reported in states without them.

Residents of the 19 states who still do not have primary enforcement laws made up 49 percent of unbelted drivers and passengers on the road in 2008, the CDC reported.

Getting caught without a seat belt can possibly lead to higher car insurance rates, in addition to increasing the risk for a crash-related injury. The National Highway Traffic Safety Administration reported 30,797 fatal motor vehicle crashes in 2009, many which probably could have been prevented if the occupants had been wearing a seat belt. http://www.allstate.com/insurance-industry-news/auto-insurance-news/cdc-1-in-7-americans-dont-buckle-up-800328419.aspx Thu, 06 Jan 2011 17:36:37 http://www.allstate.com/insurance-industry-news/auto-insurance-news/truck-sales-expected-to-rise-in-2011-800325761.aspx Hybrid vehicles have received a great deal of attention from the media, but trucks and mid-sized cars will end up being the winners in the showroom, according to Edmunds.com.

The website predicts truck sales will increase nearly 15 percent and SUV sales more than 21 percent next year. Hybrids, on the other hand, are expected to be more difficult to move off sales lots and see sales decline approximately 8 percent in 2011.

Sales for new and pre-owned vehicles can be tricky to predict. Edmunds.com senior analyst Karl Brauer says new cars may present a better deal to prospective vehicle buyers than they think.

"Ironically, thanks to reduced supply and increased demand, today many lightly used pre-owned cars are actually more expensive than new cars," says Brauer. "But, because that is counter-intuitive, many used car shoppers aren't even considering a new car."

There are, however, additional savings for motorists who decide to purchase a used vehicle beyond the initial price tag. Owners of pre-owned cars often receive lower auto insurance rates than those of newer vehicles.

Prices to repair newer vehicles are often higher, fueling the increased rates for car insurance coverage.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/truck-sales-expected-to-rise-in-2011-800325761.aspx Wed, 05 Jan 2011 17:43:56 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-vehicle-sales-edge-upwards-in-2010-800325754.aspx The automotive industry will be ending 2010 on a higher note than expected, according to data from J.D. Power and Associates.

The global marketing information company says new motor vehicles sales in December of this year are projected to be 19 percent higher than recorded in 2009. The estimates hold true even if inclement weather throws off sales somewhat at the end of the month, says J.D. Power and Associates executive director of global forecasting Jeff Schuster.

"The continuation of the strong performance in the retail market through December may be the confirmation that the industry has been looking for that the recovery has been re-engaged," says Schuster. "The likelihood of an extension of the tax cuts, in addition to a strong close in 2010, bodes well for the automotive market in 2011."

It's important for motorists to protect their new vehicle with the proper amount of car insurance. Rates can vary somewhat depending on make and vehicle model. While rates for new vehicles tend to be higher than those for pre-owned cars, policyholders may receive discounted auto insurance rates if the vehicle is equipped with safety and anti-theft features. http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-vehicle-sales-edge-upwards-in-2010-800325754.aspx Wed, 05 Jan 2011 17:41:33 http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-insurance-tip-use-common-sense-to-ward-off-thieves-800325653.aspx There are a number of factors taken into account when a company determines car insurance rates, including if the vehicle has anti-theft devices.

Edmunds.com spoke to former car thieves to get an idea of what motorists can do to reduce the likelihood of their vehicle being targeted by criminals. Some of the advice includes making sure keys are always removed from a vehicle when it’s parked, locking all doors and windows and parking in areas with adequate lighting.

Edmunds.com senior consumer advice editor Philip Reed says most of the suggestions shouldn't come as a surprise to motorists.

"Most of what we learned from an actual thief boils down to common sense, but there's nothing like hearing it from a professional to reinforce that these steps actually will keep most cars safe from theft," says Reed.

The age, location and model of the vehicle being insured are considered in addition to the driving record of the owner. Vehicles equipped with safety devices frequently help drive down rates.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/car-insurance-tip-use-common-sense-to-ward-off-thieves-800325653.aspx Wed, 05 Jan 2011 17:11:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-jersey-residents-paying-less-for-auto-insurance-800323965.aspx While New Jersey residents still have some of the highest auto insurance bills in the country, a new report from the National Association of Insurance Commissioners (NAIC) finds that those costs are going down.

Citing data from the study, the Star-Ledger reports the average driver in the Garden State paid $1,197 for car insurance during 2008 - the most recent data included in the report. That's down significantly from nearly $1,400 in 2004.

While the NAIC says state insurance costs shouldn't be ranked due to different coverage and benefits requirements, the paper said New Jersey auto insurance costs were third-highest in the country, trailing only Louisiana and Washington, D.C. Officials said it's likely because they choose higher levels of coverage and have pricier vehicles.

"In most states, drivers might have $5,000 to $10,000 worth of personal injury protection coverage. In New Jersey, 85 percent of the cars have $250,000 of coverage," Marshall McKnight, a spokesman for the state Department of Banking and Insurance, told the paper.

A reduction in accidents may also be helping to drive down auto insurance costs. According to state crash data, the number of auto accidents in New Jersey dropped by more than 3,000 from 2007 to 2008. http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-jersey-residents-paying-less-for-auto-insurance-800323965.aspx Wed, 05 Jan 2011 08:44:06 http://www.allstate.com/insurance-industry-news/auto-insurance-news/long-island-officials-work-to-stop-holiday-drunk-driving-800323933.aspx Officials in Long Island are working with several local taxi companies to stop holiday drunk driving by offering residents a free ride home, and then a free ride back to their car the next day if they've had too much to drink. They say the ride back to their vehicle can help avoid the reasoning of some drivers that they won't have a way to retrieve their car if they take a cab ride home.

"During this joyous time of year, our goal is to prevent or stop any horrible tragedies. If we can avoid one accident or someone from being injured it is well worth it," said Marianne Blessinger, president of a local taxi company.

The program started in mid-December and will run through the first of the year, when incidents of drunk driving are more common.

Data from the National Highway Traffic Safety Administration shows nearly one-third of all traffic deaths were alcohol-related, and that winter holidays are some of the deadliest driving days of the year. http://www.allstate.com/insurance-industry-news/auto-insurance-news/long-island-officials-work-to-stop-holiday-drunk-driving-800323933.aspx Wed, 05 Jan 2011 08:23:52 http://www.allstate.com/insurance-industry-news/auto-insurance-news/wintry-weather-calls-for-additional-car-maintenance-800322896.aspx With winter storms setting in around the country, car maintenance experts say drivers should take steps to ensure their cars are ready for the road.

Often the best tools for protecting a driver from slick and icy roads are the vehicle's tires, reported Ohio's Lancaster Eagle-Gazette. Chris Huddle, owner of a local tire shop, told the source that car owners need to consider their tires' air pressure first and foremost, since improperly inflated tires might leave them more susceptible to skidding off the road or even "floating" atop layers of snow and ice.

"This time of year, and actually the summer is just as important, maintaining proper air pressure is probably the single most important thing a driver can do for their tires," he told the paper.

Drivers should also ensure their tires aren't worn out and consider replacing them or installing snow tires if they are. Other preventative measures, such as packing an emergency kit with flares and blankets as well as reviewing one's auto insurance policy, are key to weathering winter driving.

Winter storms won't keep many drivers off the road this holiday season. AAA expects that from mid-December to the start of January, more than 1.4 million motorists will become stranded on the nation's highways and parking lots.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/wintry-weather-calls-for-additional-car-maintenance-800322896.aspx Tue, 04 Jan 2011 16:23:34 http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-offers-tips-on-having-elderly-driving-conversation-800308560.aspx As the baby boom generation ages, the average age of American drivers skews higher. Some elderly motorists might not have the reflexes or vision to operate a vehicle as safely as they used to, however, so it could fall to their sons and daughters to help them decide whether to stay on the road, according to CBS.

Early Show correspondent Michelle Miller presented one 88-year-old woman as an example. Jean Turek reportedly passed reaction and vision tests administered by an occupational therapist, but had a difficult time navigating roads and displayed impaired decision-making.

The news network says families need to have this type of discussion with any older relative who raises concerns behind the wheel, and they should be prepared for the talk to get heated. Nevertheless, it's a necessary step.

However, others point out there are a number of mobility resources available to older Americans who can no longer drive safely.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-offers-tips-on-having-elderly-driving-conversation-800308560.aspx Wed, 22 Dec 2010 21:08:40 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-drivers-licenses-in-california-mean-longer-wait-times-800308556.aspx The new supplier of ID documents for the California Department of Motor Vehicles (DMV) is experiencing production problems, creating a sizeable backlog and preventing many applicants from getting their new licenses until several weeks after their appointments.

Advanced new anti-counterfeiting technology built into each license, including hidden photos and raised lettering, are complicating production, according to the Sacramento Bee. Mike Marando, a DMV spokesman, told the paper details were being checked carefully.

"We are checking every single card. If there is so much as a smudge, we send it back," Marando said.

Of course, for many teen drivers, waiting for the actual document is the least of their worries. A greater concern should be performing well on knowledge and driving tests administered by the DMV, which are required before they can be considered legal drivers. Learning safe driving habits and traffic laws is key, experts say.
  http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-drivers-licenses-in-california-mean-longer-wait-times-800308556.aspx Wed, 22 Dec 2010 21:02:07 http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-two-cars-crash-into-same-office-800308548.aspx It sounds like the beginning of a joke, but it's not: Five hours after one older driver confused the brake and gas pedals and crashed through the front of Lakewood Chiropractic, the same thing happened again, according to a report in the Wichita Eagle.

The first crash happened before 10:30 a.m. on Tuesday, December 14, the paper said. Onlookers told the Eagle the elderly patient must have mixed up her vehicle's pedals while parking, causing her car to slam through into the waiting area of the clinic.

The second incident, which caused less damage, occurred in the early afternoon of the same day. Another patient made the same mistake, but this time only hopped the curb and broke some of the replacement glass from the first crash.

While no one was hurt seriously in either incident, the outcome could have been far worse. Older motorists in particular may want to brush up on safe driving habits. http://www.allstate.com/insurance-industry-news/auto-insurance-news/report-two-cars-crash-into-same-office-800308548.aspx Wed, 22 Dec 2010 20:48:57 http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-years-a-chance-to-check-insurance-coverage-800408467.aspx As January 1 rolls around, many may be thinking of how to stick to their New Year's resolutions.

However, turning the calendar to a new year may also provide the opportunity for some financial management regarding insurance coverage. Many experts note policies should be reviewed at least once a year to ensure owners have the proper amount of protection.

A number of factors could play into a need for new life, home or auto insurance coverage. Getting a better-paying job, for example, may lead to another car, additional possessions or a higher standard of living, all of which will require a look at policies.

Experts note getting married, having children or buying a home are all instances when people should review their insurance coverage. Even a divorce could lead to necessary policy changes.

When considering additional insurance, there are ways for consumers to save money. Getting multiple policies from one provider may lead to savings. Comparison shopping is also a tool policy owners can use. http://www.allstate.com/insurance-industry-news/auto-insurance-news/new-years-a-chance-to-check-insurance-coverage-800408467.aspx Wed, 01 Dec 2010 08:38:39 http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-ford-report-increase-in-consumers-buying-a-car-800294827.aspx Buying a car was on the minds of more Americans, according to sales reports from Ford and General Motors.

Both automakers said sales increased in October. In a release, Ford noted a 19 percent increase when compared to the same month last year, while GM reported a 13 percent rise.

Ken Czubay, Ford's vice president of U.S. marketing, sales and service, said the company's line of fuel-efficient vehicles helped with sales.

GM's vice president of U.S. sales operations Don Johnson said October's sales statistics show the company's plan is working as its brands grow.

"Our sales are up more than double the industry’s increase through October, and we've gained almost two points of market share," Johnson said.

Improving product quality may be one reason why consumers are buying a car from one of the two makers. An annual study from Consumer Reports showed both Ford and GM have made gains in their vehicles' reliability.

However, Consumer Reports also said Asian makers such as Toyota and Honda still carry higher marks. http://www.allstate.com/insurance-industry-news/auto-insurance-news/gm-ford-report-increase-in-consumers-buying-a-car-800294827.aspx Thu, 11 Nov 2010 21:06:45 http://www.allstate.com/insurance-industry-news/auto-insurance-news/plans-underway-to-roll-out-more-electric-vehicles-800292057.aspx Hybrid and electric vehicles used to be just for environmentalists. Now, even the not-so-eco-conscientious are cruising in earth-friendly rides. In order for widespread adoption of cars that don't operate on gas, change is needed in the private and public sector.

Ford, for example, has plans to produce several new electric vehicle models. The auto maker is collaborating with utilities and officials to produce charging stations and other necessary facilities to help expand adoption of the new vehicles.

Chicago Department of Environment Commissioner Suzanne Malec-McKenna says the new cars will help reduce pollution and meet environmental goals.

"Electric vehicles will be a key new technology in helping to reach the goals of the Chicago Climate Action Plan," says Malec-McKenna. "We are excited about bringing electric vehicles to Chicago so that residents and businesses can take full advantage of the benefits these vehicles offer." http://www.allstate.com/insurance-industry-news/auto-insurance-news/plans-underway-to-roll-out-more-electric-vehicles-800292057.aspx Thu, 04 Nov 2010 23:58:56 http://www.allstate.com/insurance-industry-news/auto-insurance-news/is-my-car-insured-if-a-friend-or-family-member-not-on-my-policy-is-driving-800346889.aspx Auto insurance is designed to follow the car, which means that the coverage you purchased for your vehicle will cover the car regardless of who’s driving it.

That said, in order to be fully covered by your insurance policy, the person driving your car must have permission (verbal or written) to do so.

The person driving your car must be an occasional driver only, not a regular driver or user of the vehicle. If they get into an accident while driving your car (and considering they had your permission to drive the car at the time of the accident), your auto insurance will be considered the primary coverage in any accident-related claim that’s made. The driver’s auto insurance coverage will be considered a secondary coverage, and will only activate if damage claims exceed the limits of your policy.

Insurance is subject to availability and qualifications. Coverage is subject to the terms, conditions, limitations and exclusions of the policy. Please read an Allstate policy for full coverage details. Only you can decide what's best for your unique situation.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/is-my-car-insured-if-a-friend-or-family-member-not-on-my-policy-is-driving-800346889.aspx Fri, 17 Sep 2010 11:52:13 http://www.allstate.com/insurance-industry-news/auto-insurance-news/poll-shows-allstate-ranks-high-for-auto-insurance-reputation-800298702.aspx Allstate is ranked as one of the most reputable auto insurance companies, according to a recent poll from consulting group Market Force Information.

Of consumers polled, 21 percent said Allstate had one of the best reputations, making it one of the top auto insurance companies looked at by the survey. When considering the companies, Market Force Information said their claims process was one of the main factors.

The poll showed price, however, was the most important factor for 59 percent of respondents when asked why they chose their auto insurance provider. Other decision factors included whether the company provides other types of coverage, the financial stability of the insurer and recommendations from friends.

Some of those polled did opt to switch auto insurance companies in the last year. Ten percent said they went to a new provider, with most citing poor service or fee and rule changes as the cause.

Consumer Reports also came out with a survey of insurance customers recently. It showed most people were satisfied with the claim-filing process. http://www.allstate.com/insurance-industry-news/auto-insurance-news/poll-shows-allstate-ranks-high-for-auto-insurance-reputation-800298702.aspx Fri, 10 Sep 2010 09:04:36 http://www.allstate.com/insurance-industry-news/auto-insurance-news/tips-for-lowering-teen-car-insurance-costs-800343119.aspx At a rate of 5,000 per year, car accidents lead to more teenage deaths per year than anything else. This is cause for concern for parents and loved ones of teenagers, of course, but it's also a problem for teenagers' bottom line.
Because teenagers are the age group most likely to get into an accident while on the roadways, they tend to pay more in car insurance costs than any other age group. Consumer advocacy groups are aware of this fact, and offer a number of tips to help teens' defray some of the cost.

Perhaps the easiest tip is to purchase a used car. This won't come as welcome news for teenagers looking for new wheels, but because used cars cost less to fix in the event of an accident, they cost less to insure.

Other tips from consumer advocacy groups include parents adding their teenager to their car insurance policy instead of the teenagers taking out their own, performing well in school, and dropping collision coverage from their policy. This should only be done, however, when the car a teenager is driving isn't worth repairing should it be involved in an accident.
   http://www.allstate.com/insurance-industry-news/auto-insurance-news/tips-for-lowering-teen-car-insurance-costs-800343119.aspx Mon, 14 Jun 2010 08:53:21 http://www.allstate.com/insurance-industry-news/auto-insurance-news/is-there-a-difference-in-your-car-insurance-premium-if-youre-married-or-single-800325685.aspx Getting married sometimes makes a difference in a person's insurance rates, but not always. It depends on several factors, like what state you live in and how old you are. The best way to find out what the effect will be on your policy is to talk to your agent or get an auto insurance quote online.

If you and your partner have separate car insurance policies now, your agent might also have some helpful tips for making the switch to a joint policy. http://www.allstate.com/insurance-industry-news/auto-insurance-news/is-there-a-difference-in-your-car-insurance-premium-if-youre-married-or-single-800325685.aspx Sat, 05 Jun 2010 17:19:09 http://www.allstate.com/insurance-industry-news/auto-insurance-news/im-getting-married-how-does-that-affect-my-auto-insurance-800341898.aspx Whether you’re planning a wedding, enjoying a honeymoon, or are in newly-wedded bliss, marriage is a very exciting time. That much is common knowledge.

But what you may not know is that marriage might also save you money on your auto insurance.

When it comes to insurance, it’s smart to “marry” your assets as well. Many insurance companies—including Allstate—offer customers discounts for multiple cars, as well as multiple policies—such as auto, home, and life insurance. Plus, a single, streamlined policy can help consolidate your payments by reducing the number of bills you receive.

Talk to your Allstate agent about how you can save money on your policy now that you’re a newlywed. Or, if you’re not with Allstate and you’re curious about the many coverage options Allstate offers, it’s easy to shop around. Get a Ballpark Estimate without even giving your name or other personal information, or get a personalized quote in a matter of minutes. You may be surprised how affordable great coverage can be.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/im-getting-married-how-does-that-affect-my-auto-insurance-800341898.aspx Thu, 13 May 2010 16:46:08 http://www.allstate.com/insurance-industry-news/auto-insurance-news/can-i-lower-my-auto-insurance-premiums-by-upgrading-my-vehicles-safety-equipment-800325202.aspx A lot goes into calculating your car insurance premium: your driving record, your age, the car you drive, where you live, and other things. One of those other things is advanced safety equipment that could keep you and your passengers from getting injured in a crash.

Because these features can prevent injuries, they help you drive more safely. And that, in turn, lets the insurance company offer you a lower rate.

So which features can help you save on auto insurance? The list varies by company and by state. For example, Allstate offers auto insurance discounts if your car came with:

Airbags
Motorized seatbelts
Anti-theft devices (in certain states)
Anti-lock brakes

Anti-theft devices can be installed at any time. But the rest of these things are factory-installed, so it's a good idea to keep them in mind while you shop for your next car.

Speaking of your next car, don't forget that the car itself can be the biggest "safety feature" of all. Picking a model with high safety ratings can get you a better auto insurance rate right off the bat. (To find out which models are safest, do a Google search for "safest cars," or talk with an Allstate Agent.)  http://www.allstate.com/insurance-industry-news/auto-insurance-news/can-i-lower-my-auto-insurance-premiums-by-upgrading-my-vehicles-safety-equipment-800325202.aspx Wed, 05 May 2010 12:31:06 http://www.allstate.com/insurance-industry-news/auto-insurance-news/why-should-i-drive-a-hybrid-vehicle-800321778.aspx As gas prices keep rising, hybrids are looking better than ever. Why?

1. Fuel efficiency.

If you're sick of paying $40, $50, $60, or more to fill up, a hybrid could be what you're after. In fact, you can get 20 or 30 more miles to each and every gallon you put into a hybrid car.

Of course, the initial investment means it'll take a while to start truly saving money. Over the long run, though, driving a hybrid could free up some money in your budget.

2. Lower emissions.

A hybrid car uses a combination of electricity and gasoline. You can feel good knowing that a hybrid car has less impact on the earth than other cars you've owned.

3. Tax incentives.

Buying a hybrid could knock off up to $3,400 off your federal tax bill this year—and your state might offer even more incentives.  http://www.allstate.com/insurance-industry-news/auto-insurance-news/why-should-i-drive-a-hybrid-vehicle-800321778.aspx Tue, 04 May 2010 10:29:07