http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips.aspx 60 en-us http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/tips-to-turn-a-vehicle-into-a-gas-sipper-800770622.aspx With gas prices continuing to rise, motorists are going to great lengths to save fuel, whether by purchasing a new vehicle, dramatically cutting back on the number of miles they travel or working from home more often to avoid commuting.

However, according to The Car Care Council*, drivers do not have to bend over backwards to reduce their gas costs. It may be as simple as changing one's driving technique.

Drive smoothly

For instance, CCC notes that just as the type of car being driven can increase gas mileage, how it is being driven can also affect fuel savings. Driving in a herky-jerky fashion can cause vehicles to burn more fuel, so it is recommended that motorists avoid sudden starts and stops and to go the speed limit. Smoothly transitioning between the gas and brake can also help reduce the wear and tear that comes with car ownership.

Make tune-ups a priority

Another standard task that every driver should do is vehicle maintenance. However, CCC notes that tune-ups often go neglected. By scheduling a check-up by a licensed auto mechanic, motorists can ensure that everything is in good working order and may be able to reduce their trips to the gas station. For instance, the Car Care Council says that tune-ups can spot a faulty oxygen sensor. Having it replaced with a working one can lead to 40 percent savings on gas.

Are the tires inflated properly?

Something else motorists should look at is their tire pressure. The CCC says that if every motorist's tires in the United States were to be properly inflated, two billion gallons of gas would be saved. Drivers can determine how much air to fill their tires with by looking at their owner's manual.

De-clutter by removing excess weight

When travelling from place to place, it is also worthwhile to offload any excess weight that is not absolutely necessary. Belongings can add up over time, so it may be a good idea to de-clutter, while making sure to hold on to emergency items such as spare tires, flares and first-aid kits. The lighter load requires less energy for the vehicle to move, thereby resulting in less gas consumption.

Is the gas cap cracked or loose?

Finally, after a fuel-up, check the gas cap to make sure it is not loose or damaged. CCC notes that if it is not screwed on tight, much of what is pumped can evaporate.

"These five simple steps will help minimize the amount of pollutants from your vehicle and keep more 'green' in your wallet through better fuel economy," said Rich White CCC's executive director.

*according to the Car Care Council on April 10, 2012
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/tips-to-turn-a-vehicle-into-a-gas-sipper-800770622.aspx Tue, 08 May 2012 13:27:45 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/carscom-ranks-most-cost-effective-hybrid-cars-800762917.aspx With gas prices averaging more than $4 per gallon, many used and new automotive buyers are placing a premium on a car's ability to save fuel. With these consumers in mind, Cars.com* recently released a list of the best "Hybrids for the Money," as determined by the website's automotive gurus.

The website broke down the best hybrids for the money by class, such as best hybrid among subcompacts, compacts, midsize, family sedans and compact crossovers.

Toyota Prius c overall winner

The overall winner was the subcompact 2012 Toyota Prius c. With a manufacturer's suggested retail price of $18,950, the Prius c gets 53 mpg in the city and 46 mpg on the highway.

"This car stands well above the rest when it comes to getting the most bang for the buck," said David Thomas, managing editor at Cars.com.

Toyota was also given the top spot in the midsize and family sedan categories. For instance, the 2012 Toyota Prius won for best compact, getting 51 mpg in the city and 48 on the highway at an MSRP of $24,000. The 2012 Toyota Camry Hybrid, meanwhile, won for family sedan at $25,900, averaging 43 mpg on city streets and 39 mpg out on the highway.

In the compact category, the 2012 Honda Insight received the nod for best hybrid, boasting an MSRP of $18,350 and getting 41 mpg in the city and 44 mpg on the highway.

"Gas prices remain high as we approach the summer driving season, which adds even more relevance to our annual look at how much today's hybrids actually save buyers," said Thomas. "While high mileage figures may seem like they'd impact your family's budget in a positive way, you also have to look into the efficient car's sticker price to know if making the switch would be a wise decision."

But before deciding on what to buy, automotive enthusiasts may want to look at other features of a hybrid that will give it more lasting appeal.

Study shows 35 percent buy hybrids again when returning to market

According to a separate study conducted by vehicle research firm Polk**, just 35 percent of hybrid vehicle owners in 2011 chose to purchase another hybrid when it was time for them to buy a new car.

While they were less likely to purchase another hybrid, car buyers were more likely to stay with the brand that their hybrid had. For instance, 60 percent of Toyota hybrid owners decided to purchase another Toyota when returning to the market.

Brad Smith, director of Polk's loyalty management service, said the study's results are something dealers should take note of for marketing purposes.

"Having a hybrid in the product lineup can certainly give a brand a competitive edge when it comes to attracting new customers," said Smith. "The repurchase rates of hybrid vehicles are an indication that consumers are continuing to seek alternative solutions to high fuel prices."

* according to Cars.com on April 2, 2012
** according to Polk on April 9, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/carscom-ranks-most-cost-effective-hybrid-cars-800762917.aspx Fri, 27 Apr 2012 11:49:25 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/low-credit-scores-continue-to-hinder-many-americans-financial-progress-800758271.aspx Your credit score plays a significant role in your overall finances, influencing everything from your ability to buy a home, secure a job and receive the most competitive interest rates and conditions. In addition, some insurance companies also factor in your credit score when setting auto insurance premiums and many property owners will pull your credit file as well when drafting a tenant agreement. Millions of Americans suffered credit score damage following the economic meltdown and housing crisis, and new data shows that many are still struggling to get their scores back on track.

FICO credit scores range from 300 to 850 with the higher scores signifying a strong credit profile. However, a recent study conducted by American Consumer Credit Counseling* reveals 40 percent of respondents have credit scores that fall below 620, which is typically the subprime credit threshold. In addition, more than 20 percent of study participants reported scores below 580, which makes them largely ineligible for mortgages, home loans and traditional credit cards. Only 18 percent of respondents reported having a score above 700.

"Nearly four years of economic sluggishness has taken a toll on people's household finances, and it shows in their credit scores," said ACCC president and CEO Steve Trumble. "Banks are lending again. Mortgages are being underwritten. And the auto industry is eager to get people into new cars. But the lending standards are tougher than ever, so having a clean financial profile and a good credit score is critical."

Americans unaware of credit standing

The study's authors also found that many Americans are unaware of where they stand in terms of their credit, with many admitting that they do not know their credit score. While 17 percent of adults said they are unaware of their credit score, the authors noted regional differences in how in tune Americans were with their credit. Roughly a third of respondents in both the Northeast and South said they do not know what their score is, while those living in the Midwest and West were more likely to be aware of their credit standing.

Experts say more Americans should take a stronger interest in their credit standing as the economy, namely because their credit profiles will affect their financing eligibility, job searches and insurance rates.
*According to the American Consumer Credit Counseling on April 4, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/low-credit-scores-continue-to-hinder-many-americans-financial-progress-800758271.aspx Sun, 22 Apr 2012 17:00:47 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/manage-student-loan-debt-wisely-800748946.aspx Student loan debt in the United States recently topped $1 trillion and surpassed credit cards as the most common form of debt Americans hold. As more young adults grapple with high student loan balances and recent graduates try to enter the struggling job market with thousands in education loans to pay off, many Americans are facing more financial hardship as they start out in life.

However, there are several ways young adults can better manage their student loans to avoid falling behind on payments and defaulting on their obligations. A recent report released by Consumer Reports* highlights the many ways in which young adults can gain a handle on their balances and still plan for their futures.

First, it is important for young adults to know exactly how much money they owe and which lenders they need to pay. Getting the full picture of student debt is crucial to developing a budget that factors in monthly payments and still allows them to meet their needs and save money. In addition, borrowers should make sure they have all the specifics of their balances at their disposal. This includes the name and contact information of the lender, when their repayment period begins, and where to submit each payment.

After they have this information, adults can begin exploring repayment options. Most student lenders offer several repayment plans, and weighing these programs against their income can help borrowers choose the one that is best for them. Some plans may carry a shorter repayment term, while others are based on income. Adults should keep in mind that the longer the loan term, the more they will pay in interest over the life of their loan.

Borrowers should also look at interest rates for each repayment option before making a decision. In some cases, young adults with federal student loans may be eligible to consolidate their balances, which can save them money on interest and provide them with one payment each month.

Other options

There are certain career fields young adults can enter that offer loan forgiveness programs or help workers repay their student debt. For example, young adults who work for nonprofits, or go into public sector fields, such as teaching, police work, fire fighting and public health may receive some financial assistance to help them cover their loan balances. In addition, many volunteer groups offer the same types of programs to help members tackle their debt.

Even with the right student loan repayment plan, young adults who are having difficulties finding a job or earning an entry-level salary may struggle to keep up with payments. Adults who think they may not be able to make a payment should contact their lender immediately to seek other repayment options. Defaulting on student loan payments can have extremely negative effects on individuals' credit scores, so it is important to keep lenders up-to-date on what is going on. In some cases, lenders may be able to suggest a financial solution that a borrower is not aware of.

*According to Consumer Reports on March 27, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/manage-student-loan-debt-wisely-800748946.aspx Mon, 09 Apr 2012 17:23:47 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/reduce-pain-at-the-pump-by-driving-calmly-800748921.aspx Gas prices can take a heavy toll on drivers' wallets, especially those who commute long distances for work. In addition, with gas prices over $4 per gallon, many individuals are trying to figure out ways to reduce the frequency that they stop for gas. While gas prices may be out of your hands, there are several actions you can take to reduce how often you have to stop to fill up your tank.

Some drivers may not realize that their driving habits and auto maintenance have an effect on their vehicle's energy output. By changing certain behaviors, you can put less strain on your car and raise its fuel efficiency, according to the Car Care Council*. One of the easiest—and safest—actions drivers can correct is to observe the posted speed limit. Driving at high speeds, which are typically defined as those above 60 mph, significantly decreases gas mileage. The same is true for drivers who make frequent and sudden stops and starts and other erratic moves. According to the CCC, aggressive driving can reduce gas mileage by as much as 33 percent on highways and 5 percent in cities.

Second, several behaviors can physically weigh a vehicle down and force it to work harder. Drivers who carry heavy items in their vehicles may be unknowingly straining their vehicle's fuel efficiency. By removing 100 pounds from their trunks, drivers can boost their fuel economy by 1 to 2 percent.

Vehicle maintenance

Small upkeep tasks, such as keeping tires properly inflated, making sure the vehicle is tuned and replacing dirty spark plugs can make a significant difference on a driver's fuel economy. In addition, keeping filters clean and clear of debris can have a positive impact on a vehicle's fuel efficiency. Drivers can improve their gas mileage by 14 percent by simply cleaning their car's air filter, especially in older models.

"Some motorists think they are saving money when they put off needed vehicle maintenance," said CCC executive director Rich White. "What they don't realize is that neglecting routine maintenance can end up costing a lot more. Keeping your car running efficiently and adjusting your driving behavior are the best ways to improve your vehicle's fuel economy and keep more money in your pocket."

*according to the Car Care Council on March 7, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/reduce-pain-at-the-pump-by-driving-calmly-800748921.aspx Mon, 09 Apr 2012 17:11:28 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/take-measured-steps-when-purchasing-your-first-home-800748858.aspx First-time homebuyers are often excited at the prospect of owning their own house and taking advantage of the benefits that homeownership has to offer. However, the process of buying a home can also seem overwhelming, and there are several pre-emptive steps homebuyers can take to make the overall mortgage process easier.

When it comes to making such a large investment, a buyer's finances should be central in their decision-making process, according to M&I*.

With this in mind, M&I experts say that buyers should first assess whether homeownership is truly affordable before entering into mortgage negotiations. Most industry professionals agree that mortgage payments should not account for more than 28 percent of a homeowners' take-home pay. Otherwise, they may be at risk of stretching themselves too thin. However, M&I also factors other homeownership costs into the 28 percent rule, including property insurance and taxes.

In addition to housing costs, buyers should also assess their other financial obligations, which should not exceed 40 percent of their total income. This includes loans, utilities, credit card debt and other lines of credit. Buyers who meet these two debt stipulations may be in a better position to afford a home than those who are struggling to pay down other balances.

"The first step is figuring out how much you can afford to spend on homeownership, which means an honest assessment of the household balance sheet," said Tim Massey, M&I Indiana regional president. "Once you have a clear idea of where you stand financially, you can then make a responsible decision of what you can afford, including your down payment, monthly mortgage costs and other expenses like utility costs, property insurance and taxes."

Saving for a sufficient down payment is also an important part of the home buying process. The larger the down payment, the less interest you will pay over the life of your mortgage, which can save you thousands of dollars over time. You may benefit from saving for a down payment early on and opening a high-yield savings account to hold your funds.

Which mortgage is right for you?

Choosing a mortgage will play a large role in your monthly payments from here on out, so it is important to weigh your options carefully against your finances before making a decision. Choosing a shorter mortgage, such as a 20-year, rather than a 30-year, mortgage will save you money on interest payments over the life of your loan. However, use a mortgage calculator to make sure your payments are still manageable if you choose a shorter-term mortgage. The same care should also be taken when choosing a fixed-rate or variable-rate mortgage. While variable-rate mortgages can be more advantageous depending on the market, they can also be unpredictable and make it more difficult to predict monthly payments. In addition, record-low fixed-rates have made this option appealing to homeowners who are trying to stick to a tight budget because they can more easily calculate their monthly payments.

*According to M&I on March 8, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/take-measured-steps-when-purchasing-your-first-home-800748858.aspx Mon, 09 Apr 2012 16:53:11 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/strategies-for-saving-more-money-800746330.aspx Nearly one-quarter of the way through 2012, many American consumers resolved to get out of debt this year may be falling short of their goals. To help, CNBC* has listed some of the best ways to save money.

Price insurance quotes

One cost-saving method is to shop around for insurance. The news source notes that by spending as little as 30 minutes at an insurance website, policyholders can save themselves hundreds of dollars by switching to a different insurer or by taking out multiple plans with one provider, such as an auto and home insurance policy.

CNBC also says policyholders can save money by increasing their deductible. A deductible is the amount of money the policyholder pays for a claim before the insurer picks up the difference. By raising the amount, consumers will pay more money up front, but they may wind up saving money in the end because their premiums will be lower.

Spend smart and use cash

Another way is to avoid spending with credit cards as much as possible. CNBC notes that variety of studies suggest consumers tend to buy more frequently with credit cards than with cash. Not only do they tend to buy more, but also they tend to spend more because of the interest charges that may apply. Paying out of pocket for purchases ensures that consumers will avoid the excess fees that come with buying via credit card.

Saving more money can also be realized by making fewer discretionary purchases. CNBC notes that instead of getting take-out every night, people should try to make their own meals more often. While there is nothing wrong with eating out now and again, consumers should try to make it more of an occasional treat rather than an everyday event.

While it may seem counterintuitive to buy many things at once, buying in bulk can yield savings as well, CNBC points out. For instance buying several rolls of toilet paper can wind up costing consumers half of what they would spend if they purchased rolls on an as-needed basis. This standard generally applies with other consumables as well, such as beverages and vitamins.

Save a little, earn a lot

Another strategy is getting into the habit of saving a set amount at the beginning of each month. For example, CNBC notes that by putting away $50 every month, a person will have at least $600 by year's end. This total could be even more if consumers hold the money in a savings account or a CD. This money can go toward retirement or can be used as an emergency fund.

Stop using incandescent bulbs

Enhancing savings can be further accomplished simply by changing light bulbs with ones that are more energy efficient. According to electricity use statistics from 2007, Americans saved $1.5 billion by switching from regular incandescent light bulbs to compact fluorescent lights. Energy Star notes that if every home replaced one light bulb with a CFL, annual energy costs would drop by as much as $600 million, CNBC reports.

*according to CNBC on March 26, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/strategies-for-saving-more-money-800746330.aspx Thu, 05 Apr 2012 14:02:18 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-credit-scoring-works-800746321.aspx To help consumers better understand how to manage their finances, MarketWatch* recently detailed how credit scoring works. As the site notes, lenders use credit scores to determine how likely consumers are to pay their bills.

"Your score can be updated every time there's a new piece of information," Sarah Davies, senior vice president of analytics at VantageScore Solutions, told MarketWatch.

Furthermore, Davies noted that as much as 70 percent of credit scores can change by 20 points within a three-month period. This type of variability is caused by consumers' credit behavior, such as missing a bill payment.

Scores determined by kinds of debt, payment history

More than anything else, however, a credit score is determined by how timely consumers are with paying their bills and the amount of debt they have. For instance, while excessive credit card debt could cause a score to lower, mortgage and car loans generally carry more weight and actually promote a good credit mix.

MarketWatch also indicates that a credit score can have an influence on many aspects of a person's life, such as the interest rate homebuyers will ultimately wind up paying on a mortgage and what their payments will be for car loans and auto insurance plans. The higher a score is, the more likely it is they will pay lower interest rates.

In addition, while credit scores are important, Davies says consumers should not be hung up on their scores specifically.

"Consumers should be credit managers, not credit-score managers," Davies told MarketWatch.

That is because scores are not fixed among the three credit-reporting agencies, namely TransUnion, Equifax and Experian. Beverly Harzog, a credit card analyst with Credit.com, says lenders do not always report the same things equally, which leads to variability among the agencies.

Pay off debts as early as possible

To more effectively manage credit, financial experts say the best method is to stay on top of your weekly or monthly bill payments in as time a manner as possible. While it is never a good thing to miss a payment, some bills will have more an impact on a score than others, such as missing a mortgage payment. Maintaining several consecutive months of making mortgage payments will help to raise that score, but it will likely take longer to improve than if a credit card payment was missed.

*according to MarketWatch on March 14, 2012
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-credit-scoring-works-800746321.aspx Thu, 05 Apr 2012 13:59:32 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/five-ways-consumers-can-save-more-gas-800740751.aspx With the average cost of regular unleaded nearing $4 a gallon and expectations that could reach $5 by Memorial Day, TrueCar.com* is supplying motorists with some gas-saving tips.

Affordable vehicles that sip gas

Recently, the car pricing and automotive trend website released a report on some of the most affordable new 2012 vehicles that also get good gas mileage. These included the Ford Focus, Ford Fiesta, Honda Civic Hybrid and Hyundai Sonata, all of which cost less than $27,600. In addition, the cars all got at least 33 miles to the gallon, with the Civic Hybrid getting 44 mpg.

But as helpful as buying a new car that's fuel efficient may be, Jesse Toprak, vice president of market intelligence at TrueCar.com, says driving performance and regular maintenance are every bit as crucial.

"Your driving behavior and making sure your car is properly maintained can really help save on fuel economy," said Toprak. "Consumers should take advantage of the technology at their fingertips, providing them with the cheapest gas based on their current location."

Fuel-saving apps

Some of the technology Toprak refers to include mobile-based applications people can download to their electronic devices such as tablets and cellphones. For instance, GasBuddy.com and the GPS application called Waze help motorists locate gas stations in their area that offer the lowest fuel prices.

Avoid premium gasoline

Once motorists get to their fueling station, TrueCar.com advises them not to use premium gas. Some mistakenly believe that buying a more expensive grade of fuel will wind up costing them less in the end because their gas will last them longer. However, TrueCar.com notes that the only time one should fuel with premium gasoline is if the vehicle requires it. Even if it is required, most cars will still work fine with regular unleaded.

Practice good automotive maintenance

Another way to make gas last longer is by completing regular maintenance. TrueCar.com says that by making sure the oil is changed every 5,000 to 7,000 miles - in addition to having a new air filter installed on an as-needed basis – it can help motorists conserve more gas.

Drive smoothly, not aggressively

Aggressive driving can cause gas to burn at a faster pace as well. To avoid this, TrueCar.com recommends gently applying the gas when accelerating rather than pushing hard. In addition, it is best to apply the brakes in a smooth manner as well, as jamming the brakes can reduce fuel economy by as much as 33 percent.

*according to TrueCar.com on February 28, 2012
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/five-ways-consumers-can-save-more-gas-800740751.aspx Thu, 29 Mar 2012 11:17:08 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/lending-standards-may-exclude-some-creditworthy-people-from-mortgage-borrowing-800739849.aspx The housing market has created obstacles for all parties involved, ranging from mortgage borrowers and renters to lenders and property insurers. The burst of the housing bubble prompted some lenders to take on less risk in the form of rigid lending standards and credit requirements. While these new eligibility rules were intended to prevent borrowers from taking on mortgages they could not truly afford, analysts now say that these tight conditions may also be restricting creditworthy Americans from buying a home.

Federal Reserve chair Ben Bernanke highlighted the many obstacles creditworthy mortgage seekers were facing, quoting the Federal Reserve Housing White Paper to explain their challenges.

"The extraordinary tight standards that currently prevail reflect, in part, obstacles that limit or prevent lending to creditworthy borrowers," according to the paper*. "Tight standards can take many forms, including stricter underwriting, higher fees and interest rates, more stringent documenting requirements, larger required down payments, stricter appraisal standards and fewer available mortgage products."

Reasons lending is tight

The shaky economy is only one of the many reasons lenders are being more cautious extending financing to potential buyers. Analysts say that the costs of servicing loan defaults can be over-burdensome for lenders, while other banks are skittish about being forced to repurchase bad loans, according to the Washington Post**.

Other industry professionals, such as Bank of America representative Jerry Dubrowski, say that tight lending standards are a response to the previously slack lending conditions that contributed to the housing bubble.

"The standards were probably too loose in the beginning, and that tightening will occur," Dubrowski told the Post, adding that fears over repurchase mandates are not contributing to stricter lending criteria.

Future of housing

The housing market remains in a state of limbo, and experts agree that a number of factors will determine where the housing market heads in the next few years. While affordability and mortgage rates remain at record lows, many Americans are turning to rental units rather than the complicated process of obtaining a mortgage. However, a spike in rentals is likely to push up prices, and some analysts say higher rental rates may push Americans back toward more affordable mortgage terms.

*according to the Federal Reserve Housing White Paper on January 4, 2012
**according to the Washington Post on March 1, 2012
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/lending-standards-may-exclude-some-creditworthy-people-from-mortgage-borrowing-800739849.aspx Wed, 28 Mar 2012 14:15:57 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/weak-willpower-cited-as-a-reason-for-poor-financial-health-800735562.aspx New Year's resolutions aside, many Americans make goals throughout the year to repair their financial condition, improve their health, boost their retirement savings or better their future. However, setting a goal and accomplishing it are two different things, and many Americans find themselves enthusiastic during the first weeks of their venture and then progressively discouraged when they don't see immediate results. This often results in many individuals giving up on their goals and settling back into their usual behaviors before they have had the opportunity to make significant strides.

According to a recent report by the American Psychological Association*, a large majority of Americans cite a lack of willpower as the No. 1 reason they give up on their goals. The study shows that 93 percent of adults polled made some sort of goal or resolution to change one aspect of their lives in 2012. The most common goals were those related to improving health, with 57 percent saying they wanted to lose weight, 50 percent making a goal to eat healthier and 41 percent promising to exercise more. Financial related goals came in second, with 52 percent saying they wanted to save money and 37 percent promising to pay off debt.

"Research shows that setting goals, as well as tracking progress and seeking out a community of support, can be tremendously effective in helping people increase their self-control and lead healthier lives," said APA CEO and executive vice president Norman Anderson.

However, 27 percent named a lack of willpower as the reason they did not achieve their goals, while 26 percent said time constraints were their primary obstacle.

Solutions to the problem

Although many study participants agreed that weak willpower was the leading reason they failed to achieve their goals, 71 percent said they believe that willpower can be learned and help them accomplish future goals. The study's authors agreed.

"Self-control can be learned and strengthened," said Steven Breckler, APA's science directorate executive director. "For example, avoiding the sources of temptation and planning ahead are effective techniques for maintaining self-control. Research shows that exercising your willpower in one situation may drain your self-control for other situations that immediately follow. Therefore, just like with physical exercise, it is smart to avoid taking on too much at once. First, focus on one goal, strengthen your willpower, and then take on more goals over time."

Many experts recommend setting milestones that lead up to a larger goal, rather than diving in all at once, which may place too many expectations on a goal setter. For example, adults who are saving up for a down payment can start small by agreeing to save a certain amount month-by-month, rather than trying to save one lump sum amount a year from now. By viewing goals in smaller terms, adults may be less likely to feel overwhelmed after months of modest progress.

*according to American Psychological Association on February 15, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/weak-willpower-cited-as-a-reason-for-poor-financial-health-800735562.aspx Thu, 22 Mar 2012 13:55:59 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/credit-card-debt-plummets-in-many-areas-800729533.aspx A new report suggests that Americans' credit card debt has dropped considerably over the past two years. According to credit rating agency Equifax*, of the 100 largest metro areas in the country, 60 saw double-digit declines in the percentage of income owed to credit card providers.

The Metropolitan Statistical Areas that saw the most precipitous declines in credit card debt were in four states, mainly Florida, Louisiana, Washington and California, which was home to the most cities—five—that saw the most significant declines.

Trey Loughran, president of Equifax's Personal Solutions business, noted the results of the report suggest that individuals have gone to great lengths to fix their money problems.

"It is interesting that [metropolitan statistical areas] from some of the states hardest hit by the recession showed some of the biggest reductions in credit card debt," said Loughran. "This suggests that consumers from these hardest hit areas have been especially cautious in their spending and diligent in paying down their credit card debt."

Major declines seen in some cities

The report also detailed the specific MSAs that experienced the biggest drops in credit card debt on a year-over-year basis. The Florida city of Port St. Lucie saw average credit card debt tumble nearly 24 percent when comparing the fourth quarter of 2011 with the same period in 2010. Ocala, Florida, was second, down nearly 21 percent. Rounding out the top five cities with the most dramatic dip in average credit card debt were Bremerton-Silverdale, Washington; Shreveport-Bossier City, Louisiana; Bakersfield-Delano, California and Northport-Bradenton-Sarasota, Florida.

Despite the downturn in what consumers owe credit card companies, Equifax also reports that credit card debt is still sizable. Overall, American households owe more than $800 billion to credit card companies alone, not taking into account other debts such as mortgages or student loans. In October 2008, consumers' back payments to credit card providers were in excess of $12 trillion.

Auto loan delinquencies dip

Consumers are also getting better at paying off their other debts. On the heels of Equifax credit card report comes a separate one from Experian Automotive**, which indicated that in the final quarter of 2011, loan delinquencies diminished. The 60-day delinquency rate dropped 9.5 percent on a year-over-year basis, while 30-day delinquencies weakened 6.5 percent during the same stretch.

Melinda Zabritski, director of automotive lending at Experian, said the results of the report indicate it may be an ideal time to buy a new car.

*according to Equifax on February 21, 2012
**according to Experian Automotive on February 23, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/credit-card-debt-plummets-in-many-areas-800729533.aspx Wed, 14 Mar 2012 11:37:44 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/weak-willpower-cited-as-a-reason-for-poor-financial-health-800725449.aspx New Year's resolutions aside, many Americans make goals throughout the year to repair their financial condition, improve their health, boost their retirement savings or better their future. However, setting a goal and accomplishing it are two different things, and many Americans find themselves enthusiastic during the first weeks of their venture and then progressively discouraged when they don't see immediate results. This often results in many individuals giving up on their goals and settling back into their usual behaviors before they have had the opportunity to make significant strides.

According to a recent report by the American Psychological Association*, a large majority of Americans cite a lack of willpower as the No. 1 reason they give up on their goals. The study shows that 93 percent of adults polled made some sort of goal or resolution to change one aspect of their lives in 2012. The most common goals were those related to improving health, with 57 percent saying they wanted to lose weight, 50 percent making a goal to eat healthier and 41 percent promising to exercise more. Financial related goals came in second, with 52 percent saying they wanted to save money and 37 percent promising to pay off debt.

"Research shows that setting goals, as well as tracking progress and seeking out a community of support, can be tremendously effective in helping people increase their self-control and lead healthier lives," said APA CEO and executive vice president Norman Anderson.

However, 27 percent named a lack of willpower as the reason they did not achieve their goals, while 26 percent said time constraints were their primary obstacle.

Solutions to the problem

Although many study participants agreed that weak willpower was the leading reason they failed to achieve their goals, 71 percent said they believe that willpower can be learned and help them accomplish future goals. The study's authors agreed.

"Self-control can be learned and strengthened," said Steven Breckler, APA's science directorate executive director. "For example, avoiding the sources of temptation and planning ahead are effective techniques for maintaining self-control. Research shows that exercising your willpower in one situation may drain your self-control for other situations that immediately follow. Therefore, just like with physical exercise, it is smart to avoid taking on too much at once. First, focus on one goal, strengthen your willpower, and then take on more goals over time."

Many experts recommend setting milestones that lead up to a larger goal, rather than diving in all at once, which may place too many expectations on a goal setter. For example, adults who are saving up for a down payment can start small by agreeing to save a certain amount month-by-month, rather than trying to save one lump sum amount a year from now. By viewing goals in smaller terms, adults may be less likely to feel overwhelmed after months of modest progress.

*according to American Psychological Association on February 15, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/weak-willpower-cited-as-a-reason-for-poor-financial-health-800725449.aspx Thu, 08 Mar 2012 08:00:54 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/debt-disparities-exist-across-four-generations-800725445.aspx Generations of Americans have faced their own unique economic circumstances and handled the effects of the recession differently, which has influenced their retirement savings, financial discipline, monetary health, and credit standing. The results of a new study reveal how disparate these financial circumstances are among four generations of Americans.

An Experian study* examined the debt levels and VantageScore credit ratings of the Greatest Generation (ages 66 and higher), baby boomers (ages 47-65), Generation X (ages 30-46) and Generation Y (ages 19 -29). After putting forth that the average level of debt - including credit cards and loans - in the United States sits at $78,030 and the average Vantage credit score is 751, the study's authors highlighted the differences between each generation.

According to the results, Gen X currently carries the highest amount of debt among the groups, with average balances of $111,121. The group also carries the second lowest credit scores, which averages to 718, behind Gen Y's average score of 672. While Gen Y may boast the lowest average credit scores, the group carries the lowest amount of average debt, which sits at $34,765.

The Greatest Generation falls on the heels of Gen Y with the second lowest amount of debt, which averaged out at $38,043. The group also carries the highest credit scores among all four generations, with an average score of 829. Baby boomers, in contrast, carried the second highest credit scores, which average at 782 and the second highest amount of debt, which totaled $101,951.

"While 'generation gap' is a common term when referring to topics such as music, fashion, culture and politics, the study reveals that age groups manage their money and debts quite differently as well," said Michele Raneri, Experian analytics vice president. "The gap between the highest and lowest average credit scores is vast - 829 for the Greatest Generation to 672 for  Generation Y -  yet the amount of average debt for these two groups is very close. On the other hand, the baby boomers and Generation X are carrying much higher amounts of debt - about three times more - than the Greatest Generation and Generation Y."

*according to Experian on February 15, 2012.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/debt-disparities-exist-across-four-generations-800725445.aspx Thu, 08 Mar 2012 07:52:42 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/avoid-common-mistakes-when-buying-selling-a-home-800721493.aspx Making the decision to buy or sell a home is an exciting and emotional experience. Because of the high stakes involved in either transaction, it is easy to make simple mistakes that can jeopardize the outcome of a sale. However, educating yourself on the process and steering clear of these common blunders can help you navigate the process more easily and make the right decision for you and your family.

Therefore, whether you are buying or selling a home, keep a few tips in mind so the cards end up in your favor.

Common home buyer mistakes

A recent Trulia* report highlighted one of the most frequent mistakes buyers make when striking a deal with sellers: suggesting a low offering price. The same holds true for making disparaging comments about the home or neighborhood in an effort to justify your low offer. Finding a healthy balance between what you are willing to pay and how much the seller is asking for can be challenging, as both parties will try to work the sale to their advantage. But it's important to remember that the property you are looking at has sentimental value to the seller and offering low-ball prices can be offensive to sellers and convince them that you're wasting their time, Trulia explains.

Instead, stay current on the neighborhood you are hoping to relocate to and examine nearby home values, amenities and market forces. Understanding these factors will give some wiggle room when it comes to negotiating prices with sellers.

Second, you can save yourself and the seller many headaches if you work with a lender to get pre-approved for a loan long before you begin your home search. Buying a home is a lengthy and time-consuming process. Navigating the financial details beforehand and knowing what you can afford may free up more of your time and energy to focus on finding your dream home.

Common seller mistakes

You may be excited to rid yourself of your home and start the next phase of your life, but selling a house that is full of memories can still be difficult. This sentimentality, coupled with the desire to earn a profit, often prompts many sellers to overprice their properties, Trulia explains. However, asking for too much can discourage prospective buyers from even attending an open house and leave your home on the market for longer than it normally would be.

Similar to the research you would conduct when buying a home, it is crucial to factor in the recent sales prices of similar homes in the neighborhood and understand how the market is affecting home values in your community. This does not mean you have to sell your home for pennies on the dollar, but it does mean that you have to be realistic about your asking price.

Lastly, make sure your home is immaculately spotless and clutter-free for the open house before you show it to viewers.

*according to Trulia on February 8, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/avoid-common-mistakes-when-buying-selling-a-home-800721493.aspx Fri, 02 Mar 2012 09:59:05 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/economists-say-surge-in-gas-prices-could-adversely-impact-consumer-confidence-home-sales-800709759.aspx Consumers may be looking for more gas saving tips this summer, as economists predict prices at the pump will likely increase even further by the time the busy travel season rolls around.

According to financial news magazine The Street*, the increase in gas prices may result from political instability off the coast of Iran, as leaders there are threatening to cut off passage at the Strait of Hormuz. Approximately 20 million barrels of crude oil per day pass through the waterway, and should the strait be closed off, the diminished supply could cause gas prices to soar.

"Even the belief that there is a realistic chance that Iran could attempt to do so could send crude prices, and very quickly thereafter gasoline prices, spiraling upward," said industry insider Neal Walters of A.T. Kearney's energy practice in an interview with The Street.

Gas prices could stem housing market recovery

Michael Feroli, chief economist for J.P. Morgan, told the source that a closure of the strait and the ensuing increase in fuel prices that could result would likely have lasting repercussions, particularly with respect to consumer confidence.

"If gasoline were to rise to around $4 a gallon by April or May, then I believe … consumer spending would come in below trend, as disposable income gets squeezed," said Feroli.

Rising fuel costs could then continue their domino effect by adversely impacting the home buying market, which has been showing modest improvements in recent months.

"If gas prices peak in the spring or summer, that could hurt consumer confidence during the prime months for home buying," Jed Kolko, chief economist of real estate listing website Trulia, told The Street.

He added that any downturn in home buying could adversely impact government plans to rent out foreclosed homes, as many of these properties are in suburban localities. These are the main areas in which homebuyers would be dissuaded from buying due to the long commute times they come with.

But Tom Kloza, chief oil analyst at the Oil Price Information Service, told the source that a lot can happen between now and then, saying that just when people think the year will be one in which there's not enough gasoline, the market rallies and prices soften.

*according to The Street on Jan. 18, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/economists-say-surge-in-gas-prices-could-adversely-impact-consumer-confidence-home-sales-800709759.aspx Thu, 16 Feb 2012 13:18:25 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/survey-young-drivers-could-yield-stronger-movement-toward-gas-sipping-models-800709756.aspx A new survey indicates that the younger generation's acceptance of green technology could be the stimulus needed to lead the industry away from standard gas-powered automobiles.

Almost 60 percent of Generation Y buyers favor electric vehicles

According to financial and risk management firm Deloitte*, nearly 60 percent of Generation Y, defined as individuals who are between 19 and 31 years of age, said they preferred an "electrified vehicle" more than any other type of car or truck. In addition, more than half these individuals favored hybrid gasoline-electric vehicles compared to standard gas-driven automobiles.

Craig Giffi, vice chairman and automotive practice leader at Deloitte, noted that Generation Y gravitates toward hybrid and electric technology for a variety of reasons, one of which is their fuel efficiency.

According to the study's findings, 89 percent of Generation Y consumers looking to buy a new car take mileage into account when shopping. Further, nearly 50 percent of these shoppers are willing to spend $300 more for every extra mile per gallon that a hybrid gets compared to gasoline-only engines.

"Gen Y consumers also view hybrid technology as proven and reliable," said Giffi. "Almost six in 10 Gen Y respondents prefer a hybrid over any other type of vehicle, while a mere two in 100 prefer a pure battery electric vehicle—demonstrating that Gen Y is familiar and comfortable with hybrid technology, but not so much with battery-only technology."

NADA: More should be done to emphasize fuel-saving benefits

But if automakers want to sell more of these gas-sipping automobiles to consumers, they need to do a better job of communicating just how much they can save them money, an industry insider recently stated.

In January, representatives for the National Automobile Dealers Association** (NADA) spoke before a panel of federal regulators, emphasizing that car buyers who purchase traditional models are missing out on the gas-saving benefits fuel-efficient automobiles provide.

"When prospective purchasers come to my new vehicle showrooms, they rarely, if ever, engage in upfront fuel economy 'pay-back' analyses," said Bill Willis NADA director, at a joint hearing held by the Environmental Protection Agency and National Highway Traffic Safety Administration. "First and foremost, they are looking for vehicles that meet their needs and that they can afford."

With prices for vehicles expected to rise between $3,200 and $5,000 over the next 15 years due to fuel economy increases, Willis noted that dealers are worried new car and truck buyers will reduce buying activity by not being able to justify why they are spending more for a car. As a result, dealers need to go out of their way to illustrate how fuel-efficient models "pay back" buyers by saving them more on gas  than if they were to purchase a less costly model that has poor fuel mileage.

*according to Deloitte on Jan. 19, 2012

**according to the National Automobile Dealers Association on Jan. 19, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/survey-young-drivers-could-yield-stronger-movement-toward-gas-sipping-models-800709756.aspx Thu, 16 Feb 2012 13:13:32 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/used-vehicle-values-expected-to-rise-800709726.aspx If consumers are in the market to buy a new car in 2012, they may want to think about trading in their current vehicle, as auto analysts anticipate dealers will spend top dollar for them.

Consumers can expect higher-than-average trade-in values this year, said Jonathan Banks, executive auto analyst with the National Auto Dealer Association Used Car Guide*.

January trade-in values up 8 percent

"The average trade-in value of a 3-year-old used car is 8 percent higher in January 2012 compared to last January," said Banks. "We expect this trend of higher trade-in values to continue throughout the year."

While there are a variety of factors for why used vehicles are retaining their value, Banks noted two specific aspects. Chief among them is a shortage in used vehicle supply. Banks indicates the dealers' supply of used cars is expected to diminish by as much as 7 percent this year when compared with 2011. In addition, the off-lease supply of used vehicles is anticipated to plummet by 22 percent, down from 17 percent last year.

"The depreciation rate of used vehicles this year will be slower than it has been at any other time in recent history because of reduced inventory, which will keep prices on used models in demand at a premium," said Banks.

Heavy demand for used vehicles 

The other factor is used vehicle demand, which he believes will rise in 2012, primarily due to the increase of the average age of vehicles to nearly 11 years. Buying activity is expected to grow both for new and used models, Banks noted. This may come at a cost to car buyers hoping to buy at a discount, as Banks stated that the increased demand will likely lead to an uptick in prices.

KBB forecasts 10 percent increase in January auto sales

Despite the rise in sticker prices, vehicle valuation firm Kelley Blue Book** projects there was a surge in car buying activity in January. KBB forecasts that new-vehicle sales rose 10 percent in January when contrasted with the same period in 2011. Ford is expected to have a dramatic upswing in sales, rising 14 percent to 144,900 units moved compared to January 2011's 126,981.

Meanwhile, fellow American automaker Chrysler is projected to see sales volume rise nearly 32 percent over last January to 93,600 models sold. Foreign brands Hyundai-Kia and Nissan are expected to post double-digit sales growth as well.

Alec Guttierrez, senior market analyst of automotive insights for KBB, suggested higher auto sales will be an ongoing theme throughout the balance of the year, based upon KBB's analysis of projected economic conditions involving the nation's rate of unemployment, the health of the housing sector and consumer confidence levels.

"Given current market conditions and our expectations for 2012, we believe sales will continue to improve at a conservative pace in 2012," said Guttierrez.

That's not to say KBB doesn't have concerns. Gutierrez noted that the company is particularly worried about the ongoing European sovereign debt crisis and political instability in the Middle East. Should these issues not subside, it could stymie the U.S. economy and adversely impact the automotive industry specifically.

*according to NADA Used Car Guide on Jan 8, 2012

**according to Kelly Blue Book on Jan. 23, 2012 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/used-vehicle-values-expected-to-rise-800709726.aspx Thu, 16 Feb 2012 12:53:15 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/set-clear-expectations-before-renting-your-home-800703581.aspx Many consumers are seeking out creative ways to earn additional cash these days, ranging from getting a part-time job or freelancing to having garage sales and selling their items on eBay. But many homeowners who own investment properties, vacation homes or simply have more space than they need in their current residence are renting out their properties to bring in steady income.

While renting your home can be financially beneficial to both you and a prospective tenant, it's important to set some ground rules to avoid legal issues or other problems that may arise in the future.

First and foremost, it's crucial to have a contract or rental lease in place, according to Fox Business*. A lease should include a clear and comprehensive listing of what is included in the price of rent, your responsibilities as a landlord, your tenant's responsibilities as a renter and the terms and conditions of the agreement. Because there are a number of factors and details that may be easily overlooked by a first-time landlord, relying on an attorney to draw up the rental contract can help you protect your investment.

"Many times people tend to be a little wary of contacting an attorney because there is a cost involved, but paying an attorney's fees up front is going to be a lot cheaper than going into litigation with a tenant if you have a lease that doesn't protect you," Kaye and Bender managing partner Robert Kaye told Fox Business.

Don't underestimate the power of a first impression

Anyone can make themselves look good on paper, but meeting a person face to face can alert you to personality habits or characteristics that you may find unfavorable. It's important that you trust the person that will be living in your home and you may find upon meeting him or her that this is not the individual you want to share your home with. For this reason, make it a point to meet the individual first to air out any potential issues or problems that may arise.

Take precautions

The reason for opening your home to a tenant is to bring in a steady income, so make sure the individuals you are considering are in a position to follow through financially. Running a credit check and requesting proof of income are not uncommon, and getting an accurate picture of how a person has managed his or her finances in the past can put you at ease or encourage you to consider a more suitable tenant, the news source explains. It's important to be upfront about asking about income and requesting pay stubs or asking an individual to detail his or her employment situation can save you financial headaches in the end.

*according to Fox Business on Nov. 23, 2011 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/set-clear-expectations-before-renting-your-home-800703581.aspx Wed, 08 Feb 2012 15:57:02 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/home-buyers-credit-literacy-is-key-to-securing-a-mortgage-800703522.aspx A mortgage applicant's credit standing is one of the most important factors in whether he or she secures financing for a mortgage loan or other types of financing. Although lenders will examine your income and revolving debt levels as well, your credit score weighs heavily on a lender's critique of how much risk you pose to them as a borrower. Even an individual with a high net worth would have difficulty obtaining a loan if he or she presented a spotty credit record.

Because of the importance your credit score has on the mortgage process, Realtor and real estate instructor Chandra Hall says understanding the credit system as well as your personal credit rating will make a significant difference in your request for a home loan, according to the San Jose Mercury News*. This is largely because your credit score - and your credit report that determines your score - filter into nearly every economic area of your life.

"Your credit score can affect where you work, what car you can drive, how much you pay for insurance and where you live," Hall told the news source. "It's imperative to know how credit scoring works and how to achieve the highest possible score."

Tackling the mortgage process

When it comes to applying for a mortgage, it's helpful to obtain a copy of your credit score and credit report months in advance of submitting your application. FICO scores range from 300 to 850, while the less utilized VantageScore ranges from 501 to 990. The higher your credit score, the more favorable you are in the eyes of lenders. Although a 640 FICO score is considered the average score necessary to secure a mortgage, you may not receive the most advantageous rates and terms as someone with a score of 740. Reviewing your credit information prior to submitting your mortgage application will give you time to measure your credit worthiness and re-evaluate behaviors that may be damaging your credit standing.

For example, your credit utilization ratio - your revolving credit card balances in relation to your available credit limits - accounts for 30 percent of your FICO credit score and falls second to your payment history in terms of importance. Lenders look more favorably on applicants with a low utilization rate, so if you're carrying large amounts of credit card debt, you can give your score and your mortgage application a boost by paying off your credit cards.

Hall told the newspaper that working closely with a mortgage professional can also educate you on other lesser-known strategies that may help you during the application process.

"If you're planning to apply for a mortgage, don't close an account within six to 12 months in advance," Hall advises. "Keep older accounts, even if they're unused, because the average age of credit accounts is a factor in scoring performance over time."

*according to the San Jose Mercury News on Nov. 21, 2011 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/home-buyers-credit-literacy-is-key-to-securing-a-mortgage-800703522.aspx Wed, 08 Feb 2012 15:37:25 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/making-sweeping-green-changes-may-prop-up-home-value-800703515.aspx Plummeting home values are one of the most immediate and worrisome conditions many homeowners are facing. The most recent report released by the National Association of Realtors shows the average price of a single-family home fell in 111 of 150 metropolitan areas in the third quarter of 2011 from the value recorded during the same period last year. Although falling values may mean lower property taxes, many current homeowners are seeking out innovative ways to prop up their values.

In recent years, the push to go green has become more insistent, filtering into everything from fuel-efficient vehicles to home upgrades. While making environmentally-friendly upgrades to your home can add some value to your investment, the New York Times* reports that it will take more than one change or upgrade to make a significant difference.

"If you do just one thing, it's probably not going to add value," Miron Properties managing director Jeffrey Schleider told the Times. "If you do five or six things as a package it really makes your property more appealing."

There are a number of low-cost home improvements homeowners can make that will benefit the environment and may add some value to their properties. Purchasing automated lights that detect motion can help lower energy use and ensure lights are only being utilized when an individual is actually in the room, the Times reports. In addition, purchasing energy-efficient appliances and features can also make a difference in energy output and extend the shelf-life of a product. Some products can provide multiple benefits once installed, such as low-flow shower faucets, which lower both energy and water consumption, the newspaper reports.

Other valuable home improvements

In addition to making upgrades and purchasing green products, proper home and yard maintenance can also keep a home's value intact. For example, cleaning, maintaining and replacing the roof and gutters when necessary can prevent water and structural damage to your home. It's also important to ensure the electrical wiring, heat and air conditioning systems and water pumps are functioning properly and replaced at the correct time. Lastly, small aesthetic improvements, such as painting your home, keeping the yard and trees trimmed and neat and paving your driveway or sidewalk can also boost home values and make your property more appealing to potential buyers.

*according to The New York Times on Nov. 17, 2011 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/making-sweeping-green-changes-may-prop-up-home-value-800703515.aspx Wed, 08 Feb 2012 15:30:45 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/consider-other-alternatives-after-a-mortgage-loan-rejection-800703504.aspx Receiving a mortgage loan rejection letter in the mail can be crushing for prospective homeowners who have decided to take the next step toward homeownership. But before you give up your dream of owning a home, take a step back and explore your other options.

Lenders have different criteria regarding their approval process and you may find that you qualify with other lenders or are on the brink of improving your financial situation and becoming eligible for a loan. The first step is to find out why your initial application was not approved. Although lenders are now required to provide you with an explanation when you are denied financing or not extended the most competitive interest rate, your lender may not provide you with a detailed reason, the Washington Times* reports.

Instead of settling for a generic response, speak with your lender about the particulars of your application and ask him or her to point out weaknesses. There are several components lenders examine when reviewing mortgage applications, such as your credit score, debt levels, income, tax records and financial obligations. Weaknesses in any of these areas may impact your loan application, so once you know which components you need to work on, you can begin improving your finances.

In addition, you may find that you are close to meeting the qualifying criteria. In these instances, it may be helpful to develop a plan with lenders regarding the best strategies for qualifying for a loan in the future, the Times suggests.

"If the issue is their credit score, we can use a credit analyzer to look at different scenarios that could improve their score by as much as 50 points in a short time," 1st Portfolio Lending vice president Glenn Harshman told the newspaper. "For instance, if someone cannot pay off all their debts before applying for a loan, we can tell them to pay off a certain bill and estimate what that will do to their credit score. This is especially important for someone who is only a few points away from qualifying for a loan."

Don't wait to make changes

Applicants who are rejected for a loan should act to improve their financial situations immediately, the news source suggests. This involves examining their revolving debt levels and payment history, credit score and credit report. In addition to these factors, your income will play a large role in whether you are extended financing. Examine your income in relation to the size of the loan you are applying for. Mortgage payments should not exceed 28 percent of your take-home pay, and once you do the math, you may find that you are trying to purchase a home you can't truly afford, the newspaper explains. Shopping around for a more realistic amount that falls in line with your income may improve your eligibility.

*according to The Washington Times on Nov. 17, 2011 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/consider-other-alternatives-after-a-mortgage-loan-rejection-800703504.aspx Wed, 08 Feb 2012 15:25:18 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/study-participants-faced-with-retirement-future-800702322.aspx While many Americans hope that they will be able to afford an early retirement, a variety of surveys suggest that people fail to save enough money, which often forces individuals to work much longer than they anticipated.

For instance, according to a poll conducted by The Associated Press and LifeGoesStrong.com, 73 percent of respondents said they plan on working in their retirement years, up from the 67 percent who said the same thing in the spring when a similar survey was conducted. The poll also found that more than half of respondents stated they were not confident about being able to finance their retirement if their present financial condition stayed the same.

However, a new study has found that when consumers actually see what they may look like in their elder years, it increases the dollar amounts they would allocate for retirement purposes.

Respondents allocate more money for retirement after viewing future self

In a series of experiments conducted by a team of researchers—the results of which were published in the American Marketing Association's Journal of Marketing Research—the study's lead analysts created images of the study's participants that portrayed them in an advanced age, showing them what they may look like when they reached retirement. They were then presented with several investment scenarios.

After being presented with these images, the participating adults said they were willing to contribute approximately 33 percent more of their paychecks toward their retirement savings accounts compared to those who were not presented with an image of their future selves.

Hal Hershfield, assistant professor of marketing at New York University's Stern School of Business, said giving individuals a glimpse of what they may look like when they're older raises the concern individuals have with their future financial security.

"One way to increase the feeling of similarity and connection between one's current self and one's future self is by showing people realistic, visual images of their future selves," said Hershfield. "When people are exposed to realistic images of their future selves, they are more willing to act in future-oriented manners, such as taking money that could be spent today and saving it for tomorrow." http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/study-participants-faced-with-retirement-future-800702322.aspx Tue, 07 Feb 2012 13:00:22 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/tesla-unveils-sticker-price-for-its-model-s-electric-vehicle-800691168.aspx As Americans pursue different ways to go green in 2012, some are considering buying electric vehicles. And while sales have been somewhat limited for two of the more popular electric automobiles—the Nissan Leaf and the Chevy Volt—Tesla is hoping to invigorate the market with an updated version of one of its classic electric offerings.

The carmaker recently announced that it would start selling its latest Tesla Model S sometime in 2012. While Tesla has detailed what the Model S looks like and what features it has, it's been tight-lipped about how much it will cost.

But in late December, Tesla announced how much their newest electric model will cost in 2012, a 365-day period which the company dubbed "The Year of Model S."

Model S will fetch $49,900 after tax credits

"There have been a lot of rumors about price increases lately," said George Bankenship, vice president of worldwide sales at Tesla. "I'm happy to say that all Model S pricing remains unchanged, including the basic version with the 40 [kilowatt-hour lithium] battery at the price we announced in 2009 of $49,900 after federal tax credits."

He added that the price includes standard features such as the 17-inch touch screen on the console, 19-inch wheels and a universal mobile connector that will enable motorists to power up their vehicles quickly.

Price higher for models with higher battery capacity

While the price may be costly for some, motorists who have the ability to spend more will be rewarded with improved performance. According to Cars.com, a standard 40-kWh battery will enable a Model S to travel 160 miles while traveling at an average speed of 55 miles per hour. However, Tesla will also offer models that have battery capacities of 60-kWh and 85-kWh. At the same speed of 55 mph, motorists in these cars will be able to travel 230 and 300 miles, respectively.

The increased capacity comes at a cost, though. The website reports that each increase in battery size raises the price by $10,000. Before federal tax credits, that means a 60-kWh Model S will run approximately $77,400.

But the first 1,000 Model S vehicles produced will have an even steeper asking price. Cars.com reports that these vehicles—part of Tesla's special Signature series—will run around $105,400, as they'll be equipped with a 300-mile-range battery.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/tesla-unveils-sticker-price-for-its-model-s-electric-vehicle-800691168.aspx Tue, 24 Jan 2012 13:16:42 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-to-file-an-auto-insurance-claim-after-an-accident-800691155.aspx Similar to past holiday periods, travelling was heavy in the U.S. this past year. But unfortunately, not everyone got to their destinations without incident. In fact, according the Consumer Federation of America, it's estimated that 325,000 accidents occurred, generating as much as 200,000 auto insurance claims.

"Navigating the Auto Claims' Maze"

While insurers have made the filing process easier compared to past years, people who have never had an accident before may be unfamiliar with how it works. To help policyholders determine what the proper course of action, the CFA has released a guide called "Navigating the Auto Claims' Maze: Getting the Settlement You Deserve."

Written by Mark Romano, the CFA's director if insurance claims and a former insurance industry professional, the guide also includes a checklist of the things policyholders will need to have ready once they file.

Speaking to The New York Times, Romano said that the holidays tend to be a time in which accidents are prevalent, mainly because motorists frequent roads that they aren't familiar with. The frustration of being in foreign territory can be compounded when motorists steer through all that goes into the claims process. With the new CFA guide, Romano is hopeful that unfortunate accidents can be made more tolerable.

He added that the guide should also be useful for those who haven't necessarily been in an accident but who nevertheless want to inform themselves about what they need to do should they ever be involved in one.

CFA: 'We're trying to educate people'

"People tend to buy an insurance policy and then stick it in a drawer and never look at it—until something happens," Romano told the Times. "So we're trying to educate people in advance."

The guide is broken into segments, each focusing on a specific aspect of the claims process, such as reporting a loss, dealing with the insurance adjuster, getting the insurance company to address additional concerns and filing an injury claim. It also details what policyholders should do if the other party was at-fault for the accident and how they can be compensated. Among the suggestions, CFA advises policyholders not to wait for the other driver to report the claim, as they may fail to do so. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-to-file-an-auto-insurance-claim-after-an-accident-800691155.aspx Tue, 24 Jan 2012 13:08:04 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/low-mortgage-rates-fail-to-entice-home-buyers-to-the-real-estate-market-800688022.aspx Mortgage rates play a pivotal role on how affordable it is to buy a home or refinance an existing loan. Although falling values have caused financial headaches for sellers with homes on the market, buyers and homeowners who qualify for refinance agreements are in a prime position to save thousands down the road on payments due to historically low interest rates.

Interest assignments for long-term, fixed-rate mortgages have been hovering at or below 4 percent for the past two months. However, analysts say the record-breaking low rates may not be enough to ease buyers' fears about the health of the economy and housing market or make a dent in the low volume of refinance agreements, according to The Associated Press. There are several reasons low rates are unlikely to boost housing recovery, most of which are out of consumers' control.

Lending standards remain strict and hinder millions of Americans from securing the financing they need to purchase a home. The Great Recession resulted in heavy consumer credit card debt as more unemployed or underemployed Americans were forced to rely on credit to meet their basic living needs. Further, high and relatively unchanged unemployment rates automatically disqualify buyers from purchasing a home. Further, lenders are scrutinizing individuals' finances more closely during the mortgage application process, examining everything from income and employment records to child support payments and taxes.

In addition to tight credit score requirements, many would-be homeowners are now required to make a 20 percent down payment if they want to avoid purchasing private mortgage insurance. Between the 20 percent down payment, closing costs, and credit and income requirements, analysts say low rates may not provide the savings consumers need to get started.

Many existing homeowners also find themselves unable to meet the strict refinance requirements due to underwater mortgages, insufficient equity and high refinance costs, the AP reports.

The Obama administration recently included a provision in the Home Affordable Refinance Program that enables eligible homeowners with underwater mortgages to refinance. The program also cuts down on many of the refinancing costs. However, this provision only applies to those with loans backed by Fannie Mae, excluding other homeowners from the benefit. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/low-mortgage-rates-fail-to-entice-home-buyers-to-the-real-estate-market-800688022.aspx Thu, 19 Jan 2012 12:38:19 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fuel-economy-standards-for-new-cars-rising-800686913.aspx With 2012's arrival, automakers are moving closer to the year in which fuel economy standards will be heightened to 54.5 miles per gallon. And according to a recent study, vehicles are moving closer to that goal.

Actual fuel economy for November vehicles 22.3 miles per gallon

Price trend and car reviews website TrueCar.com recently released a report detailing the actual fuel economy of vehicles sold in November. Compared to the same month in 2010, TrueCar.com found that vehicles' mileage increased from 21.7 mpg to 22.3 mpg, as measured by its "TrueMPG." Fuel economy also grew on a monthly basis, up from 22.2 mpg in October.

Jesse Toprak, vice president of industry trends and insights for TrueCar.com, said car buyers are responding to a greater output of fuel-efficient vehicles by buying more gas-sipping automobiles.

"Manufacturers are building more fuel-efficient cars and consumers are buying them as evidenced by fifteen consecutive months of year-over-year increases in TrueMPG," said Toprak. "The last time we saw a decrease was during the government's Cash for Clunkers program in August 2009."

According to the report, U.S. manufacturers averaged 20.4 mpg in November, up from 20.1 during the same month last year. Among specific U.S. brands, Chrysler registered the biggest jump, rising from 18.5 to 19.5 mpg. However, Ford got the most miles for every gallon at 21.2 mpg from 20.6 mpg in November 2010.

Among European models, average fuel economy for vehicles rose from 21.0 mpg last November to 22.0 mpg. Volkswagen registered a fuel economy standard of 30.6 from 28.6 last November.

Finally, among Asian brands, Japanese models like Toyota and Honda increased their average fuel economy from 23.1 mpg to 23.8 mpg. Meanwhile, South Korean brands like Hyundai saw fuel economy levels rise from 25.4 mpg to 26.8 mpg.

Reaching fuel economy standards will benefit environment

Shortly after President Barack Obama's announcement that the majority of automakers agreed to raise their fuel efficiency standards to 54.5 mpg by 2025, the U.S. Environmental Protection Agency and the U.S Department of Transportation released their report about how the enhanced standards will benefit the environment. For instance, if automakers are able to meet the fuel economy standards established, America's dependence on foreign energy sources will lessen by reducing oil consumption by 2.2 million barrels per day. In addition, it will cut 2 billion metric tons of greenhouse gas pollution over the lifetimes of vehicles sold between 2017 and 2025.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fuel-economy-standards-for-new-cars-rising-800686913.aspx Wed, 18 Jan 2012 12:49:21 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/pennsylvania-implements-advanced-id-fraud-detecting-system-800686901.aspx It just got a little more difficult for fraudsters trying to fool traffic officials into believing they have a legitimate driver’s license.

The Pennsylvania Department of Transportation recently unveiled the new technology that makes identifying fraudulent drivers licenses easier.

"A driver's license or identification card has always been a trusted source for establishing a person's true identity," said Barry Schoch, secretary of the PennDOT. "We are steadfast in our resolve to combat counterfeit forms of identification, which ultimately jeopardize lives and hold great potential for harm to our national security."

In previous years, states have embedded drivers’ licenses with holograms that form different colors depending on how they're positioned when a light is shined on them. However, fraudsters have been able to reproduce these images when making fake IDs. With the new hologram device used by the PennDOT, the "rainbow" colors that usually appear are suppressed, resulting in a hologram that switches between colors of white and black when the license is repositioned.

In addition, because the new image has a higher resolution, the holograms are visible in all light environments, be them, bright, moderate or limited.

Pennsylvania is believed to be the first state in the nation to use the enhanced security feature.

Pennsylvania recently became 35th state to prohibit texting while driving

Meanwhile, the Keystone State has been involved with other consumer and driving safety measures in recent months. In November, Pennsylvania Governor Tom Corbett signed legislation than bans drivers from texting while driving.

"By signing this tough texting ban into law, Governor Corbett has taken a critical step toward creating safer roads for everyone in Pennsylvania," said Ray LaHood, secretary of the Department of Transportation. "Drivers need to remember that no text or call is worth a life."

Scheduled to go into effect in March 2012, Pennsylvania will become the 35th state to enact the texting ban. However, if the National Transportation Safety Board has its way, a nationwide ban on texting could soon be implemented.

After investigating a multi-vehicle highway accident that killed two people and injured 38 others, board members of the NTSB voted unanimously in favor of a ban on all nonemergency use of portable electronic devices for drivers.

The NTSB and other safety organizations have been investigating the links between cellphone use and driving safety since 2002, when a driver distracted by her cellphone veered off a roadway in Largo, Maryland. The accident wound up killing five people.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/pennsylvania-implements-advanced-id-fraud-detecting-system-800686901.aspx Wed, 18 Jan 2012 12:40:34 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/sprucing-up-the-exterior-of-your-home-may-be-a-valuable-investment-800679704.aspx Remodeling and replacement projects can be expensive, albeit necessary financial undertakings. But as replacements go, a new study conducted by the National Association of Realtors shows home exterior replacements are not only affordable, but are also one of the more valuable investments homeowners can take on.

According to the Remodeling Cost vs. Value Report, seven of the 10 most cost-efficient remodeling projects involved the exterior of the home. The study weighed cost effectiveness against the expected recouped value of the project. The study names fiber-cement siding replacement as the No. 1 most valuable improvement, with homeowners generally recouping 78 percent of their costs after selling a home. Other valuable exterior replacements include other types of siding, such as vinyl, door and window replacements.

"This year's 'Remodeling Cost vs. Value Report' shows the value of putting your home's best facade forward, so to speak," said NAR president Moe Veissi. "Inexpensive exterior replacement projects are not only crucial to a home's regular upkeep, but are also expected to recoup close to 70 percent of costs. Specific exterior projects such as siding, window and door replacements are part of regular home maintenance, so many homeowners are already undertaking them. These projects also do not require expensive materials and they have the added bonus of instantly adding curb appeal."

Overall recouped values

Although exterior replacement projects have a high value return to homeowners, persistent unemployment and current economic conditions have increased the cost of construction materials and reduced the overall value associated with home remodeling projects. On average, homeowners will recoup an estimated 57.7 percent of their investment on 35 different home improvement projects, down from 60 percent the previous year.

Further, the study's analysts say the value of most remodeling projects, in terms of selling a home following the improvements, will vary by region.

"Resale value is just one factor among many that homeowners need to take into account when making a decision to remodel," said Veissi. "The desirability and resale value of particular remodeling projects also varies by region and metropolitan area. A Realtor can help homeowners decide what low-cost improvement projects will provide the most upon resale in a particular market."

Think remodeling and maintenance

Homeowners who plan on one day selling their home should also consider conducting exterior improvements that fall in line with suggested home maintenance tasks as well. Sellers may be required to repair existing roof, siding or other exterior issues that may arise during the selling process to attract more buyers, so taking care of the problems early on may be in their benefit. A recent MSN Real Estate* article urged homeowners to look at the exterior of the home as if they were a buyer and pinpoint areas that may need work.

For example, homeowners should always make sure the roof is structurally sound to boost safety and prevent common problems, such as leakage and water damage. The same method should be followed when examining the siding of a home and any holes or cracks should be filled in to protect the home.

*according to MSN Real Estate on December 20, 2011 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/sprucing-up-the-exterior-of-your-home-may-be-a-valuable-investment-800679704.aspx Mon, 09 Jan 2012 13:54:20 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/redesigned-vehicles-all-the-rage-for-car-buyers-800679605.aspx As the year draws to a close and dealerships look to reduce their inventories, people who put off buying a new car may have benefited, as many dealers are offering low-interest financing to stimulate demand. But when it comes to what vehicles buyers are most frequently choosing, sales data suggests they tend to be those that have been redesigned.

Revamped 2012 Toyota Camry most sold vehicle in November

According to Cars.com, in November, car buying trends in the U.S. gravitated toward automakers who updated perennial favorites. For example, the Toyota Camry—one of the country's best-selling vehicles for the past several years—recently received a revamping for its 2012 line. As a result, sales skyrocketed 13 percent, making it the month's most sold vehicle.

Not to be outdone were the Ford Explorer and Jeep Grand Cherokee, which also received makeovers for the upcoming year. Sales surged 217 percent on a year-over-year basis for the model. And compared to October, sales climbed 7.5 percent, despite the overall market shrinking nearly 3 percent, Cars.com reports. Meanwhile, purchases for the newly redesigned Jeep Grand Cherokee rose 23 percent after it received its 2012 renovation.

But updated and redesigned vehicles haven't only fared well in sales volume. They've also performed admirably in vehicle reviews.

2012 Porsche 911 named 2012's Best Redesigned Vehicle by KBB.com

Since 2004, vehicle valuation company Kelley Blue Book has been awarding automakers that update their vehicle offerings with the title of the Best Redesigned Vehicle. And for the second time, a sports car received the distinction. KBB.com named the redesigned Porsche 911 as 2012's Best Redesigned Vehicle. The Ford Mustang received the nod in 2005.

Jack Nerad, executive editorial directors and market analyst for KBB.com, said Porsche got the recognition mainly because of its enhanced fuel economy and overall performance.

"Porsche's designers and engineers were faced with the very difficult task of redesigning an icon while keeping all the aspects that made an icon intact," said Nerad. "They accomplished that task and more, creating a car that looks and handles better than its predecessor and is more fuel-efficient to boot."

One of the vehicles that finished in the top 10 of Best Redesigned Vehicles was the 2012 Toyota Camry, which as Cars.com indicated was November's best-selling model overall.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/redesigned-vehicles-all-the-rage-for-car-buyers-800679605.aspx Mon, 09 Jan 2012 12:40:53 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/consumers-to-cut-back-on-spending-for-holidays-800679604.aspx While the holiday shopping season got off to a roaring start - Black Friday sales were up more than 7 percent compared to last year, according to some estimates - it was expected to finish with a whisper if the results of a consumer survey prove to be accurate.

According to Bankrate.com and its Financial Security Index poll, the overall index fell to its second-lowest level of the year, driven by consumers saying they would likely spend less this holiday season due to financial problems and feelings of job insecurity.

Financial Security Index at its second lowest level

The FSI dipped to 92.5 in November, largely as a result of consumers worrying about the security of their jobs, as only 13 percent of Americans said they feel more secure about their jobs this year than they did one year ago. The FSI's lowest ebb came in August, when it reached 92.3. Any reading that's below 100 is an indication consumers are feeling less financially secure today than they did 12 months ago.

In light of consumers' uncertainty, 42 percent of Americans said they intended to spend less on holiday gifts this year than compared to 2010. That number rises to 49 percent when only considering parents. Just one in 10 of them said they expect to spend more.

Greg McBride, senior financial analyst for Bankrate.com, said the poll's results are a microcosm of how Americans have coped with the economy over the balance of the year.

"Throughout 2011, we have observed that consumers are worried about their savings, job security, debt and net worth, and that trend has accelerated during the second half of the year," said McBride.

He added that while consumer say they won't be spending as much, history has shown that they don't always adhere to their intentions and wind up spending more anyway.

Four in 10 consumers say they won't spend anything for the holidays

But a separate poll suggests that consumers this year may mean what they say. According to the National Foundation for Credit Counseling 40 percent of respondents polled said their financial problems are so bad that they wouldn't be spending anything on holiday purchases this year.

Gail Cunningham, spokesperson for the NFCC, echoed McBride's sentiments, saying consumers in the past have put aside their financial concerns during the holidays and spent. But this year's poll results may buck that trend.

"These figures provide a snapshot of the desperate situation in which consumers find themselves, and how seriously they are taking their situation," said Cunningham.

Meanwhile, among those who will be spending for the holidays, more than half - 51 percent - said they cut back on their spending because they were worse off financially compared to last year. Just 3 percent said they would spend more due to being in a more stable financial situation than in 2010. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/consumers-to-cut-back-on-spending-for-holidays-800679604.aspx Mon, 09 Jan 2012 12:37:01 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/satisfaction-on-the-rise-among-car-buyers-800679596.aspx A new study indicates that when consumers are out buying a new car, they tend to be pleased with how the sales process goes.

According to market research organization J.D. Power and Associates, satisfaction levels among consumers have risen considerably in a year's time. Based upon the firm's U.S. Sales Satisfaction Index, sentiment levels averaged 648 on a 1,000-point scale this year, a marked increase from the 635 the Index registered in 2010.

Car buyers pleased by delivery process

In addition to gauging car buyers' general opinions about the car purchasing experience, the study also looked at specific aspects, such as working out the deal, interaction with the sales person, the delivery process and the quality of the dealership's facility. Across the board, consumer impressions improved from 2010, with the delivery portion of the sales process registering the biggest gain.

Jim Gaz, director of automotive research at J.D. Power, noted how results have improved, despite deliveries taking longer to complete. According to the study, deliveries take four minutes longer than they did in 2010.

"Although technology demonstrations add time to the delivery process, those explanations substantially improve satisfaction, as well as customer loyalty and advocacy," said Gaz. "It would intuitively seem that buyers are most satisfied when the sales process is completed in the shortest amount of time possible. However, buyers actually appreciate it when sales staff spends additional time with them, as long as that time provides them with added value."

He added that because owner-reported problems have risen with respect to technologies systems—such as navigation units and advanced stereo systems—dealers have put a greater focus on using technology demonstrations in the sales process. This may have helped raise consumer satisfaction.

Consumer most satisfied with Lexus, MINI

While the study detailed how satisfied consumers were with the services they receiving when car shopping, it examined car buyers' feelings about specific brands as well. For instance, among luxury models, Lexus registered the highest satisfaction ranking at 715 on a 1,000-point scale. Meanwhile, among mass market makes, MINI claimed the top spot for the second year in a row, followed by Buick and GMC. Volkswagen and Chevrolet rounded out the top five. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/satisfaction-on-the-rise-among-car-buyers-800679596.aspx Mon, 09 Jan 2012 12:29:07 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/more-young-adults-return-to-parents-house-800659960.aspx Making ends meet is still difficult for a sizable percentage of Americans and many young adults who are saddled with student loans, high rent and credit card debt are finding their costs of living too high. A new report released by the U.S. Census Bureau shows many young adults between 25 and 34 are fighting these costs by living with their parents.

According to the America's Families and Living Arrangements: 2011 report, the percentage of males between 25 and 34 who are residing with their parents increased to 19 percent, up from 14 percent in 2005. The percentage of women in this age group also showed a slight increase to 10 percent, up from 8 percent. Interesting however, the Census Bureau notes that while the recession has been a contributing factor to the increase in young adults living with their parents, this rise actually began prior to the economic collapse.

"The increase in 25 to 34 year olds living in their parents' home began before the recent recession, and has continued beyond it," said the study's author, Rose Kreider, a family demographer with the Fertility and Family Statistics Branch.

Beginnings of a new trend?

Some analysts say that the trend of young adults and, especially, recent graduates is on its way to becoming more of a common habit in the U.S., rather than a passing fad, according to the New York Times. This is largely because young adults, having seen the financial ramifications of the recession on their parents and grandparents, will be more cautious about gaining financial stability before taking the financial risks that come with independence.

Other young adults, such as 26-year-old Jay Bouvier, say they plan on living with their parents until they have saved enough to get their finances in order and make a sizable down payment on a home, the Times reports.

"I have it pretty good at home, since it's so close to my work, and financially I just feel like it's smarter for the long run to buy," Bouvier told the newspaper. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/more-young-adults-return-to-parents-house-800659960.aspx Fri, 09 Dec 2011 13:23:59 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/current-prices-rates-boost-home-affordability-800659958.aspx The costs of purchasing a home can be heavy on new mortgage applicants, but a new study shows that falling home prices and historically low rates have made homeownership more affordable for Americans.

The recently released Fiserv Case-Shiller Index reveals that average monthly mortgage payments in relation to median family income are currently at the lowest level ever recorded. In addition, home prices fell in 340 of the 384 metropolitan areas included in the report, with prices in 302 locations falling to new lows during the second quarter of 2011. Home prices are expected to drop another 3.6 percent by the second quarter of 2012.

"Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates," said Fiserv chief economist David Stiff. "The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006—a decline of nearly 40 percent. Nationally, purchase mortgage payments now account for only 13 percent of monthly median family income, the lowest percentage on record (since 1971), and compared to 23 percent in the first quarter of 2006."

Obstacles keep homeownership low

Despite low mortgage rates and falling home prices, many Americans have been alienated from the housing market due to tightened lending restrictions that make obtaining financing difficult. This has been further exacerbated by the unemployment crisis and consumers' declining confidence in economic recovery.

In addition, Stiff notes that demand for housing has remained stagnant, as both financial factors and personal sentiment have made many Americans hesitant to take on such a significant financial investment.

"Potential buyers must be convinced that the economic recovery is back on track and that the double-dip in home prices is nearly over before housing demand will begin to rise," Stiff said.

Despite these obstacles, many analysts say the financial benefits of homeownership and the rising cost of rent will eventually draw more Americans back to the table. A recent Trulia study shows 70 percent of Americans still consider homeownership the core of the American Dream and 57 percent of current homeowners said owning a property was one of the smartest long-term investments they ever made. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/current-prices-rates-boost-home-affordability-800659958.aspx Fri, 09 Dec 2011 13:21:23 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/black-friday-believed-to-be-best-day-for-buying-a-new-car-800659247.aspx Every year, after Thanksgiving dinner has been served and the leftovers have been put away, retailers prepare for what is typically the biggest shopping event of the year: Black Friday.

In an attempt to stimulate sales and incentivize consumers to begin their Christmas shopping, retail outlets advertise discounts that can only be taken advantage of the day following Thanksgiving. The hope is that consumers will buy enough to put retailers' annual profit levels from the negative, or in the red, back into the black, hence the name.

From clothing outlets to electronic retailers, virtually every merchandising outfit offers some kind of deep discount sales event. But it isn't just gifts that can fit under the Christmas tree that will be sold for an inexpensive price. According to TrueCar.com, it's also an ideal day for buying a new car.

Black Friday discounts may take 23 percent off MSRP

The online company, which bills itself as "the authority in new car prices," says that November 25 will be the best day of the year to buy a new vehicle, as automakers are offering a variety of deals on 2011 and 2012 models that could lead to savings of up to 23 percent. So far this year, car buyers have saved an average of 6 percent.

"Dealerships offer significant discounts on Black Friday which can save consumers thousands off the purchase of a new vehicle," said Jesse Toprak, vice president of industry trends and insights for TrueCar.com. "It's an atypical day to purchase a car since consumers think of retail shopping, but buying a new vehicle on Black Friday can often lead to big savings."

According to TrueCar, each year, the company reviews a variety of automotive intelligence data that details what days are the best to buy from dealers. In 2010, the best day to buy a vehicle was on July 28. But market indicators suggest the best day to buy a new car this year will fall on what is traditionally the busiest shopping day of the year.

TrueCar listed some of the cars that are being offered at a discounted rate. For instance, the 2011 Mitsubishi Endeavor typically sells for $29,109, based on the manufacturer's suggested retail price. But many dealers will trim their asking price to $22,334, savings consumers more than 23 percent.

Chevrolet, Chrysler and Nissan are other manufacturers offering price discounts on some of their vehicle models. Ford will trim the asking price of its 2012 Escape from $25,495 to $22,045 at participating dealers, according to the vehicle pricing website.

While TrueCar says the biggest price discounts for buying a new car will likely be had on Black Friday, car shoppers can expect to find discounts Saturday through Monday following Thanksgiving as well.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/black-friday-believed-to-be-best-day-for-buying-a-new-car-800659247.aspx Thu, 08 Dec 2011 15:49:35 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/retirees-may-benefit-from-holding-off-on-mortgage-payments-800658534.aspx Whether an individual has finished paying off their mortgage or has years to go, strong financial planning and adaptation to the fiscal uncertainty which lies ahead is essential. Soon-to-be and current retirees may be surprised to learn the advice of some housing analysts suggests going against the grain of strategies of years past.

Although it is a gratifying accomplishment to finally pay off your mortgage, financial experts are suggesting that holding off on mortgage payments and investing in other opportunities may be a better choice, The New York Times reports.

Gibran Nicholas, chairman and chief executive of the Certified Mortgage Planning Specialist Institute, told the Times due to the instability of the economy, paying off mortgage is most likely a poor decision today, but ultimately it depends on the bankroll of the homeowner and the expected returns on alternative investments.

"Why pay off a mortgage and save maybe 3 percent after tax when you could be putting that money into a municipal bond earning 4.5 percent after tax right now?" Nicholas said.

According to Debra Shultz, managing director of the Manhattan Mortgage Company, homeowners nearing retirement should secure enough money so they can pay for daily expenses. She states that as soon as a mortgage is paid off, it can no longer be taken back unless it's refinanced, which can be difficult as yearly income drops upon retirement, reducing a homeowner's loan limits, the news source reveals.

Fire sales could bring potential high returns as retirees investing in vacation homes may benefit from cheap prices, DaRayl Davis, financial expert and author of Economic Secrets of the New Retirement Environment, told the news source.

The idea behind delaying mortgage payments resembles the philosophy of sales in general. If a consumer wouldn't overpay for a product, why would they do so for a house that's declining in value? According to Alex Barron, founder and president of the Housing Research Center, of country's top 20 housing market cities, values have fallen 30 percent since the peak in June 2006. Further, Barron suggests home values over the next one or two years could drop up to 5 percent before gaining momentum again.

Experts suggest that if homeowners still aim to pay off their mortgage as soon as possible that at least 12 months of living expenses are saved up to prepare for retirement or any loss of employment leading to it.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/retirees-may-benefit-from-holding-off-on-mortgage-payments-800658534.aspx Wed, 07 Dec 2011 17:33:12 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/set-ground-rules-when-borrowing-money-from-your-family-800653866.aspx Taking out a loan from a traditional lender or bank can be a risky—and potentially costly—venture, especially if you don't have the credit score or income to qualify for the most advantageous terms. In these scenarios, you may be considering another less risky alternative: turning to Mom and Dad for the funds.

Borrowing from family members has its many financial perks. You don't have to pay fees or get locked into a high interest rate. You can set up a more flexible payment schedule that works for both you and your parents. And your credit score will be shielded from harm should you be forced to re-evaluate your payment plan due to income obstacles. In addition, you and your parents may benefit from current tax rules by reducing state or federal estate taxes, according to U.S. News and World Report.

"Instead of a son or daughter borrowing money from a bank at a high rate while the parents earn very little, this cuts out the middleman, and the bank's profit instead stays in the family," certified financial planner and Palisades Hudson Financial Group vice president Jonathan Bergman told the news source.

Proceed with caution

Although borrowing from family members can have its unique benefits, it can have unique drawbacks as well. There is often a greater sense of obligation and responsibility when it comes to borrowing funds from loved ones and financial missteps can lead to arguments, splits and harsh feelings for years to come. You may feel bad about defaulting on a loan to your lender, but telling your parents you can't return their investment will make you feel worse.

For this reason, you should treat any loan from your parents as you would a formal loan from a bank. Draw up documents that dictate the amount borrowed, a repayment schedule, a description of how the funds will be used and, if necessary, a promissory note. These documents can be overseen by a financial advisor and finalized through an attorney to ensure the terms of the contract are carried out, the news source suggests. Couching your loan in these terms can demonstrate to your parents that you're serious about repayment and help you stick to a schedule. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/set-ground-rules-when-borrowing-money-from-your-family-800653866.aspx Thu, 01 Dec 2011 12:45:29 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/automotive-dealers-look-to-scuttle-heightened-fuel-efficiency-standards-800653852.aspx In 2025, it's anticipated that all new vehicles will have an average fuel economy of 54.5 miles per gallon. But according to recent reports, auto dealers are pushing back against the fuel rule.

Hoping to decrease the country's dependence on foreign oil and reduce consumers' costs on gasoline, President Barack Obama and 13 major automakers announced this past summer that the fuel economy standard for vehicles would be 54.25 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," Obama said at the time. "We've set an aggressive target and the companies are stepping up to the plate. By 2025, the average fuel economy of their vehicles will nearly double to almost 55 miles per gallon."

How it will affect the economy

The Environmental Protection Agency and the Department of Transportation were also involved in increasing the fuel efficiency standards. In July, when the announcement was made, EPA administrator Lisa Jackson echoed Obama's sentiments, saying the new standards would not only decrease the country's reliance on foreign energy sources, but would also help spur economic growth.

Several months removed from the announcement, however, Reuters reports that automotive dealers are working to scuttle the Obama administration's fuel efficiency agenda. Dealers say that the standards are so lofty, costs will rise, many of which will be passed on to the consumer. In addition, safety may be compromised.

In an interview with the news service, Dave Westcott, a chief executive with an auto industry trade group, said the heightened fuel efficiency standards are too much too soon.

"This is a big jump, and we'd like to slow this process down and find out what's working and what's not," said Westcott. "We'd like the public to be in control of what they would like."

Hybrids make up 3 percent of car sales

While alternative-fuel and energy-efficient cars are increasing in their popularity, dealers tell Reuters that they take up only a small portion of sales. For instance, hybrids make up less than 3 percent of overall sales, according to recent sales statistics, and electric vehicles comprise one-tenths of a percent of the 9.4 million vehicles sold through the first nine months of 2011.

Even though automakers agreed to increase fuel efficiency standards, dealers tell Reuters that the agreement was reluctant at best. They also say that they were not consulted about whether it was a good idea to raise the fuel efficiency standard.

The source indicates legislative efforts are in the works that would revise the fuel rule by diminishing the federal government's ability to establish mileage standards. Dealers say they would prefer the DOT alone established fuel targets.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/automotive-dealers-look-to-scuttle-heightened-fuel-efficiency-standards-800653852.aspx Thu, 01 Dec 2011 12:27:17 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/consider-the-benefits-and-drawbacks-of-investing-in-a-rental-property-800644100.aspx Investing in a rental property can be a lucrative deal for investors and provide them with a viable source of equity in the event of a financial emergency. But the decision to purchase a rental property should be thought through carefully, as financial missteps or a weak economy can make these investments costly and unrewarding.

Industry experts agree that being educated in the local rental market is key in making a wise decision about whether to take on an investment property, according to Consumer Reports. For example, you may consider purchasing a property that is affordable and up-to-date and converting it to a rental. In cases in which you cannot purchase the home outright, you would likely depend on rent payments from tenants to help you cover monthly mortgage payments.

In areas that are thriving and appealing to potential tenants, you may be able to find willing renters easily, making it easier to profit from your investment. However, if the area is weak economically, finding potential tenants may be difficult, forcing you to lower your rental rates and take on more of the mortgage obligations yourself, Consumer Reports explains.

"Statistics are the key," certified financial planner Susan Kaplan told Consumer Reports. "You must get data on vacancy days of comparable properties, length of time in tenant turnovers, rental rates in your community, and general demand. A property might be priced low because rentals are down in that area."

Other costs

In addition to covering the mortgage costs of a rental property, determining how to manage the building or home is equally important when examining your finances. In cases where you have a number of tenants, you may opt to hire a property management company to deal with repairs, issues and tenant background checks, the news source reports. However, this service can cut into a percentage of your income so it's important to make sure you can afford these costs.

In addition, failing to screen new tenants adequately or mismanaging rental agreement contracts can lead to potential issues down the road when it comes to trying to remove poor tenants from your property. For this reason alone, it's also important to conduct background checks and work with an attorney or professional to draft comprehensive rental contracts. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/consider-the-benefits-and-drawbacks-of-investing-in-a-rental-property-800644100.aspx Wed, 16 Nov 2011 20:12:40 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/younger-generation-has-little-brand-loyalty-800642287.aspx Previous surveys have suggested that when people are in the market to buy a new car, a considerable number of them gravitate toward purchasing from a brand that they've bought in the past. But according to a new survey, brand loyalty is something the younger generation values little.

Business consulting firm GfK Automotive recently conducted a poll among individuals that were born between 1965 and 1994, focusing on whether this group of buyers showed any type of allegiance toward purchasing specific vehicle brands. It found that, contrary to older buyers, individuals who were 46 and younger exhibited little fidelity to any one brand.

Doug Scott, senior vice president of GfK Automotive, said today's buyers exhibit far more loyalty toward technological products, such as entertainment systems, smartphones and internet providers.

Because automakers have relied on brand loyalty as a means of attracting car buyers, Scott says manufacturers will have to come up with alternative ways of appealing to their target markets.

"Automotive brands need to be aware of the effect of disenfranchisement among both Generation X and Generation Y, and ensure appropriate product and marketing efforts," said Scott. "Younger purchasers, Generations X and Y, are least brand loyal, while boomers and pre-boomers remain brand loyal."

A vehicle that's fun to drive may inspire loyalty

One way of reigniting brand loyalty in the younger generation may be to focus on what inspires buyers to be faithful to a particular vehicle make.

For instance, according to a 2010 poll conducted by global marketing firm J.D. Power and Associates, when car buyers were asked what made them want to be loyal to a particular brand, a considerable number of them said it had to do with how fun it was to drive.

Compared to 2009, the study found that the importance of a vehicle behind fun to drive as a reason for owner loyalty increased eight percentage points compared to 2009. Meanwhile, a previous top consideration for brand loyalty—resale value—fell 10 percentage points.

"Vehicle owners are increasingly citing emotional, rather than practical, reasons for staying with their vehicle brand or switching to a different one," said Raffi Festekjian, director of automotive product research at J.D. Power. "In light of this, developing new models with attractive styling and that are perceived as fun to drive is increasingly critical for automakers in order to retain and conquest customers as the market continues to recover."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/younger-generation-has-little-brand-loyalty-800642287.aspx Tue, 15 Nov 2011 13:43:41 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/avoid-rash-actions-when-the-market-is-volatile-800639178.aspx Millions of Americans are still trying to recover their losses from the stock market collapse in 2008, so it's natural that many investors become anxious during market ups and downs. Market volatility is a habitual and expected occurrence, but current economic and political turmoil have made it difficult for investors to remain calm during periods of disruption.

However, making rash decisions each time the market fluctuates can do more harm than good to your portfolio and make it more difficult for you to grow your wealth. Instead, taking a cautious but strong approach to investing can help you make calculated decisions and ease your anxiety.

The first step any investor should take, regardless of age or experience, is to develop a long-term investment plan, according to Consumer Reports. Establishing an investing strategy is a multi-faceted goal. Educating yourself on your different options is crucial, even if you allow a broker or investment manager to handle your portfolio. Research different types of investment vehicles and pay special attention to their performance history, especially during certain market trends. While you can never predict which way the market will fall, being able to pinpoint trends and notice patterns can only help you manage your funds.

Educating yourself on your different options will help you develop a long-term plan because you will have a greater understanding of how best to diversify your portfolio and allocate your stocks, bonds and cash investments. Making a goal of regularly investing in your plan, despite market conditions, can help you stay on target and avoid rash actions that could set you back, the news source explains.

In addition, conducting an annual check of your portfolio diversification may prompt you to re-evaluate your current investments and goals. Most experts recommend an annual 'clean-up' and urge you to rebalance your funds to take advantage of new investment opportunities, the news source reports. Selling over-weighted assets and purchasing low-cost stocks can help you adopt the mindset of 'selling high and buying low,' which may boost your investment income over time.

Take some safety precautions

Regardless of how careful you invest your money, it's smart to have some security measures in place to protect you financially. Professionals urge you to have a healthy cash reserve on hand to cover any sudden expenses that may arise, as opposed to being forced to sell off investment assets. Although the returns may not be significant, putting enough money into a low-risk fund, such as a certificate of deposit or money market, can give you the financial cushion you need to withstand financial hardship while still earning interest.

Investing in a few consumer staple stocks, namely those that sell products that are always in high demand, can also help you ride out market volatility and take advantage of healthy dividends, the news source reports. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/avoid-rash-actions-when-the-market-is-volatile-800639178.aspx Thu, 10 Nov 2011 15:13:10 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/new-rules-may-help-underwater-homeowners-refinance-800639155.aspx Homeowners, economists, and industry professionals alike have been urging the government to establish a program that would allow a significant demographic to take advantage of low rates and, by extension, give the housing market a boost, and amendments to a current program may fulfill this goal.

The government is currently making changes to the existing Home Affordable Refinance Program that will allow underwater homeowners—that is, individuals who are paying more on their mortgage than their property is worth—to refinance their home loans. The current HARP program excludes homeowners who are severely underwater on their homes from refinancing, essentially locking millions of distressed Americans out of opportunities to improve their financial well-being.

The amendments to HARP, which would be available to eligible homeowners as early as December, would apply to individuals whose home loans are backed by Fannie Mae or Freddie Mac. The changes would do away with the current 125 percent loan-to-value ratio and would apply to homeowners who are current on their mortgages, regardless of how underwater they are. In addition, the refinance process would become more affordable, as appraisals, fees and other underwriting requirements may be waived.

In addition to helping underwater homeowners put themselves in a better financial position, the government hopes the changes will push homeowners to apply for shorter refinancing terms. The Federal Housing Finance Agency, which oversees government-backed mortgage guarantors Fannie Mae and Freddie Mac, says the program, which will be extended to 2013, may help up to 1 million homeowners refinance their current terms.

"We know there are many homeowners who are eligible to refinance under HARP and those are the borrowers we want to reach," FHFA acting director Edward DeMarco told CNN Money.

Some experts are skeptical

Although many agree that the program will help some homeowners find financial solutions to mortgage strain, some experts say the changes will not have a profound effect on the housing market overall.

"To have true shock and awe that would jump-start the economy you need a lot more than 600,000 additional refis," financial policy analyst Jaret Seiberg told Bloomberg Businessweek.

In addition, industry professionals say lenders are not required to get on board with refinancing loans guaranteed by Fannie and Freddie, and many are apprehensive to do so if they view borrowers as a high credit risk. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/new-rules-may-help-underwater-homeowners-refinance-800639155.aspx Thu, 10 Nov 2011 15:02:15 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/florida-city-officials-want-insurance-rates-lowered-with-accidents-reduced-800638967.aspx In communities and cities in several parts of the country, officials have taken steps to try and improve traffic safety by having red-light cameras installed at intersections. And in towns like Aventura, Florida, their installation has paid off, as the rate of accidents has declined, the Miami Herald reports.

What are red-light cameras?

Red-light cameras work by automatically photographing vehicles that go through red lights. These pictures are then sent to traffic safety officials and violators are fined. The hope is that these costs will deter red-light running, and in so doing, reduce accidents.

Because the cameras have proven to be effective in Aventura, city commissioners recently voted unanimously to ask the state insurance commissioner to lower auto insurance rates for drivers.

"Insurance companies will not hesitate to increase rates for those living near dangerous locations," said Aventura commissioner Bob Diamond in an interview with the Herald. "There should be no hesitation to reduce the rates at safer locations."

But according to Robert Hartwig, president of the Insurance Information Institute, the chances of auto insurance rates lowering for Aventura residents are slim.

Accidents aren't the only things that affect rates

Part of the reason why is while red-light cameras may reduce the risk of being involved in an accident, crashes aren't the only thing insurers take into consideration when assessing rates. Other factors include how often a vehicle is driven, the population density of a city and the type of vehicle that's being insured, Hartwig told the newspaper.

"While there could be some benefit on the insurance margin, people should think of this as if a police officer were standing at the intersection," said Hartwig. "The extent that there is a benefit to the cost of insurance is very secondary."

Two-thirds of drivers nationwide support red-light cameras

While only a relative handful of cities have installed red-light cameras at busy intersections, more cities may be doing so as they've proven to be highly effective in cities where traffic is high. According to a recent study conducted by the Insurance Institute of Highway Safety, big cities that have installed red-light cameras have seen red-light running fatalities drop by nearly 25 percent. Surveys suggest drivers are in favor of having them installed as well, as IIHS recently found that approximately 66 percent of motorists favored their use.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/florida-city-officials-want-insurance-rates-lowered-with-accidents-reduced-800638967.aspx Thu, 10 Nov 2011 13:03:45 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/reading-the-fine-print-of-free-maintenance-plans-800638957.aspx As any car owner can attest, regular auto maintenance is a critical part of vehicle ownership, as it can often be the difference between a vehicle running smoothly its entire life or one that's in constant need of service.

Because maintaining the upkeep of a car can be expensive, some automakers offer free maintenance packages for used cars. In the dealer's mind, incentives like these benefit the consumer by enabling them to get something for free and benefit the dealer because it drums up demand and can further incentivize someone to buy.

But as financial information organization Bankrate.com indicates, free maintenance plans often differ considerably. As a result, potential car buyers should ask dealers a few questions to determine whether it's worth their while.

What services will be performed free of charge?

According to Bankrate, dealers' definition of "free maintenance" varies. Some define it as a single oil change, while others include multiple services, so long as the car has been driven less than a certain number of miles. Asking dealers about the details of a free maintenance plan is therefore advisable.

Equally as important as what a maintenance program includes is also what it doesn't provide for. Bankrate indicates that things often requiring regular maintenance—such as brakes, tires and windshields—are usually not included in free maintenance plans. Therefore, it's best to ask what a maintenance plan excludes, such as whether the plan provides for both parts and labor.

Does the plan require being serviced by a particular dealership or mechanic?

Car owners often like to take their vehicle to a particular mechanic because a level of trust and rapport has been established. However, if individuals want maintenance services covered under their plan, the dealer may require that the owner go to a specific dealership. Bankrate says car owners should ask about this as well.

Does 'free maintenance' require purchasing something other than the car?

Finally, in order to obtain a free car maintenance package, it's sometimes contingent upon the car buyer purchasing an extended warranty or another product or service. If the car buyer was planning on purchasing a warranty already, than it's not an issue. However, Bankrate says car buyers should understand that "free maintenance" often requires something to be purchased first.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/reading-the-fine-print-of-free-maintenance-plans-800638957.aspx Thu, 10 Nov 2011 12:55:33 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/mortgage-rates-back-above-4-percent-800635063.aspx People who were looking to keep their home renovation costs down had to have been pleased when Freddie Mac reported in early October that mortgage rates were below 4 percent for the first time in their history. But almost as quickly as they came, they were gone shortly thereafter.

Average mortgage rates were 3.94 percent for one week

According to Freddie Mac's Primary Mortgage Market Survey, during the week of October 6, average rates for a 30-year fixed-rate mortgage fell to 3.94 percent down 7 basis points from the week prior. But seven days later, mortgage rates for 30-year FRMs jumped back to 4.12 percent.

Frank Nothaft, chief economist for the mortgage giant, attributed the sharp rise to a better-than-expected unemployment report. This had investors purchasing more government securities, which tends to lead to mortgage rates increasing.

"The economy added 103,000 workers in September, aided by the return of striking Verizon workers," said Nothaft at the time. "In addition, revisions to July and August figures added a total of 99,000 jobs to payrolls."

While average mortgage rates may be higher than where they were the first week of October, market observers say, historically, they're still very low. However, housing experts say that because lending restrictions have tightened so much, it's difficult for prospective homebuyers to obtain a prime lending rate. But the Senate recently passed a measure that could help more Americans buy homes.

Senate votes to reinstate higher lending limits

On September 30, maximum loan limits on government-backed mortgages fell from $729,500 to $625,500, making it more difficult for homeowners to finance a home. By mid-October, though, the Senate voted 60 to 38 to restore the higher lending limit.

Bob Nielsen, chairman of the National Association of Home Builders applauded lawmakers who supported the reinstatement.

"The National Association of Home Builders commends the Senate for approving an amendment offered by Senators Bob Menendez and Johnny Isakson that is essential to help mend the struggling housing market, provide affordable mortgages for creditworthy home buyers and move the economy forward," said Nielsen. "The 60-to-38 vote demonstrates bipartisan support for pro-housing policies that will help our industry to create jobs and spur economic growth."

He added that Congress should act as soon as possible so that the bill can be made law. However, Reuters reports that the bill won't be voted on by the full chamber until later this year.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/mortgage-rates-back-above-4-percent-800635063.aspx Fri, 04 Nov 2011 15:03:19 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-shoppers-turning-to-the-internet-to-perform-research-buy-800635057.aspx Traditionally, when consumers are in the market to buy a new car, they'll typically visit a variety of auto dealers so they can get an idea of what's available. But with the advancement of technology, car buyers are increasingly equipping themselves with information they discover online so that it better prepares them to land a good deal on a vehicle.

As the Los Angeles Times reports, this has been made possible through websites like Kelley Blue Book, Edmunds.com and TrueCar.

"I went to the dealers better prepared," said Chino, California, resident Jane Wolff in an interview with the LA Times. After collecting data from the various websites, Wolff said she was able to negotiate a deal that was near the invoice price.

While there are a variety of online resources car shoppers can use, the Times says the triumvirate of Kelley Blue Book, Edmunds.com and TrueCar has dominated the market. In fact, visits to their respective websites have been so robust, combined they've hired 200 workers this year alone to accommodate demand.

Negotiating price most dissatisfying experience for car shoppers

Jim Gaz, senior director for automotive retail research at the consulting firm J.D. Power and Associates, told the source he wasn't surprised more people are taking advantage of online resources. Because working out a deal for a car is the most dissatisfying part of the car buying process for consumers, individuals want to "arm themselves with information about price and features before they approach a dealership," he said.

But some individuals are circumventing visiting the dealer altogether. For instance, websites like TrueCar often act as the intermediary between salespeople and customers, as dealers pay TrueCar $299 for every new vehicle sales transaction facilitated through its website, the LA Times reports. Scott Painter, chief executive of TrueCar, said this trend is only going to increase in the years and months ahead.

But not according to Beau Boeckmann, vice president of the nation's largest Ford dealership, who told the paper that there's still something to be said for deals that are done in person.

"I would also venture to say there is more to the deal than just the price," said Boeckmann. "There is the financing aspect, the trade-in, customer service, building a relationship with a business in your community—all things that aren't just the lowest price thrown out on the internet."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-shoppers-turning-to-the-internet-to-perform-research-buy-800635057.aspx Fri, 04 Nov 2011 14:59:16 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/what-to-do-if-the-economy-contracts-800631761.aspx With the unemployment rate in elevated territory, real wages declining and the real estate market struggling to recover, several financial experts believe the economy is headed for another recession. But as The Associated Press details there are several things consumers can do to ensure they aren't adversely affected.

Look for ways to save

One of the best ways to prepare for a difficult financial time is to make an assessment of one's current expenses. Once the calculations are made, consumers often find they are spending more than they should be. In order to change this Chris Bixby, a financial advisor, tells The Associated Press that consumers should try and reduce their big expenses and totally eliminate small ones, or those that they can live without.

For example, one way individuals can trim their big expenses is by reviewing their insurance policies. If their auto insurance and homeowners insurance are covered by separate providers, they may want to consider having one insurer cover both their car and home. By doing this, consumers can take advantage of an insurer's multiple policy discount, which may help them save hundreds of dollars.

Another avenue in which consumers can often find savings, according to the AP, is by refinancing a home mortgage. Rates are in record-low territory, and by taking advantage, homeowners can wind up saving thousands of dollars over the life of a mortgage. Homeowners may also want to change the amortization period of their loan so that they can pay off their mortgage faster.

While consumers are changing mortgages, they may also want to change banks, the AP advises. Due to a series of rules and regulations passed under the Dodd-Frank Act that have diminished banks' earning potential financial institutions are applying new fees and services charges to thinks they weren't previously, such as debit cards. Switching banks may help consumers avoid these fees.

As for smaller costs, The Associated Press says eliminating them can make a big difference when they're all put together. By cancelling subscription services to premium movie channels and magazines and eating out less often, the savings add up over time.

Assessing one's employment situation

In addition to finances, individuals should also assess their employment situation, as many industries are cutting back on their payrolls and performing layoffs. Eleta Jones, associate director of the Center for Professional Development at the University of Hartford, told the AP workers can take a number of proactive steps.

For example, because networking is crucial to finding a job, individuals should expand their connections by joining an alumni club or social group. The more people individuals know, the better chance they have of encountering someone who knows about a job they might be a good fit for.

Because job positions can be filled quickly, Jones says it's important for people to make sure their resumes are up to date so that they can be submitted in a timely fashion.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/what-to-do-if-the-economy-contracts-800631761.aspx Tue, 01 Nov 2011 11:10:16 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/critics-question-effectiveness-of-government-intervention-in-the-housing-crisis-800623913.aspx Housing market recovery has made few strides in recent years and recent figures relating to new loan originations, foreclosures, refinance agreements and loan modifications suggest that the housing crisis is far from over. But many industry experts and consumers alike are scratching their heads at this lack of recovery and improvement given the massive resources the government has devoted to revitalizing the economy and housing market.

Billions of dollars have been funneled into programs that were designed to provide direct aid to homeowners, ranging from the Home Affordable Modification Program to federal foreclosure assistance programs. In addition to these direct efforts, sizable resources were given to corporations, lending companies and mortgage guarantors, a strategy the government hoped would result in lower borrowing costs and a relaxation of strict lending standards, according to U.S. News and World Report.

Despite the government's best efforts, investors, banks and consumers remain apprehensive about the prospects of recovery in general, as evidenced by the market's skeptical reaction to the newest Federal Reserve program, Operation Twist. The program is designed to lower borrowing costs further, but experts say the initiative will have little impact on the one market demographic that has the power to lend considerable financial strength to the housing market: underwater homeowners. Millions of homeowners have found themselves unable to refinance their mortgages due to tightened lending restrictions or their properties being underwater.

"It's slowly but surely dawning on a lot of folks that if we can't get underwater borrowers into the game, we're missing all kinds of very powerful economic stimulus that really doesn't cost the taxpayers virtually anything," Keith Gumbinger, president of mortgage information site HSH.com, told U.S. News and World Report.

More than 20 percent of U.S. homeowners currently owe more on their mortgage than their home is worth and others do not meet the equity requirements to refinance their current terms, the news source reports.

Other factors

In addition, high unemployment has left other homeowners with no source of income, another scenario that bars them from refinance opportunities. Although President Barack Obama has proposed altering the stipulations of the federally-backed Home Affordable Refinance Program to include some homeowners who are underwater on their mortgages, the government has not been able to reach an agreement on the terms of a new initiative.

The recovery of the housing market depends largely on consumer participation and their own personal finances, making it difficult for the government to provide a one-size-fits-all solution to the crisis. High unemployment rates have left millions of homeowners unable to meet their financial obligations, pay off debt and qualify for new loans or refinance opportunities. In addition, many consumers who are gaining more financial stability are hesitant to make big-ticket purchases, invest aggressively or take on risky ventures for fear of another recession. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/critics-question-effectiveness-of-government-intervention-in-the-housing-crisis-800623913.aspx Fri, 21 Oct 2011 12:08:50 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/many-cars-cost-more-used-than-new-800623884.aspx One of the reasons why consumers favor purchasing a pre-owned vehicle as opposed to a new one is because they tend to cost less. But as The Wall Street Journal recently pointed out, this isn't always the case.

According to numbers collected from NADAguides, the research and pricing-information source for the National Automobile Dealers Association, The Wall Street Journal reports that among vehicles with 2011 model years, more than 100 cars now cost more used than when they were initially sold new.

For instance, for a base model of a 2011 Nissan Versa, the manufacturer's suggested retail price was $9,990. Today, that same model is sold used for an average of nearly $13,900—a 39 percent increase. Another vehicle with a significant disparity when it was sold new compared to its used version is the Chevrolet Aveo 5-door LS. Off the showroom floor, its MSRP was more than $12,100. Used it sells for 20 percent more than that at $14,525.

Few new-car sales fueling high ticket prices for used models

What accounts for the price disparity? According to The Wall Street Journal, it all goes back to supply and demand, as used cars aren't as prevalent as they've been in the past due to fewer people buying new cars over the past three years. Further, citing NADAguides as its source, the WSJ says more people are opting to buy their vehicles after leasing them. Typically, when leases expire, drivers return them to their dealer.

Some economists say that used vehicle prices are finally beginning to trend downward, however.

Prices for pre-owned vehicles are expected to "ease" considerably in the near term as the index moved lower in September, according to consulting firm Manheim and its Used Vehicle Value Index. Tom Webb, Manheim's chief economist, said he "would not be surprised" to see the index dip to 120 at some point within the next three months or even as low as 115. In September, it dropped to 122 from nearly 124 in August. In September of 2010, the index was 118.

Despite the anticipated decrease in used car prices as 2011 nears its end, Webb also said that used car prices today are high when comparing them to where they've been historically. For example, Automotive News points out, in 1995, when Manheim starting publishing its used vehicle value index, it measured around 100.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/many-cars-cost-more-used-than-new-800623884.aspx Fri, 21 Oct 2011 11:38:02 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/dont-skip-the-inspection-when-hunting-for-an-apartment-800620629.aspx Apartment hunting can seem like a grueling process and most renters focus on characteristics such as space, affordability, utility costs and location. During this process, it's easy to overlook hidden safety issues that could jeopardize your health and, by extension, your finances.

When you're looking for an apartment, it's suggested that you take the same amount of caution and care relating to safety concerns that you would if you were seeking to buy a home. There are a number of key areas that should be examined, ranging from the apartment's wiring to possible signs of mold, according to MSN Real Estate. When you venture out to explore a new apartment listing, make sure you take the necessary steps to seek out potentially harmful issues and address them before you enter into a contract.

Know what you're looking for

Most problems will not be in full view of prospective tenants or landlords, so it's your job to come prepared and conduct a thorough inspection of each potential apartment. First, check the wiring to ensure it's not faulty. You can do this quickly and easily by purchasing an outlet tester, which may run you between $5 and $10, the news source reports. The device can quickly determine whether each outlet is wired correctly.

"I want two yellow lights," Bob Sisson, a Maryland home inspector told MSN. "If I don't get two yellow lights, there's something wrong. Fix it, because it's dangerous."

In addition, it's prudent to check under sinks, around the toilet, under the stove and inside cupboards and cabinets for water damage that could lead to dangerous mold. Mold has been cited as a cause for a number of illnesses that could be potentially deadly, so checking these areas thoroughly is crucial. Tony Smith, chief inspector for House and Home Inspection Services in Iowa discourages individuals from entering into a rental contract if mold is present in the apartment.

"Most landlords are not going to clean it up properly," Smith told MSN. "They're not going to hire a professional remediation firm. They'll attempt to clean it up themselves, and what will happen is, they'll contaminate the place more."

Lastly, if you spot areas that may need to be repaired prior to your moving in, take pictures as evidence of the problems. If you agree to take the apartment, make sure that it is clearly written in your lease agreement that these problems will be repaired prior to your moving in. Getting this information in writing and having photographic evidence to support your claims will add a layer of protection in the event of a problem.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/dont-skip-the-inspection-when-hunting-for-an-apartment-800620629.aspx Tue, 18 Oct 2011 07:43:35 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/rent-agreements-between-friends-family-800620071.aspx Living in an information age, the ability to find an apartment to rent has never been easier. In addition to frequenting websites of real estate listing services and brokerage firms, many apartment hunters take the traditional method of talking to their friends or relatives to see if they—or someone they know—are renting out a property.

While renting an apartment from a friend or family member is a worthwhile option, it can potentially lead to a rift forming in the relationship, according to a residential property management specialist.

In a special for the property listing website Zillow, Salvatore Friscia, founder and owner of a San Diego-based real estate investment group, answers the question about whether it's a good idea to rent from a relative or close friend.

"Renting from a family member or friend may seem like a good idea at first, but all too often the tenancy ends with one party feeling like they were taken advantage of, or neglected," writes Friscia.

Relaxing procedures of renting a bad move

Friscia says that when someone rents a property from someone they don't know, the typical formalities are commonplace and not given a second thought, such as filing lease agreements, security deposits and what fees there are if rent isn't paid on time. When relatives rent from their loved ones, these procedures are often relaxed or voided based on the closeness of the relationship.

"This may seem like the owner is doing the tenant a favor allowing for an easy rental arrangement, but in actuality both parties are now at risk without contractual agreements in place detailing the tenant's and owner's rights and obligations," Friscia writes.

And this doesn't take into account scenarios that may cause resentment. For instance, Friscia says that occasionally, due to the renters' financial circumstances or repair costs, rates may need to be raised. Is the person renting out the apartment prepared to ask their loved one to pay more? Will the renter be offended by the request, thus putting a strain on the relationship?

Friscia is quick to point out that families can and do rent out their properties to close friends or loved ones regularly, with both parties able to handle the situation during and afterward fine. However, to avoid the possibility of the arrangement ending badly for a relationship, he recommends that it be treated like any other business venture would, one that includes all the paperwork that's used when renting out a property where two people are unaffiliated personally.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/rent-agreements-between-friends-family-800620071.aspx Mon, 17 Oct 2011 15:24:10 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/bad-economy-affecting-teens-driving-capabilities-800620054.aspx Many Americans are dialing back their discretionary purchases as one of the primary ways to save money. As a recent survey of parents with kids who are old enough to drive indicates, oftentimes saving comes at teenage drivers' expense.

According to a poll conducted by Allstate, approximately 60 percent of parents whose children hold a license are cutting back on their expenses by spending or saving less for their kids' wheels.

While the survey found this to be the case among virtually all parents, how likely moms and dads were to spend less on their children's driving was largely contingent on how much they earned. For instance, among households making less than $30,000 per year, 72 percent of parents said they were spending less on their children's driving, such as putting less money away to buy a new car. But among households earning in excess of $75,000 annually, just 32 percent said the same thing.

Your own car?

Due to the recession, many of today's younger drivers may be going without wheels for a longer period of time compared to teenage motorists from a few years ago when the economy was more robust. However, when the parents polled were their kids' age, few ever had vehicles they could call their own.

The poll found that among parents whose kids already have a driver's license, 73 percent said their child already owns a car of their own. This is a stark contrast to the 48 percent of parents who said they owned a vehicle in their teenage years.

Among those whose kids were approaching driving age and were still considering buying their children a car, Allstate asked respondents how much they were willing to spend for it. The majority of those polled—57 percent—said they would be willing to part with no more than $5,000, while 41 percent said they'd likely spend more than that total.

Teens drive used cars

The survey also questioned parents whose kids already owned a vehicle whether that car was used or new. At 94 percent, the overwhelming majority said their children's car was used, the mean age being approximately nine years old. Given that most teenagers have limited income and the average new car costs $28,400, according to the National Automobile Dealers Association, this is not surprising. But as The Wall Street Journal recently reported, this isn't always the case.

After reviewing pricing information from NADAguides, more than 100 vehicles with 2011 model years cost more used than when purchased new. The reason is supply and demand: used cars have become harder to find in the last few years as new-car sales have diminished since 2008. NADAguides says the 2011 Nissan Versa, Chevrolet Aveo and Hyundai Elantra have some of the biggest price disparities, the Versa costing 39 percent more used than when sold new.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/bad-economy-affecting-teens-driving-capabilities-800620054.aspx Mon, 17 Oct 2011 15:16:15 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/avoid-the-most-common-money-drainers-800618633.aspx If anything positive came out of the recession, it's most Americans' adoption of smarter money management practices and a slew of new programs, initiatives and tools designed to help households get a handle on their spending. When most people make a goal to save more money and spend less, it seems reasonable to start making large-scale cutbacks on your expenditures. But experts say that a series of small purchases and habits are actually the most common reason Americans' savings fall by the wayside.

Overspending on small luxuries

One of the first things you may want to look at if you're trying to save money is how often you eat out or pick up fast food, according to MSN Money. While eating out a few nights a week may seem harmless, spending $15 to $30 per meal can add up to hundreds of extra dollars at the end of the month. Studies have shown that cooking at home is often cheaper and healthier than dining out.

In addition to curbing how often you eat out, now may be the right time to cut back on other costly habits, such as smoking or drinking, the news source reports. The costs of these habits can easily range into the thousands by the year's end, and this does not factor in the future costs of health insurance or medical issues that may arise.

Being complacent about prices

Few people are aware of how much they can negotiate prices when it comes to everything from insurance costs and utility services to vacation stays and credit card interest rates. Keep in mind that these industries want your business, so go the extra mile and ask about different pricing packages, discounts, and promotions.

In addition, it pays to be cognizant of your purchase options when buying regular items, such as electronics, furniture, books and clothes. Purchasing these items ‘pre-owned’ through Amazon, eBay and other discount websites can lead to considerable savings in the long run, MSN reports.

Carrying a credit card balance

If you're forced to carry a credit card balance from month-to-month, it may be a signal that you're living beyond your means. In addition to the balance itself, interest rates can inflate your overall bill and make it more difficult for you to pay off the debt in full and put more money in the bank. Instead, try to charge only what you can afford to pay off in full each billing cycle. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/avoid-the-most-common-money-drainers-800618633.aspx Fri, 14 Oct 2011 07:16:59 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/declines-in-lending-present-new-problem-in-housing-market-800618626.aspx The weakness of the housing industry has gained more attention in recent weeks, and the results of new data released by the Federal Reserve may deal another blow to struggling market.

Compiled data from thousands of financial institutions reveals the number of new loan originations in 2010 declined 12 percent from 2009, falling to 7.9 million new mortgage loans, The Wall Street Journal reports.

In addition, data reveals that areas experiencing the fewest new loan originations were those already distressed by plummeting home prices and high foreclosure rates, the newspaper adds. Many lenders are also hesitant to extend financing to investors and buyers who apply for loans in these troubled areas, according to finance website.

"In the current period of high foreclosures and elevated levels of short sales, investor activity helps reduce the overhang of unsold and foreclosed properties," the Fed said in the report.

As a result, already-struggling municipalities or states may only face further financial obstacles in the future if the housing market does not recover.

Recovery bleak, analysts say

Although lawmakers have sought a variety of financial solutions to reverse the housing slump, a new report released by FICO reveals home prices are not likely to improve in the near future. The leading credit analytics agency surveyed a group of U.S. financial institutions and found that 73 percent of bankers think a high rate of foreclosure will continue for at least the next five years.

In addition, 46 percent of respondents said mortgage delinquencies were likely to increase within the next six months. As a result of these scenarios, bankers expect mortgage lenders to tighten their underwriting standards even more.

In addition, tightened lending restrictions may present obstacles for consumers with less-than-perfect credit, a demographic that bankers say will grow in the coming years. Many bankers predict an increase in auto loan, credit card and student loan delinquencies in the coming months, which may inhibit borrowers' ability to qualify for mortgage products in the future.

"Housing has been an enormous drag on the economy for over three years as U.S. households lost trillions of dollars in equity," said FICO chief analytics officer Dr. Andrew Jennings. "While the housing sector will almost certainly gain strength during the next nine years, many bankers clearly believe prices will remain depressed for half a generation. This puts the devastation of the housing crash into perspective." http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/declines-in-lending-present-new-problem-in-housing-market-800618626.aspx Fri, 14 Oct 2011 07:03:08 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/tips-for-first-time-car-buyers-800617832.aspx While a variety of market indicators suggest the economy is far away from recovery, the number of people who are considering buying a new car suggests the market may be on the mend.

According to a recent report from credit reporting agency Equifax, new auto loan originations increased 15 percent between January and June of this year compared to 2010.

In the first six months of the year, auto loan originations totaled 9.6 million, a marked rise from the 8.3 million in the same time period last year.

"Auto lending continues to be one of the most promising lending sectors today based on the data," said Michael Koukounas, senior vice president of the special client services for the firm. "If this momentum can be maintained through the remainder of the year, 2011 year-end totals should reflect a comparable return to normalcy to pre-recession lending levels."

To help first-time car buyers make the shopping experience easier, vehicle valuation service Kelley Blue Book has published a list of things consumers should keep in mind when they visit dealerships.

Be realistic about financing and vehicle use

For instance, while first-time buyers may want to purchase the first vehicle that appeals to them, KBB says consumers should be realistic about how much they can legitimately afford. This can be determined by calculating all of their living expenses—such as shelter, clothing, food, and monthly bills. Whatever's left can go toward car payments and ongoing expenses from owning a car, such as auto insurance and gasoline.

Another recommendation of KBB's is for buyers to gauge their transportation needs. For instance, if a vehicle is going to be used for home projects, a heavy-duty truck may be best. But if the vehicle is going to be travelling far distances, a fuel-efficient car would be more beneficial.

Because first-time buyers often have a variety of wants when it comes to determining what their new car will have, KBB says these wants should be prioritized based on how important the buyer considers them to be.

"Better to stretch a bit for those features that will bring more satisfaction in your purchase and prevent buyer's remorse," KBB recommends.

Do your research

Thanks to the Internet, it's easy for shoppers to research their vehicle of interest. Kelley Blue Book says new car shoppers should take advantage of the information age and visit websites that cater to first-time car buyers.

Finally, KBB says buyers shouldn't limit themselves to one dealer. Instead, they should frequent as many dealerships as possible, comparing the models both in what they offer and how much they cost. If first-time buyers want extras, one dealer's price for a fully-loaded vehicle may cost less than what another dealer is charging for a vehicle that's only nicely equipped.

"The car-buying process is never filled with as much uncertainty as it is for the first time," said Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book's KBB.com. "With this advice in mind, Kelley Blue Book hopes to alleviate some of the stress inherent with such a large financial decision."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/tips-for-first-time-car-buyers-800617832.aspx Thu, 13 Oct 2011 12:08:28 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ford-launches-new-online-comparison-site-800617824.aspx As many retailers can attest, the internet has revolutionized consumers' shopping experience. With a few clicks of a mouse, shoppers can get intimate details on virtually any type of item, all from the comfort of their own home.

But some companies are trying to make shopping experiences that typically require consumers to purchase something in person more internet-friendly.

Ford makes online shopping more interactive

Detailed by PickupTrucks.com, Ford recently unveiled a comparison shopping website tool for its customers which makes the new car purchase experience even more interactive.

For instance, once users log on to the website, new car shoppers will be prompted to answer several questions about the handling and makeup of the vehicle they're considering, and queried about such things as vehicle payload, towing and duty cycle. Once that's done, users will be given a listing of what trucks have the best powertrain capabilities. They can then compare Ford truck models with competing vehicles like the Nissan Tundra, Chevy Silverado or Dodge Ram.

Ford isn't the only automaker that has an online comparison-shopping tool. Prior to Ford's website launch, Toyota had an extensive comparison website as well. PickupTrucks.com says that similar to Ford, Toyota shoppers can sort through a detailed listing of various models' standard and optional features for a variety of midsize and full-size trucks. And, like Ford, users can then price and compare Toyota models with models from other companies that are similar in size.

Truck sales have risen for many automakers

It's little surprise that more comparison-shopping websites are turning up among automakers. Despite some economic indicators suggesting that buying behavior is down among consumers, that's largely not the case for a variety of pickup truck models.

According to sales numbers collected by Automotive News, American carmakers like Chrysler, Ford and General Motors all reported a surge in sales through the first eight months of the year. For instance, Ford sold nearly 362,000 F-Series through August, a 7 percent increase compared to the same period in 2010, while Chevy sold more than 252,738 Silverados, a 7.3 percent jump. General Motors couldn't outdo Ford or Chevy after moving 93,500 Sierras, but it was an 18 percent spike in sales compared to 2010's sales figures from January to August.

By improving the online car buying process—and making it easier to price and compare them with similar makes and models—automakers hope the positive sales growth momentum continues.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ford-launches-new-online-comparison-site-800617824.aspx Thu, 13 Oct 2011 11:57:45 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/future-of-refinancing-appears-bleak-800613786.aspx Refinancing mortgage loans is one strategy millions of Americans have relied upon in the past to lower their monthly payments and make homeownership more affordable. Now, more than ever, homeowners of all income brackets are submitting refinance applications to take advantage of historically low mortgage rates. Many are finding themselves in a frustrating and difficult situation as tight lending restrictions and plummeting home prices are locking them out of the borrowing system.

This scenario is especially frustrating for homeowners who are current on their mortgage payments, but who are underwater or coming dangerously close to being underwater on their mortgage through no fault of their own. Data collected from the Federal Reserve reveals roughly 2.3 million Americans were not able to refinance in 2010 on the basis of falling values or tighter restrictions by banks, The Wall Street Journal reports. Citing a separate report, the Journal also reports that 10.9 million borrowers, or 23 percent of homeowners, owed more on their mortgage than their property was worth at the end of June 2010.

In addition to falling home values, nervous lenders have kept their lending requirements strict, which has disqualified a sizable number of applicants from refinance contracts.

New refinance proposal

The federal government has sought to circumvent this issue by proposing a financial solution in the form of a new program that would allow homeowners with underwater mortgages to participate in a new refinance initiative. The program would be an extension of a current federal program, the Home Affordable Refinance Program, and may allow borrowers who are underwater by as much as 20 percent to refinance their loan, the Associated Press reports. Although explicit details of the proposal have not been fully released, talk of the new plan has created a buzz among lawmakers and homeowners alike, and has already garnered popular support from many political figures.

Eric Rosengren, president of the Federal Reserve Bank of Boston, recently made remarks at an Economic Outlook Seminar that he would favor a program that allowed underwater borrowers to take advantage of refinance opportunities.

"Clearly getting more money into the hands of homeowners who spend it could help to fuel GDP growth," Rosengren said. "This would reduce one of the impediments to a more significant effect from the monetary policy actions taken to date."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/future-of-refinancing-appears-bleak-800613786.aspx Fri, 07 Oct 2011 11:25:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/industry-experts-discuss-the-foreclosure-crisis-800613783.aspx The onset of the housing crisis in 2007 caused a wave of legislation and independent initiatives to stem the rising tide of foreclosures that have impacted millions of Americans. The federal Home Affordable Modification Program, foreclosure mediation clinics and record low refinance rates have done little to quell the volatility of the housing market and millions of homeowners are still struggling to meet their mortgage obligations.

The most recent data from RealtyTrac reveals August 2011 foreclosure filings—defined as defaults notices, bank repossessions and scheduled options—increased by 7 percent from the previous month.

"The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems," said RealtyTrac CEO James Saccacio. "It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process."

As the high foreclosure rate continues to weigh on the housing market, a recent government proposal to turn real-estate owned homes into rentals to stimulate the economy is circulating. And now industry leaders are commenting on this suggestion, and providing their thoughts on the steps that need to be taken to reverse the crumbling real estate market, the Wall Street Journal reports.

Stay the course

Some industry professionals, such as New Jersey Association of Realtors president Allan Dechert supports the idea of using additional funds from the contentious Troubled Asset Relief Program to provide financial incentives to investors and buyers, in hopes that they will allow for more short sales and modifications, the Journal reports. In addition, Dechert argues that selling REO properties to investors will place too many properties in the hands of a few.

Senior managing director of Amherst Securities Group Laurie Goodman disagreed with Dechert and said she would support a policy that allows investors to purchase foreclosed homes in bundles in certain locations, which would later be rented, according to the newspaper. Chris Kreymeyer, president and founder of non-profit group Beyond Housing, mirrored Goodman's solution, but said investors should be required to give a three- to five-year commitment and keep the investment properties maintained, the newspaper explains.

Other experts, such as Zillow chief economist Stan Humphries, said the government should significantly limit its involvement altogether and allow the market to remedy itself. Humphries asserts that government programs to convert REO properties into rentals would create unnecessary market competition and further alienate investors, the newspaper reports.

Although a number of different groups are working together to forge solutions, home prices remain low and the number of underwater mortgages and foreclosure filings remain elevated. Economists and analysts alike do not project significant or sustainable recovery for the housing market until the employment statistics improve, housing prices stabilize and consumers and lenders begin to develop more confidence in the economy. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/industry-experts-discuss-the-foreclosure-crisis-800613783.aspx Fri, 07 Oct 2011 11:22:34 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/slash-home-utility-costs-cheaply-800613778.aspx Homeowners are starting to prepare their homes for the upcoming winter season, and many living in colder-weather climates may be anticipating a spike in their heating and electricity bills. Frigid weather and heavy snow fall often leads to families cranking up the heat and expending more energy to keep their homes warm during the long winter months, leaving them with inflated balances.

There are a number of commonly overlooked tasks you can do to prepare your home for winter and lower the amount of money you spend on utilities, and most of them involve only a few minutes of your attention. One of the most effective, yet underutilized actions you can take is to seal up drafts in your home. Drafts, cracks and other small outlets in doorways and windows allow heat or air to escape, requiring you to continue running your heater for a longer period of time to keep your home warm.

Sealing these drafts with caulk, glue and other inexpensive adhesives can lower your heating bill by as much as 18 percent, Department of Energy research scientist Danny Parker told CNN Money.

Simple fixes

Taking a few minutes to clean out your heating and air filters can also lead to savings. These filters get easily clogged, which can not only lead to insufficient functioning but may also damage the actual heating and air conditioning products themselves over time.

The months prior to the winter season may also be a good time to determine whether you need to re-insulate your home. Insulation helps keep heat in during the winter, but insufficient insulation is common in older homes, according to the Department of Energy. There are different types of home insulation, so speaking with a professional about what type may be the most effective and cost-efficient can help you avoid overpaying. Most experts agree that insulating the attic is the most important and affordable way to keep your home well-heated, the government website reports.

Insulating your home and sealing up cracks can lead to considerable savings, but you can maximize your saving by also changing up some of your habits. For example, if you leave the heat running all day and night, you can expect to receive a hefty utility bill. Instead, automate your thermostat to keep the heat off or on low while you're at work, and increase the temperature a few minutes before you arrive home. This can help you avoid spending money on a service while you're not at home using it. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/slash-home-utility-costs-cheaply-800613778.aspx Fri, 07 Oct 2011 11:18:39 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/millions-locked-out-of-refinance-opportunities-800611765.aspx The housing market is still on shaky ground and millions of homeowners nationwide are battling their own property woes, ranging from foreclosure and loan modifications to plummeting property values. However, a lucky few who meet the equity and credit qualifications have been in a position to take advantage of the one positive benefit to come out of the housing crisis: record low mortgage rates.

Mortgage rates have remained consistently low in recent months, and the average rate attached to a 30-year mortgage recently fell to 4.09 percent recently, the lowest level on record since Freddie Mac began collecting this data, The Washington Post reports. The average rate on 15-year mortgages remained competitive as well and dropped to a record low of 3.3 percent.

Record low mortgage rates have led to an upsurge in the number of refinance applications, as millions of struggling homeowners turn to this option to help them stay on top of their payments and save money for retirement or other purposes. However, a considerable chunk of applicants are dismayed to find that they do not qualify due to credit restrictions, debt, unemployment, and underwater home values.

Experts estimate that these conditions leave roughly 22 percent of borrowers who have underwater mortgages out of the refinancing option, in addition to a high percentage of homeowners who do not have a steady income, according to CNN. The results of a separate report reveal underwater home values and tight lending restrictions kept roughly 2.3 million homeowners from refinancing in 2010, The Wall Street Journal reports.

Refinancing to remain difficult

Industry professionals say credit and lending restrictions will remain a problem, as lenders are unwilling to loosen their standards to take on additional risk. However, the number of underwater homes remains the most significant factor inhibiting families from refinancing, according to the Journal.

The Federal Reserve recently announced a new program that is designated to stimulate the economy by keeping borrowing costs low. However, experts say the program, Operation Twist, will have no impact on the millions seeking refinance agreements, namely because it does not address falling home values and current mortgage prices are already sitting at record lows, CNN reports.

"About a quarter of homeowners cannot even take advantage of what the Fed just did," North Jersey Community Bank CEO Frank Sorrentino told CNN. "And the others who qualify for refinancing, probably already did so." http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/millions-locked-out-of-refinance-opportunities-800611765.aspx Wed, 05 Oct 2011 12:10:25 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/some-home-improvements-shouldnt-be-overlooked-800611763.aspx After a long week at work, the last thing you may want to do on a weekend is clean your gutters or replace your home's air filters. But overlooking menial home maintenance responsibilities can cause tiny problems to balloon into large and potentially costly issues down the road.

There are a number of commonly overlooked tasks that can eventually take a bite out of your wallet, and addressing them while they're still small can help you stay on top of your property, according to The Washington Post.

For example, maintaining clean air filters in your home's air conditioning and heating systems takes little time and effort and they only have to be replaced once every month. But failing to keep your filters clean can cause them to clog considerably, which will result in a spike in your utility balances, home inspector J.D. Grewell told the Post. In more serious cases, the equipment that supports your heating and air conditioning units may also malfunction early.

Cleaning gutters is a more arduous chore that many homeowners put off, but they may be exposing their home to leaks and cracks that can be expensive to fix, Grewell explains.

"When gutters are clogged, they overflow, causing leaks inside, most commonly around the windows, directly underneath the gutters, or in the basement at the floor level," Grewell told the Post. "Many homeowners install gutter screens and think they are home free, but the screens do not prevent dirt from getting in and eventually clogging things up."

Pick a day to also conduct a thorough run-through of your home to check for cracks, leaks, damaged wiring, and other potential problems.

Calling in a professional

Some quick jobs may require you to enlist the help of a professional, especially tasks that involve the foundation, electrical wiring, and other components that require extensive background knowledge. For example, it's important to rely on a professional to check your furnace annually, Grewell told the Post. Inattention to this type of equipment could result in dangerous fumes being exhausted improperly.

The extent that you will have to maintain your property may depend on a number of factors, ranging from the age and condition of the home, weather patterns in your location and how well you have managed the house's upkeep in the past. Most experts recommend setting aside of a portion of your income each year to cover the cost of home maintenance.

"As a rule of thumb, every year you should set aside about 1 percent of your home's purchase price for maintenance and repairs," according to Time Magazine's MoneyLand. "In other words, if you bought a $300,000 home, budget about $3,000 for annual upkeep. This is just a guideline, obviously—some years you’ll spend much less, or much more.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/some-home-improvements-shouldnt-be-overlooked-800611763.aspx Wed, 05 Oct 2011 12:07:47 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/learn-the-basics-of-operation-twist-800611760.aspx The announcement of the Federal Reserve's new "Operation Twist" program has been met with a mixture of praise and criticism from politicians and economists, but many consumers may still be wondering how it will affect them personally.

In simple terms, the program was designed with the goal of stimulating economic growth by lowering borrowing costs to consumers. Under the program, the Fed will replace $400 billion of its short-term securities with long-term U.S. Treasury bonds, which will help keep interest rates low for consumers. However, critics say that the benefits consumers may see from this plan will be mixed and depend largely on how an individual has invested his or her income.

For example, consumers who are contemplating purchasing a home or vehicle may qualify for lower fixed interest rates, a scenario the Fed is hoping will encourage more potential buyers to flood the markets. However, individuals who hold investments in long-term bonds may see income from interest rates fall, according to USA Today. As a result, savers who have placed their financial trust in low-risk U.S. Treasuries may not see substantial benefits from Operation Twist.

"The impact on consumers is pretty minimal," Greg McBride, a senior financial analyst at Bankrate.com, told USA Today.

Operation Twist's cold reception

The Fed's hope that Operation Twist may stimulate economic growth was quickly dampened after it unveiled the new program, as the stock market dipped heavily. The program was expected to quell investor's fears about the shaky economy, but the Fed's heightened presence in the market and suggestion that economic volatility is unlikely to improve in the coming years indicates that sustainable recovery may still be elusive.

In addition, experts say the Fed's focus on mortgage rates alone may not be enough to spur growth and improvement in the housing market, because millions of Americans have either turned away from big-ticket home purchases or do not qualify for competitive mortgage terms due to tight lending standards and long-term unemployment, USA Today reports. Experts also caution that the new program will have no positive impact on credit card interest rates, and adverse market reactions to Operation Twist may inadvertently cause these rates to rise. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/learn-the-basics-of-operation-twist-800611760.aspx Wed, 05 Oct 2011 12:00:58 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/cohabitation-is-on-the-rise-study-shows-800611759.aspx The cost of living has been made more difficult in recent years by the housing market crisis and labor market, and emerging secondary factors, such as high gas prices, inflation and consumer debt have only created additional financial burdens on millions of Americans. In an effort to cut down on one of an individual's most costly necessities—housing—more friends and family members are doubling up and cohabitating together.

A recent report conducted by the U.S. Census Bureau reveals the number of combined or doubled-up households increased to 21.8 million in the spring of 2011, up from 19.7 million recorded in 2007. The report defined a combined household as one in which more than one adult who is not in school, the primary owner of the home or married to or partner of the primary home owner. Experts say the 10.7 percent increase is due to a large number of factors and involves demographics ranging from recent college graduates to middle-aged individuals with large families.

According to the data, adults between ages 25 and 34 who moved back home with their parents constituted a large percentage of the spike, according to The Chicago Tribune. Experts say this may be due in large part to the high unemployment rate that has made it difficult for many jobless adults to maintain their mortgage payments, resulting in higher rates of default and foreclosure.

Recent graduates have also faced challenges in the job market, with unemployment and underemployment making it difficult for young adults to find affordable housing options while paying back credit card debt and student loans.

"Young adults are the recession's lost generation," according to The Associated Press. "In record numbers, they're struggling to find work, shunning long-distance moves to live with mom and dad, delaying marriage and raising kids out of wedlock, if they're becoming parents at all. The unemployment rate for them is the highest since World War II, and they risk living in poverty more than others—nearly 1 in 5."

Making it work

Cohabitating allows many families to save money on living costs, but there are a number of issues related to space, lifestyle and privacy that tend to come up, according to the Tribune. Many young adults may feel cramped and unable to continue the personal growth they enjoyed when living independently at college, and older adults with children may feel less in control of their own families, the newspaper explains.

Many families are working around this by building small additions onto their properties, turning public spaces, such as basements, into private bedrooms or simply setting ground rules and boundaries to provide more privacy, the Tribune reports. Some states that have seen the number of multi-family households increase have accommodated the trend by changing the zoning laws related to building home additions. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/cohabitation-is-on-the-rise-study-shows-800611759.aspx Wed, 05 Oct 2011 11:56:38 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/experts-say-fears-of-a-recession-may-become-reality-800609738.aspx Fears over the possibility of another economic recession have been building for months, as unemployment remains elevated, market turmoil continues and political squabbles hinder consumer confidence. Now, economists and industry experts say the likelihood of another recession is high and may take a toll in the global economy.

The announcement came just after the Labor Department report, which revealed applications for unemployment benefits fell 9,000 to 423,000 for the week ending September 17. Although the slight improvement signaled some recovery, analysts say the gains were not enough to eliminate fears, Reuters reports.

"[The report] suggests that job growth this month is probably not going to be stellar," said Societe Generale economist Rudy Narvas. "It gives more backing to the Fed's decision yesterday to provide more stimulation. The economy is chugging along near stall speed."

Fed introduces new program

The Federal Reserve is doing its part to quell anxiety of another recession and recently unveiled a new program that is designed to boost economic growth by lowering the borrowing costs for consumers. The Fed's program, coined "Operation Twist," will seek to lower interest rates by replacing $400 billion in short-term government debt with long-term mortgage bonds.

The program, meant to assuage investor's fears, may have had the opposite effect and resulted in the markets falling, according to The Los Angeles Times. Rather than calm investors, the Fed's program and sense of urgency attached to it may have highlighted the agency's growing worries of a recession, prompting investors to retreat from the markets, the Times adds.

Amid fears of a new recession, analysts say young adults are likely to be hit the hardest, as high levels of unemployment or underemployment coupled with student loans, new mortgage applications, debt, and the cost of raising new families may be overwhelming.

"Many young adults are essentially postponing adulthood and all of the family responsibilities and extra costs that go along with it," Population Reference Bureau associate vice president Mark Mather told BusinessWeek. "Some of these changes started before the recession but now they are accelerating, with effects on families that could be long term." http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/experts-say-fears-of-a-recession-may-become-reality-800609738.aspx Mon, 03 Oct 2011 12:27:26 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/the-most-fuel-efficient-suvs-trucks-800606180.aspx Sport utility vehicles and trucks are known for a lot of things, but helping drivers save fuel is typically not one of them. However, since the implementation of hybrid technology and manufacturers putting a greater focus on green energy, SUVs and trucks are expanding their reputation.

To help car buyers find the best vehicles that boast a significant gas-sipping ability, automotive research company Vehix.com put together a short list of 2011's most fuel-efficient hybrid SUVs and trucks on the road.

The website arrived at its findings after reviewing fuel-efficiency estimates as tested by the Environmental Protection Agency as well as government crash tests from the Insurance Institute for Highway Safety. The company also reviewed reliability rankings from J.D Power and Associates.

Cadillac Escalade Hybrid: With an EPA combined average of 21 miles per gallon, the new Escalade landed on Vehix.com's list of hybrid gas-sippers because it's marked improvement in mileage over the conventional Escalade, which gets approximately 16 MPG.

Chevrolet Silverado Hybrid: Also receiving 21 miles per gallon is the 2011 Chevrolet Silverado Hybrid. While that's higher than the regular Silverado, the website says it doesn't have a lot of competition among contemporaries, as the only other hybrid truck available for purchase is the GMC Sierra 1500, which gets 21 MPG as well. But what really helped the Silverado Hybrid land on Vehix's list was the good crash ratings from the IIHS and higher than average reliability ratings from J.D. Power and Associates.

Chevrolet Tahoe Hybrid: The Tahoe Hybrid is on par with the previous vehicles suggested by Vehix.com when it comes to fuel efficiency—21 MPG—but what Vehix.com took away as being its best feature was its handling, which the automotive research company described as "smooth and luxurious."

2011 Volkswagen Touareg Hybrid: With a sticker price of $60,000, the Volkswagen Touareg may be cost prohibitive for some, but because it gets an additional two miles per gallon compared to the others and boasts a 3.0-liter V6 engine with eight-speed automatic transmission, the Volkswagen Hybrid edged out the Cadillac and Chevrolet.

2011 Toyota Highlander Hybrid: In the runner-up position, according to Vehix.com, is the 2011 Toyota Highlander Hybrid, which based on EPA tests, gets approximately 28 MPG. In addition to being eminently comfortable and spacious, what also put Toyota's hybrid SUV near the top of the class was its safety rating, as the IIHS designated it a Top Safety Pick.

Ford Escape Hybrid: But the runaway leader in Vehix's most fuel efficient hybrid SUVs and trucks is the 2011 Ford Escape Hybrid. While price point and safety features hamstrung some of the other selections from being ranked first, Vehix says the hybrid Ford Escape is the total package—getting 32 MPG to boot.

"[It's] the best thing going in this segment for a reason," Vehix reports. "It offers the highest fuel efficiency you can find in an SUV, and for thousands of dollars less than the competition. While the look may be getting a bit stale, a cushy interior and lots of hip tech updates position the Escape as a top contender once again."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/the-most-fuel-efficient-suvs-trucks-800606180.aspx Wed, 28 Sep 2011 12:43:00 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/experts-say-rising-home-prices-wont-last-800602231.aspx The fragile housing market appears to be on the mend. However, industry professionals say small gains are not necessarily indicative of long-term recovery. The S&P/Case-Shiller index reveals home prices showed an improvement during the second quarter, rising 3.6 percent from the first three months of the year. However, analysts project that home prices will begin to decline in the coming months, due in large part to recent political squabbles and the overall weakness of the economy.

"The August turmoil of credit rating downgrades, negative GDP revisions, stock oscillations and European debt woes are likely to leave a mark on both August home sales and home value appreciation," Zillow chief economist Stan Humphries told CNNMoney.

Separate reports show that although it's a buyer's market, few consumers feel confident enough in the economy to make big-ticket purchases, such as taking on a mortgage. For example, a recent Trulia study shows buying a home is more affordable than a rental lease in 74 percent of major U.S. cities, namely due to low home prices. In addition, mortgage rates have remained at significantly low levels, giving prospective buyers the opportunity to take advantage of competitive terms and conditions. Despite these benefits, low consumer sentiment, which declined in August, combined with other obstacles has kept home sales low.

"Prospective homebuyers, who are ready and qualified to buy, face an uphill battle despite falling home prices and record-low mortgage rates," said Ken Shuman, Trulia's head of communications. "Today, many banks are actually less enthusiastic about approving residential mortgage applications, which has dragged out the home buying process."

Recovery

Industry professionals may disagree on the severity of the housing crisis and the length of time it may take to recover, but most agree that a quick turnaround is unlikely. Foreclosures remain elevated and stagnant unemployment figures have left many households in a precarious financial situation.

The most recent data from the Mortgage Bankers Association also shows mortgage applications for the week ending September 2 declined 4.9 percent from the previous week and purchase application volumes have remained at low levels not seen since 1996, according to the report.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/experts-say-rising-home-prices-wont-last-800602231.aspx Thu, 22 Sep 2011 14:59:01 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/home-buyers-have-advantage-in-housing-market-800600917.aspx When it came to purchasing a home in years prior, most buyers were usually at the mercy of their lender and the home seller, but a troubled housing market has changed the rules of the game. Falling home values and a shaky market have afforded the buyer more flexibility when it comes to negotiating terms, deadlines, and costs.

Negotiating certain costs can save you hundreds to thousands on purchase price, and there are a number of components that can be modified to meet your needs, according to RealEstate.com. For example, down payment requirements and the type of mortgage you agree to take on are points that can be re-worked with the lender. The interest rate you are assigned is typically at the discretion of the lender, as the mortgage company will take your income, credit standing, and debt into consideration. However, you may gain a little leeway with the rates by telling the lender the maximum interest rate you can feasibly afford, the website reports.

Purchase costs only make up a portion of the overall expenses you will pay when you buy a home, and closing costs can take a chunk out of your bank account as well. Closing costs may include attorney's fees, title searches, title insurance, application fees, credit check expenses, inspections, and document preparation, according to SmartMoney.com.

Keep in mind that a number of these costs, though not all of them, are up for negotiation. Because fees can vary significantly and often appear confusing, understand your payments. If certain fees, such as document preparation fees seem like junk expenses, ask your lender to lower or waive them to avoid overpaying for services.

Don't forget the inspection

In the end, it won't matter how much money you save on the home if you forgo the inspection and find significant problems down the road. A thorough inspection can alert you to current or future problems relating to the property's condition, so this is one service you should not skimp on. When hiring an inspector, it's important to work with a trusted and seasoned professional who will give a thorough analysis of the home's condition. If your inspector finds an issue with the property, weigh the costs of home repairs carefully before deciding whether or not to go through with the purchase.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/home-buyers-have-advantage-in-housing-market-800600917.aspx Wed, 21 Sep 2011 11:53:28 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/missteps-can-jeopardize-home-purchase-800600904.aspx Purchasing a home is one of the largest investments most consumers make during their lifetime, so there is naturally a great deal of risk involved in the process. Mitigating common mistakes many home buyers make can not only ensure that the mortgage application procedures are conducted smoothly, but also help you circumvent preventable financial problems down the road.

Buying a house or condo is a lengthy process that involves a number of players, documents, and procedures. Missing paperwork, sloppy inspections, and legal issues can delay the process further, so if you're an inexperienced homebuyer, avoid taking on the task alone, according to RealEstate.com. Instead, stay in close contact with the professionals helping to seal the deal, including attorneys, real estate agents, mortgage lenders, and home inspectors. Asking questions, adhering to deadlines, and responding to potential issues quickly can help you stay on top of the process.

In addition to working with a number of professionals, it's imperative to understand what you're signing up for. You will be required to date and sign a high volume of legal documents and agreements, so you may be tempted to skip a page or only skim the paperwork. Failing to read the fine print of your agreements can backfire and lock you into a contract that you may not have signed if you fully understood the terms.

In many cases, the agreement may also contain unfamiliar legal terminology that may be difficult to understand, but avoid glossing over it without asking what it means. Obtaining documents well in advance of the signing deadline will give you time to meet with an attorney or contact your lender for an explanation, the real estate website reports.

Be realistic about your finances

You will have a number of professionals at your disposal to help you navigate the actual home buying process, but there are other factors you will need to consider on your own, such as how much you can afford to put into a new home. When you've found your dream home, it's easy to overlook the price tag, repairs and property insurance costs that come along with it, but being realistic about its affordability is imperative to your financial well-being.

Being able to afford your monthly mortgage payments is only one piece of the puzzle, and there are other financial considerations that should be weighed. For example, property insurance coverage is a common oversight many home buyers miss, and one of the most costly, according to CNN Money.

"The most important thing is before you buy a home, find out what it will cost to insure it," said Insurance Information Institute spokeswoman Jeanne Salvatore. "Insurance needs to be calculated into the cost of owning a home. Unlike a mortgage, which you can pay off, you'll be responsible for the insurance costs forever."

When calculating affordability, it's also important to weigh in broker fees, home inspection costs, property maintenance, and repair estimates to get a more accurate picture of the true price.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/missteps-can-jeopardize-home-purchase-800600904.aspx Wed, 21 Sep 2011 11:45:27 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-to-make-a-dorm-room-more-spacious-800595969.aspx The dorm serves as home away from home for college students who live on-campus. However, due to size constraints, dorm rooms often lack the creature comforts students may be used to back at their parents' place.

However, interior designers tell FoxNews.com that college kids can come close to recreating the spacious environs they're accustomed to by following a few home improvement tips.

Improve storage methods

The things kids bring with them from home can often be the biggest impediment to a spacious dwelling area, according to Lauren Smith, an interior designer from Michigan.

"Storage is the biggest problem," said Smith.

To avoid this issue, Smith recommends purchasing bed risers. This will allow students to pack their belongings underneath their beds and still bring the things from home they want.

However, according to Rebecca Hubler, a Washington, D.C.-based interior designer, students should be more finicky about what they will bring.

"I would say that students need to edit before they go to school," Hubler told FoxNews.com. "Sometimes they take too much stuff."

She added that the dorm experience is supposed to be one where students lack what they're used to having at their disposal. Nevertheless, if students find parting with something too difficult to bear, they can always take it with them when they visit during Thanksgiving or Christmas break.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-to-make-a-dorm-room-more-spacious-800595969.aspx Wed, 14 Sep 2011 13:34:46 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/green-utilities-may-increase-resale-value-of-properties-800595955.aspx As automakers' sales data indicates, energy efficiency is a priority for many drivers, as hybrids models have consistently sold well. But as the Washington Post recently documented, energy efficiency also appears to be something on which homebuyers put a premium as well.

Resale value increases 30 percent

When researchers looked at the pace of new and existing home sales between May 2009 and April 2011, they found new properties with energy efficient installations sold for 8 percent more on average than homes that didn't have sustainability features, according to a study conducted by the Earth Advantage Institute. Among existing homes, they sold for 30 percent more.

"We…see a consistent trend that third-party certification continues to result in a higher sales price, even during the past year, when home sales were down," wrote one of the study's lead researchers, Dakota Gale, who heads sustainable finance for the Portland, Or.-based Earth Advantage Institute.

The study defined "third-party certification" as houses that carried Energy Star or LEED designations on utilities. LEED stands for Leadership in Energy and Environmental Design and is an internationally recognized green building certification system.

Solar panels raise value by $20,100

Another study indicating the value of energy efficiency for real estate was performed by researchers from the University of California-Berkeley, which looked at whether solar panels being installed on a roof increased a home's resale value. After examining home sales in San Diego and Sacramento from 2003 to 2010, the researchers found that photovoltaic solar panels increased the appraised value for a home by an average of $20,100. In July, the researchers' study was published by the National Bureau of Economic Research.

Kevin Morrow, senior program manager of green building for the National Association of Home Builders, told the Post that appraisers are often unaware of the increased value green installations provide homes. Mortgage companies also don't recognize their value, according to Morrow.

"The case needs to be made [to lenders] that hey, these [highly efficient] houses will cost less to operate, so they should be worth more," said Morrow.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/green-utilities-may-increase-resale-value-of-properties-800595955.aspx Wed, 14 Sep 2011 13:25:21 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/homeowners-urged-to-be-wary-of-unsavory-contractors-800595948.aspx Though the estimates vary, the destruction left in the aftermath of Hurricane Irene is in the billions of dollars by all indications. Due to the pervasiveness of homes that have been badly damaged, contractors are a hot commodity, as homeowners are eager to hire so they can make their properties whole once again.

The Better Business Bureau urges homeowners to vet contractors thoroughly, as many are looking to defraud hurricane victims out of thousands of dollars.

The BBB calls these fraudsters "storm chasers," as they prey on unsuspecting homeowners and charities whose property has been affected by an environmental disaster.

Stephen Cox, president and CEO of the BBB, said that while most contractors are respectable businessmen, homeowners can be hoodwinked if they don't do their homework.

"Not only do Americans need to be concerned about avoiding fraud, they need to know that their home contractors and charity relief efforts are legitimate and honorable," said Cox. “It's imperative to find a home contractor and charity that you can trust."

The BBB can help homeowners determine if a contractor is accredited. Thousands of accredited businesses are registered with the BBB. By conducting a search at the organization's website, individuals can learn more about the contractor in question and whether it's received good reviews from those they've been hired by in the past.

Be on the lookout for red flags

Before homeowners even get to that, there can be a number of warning signs. For example, BBB says it's best to avoid contractors who require full payment up front. As a general rule, according to the Federal Trade Commission, legitimate contractors ask for an upfront fee that's about one-third of the quoted price.

Another red flag is a contractor who shows up at a residence unsolicited. Because work tends to be busy after damaging storms, contractors generally don't have the time to go door to door looking for a job.

The BBB says homeowners can never be too cautious when hiring a contractor, so it often pays off to ask them for references from others they've worked for. Individuals may also want to ask if they're licensed to work in the state.

Get everything in writing

If everything checks out, BBB says homeowners should make sure they get all estimates in writing. This should not only include what the price of the service will be, but also a detailed description of what services will be performed.

While knowing how to properly vet a contractor is a key part of the hurricane preparedness process, safety, relief and insurance organizations have been releasing guidelines for what homeowners can do to fortify their home. The Federal Emergency Management Agency, the American Red Cross and the Insurance Institute for Business and Home Safety have tips at their respective websites.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/homeowners-urged-to-be-wary-of-unsavory-contractors-800595948.aspx Wed, 14 Sep 2011 13:21:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/stave-off-foreclosure-800595918.aspx Many households are still feeling the lingering effects of the recession and persistent unemployment and inflation have put many homeowners at risk of defaulting on their mortgage. Realizing that you're at risk of falling behind on your mortgage payments can be terrifying, but there are a number of steps you can take to explore solutions and other options.

First and foremost, staying in close contact with your lender is crucial, according to RealtyTrac CEO James Saccacio. Avoiding your lender after a missed payment will not help your case, but taking a proactive approach and alerting your mortgage company to your situation can encourage it to help you find other financial solutions.

Your lender may also be in a position to offer other repayment plans you were not aware existed, Saccacio explains. For example, you may be eligible to refinance your current mortgage or qualify for a forbearance program. There are a number of refinance programs available to homeowners whose loans are backed by federal mortgage guarantors Fannie Mae and Freddie Mac, as well as those backed by the Federal Housing Administration, according to the San Francisco Chronicle. In addition, some lenders may offer their own programs that can help homeowners take advantage of payment alternatives.

The process for these options can be tedious, so if you're having difficulty making ends meet, work closely with your lender or mortgage professional to ensure your paperwork and application documents are filled out correctly and accurately. Missing small steps can result in processing delays or cause your application to be rejected.

Make personal sacrifices

During this period, it's also imperative to conduct a thorough review of your overall finances and determine if you can squeeze more money out of your current income. Start with your budget and look at spending categories that can be curbed, such as pricey cable and utilities packages or small luxury purchases that add up. Skimping on morning coffee may not make a significant difference in your income, but curbing spending and canceling non-essentials can have a profound combined effect on your finances.

Lastly, it's important to be honest and realistic about the prospect of foreclosure. For this reason, know how much time you have to find a solution. Each lender may impose different rules and deadlines, and staying abreast of these timelines is essential when you're seeking out alternatives. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/stave-off-foreclosure-800595918.aspx Wed, 14 Sep 2011 13:06:41 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/better-to-save-or-pay-off-debt-800595913.aspx When you're staring at a $10,000 credit card bill, putting any additional funds you have into a savings account may seem like a poor use of your resources, and many experts would agree. However, other financial advisors encourage habitual saving, regardless of how much you owe in loans or credit card bills. These opposing views make it difficult to determine whether to prioritize paying down debt or saving money, and making the right decision depends on a number of individual factors.

For example, Cornerstone Wealth Management founder Rich Arzaga told Daily Finance that prioritizing debt makes sense for individuals who are trying to accomplish specific goals, such as improving their credit scores. In addition, consumers who owe on credit card or loan accounts that carry exorbitantly high interest rates may benefit from paying down their balance before the additional charges begin to accumulate.

On the other hand, inadequate savings can jeopardize a household's finances and exacerbate debt if an emergency occurs, such as an unexpected medical expense or home repair, according to Daily Finance. In these situations, families may be forced to turn to credit or drain retirement savings to cover sudden expenses, creating a heavier financial burden.

Americans choose to reduce debt

A recent poll conducted by the National Foundation For Credit Counseling reveals a high majority of Americans are choosing to chip away at their debt before building an adequate savings cushion. Only 11 percent of respondents said they are putting money into savings, while the remaining 89 percent are paying off their balances. NFCC spokesperson Gail Cunningham supports placing equal priority on both saving money and paying down debt as a method of staving off financial ruin down the road.

"People often debate which is more important, to be debt free or to have a robust savings account, and the answer is both," Cunningham said. "As important as it is to handle debt responsibly, the truth of the matter is that the unplanned emergency is inevitable, and savvy consumers will recognize this and prepare for it."

Although personal savings has shown a slight uptick in recent months, experts say unemployment, inflation and overwhelming debt may keep these figures low in the future. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/better-to-save-or-pay-off-debt-800595913.aspx Wed, 14 Sep 2011 13:03:42 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/mortgage-delinquencies-rise-credit-card-debt-falls-800592959.aspx With home prices at record lows and mortgage rates at their most reasonable levels in 50 years, the real estate sector appears to be a buyer's market. But a recent report from the Mortgage Bankers Association suggests current homeowners are struggling to make their monthly payments.

Mortgage delinquencies jump

Mortgage delinquencies for one-to-four-unit residential properties rose to a seasonally adjusted 8.44 percent between April and June, according to a survey conducted by the MBA. That's an increase of 12 basis points compared to the first quarter of 2011.

Delinquencies are generally defined as: homeowners who are unable to make a payment on their mortgage at least once. But it does not take into account loans that are in the process of foreclosure.

Despite fewer foreclosures in the second quarter, Jay Brinkmann, chief economist for the MBA, said the delinquency statistic is a bad sign for those hoping for a recovery.

"It is clear that the downward trend we saw through most of 2010 has stopped," said Brinkmann. "Mortgage delinquencies are no longer improving and are now showing some signs of worsening."

On the positive side, seriously delinquent loans—mortgage payments that are either 90 days past due or are in some state of foreclosure—have fallen, the report states. In fact, they're at their lowest level since 2009.

TransUnion: Credit card debt improving

While homeowners are struggling with their loan payments, risk management agency TransUnion reports credit card debt levels recently hit a new low.

In the second quarter, credit card delinquencies dropped six-tenths of a percent, which is the lowest mark observed since the mid 1990s. Ezra Becker, vice president of research and consulting for the agency's financial services division, said consumers appear to be spending more conservatively.

"National credit card delinquency rates have fallen to levels not seen since 1994 as consumers continue to tighten their spending," said Becker. "More important and impactful to the decline in bank card delinquency is that consumers are using credit cards more responsibly."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/mortgage-delinquencies-rise-credit-card-debt-falls-800592959.aspx Fri, 09 Sep 2011 12:58:33 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/debt-ceiling-debate-led-to-flood-of-letters-800592947.aspx Just prior to the August 2 deadline, after weeks of debate, Congress came to an agreement about raising the country's debt ceiling—a move that many believed helped avert a financial crisis. But in the weeks leading up to that date, many retirees worried about how the debt ceiling discussions would impact their Social Security retirement benefits.

"I cannot guarantee that those checks go out on August 3 if we haven't resolved this issue," said President Barack Obama in an interview with CBS News in July, "because there may simply not be the money in the coffers to do it."

This comment led to expressions of concern from retired Americans. According to CNNMoney, the news service received hundreds of letters and emails from readers expressing how much they relied on their Social Security, which some feared the government wouldn't be able to pay if the debt ceiling wasn't elevated.

'It's a lifeline'

"I have no one else to depend on but that check," said Libby Rowe, 54, of Bunker Hill, Va., in an email to the financial news outlet. "I live month-to-month. It's a lifeline."

Rowe's worries were shared by 63-year-old Sherry Carson of Watkinsville, Ga. Carson wrote to CNNMoney saying that if she didn't receive her check, she would get in touch with her bank to ask if she could postpone her mortgage payment.

Another reader, 81-year-old Charles Tanner, wrote to CNNMoney expressing similar apprehensiveness, saying that not receiving his $1,400 monthly stipend would force him to move in with his daughter.

"It would be a sorry day if it happens," Tanner wrote.

Since the debt deal, the readers' retirement worries did not come to pass as Social Security checks were sent out on time as scheduled. However, with the ratio of those paying into the government program slim—approximately three workers for every one beneficiary, according to the Social Security Administration—many remain worried about its long-term solvency.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/debt-ceiling-debate-led-to-flood-of-letters-800592947.aspx Fri, 09 Sep 2011 12:51:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/costco-to-remove-ev-chargers-from-stores-800592875.aspx Retailers nationwide have joined the campaign to 'go green' by stocking more environmentally friendly products in their inventory, but one big-name merchant will begin removing some. Costco, a popular membership warehouse, recently announced it would no longer provide chargers for electric vehicles, noting that too few customers use the service to warrant its continued presence in stores.

"We were early supporters of electric cars, going back as far as 15 years," Dennis Hoover, Costco's northern California general manager, told the New York Times. "But nobody ever uses them. At our Folsom store, the manager said he hadn't seen anybody using the E.V. charging in a full year."

Environmentalists and advocacy groups in California, Costco's primary market for electric chargers, disagree with the move and say many drivers in the state rely on these services and utilize them frequently. In addition, environmentalists expect the use of electric vehicles to rise in the coming years and contend that this trend will demand more charging services in the future, the Times reports.

Electric vehicle challenges

Electric vehicles are recognized as a popular and efficient alternative to autos that rely on fossil fuels, but the challenges they present to drivers has kept their sales figures low. For example, most electric cars can only go roughly 100 to 200 miles before drivers must recharge them, as opposed to the 300 miles most autos can travel without a fill-up, according to the U.S. Department of Energy.
In addition, batteries for electric vehicles tend to be bulky and expensive, with a full recharge requiring anywhere from four to eight hours, the DOE added.

However, many states are providing incentives for purchasing the environmentally friendly autos and pushing new legislation to facilitate widespread adoption. Illinois Governor Pat Quinn recently signed a piece of legislation that will provide grants for car-sharing organizations that purchase electric vehicles, according to BrightEnergy.org. In addition, an advisory panel has been established in the state that will dedicate itself to exploring new measures to boost the sale of electric vehicles.

"We must do everything we can to encourage sustainable and affordable transportation," Quinn said in a statement. "By expanding the use of electric cars, we are creating high-tech jobs, saving consumers money and protecting our environment."

Other states, such as Massachusetts, have increased the number of charging stations in certain communities to encourage the use of electric autos. Communities in Brookline, Hopkinton, Lexington, and Newton are all expected to receive additional charging stations as part of a program that will add more than 142 new stations in the state, the Boston Globe reported.

Despite the many challenges electric cars pose in cost and convenience, the push for these energy-efficient autos is growing stronger on both a state and national level.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/costco-to-remove-ev-chargers-from-stores-800592875.aspx Fri, 09 Sep 2011 11:42:55 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fixed-rate-home-loans-regain-popularity-800592870.aspx Many Americans are seeking financial solutions that will allow them to make ends meet in a struggling economy. Although cutting costs on groceries, utilities, and at the pump can ease the financial burden, most consumers try to improve their condition by saving money on their largest expenditure: their mortgage.

Rates hitting new lows

Prospective home buyers and current homeowners seeking to refinance their mortgage are in a position to take advantage of competitive adjustable-rate loans offered at historically low rates. Average mid-August quotes for 1-year Treasury indexed ARMs fell to below 3 percent, a steep drop from the average 3.53 percent rate seen one year prior, the Chicago Sun-Times reports. Five-year Treasury indexed ARMs experienced similar declines, falling from an average 3.56 percent during mid-August last year to its most recent 3.13 percent, according to the newspaper.

Despite the competitive rates and the Federal Reserve's promise to keep rates low, few Americans are taking advantage of these offerings, and are instead opting for consistent, and therefore less risky, fixed-rate mortgage loans. Data released by government-backed mortgage guarantor Freddie Mac reveals 95 percent of home loans refinanced during the second quarter of 2011 were fixed-rate products, the newspaper reports. Further, 53 percent of homeowners with a hybrid ARM opted for a fixed-rate mortgage during the same period.

The costs on fixed-rate loans may, in some cases, be higher than the historically-low ARM options being offered, but recent data reveals homeowners may still benefit financially from these types of products. Rates tied to 30-year fixed mortgages recently fell to their lowest level since 1971, dropping to 4.15 percent during the previous week, according to Freddie Mac. Rates are expected to remain low until the depressed housing market begins to show consistent and stable signs of recovery.

Low rates may not be enough

Low rates may have prompted prospective homeowners to enter into mortgage agreements in the past, but analysts say that competitive rates may not be enough to pull the housing market out of its slump this time around. Stubbornly high unemployment rates, mounting debt, financial problems, and the rising cost of living have turned many Americans away from big-ticket investments, such as a mortgage.

"The housing market is not going to turn around because of this, because it isn't the mortgage rate that matters," Joel Naroff, head of Naroff Economic Advisors, told the Associated Press.

Experts also say that in addition to economic uncertainty, tough lending standards, and the painstaking process of applying for a home loan may also discourage financially-strapped Americans from seeking out new loans. Most economists agree that until the overall economy begins to show signs of stability, the housing market will remain volatile. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fixed-rate-home-loans-regain-popularity-800592870.aspx Fri, 09 Sep 2011 11:34:38 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/homeowners-add-on-to-accommodate-family-800592864.aspx The housing market remains volatile, unemployment is high, and many young and middle-aged adults are moving back in with family members to curb high living costs. These economic trends have hit some families harder than others, and many are finding creative ways to save or make money. Home remodeling to allow friends or family to move in is one financial tactic that is growing in popularity.

Many cities and municipalities are facilitating this trend by relaxing the rules assigned to building these types of additions, according to USA Today. Currently, cities such as Santa Cruz, Calif., Denver, Colo., and Arlington and Fairfax counties in Virginia, are changing their laws and allowing property owners to build garage apartments and other detached additions, the newspaper reports.

"There are a lot of these, but we don't have (census) data," Arthur Nelson, director of the University of Utah's Metropolitan Research Center, told the newspaper. "People are doubling up, even tripling up."

Although the costs of building an addition can be high, most families save money by pitching in and helping with household chores.

Multi-generational households increase

Financial strain, unemployment, and aging parents are the primary reasons fueling the new housing dynamic, and experts say the trend is likely to continue until the economy is back on track. A recent Pew Research Center study revealed 49 million Americans—or 16.1 percent of the population—resided in a home in which at least two adult generations or a grandparent were present in 2008.

Analysts also noted that the trend was not specific to younger couples who were taking in elderly or sick parents. Instead, the study reveals that many recent college graduates unable to find work and young or middle-aged adults with families who have been impacted by unemployment or foreclosure have started moving back in with their older parents. One family in Honolulu, Hawaii, told the Associated Press that rising living costs have made it difficult for their children to build a financial foundation, prompting their decision to let their daughter and grandchildren move in.

"Because of the cost of housing in Hawaii, we felt that we needed to offer the kids housing so they can get a start on their careers and afford college," George Lee told the AP. "We actually sometimes go for a couple of weeks without bumping into each other, but we also do a lot of helping out with the grandchildren."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/homeowners-add-on-to-accommodate-family-800592864.aspx Fri, 09 Sep 2011 11:30:58 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/choosing-the-right-college-800587238.aspx Senior year of high school marks an exciting time in a young adult's life and many look forward to choosing where their next step will be. However, the process of choosing the right college, filling out applications, and writing essays can be daunting, and many young adults may forget to include their parents.

Parents play a significant role in their children's college search and the entire admissions process, so it's important that they stay involved and help guide their children in the right direction. Choosing the right college depends on more than good grades and filling out applications, and parents are in a good position to help their children consider lesser-known factors, such as financial planning, special programs, and other features.

When it comes to college planning, there are a number of steps parents can take to assist their children in making the right choice.

It all starts with a conversation

Each college brings something different to the table, so parents can help their children narrow down the college search by discussing which features, programs, and amenities they are looking for in a school. Young adults who want to specialize in certain programs may choose a university that is known for having competitive disciplines, while those unsure which direction they want to travel may be better off starting with a low-cost liberal arts school.

Kathy Cohen, founder and CEO of Ivywise.com and ApplyWise.com, told U.S. News and World Report that listening to their children is the most important part of the college admissions process.

"Listen to your child. This is the most important thing: listening to what he/she wants from a college experience, instead of projecting your own aspirations," advises Cohen.

Having a candid conversation from the onset can help parents and students decide on a small list of schools to explore further.

Weigh the pros and cons

Once the list is narrowed down, it's important that parents and children make a list of the benefits and drawbacks of each institution. Consider the financial costs, location, programs, extracurricular activities, graduation rate, and any limitations, suggests U.S. News and World Report. It's easy to choose a school based on one or two features, but there are a number of other characteristics that may pose problems down the road.

Get organized

The process of filling out lengthy applications, writing essays, obtaining references, and submitting financial aid forms can be tedious, and parents can assist their children by helping them keep deadlines and submission dates in mind. Make checklists, review essays, and help young adults book visits to each institution, the news source advises. This will allow young adults to be in control of their options, while still providing them with the support they need to make a decision. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/choosing-the-right-college-800587238.aspx Wed, 31 Aug 2011 11:48:17 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/more-homeowners-push-for-green-homes-800587220.aspx Boosting energy efficiency has become a common goal among many of the nation's residents, ranging from autos and homes to appliances and heavy-duty machinery. In addition, a number of government-funded green initiatives are underway and both business and consumer participants may reap a number of financial benefits of their involvement in these programs.

Most individuals begin with the most basic and highly valuable asset they own: their homes. As more households adopt green attitudes, many prospective homeowners are building properties with energy efficiency in mind.

Benefits of building green

The Environmental Protection Agency encourages the construction of energy-efficient homes that have a profound impact not only on the environment and sustainability, but on the homeowner's finances and monthly expenditures. For example, homeowners whose properties are built with green strategies in mind tend to spend less on monthly utility bills while most appliances and features will last for a longer period of time. In addition, green homes provide a number of health benefits as well, namely because the products used to construct the property are free of toxins and utilize natural ventilation systems, according to the California Association of Realtors.

What makes a home "green?"

There is no standard definition of what makes a home green, but there are a number of characteristics prospective homeowners should take into consideration when seeking to go green. A recent survey conducted by Synovate revealed what consumers believed the most important components were when building a green home. The majority of respondents—45 percent—believed boosting energy efficiency was the prime goal for which most green homeowners should strive. Another 19 percent reported that utilizing environmentally friendly materials was the most important aspect of construction, while 18 percent said taking advantage of renewable energy sources was paramount.

Best ways to go green

Those seeking to "go green" have a number of options when it comes to improving their homes—educating themselves on energy programs, appliances and building products is a step in the right direction. Most retailers that provide home products have representatives that can explain the most environmentally friendly supplies and other effective tips. In addition, many of these same companies offer rebates, specials and other incentives for purchasing energy-efficient products. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/more-homeowners-push-for-green-homes-800587220.aspx Wed, 31 Aug 2011 11:28:26 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-advantageous-are-daily-deals-800585940.aspx The advent of money-saving websites, such as Groupon, has allowed Americans to stretch their dollars and receive discounts ranging from groceries and gasoline to entertainment and leisure activities. However, some money professionals and consumer advocates argue that these deals may not always work in the best financial interest of the consumer, and may instead prompt them to spend unnecessarily.

Rigid Terms and Conditions

Many consumers may be unaware of special stipulations attached to coupons and discounts until they are at the checkout counter. For example, individuals may be required to spend a certain amount or purchase items they don't really need to secure the discount. In addition, most deals carry strict expiration dates that usually make the discount invalid after 30 to 60 days, prompting consumers to make hasty decisions about purchases, according to Time Magazine's MoneyLand column.

A large number of vouchers are often purchased and then go unused by consumers, leading to wasted money for individuals and greater profitability for businesses, the website reports. Data from TechCrunch reveals roughly 10 to 30 percent of coupons are not redeemed by consumers.

Unnecessary Spending

A recent article in Fox Business reveals consumers who receive daily discount emails from deal websites often feel the pressure to spend money on items they don't need, often prompting them to break their monthly budget and leaving them with feelings of guilt or buyer's remorse. Some individuals have found ways to circumvent the flood of unnecessary coupons by choosing websites that allow them to only receive discounts in certain categories.

"Instead of going to Groupon, LivingSocial and the handful of others, I can get one email from PriceGrabber and only get offers in my email box that are within those parameters. That's a really good place to start," PriceGrabber general manager Graham Jones told Fox Business.

Individuals may fare better by only utilizing coupon websites that allow them to save money on items they already planned to purchase in advance. In addition, taking advantage of weekly sales and special promotions at grocery stores, gas stations and retailers may allow individuals to benefit without breaking their budget.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-advantageous-are-daily-deals-800585940.aspx Tue, 30 Aug 2011 07:32:21 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/students-be-smart-about-your-stuff-800582359.aspx Current and prospective college students everywhere are gearing up for another school year as summer vacation nears its end. As university-bound 20-somethings debate what they'll be taking to their apartments and dormitories, a financial planner tells Fox Business they may want to consider an insurance policy.

Insure your belongings

"Coming up with the money to go to college in the first place is oftentimes very difficult for families," said June Walbert, a CFP for a leading financial services company. "That can only be compounded if something happens to their laptop computer, their iPhone, their means of communication with their parents and everything else that they've brought with them to school."

Students should insure these valuables—particularly electronics—as portability makes them prime targets for theft, according to Gretchen Cathey of National Student Services Incorporated.

Cathey advises that students perform an inventory of all their belongings and calculate their value in order to determine how much coverage they need. Once this is done, she says an additional $500 to $1,000 should be added to the total to account for any items that may have been overlooked.

Renter's insurance

Another way students can ensure their belongings are covered is by purchasing renter’s insurance, which can come in handy when living off-campus. Renter’s insurance will cover valuables if property is damaged as a result of environmental-related destruction, but also vandalism perpetrated by an individual, says Mike Chaney, chair of the National Association of Insurance Commissioners.

Discounts for students

Auto insurance is something else students may want to consider, especially if their school is more than 100 miles away, according to the Insurance Information Institute. The III reports that students may be eligible to receive a discounted rate and possibly receive additional savings if they maintain a high grade point average.

Tuition insurance may be an additional coverage option worth considering should students need to cut their school year short due to illness, the III says. However, the Institute advises students that they will not be compensated if they leave school voluntarily.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/students-be-smart-about-your-stuff-800582359.aspx Wed, 24 Aug 2011 14:48:00 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/financial-tips-for-self-employed-retirees-800576624.aspx When baby boomers call it quits from their primary job, a majority of them plan to continue working in some capacity, according to a recent poll conducted by SunAmerica Financial. While many of these retirees may work part-time, some may use retirement as an opportunity to start their own business or become self-employed. However, cautious individuals may be hesitant to pull the trigger, fearing they will wind up losing money.

But as U.S. News and World Report indicates, entrepreneurs can increase their chances of succeeding by staying on top of their finances.

Maintain a budget
The news magazine reports that one of the most important elements to being self-employed is managing a budget. Because pay intervals can be spotty—making lots of money some weeks and very little others—it may be difficult to make payments for business-related expenses. By closely adhering to a budget, the source says retirees may be able to stretch their dollars further.

Keep track of taxes
Another important aspect of self-employment is keeping track of tax expenses. The magazine notes that because money is coming in without being taxed, it may seem like the business is earning more than it actually is. Therefore, the source suggests opening a savings account, where the money accrued will go toward the taxes due every April. If individuals aren't sure how much to put aside for taxes, they may want to consult an accountant or tax professional. They may also help identify what business costs can be written off as a tax deduction, such as a home office, the magazine advises.

Stay organized
Organization is the most important of all the things that can help retirees stay on top of their finances, according to U.S. News and World Report. In any given year, individuals who are self-employed are exposed to hundreds of documents detailing expenses and income earnings. The magazine reports that the best way to assemble the data is compiling it with a financial software product like QuickBooks Pro.

Self-employment down in 2009
According to the U.S. Census Bureau, non-employer firms, most being self-employed businesses, constitute the majority of U.S. businesses. However, the Census reports the number of these firms declined in 2009, the latest year for which data is available.

The report states the number of businesses without paid employees fell more than 260,000 between 2008 and 2009, with self-employed businesses in the real estate industry taking the biggest hit. However, some sectors showed growth, particularly the personal care industry, such as barbers and beauticians.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/financial-tips-for-self-employed-retirees-800576624.aspx Tue, 16 Aug 2011 12:34:39 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/sell-your-home-for-a-competitive-price-800574443.aspx The current housing market may be discouraging to the many homeowners who have listed their house to be sold, and the most recent real estate data does little to assuage their anxiety. However, experts say there are a few tactics homeowners can use to raise their chances of selling their home—and receiving a fair price.

Keep up with the market

There is no denying that it's currently a buyer's market, but consumers who educate themselves on surrounding home prices, amenities and other factors that influence the overall value of their neighborhood may become more enlightened homeowners, according to U.S. News and World Report. Being up to date on this information will help individuals avoid undervaluing or overpricing their home, which may lead to lost financial opportunities.

Consult with an expert

Turning to a real estate professional may not only help homeowners attract more customers, but also educate themselves on what buyers are looking for. In doing so, individuals can avoid making common mistakes that may be inhibiting a home sale and instead employ time-honored strategies that may give them more exposure to potential buyers.

For example, making home repairs on a property may make it more appealing to buyers. Also, shop around for a real estate agent to find someone who is eager to work with both the buyer and the seller.

Don't skip the home inspection

An adequate inspection is key to selling a home at a competitive price, and most buyers will bring in their own inspector as well to ensure everything is accurate. Home inspectors will be able to point out home maintenance issues, and making these repairs before the selling process begins can be financially advantageous.

For example, any issues that are missed may be discovered by the prospective buyer's inspector, which may force the homeowner to make the repairs or sell the property for a cheaper price, according to the news source.

Selling a home can be a tedious process, especially when market conditions are less than favorable. Staying on top of the current housing progress and consulting with professionals can give homeowners the insight they need to appeal to potential buyers.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/sell-your-home-for-a-competitive-price-800574443.aspx Fri, 12 Aug 2011 05:32:55 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/older-americans-spend-more-on-healthcare-than-others-around-the-world-800574441.aspx A recent article published on MSN.com highlights a disturbing trend in the healthcare costs of retired Americans. According to the article, many Americans can expect to spend roughly one-third of their retirement funds on healthcare expenses.

Global statistics vary greatly

Analysts at the financial firm Credit Suisse tracked the spending habits of people over 60 around the world. The study found that retired persons in the United Kingdom, Germany and Japan spend significantly less than Americans on healthcare.

Elderly citizens in Germany spend roughly 8 percent of their funds on healthcare, while in Japan they spend about 6 percent. In the U.K., elderly residents spend approximately 3 percent of their money on healthcare, compared to 33 percent for those in the United States.

The study also found other significant differences between nations. People in the U.K. over 60 years old spend roughly 22 percent of their funds on leisurely pursuits, while Americans generally can only afford to spend about 13 percent. In Japan, elderly persons spend about 21 percent of their money on food and drink, compared to 8 percent in the U.S.

Setting a budget

People are having increasing difficulty managing funds during retirement, according to an article on RetirementFinances.com, as the average lifespan continues to increase. The article recommends people should plan to live into their early 90s when establishing a retirement savings plan, as it's better to have too much money than too little.

Establishing a retirement budget is a necessity for those who want to afford medical-related costs as well as leisurely pursuits. RetirementFinances.com states many studies show people end up spending quite a bit less during their retirement than they did while working.

When creating a retirement account, people should plan on spending about 4 percent of their retirement savings per year, actively accounting for inflation each year. For example, if a person were to draw $30,000 from savings during the first year of retirement, and inflation was roughly 3 percent, he or she would likely withdraw about $30,900 the next year.

It's also important to set aside funds for emergency expenses. RetirementFinances.com recommends setting aside roughly 18 months worth of funds for unexpected expenses like medical costs, or home and auto repairs.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/older-americans-spend-more-on-healthcare-than-others-around-the-world-800574441.aspx Fri, 12 Aug 2011 05:19:02 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/the-price-of-homes-and-cars-may-be-falling-800572722.aspx The cost of living may seem to be on the rise constantly, but not for large-ticket items, according to Time magazine. A number of major purchases—including homes and cars—are actually more affordable.

Home prices may have hit bottom

Home prices continue to decrease, according to Time, as many sellers repeatedly lower their asking price to drum up business. In a recent interview with the California-based newspaper Mercury News, the National Association of Realtors’ managing director Jed Smith said home prices are close to bottoming out.

Car prices are falling

While prices are rising for many vehicles, a select number of auto dealers and manufacturers, including Volkswagen, are lowering their sticker prices compared to previous years, reports Time. In addition, vehicle valuation company Kelley Blue Book reported earlier this summer that fuel-efficient vehicles will likely sell for less due to declining demand, as gas prices are expected to fall.

Furniture costs are down

Furniture prices are also taking a tumble among some retailers. Time reports furniture giant IKEA is slashing its prices for a variety of their offerings by 2 to 3 percent in 2011, with more cuts expected next year. The company attributes the decline to "strategic cuts" in material, design, production and marketing expenditures.

Solar panel installation is less costly

Going 'green' may have been costly at one point, but greater supply has decreased prices. Time reports solar panel prices have fallen 66 percent in the first quarter of 2011 compared to the same three-month period in 2010.

Digital gadgets are more affordable

Prices of technological gadgets are also falling, such as Amazon's electronic reader, the Kindle, which now sells for $114. The e-commerce company may slash prices even further during the holiday season, according to the magazine.

Another tech offering that will cost buyers less are 3D TVs. According to Time, a 50-inch, 3D television sold for $900 more than a standard television last summer. This year, the same model sells for around $400 more than its standard counterpart.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/the-price-of-homes-and-cars-may-be-falling-800572722.aspx Wed, 10 Aug 2011 13:36:54 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/housing-crash-helping-apartment-owners-800571391.aspx While the American housing market hit record lows after the bubble burst a few years ago, this crisis may have actually helped individuals involved in the commercial real estate market, according to the Chicago Tribune. Apartment buildings are now heavily favored by builders and developers, representing an investment that will most likely have immediate returns upon its completion.

Why are apartments so popular?

Since many people may not be able to afford a home or get approved for a mortgage right now, living in an apartment may be the most practical option. Some people have lost hundreds of thousands of dollars since the market peaked in 2008, making homeownership a less appealing investment option.

"The next decade is likely to be the most profitable for our industry in the last 20 years," Charles Brindell Jr., president of Mill Creek Residential Trust, a real estate developer that plans to build 350 units in Irvine, told the media outlet.

The housing market is suffering the most in suburbs far away from major cities, which may be a direct result of the high gas prices. Drivers may not want to take on a significant commute during economic difficulties, or may simply desire to be more eco-friendly by reducing their carbon footprint.

Postponing settling down

Additionally, a growing number of Americans in their 20s and 30s are postponing marriage and having children, which makes them ideal renters. They are more willing to relocate for a career or desire to live close to their work, the news source found. There have also been an increasing number of children moving back in with their parents after college, or choosing to live with friends until they feel they have employment and financial security.

The high number of foreclosed properties has not affected the apartment rental market, as these families typically move into single-family home rentals, which are available due to the number of properties people are unable to sell.

Rents are rising

As rental apartments tend to become a more viable option for people, rental rates have slowly started to rise, the Tribune reports. Rent in Los Angeles and Orange Counties is just more than $1,500 a month, and the majority of Southern California rents are expected to rise 4 percent each year during the next two years.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/housing-crash-helping-apartment-owners-800571391.aspx Mon, 08 Aug 2011 19:56:37 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/capless-fuel-tanks-can-stop-gas-theft-800558011.aspx As USA Today reports, many new Ford and Chrysler vehicles include a gas tank without the traditional gas cap, instead using a capless system.

One of the system's main advantages is that it can keep drivers' hands from smelling like fuel when they leave, which was a common complaint by many who frequent self-serve gas stations, especially women.

However, experts told the source while the capless system may seem less secure and lack the common clicks drivers are used to hearing, it can actually help prevent thieves trying to steal gas out of the tank.

Advanced technology

Ford officials feel the new system prevents theft two ways. First, a spring-loaded part of the system will only work properly when pushed by a standard gas nozzle, so a garden hose or other tube won't work.

Secondly, the system's vapor recovery system also keeps fuel vapors from leaving the tank during the fueling process, and then shuts off automatically, which also deters gas theft.

Other steps to take

However, there are steps drivers of other vehicles can take to try and prevent criminals from stealing gas, MSNBC reports. Many other new car models come with a locking gas cap that requires a key to open. Drivers can also purchase one separately for about $10 to save fuel, police said.

Fuel thefts increasing

Experts have noted a rising number of fuel thefts in recent months, as rising gas prices have made it more profitable. The National Association of Convenience Stores said it saw a sharp rise in drive-offs and other fuel thefts when prices rose.

Because many stations only make about 2 cents per gallon, even one theft can cost a gas station a significant amount of money.

Determined thieves

But not even a locked gas cap will stop all thieves, particularly with gas prices remaining high. The news source reports some have even gone so far as to cut vehicles' fuel lines and drain the gas away that way.

In that situation, drivers are advised to call both roadside assistance and the authorities to prevent any further damage to their vehicle.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/capless-fuel-tanks-can-stop-gas-theft-800558011.aspx Thu, 21 Jul 2011 16:51:33 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/common-mistakes-when-hand-washing-vehicles-800557636.aspx To make sure a vehicle performs as good as it did when it came off the showroom floor, regularly scheduled car maintenance may be required. This can include tune-ups, consistently checking the tires for signs of wear and having the oil changed every 3,000 to 5,000 miles.

But if car enthusiasts want their automobile looking as good as new, vehicle maintenance should include regular washes. However, as AOL Autos recently found, the way in which drivers may be washing their cars could be all wrong.

The source found common mistakes after visiting Michael Pennington and Michael Stoops, who work for a California-based car-care product company.

Wash a car from the bottom up

For instance, while drivers traditionally wash their car by starting at the top and working to the bottom, Stoops said it's best to start with the tires and work your way up.

"Cleaning the wheels first instead of last has the added benefit of keeping any wheel dirt from flying onto the car you just washed," said Stoops.

Cars should be cool to the touch before washing

Another flaw Stoops encounters is the notion the car's temperature doesn't affect how well it's cleaned. To the contrary, Stoops told AOL Autos, drivers should be sure the vehicle is cool to the touch. Otherwise, soapy water on a hot surface will lead to residue.

"A cool surface is the really critical part," Stoops emphasized.

Something else that's critical is what cleaning agent is used. Stoops says he frequently meets car owners who use dishwashing soap, which he admits is every bit as effective at getting grime and dirt off cars as it is with dishes. However, Stoops told AOL Autos dishwashing liquid is also good at taking the wax off cars.

Instead, Stoops suggests sticking with shampoos geared specifically for cars, which he says helps maintain a vehicle's brilliant luster.

Always dry the car

Of all the steps, however, the most important one to washing is the drying.

"It's critical that you dry your car," Stoops told the automotive website. "We get calls all the time from people who say they have water spots after washing their car."

Stoops went on to say water spots are natural. The only way to avoid them is to ensure the vehicle is dried down immediately following its washing, preferably with an absorbent micro-fiber towel.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/common-mistakes-when-hand-washing-vehicles-800557636.aspx Thu, 21 Jul 2011 15:21:34 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/five-vehicles-tending-to-be-overpriced-due-to-high-demand-800552098.aspx In any given year, fads and fashions come and go. What was once the cream of the crop can quickly become yesterday's news.

While this trend tends to be attributed to the fashion world, it also applies where consumers are out buying a new car. In fact, demand for a particular make or model can become so heavy, car dealers can charge well above the manufacturer's suggested retail price.

With this in mind, and with the help of a number-crunching firm that measures the real-world cost of vehicle ownership, Yahoo Autos recently compiled a list of the five vehicles most likely to be highly valued today due to strong demand.

Kia Optima

Topping Yahoo's list is the Kia Optima. Its base MSRP is $18,995, but the automotive website says the average market price for the vehicle is $20,473, largely as a result of it scoring well in vehicle reviews.

Nissan Versa

Another vehicle that's scored well in reviews, according to Yahoo, is the Nissan Versa. Thanks to being one of the more inexpensive cars available, it's priced about $700 more than the base MSRP at $11,924, according to the source.

Toyota Scion xD and xB

Two other vehicles sell for more than the suggested retail price, according to Yahoo Autos, are both made by Toyota, the Scion xD and xB. The automotive website says Toyota wanted to make a luxury vehicle similar to the Lexus, and since being introduced to the market, the car buying public has responded favorably. For the xD, the average market price is $16,605 and for the xB, it's $17,670. Both vehicles average approximately $1,000 more than the base MSRP.

Toyota Prius

Finally there's the Toyota Prius, which is flying off automakers' production lines largely because of its fuel economy. However, as Yahoo Auto states, supply levels are low because of part shortages in Japan, thereby increasing the average cost due to low inventory. At $16,605, it's approximately $800 more than the suggested price from the manufacturer, according to the source.

KBB.com: Fuel-efficient vehicle values may fall 15 percent by December

It's anyone's guess when the price for these vehicles will start to decline, but Kelley Blue Book predicts the Toyota Prius and other fuel-efficient vehicles are likely to drop in value by as much as 15 percent by December 2011. Alec Gutierrez, manager of vehicle valuation for KBB.com, attributes the anticipated decline to the cost at the pump, among other things.

"While depreciation has been relatively mild so far, based on changes in gas prices and issues with supply, Kelley Blue Book believes a significant 15 percent correction is likely by the end of the year," said Gutierrez. "If we take a look back at the auction market in 2008 when gas prices hit $4 per gallon, we can foresee drops during the next few months."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/five-vehicles-tending-to-be-overpriced-due-to-high-demand-800552098.aspx Thu, 14 Jul 2011 13:06:37 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/buyer-beware-car-dealership-sales-pitches-800552087.aspx When consumers are in the market to buy a new car, they typically want to find the best vehicle possible at the least expensive price. But CNNMoney says if shoppers aren't careful, they may fall for sales pitches that may sound worthwhile but are, in fact, rip-offs.

Beware of 'low' monthly payments

For instance, the source states dealers may try and encourage shoppers to buy a car by pointing to how inexpensive a vehicle's monthly payments are. While CNNMoney acknowledges a longer loan period makes monthly payments less burdensome, going this route leads to buyers paying more in the end when interest rates are factored into the equation.

Lease makes sense under certain conditions

Another common buying tactic dealers may use is offering leasing options to finance a vehicle. The financial news website says leasing may save money in the short-run. However, over the long-term, it may be more costly than buying because once the lease term ends, "you're back to having no car and you've got to start all over again."

CNNMoney says the only time it makes sense to lease is if the driver knows they don't want to keep it for more than a certain number of years. Otherwise, buying is more cost efficient.

Extended warranties for minor issues

Another sales pitch dealers may try to extend to car shoppers are warranties for their car's exterior if it gets nicked or if the interior fabric fades. While the source states the manufacturer will address what's at issue, CNNMoney says there's a reason car dealerships offer it—they wind up making money in the end.

Instead, the website says car owners should buy touch-up paint or have their interior detailed on an as-needed basis.

Credit history affects financing capabilities

One thing shoppers should take seriously, however, are the financing options car dealerships offer to those who are "well-qualified," or in other words, those who have good credit. The source states before consumers attempt to buy a new car, they should first be sure they have good credit or enough credit in order to qualify for low-interest financing. If one's credit isn't good enough, the lender has to inform the consumer they're being denied because of their credit score. This new rule was recently announced by the Federal Reserve and will go into effect later this month.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/buyer-beware-car-dealership-sales-pitches-800552087.aspx Thu, 14 Jul 2011 13:00:56 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/some-gas-powered-cars-are-just-as-fuel-efficient-as-hybrids-800552082.aspx While several car shoppers have bought a hybrid vehicle in order to save fuel, some are sticking by traditional gas-powered cars.

An example of this loyalty can be found with Cars.com, as recently, a contributor to the website explained why they refused to jump aboard the hybrid vehicle bandwagon.

"The driving experience is better," writes Cars.com. "There are no grabby brakes, huge batteries in the trunk, lag in power to pass or weird trees growing on the dashboard readout. It's just a car. That you drive."

Chevy Cruze Eco fuel efficiency rivals hybrids

To illustrate the gas-sipping value of standard vehicles, Cars.com took a 200-mile road trip with the Chevy Cruze Eco. Despite experiencing stop-and-go traffic for much of the journey—which stretched from Chicago to Wisconsin—the website says it got 46 miles per gallon traveling at an average of 46 miles per hour.

While Cars.com recognizes there are many hybrid vehicles that get the kind of mileage the Cruze Eco produces, if not more, the website says standard vehicles are better because it forces the motorist to pay more attention to their driving behaviors, as things like shifting and braking can affect the vehicle's fuel economy.

But if fuel economy standards are further increased, there could be as many fuel-sipping gas-powered vehicles as there are among hybrids.

Fuel efficiency standard may increase to 56 mpg by 2025

As Consumer Reports recently stated, President Barack Obama is considering raising the fuel efficiency standard for standard models to 56 mpg by 2025. Consumer Reports president Jim Guest is in favor of the proposal, saying it's an ideal way to save drivers money.

"Improving fuel economy standards is one of the most effective ways to save consumers money at the pump," said Guest. "We believe that an aggressive standard with a long lead time for auto manufacturers will foster the development of better cars that use less gas at an affordable price."

David Champion, senior director for the magazine, says the 56-mpg standard is actually too conservative. Because the technology is available, Champion suggests the minimum should be increased to 62 mpg.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/some-gas-powered-cars-are-just-as-fuel-efficient-as-hybrids-800552082.aspx Thu, 14 Jul 2011 12:55:37 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-loans-may-be-affected-by-credit-scoring-changes-800548649.aspx
An individual's credit score may affect many of their financial purchases and decisions throughout their lives. And for the first time in 20 years that system has changed, according to Credit.com. The new standard FICO system, known as FICO 08, may also directly affect a person buying a new car.

How is a credit score determined?

A credit score is determined when reporting agencies, Equifax, Experian and TransUnion, collect information from a potential borrower's creditors, to create their credit history. The history will then be delivered through a credit report. FICO takes all of the details on a report and translates them into a number between 300 and 850, which is known as an individual's credit score.

The three companies may come up with slightly different numbers, which they then sell to lenders. Those lenders take these numbers, along with a borrower's debt-to-income ratio, income and employment information to determine whether or not they are eligible for a loan to buy a new car .

Major changes to the system

The former credit risk formula lumped all consumers with a "serious delinquency" in their history together. This meant individuals with an occasional problem and those with a long history of late payments were placed into the same category, Edmunds.com reports. The new system will help lenders distinguish between borrowers who may be credit deadbeats from those with minimal mistakes.

Fighting credit fraud

The new credit system is also trying to help minimize a certain type of fraud known as piggybacking, the media outlet reports. This is done when consumers with good credit histories are paid to add strangers with bad credit to their accounts, which may help fix the latter borrower's FICO scores. With FICO 08, only a legitimate and authorized user on an account, such as a student on their parent's account, can gain points.

This new system will likely affect half of Americans positively, while others will see their scores drop by roughly 20 to 30 points. The amount of points a credit rating changes could put a borrower into a different credit tier. Each tier dramatically affects an individual's auto loan rate, according to the news source. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-loans-may-be-affected-by-credit-scoring-changes-800548649.aspx Mon, 11 Jul 2011 08:45:00 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/which-is-cheaperto-drive-or-fly-800547954.aspx With vacation season in full swing and gas prices remaining elevated, families who traditionally took road trips to a certain destination may be opting to fly instead this year, assuming they'll save money on fuel. But as AOL Autos recently discovered, there's a website available to travelers, detailing whether driving or flying is the best alternative.

Headquartered in Boston, the website is called BeFrugal.com, and since 2009, the site's mission has been to help consumers find deals, offering coupons for in-store shoppers and promotional codes for those who do most of their buying online.

And as AOL Autos found, the website also offers visitors a Fly or Drive Calculator.

What's the best way to travel?

As its name implies, the calculator takes several factors into account in order to determine whether it's more cost efficient to take a plane or drive a car when going on vacation, such as the destination, vacation dates and the type of car being used.

It also factors flight cost considerations into the equation, such as rental car fees, plane ticket prices, overnight hotel costs and airport parking rates.

To test its method, AOL Autos entered detailed travel information into the calculator for a variety of potential vacation destinations, such as Plymouth, Massachusetts, and Marietta, Georgia from Michigan. For the trip to Plymouth, the website said AOL Autos would be better off flying, as it would cost the automotive website approximately $24 less compared to driving. Regarding the trek to Marietta, BeFrugal.com said driving was the better option, as taking the car would save AOL Autos more than $700 when all the costs were measured.

Poll: Gas prices also affecting shopping behavior

In addition to the impact of gas prices on Americans' travel, a recent study conducted by a market research firm concluded it's also affecting how they shop. According to the survey, 80 percent of consumers said gas prices are altering their purchase behavior, with 35 percent of respondents saying they've altered their budget for food at the grocery store.

"Shoppers are careful and watchful of their money and given the overall level of uncertainty about the economy, it's not a surprise to us to see consumers reign in their spending on groceries," said Dan Boehm, senior vice president of the TNS research firm.

TNS also found consumers are watchful of not only how much they buy, but what they buy, as 30 percent said they're more likely to purchase generic brand goods as opposed to name brands. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/which-is-cheaperto-drive-or-fly-800547954.aspx Fri, 08 Jul 2011 13:12:28 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/automakers-government-discuss-mileage-emission-standards-800547036.aspx Consumers who buy a new car in the next few years will likely see several new energy-efficient, high-mileage models at dealerships nationwide, as the federal government and the auto industry are working on new rules and regulations regarding environmental effects from newer vehicles.

According to the New York Times, President Barack Obama and his administration and leading auto industry members are negotiating rules which would reduce greenhouse emissions by millions of tons per year and reduce oil imports substantially.

Rules would increase fuel efficiency

The proposed rule changes from the White House would mandate auto manufacturers create vehicles which can get up to 56.2 miles per gallon by 2025—nearly double the current average, the New York Times states. Officials in the president's administration, though, stated the final figure could change before a final decision is made.

The paper added a 5 percent increase per year in mileage beginning in 2017 would be necessary for the government's goal to be met. An official proposal will be submitted by the president and his staff in September with a final ruling expected in July 2012.

Experts say negatives could arise from new rules

While the new regulations would help make the U.S. a more environmentally friendly country in terms of emissions output from its vehicles and save consumers considerable amounts of money on gas, some auto analysts stated they aren't sure the rules would be beneficial to the industry.

"We can build these vehicles," Gloria Bergquist, vice president for public affairs at the Alliance of Automobile Manufacturers, told the paper. "The question is, will consumers buy them?"

Another auto industry member, Mark Reuss, president of General Motors North America, told the Times the president's goals are lofty, but added his company would aim to please consumers with a more environmentally friendly, quality line of vehicles.

Consumer analyst believes consumers would benefit

Jim Guest, president of Consumers Union, said he thinks the new fuel-efficiency rules would be beneficial to U.S. drivers as they would save them money on gas in the long-run.

"Improving fuel economy standards is one of the most effective ways to save consumers money at the pump," he said in a statement. "We believe that an aggressive standard with a long lead time for auto manufacturers will foster the development of better cars that use less gas at an affordable price."

Consumer Reports' senior director, David Champion, stated he believes automakers could improve fuel economy even more in the coming years. He said it's conceivable car manufacturers could make vehicles which get 62 mpg by 2025. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/automakers-government-discuss-mileage-emission-standards-800547036.aspx Thu, 07 Jul 2011 14:47:58 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/credit-advice-for-car-buyers-800547028.aspx Less-restrictive lending standards should make it easier for many consumers to buy a new car this year, according to Edmunds.com. Even drivers with below-average credit scores may be able to secure financing for a new vehicle.

"There definitely is a changed marketplace," Melinda Zabritski, Experian's director of automotive credit, told the source. "We're seeing a year-over-year increase in the percentage of loans that are booked in the subprime space."

However, some auto industry analysts told the website buyers should still work to improve their credit scores, as doing so increases the chance of getting approved for loans.

Learn the basics about credit

Becoming familiar with the ins and outs of credit scores and how they can affect a consumer's decision to purchase a new car is important, Edmunds states.

Drivers can learn more about their credit situation by requesting a free copy of their credit report from the AnnualCreditReport.com, the source says. After retrieving this copy, Edmunds suggests consumers find out their three credit scores to help them determine if they have a score high enough to start the car buying process.

Any issues with one's credit score, such as outstanding debts, should be repaired before heading out to dealerships.

Set a budget, get pre-approved

Budgeting to buy a new car is essential for consumers. According to Edmunds, one monthly car payment shouldn't exceed 18 percent of your monthly income.

Though some buyers may prefer newer models, those with low credit scores may have a better chance of getting financing for a used car, the website says.

Another way to enhance one's chances of getting a car loan, Edmunds states, is to get pre-approved for one. The site states becoming pre-approved can make negotiations with a dealer easier and can provide buyers a clearer picture of how much financing they can secure.

Substantial down payment can help

One of the best ways for car buyers with poor credit scores to increase their chances of getting a loan for a new car is to make a considerable down payment. Putting down 20 percent or more on a car, regardless of credit score, should help a prospective borrower get approved by a lender. Having a qualified co-buyer also reduces the risk profile for a loan request, the site says.

Lending conditions should improve more

While lending has improved somewhat in the past year, Mike Andra, director of pricing and credit risk analysis for Santander, told Edmunds consumers with lower-than-average credit scores may need to wait a little while longer before they can get competitive rates on car loans.

"I still think we're another year away from the competition truly coming back," Andra told the website. "The approvals are out there. It's just the conditions tied to those approvals are a little more stringent." http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/credit-advice-for-car-buyers-800547028.aspx Thu, 07 Jul 2011 14:40:29 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/selling-your-vehicle-online-800545732.aspx Thanks to its convenience and ease of use, more consumers are turning to the internet to sell a used car. But with multiple formats and services to use, sellers may have a hard time deciding which one to go with.

To help, Edmunds.com recently reviewed two online sales websites—AutoTrader's VIP service and eBay Motors.

AutoTrader's service is slightly different from the traditional form of online car selling, where instead of the seller taking pictures to post to the website, Edmunds says staff members from AutoTrader come to the car and take the pictures for a fee.

AutoTrader VIP

To gauge AutoTrader's VIP service, Edmunds paid the upfront fee—$279—and a photographer came and took 27 pictures of the car—a 2009 Nissan GT-R. Apparently, according to a spokesman for AutoTrader, the more pictures taken, the more likely it is someone will buy the vehicle for the price the seller asks for.

In addition to a photographer, Edmunds says AutoTrader also assigned a price consultant, who suggested the car ought to sell for $62,000.

After the ad had been posted for three weeks, Edmunds says it got seven offers, but none of them were for the listed price.

eBay Motors

Still hoping to sell the GT-R, Edmunds turned to eBay Motors, a company which boasts conducting 3.5 million used-car transactions since its founding. And Edmunds soon realized why the website has been so successful, as shortly after the pictures and listing price had been posted, it started receiving offers.

Edmunds soon sold the Nissan for $52,600 through eBay, deciding to put its list price lower than what was offered on AutoTrader at the suggestion of an eBay spokesman.

All told, going through eBay cost Edmunds $125, more than $150 less than what it cost to go through AutoTrader.

Which is better?

Despite having more success with eBay, Edmunds did not endorse either website, saying sellers should determine which website to use based on their expectations. If they're unwilling to budge and want to sell a used vehicle for top dollar, it's better to go through AutoTrader. However, if sellers want to sell their vehicle as soon as possible—and are willing to offer the car for a lower price—eBay may be a better option, according to the site.

Concerns about selling cars online

Those who are new to selling their vehicle online may worry their car won't sell because shoppers are only viewing pictures. But Danny Chang, senior manager at eBay Motors, told Edmunds this should not be a concern for sellers.

"Buyers are definitely more open to purchasing vehicles online," said Chang. "We even have buyers purchasing vehicles via their mobile phones through eBay's mobile application."

New car dealers have caught on to this trend as well. Earlier this year, editors at Edmunds went car shopping for a new vehicle and found many of the deals they found online were not found in dealers' showrooms. This may be an indication online shoppers have become more comfortable with the online shopping experience.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/selling-your-vehicle-online-800545732.aspx Wed, 06 Jul 2011 12:46:17 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/playing-politics-with-gas-prices-800544814.aspx Though election season may be several months away, a nonpartisan website says many politicians are already in campaign mode, as Republicans and Democrats have been distorting the truth about an issue voters take seriously: gas prices.

According to Factcheck.org, an organization that reviews the accuracy of public officials' statements and accusations, both sides of the aisle are playing politics with gas prices by fudging the truth.

Tax breaks for oil companies have little impact on the price at the pump

For instance, the consumer advocate says Democrats want to remove tax breaks provided to oil companies because they earn such a large profit. But Republicans are blocking the proposal, saying tax breaks will ultimately be paid by consumers, as oil companies will pass on their added expenses by charging more. However, according to Factcheck, the nonpartisan Congressional Research Service says Republicans' fears of higher gas prices are inaccurate, finding higher taxes would have little to no effect on the price of gas at the pump.

Are oil companies manipulating prices, supply?

Another way politicians are playing politics with gas prices, according to Factcheck, is by asking the Federal Trade Commission to investigate whether oil refineries are intentionally keeping production volumes down in order to keep prices high. But the FTC says this claim is nothing new. In fact, the source states the FTC has conducted multiple investigations about whether refineries are manipulating supply but have found "no evidence to suggest refiners manipulated prices through any means, including running their refineries below full productive capacity to restrict supply."

While consumer organizations and voters accuse lawmakers of playing politics with gas prices, politicians themselves think it's going on as well.

Obama taps oil reserves to increase supply, lower cost

For instance, in mid-June, President Barack Obama announced the U.S. Strategic Petroleum Reserve would be tapped, releasing 30 million barrels of oil to keep gas prices down. But in a recent interview on NBC's "Meet the Press," New Jersey Governor Chris Christie said tapping the reserves looked like a political ploy more than a gas saving tip.

"I think the strategic reserves are for strategic purposes and not political purposes," said Christie. "It hurts the credibility of the program if people feel that's the way it was used."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/playing-politics-with-gas-prices-800544814.aspx Tue, 05 Jul 2011 13:09:32 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fuel-economy-gauges-rarely-foolproof-800544795.aspx In an effort to save fuel, car shoppers are increasingly turning to cars that boast an above average fuel economy. After driving the vehicle for a while, motorists may find the mileage readings they're getting are hard to believe. And as Edmunds.com recently discovered, drivers may have reason to be incredulous, as several models reviewed by Edmunds gave inaccurate fuel economy indications.

The editors at Edmunds discovered this after driving several fuel-efficient models from Los Angeles to Las Vegas in three different ways: on back roads, on the highway and on city streets, where stop-and-go traffic is common.

After calculating how much gas it took to go from point A to point B and back again, then comparing their numbers with what the car's internal fuel economy gauge was reading, the editors found a wide range of discrepancies. Every time, however, the fuel economy gauge underestimated how much fuel was being used.

Fuel economy readings were sometimes off by 20 percent

For instance, when Edmunds editors drove the 1,550-mile round trip in the 2010 Ford Escape Hybrid, they found a fuel economy discrepancy of nearly 20 percent. In other words, the car was actually consuming 20 percent more than what the gauge was claiming, or what amounted to five miles per gallon.

Edmunds found similar fuel economy disparities in the 2009 Mini Cooper, and in several 2010 models such as the Ford Fusion Hybrid, Honda Insight, Toyota Prius, GMC Terrain and BMW X5 xDrive 35d. However, in these models, the disparities weren't nearly as significant.

Manufacturers respond to findings

To see if the manufacturers of these vehicles had a rebuttal, Edmunds reached out to several automakers. The editors say several responded. For instance, the source reports a spokesman for Lexus said a fuel economy reading that was 5 percent off "was a perfectly reasonable range" to be off by. A Honda spokesman said more research needed to be done before he was willing to give a response. Spokespeople for Mini and General Motors both defended the accuracy of their fuel economy readings, but said there are mitigating factors the vehicle's computer is incapable of taking into consideration, such as the quality of the fuel used and fuel tanks expanding and contracting based on how warm it is outside.

No car is perfect

Supporting these assertions is Steve Mazor, chief auto engineer for the Auto Club of Southern California, who told Edmunds no car operates in perfect condition, but the car's computer doesn't know that. In short, inaccurate readings are inevitable.

In other words, it may be in drivers' best interest to use their own fuel economy calculations rather than relying on what the gauge reads.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fuel-economy-gauges-rarely-foolproof-800544795.aspx Tue, 05 Jul 2011 12:53:56 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/the-evolution-of-the-cupholder-800544785.aspx It's hard to imagine buying a car without a cupholder, but as Slate.com recently chronicled, they weren't always a standard feature.

Cupholders arrived in cars around the 1960s

According to the website, it wasn't until the 1960s automakers began rolling out models with built-in cupholders. But unlike today—where the holders are typically installed in the dashboard and are crafted to hold drinks about the width of a soda can—Slate says early models were attached to passenger doors and had wider bottoms. Because doors are constantly opening and closing, it wasn't long before automakers began reformulating cupholders, as the source says their location moved to the dashboard and in between the passenger and driving seat.

Cupholders in vehicles now warm and cool drinks

For the most part, a cupholder's location hasn't changed much since, but in other areas, the cupholder has advanced in ways few would have expected 50 years ago. Now, cupholders keep coffee mugs and thermoses warm, water and soda bottles cold and adjust so drinks of varying sizes can fit snugly.

However, from model to model, not all cooling and warming cupholders are as effective as the next. To determine the quality of one, Cars.com recently reviewed the cupholders in the 2011 Chrysler 300C.

Cars.com tested both the warming and cooling features, using a small cup of coffee purchased at a local breakfast diner for the warming cupholder and a 20-ounce bottle of water for the cooling one.

Before placing the drinks in their respective holders, the source measured the temperatures of both holders. The thermometers registered 113 degrees for the warm and 48 degrees for the cold. The source also measured the temperatures of the beverages before placing them in the cupholders.

After each drink was in its holder for an hour, Cars.com found the bottled water temperature remained cold, but had warmed approximately 11 degrees from its initial 55. Meanwhile, the coffee cup cooled to 105 degrees after starting out at 127 degrees.

Material of cup container may influence temperature

Cars.com did not draw any conclusions as to the effectiveness of the cupholders' warming and cooling features, but did say the material of the respective containers may have impacted the rate at which the temperatures changed. Something else that may have affected its temperature is how long it was kept in the holder, as Cars.com says few motorists leave their drinks in a cupholder for more than an hour.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/the-evolution-of-the-cupholder-800544785.aspx Tue, 05 Jul 2011 12:48:49 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/details-drivers-should-know-about-tire-warranties-800544537.aspx Though a driver may have a warranty for their vehicle's tires from the tire manufacturer, Edmunds.com states there are numerous conditions which need to be met for a car owner to receive rebates for tire replacement or repairs.

Tread-life warranty

According to Edmunds, all tire producers offer tread-life warranties. This warranty is based on a specific tire's mileage estimate—how many miles the manufacturer expects the tires to last under normal driving conditions.

To qualify for tire replacement for this warranty, the source states a driver must show proof of purchase and evidence the tires were rotated properly at the advised intervals by car's manufacturer.

The source says the tire manufacturer generally decides what it and the driver will pay for a new tire by prorating the cost of a new tire based on the percentage of tread left on the old tire and the price of a replacement.

Road hazard warranty

After a vehicle breakdown due to a flat tire, Edmunds says drivers can often get a replacement tire at a discount with a road hazard warranty.

Road hazard warranty prices differ based on the type of tire and vendor, according to Edmunds. On average, though, the source says it typically ranges from $10 to $20 per tire. With the warranty, motorists in need of tire replacement usually receive free tire rotations.

Edmunds recommends drivers consider the kind of conditions they typically drive in and the type of tires their car has when deciding whether they should purchase a road hazard warranty.

Workmanship and materials warranty

This warranty can protect drivers should any defects cause a tire to wear out, Edmunds says. The warranty typically covers the life of the tire.

"Workmanship and materials means that we stand behind the product, should you run into some issue," Ron Margadonna, senior technical marketing manager for Michelin Tires, told the source. "If there was something wrong with the tire that we were at fault for, as a manufacturer, we stand behind our product."

He added severe cracking in a tire's sidewall and loss of tread are the most common conditions under which the warranty will cover tire replacement.

Manufacturer special warranty

When buying a new set of tires, Edmunds states many car owners also purchase the manufacturer special warranty, which allows them a 30-day promotional trial.

During this period, drivers can determine whether the tires are right for them. If they're not happy, Edmunds states drivers can get a full refund or exchange the tires for new ones under the warranty.

Michelin offers flat-tire changing assistance as part of its manufacturer special warranty, reports Edmunds. Drivers who get flat tires can call a toll-free number and a Michelin representative will take off the broken tire and install a spare for free. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/details-drivers-should-know-about-tire-warranties-800544537.aspx Tue, 05 Jul 2011 08:11:28 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-drivers-can-determine-what-car-they-can-afford-800544530.aspx Buying a new car requires consumers to calculate several financial factors, according to Edmunds.com. The website has advice for buyers to ensure they understand what type of vehicles they can afford.

Determine tax, personal finance information

Two factors included in the purchasing process, according to the source, are the buyer's location and monthly finances. Using their ZIP code, buyers can find information regarding taxes and their finance rates, which vary regionally, the website says.

Additionally, Edmunds states personal finances are key to help buyers determine how much they can pay for a new vehicle, including the list price and tax, title and registration fees.

The site says a general rule of thumb for car buyers is not to spend more than 20 percent of their monthly post-tax income on a purchase. Also, Edmunds recommends consumers take into consideration other costs associated with buying a new vehicle, such as gas, auto insurance and car maintenance.

Details about trade-ins, down payments, loans

Many car buyers plan on trading in their current automobile to save money on their purchase, the website states. Typically, the difference between the trade-in car's value and the remaining cost of a new vehicle is treated as credit for the car.

However, buyers who don't have a trade in may need to put down a larger down payment, the source says. Lenders are becoming stricter with lending practices in recent years, Edmunds states, and in turn require consumers to put more down on a car up front.

A 20 percent down payment should be the goal for car buyers, as it should show dealers they can pay for the car and will likely reduce their monthly payments and the size of the remaining loan, the site reports.

Edmunds suggests consumers try to keep the term of a car loan to 60 months. Though paying off a loan quicker than five years will end total payments quicker, the source states doing so would make monthly payments higher. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-drivers-can-determine-what-car-they-can-afford-800544530.aspx Tue, 05 Jul 2011 08:05:41 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/study-finds-some-new-car-models-have-quality-issues-800544527.aspx Consumers planning to buy a new car this year may want to inspect vehicles for quality assurance, as J.D. Power and Associates' latest Initial Quality Study states many models have performance issues with hands-free communication systems.

Voice command issue for hands-free communication systems

The main problem related to hands-free communication systems in new models concerns some systems' inability to recognize commands, according to the study.

Five years ago, issues with voice commands with these systems wasn't even one of the top 20 quality problems discovered in the report. In 2011, though, the problem was one of the top two issues with new vehicles.

"During the past five years, the number of owner-reported problems with hands-free communication systems has increased by nearly 240 percent," the' study states. In other words, there were 6.1 problems per 100 vehicles (PP100) this past year, compared to 1.8 PP100 vehicles in 2007.

Several automakers are working to fix problems pertaining to hands-free communication, the study states.

Lexus, Honda models receive high marks

Among all nameplates, Lexus received the highest grade from J.D. Power and Associates. The car company's score for the study was 73 PP100—an improvement of 17 percent from last year's report.

Honda also received a good grade, as the automaker was rated second among non-premium brands with 86 PP100 and received seven awards from J.D. Power and Associates, the highest number in the study's history.

Specific vehicle models which earned awards for initial quality include the Mazda MX-5 Miata, the Chevrolet HHR, the Dodge Challenger, the Chrysler Town & Country and the Ford Taurus.

Dodge, Suzuki and Mitsubishi had the worst quality scores, according to the study, with PP100 ratings of 137, 136 and 133, respectively. Meanwhile, the Honda Fit was named the highest-quality sub-compact car, and the Honda Civic and Honda Insight tied as the best-quality compact vehicle. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/study-finds-some-new-car-models-have-quality-issues-800544527.aspx Tue, 05 Jul 2011 08:03:17 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/many-automakers-not-providing-spare-tires-with-new-vehicles-800544526.aspx Drivers may soon need to purchase their own spare tire for their vehicles or call a towing service after they get a flat, according to the Los Angeles Times. The newspaper states many auto manufacturers are selling models without the bonus tire.

The paper says numerous carmakers are leaving the added tire out of newer models to cut costs, as well as increase vehicles' mileage and reduce their weight. In May, 13 percent of the 1 million U.S. models sold didn't have spare tires, the paper states.

"Manufacturers do a lot of little things to squeeze more of the last bits of toothpaste out of the tube" Dan Edmunds, director of vehicle testing for Edmunds.com, told the Times. "Weight reduction is just one of them, and spare tires are a tempting target."

Spares likely gone altogether soon

While several automakers are currently rolling out new cars without spares, Alan Batey, U.S. vice president of sales and service for Chevrolet, told the paper all manufacturers will soon stop adding tires to their models. One reason for this decision is due to improving car technology which substantially reduces the risk of tires becoming flat.

"All manufacturers are looking at this," said Alan Batey, U.S. vice president of Chevrolet sales and service. "This is one opportunity to get weight out of vehicles and make them more fuel efficient ... It will take some time for people to understand this technology."

Drivers prefer having spare in car

According to the newspaper, automakers' decision to leave spares out of newer models may concern some car owners. Mary Beth Wasmer of Baltimore told the paper having a spare in her car makes her feel more protected when driving.

"I like the security of having a spare. It gives you peace of mind," she told the Times. Wasmer added she bought a BMW 335 a few months ago and didn't realize the car came without a spare tire until after she left the lot. If she had known beforehand, she stated she wouldn't have purchased the vehicle. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/many-automakers-not-providing-spare-tires-with-new-vehicles-800544526.aspx Tue, 05 Jul 2011 08:00:33 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/buying-a-new-car-may-be-cheaper-than-buying-used-800543464.aspx Buying a new car may seem like an expensive option for many families, but it may actually be a better financial decision in some cases, according to the Chicago Tribune. As the economy began to crash, the new car market followed suit.

New versus used

For some, purchasing a new car was seen as a luxury commodity many Americans simply could not afford. Several certified pre-owned (CPO) vehicles may come with warranty coverage, low mileage and are in relatively new condition, and were available at used-car prices. However, the increasing market for CPO cars caused their costs to skyrocket, often outpacing their brand-new counterparts, the Tribune reports.

Experts suggest if an individual is going to purchase a used car they should find out exactly where it is coming from. When buying a CPO, drivers should look for a manufacturer-backed certified vehicle, not one backed by the dealer. Dealer-certified cars may simply be extended warranties sold to look like a certification, and offer very little in the long run, according to the media outlet.

What to look for when buying a new car

If a shopper decides to go ahead and opt for the brand new model, there are some key purchase points to remember, according to Consumer Reports. Having at least a general idea of the make or model an individual is looking for can help keep some of the control out of the salesman's hands. Spending a few hours on the computer researching gas mileage, safety features and prices of a few different options may help put the buyer on a level playing field, the news source reports.

If the purchaser has a trade-in, it may also help to know the estimated value of that vehicle. There are several websites designed to help individuals determine the value of their car, including kbb.com and Edmunds.com.

Also, test-driving a vehicle and purchasing it in the same day should typically be avoided. It can be helpful to take a few days to think about the way the car really felt, how it suited the driver’s needs and how it would transfer to everyday life. Buyers may get caught up in the idea of having something brand new at that moment and regret their decision after it is too late.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/buying-a-new-car-may-be-cheaper-than-buying-used-800543464.aspx Thu, 30 Jun 2011 18:07:25 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ways-to-save-money-on-the-family-road-trip-800543450.aspx While gas prices may have been steadily climbing for most of the year, experts believe they are finally leveling off. Prices are a dollar higher than they were last year, but may soon be dropping. However, in an effort to deal with these record prices, families are finding other ways to fight the pump gouge.

Go for a bike ride

Road trips do not have to be accompanied by an engine. Thousands of cyclists will take to America's streets this summer, with help from the Adventure Cycling Association, according to the Chicago Tribune. The ACA helps individuals interested in traveling the country plan cycling routes with elevation profiles and turn-by-turn directions. It also offers guided tours for cyclists who do not want to travel alone.

If bicycling is not a viable option, there are many discounted bus lines which are very popular near New York and Boston, the Tribune reports. Many of these buses offer travelers free Wi-Fi and can cost as little as $30 a seat. Traveling in a bus with others can also help reduce the amount of pollution, possibly making it a more eco-friendly option.

Ease up on the gas pedal

However, for families who want to take the car along with them, there are additional tips they can follow to save fuel . One of the easiest ways to prevent the waste of gas is to simply slow down, according to the paper.

Fueleconomy.gov reports for every 5 miles per hour a car goes over 60 miles per hour, drivers are paying an extra 24 cents for each gallon of gas. The site also recommends checking tire pressure to ensure the car will be supported at the proper level.

Avoiding any type of waiting in line can also help a vehicle receive better gas mileage. Staying away from toll booths, ditching the drive thru and investing in an EZ-Pass can loosen the burden on American's wallets.

Dump the excess baggage

Carrying around additional weight in the trunk or back of a vehicle can reduce gas mileage by up to 2 percent, according to Fueleconomy.gov. Eliminating any unnecessary weight may be extremely helpful in limiting the amount of money a family spends on gas. Experts also recommend keeping luggage inside of the car, not strapped to the roof, to reduce wind resistance.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ways-to-save-money-on-the-family-road-trip-800543450.aspx Thu, 30 Jun 2011 17:59:39 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/buying-cars-online-convenient-and-efficient-800541830.aspx When consumers are in the market to buy a new car, they may be tempted to forgo the traditional car buying method of visiting a dealership, opting instead to shop online. In the end, however, these individuals often wind up going to the dealer, fearing the convenience of online shopping is offset by dealers jacking up the price.

But as Edmunds.com recently discovered, it may be wise for car shoppers to stick with their first instinct and shop online.

Car deals online aren't always found at dealership

That's because when Edmunds.com performed a search online for the price of a minivan, the cost was $500 less than the sticker price at the local dealership.

Eager to confirm the price disparity, Edmunds.com went to the dealer in question and asked to speak to a salesman from the company's internet department. When the dealer arrived, Edmunds.com showed him a picture of the minivan Edmunds was interested in purchasing on a mobile device. The man confirmed the online price was, indeed, $500 less, but it really was probably $1,000 less had Edmunds.com gone through the traditional channels. That's because the dealership likely would have tried to sell additional options, such as an extended warranty.

Go to the dealership and ask to speak to salesman from internet department

Thus, Edmunds.com recommends car buyers take advantage of the world wide web, as there may be deals online that aren't found in stores. But the automotive website says shoppers may want to try for the best of both worlds—namely, shopping online for a low price, then visiting the dealer and asking to speak to the company's internet salesperson about the deal in question.

Edmunds.com says shoppers should then follow two rules of thumb. One, they should not agree to any deal before first seeing all the fees included in the price. If the fees prove not to be a problem, the source states car buyers should then ask that all the documents be handled by the insurance salesman and not someone who wasn't involved in the deal. This may be because another salesman could try to sell the buyer additional options they aren't interested in.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/buying-cars-online-convenient-and-efficient-800541830.aspx Wed, 29 Jun 2011 15:50:19 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/more-40-plus-mpg-vehicles-being-sold-this-year-800541565.aspx Though there was only one car in the U.S. able to get up to 40 miles per gallon on the highway in 2010, Edmunds.com says there are many more this year.

According to the website, rising gas prices have encouraged more automakers to create more fuel-efficient models to help drivers get gas savings. Those looking to buy a new car may want to check out models that can reach the high mileage mark.

2011 Chevy Cruze Eco

On the highway, Edmunds states the 2011 Chevy Cruze Eco can get up to 42 mpg. Selling for roughly $18,175, the vehicle costs nearly $2,000 more than a regular Chevy Cruze, but can offer owners substantial savings due to its fuel efficiency.

The website states Chevy conducted extended wind-tunnel testing to improve the car's aerodynamics. The company was able to reduce aerodynamic drag by 10 percent due to the tests.

Additionally, the Cruze Eco was given a light frame of roughly 3,000 pounds—more than 200 pounds less than the Cruze—as well as a turbocharged 138-horsepower 1.4-liter engine with six-speed manual transmission. Shifting into sixth gear in the Cruze Eco allows motorists to reduce the engine's rpm at cruising speed, which maximizes fuel economy.

2011 Ford Fiesta SE SFE

Edmunds states the "SFE" stands for "super fuel economy." Basically, the source states this "SFE" was created through several fuel-conserving measures, which allow the car to reach 40 mpg on the highway.

Some of these measures include aerodynamic enhancements—which include under-body panels and lightweight, cast-aluminum wheels—and an automated transmission that maximizes fuel use through reducing mechanical friction. This engine technology is something Edmunds says Ford plans to use in 90 percent of its vehicles by 2014.

2012 Honda Civic HF

Similar to Ford's "super fuel economy," Honda has added "high fuel economy" to the latest version of its Civic. Edmunds says the 2012 model comes equipped with a 1.8-liter i-VTEC incline-4 engine. This engine, along with a five-speed automatic transmission and Eco Assist technology, allows drivers to get 41 mpg on the highway.

Eco Assist offers Civic owners the ability to maintain fuel efficiency, as it provides them dashboard visual aids regarding their gas use. If drivers are efficient with gas use behind the wheel, the system alerts drivers. Conversely, if they're not using gas efficiently, Eco Assist will tell them so.

2011 Hyundai Elantra

According to Edmunds, the 2011 Hyundai Elantra is one of the most affordable options available for drivers looking to buy a new car with high fuel efficiency. The model sells for less than $15,000 and gets 40 mpg highway, the source says.

The Elantra GLS comes with six-speed manual transmission, the website states, while the Elantra Limited comes with six-speed automatic. Other than this difference, Edmunds says both models come with a 2,660-pound frame and an entirely aluminum engine—both of which help the car achieve a fuel economy of 40 mpg or higher. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/more-40-plus-mpg-vehicles-being-sold-this-year-800541565.aspx Wed, 29 Jun 2011 14:28:46 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/negotiating-a-good-deal-for-a-car-800540624.aspx Hoping to land a good deal, car shoppers will occasionally try negotiating with a car dealer before buying a used car. But as Edmunds.com discovered in an interview with a man in the sales negotiating business, being able to do it effectively doesn't come easily.

"I love the art of negotiating," said Oren Weintraub, who owns a car-buying service in Sherman Oaks, California, in an interview with the website. "It's kind of like a dance—you have to know what to say and when to say it. You have to be strategic. And above all else you have to know how to create leverage."

Because so much of Weintraub's business comes from negotiating on behalf of car shoppers who request his services, Edmunds.com says he was hesitant to reveal some of his deal-making secrets. Nevertheless, he let the website sit in on a few calls.

Leverage is crucial to making a deal

For instance, the website says throughout the course of one conversation, Weintraub made it clear his client had other cars in mind from a different dealer. This provides the negotiator with some of the leverage Weintraub says is crucial to getting a good price.

"I see leverage as an angle people use to exercise power in deal-making situations," Weintraub told Edmunds.com. "Good negotiators are good at overcoming the dealer's leverage and holding firm to what they are willing to spend."

In an effort to obtain leverage, Weintraub says new car shoppers should try and remain as aloof as possible when looking for a car, no matter how much they may want a particular vehicle. Revealing the extent to which someone wants a vehicle, Weintraub says, gives the dealer the upper hand.

Don't bother negotiating with pushy salesmen

Weintraub also tells the website some dealers are too pushy and not worth the effort to try and negotiate.

Be yourself

More than anything else, however, Weintraub says buyers should use the method that suits their style. If a car shopper is trying to negotiate a deal and the tactics do not come off as genuine, Weintraub says the deal likely won't materialize.

"When you're fighting for the right thing, you gain a lot of power," said Weintraub. "And if you can make a person who has what you want feel good about giving it to you—that's the art."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/negotiating-a-good-deal-for-a-car-800540624.aspx Tue, 28 Jun 2011 15:44:28 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/four-cylinder-engines-becoming-more-popular-than-six-cylinder-800540437.aspx Of the many ways car owners can save money on their vehicles, including finding low auto insurance rates and performing do-it-yourself car maintenance, buying a new car with substantial fuel efficiency appears to be one of the more popular choices today, the Los Angeles Times reports.

Auto manufacturers in North America have noticed this preference for vehicles that get better mileage, which may be why many carmakers are building more models with four-cylinder engines rather than ones with six cylinders, the paper states.

Transition to four-cylinder cars

Two out of every three cars produced in North America this year have four-cylinder engines, according to the newspaper—up from 2006, when less than half had four cylinders. Additionally, the paper notes production of cars with six-cylinder engines has fallen from 40 percent to 25 percent in the last five years.

Joe Bakaj, global powertrain chief for Ford, told the Times four-cylinder car sales should make up half of all U.S. automobile sales within five years.

Japan seeing similar trend

In other parts of the world, notably Japan, automakers are also seeing a preference for four-cylinder models. Despite spending considerable time and effort making cars with bigger engines, the paper states some auto manufacturers in Japan are again focusing more on building energy-efficient vehicles.

According to the newspaper, sales of Honda Accords and Toyota Camrys with V-6 engines have slipped in recent years, which could lead to substantial reductions in production of those models.

Gas savings a key benefit

Creating cars with more gas mileage and reduced emissions is becoming the norm for auto manufacturers, many of which are trying to keep up with expanding government-mandated energy standards, the paper says.

Though there are many environmental benefits to the transition to more energy-efficient vehicles, one driver told the newspaper she has wanted a car with a four-cylinder engine because of the considerable fuel savings she could receive.

"We were getting just 12 miles to the gallon in the Jeep. We have had the [Ford] Fiesta for two weeks and we filled it up just once," Jessica Bennett, a Los Angeles resident, told the paper. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/four-cylinder-engines-becoming-more-popular-than-six-cylinder-800540437.aspx Tue, 28 Jun 2011 14:18:19 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/test-determines-fuel-economy-quality-of-compact-cars-800540428.aspx Poor economic conditions nationwide are veering car buyers to smaller, more fuel-efficient models, according to USA Today. However, the newspaper states some consumers are confused about which compact vehicles to buy, as many manufacturers claim their models have the best mileage.

To help these confused buyers make a quality decision, the paper conducted a joint test with Cars.com. The Under 20/Over 35 Shootout—which included five vehicles that sell for less than $20,000 and get at least 35 miles per gallon the highway—was developed to aid consumers looking to buy a new car.

The five participants included the 2011 Hyundai, Elantra, 2011 Kia Forte, 2012 Honda Civic, 2012 Ford Focus and 2011 Chevrolet Cruze.

2011 Hyundai Elantra takes home top prize

Though her current everyday car is a 2008 Toyota Highlander—an SUV—test subject Frani Udell told USA Today she was impressed when driving the 2011 Hyundai Elantra for the Shootout. While she told the newspaper she enjoyed driving the compact car, Udell stated a lack of space would be a problem for her.

Despite Udell's preference, the Elantra won the Shootout test, as it received the highest scores from all test drivers. Shootout volunteers stated they enjoyed the Elantra more than each of the other cars tested.

Other cars impress too

While the other four cars weren't favored as much as the Elantra, the newspaper says each had their own distinct features.

For example, Ford Motor CEO Alan Mulally told the paper heated seats are a well-liked feature in the newer Fiesta models. "[Consumers] want the features, the content," Mulally said, "Whether it's a Fiesta all the way up to the F-150."

According to the newspaper, technological features were ones many of the test subjects liked. The Kia Forte was noted for its quality iPod and Bluetooth integration capabilities, the paper says, while the Chevrolet Cruze had the best scrolling options for iPods.

Newer compacts "state-of-the-art"

Jack Nerad, executive market analyst at kbb.com, told the paper new compact vehicles, such as the ones tested for the Shootout, are considerable upgrades over other basic models.

"A state-of-the-art compact today is pretty roomy, and if loaded, it's got a lot of stuff," including automatic temperature control, a navigation system and keyless entry, Nerad said.

TrueCar.com industry analyst Jesse Toprak told the newspaper sleeker designs are also something many car buyers take into consideration in their purchase decision. More modern models are more aesthetically attractive than older compact cars, Toprak stated. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/test-determines-fuel-economy-quality-of-compact-cars-800540428.aspx Tue, 28 Jun 2011 14:13:13 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ethanol-to-subsidize-or-not-to-subsidize-800536155.aspx Farmers whose earnings revolve around corn suffered a bit of a setback recently as, according to the Wall Street Journal, Senate lawmakers voted to stop providing subsidies for its production.

The paper reports the vote doesn't necessarily end the government's 30-year span of providing funding for corn, as the measure still has to be considered by the House of Representatives. However, President Barack Obama, who is in favor of the subsidies, could then veto the bill.

Subsidies may affect fuel prices

While cutting off funding to the production of ethanol may affect corn growers' bottom line, it may also affect what drivers pay at the pump. As AOL Autos recently discussed in an article, ethanol is often mixed with gasoline at service stations because it's cheaper to produce. And because it's cheaper to produce, gas consumers pay less to fill up their tank. That may be threatened, however, if subsidies are cut off.

Whether ethanol is good to use or not depends upon who is asked. Those who are for it say it's cheap to produce and keeps gas prices low. But those who oppose ethanol say it's less efficient than straight gasoline.

Ethanol supporters say it's cheaper to produce, more environmentally friendly

Supporters of ethanol and subsidies for its production counter by saying while it may be less efficient, it's a cleaner energy source than gasoline—decreasing the amount of greenhouse gas emissions released into the atmosphere—while at the same time reducing U.S. dependence on foreign oil.

Several automakers like Ford and Chrysler have developed models which run on 'flex fuel,' which uses 85 percent ethanol and 15 percent gasoline. Some fuel stations carry this type of fuel—traditional gas typically carries 10 percent ethanol and 90 percent gas—but mainly only in the Midwest, another reason why some groups oppose ethanol subsidies. In short, the flex fuel is not being used at enough gas stations to justify subsidizing it.

As AOL Autos says, the issue is a sore spot with both Democrats and Republicans, and both groups are having a hard time dealing with it. While the continued funding of corn production could wind up affecting food prices, it may be immaterial to how it will affect gas prices if General Motors CEO Dan Akerson's prediction comes to fruition.

Recently, Akerson said ethanol as a fuel source "is going to die slowly" because automakers are devoting most of their attention and capital to energy-efficient cars like plug-in hybrids and electric models like the Chevy Volt and Nissan Leaf.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ethanol-to-subsidize-or-not-to-subsidize-800536155.aspx Wed, 22 Jun 2011 12:54:07 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/new-car-prices-reached-record-highs-in-may-800536147.aspx Though Jeep and Buick proved to be the exception to the rule, new car sales were negative in the month of May, as the number of units sold fell nearly 3 percent. In fact, consumer spending in general dropped in May, with retailers reporting two-tenths of a percent dip.

While several factors are likely to blame, one of them may be that prices on vehicles have been trending upwards.

Vehicle transaction prices reach record high

According to a report released June 1 by the automotive website TrueCar.com, new car prices skyrocketed in May, climbing to their highest levels since the late fall of 2002.

Estimates by TrueCar.com indicate the average transaction price for a new vehicle was $29,817, a 2 percent rise year-over-year, or what amounts to $608 per vehicle.

Jesse Toprak, vice president of industry trends and insights for the TrueCar, said the automotive industry has never seen such drastic price hikes.

"Average transaction prices reached their highest levels ever recorded [in May]," said Toprak. "Even though consumers continued to move toward smaller vehicles, they also chose highly contented vehicles that are higher priced, keeping transaction prices high."

Honda charging nearly 5 percent more

Some of the most drastic price hikes came from foreign carmakers such as Hyundai, Nissan and Honda, as their prices increased 1.5 percent, 3.5 percent and 4.6 percent, respectively, measured year-over-year. These price increases may, in part, be explained by the part shortages sustained due to automakers shutting down several manufacturing plants in March after an earthquake brought Japan's economy to a near standstill.

KBB: Used fuel-efficient vehicle prices have peaked

While new-vehicle prices are rising, used vehicles values are now dropping, particularly among used fuel-efficient models. In fact, according to the vehicle valuation company Kelley Blue Book, values for gas-sipping models have reached their peak. For the first time in 2011, prices are falling among used hybrid, compact and subcompact vehicles, according to KBB.

How low the prices will drop is yet to be determined, but Alec Gutierrez, manager of vehicle valuation for KBB, says purchasing a fuel-efficient model is a great way to save money.

"Regardless of where these used-vehicle values end up, fuel-efficient vehicles will remain a smart purchase for budget-conscious consumers," said Gutierrez. "Our advice to dealers and consumers is to shop with caution today, since values are likely to fall through the early part of summer."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/new-car-prices-reached-record-highs-in-may-800536147.aspx Wed, 22 Jun 2011 12:49:30 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/high-gas-prices-hurting-family-finances-800536135.aspx While the annual vacation season gets underway, Americans are spending significantly more money at the gas pump. For every $10 a household earns before taxes, almost a full dollar goes toward gas, according to the Associated Press. This is a 40 percent increase from normal.

What families are actually spending

In April the average family spent $369 on gas, compared to just $201 in 2009. Households are spending more on gas than they are on cars, clothes or recreation, the media outlet reports.

How is the travel industry affected?

The rising cost of gasoline is forcing many potential travelers across the country to curb their travel plans to save fuel, and in some cases cancel them altogether. Younger drivers are finding their social lives are being inhibited by high prices.

"We're always worrying, 'How are we going to get home. We've got less than half a gallon left,'" Alex Martinez, a senior at Arcadia High School in California, told the media outlet. "We definitely can't go out as much, and we can't go as far."

Slow economic recovery not helping

Some experts note this increase in gas prices is coming at a time when most workers are not getting raises. The economy is beginning to recover, but employers are not yet converting these benefits into higher salaries, according to the news source.

Some experts have surmised this growing gas issue is making some individuals feel poorer than they actually are. Americans are limiting their spending habits in other areas of their lives to make up for these gas prices. Wal-Mart and Target have both blamed the gas crisis for hurting sales, the AP reports.

James Hamilton, an economics professor at the University of California, San Diego, says for every 50-cent increase in gas prices the U.S. economy loses $70 billion in a year.

Some travel experts are predicting a decline in the amount of money families will spend on their vacations this year, while others expect Americans will spend more this summer than they did in 2010.

According to a survey released by the global travel assistance company Mondial Assistance USA, more families are planning to go on vacation this year. It is believed Americans will spend $86.4 billion on summer vacations in 2011. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/high-gas-prices-hurting-family-finances-800536135.aspx Wed, 22 Jun 2011 12:27:05 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/quality-affordable-iphone-car-cradles-800536086.aspx After buying a new car, iPhone owners may want to invest in an iPhone car cradle to safely hold their device while they talk on Bluetooth, navigate the road with GPS or play music. While many models can run a high price, Edmunds.com states there are some affordable options new car owners may want to consider.

Though the models tested by the website don't allow for phone charging or have additional speakers, they are all under $40, which is considerably less than more high-end units.

Arkon Mini Friction Dashboard Mount with iPhone Safety Anchor

Sold in stores for nearly $30, Arkon's iPhone car cradle can be attached to a driver's dashboard or windshield—something not all models offer. The cradle can hold the original 3G and 3GS iPhones, Edmunds says.

In addition to a strong base and flexible maneuvering, the Mini Friction Dashboard Mount features an anti-skid surface to protect the car from scratches. To secure the cradle, Arkon added in an attached adhesive hook, according to the source, which keeps it firmly on one's dashboard.

One drawback to this cradle is it doesn't allow for iPhones to be attached with cases or protective coverings on, the source says. Despite this minor detail, Edmunds gives the product an overall score of A-.

Griffin Window Seat

According to Edmunds, one reason the Window Seat cradle, manufactured by Griffin, gets a B+ is for its ability to hold all iPhone models, as well as the iPod Touch.

Its ball-and-socket system and extension arm allow for motorists to move the cradle to various locations after attaching it to their windshield. Also, the Window Seat includes an auxiliary audio cable, allowing drivers to hook up their iPhones to their car's stereo system.

Edmunds says the iPhone cradle sells for around $30 as well, making it another low-priced alternative to expensive electronic models.

Kensington Sound Amplified Cradle for iPhone

For nearly $40, car owners can purchase Kensington's Sound Amplified iPhone cradle, Edmunds states, which differs from the previous two models, as it has passive amplification. This means drivers can channel audio from an iPhone through a built-in amplifier, enhancing the sound.

The product also features spring-loaded cradle arms to hold onto a hooked-up iPhone in addition to the bottom support. Additionally, for drivers living in states where windshield mounting devices are frowned upon, Edmunds states Kensington's model comes with a vent mount, which attaches just as easily.

This versatility is likely why Edmunds gives the Sound Amplified Cradle an A. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/quality-affordable-iphone-car-cradles-800536086.aspx Wed, 22 Jun 2011 11:43:34 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/current-vehicle-prototypes-could-be-cars-of-future-800535898.aspx After speaking with numerous auto manufacturers about their work in creating more sustainable vehicles, a report by Forbes states there are greener cars which are expected to hit the market in the next decade.

From cars with greater fuel efficiency to more compact models, the news source says automakers are experimenting with a variety of potential options for consumers, many of which may become the future of the auto industry.

Auto experts say prototypes still need work

Chris Borroni-Bird, director of advanced technology vehicle concepts for GM, told Forbes the move toward more sustainable fuel-efficient cars is occurring today. However, there isn't one definitive solution to achieve this transition to greener vehicles.

"Rather than one engine supporting all different needs like has happened for the last 100 years, over time there will be more diversification of propulsion systems and energy sources," he told the source.

Mike Shulman, technical leader for Ford's active safety research and innovation program, told Forbes many features of current vehicles on the market will be maintained in newer models, but the transition to cleaner fuel sources, such as electricity and bio-fuel, will enhance modern cars' functionality and environmental effects.

Wireless signals expected to come standard soon

One new feature many future car models are projected to have standard is wireless communication systems. These devices are being developed to allow vehicles to speak to one another, in a sense, and in turn, help drivers avoid accidents and car insurance claims.

"It's not enough to make vehicles safe and clean, which is what we need here in America where land is plentiful," Borroni-Bird told the news source. "In really dense cities, if you get stuck in traffic and you can't find anywhere to park or it's extremely expensive to park ... you'll want another kind of vehicle."

He added the change from cars lacking the wireless system to newer model cars with the device installed will be like transitioning from a PC to an iPhone. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/current-vehicle-prototypes-could-be-cars-of-future-800535898.aspx Wed, 22 Jun 2011 07:51:25 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/what-to-consider-before-buying-a-new-audio-system-for-a-car-800532240.aspx Ever since the first car radio was built and successfully installed in an automobile in the early 1930s, there has been a steady stream of improvements to its functionality and capabilities. For instance, as Car and Driver magazine recently catalogued, the cassette player came to the car radio in the 1970s, and by 1985- many cars came with CD players.

Today, numerous stores are devoted solely to car stereo systems, as music enthusiasts often choose to buy one that's more advanced than the standard model.

Recently, the car help website Edmunds.com provided motorists looking to buy a radio with a few pointers to take into consideration before buying.

Will the radio fit?

First, the automotive website says it's important for buyers to note the radio size specifications are for one's vehicle, as they tend to vary from unit to unit. Once this is established, the source states shoppers should have a "realistic expectation" about what the vehicle is capable of handling. For example, a driver may want to add new subwoofers to the car, but often the vehicle's limited space makes that addition impossible.

Have a budget in mind

Something else the automotive website says drivers should do is to establish a budget. Audio systems can cost a few hundred to several thousand dollars. To make things as easy as possible for both the salesman and the buyer, Edmunds.com says it's best to have a price range in mind.

Buy the unit first, then the speakers

If buyers are looking to purchase both a radio unit and speakers, the source states drivers should first buy the unit, as this is what the driver or passenger will be using when tinkering with the controls or adjusting the volume. Edmunds.com says buyers should ask themselves questions, such as 'Are the controls easy to read?' or 'Are the buttons too small or difficult to push?'

The final step in the radio buying process, the source states, is listening to the speakers capable of being installed in one's vehicle. As with musical tastes, the quality of one speaker system to the next is largely subjective, so Edmunds.com says it's best to trust one's own instincts about sound quality.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/what-to-consider-before-buying-a-new-audio-system-for-a-car-800532240.aspx Thu, 16 Jun 2011 15:31:44 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/technology-may-be-able-to-help-customers-get-the-best-car-experience-800531830.aspx Experts have long told potential car buyers they should do research before leaving home. However, as the development of smartphones and their programs continues to grow, the actual amount of time spent researching may be dwindling, according to The New York Times.

Never be out of date

If a consumer were to bring along printed fact sheets from the Internet when buying a new car the dealer could simply claim they were out of date. With the instant gratification of a mobile app, that argument may no longer be viable, the paper reports.

Compare prices at multiple dealerships

Car sites such as Edmunds.com and Kelly Blue Book offer apps which include information on target prices based on the average sales in a particular area, also known as the fair market value, according to CBS Moneywatch.

Some of these apps also include a "true cost to own" feature, which allows the potential buyer to factor in taxes, interest, car insurance and gas in order to determine the level of affordability. Reviewers have found Kelly Blue Book provides the best application for used car shoppers while Edmunds.com takes top honor in the new car market, the Times reports.

"People now are used to shopping on the Internet and just clicking to buy. Shopping for cars can seem like being on another planet," Edmunds CEO Jeremy Anwyl, told CBS. "Having access to the information they need on their smartphones will make a lot of shoppers feel more at home."

Where did I park?

In addition to helping consumers compare prices, some other apps can actually help owners locate and operate their vehicles. Chevrolet, Buick, Cadillac and GMC all have apps allowing customers to program their parking location into a GPS-connected map, the media outlet reports. Some apps can even be set to coincide with parking meters, alerting drivers when they need to add more quarters.

Never use a paper manual again

With GM applications, consumers can scan their Vehicle Identification Number with a smartphone camera and instantly access the car's manual. That eliminates the need to dig around in the glove compartment.

Will keys soon be obsolete?

OnStar customers can actually control some of their car's functions remotely from a smartphone. Cars can be locked or unlocked in the event the driver has been locked out, and some apps can even start a vehicle's ignition, all but eliminating the need for remote starters, CBS reports.

These programs can also help in locating lost or stolen vehicles. If a car is in the possession of thieves, the owner can actually lock them out and pinpoint the vehicle's location while alerting the police.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/technology-may-be-able-to-help-customers-get-the-best-car-experience-800531830.aspx Thu, 16 Jun 2011 11:02:54 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/most-affordable-new-cars-of-2011-800530791.aspx Fuel efficiency is a top concern for many consumers looking to buy a new car in 2011, according to Cars.com. As such, the website devised a list of the most affordable vehicles that also have the best fuel economy.

Vehicles on the list had to be a 2011 or 2012 model, have certain features, including power windows, locks and mirrors; air conditioning; remote keyless entry; electronic stability control, and automatic transmission.

2011 Honda Fit

Cars.com states the Fit is widely known as the "original premium budget vehicle," as it is low-priced yet comes with many amenities. In addition to the aforementioned features, a USB interface comes standard in the 2011 model, which allows drivers to plug in their music devices.

Though optional, the source says buyers would be wise to purchase a Fit with five-speed automatic transmission for an additional $800, as the transmission could increase the car's gas mileage from 28 to 35 miles per gallon (mpg), or nearly $2,000 in fuel per year.

Despite being higher in price than many other compacts, the source states the Fit comes better equipped than most others its size.

2011 Ford Fiesta

The first subcompact manufactured by Ford since 1997—when the company's Aspire went out of production due to poor sales—the Fiesta is a substantial improvement, Cars.com says.

The latest subcompact from Ford features high-end amenities, such as push-button ignition and automatic climate controls. Additionally, the vehicle gets an EPA-rated 29 mpg in the city and 38 mpg on the highway with the six-speed automatic transmission, which could save owners around $1,800 annually.

2011 Mazda2

Similar in look and feel to the Ford Fiesta, but with a lower-quality transmission and powertrain, the Mazda2 is one of the premier four-door subcompacts on the market, according to Cars.com.

With a four-speed automatic transmission installed, the Mazda2 gets up to 33 miles per gallon on the highway, saving drivers a considerable amount of money at the pumps. However, the car has no special bonus features.

2012 Hyundai Accent

Hitting the market later this summer, the 2012 Hyundai Accent sedan is one of the highest performing vehicles on Cars.com's list, as it has a 138-horsepower engine that gets 30 mpg in the city and 40 mpg on the highway.

Starting at around $12,500, the Accent has a six-speaker stereo, USB capability and an Eco mode, which optimizes gas mileage. Cars.com says while it may be more expensive than the 2011 model, the 2012 Accent is a considerably better value due to its upgrades in fuel efficiency. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/most-affordable-new-cars-of-2011-800530791.aspx Wed, 15 Jun 2011 10:33:38 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/first-impressions-make-a-difference-when-selling-a-vehicle-800530022.aspx When buyers enter the used car market, savvy shoppers look for things which aren't merely skin deep. For instance, while some buyers may be sold by a car's color or design, experienced automotive shoppers will consider its mileage, its reliability and its crash safety test ratings. But first impressions still matter to buyers, and because of this, Bankrate.com recently posted some suggestions that could influence success in selling a used car.

Detailing the exterior

The website says sellers may want to consider detailing the car's exterior, whether it's through a professional or done at home. Bankrate said sellers can easily spruce up their used vehicle themselves by purchasing some common car care products, such as wheel cleaner, bug and tar remover and a waxing agent. The source says applying these products may not make it look like it just came from the manufacturer, but they will make it more aesthetically pleasing and eye-catching.

Does it smell?

A car's smell is another important factor to consider, according to Bankrate. The source says some odors may be undetectable to the owner but very apparent to others. The financial rate information website says even if it doesn't appear to emit a foul scent, it's a good idea to spray the interior with any odor-eliminating product as a fail-safe measure. The website says sellers should also take advantage of the vehicle's vents, making sure it’s bringing in outside air.

Keep the interior spic and span

Of course, cleaning is an important aspect as well, as Bankrate says every corner of the car should be free of debris, personal items and trash. For hard-to-reach places, the website says applying cleaning chemicals to cotton swabs or an old toothbrush can help.

Repair minor dents and dings

Slight dings and dents may seem like a minor issue, but Bankrate says they can be a significant one for potential buyers. Thus, the source says sellers should consult a trusted auto mechanic and ask them what it will cost to fix imperfections and scuff marks. Depending on the extent of the repair work, Bankrate says it may set sellers back as little as $100.

While these sprucing techniques may increase the chances a buyer will purchase a particular used vehicle, they won't improve its overall value. Earlier this year, Cars.com listed several features sellers add in the hopes of improving its value.

According to the site, some of the enhancements do tend to increase its asking price, such as cruise control, but technology enhancements often devalue the car. The automotive website says because technology companies are constantly updating their latest gadget or device, installing GPS units or entertainment systems may diminish a car's value and may not be worth the effort.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/first-impressions-make-a-difference-when-selling-a-vehicle-800530022.aspx Tue, 14 Jun 2011 13:16:49 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/best-ways-to-prevent-most-common-auto-repairs-800528004.aspx Auto repairs are often completed by mechanics after a problem occurs. According to AOL Autos, car owners can prevent these issues from occurring altogether by taking some measures to ensure their vehicles are kept in shape.

Engine misfire

A misfiring engine is the result of spark plugs failing to deliver power to a driver's engine after turning the ignition. AOL states the best way to avoid this issue is to look at the car's manual and determine what scheduled engine maintenance is recommended.

Following the manual's specifications can help a car owner make sure their engine is running properly. The source also advises owners get an annual trouble-code scan for their car's engine at an auto maintenance shop, which can uncover some other engine issues.

Evaporative emissions leak or failure

A vehicle's evaporative emissions system control, or EVAP, system traps fumes from the fuel tank, according to AOL. The system has a liquid vapor separator which prevents gas from leaking into it with help from a canister with a purge valve.

While running an engine, the source says the purge valve opens up to let oxygen into the EVAP system's canister, which forces trapped fuel fumes into an engine's air intake where they burn off.

Fixing a leak inside the EVAP system can be a hassle for car owners, AOL says, and could cost hundreds of dollars. To keep the system working well, the source recommends tightly screwing the gas cap back on a vehicle after every time a driver pumps gas. Additionally, a rust protection application can keep line corrosion in the system to a minimum, AOL states.

"System too lean"

Many vehicles have a "system too lean" icon, which lights up when issues occur with engine parts, such as vacuum leaks and faulty injectors. Mechanics often scan the car's computer performance system to locate the issue and repair it. However, fixing problems with a car running "too lean" could run around $150.

According to AOL, auto maintenance can help avert this problem. Getting regular check-ups on a car can alert mechanics to any issues. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/best-ways-to-prevent-most-common-auto-repairs-800528004.aspx Fri, 10 Jun 2011 13:45:30 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/worst-selling-cars-of-2011-800527988.aspx Despite the extensive work auto manufacturers put into creating and marketing quality cars, sometimes, the public isn't enticed by them. Whether it's due to aesthetics, price, features or other factors, CNNMoney states there are some vehicles in particular which haven't sold well this year.

BMW X6

By combining some of the most well-liked features of SUVs and coupes, including a high clearance and a sloping roof, BMW thought the X6 would be a hot item on the car market this year.

However, CNNMoney states the model hasn't met the carmaker's expectations, as sales figures for the X6 have been well below BMW's predicted figures. The source states sales of all BMW vehicles are high in 2011 - except for the X6. Whereas the X5 sold more than 10,000 units last year, fewer than 2,000 X6 vehicles have sold this year.

Toyota Tundra

An annual competitor to Ford and Chevrolet pick-up models, the Toyota Tundra has sold well during the past few years, according to CNNMoney. In 2010, though, it disappointed, as only 93,000 models were sold.

This year, sales appear to be headed a little higher, the source says. Unfortunately for Toyota, sales of the Ford F-150 and Chevrolet Silverado appear to also be selling at a higher rate in 2011, which may be cause for concern for the model moving forward.

Nissan Quest

Trying to compete with other manufacturers who have had substantial success in selling minivans—Chrysler, Honda and Toyota—Nissan failed, CNNMoney states.

The Nissan Quest hasn't appealed to minivan shoppers looking to buy a new car this year, the source says. CNNMoney states this disinterest for the Quest may be due to the model's lack of interior space in comparison to better-selling cars, as well as the manufacturer's short reputation as a minivan producer.

CNNMoney says it's likely if the Quest continues to fail to meet Nissan's sales expectations—only a few thousand have been sold this year—the auto company may follow other manufacturers who ventured into the minivan market and later left, including GM and Ford. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/worst-selling-cars-of-2011-800527988.aspx Fri, 10 Jun 2011 13:38:34 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/which-cities-pay-the-steepest-gas-prices-800527983.aspx When gas prices rise, the consumer suffers, as they're often forced to reduce spending in other areas in order to accommodate the price change. While everyone is affected, Forbes magazine wanted to know which cities are affected the most when the price of self-serve regular goes up.

Measuring the price of gasoline among states and cities is nothing new. Fuel price tracking websites like GasBuddy.com update price changes regularly among the major metropolitan areas. Because of this, Forbes magazine wanted a more detailed way to determine drivers' fuel costs that would better gauge transportation costs.

The magazine found it with the Chicago-based think tank Center for Neighborhood Technology, as the firm employed a detailed methodology to obtain information about what the average motorist spends for gas among cities. For instance, instead of only considering what the average price of fuel at local gas stations is or what the average commute time is for workers, the CNT used several variables, including household income, commuters per household and the size of city blocks.

North Carolina area spends the most, NYC and LA the least

The findings about which city spends the most may be surprising, because at nearly $4,300 annually, that title goes to commuters of North Carolina's Raleigh-Durham-Chapel Hill region. Forbes said "residents of 'the Triangle' think nothing of driving from one point to another."

Finishing second is another part of the Carolinas, the Charlotte-Gastonia-Rock Hill area, spending an average of $4,244 annually, according to the source.

Another East Coast city, Atlanta, finished third on the list. Forbes says $4,200 is spent on fuel per year per household, much of it wasted while cars idle in traffic jams.

Some of the cities where annual transportation costs are least were in cities where one may expect them to be costly—Los Angeles and New York City. The reason? The source says because everything is so centrally located in these areas, motorists often eschew their cars and take the subway or walk.

Survey: Gas prices will drop even further

While gas prices remain high historically, the 20-cent decline over the past month has some motorists believing they'll drop even more in the next 30 days.

According to the latest poll conducted by the vehicle valuation service Kelley Blue Book, 52 percent of car shoppers said they expected gas prices to decline or remain the same by the end of June. The study also found car shoppers aren't citing fuel costs as often as the primary reason for buying a new car, down from 35 percent in April to 30 percent in May.

In a statement, Jack Nerad, KBB's executive editorial director, said if consumer sentiment regarding gas prices holds it could be a positive sign for automakers' summer sales.

"If consumers feel more optimistic about the near-future state of gas prices and more confident in their personal economic situations, this will bode well for the automotive industry," said Nerad.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/which-cities-pay-the-steepest-gas-prices-800527983.aspx Fri, 10 Jun 2011 13:36:30 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/minivan-options-growing-rapidly-800525514.aspx It has been almost three decades since the minivan burst onto the automobile scene back in 1983. For 20 years the family-friendly vehicles held a significant share of the car selling market, until sport-utility vehicles began appealing to similar buyers, according to USA Today.

Minivan sales peaked at 1.4 million in 2000, but now only about 650,000 are being sold annually. Shoppers choosing minivans when buying a new car dropped from 8.5 percent of the market in 1995, to a mere 4 percent in 2011, according to J.D. Power and Associates data.

How to entice buyers

In an attempt to recapture lost buyers, minivan makers have poured millions of dollars into the development of new models, the news outlet reports. They have added luxury features as they try to help vans shed their "uncool" image.

"Buyers are willing to pay the $40,000 for a Honda Odyssey or Chrysler Town & Country to get all the bells and whistles," Jeff Schuster, executive director of forecasting at consultant J.D. Power and Associates, told the news source.

Minivans are high priced items for many manufacturers, so recapturing the market could be very profitable for companies. The Honda Odyssey retails at more than $35,000, and experts found it to be the most favorable model, according to a USA Today study.

Who is part of the new market?

Manufacturers believe the 60 million Generation Xers make a good potential client-base. There are also another 80 million Millenials reaching ages when they may be starting a family and need a vehicle more sympathetic to their growing needs.

Luxury advancements

In an attempt to further attract new buyers, carmakers have redesigned the interior of their vans, the media outlet reports. The second row of seats in the Toyota Sienna has captain's chairs that fold back into Lay-Z-Boy style recliners with leg rests. In both Chrysler and Dodge minivans, their second-row seats fold down completely flat allowing for better storage without completely removing them.

Entertainment systems inside the vans have also been greatly improved. Video monitors can range as wide as 16 inches and some even come with video game consoles, according to USA Today.

"Just as Bill Gates made being a nerd cool, these campaigns, if done correctly, can go a far way in helping boost minivan sales," J.D. Power analyst Steve Witten told the news source. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/minivan-options-growing-rapidly-800525514.aspx Wed, 08 Jun 2011 08:09:02 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/gas-prices-grow-as-economy-struggles-800525490.aspx The national average cost of a gallon of gas last year during Memorial Day weekend was $2.76, but this year it crept all the way up to $3.81, according to TheStreet.com. Experts believe prices may have leveled off temporarily, but do not think drivers should get comfortable paying this amount for long.

The reduction in American demand of crude oil, which may be a result of the rising cost, will actually allow prices to drop up to an additional 40 cents after an eight-cent reduction this week. But, with the continuing turmoil in the Middle East, some experts believe the cost of a barrel of crude oil will rise from its current rate of $100 a barrel up to a possible $150 a barrel, according to the news site.

How to fight the pump gouge

If these prices do in fact grow by that much over the next six months, there are ways drivers can reduce the amount of gas they consume. For anyone considering buying a new car, experts say to pay close attention to fuel-efficient models, according to Edmunds.com.

First, drivers are encouraged to figure out the mileage they get from their cars now. That way when gas prices rise they will be able to understand the true financial impact, the site reports. Also, this may help drivers reduce their time behind the wheel, or see if a fuel-efficient car would be more practical.

Experts discovered the number one way to reduce fuel consumption, aside from driving less, is to drive more calmly, Edmunds.com reports. People who did not speed, swerve through traffic or slam on their brakes with regular frequency improved their fuel economy by 35 percent.

Driving across town for gas which is slightly cheaper may not save any money in the long run, and manual transmissions do not always get better gas mileage, according to the site.

Don't run from the SUV

Many may instinctively seek to get rid of their SUVs as soon as possible, but that may not be the best financial decision. The resale and trade-in value on these vehicles drops as quickly as gas prices rise, so a person could lose money on a sale, and end up breaking even at the gas pump in the bigger scheme of things, Edmunds.com warns.

Enjoy the options

While gas prices may be rising and falling at record rates, the automobile companies are producing eco friendly, energy efficient vehicles just as quickly. Congressional mandates require auto manufacturers make their fleets meet 35 mile per gallon gas regulations by 2016. As a result, the number of hybrids available to consumers has grown from 16 models in 2008 to an impressive 34 models at the end of last year, according to the source. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/gas-prices-grow-as-economy-struggles-800525490.aspx Wed, 08 Jun 2011 07:56:59 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fuel-economy-window-stickers-mandated-for-new-cars-800524744.aspx The federal government has released a long-planned fuel economy sticker, which will be mandatory for all vehicles, beginning with models made for 2013.

According to the New York Times, the updated stickers will be the first to relay to those buying a new car the gas mileage, as well as a vehicle's impact on the environment.

Different sticker labels will be assigned for different car models, the paper reports. Conventional, hybrid, plug-in hybrid and electric vehicles will each receive separate labels.

The newspaper states the Environmental Protection Agency and the Department of Transportation, which spearheaded the efforts to update the stickers, turned down an initial design which would have graded cars from A to D based on fuel economy and pollution.

Carmakers think sticker is misleading

Some automakers are opposed to the new stickers, according to the paper, stating they could be misleading for consumers.

However, Transportation Secretary Ray LaHood says the stickers will be up-front about vehicles' gas mileage and pollution, which should make buyers more knowledgeable.

"These labels will provide consumers with up-front information about a vehicle's fuel costs and savings so that they can make informed decisions when purchasing a new car," he said.

Greenhouse rating new addition to sticker

One of the new features on the stickers will be a greenhouse gas rating, which the paper says will compare a car's emissions to those of other similar models. Additionally, a smog rating will be provided on the stickers, which will detail how much nitrogen oxide and particulates automobiles emit.

The newspaper states electric cars will receive the highest ratings for greenhouse gas and smog. However, the stickers will not include information regarding emissions from power plants which generate the electricity used to charge these cars.

Alliance of Automobile Manufacturers' vice president for public affairs, Gloria Bergquist, expressed her belief the EPA made the right move by leaving off power plant emissions data on the stickers.

"Upstream emissions raise a complex mix of factors that auto manufacturers have no way of predicting or controlling, including the electric energy mix of a particular geographic region, and how much - or in what manner - vehicles are driven," she said.

QR code helps consumers find vehicles' gas information

The inclusion of a QR code on new vehicles' stickers is also a variable the EPA and Department of Transportation believe will help consumers make better decisions about buying fuel-efficient cars, the paper reports.

By scanning a QR code on a smartphone, the newspaper says buyers can get cost estimates for gas mileage based on consumer driving habits, as well as fuel and electricity costs near buyers' homes. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fuel-economy-window-stickers-mandated-for-new-cars-800524744.aspx Tue, 07 Jun 2011 13:02:47 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/with-gas-prices-rising-government-looking-for-answers-800524615.aspx Members of the oil industry and oil stock traders are under investigation by the U.S. government, according to USA Today, as prices for gas have increased substantially this summer from a year earlier, causing many consumers to alter their driving and auto maintenance habits.

Price jump confounds drivers

The newspaper says as of Memorial Day, prices at gas stations averaged $1 per gallon more than one year earlier. John Felmy, chief economist for the American Petroleum Institute, says there's a reason for this increase.

"Oil prices have risen for basic supply and demand reasons," Felmy told the paper. "Worldwide demand for oil, particularly from China and India, is up while production is flat."

However, the federal government isn't buying it, and has begun an investigation into possible oil price manipulations by traders and industry members.

U.S. files suits against traders

Alleging two oil traders from California and Australia, along with three trading firms, tried to manipulate the oil market in 2008, the U.S filed two lawsuits. The paper says U.S. officials believe these traders illegally obtained $50 million in profit by hoarding nearly two-thirds of the American oil reserves.

Around the time the U.S. believes this improper pocketing occurred, the newspaper states oil prices rose to $147 per barrel, an all-time high. This year, the federal government thinks similar corruption could be occurring again.

Expert says conspiracy unlikely

Stephen Schork, former oil trader on the New York Mercantile Exchange, told USA Today while it may seem the oil industry is dictating prices, he doesn't believe corruption of the market is possible.

But, he told the paper it does appear oil companies are bringing prices down right as the majority of consumers and government officials become vocal about the issue.

Commodity trader Don Roose, of U.S. Commodities in Iowa, though, told the paper this corruption could be true, stating traders play a "major factor" in determining oil prices. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/with-gas-prices-rising-government-looking-for-answers-800524615.aspx Tue, 07 Jun 2011 11:37:34 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/which-features-help-parents-who-carpool-with-kids-800524611.aspx For those who carpool with kids often, finding the right vehicle to buy can be a challenge. Many don't know what to look for when buying a new car in general. Finding one that's best for driving around multiple kids on a daily basis adds to this challenge.

Edmunds.com, though, states car buyers should look for a handful of features that could make their lives easier and safer when carpooling.

Safety

Researching a vehicle's safety ratings and reviews is crucial when buying a new car even if shoppers don't plan on carpooling, the source says. However, those who intend to carpool should especially make this feature a top priority.

Some safety measures that a carpool vehicle should have include side-impact airbags and good braking ability. According to Edmunds.com, SUVs are generally at the highest risk of rolling over. Minivans, though, typically have just as much space as SUVs and are a safer bet than any other large car, the source states.

Space

Though a driver may only have one or two children they plan on carpooling, Edmunds.com states they should be thinking long-term with their purchase. In a few years, their infants will turn into teenagers, and if they plan on keeping the car for many years that means they must plan appropriately. Having plenty of space is something buyers should carefully consider when making their purchase.

Convenience

When dealing with multiple children, it can be a difficult task for parents to load and unload them and their belongings into a car on a daily basis. This is why Edmunds.com recommends buyers look for convenience features, such as key-controlled doors, which open and close at the click of a button, when purchasing a new vehicle.

A number of minivans today come with bonus features in the backseat to entertain kids, including televisions and gaming consoles, as well as refrigerators, which could come in handy for long road trips. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/which-features-help-parents-who-carpool-with-kids-800524611.aspx Tue, 07 Jun 2011 11:32:23 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/cheap-used-car-prices-may-be-hard-to-find-but-theyre-out-there-800521742.aspx Over the past several months, numerous reports have been released detailing how difficult it may be for motorists to buy a used car at a reasonable price. There are several reasons for this, including rising gas prices, higher demand for fuel-efficient vehicles, and supply shortages for standard models among some used-car dealers.

But as a recent article from the Chicago Tribune details, there are still ways to get a used vehicle at a discounted price.

New models drive down price for older ones

Some car models of last year are newly designed this year. Because people tend to want to buy models that are more up-to-date, Mark Scott of AutoTrader.com tells the paper used-car shoppers may be able to find an inexpensive used model.

Scott cited the Honda Civic as an example of a car that has a new design, but he told the Tribune used-car shoppers should be able to know if a model has a new design simply by looking at a used model versus this year's. Odds are good if the design is very different, the older model will have a lower sticker price.

Speaking of the Honda Civic, there may likely be a greater supply of older Civics over the next few months compared to new ones. In a recent statement, Honda Motor Company said its North American manufacturers would be producing at 100 percent of capacity by August for all models, the exception being the Honda Civic. As with many other foreign automobiles, Honda was forced to cut back production due to the earthquake that hit Japan in March.

Older Toyotas scored well in dependability tests

Toyota was another Japanese automaker forced to cut back production, but columnist Keith Griffin told the paper used Toyotas are plentiful and some of the more dependable vehicles on the market today. Citing a vehicle dependability survey conducted by J.D. Power and Associates, Griffin says three-year-old Toyotas fared the best when compared to other 2008 non-luxury brands.

Car rental companies sell used cars for cheap

Finally, the Tribune says used-car shoppers should not forget to check rental car websites' listings, as they may sell used cars for a reasonable rate because of how frequently they're used. However, the paper says because the vehicles are generally properly cared for, maintenance may not be an issue.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/cheap-used-car-prices-may-be-hard-to-find-but-theyre-out-there-800521742.aspx Thu, 02 Jun 2011 13:19:10 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/test-driving-more-than-one-car-may-be-the-best-way-to-shop-800520714.aspx When looking to buy a new car, some may enjoy their first test drive and decide not to get behind the wheel of any other cars on their car-buying journey. Though they may like that particular car, Edmunds.com suggests car buyers test drive multiple cars at multiple dealerships to find the best fit.

It may take some time to find the right vehicle, but the source says it can be a considerable help to understand what different cars feel like on the road by taking them out for a spin.

Taking a test drive vital to process

Many people view car buying as an arduous, time-consuming task they want to complete as soon as possible. Because of this mindset, Edmunds says these people often don't end up buying the appropriate car and for an appropriate price.

Impulse buying may be OK for groceries, but according to Edmunds, it could turn out to cost someone financially should they buy a car they didn't test drive.

Check out multiple dealerships

Some drivers become so happy with their current car they decide they will only buy from that manufacturer. However, Edmunds states basing a car purchase on reputation alone can be dangerous, as it's common for auto manufacturers to alter a vehicle model over time. So, the 2004 Camry may have been a reliable car, but it may feel different to drive the 2008 version of that model, the source says.

This is why test driving is a critical factor of car buying, according to the site. If one doesn't know much about competing car companies and the models they offer, the source suggest buyers research them to see if they offer any models similar to the one they currently own.

Once a buyer has determined other viable choices for a new car, Edmunds says they should visit those dealerships and request to test drive them. It can often be a drawn-out process, but the source recommends due diligence when trying to find the right fit.

Inspect the cars properly

If a buyer has narrowed down their choices to a select few vehicles, Edmunds states they should inspect each car closely during additional test drives, as this may help them figure out which one is best. Buyers should check any factors which are important to them in a car, such as braking, turning, noise and features. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/test-driving-more-than-one-car-may-be-the-best-way-to-shop-800520714.aspx Wed, 01 Jun 2011 12:36:07 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-prices-increase-due-to-earthquakes-effect-on-japanese-automakers-800520707.aspx Buying a new car may not be the best decision this year, as a diminished supply of cars supplied from Japanese automakers, such as Toyota and Honda, has had a considerable effect on car prices, according to the Los Angeles Times.

A number of dealerships throughout the U.S. have raised prices on cars for sale due partly to a lower-than-normal number of vehicles available on the market, the paper states.

Auto experts advise consumers to wait to buy

As the auto market has shifted in the favor of dealers, some analysts told the Times waiting until early next year to buy a new car may be the best decision from a financial standpoint.

"If you don't have an immediate need, you are probably better to wait and figure out where the market is headed," Jesse Toprak, an analyst with TrueCar.com, told the paper.

Jeremy Anwyl, chief executive of Edmunds.com, shared a similar view, telling the paper prices before the earthquake were much more affordable than they are today, and it may be in consumers' best interest to wait until prices drop.

Toyota, Honda operating at low capacity

Typically popular models from top Japanese automakers Toyota and Honda—such as Toyota's Camry and Honda's Civic—have decreased in production substantially since the earthquake. This lack of production could bode well for American carmakers, the paper states.

Companies such as GM and Ford have hiked sticker prices for a number of their models, according to the Times. These companies, as well as many other manufacturers, have also cut down on discounts for new cars and raised interest rates for loans.

"Dealers charging a few hundred dollars more is not as bad as manufacturers cutting incentives by $1,000 or $1,500," said Anwyl. "That's just huge."

Earthquake not only factor in price increases

While many attribute the effects of the earthquake to rising car prices, and in turn, lower sales, the paper says the auto industry has seen sales decline for the past few years.

Prices began to increase for cars in 2008, the newspaper states, and 2 million fewer Americans bought new vehicles in 2009 than the year before. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-prices-increase-due-to-earthquakes-effect-on-japanese-automakers-800520707.aspx Wed, 01 Jun 2011 12:31:45 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/used-vehicles-appreciating-in-value-800519333.aspx When people consider selling a car privately, they typically don't expect to get more than what they spent to buy it brand new. But according to AOL Autos, there are several models worth more today used than last year when they just came off the showroom floor.

This may be due to a variety of factors, including used car dealers carrying fewer vehicles on their lots, rising gas prices and supply shortages as a result of the earthquake in Japan this past March.

While this may be bad news for people looking to find a deal, it's good news for people who are selling a used vehicle, as it's an indication used cars are appreciating in value.

But the source says some vehicles are appreciating more dramatically than others.

Used Priuses, Sonatas and Souls demanding top dollar

Citing Kelley Blue Book, AOL Autos says the Toyota Prius, Hyundai Sonata and Kia Soul are among the vehicles with asking prices higher than they were several years ago. According to KBB, the Toyota Prius is worth $2,555 more today than in 2010, while the Hyundai Sonata and Kia Soul are worth $855 and $60 more, respectively.

Jetta, Cube, Tucson and Fit also selling high

Four other foreign-produced cars are also increasing in value. Based on data collected by the National Automobile Dealers Association, AOL Autos reports the Volkswagen Jetta, Nissan Cube, Hyundai Tucson and Honda Fit are worth more now used than they were last year new. NADA says the sticker price for a used fuel-efficient Honda Fit is $1,070 more today than in May 2010.

Though savvy car shoppers may be able to find a used car for a reasonable price, KBB reported earlier this month used vehicles are more expensive now than they have ever been. Fuel-efficient models have seen the most dramatic increases. However, Alec Gutierrez, manager of vehicle valuation for KBB, says used car values may soon drop if gas prices fall.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/used-vehicles-appreciating-in-value-800519333.aspx Tue, 31 May 2011 14:00:29 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/tougher-to-find-a-new-car-for-less-800519146.aspx In May, retail sales of new vehicles are projected to total 850,000, according to J.D. Power and Associates. This translates to an annual seasonally adjusted selling rate of approximately 9.6 million units, which is a major drop from prior months' sales. From January to April sales totaled 10.7 million, the New York Times reports.

"Uncertainty is the driver of mounting risk to the forecast for light-vehicle sales in 2011, as gas prices hover at or above $4 per gallon and inventory is at very low levels in the small car segments," John Humphrey, J.D. Power's senior vice president of automotive operations said. "However, the pace of the recovery set in the beginning of the year is expected to resume during the second half of 2011."

Why aren't people currently buying?

The average price of a vehicle has seemingly never been so high, but when inflation is factored in, they are actually below record highs, according to the newspaper. But experts worry "sticker shock" may make shoppers less likely to buy a new car, stalling projected growth in the market.

This drop off in sales could also be attributed to the fact gas prices are hitting $4 across the country, and the earthquake in Japan caused an interruption in the production of certain vehicle parts. Toyota, Honda and Nissan are all stationed in Japan so the interruption in their overall manufacturing has caused the price of the current inventory to rise.

The number of vehicles on the market may also be causing prices to rise, the paper reports. With newer models and more options available, dealers may not need to offer as many incentives to get people into the showroom.

Average cost of a new car rising

The average cost of buying a new car in April was $29,602, the Times reports. This is an increase of $324 from March. Experts believe the increase is directly related to demand. Vehicles such as the Chevrolet Cruze, Ford Explorer and Jeep Grand Cherokee are currently in short supply because they are so popular. With fewer vehicles on the market, dealers can charge more for them, according to the paper.

"The pricing is more of a symptom of lack of supply than anything else," Jim Farley, Ford’s head of global sales marketing, told the news source. "But it is affecting the industry’s volumes."

Automaker incentives also lowered

As Japanese companies struggle to recover from the earthquake's destruction, they have also pulled back on incentives offered to buyers, the Times reports. Incentives averaged $2,320 per vehicle in April, which is $370 less than a year ago. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/tougher-to-find-a-new-car-for-less-800519146.aspx Tue, 31 May 2011 12:11:59 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-buying-mistakes-for-consumers-to-avoid-800518714.aspx Car buying requires a considerable amount of effort and knowledge, according to Forbes. The source states many buyers often don't do their research or understand the ins and outs of the process well enough to find the best deals or the right vehicles. They may end up paying too much for a car that may not be worth it.

While mistakes can happen to anyone looking to buy a new car, the news source says there are a few common blunders car buyers should be aware of in order to avoid making the same error.

Don't visit a dealership too often

Though going to a dealership is considered essential to the car buying process, Forbes says buyers shouldn't over-do it by stopping by the same dealership many times. Doing so may give salespeople at the dealership the idea you are definitely going to buy a new car there, which provides them with leverage.

"That's a good way to accidentally buy a car," Joe Wiesenfelder, a senior editor for Cars.com, told the source. He added a salesman can put lots of pressure on buyers in different ways, so avoiding this issue could save a buyer from overspending or buying the wrong car.

Have confidence when visiting dealership

Many car buyers aren't well educated about automobiles, including what prices are considered good values and how to inspect a car. But, Forbes states learning as much as one can about the process is vital to ensuring the appropriate car is purchased.

David Sargent, vice president of automotive research for J.D. Power and Associates, told Forbes, "Spending more money doesn't necessarily mean that a car will be more durable. There are some very good, very durable, inexpensive cars out there and not so good, not so durable, expensive vehicles."

Unforeseen car expenses such as auto maintenance fees, car insurance and gas mileage should be taken into consideration when looking for the right car, the source states. Buyers who rush the process could end up spending more money than they planned. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-buying-mistakes-for-consumers-to-avoid-800518714.aspx Tue, 31 May 2011 07:30:49 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-buying-tips-for-2011-800518711.aspx While 2011 may not be the best year to buy a new car, due in large part to rising automobile prices, the Los Angeles Times states buyers can still find good options on the market for reasonable prices.

Check out cars with incentives

According to the paper, many auto dealerships decide to slash prices on their inventory for a number of reasons. Some dealers mark down vehicles which have been on the lot for a substantial period, while others offer discounts to get cars off their hands and make room for newer models.

Finding these incentive-laden deals requires some effort—the source recommends searching for them online first—but buying a car with a reduced price rag could save a buyer a considerable amount of money that could be saved for other vehicle expenses, such as auto insurance or car maintenance.

Consider buying big

One of the most popular car buying trends today is to purchase smaller, more fuel-efficient vehicles. The catch with these cars, though, is that prices for these vehicles are rising. Due to the increase in cost, the Times recommends buyers look for bigger models.

Though they may end up costing drivers more at the pump, the newspaper states the gap between costs for smaller cars and larger models has become so close that buying a larger vehicle may end up becoming a good value for buyers who need lots of space, such as those with families.

However, the source says prices for larger cars, such as vans, trucks and SUVs, likely will rise by year's end, so finding an affordable deal on them this summer may be the best time to buy one.

Look at all brands

More so than other consumers, car buyers tend to be loyal to their vehicle brands, according to the newspaper. Looking around at cars offered by a variety of manufacturers, though, will likely yield the greatest deal for buyers.

Many U.S. drivers enjoy buying foreign cars, the source states. American-made vehicles, though, may provide buyers with equal quality. For instance, Ford and GM offered some new models in the past few years which are more fuel-efficient and come with a lower cost than similar-model foreign cars. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-buying-tips-for-2011-800518711.aspx Tue, 31 May 2011 07:27:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/top-new-car-technologies-800518708.aspx Though self-driving or self-cleaning cars may be a few years away, Edmunds.com states there are numerous models currently available loaded with innovative new technologies. From touch pads to GPS, some modern automobiles come with a variety of new features to enhance the driving experience.

While these technologies can aid people while driving, maintaining focus on the road is essential to avoid getting into an accident.

Audi MMI Touch

Edmunds says one of the premier new technologies found in any model made in 2010 is Audi's MMI Touch screen, found in the 2011 Audi A8. The source states the MMI Touch allows drivers to perform a number of helpful functions, such as trace directions on a navigation pad, as well as scroll through contact lists for their Bluetooth phones.

Also, the MMI Touch comes with a voice activation feature, allowing motorists to give commands without ever having to take their hands off the wheel.

Chevrolet Volt OnStar MyLink App

GM unveiled a smartphone application through OnStar called MyLink for its numerous brands, including Buick, Cadillac and Chevrolet, which allows car owners to use their phones as remote controls to perform some helpful tasks. Owners with these apps can lock and unlock their doors, locate the vehicle in a crowded parking lot, and start the car's engine.

Those who own the Chevrolet Volt can use the app for other purposes, Edmunds says, such as checking on the vehicle's battery levels.

Infiniti Eco Pedal

Infiniti has introduced fuel-efficient car technology to some of its models. The Eco Pedal, for instance, aids motorists by helping them avoid using excessive gas while driving. This special gas pedal pushes back when drivers slam on it too much to let them know they are wasting too much fuel.

Edmunds says it may take owners a little while to get used to, but in the long run, the Eco Pedal could end up saving them substantial amounts of fuel and money. Those who choose not to use the technology can turn it off, Edmunds states.

Kia UVO

UVO, aka Your Voice, is similar to Ford's Sync feature, according to the source, which allows motorists to verbally communicate commands and view a rear camera when backing up.

Despite the wait, a number of Kia vehicles have lower average prices than some of Ford's. This could be an advantage for Kia and those looking to buy a new car that's more affordable, as it provides drivers the chance to use a feature previously only found in some higher-priced models. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/top-new-car-technologies-800518708.aspx Tue, 31 May 2011 07:22:04 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/eco-friendly-initiatives-in-place-for-world-environment-day-800516851.aspx Though buying a new car that's more fuel-efficient and creates less carbon emissions is one way to help the environment, there are numerous other ways to be more eco-friendly.

With World Environment Day around the corner, many businesses, residents and groups from around the U.S. are helping to promote these various eco-friendly measures, methods. Creating awareness about the effects the world is currently having on global warming and solutions to reducing those effects are the main reasons why WED was created nearly four decades ago.

Company challenges consumers to stop shaving

Each year, people across the nation form different programs, initiatives and events to help spread the word about World Environment Day and the issues pertaining to environmentalism, such as water and energy conservation.

A unique challenge was recently proposed by a major beverage producer, for instance, which proposes men stop shaving in the days and weeks leading up to WED in an effort to reduce water consumption nationwide. The company projects that for every day of the promotion , approximately 5 million gallons of water are saved.

Biking promoted for employees this summer

While water conservation is a key issue in regards to what World Environment Day aims to teach, another primary area the day intends to educate consumers about is the effect gas-fueled vehicles have on the world.

Numerous biking organizations and even some local governments across the U.S. have begun promoting the use of bicycles for transportation to and from work. These groups and advocates have been ramping up their promotional efforts with both WED approaching and Bike to Work Day occurring on May 20.

And with gas prices reaching near-record high prices—$4 a gallon in some parts of the country—advocates say that's even more of a reason to pedal to work this summer.

"People get all the reasons to bike—they're just not sure it can work for them," Andy Clarke, president of the Washington, D.C.-based League of American Bicyclists, told the Courier-Post in New Jersey.

According to research from the Leisure Trends Group, many Americans appear to be favoring eco-friendly transportation this year, as bike sales were up 29 percent in the first quarter of 2011 from the same period a year earlier. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/eco-friendly-initiatives-in-place-for-world-environment-day-800516851.aspx Thu, 26 May 2011 15:19:39 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/gas-prices-not-keeping-motorists-off-the-road-but-influencing-vacation-choices-800516666.aspx A new survey is revealing while gas prices aren't keeping people off the roads this summer, fuel costs are influencing how, where and in what manner they travel.

According to a study conducted by TripAdvisor, 86 percent of respondents said they are planning a vacation this summer—that's up 3 percent from last year.

Vacationers 'undeterred' by gas prices

Karen Drake, senior director of communications for TripAdvisor, said the findings reveal how committed Americans are to vacation getaways.

"Time and time again we see that U.S. travelers are undeterred by outside influences when it comes to summer travel," said Drake.

But gas prices are still something travelers are mindful of, and the survey findings suggest they may be influencing the manner in which people make their plans.

For instance, approximately one in five respondents—18 percent—said they will pursue an alternative mode of travel if gas prices hit $5 per gallon. That figure increased to 38 percent if the cost of gasoline goes beyond $5, according to the survey.

Survey: 25 percent restricting travel to 200 miles

The survey also found gas prices were leading respondents to pursue getaway destinations closer to home in an effort to save fuel. Nearly one in four were planning on restricting their miles traveled to 200 miles one-way.

But for some, the price at the pump is too much, leading travelers to opt for a plane over a car. For instance, for people's Memorial Day plans, the survey found 35 percent said they were travelling by plane, up from 2010, when 29 percent said they would fly.

Gas prices to reach $5 by Memorial Day? Maybe not

Throughout much of the winter, industry analysts were predicting gas prices to reach $5 a gallon by the last weekend of May, but recent reports indicate prices may drop by that time.

Multiple reports indicate the price of self-serve regular gasoline could drop 10 cents by May 21 and another 20 cents by May 28.

But industry analysts aren't convinced low prices are here to stay. In a research note obtained by the Christian Science Monitor, economist Gregory Daco of IHS Global Insight wrote, "Prices are generally stickier on the downside, meaning it would take a sustained period of lower commodity prices for the price pressure to alleviate."

As of May 16, the price for a barrel of oil had fallen to $97.37 on the New York Mercantile Exchange, the lowest cost for petroleum since May 6, 2011.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/gas-prices-not-keeping-motorists-off-the-road-but-influencing-vacation-choices-800516666.aspx Thu, 26 May 2011 13:05:36 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/travel-website-suggests-memorial-day-getaway-destinations-800515607.aspx Memorial Day Weekend traditionally signals the start of the summer driving season. Due to economic circumstances and high gas prices many families who were originally planning long road trips are staying closer to home.

Nevertheless, Darren Frei, editorial director for travel advice website ShermansTravel.com, believes driving traffic will be high as web traffic has skyrocketed.

"People may not be taking as long a trip—either in terms of miles from home or the number of days—but they are most definitely going to take vacations this summer," said Frei, in an interview with Advertising Age magazine." They had a pent-up need to travel after a rough economy in 2008 and 2009; it started picking up last year, and we've noticed an increase in traffic to our pages this spring that suggests it's going to explode this summer."

With these people in mind, ShermansTravel published a list of some exciting destinations, which may also serve as a family budget planner, as all are relatively inexpensive.

Austin, Texas

The travel advice website says Austin, Texas, is the ideal place for families because of all that's going on there Memorial Day Weekend. The 300 days of sun a year make it a great travel destination any time of year, but ShermansTravel says the last weekend in May is a particularly good time because of all the activity which occurs on Austin's iconic Congress Avenue, such as the Capital of Texas Triathlon.

Yellowstone National Park

Yellowstone National Park is another getaway the website says families should consider. Located between Montana and Wyoming, Yellowstone is home to some of the country's most eclectic array of wildlife, such as elk, grizzly bears, wolves and bison. It also features what is perhaps the country's most well-known geyser—Old Faithful—which erupts roughly every hour and a half.

Chicago, Illinois

But if wildlife doesn't strike a family's fancy, ShermansTravel says Chicago may be a good fit. The architectural design of the buildings, the city's annual Memorial Day Parade and legendary Wrigley Field makes Chicago an ideal Memorial Day getaway, according to the website.

Other destinations ShermansTravel suggests visiting are Hilton Head, South Carolina; Palm Springs, California, and Washington, D.C.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/travel-website-suggests-memorial-day-getaway-destinations-800515607.aspx Wed, 25 May 2011 13:06:04 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/best-cars-to-drive-in-urban-settings-800514447.aspx Citing Census Bureau statistics which showed more than one in 20 U.S. residents lived in one of the country's 50 most populated cities in 2009, Cars.com says the need for well-made cars suited for urban settings is a must in today's auto market.

Specific features, such as fast braking, fuel efficiency and adequate size, play a substantial role in whether a vehicle is ideal for city use, the source states.

2011 Mini Cooper

The website's "Ultimate Urban Car" isn't a bulky SUV or CUV, but rather a convertible. The 2011 Mini Cooper tops the source's list as the premier car for urban dwellers to drive, as it comes in at just more than 12 feet in length and has rear parking sensors—ideal for parallel parking situations.

Additionally, the car's small frame and "nimble handling," as Cars.com puts it, provide it with succinct advantages over other vehicles for city driving, which can be unpredictable at times. Plus, the roof can come off during warm months, providing motorists with something many other urban cars don't have.

The Mini Cooper gets a better-than-average 28 to 29 miles per gallon in the city, according to the site.

2011 Chevrolet Cruze

With solid fuel efficiency, a comfortable interior and a high-quality suspension, the Chevrolet Cruze is also well suited for navigating city streets, Cars.com says. One advantage the Cruze has over the Mini Cooper is size, as it can fit five and has a larger trunk. The vehicle gets between 22 and 28 MPG in the city. And it has a low retail cost of around $17,000, according to U.S. News and World Report.

2011 Ford Fiesta hatchback

Another five-seater with good mileage is Ford's Fiesta hatchback, which Cars.com states gets nearly 30 MPG and maneuvers better than most vehicles on the market. With a top-notch suspension and sturdy frame, potholes and other road hazards likely won't be an issue for people who own the Fiesta.

Though it may not be an advantage for city driving over other models, per se, the source says the Fiesta hatchback comes with the Sync system, which allows drivers to integrate their smartphones and MP3 players. All drivers have to do is say the name of the band or song they want to play and Sync can play it.

2011 Honda Fit

Though it may look minuscule, Cars.com says the Honda Fit can pack a lot more than one might think. With good mileage—about 27 or 28 MPG in the city—and a light feel behind the wheel, the source says many drivers would likely enjoy owning the Fit. A bonus feature in the vehicle is the ability to flip the backseat down to make more room for cargo. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/best-cars-to-drive-in-urban-settings-800514447.aspx Tue, 24 May 2011 12:54:36 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/female-friendly-vehicles-800514438.aspx Though many may think men are the primary car shopper, that's not the case. According to Forbes, two-thirds of all U.S. auto purchases are made by women, and eight out of 10 vehicle purchases are heavily influenced by females.

Jesse Toprak, vice president of industry trends and insights at TrueCar.com, told the source what most women are looking for in car when they go shopping. "Women car buyers are more cost-conscious and purchase fuel-efficient vehicles," she told the source.

2011 GMC Acadia

With costs and fuel efficiency in mind, Forbes states women may not find a better value than the GMC Acadia. The vehicle comes with standard stability control, OnStar navigation system and XM Radio. Additionally, it gets 17 miles per gallon in the city and 24 mpg on the highway. Running about $31,000, this car may be the ideal option for female buyers looking for a powerful SUV with good gas mileage.

2011 Kia Optima Hybrid

Women who want a more environmentally friendly option, Kia's Optima Hybrid could be the right choice, Forbes says. The Optima is Kia's first hybrid vehicle, and features a lightweight lithium polymer battery with a 4-cylinder engine. This mid-sized sedan gets 36 mpg in the city and 40 on the highway, and costs around $26,000.

2011 Hyundai Tucson

Coming in just below $19,000, the Hyundai Tucson is another recommended car for women from Forbes, as it features optional six-speed transmission, all-wheel drive, traction control and hill-start assist, all of which help make driving the car a smooth experience.

The car gets 20 and 27 mpg in the city and on the highway, respectively, which Christine Overstreet, executive director of Heels and Wheels, an organization which promotes women's interests in the automobile market, told Forbes is a plus in the CUV market.

"When I look at midsize SUVs, I think, 'Oh that's kind of nice,' but then I think, 'Ugh, I want to get more than 20 miles per gallon!'" Overstreet told the source. "And that's where the CUVs are good."

2011 Mitsubishi Outlander Sport

Few SUVs on the market offer as many unique features as Mitsubishi's Outlander Sport, according to the source. The car offers high-intensity headlamps, climate control with a pollen filter, heated seating and USB ports, which can be a good feature for those who want to charge their smartphones while driving. The vehicle sells for approximately $18,500 and gets 24 mpg in the city and 31 on the highway, making it relatively fuel-efficient for its size. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/female-friendly-vehicles-800514438.aspx Tue, 24 May 2011 12:49:23 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/gas-prices-trending-downward-as-fuel-efficient-car-activity-picks-up-800513495.aspx With gas prices showing no signs of letting up lately, many industry insiders were predicting the cost of self-serve regular would average more than $5 per gallon by the early summer. But with oil prices declining to their lowest levels in two months, those projections may have been a bit overstated.

Barrel of oil below $100

As of May 13, crude oil futures dropped to $97 a barrel, just weeks after the cost was well over $100. Because the drop has been so precipitous, AOL Autos reports that some analysts believe prices could drop to $3.75 by Memorial Day and $3.50 by July.

Up to now, however, there's been little to suggest prices would soon drop, and motorists have been looking for gas saving tips . Many have bought more fuel-efficient cars. Several automakers saw increased sales activity in their gas-sipping lines as a result.

Honda Fit purchases up 73 percent

For example, AOL Autos reports Honda saw a 73 percent increase in purchases of their Fit model compared to April 2010, while the Ford Fiesta, Chevy Cruze and Hyundai Elantra also outperformed last year's totals.

Other cars that performed well in April were vehicles that use very little gas, if any at all. Nissan reported that for the first time since it was introduced last December, the electric Leaf outdid the Chevy Volt in April, and the Toyota Prius hybrid was sold to nearly 12,500 car buyers.

Cars.com: Electric vehicles outdo competitors

The combination of rising gas prices and increased popularity in fuel-sipping models led to a Cars.com study comparing electric, hybrid, and traditional gasoline models to see which ride was the most economical. Using a variety of measuring points like the cars' listing price, miles per gallon, electric range, and whether or not the vehicle contained a tax credit, Cars.com determined electric vehicles—like the Chevy Volt and Nissan Leaf—were best, followed by fuel-efficient gas models like the Ford Focus.

Will fuel-efficient purchases continue?

Now that prices at the pump appear to be going down, however, AOL Autos says demand for hybrids may fall as well. But Paul Appleton, a San Diego-based market researcher who's familiar with consumer buying trends, tells the source gas prices have been high for so long motorists may be skeptical of the price drop.

"There is enough information in the marketplace for consumers to know that we are probably going to revisit $4.00 and $5.00 gas again and again, so they are looking at fuel economy in the long term, not just the short term."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/gas-prices-trending-downward-as-fuel-efficient-car-activity-picks-up-800513495.aspx Mon, 23 May 2011 13:59:11 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/increased-speed-limits-could-be-burdensome-for-many-peoples-gas-expenses-800513468.aspx Though many U.S. drivers are selling their gas guzzlers and buying used cars that are more fuel-efficient to save on gas expenses, AOL Autos states doing so may not be worth it.

According to the source, as many parts of the nation increase speed limits, gas may become an even bigger problem for many drivers in terms of cost.

For instance, AOL notes how Texas legislators are considering raising the speed limit on some of the state's rural highways to 85 miles per hour. This would force motorists to accelerate more and, in turn, use gas at a quicker rate.

Some drivers concerned about safety

As speed limits elevate in many areas of the nation, AOL says a number of drivers are worried about safety.

Eduardo Rodriguez, a New York City resident, told the source that he tries to slow down to conserve fuel and reduce the risk of getting into an accident when driving.

"But today, it's always hurry, hurry, hurry everywhere you go," he told AOL. "Everybody's gotta be there yesterday, and if you do the legal speed limit of 55 or 60 MPH, people tailgate you or beep their horn. You can't obey the law even if you want to without getting grief on the highway."

This increase in tailgating could lead to dire consequences for some drivers. Statistics from the Insurance Institute for Highway Safety state high-speed crashes oftentimes completely crush a vehicle's frame, leaving little survival space for drivers anywhere in their car.

Commercial drivers impacted

According to AOL, the average driver isn't the only one being affected by the speed limit changes. Commercial vehicle drivers are also feeling the effects of changes to limits nationwide, which has caused a high number of them to slow down, the source states.

Given the well-known history of long-haul truckers who pay close attention to their gas expenses while on the road, AOL states reduced speeds may be able to save these motorists some more money, but might hamper some of their delivery deadlines.

Study shows decreased speeds help save lives

Citing a report published in the Transportation Research Record, AOL states a 1 percent reduction in driving speed lessens crashes resulting in minor injury by nearly 2 percent, serious injury by nearly 3 percent and fatality by 4 percent.

Though these statistics may show the benefits of driving slow, Christopher J. Murphy, chairman of the Governor's Highway Safety Association, told the source drivers don't appear to be reducing speeds at all.

"However," he said, "given the extremely high gas prices and life-saving benefits of slowing down, we urge the public to ease off the accelerator."

While car drivers continue to travel at high speeds, AOL states many commercial truck drivers have become more fuel-efficient and are slowing down considerably on average. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/increased-speed-limits-could-be-burdensome-for-many-peoples-gas-expenses-800513468.aspx Mon, 23 May 2011 13:41:46 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/despite-consumer-efforts-gas-prices-continue-to-skyrocket-800512441.aspx With the price of gasoline teetering at $4 per gallon, gas saving tips aren't hard to come by. From traveling fewer miles to purchasing fuel-efficient vehicles, working from home more often to driving in cruise control, everyone is doing what they can to pinch pennies at the pump.

There have even been calls for mass boycotts through social media websites like Facebook and Twitter.

Social media users organize 'gas outs'

Last month, Facebook users attempted to organize a nationwide gasoline boycott on April 15, the theory being that if everyone refrained from filling up on that day, gas prices would drop because supply was so high.

Mass gasoline boycotts aren't without precedent. As AOL Autos recently documented, a similar "gas out" was conducted in April 1997. The event bore some fruit, as prices at the pump tanked 30 cents overnight, according to the website.

While it's not known how many people actually participated in this year's version, it evidently didn't work as well. According to the gas-tracking website GasBuddy.com, as of May 3, the average price of self-serve regular had increased 1 cent overnight, 31 cents in a month.

But even if the recent boycott did lead to a drop in prices at the pump overnight, AOL Autos reports the decline would have been momentary because of all the factors which affect gas prices.

Several factors contribute to gas prices

"What you pay per gallon at your local gas station is based on a complex combination of what goes into finding and refining crude oil, the operational costs of the gas station and, of course, state and federal taxes," said the automobile news website in a recent article. "Because of this, one day of low gasoline sales in the United States simply is not going to disrupt that equation in any significant way."

Another factor which industry analysts say traditionally affects gas prices is declining supply. And as a recent report from the Department of Energy indicates, for the tenth consecutive week, gasoline supply in the U.S. has been falling.

However, Consumer Affairs magazine said the drawdown in gas stockpiles is not necessarily due to more people using gas but rather something called demand destruction. This economic term is generally defined as a permanent downward shift in demand away from a commodity, such as oil.

Whatever the ultimate reason is for rising gas prices, according to GasBuddy.com gas prices in 14 states are already averaging more than $4, with Hawaii motorists spending the most at $4.55 for a gallon of self-serve regular.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/despite-consumer-efforts-gas-prices-continue-to-skyrocket-800512441.aspx Fri, 20 May 2011 12:39:54 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/experts-say-consumers-should-be-ready-to-deal-with-high-gas-prices-this-year-800512276.aspx In addition to getting a car tune up before summer begins, U.S. drivers may also have to deal with high gas prices through the season. But, having experienced high gas prices year-round in 2008, USA Today reports many Americans are likely more prepared to deal with the elevated prices this year.

Economic analysts told the news source Americans should be able to save money by cutting back on driving and using their vehicles more wisely than in 2008, when gas prices were above $3 per gallon throughout the year.

"In 2008 we spent 12 months with gas above $3," David Portalatin, of NPD Group, told the paper. "Nearly half reduced their gas consumption by consolidated shopping trips, 29 percent cancelled or modified vacations, [and] 25 percent found alternatives to driving. The more sustained price spike, the greater the impact."

Retailers could be affected by high prices

Although gas prices may not affect middle- and upper-class drivers as much, the paper states lower-class consumers may be forced to reduce the amount they drive substantially, in turn affecting retail stores such as Wal-Mart.

Retail analyst Rich Hastings told the newspaper retail stores with low-income clientele may have to slash prices considerably to make up for the potential loss of business due to high gas prices.

Conversely, he states online retailers, such as Amazon.com and Overstock.com, may gain from the high gas prices, as more consumers may wish to purchase items which can be shipped to them.

James Matthews, a business parcel shipment consultant with Source Consulting, told the paper, "The trickle down can be considerable. A lot more people are buying online. Companies can only absorb that charge for so long without having to increase the prices somewhere."

Shipping fuel surcharges not projected to be as hefty as in 2008

As oil futures eclipse $100 per barrel as they did in 2008, the newspaper states package carriers including FedEx and UPS likely won't increase their shipping fuel surcharges. According to the paper, in April 2008, these surcharges averaged around 20 percent. This year, they are expected to hover around 11 percent.

By avoiding to compound these surcharges, the paper says customers who purchase items requiring shipping will feel less of a sting in their wallets this year. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/experts-say-consumers-should-be-ready-to-deal-with-high-gas-prices-this-year-800512276.aspx Fri, 20 May 2011 09:34:58 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/gas-prices-trending-downward-as-fuel-efficient-car-activity-picks-up-800510299.aspx With gas prices showing no signs of letting up lately, many industry insiders were predicting the cost of self-serve regular would average more than $5 per gallon by the early summer. But with oil prices declining to their lowest levels in two months, those projections may have been a bit overstated.

Barrel of oil below $100

As of May 13, crude oil futures dropped to $97 a barrel, just weeks after the cost was well over $100. Because the drop has been so precipitous, AOL Autos reports that some analysts believe prices could drop to $3.75 by Memorial Day and $3.50 by July.

Up to now, however, there's been little to suggest prices would soon drop, and motorists have been looking for gas saving tips. Many have bought more fuel-efficient cars. Several automakers saw increased sales activity in their gas-sipping lines as a result.

Honda Fit purchases up 73 percent

For example, AOL Autos reports Honda saw a 73 percent increase in purchases of their Fit model compared to April 2010, while the Ford Fiesta, Chevy Cruze and Hyundai Elantra also outperformed last year's totals.

Other cars that performed well in April were vehicles that use very little gas, if any at all. Nissan reported that for the first time since it was introduced last December, the electric Leaf outdid the Chevy Volt in April, and the Toyota Prius hybrid was sold to nearly 12,500 car buyers.

Cars.com: Electric vehicles outdo competitors

The combination of rising gas prices and increased popularity in fuel-sipping models led to a Cars.com study comparing electric, hybrid, and traditional gasoline models to see which ride was the most economical. Using a variety of measuring points like the cars' listing price, miles per gallon, electric range, and whether or not the vehicle contained a tax credit, Cars.com determined electric vehicles—like the Chevy Volt and Nissan Leaf—were best, followed by fuel-efficient gas models like the Ford Focus.

Will fuel-efficient purchases continue?

Now that prices at the pump appear to be going down, however, AOL Autos says demand for hybrids may fall as well. But Paul Appleton, a San Diego-based market researcher who's familiar with consumer buying trends, tells the source gas prices have been high for so long motorists may be skeptical of the price drop.

"There is enough information in the marketplace for consumers to know that we are probably going to revisit $4.00 and $5.00 gas again and again, so they are looking at fuel economy in the long term, not just the short term."
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/gas-prices-trending-downward-as-fuel-efficient-car-activity-picks-up-800510299.aspx Wed, 18 May 2011 13:25:32 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/five-vehicles-with-unexpectedly-high-gas-mileage-800509498.aspx Those looking for a new fuel efficient car may head straight to a hybrid or a compact car. However, a report by msnbc.com points out there are a number of less obvious high-mileage choices on the market consumers may want to check out.

Ford F-150

Not everyone wants to drive a pickup truck—some because they can be too big to drive, others because of their history as being gas-guzzlers. But, according to msnbc.com, Ford's latest F-150 model comes with a V6 engine, which increases its gas mileage to 20 miles per gallon. Considering pickup trucks sold just a few years ago didn't come close to being this fuel-efficient, the source states the F-150 has developed considerably more in terms of fuel efficiency than its competition.

Chevrolet Corvette

With a similar reputation to pickup trucks, many sports cars have a history of poor fuel efficiency. Bucking this trend is the Chevrolet Corvette. The Corvette gets 16 EPA MPG in the city and 26 on the highway.

Honda Odyssey

With a six-speed transmission and cylinder deactivation, which helps it run on three cylinders in order to reduce wear and tear, the Honda Odyssey is unlike most other minivans, msnbc.com states. To make up for the estimated heavy load minivans carry, Honda improved the car's fuel efficiency to 28 miles per gallon on the highway, making family getaways a little easier on drivers' wallets.

Volkswagen Passat

Unlike most other cars its size, the Volkswagen Passat comes with a diesel engine. The benefit from having a high-efficiency fuel is evident in the car's highway MPG of 43. According to the source, the Passat can drive 800 miles on a full tank, or about the distance between Philadelphia and Atlanta. A potential downside is the increasing diesel prices seen around the nation. However, msnbc.com says owners of this car will likely be filling their tanks less often than many other drivers.

Hyundai Elantra

Car buyers in the market for a compact vehicle may not do better in terms of fuel efficiency than the Hyundai Elantra, the source says, which gets 40 MPG on the highway. The Elantra's base drivetrain separates it from other compact cars regarding gas mileage, msnbc.com states. Along with a lower price tag than most other competing compacts, the source says it's little wonder why the car sells so well.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/five-vehicles-with-unexpectedly-high-gas-mileage-800509498.aspx Tue, 17 May 2011 15:32:37 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fuel-finder-smartphone-apps-helpful-for-cost-conscious-drivers-800508899.aspx With gas prices reaching considerable highs throughout the U.S., it’s important to be able to find the lowest gas prices. According to Edmunds.com, there are some fuel-finder smartphone applications that do exactly that. .

iGasUp

By downloading iGasUp, Edmunds.com states smartphone users can get up-to-date prices for gas at all stations. The application works with Google Maps to help drivers locate the 10 nearest gas stations, as well as the best prices.

Edmunds.com gives iGasUp a B, the lack of an interactive map, in which users can filter search results, makes the app less efficient than others offered. In addition, searches for gas stations outside of a user’s current location rarely return efficient results, the source states.

Fuel Finder

Edmunds.com gives this smartphone app—which can be used on iPhones, iPod Touches, and iPads—a B+ for its many features which can help motorists locate gas stations that have the best prices for fuel.

The source says the app's main screen allows users to search for gas stations by price, distance or location. Search results provide a map featuring the locations of nearby stations based on each customized search, and even shows what type of stations are close by, such as if they are pay-at-pump stations or have a convenience store, too.

By using green, red and yellow colors to indicate which gas stations have the lowest and highest-priced deals, Edmunds.com states Fuel Finder separates itself from other fuel-locating apps.

GasBook

Receiving a slightly higher grade of A-, Edmunds.com says Gasbook is a solid application, as it not only provides users with similar features to Fuel Finder, but also helps them keep track of fuel usage and expenses, as well as get directions to the nearest gas stations. Also, users can bookmark gas stations with low prices.

Additionally, GasBook allows users to share information about gas stations, such as prices and quality of service, to make it easier to find the best fuel pumps around.

Poynt

While the above applications cost between $0.99 and $2.99, the source says Poynt is offered to smartphone users free of charge—one of the reasons it received a B+.

Edmunds.com states the app is multi-purpose, as it not only finds gas stations for users, but also nearby restaurants, movie theaters, and other attractions. The source says the app also provides quick and extensive results when searching for low gas prices, and can locate hard-to-find gas types, such as E85 fuel.

Poynt is available on all major smartphone platforms. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fuel-finder-smartphone-apps-helpful-for-cost-conscious-drivers-800508899.aspx Tue, 17 May 2011 07:59:27 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/us-government-plans-to-sell-stock-in-gm-this-summer-800508897.aspx According to reports, the U.S. government may plan to sell its shares in General Motors by the end of summer, virtually guaranteeing a loss on the investment of nearly $50 billion, which it invested in the company as part of the auto industry bailout of 2009.

"Planning for the sale of our remaining GM stock is still at an early stage, and the IPO lock-up does not expire until late May," a spokesperson for the Treasury told the Wall Street Journal. "At that point, we will consider all of our options, based on our twin goals of protecting taxpayers' interests and exiting as soon as practicable."

Obama administration wants deal to happen soon

Insiders with the U.S. Treasury told the Journal President Obama wants to cut ties with GM by summer's end and allow the company to regain complete control over operations.

The stagnant price of shares may have to do with the sale as well, the paper states. Rising fuel prices, extensive management turnover and disturbances to auto production have caused the stock to decline, the newspaper says.

Investors concerned about GM management reorganization

According to Reuters, some investors in GM are worried about a potential negative effect occurring from management shuffling. The source states a new chief financial officer took over the company in April, and GM has had four CEOs since the start of 2009. The Journal reports many investors were highly concerned over the exit of former CFO Chris Liddell.

Sale expected no earlier than June

Reuters states June is the earliest date for the U.S. Treasury to sell its shares, and adds an additional sale of stock in November or December is possible, as well. Treasury Secretary Timothy Geithner has not detailed a plan yet for the prospective sale, the source states.

"Our role is to continue to deliver results and create shareholder value. It is up to the U.S. Treasury as to when they sell their remaining stake," a GM spokesman told the news source. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/us-government-plans-to-sell-stock-in-gm-this-summer-800508897.aspx Tue, 17 May 2011 07:53:02 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/study-states-transition-to-electric-vehicles-vital-for-china-800508890.aspx Stating China's high volume of oil consumption could hurt its economy, and extensive use of petroleum-fueled vehicles will continue to greatly pollute the country, ,the World Bank Transport Office in Beijing reported the nation needs to transition to electric-powered autos.

According to the report, 70 percent of the carbon monoxide and hydrocarbon emissions in Beijing originate from transportation sources. The study also states China's oil consumption is projected to increase from 7.6 million barrels per day to 11.6 million by 2020.

"Usually, we focus our urban transport work on walking, cycling, public transportation and land development to minimize auto travel, and we leave technology completely out of it," Shomik Mehndiratta, lead transport specialist at the World Bank, told the New York Times. "But all the analysis suggests that 50 percent of global carbon reductions in transportation will come from technology."

Car-charging infrastructure plans needed

According to the newspaper, some concerns for China transitioning to electric transportation include how and where to create car-charging stations and infrastructure, as well as how to get local members of the auto industry to work together.

Additionally, the paper says making electric cars affordable for the nation's residents could pose a significant challenge, as current electric-powered vehicles travel shorter ranges than petroleum-fueled vehicles, in turn potentially making maintenance costs an issue for many drivers.

Pilot projects recommended before complete overhaul approved

Prior to making the country's primary modes of transportation nearly entirely electric-powered, the study suggests Chinese officials test the use of the vehicles in pilot testing, which could include driver education programs.

"The next stage is to take the lessons learned, and put it into a more coordinated aligned roadmap," Hazimeh told the paper. "Otherwise, you face a fragmentation of solutions." http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/study-states-transition-to-electric-vehicles-vital-for-china-800508890.aspx Tue, 17 May 2011 07:44:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/motorcycles-and-scooter-sales-surge-800507315.aspx Temperatures are on the rise, the days are getting longer, and revving motorcycle engines are heard throughout the day. But if it seems like there are more motorcycles on the roadways than ever, which may be the case.

Scooter sales are up 50 percent

According to the Motorcycle Industry Council, people are snapping up motorcycles and scooters at a prodigious rate. In the first quarter, the MIC reports the sales rate for major motorcycle brands increased 7.2 percent, and among scooters, the rate jumped nearly 50 percent compared to the same period last year.

What explains the bump up in sales? According to Tim Buche, president and CEO of the MIC, it likely has to do with the cost of fuel, as many people are considering motorcycle purchases one of the best gas saving tips.

"Nothing compares to a motorcycle for combining fun with saving money," said Buche. "There's no more enjoyable way to get to work and get around, and rising fuel prices have given our customers yet another great reason to ride."

Motorcycle purchases have been rising for years

Even though the dramatic surge in gas prices are fairly recent, motorcycle purchases have been steadily increasing for several years now. The MIC indicates 11 million motorcycles were used in 2009—a nine percent increase over the 10.4 million on the roadways in 2008. What's more, compared to 2003, the ratio of U.S. households with at least one motorcycle rose from 5.4 to nearly 7 percent by 2009.

Nevertheless, industry analysts believe the main motivator for motorcycle purchases is to save money on gas, and according to the USA Today, motorcycle and scooter owners' cost saving measures are paying off.

For instance, according to the paper, scooter manufacturer Vespa says 3.9 billion gallons of gasoline could be saved if just 10 percent of the nation traveled on motor scooters because the average Vespa gets approximately 75 miles per gallon.

And that's translating to higher sales for Vespa. In an interview with Fox Business, Melissa MacCaull, the vice president of the parent company of Vespa, said there's been a surge in scooter sales since March.

"In March of this year we increased 58 percent in sales over last year," said MacCaull. "Sales are increasing and we have yet to see the peak of gas prices or the riding season in the U.S."

Bottom line: because the summer is still several weeks away, even more scooter and motorcycle riders could soon be hitting the streets.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/motorcycles-and-scooter-sales-surge-800507315.aspx Fri, 13 May 2011 13:42:02 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/knowledge-is-power-when-avoiding-unnecessary-car-repair-services-800493585.aspx Quick-lube places can be convenient for simple repairs such as oil changes, but according to AOL Autos Maintenance Editor Tom Torbjornsen, repairs at these types of places are sometimes accompanied by offers of unnecessary repairs.

Torbjornsen says some of the most common service recommendations are high-mileage oil, fuel system cleaning, brake fluid flushes, transmission flushes and transfer case, or differential fluid changes.

Though these services may sometimes be necessary or helpful, they are not always needed. Torbjornsen has provided tips for how to know if your vehicle actually needs these suggested services or not.

High-mileage oil

High-mileage oil is frequently offered as a way to improve engine lubrication and inhibit the development of rust, the source says. However, the same outcome can be reached by using high-quality synthetic oils in an engine from the beginning, as the source says engine age has nothing to do with the oil required for its maintenance. Simply using quality oil is enough to keep an engine clean, and drivers shouldn't feel pressured into giving into novelty oil simply because their car has a high number of miles on it.

Fuel system cleaning

While the source does not find fuel system cleanings to be unnecessary overall, they may be better off being performed at the dealership's service provider, as quick lubes may not be fully qualified to perform this type of repair.

Brake or transmission fluid flush

Brake fluid and transmission fluid flushes are also sometimes offered unnecessarily. For brake fluid, flushes may only be required when problems with color, odor, or level have been observed and drivers should get a second opinion when transmission fluid flushes are recommended.

Extra service offers impact dealerships as well

Though Torbjornsen's advice is mostly discussed in reference to quick-lube car repair places, recent studies have shown consumer skepticism of unnecessary service is also evident in dealership repair shops and can significantly damage a consumer's perception of their auto brand's service department.

A recent survey by J.D. Power and Associates found that, when compared to other respondents, those who had experienced feeling pressured into services ranked their service experience about 140 points lower on a 1,000-point scale.

"Suggesting additional service work can actually benefit both customers and dealerships—customers may prolong the life of their vehicle, while service facilities may gain additional revenue," said Jon Osborn, research director at the company. "However, it is key for dealerships to properly train their staff in the subtleties involved in adequately explaining the necessity and value of additional services without placing undue sales pressure on the customer."

For both quick-lubes and dealerships, thoroughly explaining the procedures being recommended for a vehicle may help reduce customer anxiety, leading to better outcomes for both the mechanics and the drivers.   http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/knowledge-is-power-when-avoiding-unnecessary-car-repair-services-800493585.aspx Wed, 11 May 2011 16:15:17 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/japan-quake-projected-to-bump-toyota-from-top-production-spot-800500866.aspx Toyota Motor Co., a long-standing leader in the auto production industry, may be dethroned due to the recent events in Japan which, according to Reuters, cut the company's output substantially in March.

"Most likely, GM will produce 8 million-plus, and Volkswagen will produce around 7 million, so most likely Toyota will be third, GM will be first," Koji Endo, managing director of Advanced Research Japan in Tokyo, told the source.

Other companies expected to rise in Toyota's place

A few other major car producers—particularly Ford and GM in North America, and Hyundai in Japan—could become the biggest beneficiaries of Toyota's lack of production, Yale Zhang, managing director of industry consultant Automotive Foresight, told the source.

Investors appear confident in Hyundai in terms of production, as the company's shares increased 5.6 percent in April to their highest level ever.

Similarly, David Whiston, an analyst with Morningstar in Chicago, told Reuters GM and Ford should gain from Toyota's woes the most, as the company has had considerable success in the U.S. automobile market during the past few decades.

Honda suffering as well

According to the report, Honda may also experience similar difficulties. Production of automobiles declined 63 percent for Honda in March, and total company output was cut in half.

Officials with Honda reportedly stated earlier in April production levels wouldn't return to normal until the end of this year.

Toyota plays down expected role reduction

Despite Volkswagen’s aim to take over the top production spot from Toyota, officials with the company stated their goal is to return to stability.

"When Toyota became number one, there were no champagne corks going off here," Toyota spokesman Paul Nolasco told Reuters.

While some other auto manufacturers are predicting a marked decrease in production from Toyota, the source reports numerous experts forecast modest revenue for the company from March 2011 through the same month next year, as car buying should rise considerably.

Experts predict rebound for Japanese makers

Christopher Richter, an auto analyst with CLSA Asia-Pacific Markets in Tokyo, told the news source, "In overseas markets, consumers have choices and [non-Japanese makers] probably will take some share, but I think it is an open question if those will be sustainable or temporary share changes - my guess is that they will tend to be temporary."

Though a bounce-back for Japanese producers is expected, some auto analysts in South Korea state the drop in production could bode well for their country.

Park Jong-min, a fund manager at ING Investment Management in Seoul, told Reuters South Korean manufacturers have already seen an increase in market share. Additionally, many auto producers also plan to reduce incentives, Jong-min stated, which would reduce costs for them, as well. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/japan-quake-projected-to-bump-toyota-from-top-production-spot-800500866.aspx Thu, 05 May 2011 11:54:02 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ways-a-car-warranty-can-be-voided-800500597.aspx Though some drivers see warranties as black-and-white agreements, this is not always the case. According to Edmunds, a number of different factors can sometimes partially or completely void a car warranty, meaning the dealership that provided the agreement may not be liable to fix certain damages.

Partial warranty void

Warranties are not always voided in their entirety, but sometimes claims for a certain repair or a specific part may be denied based on a number of factors.

Neglecting a vehicle part is one reason that a dealership may refuse to replace it, even if it is under warranty. For example engines that have not had the oil changed within the recommended time frame may be denied repair under a warranty claim, the source suggests. This also applies to the use of the wrong fluids.

Additionally, having aftermarket parts or making changes to the vehicle can sometimes void parts of the warranty. However, according to Edmunds simply doing either of those things should not void a warranty entirely, and drivers who are told otherwise have recourse under the Magnuson-Moss Warranty Act of 1975. The act says dealers are required to prove that the part caused the need for repairs before being able to vacate the warranty.

Full warranty voids

Misuse of a vehicle is one of the major reasons a warranty may be voided in full, according to Edmunds. The source says misuse generally involves off-roading, racing and other activities outside of normal car operation.

Altered odometers and environmental damages caused by natural disasters may also void a warranty, the source says.

Avoiding warranty problems

According to Edmunds, following a few simple steps may help drivers avoid the issue of a nullified warranty.

As a start, reading the warranty thoroughly may give drivers a good idea of what the warranty entails and what standards need to be maintained.

Also, servicing a car regularly according to the recommendation of the dealer may help avoid problems. Records may need to be maintained as proof of these service visits to back up a driver's claim, including receipts for products used in self-maintenance projects.

Finally, for those who feel their claim was wrongly denied, contacting a higher-up at the dealership may be an option for recourse, the source suggests.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ways-a-car-warranty-can-be-voided-800500597.aspx Wed, 04 May 2011 22:40:01 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-related-tax-deductions-to-consider-800499900.aspx Whether a person is an employee or owner of a company, a report by Edmunds.com states there are a number of car-related tax deductions available to workers.

"Automotive deductions and motor-vehicle-related credits may certainly help people reduce their tax bill," Anabel Marquez, IRS media relations specialist for Southern California, told the source.

By claiming some of these auto-related deductions, the source says drivers who utilize their car for work can reduce taxable income and, essentially, save money immediately or in the long-term on taxes.

General use for business

Marquez told Edmunds.com drivers who use their cars for only general business purposes can deduct all auto-related expenses come tax season. However, should they use their vehicles for personal use as well, all expenses may not be deductible.

Miles driven for work

According to Edmunds.com, motorists who use their cars for work in 2011 can claim 51 cents per mile driven on their tax returns. Of course, the source states drivers must record this information from their odometers properly, as simply estimating business miles driven would likely be disallowed by the IRS.

Additionally, drivers who don't use their vehicles for business may still deduct miles driven if they work with charities or use their cars for medical purposes, including driving to doctors' offices for check-ups.

Car depreciation

Edmunds.com says an automobile's value declines annually, and those who utilize their vehicles for work can claim a small percentage of this decrease as depreciation. To determine the deductible figure, the source advises hiring a tax professional.

Sales taxes

Marquez says state and local sales and excise tax deductions are available for drivers of new cars, which can be deducted on that year's tax return. People looking to buy a new vehicle for work purposes should speak with a tax expert to discover how much of a tax deduction they could receive.

Leasing a car

Should a driver lease a vehicle for business-related purposes, the source states they can deduct the entire lease, as well as some or all operating costs, when filing their return. As with the car depreciation and sales tax deductions, Edmunds.com suggests meeting with a tax professional to figure this out.

Aside from saving money from tax deductions, drivers who use a car for work should also be sure to get car insurance to make sure their vehicle is protected. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-related-tax-deductions-to-consider-800499900.aspx Wed, 04 May 2011 12:20:09 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/no-more-sub-10k-new-cars-800497414.aspx Those interested in buying a new car for less than $10,000 may be out of luck. According to the Wall Street Journal, the only sub-$10,000 car that was left on the market this year will be raising its price for next year's model.

The subcompact Nissan Versa was the only car remaining on the market for less than $10,000. Ringing in at $9,900, even with the $760 freight charge the vehicle was the most affordable new car a driver could buy.

However, the new 2012 Nissan Versa will be selling for $10,990, making sub-$10,000 cars a thing of the past, according to the source.

Increased buyer expectations and higher demand

According to the source, the increase in price may have been related to a number of factors.

On the one hand, it could be a reflection of an increase in buyer expectations. The source says even the sub-$10,000 version of the Nissan Versa was a "bare-bones" version of the vehicle and lacked many of the modern features drivers have become accustomed to over the years.

"Critics are quick to point out that the car is stripped down to the point where no buyer would want it and no dealer would stock it," the source says.

The source notes car buyers now expect features such as air conditioning, safety equipment and a comfortable interior - things which may have previously been considered luxuries.

However, the increase in price may also be related to a spike in the demand for subcompact cars due to their potential fuel-saving features.

A number of sources have reported that smaller cars, particularly those with 4-cylinder engines, have been gaining popularity in recent months, as gas prices in the U.S. have risen considerably.

As the average cost of fuel has increased nearly $1 per gallon from the same month last year, according to Gas Buddy, more drivers in the market for a new car may be interested in small, gas-conserving vehicles such as the Versa, giving the brand an edge in the market.

Versa performing well

Despite the increase in price, the new Nissan Versa has already received some favorable reviews and the current model of the car continues to sell well. According to the Detroit Free Press, the Versa had sold 30,355 units through March, more than popular competitors such as the Ford Fiesta and Toyota Yaris.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/no-more-sub-10k-new-cars-800497414.aspx Fri, 29 Apr 2011 16:32:09 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/volvo-to-expand-hiring-to-accommodate-new-fuel-efficient-vehicles-800497386.aspx As many car buyers shift their priorities to more affordable, practical, and dependable vehicles, a number of automakers are trying to meet their demands. A number of carmakers have rolled out vehicles with gas-saving features, as the price of fuel is on the rise.

Volvo to hire 1,000+ employees

Volvo has decided to follow suit, and in order to make the project feasible, the company announced it will be greatly expanding its hiring over the next 12 months.

"We need to expand our operations to enable development of the highly competitive and fuel-efficient products and technologies, which are part of our growth plan," CEO Stefan Jacoby said.

"This is one of the biggest recruitment projects that Volvo Car Corp. ever has carried out," said Bjorn Sallstrom, a senior vice president of Volvo's human resources. "The new engineers are needed to develop the technologies and car models, which are part of the aggressive product plan that our board and executive management team has developed."

The Associated Press reports the majority of the new hires will be research and development engineers.

Automotive industry turning around

Hiring such a large number of new employees may not have been possible a year ago at the height of the recession. According to the Associated Press, Volvo in particular struggled during the economic downturn and had to cut nearly 25 percent of its workforce. 

However, the AP says 2010 marked a significant turnaround for the company, as its global sales increased 11 percent over 2009 numbers. A number of carmakers have been reflecting more positive figures compared to the past few years, marking a potential comeback for the automotive industry. 

Fuel-saving vehicles gaining popularity

Energy efficient cars are arguably more important than ever, as gas prices continue to rise to some of the highest rates in history. According to GasBuddy.com, the price of a gallon of gas exceeded $4.25 in some parts of the U.S., as of April 27.

In addition to vehicles with gas-saving technology, smaller cars and those equipped with V-4 engines, which may inherently require less fuel, are also becoming more popular, according to recent reports.   http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/volvo-to-expand-hiring-to-accommodate-new-fuel-efficient-vehicles-800497386.aspx Fri, 29 Apr 2011 16:21:45 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/features-that-can-enhance-or-diminish-a-cars-value-800493514.aspx As anyone who's ever renovated and sold a home can attest, there are certain enhancements one can make to a property to enhance its value. The same standard applies to those selling a car.

Traditionally, the renovations and amenities are intended for enjoyment by the current owner. But Cars.com says if owners ever plan on selling their car, some upgrades are better than others. In fact, what may seem like an upgrade can actually diminish a car's value.

With the help of Automotive Lease Guide, a company that tracks the residual value of vehicles, Cars.com released a list of amenities a motorist may want to have on their car to help increase its resale value. Conversely, it also listed some of the "enhancements" that will likely diminish its worth.

Cruise control tends to increase a car's worth

With an 89 percent chance of increasing a car's residual value, Cars.com says cruise control may be the most worthwhile investment. The automotive website says used-car buyers place a lot of value in cruise control, mainly because it comes standard in so many models today, indicating the feature is likely here to stay for the foreseeable future. The remaining enhancements which are likely to lead to high returns are all features more current models may come equipped with, such as power windows, power locks, and air conditioning.

Convenience upgrades are also favorable to sellers

While upgrades that are already standard in cars are the most likely to increase a used car's asking price, Cars.com says convenience upgrades usually pay off as well. Additions such as power seats, CD changers, and tilt steering tend to increase a vehicle's worth because they make a motorist's ride more enjoyable.

Technology enhancements may depreciate a car's value

The features most likely to lead to a car declining in value—or what Cars.com calls 'The Great Depreciators'—are usually technological amenities. The automotive website says because technological advancements happen so regularly, what's the latest today is obsolete tomorrow. Cars.com pinpoints rear entertainment systems and GPS units as being among the chief 'depreciators' because the systems are replaced by newer models shortly after being released.

GPS unit sales, in general, may have seen better days. Last year, USA Today reported sales were down almost 25 percent through the first 11 months of 2010 compared to 2009, according to the retail tracking service NPD.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/features-that-can-enhance-or-diminish-a-cars-value-800493514.aspx Tue, 26 Apr 2011 15:56:05 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/nationwide-gas-surveys-point-out-where-gas-prices-are-lowest-highest-800487024.aspx From coast to coast, it's virtually impossible to find affordable gas. But several nationwide surveys are offering some gas saving tips by pointing out which states' motorists have it slightly better than the rest.

Lundberg: Lowest price for gasoline in Arizona

For instance, according to Lundberg, an independent market research company, Arizona travelers are paying the lowest average price for gas in the country at $3.41 per gallon, which is 35 cents below the national average of $3.76. The research company says the current nationwide average for gasoline is 34 cents below the all-time high of $4.11 per gallon, which was set in 2008.

But the West is also home to the state whose motorists are paying the steepest cost for gasoline, as prices in the Golden State—California—are $4.13 per gallon. But even if the cost of gasoline in the West didn't include California, the U.S. Energy Information Administration indicates that West Coast residents still pay the highest average among regions, and the lower Atlantic portion of the East Coast pays the lowest average for gasoline.

GasBuddy.com: Hawaii and California spending the most for gas

GasBuddy.com, another website that tracks gas prices nationwide, confirms Lundberg's findings that Arizona and California motorists are paying the lowest and highest rates, respectively, but says that's only the case when it comes to city averages. GasBuddy.com says Tucson, Arizona, motorists are paying the cheapest rate at $3.49 per gallon, while 14 of the 15 cities with the highest average gasoline prices are in California. At $4.33, Honolulu, Hawaii, drivers spend the most. Statewide, GasBuddy.com says Hawaiian residents pay the highest gasoline rates, while Wyoming pays the lowest average at $3.49.

Gas prices have been surging for several months now, but in the past three weeks rates have risen rather sharply, jumping 19 cents.

Interestingly, Lundberg reports the average cost of diesel is $4.09, rising 11 cents over the same time period. Diesel is less refined than unleaded fuel, but as an Exxon Mobil official recently pointed out in a column on the company's website, 5 percent of the cost consumers pay at the gas pump goes toward refining expenses.

Gas prices driving down consumer confidence

The unemployment rate reported earlier this month hinted the economy is on the mend, but a Reuters/Ipsos poll released earlier this week indicates consumer confidence in the economy is on the decline. Cliff Young, a pollster for Ipsos, said consumers' pessimism has been driven by rising gas prices.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/nationwide-gas-surveys-point-out-where-gas-prices-are-lowest-highest-800487024.aspx Mon, 18 Apr 2011 13:09:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/amid-high-gas-prices-obama-renews-focus-on-alternative-energy-800485052.aspx With gas prices skyrocketing and no signs of them letting up, President Barack Obama's administration is renewing its focus on seeking out alternative sources of energy. As such, he recently spoke at an energy conference about how his administration plans on getting more fuel-efficient cars on the road.

In an energy policy speech at Georgetown University, Obama outlined several things Americans can expect to see from the government in an attempt to lessen use of fossil fuels.

More incentives for those seeking alternative fuel

For instance, Obama said the government will team up with "private companies" to encourage a greater reliance on alternative, hybrid and electric vehicles. He also said that the American consumer would similarly benefit, should they decide to buy a fuel-efficient vehicle, saying the government will offer more cash incentives for people who buy one.

Obama also said that carmakers are already putting a greater focus on innovative products.

"Right now, there are even cars rolling off assembly lines in Detroit with combustion engines that can get more than 50 miles per gallon," Obama said.

The president said that even though one of the most encouraging forms of alternative energy resides with electric vehicles, the electricity used to generate those cars needs to be cleaner safer and healthier. To see to it that this happens, Obama pledged that his new Clean Energy Standard, which was first announced during this year's State of the Union address, will have 80 percent of America's energy sources derived from renewable sources like wind, solar, natural gas and nuclear power by 2035.

Electric vehicles are hard to find

While Obama would like a greater focus on electric cars, the Tampa Tribune reports that they're hard to come by. What's more, they tend to be expensive. According to the paper, the Chevy Volt is only selling in seven states—California, Texas, Michigan, Washington, D.C., New York, Connecticut and New Jersey—and the base model is selling for $41,000. Furthermore, the paper reports, General Motors is only making 10,000 electric models, and most of those will be going to people who have been placed on a waiting list, according to GM spokesperson Rob Peterson.

Similar to the Volt, other electric carmakers producing alternative vehicles—such as Ford's Focus electric, and Nissan's Leaf—are also keeping their production totals low. The paper reports Ford's electric model will sell in only 19 markets later this year and even though there are 20,000 pre-orders for the Leaf, only 450 have actually been sold.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/amid-high-gas-prices-obama-renews-focus-on-alternative-energy-800485052.aspx Thu, 14 Apr 2011 13:56:14 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/cars-that-may-keep-drivers-away-from-the-auto-shop-800482736.aspx One may not expect auto mechanics to dislike certain vehicles. However, a recent Chicago Tribune column highlighted the top 10 vehicles that mechanics hate the most. "The cars we hate most, as mechanics, are the cars that provide us with the fewest repair dollars," the author says. Though these vehicles may be a disappointment for car repair workers, the dependable cars could be just what drivers are looking for.

Weighing into the decision

The ranking took into consideration a number of factors, but the main concept was vehicles that infrequently need the service of mechanics, making them brands that are not lucrative for those who perform auto repairs. The list is compiled from mechanic experiences in the urban Northeast.

The affordability and availability of Original Equipment Manufacturer parts, which can be required to fix a vehicle and may allow mechanics to charge higher rates if they are expensive or difficult to locate, were also taken into consideration.

Though this is an important aspect of determining the cost of repairs, it may be a somewhat variable factor. For example, the recent earthquake and tsunami in Japan have rendered some OEM parts for Japanese auto makers relatively scarce. In the short-term, this may have increased the cost of repairs for some of those vehicles.

Vehicles chosen

A number of Toyota vehicles were selected and placed on the list, including the Camry, Corolla, Sienna and Prius. Comments on the first four vehicles were standard compliments concerning reliability, affordable OEM parts and the lack of frequent repairs. The Sienna got special notice as a minivan in particular, since, according to the source, that type of vehicle is more prone to damage.

However, the Prius was a special case, mainly due to the fact that only dealers currently service the vehicle. "The Prius is crammed full of technology, but Toyota has put plenty of effort into the layout, which is well thought out. Considering the number of components that are under the hood, the non-hybrid parts are pretty easy to access and service," the Chicago Tribune reported. "From our point of view, the Prius is terrible news for mechanics - not even the brakes wear out, thanks to the regenerative braking system."

Honda also landed on the list numerous times with the Civic, Accord, CR-V, Odyssey and Element. The ranking remarks that Honda vehicles are some of the "most reliable cars available today," and problems with them are easy to diagnose.

The Subaru Impreza and Forester also landed on the list mainly due to their reliability, particularly relative to other all-wheel drive vehicles. "Usually, [mechanics] count on making a lot of money on all-wheel-drive vehicles, thanks to all the additional drivetrain components," the source remarked. However, the sturdy Impreza and Forester do not frequently experience the problems many other all-wheel drive vehicles do and parts are inexpensive and easy to obtain.

Also on the list were the regular and hybrid editions of the Ford Fusion, and the Nissan Altima, both noted to have excellent reliability and a long life, the source remarked.

Many of these claims of reliability for these carmakers have been reflected elsewhere. Toyota, Honda Ford and Subaru also ranked in the top 20 for J.D. Power and Associates' recent ranking of the 2011 most dependable car brands, with Nissan not far off at the 24th spot.   http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/cars-that-may-keep-drivers-away-from-the-auto-shop-800482736.aspx Tue, 12 Apr 2011 08:09:27 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/carscom-lists-its-top-gas-sipping-models-for-2011-800482126.aspx It seems like a car's fuel efficiency is always something people take into consideration before buying a new car. But it may have taken on added importance over the past few months, as the cost of a barrel of oil climbs to levels that haven't been seen since the summer of 2008.

With this in mind, Cars.com has reviewed a wide variety of 2011 and 2012 models that achieve at least 35 miles per gallon on the highway.

Honda scores three in fuel-efficiency

Honda fared particularly well, as three of its models—the Civic, CR-Z, and Fit—were recommended by Cars.com for their fuel efficiency. The Honda Fit has received additional plaudits from Cars.com recently, as the website called the Fit the best vehicle for students who are college-bound in a recent review.

This time, the website says its compact size contributes to the Fit's gas-sipping ability, but Cars.com says the vehicle "acts like a larger car" because it sports a generous amount of cargo space, particularly when compared to other subcompact vehicles.

The Honda Fit was one of the models affected by the halt in auto manufacturing after the earthquake in Japan, as the Fit is only made overseas. It's prompted some to speculate that there will be a shortage of Honda Fits in the future, but the company says its North American sellers have adequate supply levels.

Ford fares well

Ford is another carmaker that received top billing from Cars.com, as the 2011 Fiesta, 2012 Focus and 2011 Fusion were all lauded for their gas-sipping prowess. The website was especially taken with Ford's 2010 Fusion, saying it was "a significant step forward for [hybrid] technology, particularly for family sedans."

Ford recently announced that its improved sales activity in North American markets in March—a nearly 16 percent rise in Canada and 12 percent in the U.S.—was primarily due to more people purchasing fuel-efficient vehicles.

"We have been forecasting higher demand for fuel-efficient vehicles for some time now and this month marks the start of a new trend," said David Mondragon, Ford Canada's president and chief executive.

Hyundai and Toyota set records with hybrid vehicles

Another carmaker that's sold well in Canada is Hyundai, particularly the Elantra and Sonata models, both of which Cars.com includes in its best high-mileage cars for 2011. The website says car shoppers will probably be most impressed by the turbo engine the 2011 model sports, but they may be more swayed by the 35 miles per gallon the Sonata gets, which is three to seven MPGs more than competing cars with V-6 engines.

Two Toyota models were also recommended by Cars.com—the 2011 Camry Hybrid and the Prius. The Toyota Prius recently reached a milestone in the U.S., as the company sold its one-millionth unit.
The company says that since the car was first introduced in the U.S. 11 years ago, it's saved the American consumer 881 million gallons of gas and $2.19 billion in fuel costs.

At 51 miles per gallon in the city, the Toyota Prius is one of the most fuel-efficient models Cars.com recommends.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/carscom-lists-its-top-gas-sipping-models-for-2011-800482126.aspx Mon, 11 Apr 2011 14:28:04 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/exxon-mobil-official-attempts-to-explain-why-gasoline-prices-are-skyrocketing-800482119.aspx When gas prices rise, there's not much the average motorist can do other than to swallow hard, tighten one's belt and pay what can amount to $10, $20, even $30 more than what one used to pay for gas.

But inquisitive minds want to know: Why are gas prices rising so precipitously? Ken Cohen, the vice president of public and government affairs for Exxon Mobil, has written a column that tries to clear that up.

Crude oil costs

As with most things, Cohen says that the rising cost of gasoline can't be pinpointed to one specific factor. But more than anything else, it's due to steep crude oil prices. Similar to rising gas prices, several factors have led to the increased cost of crude oil, including rising demand, the declining value of the dollar and supply issues.

To further explain the supply and demand issue with crude oil and how it relates to rising gas prices, Cohen likens crude oil to material goods—or commodities—that are sold on the worldwide market such as silver, coffee, corn, gold or wheat. When things happen in the world that may affect the production of these commodities—such as bad weather reducing the production of corn—buyers and sellers react by either driving the cost of goods up by buying more or cutting the price if there's enough supply but not enough demand. These perceptions have led to the increased cost of crude oil that's bought and sold on the worldwide market.

Twenty-nine percent of gas prices due to other factors

Even though perception about supply and demand is the main factor that has led to rising gas prices, Cohen says it accounts for only 71 percent of what motorists pay at the pump. This means that 29 percent of gasoline's cost is due to other factors. And according to the Department of Energy, 14 percent of the total goes toward taxes, 10 percent is for the distribution and marketing of the gasoline and 5 percent goes toward the cost of refining the oil into gasoline.

President Obama: High gas prices? Get used to them

The cost of a barrel of oil reached record levels in the summer of 2008, and it appears as though that record will either be reached or passed in the coming weeks and months. President Barack Obama appears resigned to that possibility. Speaking to an assemblage of Pennsylvania wind turbine plant workers and touting the country's need to become energy independent, President Obama didn't offer any gas saving tips.

"I'm just going to be honest with you. There's not much we can do next week or two weeks from now," Obama said. "[Gas prices] are going to fluctuate until we can start making these broader changes, and that's going to take a couple of years to have serious effect."

According to GasBuddy.com, Hawaii residents are paying the highest cost for unleaded gasoline in the country at an average of $4.31. Wyoming motorists pay the least, with gas costing them an average of $3.42 per gallon.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/exxon-mobil-official-attempts-to-explain-why-gasoline-prices-are-skyrocketing-800482119.aspx Mon, 11 Apr 2011 14:25:16 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/potential-car-shortage-may-lead-to-higher-new-car-prices-800474941.aspx As some car brands reduce or halt production as a result of a shortage of parts due to the March 11 Japanese earthquake and tsunami, the decreased supply of vehicles may lead to higher prices, according to the Wall Street Journal.

The news source predicts prices for certain automobiles will increase sharply. Models hit hard by the supply shortage, but also in high demand, may even charge potential car buyers premiums. Overall the source predicts a swift move away from the "buyer's market" that the auto industry has had for the past few years.

Forecasts show discounts may plummet

Auto forecasting company TrueCar.com has noted that car buyer incentives are likely to begin dropping soon and at a fast pace, particularly for Japanese cars. The Wall Street Journal noted that TrueCar forecasts for the Honda Civic, which currently comes with a discount rate of about $1020, show it will likely only carry a $470 discount by the end of April.

In addition, the reports expect the Toyota Prius to carry an $800 premium by April 30, up from a $700 discount, the source says.

High fuel prices also may be a contributing factor

According to the source, there is the potential that the raising price of gasoline may also lead to an even sharper price increase for the most fuel efficient vehicles.

Gasbuddy.com reports that gas prices have exceeded $3.86 in some parts of the U.S. Many drivers are looking for ways to save fuel . According to the Wall Street Journal, this desire, coupled with the potential automobile shortages, may manifest itself in higher prices for fuel-efficient cars.

The source also suggests that the emergence of warm weather may further increase the desire for affordable fuel, since drivers will likely be on the road more often and for longer periods of time.

Though the source says there could be a more "violent" price swing for the most fuel-efficient vehicles, some industry insiders argue that drivers who desired compact, fuel saving cars may have already purchased them during the last spike in gas price in 2008. That would reduce the likelihood of the same thing occurring this time around, because, as Aaron Bragman, senior analyst with IHS Automotive, told the source, "That market shift has been made."

According to Daily Finance, the trend of an increase in purchases of used cars, which the National Automobile Dealers Association attributed to the rise in gas prices, may also continue if the price of new cars increases as predicted.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/potential-car-shortage-may-lead-to-higher-new-car-prices-800474941.aspx Thu, 31 Mar 2011 09:10:03 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/buick-introduces-stop-start-system-to-save-fuel-800474934.aspx Drivers consume a considerable amount of fuel when sitting in traffic, but General Motors and some other automakers have created a new technology that may help combat the problem.

The number of passenger cars on the road in the U.S. has increased by nearly 4 million since 2000, according to the Research and Innovative Technology Administration Bureau of Transportation Statistics. The rising number of vehicles has lead to increased traffic in many cities. Combined with the rising price of gas, which has reached over $3.85 in some areas of the U.S., traffic is essentially costing American drivers more than ever.

According to the energy department, 17.2 percent of a car's fuel is burned while idling, which the New York Times says adds up to 69 cents of a $4 gallon.

However, General Motors is introducing a technology that would prevent idling by shutting off a vehicle's engine while it is at a complete stop.

How start-stop systems work

Many electric vehicles already have stop-start systems that prevent idling, however, for traditional vehicles, specific systems need to be created to suit the car's engine.

According to the eAssist site, the system uses a compact electric motor and lithium-ion battery to automatically shut down the combustion engine and restart it when the vehicle begins moving again. The amount of fuel that is saved through this process varies for different vehicle makes and models.

Buick's eAssist

General Motors has announced its own start-stop system called eAssist, which will be installed in all 2012 full-size models of the Buick LaCrosse, according to the New York Times. The system will also come optional on the 2012 Regal.

Though those are the only vehicles that will be available with the system at this time, eAssist is an adaptable technology and the company has high hopes for extending its availability.

"We call this a 'light electrified' technology, and it provides a lot of bang for the buck in terms of overall cost, compared with full hybrids," said Steve Poulos, chief engineer for eAssist. "It could become our base powertrain."

According to the car maker, the system will lead to a 25 percent increase in miles per gallon over the 2011 model for both city and highway driving.

However, what makes Buick's start-stop system different is the number of additional components it has, including direct fuel injection, which the source says results in added horsepower and quick restarts. The engine's battery is also partially recharged with energy the car produces while on the road. Finally, the eAssist system can also lead to further fuel savings by shutting down the fuel delivery system during deceleration, in some circumstances.

The system may be a welcome addition for some drivers who are currently struggling with rising gas prices across the country.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/buick-introduces-stop-start-system-to-save-fuel-800474934.aspx Thu, 31 Mar 2011 09:06:14 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/expensive-gas-encourages-americans-to-buy-fuel-efficient-cars-800465056.aspx Despite environmental concerns, auto industry experts say that Americans are unlikely to turn in their large vehicles for smaller models that promote energy efficiency unless it is financial necessity, according to the Wall Street Journal.

In a recent report from Kelley Blue Book, the company found that the spike in gas prices have caused more consumers looking for both new and used vehicles to change the type of model they were looking for. In February, 81 percent of car shoppers said the price of gas influenced their decisions, reported the newspaper, an 11 point increase since January. In addition, 58 percent of respondents said the economy has caused them to make vehicle downgrades such as purchasing a car with a smaller engine, reduced or eliminated extra features or buying used instead of new.

Rising gas prices

The price of gas was $3.51 per gallon at the time the survey was conducted, reported the paper. According to the latest Kelley survey, 74 percent of respondents said they expected gas prices to continue to rise within the next 30 days.

While gas prices have been climbing all year, it hasn't kept some consumers from purchasing the large vehicle of their choice. In February, the Ford F-series - a collection of full-size pickup trucks - was the bestselling vehicle in the nation, followed by the colossal Chevy Silverado.

However, in general, Americans have embraced the introduction of green energy cars. The Los Angeles Times reports that since 2000, the number of hybrid vehicles on the road has jumped from 10,000 to an impressive 1.4 million.

Tax credits boosted sales

To encourage the use of hybrid cars, the Energy Policy of 2005 granted up to a $3,400 tax credit toward the purchase of a hybrid vehicle and $4,000 toward a compressed natural gas vehicle. While those credits expired at the end of 2010, legislators are now offering similar federal tax credits for up to $7,500 for plug-in hybrids and electric cars.

There are other ways to reduce fuel consumption for consumers who cannot afford to buy a new energy efficient car. According to the U.S. Department of Energy, observing the speed limit, removing excess weight from a vehicle and avoiding unnecessary idling are all ways to conserve gas. Furthermore, the source said that resisting the urge to drive aggressively can also save considerable amounts of fuel, as studies have found the practice can reduce gas mileage by 5 percent around town and 33 percent at highway speeds.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/expensive-gas-encourages-americans-to-buy-fuel-efficient-cars-800465056.aspx Thu, 17 Mar 2011 09:40:56 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/get-whatever-color-car-you-want-auto-insurance-costs-unaffected-by-paint-job-800464088.aspx Go ahead, get the red paint job - despite the idea that cars with flashy decorative schemes are more likely to get slapped with moving violations, insurance industry professionals say it won't affect auto insurance costs.

Other factors are much more likely to figure into the monthly bill motorists pay for car insurance coverage, according to Loretta Worters of the Insurance Information Institute.

"Size of your engine, the type of car it is, how many miles you drive annually. Those have a greater impact on insurance than probably anything else," she said in a recent statement.

In the hypothetical case of a bright red sports car, then, this means the high-capacity engine and premium brand will contribute to a consumer's auto insurance rate far more than its bright paint job. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/get-whatever-color-car-you-want-auto-insurance-costs-unaffected-by-paint-job-800464088.aspx Wed, 16 Mar 2011 10:32:55 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-buying-decision-should-not-be-based-on-gas-prices-analysts-say-800457596.aspx Drivers should purchase the vehicle they want, and not just the model that's most fuel efficient, as experts say the political turmoil currently facing some Arab nations may bring down the price of gas, reported the Los Angeles Times.

Record-high gas prices have caused some drivers to abandon gas-guzzling trucks and SUVs for smaller vehicles that get better gas mileage. While many believe the cost of fuel is more likely to increase than drop, Jack Nerad, an analyst with Kelley Blue Book, told the newspaper consumers should not be so quick to assume crisis mode.

"It is like people who look out the window, see that it is raining and then think it is going to rain for the next four years," he said.

While no one can predict the future, with gas prices hovering at over $3 a gallon - and even $4 in California - the paper said web searches show that motorists will choose smaller cars when purchasing a new vehicle unless they have a particular need for something bigger.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-buying-decision-should-not-be-based-on-gas-prices-analysts-say-800457596.aspx Fri, 11 Mar 2011 11:13:18 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/truecarcom-introduces-way-to-measure-manufacturers-fuel-efficiency-800436904.aspx TrueCar.com, an online car shopping resource, announced that they are offering consumers a new way to understand the fuel economy of cars by manufacturer, brand and vehicle segment, using data collected from the Environmental Protection Agency.

TrueCar.com has gathered data from the EPA on individual manufacturers, determined the fuel efficiency of different models, calculated how many of those models were sold in a given month, and found the average MPG of a car sold by a particular company.

Nissan, for instance, sold cars with an average fuel economy of 23.7 MPGs in February 2011, up 1.2 from February 2010. TrueCar.com also found that the fuel efficiency of the cars Nissan sold in February 2011 were up 1.1 MPGs from the previous years' and their trucks had improved by 1.6 MPGs.

"Average monthly fuel economy provides a closer look into how fuel-efficient the vehicles a manufacturer sells each month," said the site's vice president of industry trends and insights Jesse Toprak.

When shopping for a new car, TrueCar.com's new feature may make it easier to discover which car companies sell the most fuel-efficient cars, allowing consumers to save fuel.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/truecarcom-introduces-way-to-measure-manufacturers-fuel-efficiency-800436904.aspx Tue, 01 Mar 2011 17:09:08 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/agassi-electric-cars-could-take-over-sooner-than-expected-800376243.aspx Before 2020, says Shai Agassi, electric cars will be more popular than gasoline engines among people buying vehicles, the Associated Press reports.

The electric car innovator, who left a position at German business software giant SAP to launch his company, Better Place, told the news agency the transition could be more rapid than most people expect.

"The end of the oil era will not come because we ran out of oil - it will come become we don't want to use oil any more to drive. I can guarantee you that we will finish the need for oil as an energy source for cars before we run out of oil in the ground," he said in an interview.

Agassi's business has raised roughly $700 billion in capital, and is using a third of that sum to set up battery charging and swapping stations for electric cars, according to the AP.

Experts say there are two primary draws for electric vehicles: Low operating costs and low environmental impact. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/agassi-electric-cars-could-take-over-sooner-than-expected-800376243.aspx Mon, 31 Jan 2011 14:55:36 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/small-car-value-looking-big-in-current-market-expert-says-800376209.aspx Gas prices and an economy still not fully recovered from the traumas of 2008 and 2009 are pushing new car buyers toward smaller, more fuel-efficient vehicles, according to John McCormick of the Detroit News.

The shift is not a unilateral one, however, and the columnist says it's too early to discover whether the U.S. auto market is in full-on transition mode.

According to McCormick, the turning point will happen soon, as carmakers complete their own shift to anticipate consumer demand.

"The real test for the subcompact and compact sedan market will come in the next few months, as the impact of recently launched and soon-to-be-introduced models hits U.S. showrooms," he says.

Other pundits say the recovering economy, combined with the aggressive pricing and incentives used to keep the automotive market afloat during the recession, could actually prompt more people to buy bigger vehicles once again. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/small-car-value-looking-big-in-current-market-expert-says-800376209.aspx Mon, 31 Jan 2011 14:43:48 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/california-industry-group-says-new-car-sales-spiked-in-2010-800376186.aspx In 2010, new car sales saw their first year-over-year improvement for five years, the California New Car Dealers Association (CNCDA) announced recently.

A total of 1,174,110 new vehicles were sold in the state in 2010, the report said, which is an increase of about 136,000 units over 2009. The group warned, however, that the market had not yet returned to pre-recession levels.

"Despite the consecutive double-digit percentage increases, the market will still be well below the 2.1 million unit level recorded as recently as 2005," it said.

Market share among automakers changed significantly as well, CNCDA announced, with American and European manufacturers getting more business while Japanese carmakers saw less. However, the top three individual models in the state by sales were the Honda Civic, Honda Accord, and Toyota Camry, all Japanese.

Increasing new car sales could also mean fewer injuries behind the wheel, since newer models tend to have better safety ratings. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/california-industry-group-says-new-car-sales-spiked-in-2010-800376186.aspx Mon, 31 Jan 2011 14:31:42 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/new-mexico-governor-announces-freeze-on-state-car-buying-800376173.aspx A strained state budget prompted the governor of New Mexico, Susana Martinez, to impose a freeze on new vehicle purchases by the executive branch late last month.

The governor's executive order went into effect January 26 and will remain in place until June 30, 2012, which marks the end of that fiscal year. Martinez included an exception for law enforcement vehicles, however, in order to make sure the state's roads remain as safe as possible.

According to the Associated Press, the governor will also seek additional ways to curtail state spending, including a review of the government's cell phone policy to find any unnecessary spending, and considering the elimination of post office boxes from government buildings.

Despite New Mexico's new moratorium, loan rates for new car purchases are at historic lows, and experts say it may actually be more affordable to buy a new vehicle rather than a used one in some cases. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/new-mexico-governor-announces-freeze-on-state-car-buying-800376173.aspx Mon, 31 Jan 2011 14:28:14 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/one-year-in-oregon-law-drives-auto-insurance-prices-down-800366060.aspx The practice of auto insurance companies using a customer's credit score as a factor in determining his or her premium payments is nothing new, but an Oregon law requiring insurers to give discounts for high credit-worthiness has proved successful in its first year in effect, according to the state Department of Consumer and Business Affairs.

Consumers are allowed to request their auto insurance rates be reviewed in light of recent credit score improvements, the department said, provided insurers used that information to make their initial calculations.

Insurance companies are not allowed to raise payments as a result of the re-rating, officials added, so rates can only go down or stay the same.

The department's insurance division administrator, Teresa Miller, said many more families could realize benefits from the program.

"There is nothing to lose and families with good credit may well save money," she said. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/one-year-in-oregon-law-drives-auto-insurance-prices-down-800366060.aspx Wed, 26 Jan 2011 10:33:15 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/savvy-used-car-buyers-need-to-do-their-homework-expert-says-800366048.aspx Being on the lookout for a lemon is always a good idea, and consumers shouldn't hesitate to have a potential used car purchase checked out by an independent mechanic before buying, writes Steven Cole Smith for the Orlando Sentinel.

Prospective used car buyer Kenny Dill tells Smith about the experience he had with a potential purchase.

"I found a small car I like, but the owner wouldn't let me take it to a mechanic to get it looked over. I've never had any problems with that before, and I'm wondering if it's a warning sign," Dill says.

Consulting with mechanic Robert Kasper, Smith says there are a number of things a professional might notice which could escape the notice of an unwary buyer, including uneven tire wear, suspension issues and shoddily performed repairs.

However, those selling a used car have a few pitfalls to watch out for themselves, other experts say, including dishonest buyers and potential thefts during a test drive. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/savvy-used-car-buyers-need-to-do-their-homework-expert-says-800366048.aspx Wed, 26 Jan 2011 10:29:13 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/consumers-flock-to-arizona-in-hopes-of-buying-a-car-for-less-800366040.aspx Five major car auctions in the Phoenix area did big business in January, according to the Arizona Republic, which estimated the total sales could top $100 million.

Among the many automobile enthusiasts looking to do business at the RM Auctions was baseball Hall of Fame member Reggie Jackson, who told the Republic he was planning on selling three collector cars - including a valuable 1973 Ferrari - for what could total $1.3 million. If the sales went that well, he added, he might be tempted to buy another vehicle at the event.

The RM Auctions event was expected to move 160 cars during the weekend, the newspaper said, adding good weather had helped bring in more potential customers.

Car auctions can offer great deals sometimes, but experts urge interested bidders to use a degree of care. A significant amount of due diligence is required to make sure one is not paying too much. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/consumers-flock-to-arizona-in-hopes-of-buying-a-car-for-less-800366040.aspx Wed, 26 Jan 2011 10:28:00 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/low-auto-loan-rates-may-make-now-a-good-time-to-buy-a-car-800366033.aspx It can be more expensive to finance a used car than a new one in some cases, says a Wall Street Journal report on the automotive market.

The average rate for new-vehicle auto loans today is 4 percent, and more than 15 percent are for no interest whatsoever, the newspaper reports, compared to a higher - though still historically low - 8 percent average for used cars.

According to the Journal, several factors have combined to create this strange state of affairs. One was the Cash For Clunkers program in 2009, in which the government took nearly three-quarters of a million used cars off the market, making them scarcer, and another was the overall tough financial climate, which drove demand and prices down.

Experts say, however, this may create an excellent climate for those with a little money to buy a new car. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/low-auto-loan-rates-may-make-now-a-good-time-to-buy-a-car-800366033.aspx Wed, 26 Jan 2011 10:26:33 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/financial-upsides-for-getting-married-are-often-overlooked-800335017.aspx Despite a recent study that indicated more Americans than ever regard marriage as an outmoded institution, there are tangible financial benefits to getting hitched, according to an article in the Baltimore Sun.

A lawyer who teaches a class on the mechanics of marriage and divorce at Bentley University, Steven Weisman, told the sun the incentives were there.

"To me, there are so many things that encourage people to marry for financial reasons," Weisman said.

The Sun said married couples can share Social Security benefits, whereas single people can only claim government assistance based on their own work history. In addition, the paper wrote, the standard tax deduction for married couples is now twice the size of the one offered to singles.

Other experts note another way for newlyweds to save money is to combine auto insurance or home insurance policies, which simultaneously simplifies their monthly bills. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/financial-upsides-for-getting-married-are-often-overlooked-800335017.aspx Tue, 11 Jan 2011 09:23:22 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/saving-and-financial-planning-to-take-forefront-in-2011-800307027.aspx More people are thinking about how to manage their finances than in the past. A survey conducted by Fidelity Investments reveals the number of those who have resolved to increase the amount they contribute to their bank accounts and investments increased by 7 percent from last year.

More than half of the survey respondents who said they plan to make better money decisions next year say they will do so with a retirement account.

Fidelity Investments vice president Ken Hevert says economic conditions may be fueling people's decision to save more.

"The historic economic events over the past two years have shaken many Americans, but they have also spurred positive saving behaviors," says Hevert. "As the economy continues to recover, it will be crucial that these investors continue to make saving and financial planning a priority, and create a long- and short-term action plan to help them reach their goals."

Another way people can prepare for their golden years is with life insurance. Depending on the policy type, investors can use the funds from the policy while alive to cover living and medical expenses in addition to having a death benefit.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/saving-and-financial-planning-to-take-forefront-in-2011-800307027.aspx Wed, 22 Dec 2010 09:48:20 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/report-tablet-pcs-could-be-just-a-little-ahead-of-their-time-800291594.aspx Although the idea has been around for some time, widespread interest in tablet PCs has only recently been seen, with the introduction of Apple's iPad. However, a report from tech news source CNET says potential gift-givers still need to consider whether the new devices are a good investment.

While many of the tablet options on the market for holiday shoppers are powerful, full-featured devices, there are some minor drawbacks to consider, CNET says. Battery life, processor performance, and screen resolution have been occasionally problematic for tablet PCs, which must pack their hardware into a confined space, but there isn't much more in terms of functionality they can be expected to offer, according to the report.

"If you wait, you're almost guaranteed more competitors, but it's doubtful they'll offer many more features than the iPad, simply because there aren't many compelling features left on the table," CNET says.

A more serious argument against getting the family's favorite techie a new tablet PC for the holidays, however, is the pending release of a number of new devices next year, CNET writes. A newer and more powerful iteration of Apple's iPad may show up as soon as April, complete with front- and rear-mounted cameras providing support for the company's FaceTime video chatting service.

In addition, Apple's major rival in the tablet PC market has a number of potential releases in 2011 that could make a device purchased this holiday season rapidly look outdated, according to CNET. Google's Android operating system - basic software which features on smartphones and tablets manufactured by a variety of hardware companies - could get a tablet-specific facelift next year, the report says. If the new version of the software features enough apps optimized for the tablet platform, the iPad could quickly have several new competitors on its hands, the site says.

That said, CNET notes, many Android tablets have had problems which might limit their appeal as holiday gifts. In order to buy some models for a reasonable price and keep connected while on the go, consumers have to sign up for a two-year subscription to one of the major wireless data carriers, which they may not want to do. Without the subscription, CNET notes, the devices are much more expensive and less functional.

Beyond that, even Android tablets that successfully avoid the carrier lock-in problem are frequently forced to go without one of the system's key selling points, the official Google App Market, writes CNET. Deprived of the ability to use much of their device's robust functionality, technophiles may wish gift givers had looked elsewhere.

There are strong arguments both for and against the purchase of a tablet PC this holiday season, according to CNET. Those without debt problems might decide to spring for a friend or family member's new iPad right away, since the technology is unlikely to make any quantum leaps in the near future. Those more interested in saving money, however, may wish to wait until there's a little more competition in the marketplace before taking the plunge on a tablet, CNET writes.

As with all holiday gifts, cash management is an important consideration, experts say. Getting one family member an expensive electronic device won't generate much good cheer if it leaves others with lackluster presents. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/report-tablet-pcs-could-be-just-a-little-ahead-of-their-time-800291594.aspx Tue, 14 Dec 2010 15:01:53 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/experts-stock-market-conditions-may-prevent-investment-gains-this-holiday-season-800291589.aspx Increasingly tough conditions in the global economy and several unfortunate events have combined to make the stock market outlook for the remainder of 2010 a bleak one, according to a report from CNBC.

Experts told the financial and business news network the general stock market trends for the end of the year are not promising.

"Based on momentum and sentiment extremes achieved at the nearby highs, it seems likely that the stock market will be on a declining path, at least through year-end," Gluskin Sheff strategist and economist David Rosenberg said, according to CNBC.

This week's renewed hostilities between North and South Korea have acted as one of several roadblocks to economic gains, causing uncertainty in the global financial markets. In addition, massive debt problems being suffered by several major European countries have slowed the worldwide recovery.

Consumers should consult with their advisors in order to stay out in front of trends and protect their financial security from the vagaries of the stock market. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/experts-stock-market-conditions-may-prevent-investment-gains-this-holiday-season-800291589.aspx Tue, 14 Dec 2010 15:00:48 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/financial-gifts-need-to-be-handled-in-the-right-way-says-columnist-800291586.aspx There are a number of opportunities - as well as a number of pitfalls - confronting people whose holiday gifts take the form of financial disbursements, according to Anne Bagamery's recent column in the New York Times.

One of the main no-nos listed by Bagamery in her piece is attaching conditions or strings to a financial gift.

"If you believe in the cause or sincerely want to help, you have achieved your goal; if you are trying to buy respect or love, you probably will be disappointed," Bagamery writes.

She also advises those thinking about making a financial gift to be aware of the tax reporting rules that govern such transactions. Consulting with an investment advisor for the most up-to-date information on such laws is critical, according to Bagamery.

In addition to donating to friends or family members, those looking for opportunities to give this holiday season might consider volunteering or other charitable work. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/financial-gifts-need-to-be-handled-in-the-right-way-says-columnist-800291586.aspx Tue, 14 Dec 2010 14:55:48 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/npr-poor-people-worldwide-get-debt-assistance-from-microfinance-programs-800291575.aspx Some of the world's poorest people are being given a chance at economic success by programs to help them leverage their savings into microfinance programs, which provide financial services that might otherwise be unavailable to them, according to National Public Radio.

"We went into a market and established a kiosk in that market out of a butcher's shop," Opportunity International Bank of Malawi CEO Aleksandr-Alain Kalanda told NPR. People were, at the outset, suspicious or scornful of Kalanda's operation, but it has grown rapidly and is now worth $1 million, he added.

According to NPR, the Bill and Melinda Gates Foundation recently donated $500 million toward microfinance efforts across the globe, hoping to help encourage prosperity in some of the poorest places on earth.

Microlending is another type of financial assistance large philanthropy organizations have developed to help poor people, experts say, though it has fallen from favor somewhat recently. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/npr-poor-people-worldwide-get-debt-assistance-from-microfinance-programs-800291575.aspx Tue, 14 Dec 2010 14:52:47 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/make-more-financial-aid-info-available-professor-says-800291459.aspx The burden of debt continues to be a serious problem for American college students, and the best way to tackle it is to make the important information about financial aid more easily accessible, according to a Harvard professor who spoke to Inside Higher Education.

While most of the information prospective college students need to make their financial aid decisions is already public, Bridget Terry Long says almost none of it is collected and presented in a useful and easily accessible way.

Long's paper on the subject, "Grading Higher Education: Giving Consumers the Information They Need," was released last Friday at a conference on job creation held by the Center for American Progress, according to Inside Higher Education.

Until Long's recommendations are adopted, prospective students will still need to do some deep digging to find all of the information they need to get the best possible financial aid for college. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/make-more-financial-aid-info-available-professor-says-800291459.aspx Tue, 14 Dec 2010 13:14:40 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/report-massachusetts-high-school-standards-helping-800300223.aspx While students in Massachusetts are increasingly likely to graduate from college within six years of leaving high school, according to research cited in the Boston Globe, educational authorities in the state are looking to improve even more.

Boston school superintendent Carol Johnson told the newspaper there was more in the offing, but that the progress was a good sign.

"The trend lines look very positive, and the partnerships we have established look like they will pay off," Johnson said.

The state Department of Education heralded more advances earlier this year with the announcement of improved standardized test scores among 10th graders. This could help them receive more money for college, experts say.

Lieutenant Governor Timothy Murray praised teachers for these gains.

"Our students and our schools continue to prove that high standards and high expectations combined with the right resources for all students creates a winning formula for success," he said.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/report-massachusetts-high-school-standards-helping-800300223.aspx Thu, 09 Dec 2010 10:38:34 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/online-quiz-could-mean-scholarship-money-800300226.aspx The top scorer in an online quiz offered by the Common Knowledge Scholarship Foundation (CKSF) will win a $500 scholarship, according to a release from the organization.

The president of CKSF, Daryl Hulce, said the quiz competition offers students the opportunity to earn money simply for doing what they would be doing anyway: studying.

"Providing scholarship money using the online quizzes gives all students that read their textbooks a fair and equal chance to win a scholarship. I understand that giving away money for taking simple online quizzes sound too good to be true but it really is how the program is designed," Hulce said.

Entrants must take the quiz by December 11 to qualify for the championship round. The best score in this final stage will take home the $500 in money for college, CKSF said. The quiz can be found on the group's website, www.cksf.org.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/online-quiz-could-mean-scholarship-money-800300226.aspx Thu, 09 Dec 2010 10:07:36 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/us-cities-retirement-confidence-levels-vary-800300228.aspx A study in which participants were questioned about their financial readiness to retire and confidence in a successful retirement revealed strong disparities among the top 30 U.S. metropolitan areas, according to Ameriprise Financial.

The best-prepared city in America for retirement, the financial services company says, is Minneapolis-St. Paul, Minnesota, closely followed in the rankings by Raleigh-Durham, North Carolina, and Nashville, Tennessee.

Among the top cities, confidence was the surprising x-factor which propelled the Twin Cities to their number-one ranking. While 83 percent had begun to save - well above the national average of 69 percent - almost half the people questioned in that survey said they were on track for retirement, and a little less than a third reported themselves "very confident" about their ability to stay financially afloat.

At the other end of the spectrum, Los Angeles, California, is the least-prepared city, just ahead of Indianapolis, Indiana, and Orlando, Florida.

Ameriprise vice president of retirement wealth strategies Craig Brimhall said the disparities were based in part on the pace of recovery.

"In some cases, local economic conditions have had such a substantial impact on people that their levels of preparation and confidence appear a bit out of sync," Brimhall said.

These serious economic conditions were particularly marked among the bottom group of cities, Ameriprise said. Fully 36 percent of Los Angeles respondents told the researchers their retirement plans had been significantly affected by the recent downturn, and more than a third also said they had given little to no thought to preparing for their retirements - perhaps signaling that they have more pressing concerns on their minds.

A similar profile was found in Indianapolis and Orlando. In the Florida city, particularly, only one in five of those surveyed said they had determined the amount of money they would need to retire on, Ameriprise found. This figure may have been driven by Orlando's high unemployment rate, which outpaced the national average.

In other cities, there was a significant disparity between the real economic situation potential retirees found themselves in and the levels of positive emotion and confidence they felt, according to Ameriprise. One of the best examples of this phenomenon was San Francisco, California.

The relatively affluent northern California city - one of the main hubs of the tech world - didn't totally avoid the effects of the recession by any means, but confidence among survey respondents was far lower than their actual levels of preparedness would indicate. Ameriprise said San Francisco ranked in the top five for retirement preparedness, but just 18th in confidence.

The financial services firm also noted this phenomenon in reverse in several other cities. Hard-hit areas like Detroit, Michigan, and less affluent municipalities like St. Louis, Missouri, and Tampa, Florida were ranked very low on the researchers' index of real retirement preparedness. Nevertheless, residents of those cities reported themselves significantly more confident than such measures would indicate.

Those nearing the retirement age, regardless of where they live, should realize the still-unsettled economy could affect their chances of being able to comfortably give up their jobs at the time they had planned. Investment experts say it's important to diversify and make sure enough money is being held in safe vehicles to avoid the vagaries of the market.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/us-cities-retirement-confidence-levels-vary-800300228.aspx Thu, 09 Dec 2010 10:01:59 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/kids-want-college-savings-this-year-800300262.aspx Financially strapped college-bound teens and their families have many concerns. CollegeBoard.com says the average cost for a nonprofit four-year institution is more than $27,000 a year, making a cash gift highly desirable for the holidays.

A survey by financial aid website Fastweb found that most respondents wanted money to pay for college this season.

"Every year more teenagers are worried about paying for college, and there are many ways their friends and relatives can help," says Fastweb publisher and financial aid expert Mark Kantrowitz.

One way the gift can be realized is through a 529 college savings plan. The accounts allow others to deposit funds that can be used to cover educational expenses down the road.

Students aren't just looking for others to help them pay for college. The survey also revealed just over half of the respondents plan to work to cover holiday shopping and future educational costs.

Even though funds from a part-time job may seem meager, every bit of money set aside adds up and can make the difference between affording college and spending many years paying back loans.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/kids-want-college-savings-this-year-800300262.aspx Wed, 08 Dec 2010 14:05:37 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/college-savings-make-a-good-gift-800300267.aspx College tuition can be exorbitant, making it important for families to plan ahead.

One place families can set money aside is a 529 college savings plan. College savings program Upromise suggests making a contribution to such an account as a gift.

"Gift-givers can give the long-lasting gift of a contribution to a 529 college savings plan account, and at the same time they'll benefit from smart financial planning," says Upromise president Jeff Howkins.

A 529 plan is similar to an IRA account in that funds are invested and may increase or decrease depending on how well they do, according to Savingforcollege.com

The website highlights tax benefits as one of the top reasons to invest in a 529 plan where deposited funds grow tax-free.
Anyone can set up a 529 college savings plan. It's important, however, for people to remember contributions cannot exceed $13,000 annually, according to the IRS. Parents with more than one college-bound child can set up multiple accounts.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/college-savings-make-a-good-gift-800300267.aspx Wed, 08 Dec 2010 14:02:31 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/study-fewer-retirees-more-disability-benefits-800300271.aspx There's no quick and easy way to simultaneously fix the U.S. government's budget problems and ensure the country's senior citizens are provided for, says a report from the GAO.

The study, released in late November, warns it could be deceptive to equate a longer life expectancy with a capacity to worker farther into one's sixties.

"Disability rates increase with age, suggesting that workers postponing retirement would face increasing likelihood of becoming disabled. Even healthy older workers may have trouble staying in the labor force longer as those that lose their jobs are less likely than younger workers to get rehired," a summary of the report says.

It may be useful for those approaching retirement age to consult with a professional financial planner to make sure their funds are sufficient to deal with any prospective changes in government benefits.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/study-fewer-retirees-more-disability-benefits-800300271.aspx Wed, 08 Dec 2010 13:59:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/connecticut-to-ease-college-savings-plan-fees-800300276.aspx The Connecticut Higher Education Trust (CHET)'s directly sold 529 college savings plan is now one of the lowest-priced in the country, according to an announcement made Monday by the state's treasurer, Denise Nappier.

Nappier says the program's management fees have been cut by 39 percent, which should mean consumers pay between $3.40 and $9.80 per year for every $1,000 invested. Different investment options will yield different fees, according to the announcement.

"With one of the lowest-cost plans in the nation, Connecticut's direct-sold 529 college savings plan allows parents to focus on contributing to their college savings plan rather than paying fees. More of the contributions can go toward college savings objectives," Nappier says.

In addition, the announcement says investments in the state plan will be eligible for tax deductions if made before the end of 2010, providing an additional incentive. Nearly $1.4 billion in assets is managed under the plan, according to the state.
  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/connecticut-to-ease-college-savings-plan-fees-800300276.aspx Wed, 08 Dec 2010 13:49:24 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/set-clear-new-years-goals-800294883.aspx Whether it's a lofty milestone or a minor goal, a New Year's resolution can be difficult to make. Every year, many people set off with the best intentions, but don't stick with their modified lifestyle for more than a few weeks.

Richard O'Connor gave website Bankrate.com some tips to help people stick with their New Year’s goal. Among them is making the goal something highly desirable.

"Put some thought into it," says O'Connor. "I encourage people not to make cheap resolutions, but to save it for something meaningful."

Additionally, O'Connor suggests people make their goals specific. It's difficult to obtain something that isn't clearly defined.

According to government website USA.gov, some popular New Year's resolutions include drinking less alcohol, better stress management, and proper financial management.

Whatever one's New Year's goals, it's important to stay focused on achieving the goal and not getting discouraged when one slips up from time to time. Recruiting friends and family for extra support can be helpful, experts say. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/set-clear-new-years-goals-800294883.aspx Wed, 01 Dec 2010 23:10:35 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/kids-benefit-from-making-new-years-resolutions-800294882.aspx New Year's resolutions don't have to be for adults trying to lose weight or better manage their finances. Children can also participate in the annual ritual of goal setting.

The America Academy of Pediatrics (AAP) has devised a list of age- appropriate goals for children. For young children, the AAP suggests setting goals to pick up toys and regularly brush teeth and wash hands.

Elementary school-aged children can aim to drink more milk and water and engage in a fun physical activity three times a week. Possible New Year's resolutions for older children are similar, but the AAP also suggests goals to avoid risky behaviors and resisting peer pressure.

In an article for Scholastic, psychologist Adele Brodkin notes setting a New Year's resolution can be helpful for children. She says the process of goal setting creates the perfect opportunity for parents and their children to discuss areas for improvement.

Just as with adults, children are also likely to break their resolution. Brodkin suggests offering an incentive as progress is made towards the goal. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/kids-benefit-from-making-new-years-resolutions-800294882.aspx Wed, 01 Dec 2010 23:04:48 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/new-years-resolution-tip-dont-hold-off-on-money-decisions-800294881.aspx Among the most popular New Year's resolutions is to better manage money. While most would agree the goal is a good one, some experts say holding off until the calendar turns is foolish.

In a blog for USA News, Kelly Campbell notes there were many tax changes this year consumers need to keep in mind when investing. One major alteration affects investments with substantial gains.

Campbell says with the expiration of the Bush tax cuts, taxes on long-term gains will increase 5 percent. The tax hike can result in a person losing a substantial amount of funds.

"If a person made a $10,000 return on his investment, selling it after January 1 will cost him $500 more," writes Campbell.

Some say what is most important to achieving a goal is establishing small, achievable steps and rewarding oneself when each milestone is reached. It may not be realistic for an avid shopper, for example, to go from spending hundreds of dollars at retail outlets to not making a purchase for six months. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/new-years-resolution-tip-dont-hold-off-on-money-decisions-800294881.aspx Wed, 01 Dec 2010 23:02:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/poll-boston-area-not-likely-to-reap-rewards-of-big-holiday-season-800294870.aspx Despite national projections forecasting moderate improvements for holiday season shopping, a poll from the Boston Globe and Suffolk University shows most Bostonians will stay well within their previous year's budgets.

Just 6 percent of Massachusetts shoppers said they planned to spend more on holiday purchases this year than they did in 2009, according to David Paleologos of Suffolk University.

"That means that for every 20 people that walk into a store, only one of those 20 people is planning to spend more," he added.

However, the Globe says retailers have stood by their own projections of a blockbuster holiday season. The paper cites figures from the Retail Association of Massachusetts as saying holiday sales for the 2010 season would surpass the previous year's totals by 4.3 percent.

The Globe report says the numbers of Massachusetts residents dining out and traveling have also decreased, which could imply that consumer debt is still high. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/poll-boston-area-not-likely-to-reap-rewards-of-big-holiday-season-800294870.aspx Tue, 30 Nov 2010 22:11:28 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/holiday-shopping-tip-saving-money-isnt-just-for-black-friday-expert-says-800291577.aspx Some lesser-known strategies can be used to save money when buying gifts this holiday season, according to Savings.com, and can help consumers avoid the headaches of Black Friday lines and crowds.

In fact, the website says, many retailers offer deals online, which holiday shoppers can take advantage of from the comfort of their couch. Many online sellers offer free shipping, and can undercut brick-and-mortar retailers' prices because of low overheads.

Nor is Black Friday the only pre-holiday shopping day on which consumers can find good deals. A number of large retailers - including major clothing stores like Old Navy and Banana Republic, as well as retail giants like Walmart and Target - will offer discounts before the shopping holiday, according to the website.

Using these strategies and other good tips, holiday shoppers can either pay less for the gifts they were going to buy anyway or upgrade to more or better presents, experts say. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/holiday-shopping-tip-saving-money-isnt-just-for-black-friday-expert-says-800291577.aspx Sun, 28 Nov 2010 14:54:32 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/beware-of-deceptively-risky-investments-personal-finance-expert-warns-800294866.aspx Even with a professional advisor, Investopedia expert Brian Bloch says, consumers should strive to educate themselves about risks with their investments and be aware of some common pitfalls.

The first - and most blatant - type of misinformation which can damage personal finances is simply being ill-advised about the risk of a given investment, Bloch writes.

"Investors who want to believe the publicity and are tempted by promises of high returns may fall for it, or they may truly not know any better," he warns.

Beyond that, however, investors must stay on their guard even when they feel safe. This feeling, in fact, can lead to taking bigger risks because of the belief in one's own security, according to Bloch.

Staying well-informed about both current investments and the effectiveness of safety-valve policies like stop-loss orders should help consumers avoid debt problems, experts say. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/beware-of-deceptively-risky-investments-personal-finance-expert-warns-800294866.aspx Wed, 24 Nov 2010 22:05:43 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/expert-personal-finances-prompting-more-dogged-job-hunts-800294860.aspx Staying one step ahead of other job seekers could be the way to get back into the workforce, since many unemployed people assume the holidays are a bad time for hiring, according to the Sacramento Bee's Claudia Buck.

Career consultant Naomi Kinert says this idea, though counterintuitive, can make the job hunt more successful for determined applicants.

"Many job seekers make the mistake of putting their job search on hold during the holidays on the assumption that 'no one's hiring in December.' Those who stay in the (job hunt) game will have less competition," Kinert told Buck.

Another reason for this, the career counselor told the paper, is workloads at many offices slow down during the holidays, meaning hiring managers are more likely to have time to look at resumes. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/expert-personal-finances-prompting-more-dogged-job-hunts-800294860.aspx Wed, 24 Nov 2010 21:58:30 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/students-at-university-of-minnesota-at-duluth-can-minor-in-financial-planning-newspaper-says-800294857.aspx Minnesota consumers looking for personal finances advice could see an influx of qualified young professionals in the coming years, according to the Minneapolis Star-Tribune, as the University of Minnesota at Duluth begins offering a financial planning minor to its students.

Kara McGuire, the paper's personal finance columnist, says the school's new minor is a further example of the industry's shift toward selling real planning services, rather than simply trying to pitch investments.

Officials told McGuire the new program's creation was aided by professional help from TD Ameritrade and JNBA Financial Advisers, which is located in the Twin Cities suburb of Bloomington.

More qualified, legitimate financial planners can only be good news for Minnesotans. Experts say professional certification programs like the one at UM-D are a great way to help separate the real experts from those who might not be so trustworthy. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/students-at-university-of-minnesota-at-duluth-can-minor-in-financial-planning-newspaper-says-800294857.aspx Wed, 24 Nov 2010 21:54:21 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/report-experts-debate-wisdom-of-proposed-ftc-debt-collection-rules-800294854.aspx Different sections of a proposal to update the Federal Trade Commission's rules for debt collectors have drawn alternate praise and criticism, according to an analysis published this week in the Wall Street Journal.

A debt collection expert from the National Consumer Law Center, Robert Hobbs, told the Journal there were serious oversights in the proposed new rules.

"The plain language of the Fair Debt Collection Practices Act does not allow collectors to contact friends, neighbors or relatives except to obtain contact information for debtors. This proposed rule could open the door for collectors to seek money by prodding and misleading grieving relatives and friends into thinking they have obligations that they don't," Hobbs told the paper.

The Journal, along with a number of independent personal finance experts, reminds consumers they have a number of rights upon which debt collectors cannot infringe, including the right not to be harassed and the right to sue collectors who violate the rules. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/report-experts-debate-wisdom-of-proposed-ftc-debt-collection-rules-800294854.aspx Wed, 24 Nov 2010 21:45:32 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/salvation-army-to-provide-credit-card-option-for-donations-this-holiday-season-800294853.aspx The Salvation Army isn't just looking for loose change and spare bills this year. In addition to the iconic red kettles and always-ringing bells, the charity's holiday collectors will be equipped with credit card readers.

The group is attempting to capitalize on the increasing proportion of Americans who rarely or never carry cash. This is a trend which might otherwise damage the Salvation Army's ability to raise money for the needy. However, small, portable card readers which can provide on-the-spot receipts for donors could help the group enormously, according to CNN.

Des Moines Salvation Army city coordinator Major David Corliss told the Des Moines Register "research shows that our younger neighbors are just as generous as older persons - even more so in some cases."

The still-growing use of Visa and MasterCard in the U.S. has also caused more Americans to encounter trouble with credit card debt. Consumers must be careful not to give too much - despite their impulse to generosity. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/salvation-army-to-provide-credit-card-option-for-donations-this-holiday-season-800294853.aspx Wed, 24 Nov 2010 21:39:56 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-bargains-may-be-best-after-the-holidays-800294851.aspx Prospective car buyers may be in the shopping mood, but now may not be the best time to do so.

Senior analyst for automotive website Edmunds.com Jessica Caldwell says the economic rule of supply and demand can make car prices edge upwards this time of year.

"During the automaker bankruptcies, many people went to the showrooms expecting to be met by grateful dealers offering bargain basement prices - and the surge in demand actually raised the cars' prices," says Caldwell. "The same could happen during traditional holiday sales and year-end close-out periods."

As with most major purchases, consumers should do their research. Motorists looking for a deal can check prices online as well as by visiting a car lot. It's wise for prospective new car buyers to keep all costs in mind before signing on the dotted line.

If a car is beginning to deteriorate, motorists should begin looking for a vehicle before their current one fails. By planning ahead, a consumer can wait for a bargain, rather than purchasing a car while in a pinch. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/car-bargains-may-be-best-after-the-holidays-800294851.aspx Wed, 24 Nov 2010 21:32:37 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/economy-wont-put-an-end-to-holiday-spending-800294846.aspx Holiday season is in full swing. Along with candy canes and festive lights come sales and store bargains. With the economy still facing tough conditions, some shoppers may try to use budgeting tools to prevent themselves from going overboard.

According to a survey by market research firm Invoke Solutions, three-quarters of respondents said economic conditions are going to affect their holiday purchases this year. Money is particularly of concern for women older than 50 and those with household incomes ranging between $25,000 and $49,000.

There are numerous ways to cut back on expenses. The survey found some will reduce their travel plans while others reserve presents for only children.

Invoke executive vice president of research Peter Mackey says Christmas will still be celebrated with gifts, but perhaps with fewer high-end splurges as in the past.

"We are likely to see some reduction in spending this holiday season, particularly among those earning $50,000 or less who continue to struggle to low unemployment and mortgage woes," says Mackey. "But kids need not worry. Santa will still come for them. Others in the family, however, will have to get their holiday jollies from the good food and companionship."

Where and how consumers do their shopping may also change somewhat this year. A Western Union survey conducted with Wakefield Research found many consumers are losing their faith in getting big deals on "Black Friday."

More than 50 percent of survey respondents said they believe they ended up spending more than they saved during the Black Friday extravaganza last year. Some of that may be due to purchasing items that weren't intended to be gifts.

Furthermore, the study found the number of those who will be giving cash increased 8 percent from last year. Western Union senior vice president and general manager of U.S. money transfer product management Victoria Lopez-Negrete says giving green is easier and is likely to be just what people need.

"No gift is as 'one-size-fits-all' as cash," says Lopez-Negrete. "This year consumers are likely to take a more wallet-conscious and sanity-saving approach to Black Friday and skip it altogether by choosing to give cash."

For those purchasing gifts, there are ways to make the most out of the deals. Online store ShopAtHome.com recommends shoppers decide what they want to buy before they hit the mall or go online. If people know what they are looking for, they can compare prices in advance to ensure they get the best deal.

The savings don't stop there. The website says consumers should take their bargain hunting one step farther. ShopeAtHome.com says shoppers should look for coupons, rebates and free shipping deals as well. When it comes time to pay for items, the online retailer says swiping a credit card that offers rewards will help shoppers get the most out of their spending.

One of the best ways to save money, however, is by not purchasing frivolous gifts. Just because an item may be a great bargain doesn't mean it's worth the money if it won't get used. Sometimes a homemade gift from the heart can mean more than something bought in a store. Baked goods or an offer to do chores and home repairs can be a much appreciated present. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/economy-wont-put-an-end-to-holiday-spending-800294846.aspx Wed, 24 Nov 2010 21:29:23 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/credit-risk-improves-in-third-quarter-800294843.aspx Consumers may be improving financial management strategies and their credit worthiness.

The third quarter of 2010 saw consumer risk decline, according to a report from TransUnion. This marked the third consecutive period consumers improved their standing with the organization and lenders.

TransUnion's Credit Risk Index dropped 0.9 percent during the third quarter. Chet Wiermanski, global chief scientist for the organization, said there is optimism consumers will continue payments on time and live within their means.

"Consumers have made great strides in reducing and effectively managing their debt burden, which is encouraging," Wiermanski said.

The holiday shopping season could buck the trend, as some consumers may rely on credit card debt to buy gifts. However, a recent report poll From Green Dot showed 69 percent of consumers said they planned on staying away from plastic while making seasonal purchases.

If consumers continue their frugality, they may find it easier to gain further access to loans and credit card debt. Lenders have been especially careful since feeling the effects of the recession. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/credit-risk-improves-in-third-quarter-800294843.aspx Wed, 24 Nov 2010 21:24:53 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ftc-passes-rule-for-mortgage-debt-assistance-800294836.aspx Financial problems have caused many consumers to face difficulty paying off their mortgage debt.

While the government offers a number of mortgage debt assistance programs, there are also private companies trying to help consumers. However, the Federal Trade Commission (FTC) recently passed a final rule to ensure homeowners are protected from scams associated with home loan assistance.

Starting January 31, 2011, companies offering home loan debt modification or rescue services cannot collect advance fees unless they have provide a consumer with an offer on paper from their lender. FTC Chairman Jon Leibowitz said Americans have already lost millions of dollars during a time when money is tight.

"By banning providers of these services from collecting fees until the customer is satisfied with the results, this rule will protect consumers from being victimized by these scams," Leibowitz said.

Mortgage relief companies work by negotiating with lenders on behalf of homeowners to avoid foreclosure. An increasing number of houses are facing the auction block as a result of recessionary difficulties. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/ftc-passes-rule-for-mortgage-debt-assistance-800294836.aspx Wed, 24 Nov 2010 21:18:23 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fed-report-shows-consumer-credit-card-debt-keeps-dropping-800294832.aspx Consumers have cut back on credit card debt use in the face of increased unemployment and a generally difficult economic climate. 

Last year saw the total amount of consumer revolving credit decline 9.6 percent. This type of debt is mostly comes from credit cards, and fell to a total of $865.8 billion in 2009. 

The trend has continued this year, as the first and second quarters saw annualized drops of 8.5 and 7.2 percent, respectively. Preliminary figures for the third part of 2010 show a further decline of 8.8 percent. 

While this may indicate increased fiscal responsibility by consumers paying off credit card debt, declines could also be attributed to banks having to write off bad accounts. 

Because lenders have had to large losses, securing new credit has become more difficult for some consumers. Banks are being more careful to minimize financial risk.   http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/fed-report-shows-consumer-credit-card-debt-keeps-dropping-800294832.aspx Wed, 24 Nov 2010 21:13:27 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/8-ways-to-teach-your-kids-good-money-habits-800344812.aspx Wondering how to teach your kids about money? Here are eight common-sense ways to fit smart money lessons into your family's daily life.

1. Give them money of their own to learn with.

Experience is a great teacher, and having a little allowance money is an important way for kids to learn to deal with money. You might consider basing the amount on their age. It also helps to consider the cost of living in your area and what they'll be responsible for buying with the money. After all, snacks and toys cost a lot less than clothing.

2. Help them set and work toward financial goals.

Before too long, your child will set her mind on something that costs a lot more than her allowance. That's your chance to help her learn to budget. It's important for kids to learn that patience and careful spending can help them meet long-term financial goals. (Of course, "long-term" is a lot shorter for a four-year old than a twelve-year old.)

3. Don't hide your finances from them.

Sometimes parents feel like they'll be putting a burden on their kids by talking about their finances. Those same well-meaning parents often end up with their own burden, as the kids want things that are beyond the family budget. Sharing certain aspects of your financial life with your kids gives them the framework they need to understand why you say "no" when you do. It also makes sure they won't head out into the world blind.

For example, you might talk through some of your financial priorities with them. Explain situations where you've had to choose one thing over another (like a bigger home instead of a new car). Let them know how you felt about it, and why it's important to make such choices.

4. Let them experience the thrill of earning their own money.

When kids make the connection between jobs and wages, it opens up a whole new world for them. Not only will they understand the value of hard work, but they'll also learn to appreciate each dollar they earn.

5. Let them make mistakes.

At some point, your child will make a bad decision with their money. It's important that you warn them ahead of time about whatever risks they might be taking (like buying a low-quality toy that's likely to break). Once you've warned them, let them make their own decision.

When they get disappointed later on, help them understand what happened. But do them a favor and resist the urge to give them replacement money. After all, if you're giving them an allowance and opportunities to earn money, they can build up the funds again on their own.

6. Help them become savvy shoppers.

Coupon clipping might be second nature to you now, but you weren't born that way. The same probably goes for learning to compare prices, budget your spending, use a debit card, watch for sales, or decide between brands. Your children need to be actively taught these same lessons.

7. Put things in terms they can understand.

Personal finance can be complicated, but it doesn't have to be. The most important lessons that kids need to learn about money can often be boiled down to very basic concepts. For example, choosing to buy something means you have less money available to buy another thing. When you work, you receive money in return. If you don't have enough money for something, you need to save up for it. Get creative with your kids, and use whatever is handy to teach them lessons like these.

8. Give incentives for saving.

Saving is a skill that so many Americans have lost. You can help your child learn to love saving by paying a simplified form of interest on the money they choose not to spend. For example, for every $10 left in their piggy bank at the end of the month, you could contribute another dollar or two. They might not be able to grasp the intricacies of banking, but they'll certainly understand the extra bills in their wallet. And that's a very valuable lesson in itself. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/8-ways-to-teach-your-kids-good-money-habits-800344812.aspx Mon, 14 Jun 2010 17:46:57 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-to-make-saving-a-no-brainer-800344795.aspx We all know putting money away for a rainy day is the wise thing to do—but that doesn't make it any easier. Here are a few ways to help coax more dollars into your savings account without feeling deprived.

Pay yourself first.

What happens when you have $10 extra in your pocket? Unless you have a specific reason to hold onto it, chances are you'll find something to spend it on before too long. That same thing happens month by month in your checking account.

If you're looking for a no-fail way to get yourself to save each month, try paying yourself first. Each payday, take the money you want to save out of your checking account before you pay any bills. (You could link a savings account to your checking account so the transfers are quick and easy.)

Afraid you'll run out of cash? As long as the money you're saving is truly extra, you should be fine. Plus, you'll miss the money a lot less than you might expect.

Go slow and steady.

You'll probably need some time to adjust to having less money to spend. So start small. Some people simply take a dollar bill out of their wallet every day; they don't even miss it, but it adds up to $90 in three months. If you've got more room in your budget, start with $5 or $10 a day. Each month, increase the amount by a few dollars.

Maybe $5 a day hardly sounds worth it. But after just six months, you'll have almost $1,000 saved up. That's definitely worthwhile. When it comes to saving, even $1 is better than none.

Have a clear goal.

Just like that extra $10 bill in your pocket, a savings account with no specific goals is easy to dip into. A lot of people start by saving an emergency fund of $1,000 - enough to get them through a car repair or broken water heater without relying on credit cards. You could start there, or by saving for holiday gifts, your next vacation, or even your next car. The goal can be general, but it should help you stay focused.

Your goal should include what you're saving for, how much you want to save in total, and when you’d like to reach that amount. For example, if you start saving up an $800 holiday gift fund in April, you'll probably want all the money saved by December. That’s about $25 a week.

Once you break it down and decide exactly what you’re saving for, the whole task feels easier.

The most important thing to do is...

Start! Life is full of surprises, so don't bother waiting until everything's taken care of (because that day might not come). http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/how-to-make-saving-a-no-brainer-800344795.aspx Mon, 14 Jun 2010 17:41:46 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/insuring-a-teen-driver-in-a-single-parent-household-800341882.aspx Whether you’re single, divorced, or married, your new teen driver will need insurance coverage as soon as they’re licensed.

For any teen, a driver’s license is a huge rite of passage, heralding a whole new phase of life and independence. As a parent, there’s a lot to think about. And making sure your teen driver is insured is one of the most important things you can do to safeguard their well-being — and protect your own hard-earned assets. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/insuring-a-teen-driver-in-a-single-parent-household-800341882.aspx Sun, 13 Jun 2010 16:39:19 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/is-all-debt-bad-800344802.aspx If you're an American adult, chances are you have some sort of debt. As a nation, we had $2.46 trillion of debt as of June 2007. And that doesn't include mortgages. That's an average of $8,200 of car loans, student loans, credit cards, and other personal loans for each and every one of us (including newborn babies).

Looking at those statistics, you might assume that debt is either very good (since we have so much of it), or very bad (for the same reason). The truth is, it's neither.

Debt is a tool. It's unavoidable for most people-especially homeowners, college students, and entrepreneurs. Depending on how it's used, debt can be an investment. For example, the average college student graduates with about $20,000 in loans, but will make about $900,000 more than the average high-school graduate over the course of her career.

The biggest questions are, "What opportunities does this debt offer me, and what are the risks?"

Let's look at a few common situations:

A New Kitchen

Ada and Leon are dying to renovate their kitchen, and it will cost about $20,000. They’re thinking of using their home equity line of credit (HELOC) to fund the project.

Good Idea?
As long as they can afford the loan payments, Ada and Leon are making a really smart choice. The interest on their HELOC is probably lower than their credit cards or a personal loan, and it’s tax-deductible. The kitchen updates will raise the value of their home and make life more comfortable. Plus, this is exactly what a HELOC is meant for.

The Emergency Credit Card

Lara had planned to stick to her shopping list ... until she came across the clearance sale at her favorite boutique. She splurges on a few outfits, but knows her checking account balance won’t cover the total. Instead, she pulls out her emergency credit card.

Good Idea?
Lara might have gotten a great deal on her new clothes, but we all know a sale doesn’t count as an emergency. If she doesn’t have the extra cash to cover her purchase now, there’s a good chance she won’t have it next month either. This one time probably won’t do too much harm, but hopefully Lara isn’t in the habit of spending money she doesn’t have.

Getting Out of Debt

Gordon's been in debt for most of his adult life. He's cleaning up his finances now, and wants to pay as little interest as possible until he gets his final debts paid off. He's thinking of using his HELOC to pay off three credit cards and his high-interest car loan.


Good Idea?
By the numbers, Gordon's making a smart choice - especially if consolidating helps him to pay off his debt faster. He needs to remember that his house is the collateral for his HELOC. So if he can’t make the loan payments, he could lose his home in foreclosure. He's used to those debt payments coming out of his monthly budget, so as long as he doesn’t run up new charges on his credit cards, he should be just fine - and soon debt-free. http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/is-all-debt-bad-800344802.aspx Tue, 08 Jun 2010 17:45:01 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/6-simple-ways-to-save-energy-around-the-home-800327202.aspx With energy prices trending upward in recent years, it definitely pays to use less electricity, natural gas, and heating oil to keep your home running. Here are six of the simplest, easiest, and cheapest places to start:

1. Do an energy audit of your home.

It's not hard to conduct your own simply energy audit. The goal is to find leaks where heat or cold air can escape, check insulation levels, inspect your furnace and air conditioner, and look for ways to light your home more efficiently. Check out the full home energy audit instructions provided by the U.S. Department of Energy.

2. Install a programmable thermostat.

No more having to remember to turn the temperature down before you go to bed or leave for work! Programmable thermostats tend to be both convenient and easy to set up. The idea is, you set the temperature to be comfortable when you're typically home (at night, in the early morning, and on weekends) and change to a more energy-efficient temperature when you're at work or asleep.

3. Switch to energy-efficient appliances and fixtures.

The next time a light bulb burns out, be ready to replace it with a compact-fluorescent bulb. They cost more up-front but save you money in the long run because they last longer than incandescent bulbs and require less energy to do their job.

Same goes for appliances: The next time you're in the market for a new washer, refrigerator, or other appliance, be sure to take the Energy Star rating into account.

For the appliances you have now, try using power strips to limit the amount of electricity they use when they aren't on. It's a lot easier to turn off one power strip than unplug everything each time you're done using a machine.

4. Take time to winterize your home.

Inefficient heating is one of the biggest ways to waste money and fuel in the home. In the fall (while it's still comfortable out), check the weather stripping around your windows and doors, and at the base of your walls. Add more wherever it's needed. There are several kinds of weather stripping materials out there. The most common are felt or vinyl, and are semi-permanent. You can also cover your windows with clear plastic sheeting, if the windows themselves are drafty.

5. Clean your filters.

In summer and winter, when your air conditioner and furnace are working hard, make sure they're as efficient as they can be. Check your equipment's owners manual to see how often you should clean or replace the filter. And keep in mind that many filters can be washed and reused—saving you money up front and over time.

6. Adjust your hot water use.

Your water heater can use 14 to 25 percent of all the energy used in your home, so it pays to make it as efficient as possible. If you think your water heater temperature might be too hot, lower it a bit. It'll take less fuel to keep the tank at the set temperature. You can also easily save money by watching your clothes in cold water, installing low-flow showerheads, and making sure to fill the dishwasher all the way before running it.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/6-simple-ways-to-save-energy-around-the-home-800327202.aspx Sun, 06 Jun 2010 10:55:47 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/im-engaged-is-my-ring-covered-under-my-renters-or-homeowners-policy-800325696.aspx If your insurance policy includes coverage for personal property, the ring and your other jewelry will automatically be covered, up to your coverage limit. To know for sure whether that coverage is enough, you'll need to check your insurance policy or call your agent. You'll also need to know about how much the ring is worth.

Here's an example: Say your renters insurance or home insurance includes $5,000 of coverage for jewelry. If your engagement ring needs $4,000 worth of coverage and you have $2,000 worth of other jewelry, you'll want to adjust your policy. On the other hand, if the ring is your only valuable jewelry, it would be fully covered with $1,000 to spare.

There's something else to keep in mind: Personal property coverage has different coverage limits for different types of losses. For example, your policy's coverage limit for theft could be $2,000 for theft of jewelry with a maximum of $1,000 for each item.

You can also add extended coverage on jewelry, watches, and furs.

It's a good idea to talk to your agent to make sure you completely understand your policy and have the coverage that's right for you.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/im-engaged-is-my-ring-covered-under-my-renters-or-homeowners-policy-800325696.aspx Sat, 05 Jun 2010 17:22:10 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/im-renting-out-part-of-my-house-do-i-need-special-or-extra-home-insurance-800325689.aspx Renting out part of your house can be a great source of passive income. Good for you!

When it comes to home insurance, your policy is made up of several types of coverage. One is designed to protect the structure–your home itself. Another is meant to protect what's inside the home–your stuff.

Your home insurance policy will protect your home itself whether you rent out part, all, or none of it. But your tenant's possessions will only be covered if they're related to you. You might consider encouraging them to get renters insurance.

If you're renting out a finished basement or garden apartment, keep in mind that the drywall, carpeting, and fixtures aren't protected by structure coverage. You may need to increase your personal property coverage to make sure they're protected in case of a fire, or other damage.

Remember, it's always a good idea to talk to your agent if you have questions about your home insurance policy.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/im-renting-out-part-of-my-house-do-i-need-special-or-extra-home-insurance-800325689.aspx Sat, 05 Jun 2010 17:20:40 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/im-getting-divorced-what-should-i-do-about-my-auto-insurance-policy-800341888.aspx Splitting a partnership can be very challenging. Emotional, legal, and financial concerns are myriad, and it can be easy for things to fall through the cracks. However, as you’re dividing and redrafting legal and financial assets, it’s important to revisit your auto insurance policy as well.

First and foremost, you’ll need to remove your ex-spouse from your existing policy so that s/he can purchase a separate, individual policy (or vice versa). If you were insured with Allstate before your divorce, you may be able to split your original, joint policy into two new auto policies. That way, you’ll be pre-qualified for coverage.

As your marital status changes, so will your needs and specifics. For instance, you may no longer benefit from a multi-car discount, and your housing situation may be shifting. But a decrease in assets might mean that it’s time to readjust your coverage limits. (With fewer assets to protect, you may now need less coverage, which could reduce your premiums.) If your budget is tighter, you may want to investigate raising your deductible or reducing your Comprehensive Coverage.

Regardless, there’s a lot to consider, and each situation is different. So be sure to talk to your Allstate agent about your unique concerns, needs, and changing financial situation. Your agent will work closely with you to make this transition as smooth as possible, with an eye to keeping your new premiums down. It’s just another way you’re in Good Hands®.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/im-getting-divorced-what-should-i-do-about-my-auto-insurance-policy-800341888.aspx Thu, 13 May 2010 16:40:35 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/i-have-two-cars-and-a-new-teen-driver-which-vehicle-should-my-teen-drive-800341876.aspx If you own two vehicles, and one car is older than the other, it’s most cost effective to have your teen drive the older car. In terms of the fine print, your teen should be named a “restricted operator” on your principle vehicle. (A restricted operator is someone who drives the car less than 25% of the total time it’s driven.)

In general, newer, more expensive cars are more expensive to insure. While it’s true that new cars usually have impeccable safety ratings and come equipped with top-of-the-line factory-standard equipment (and therefore may qualify you for various safety discounts), it’s also true that repair and replacement costs tend to be higher for new or newer vehicles than for used vehicles.

Alternately, you could choose to provide a car for your teen’s regular use (such as an economy and/or used car). In this case, you could rate your teen as the “principal operator” of that vehicle without triggering a huge impact on your premiums.

Talk to your Allstate agent before you make any changes to your auto insurance policy, and ideally, before you purchase a car for your teen. Having this information at hand will give you a better chance of saving money when it comes to getting your new driver safely out on the road.

And be sure to visit Allstate’s Teen Driving Resource Center to download our Interactive Parent-Teen Driving Contract. It can help you put in writing the driving rules you and your teen set together. You can create and print your own customized version and get information from an online community of experts, parents and teens.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/i-have-two-cars-and-a-new-teen-driver-which-vehicle-should-my-teen-drive-800341876.aspx Thu, 13 May 2010 16:36:11 http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/3-ways-to-get-more-from-a-college-education-800329794.aspx It used to be that simply having a college degree meant you'd be able to get a better job with higher pay – an all-around more solid career. But that's not always the case these days. As more and more people earn bachelor's degrees, it becomes less certain that each will land in a career that makes their initial investment worthwhile.

With some advance planning, you can help raise the odds that your college education (or your child's) will bring real value and launch you into the sort of career you want. Here are five places to start:

1. Keep the debt down.
The more you pay out (both today and in the future), the more you'll have to earn later on to offset the costs. Consider a state university instead of a private school. Apply for every grant you're eligible for. Take general classes at the local community college. If your employer offers tuition reimbursement, do what you can to make sure your classes will qualify. Even if the difference feels like "a drop in the bucket" now, you'll be glad later that you kept your debt load down.

2. Pick your major strategically.
There's no way around it. Some courses of study lead right to in-demand, high-paying careers. (Think engineering.) Others have a bad reputation for leading nowhere specific. (English literature usually gets a bad rap.) Being savvy about your major can give you a big headstart.

Do some research about the kinds of career you think you're interested in. Talk to a career counselor before you decide. Use an internship or part-time job to test whether the field might turn out to be a good fit. And if your heart is set on an "impractical" major, consider balancing it with a career-oriented minor or second major.

3. Become a good thinker.
You'll get out of college whatever you put into it. No matter what your major is, one of the best things you can learn is how to learn. Strong reasoning skills are always in demand. They're useful in every industry and just about every job. Understanding your biases, strengths, and weaknesses is invaluable in the workplace, and can put you ahead in your career later on.

It takes hard work, that's for sure. But the benefits of these three simple things will last the rest of your life.  http://www.allstate.com/insurance-industry-news/money-saving-news-and-tips/3-ways-to-get-more-from-a-college-education-800329794.aspx Fri, 07 May 2010 10:51:39