When was the last time you reviewed your car insurance? If you are like most people, it was probably when you first purchased the policy and you have had it automatically renewed ever since.
If that is the case, or if you haven't reviewed your insurance in the past year, you are likely spending more than you need to on your auto insurance.
You should review your car insurance on a yearly basis. Many people like their current insurance company and don't want to switch. But even if you are perfectly satisfied with the insurance company, bringing in competitive offers from other insurers can help you negotiate a better rate. If you are willing to switch companies, you can likely save even more money.
Here are a few steps you can take to save money on your auto insurance:
1. Use the Internet
The Internet has greatly evened the playing field when it comes to insurance. It has increased competition between car insurance companies and given consumers a much easier way to compare rates and analyze coverage that insurance companies offer.
There are a wide variety of insurance comparison sites that you can use to compare rates. Simply use any search engine and plenty will show up. It pays to use several since they may contain different car insurance companies in their engines. All you need to do is input your information and if a better deal appears, you're on your way to saving money.
If you don't want to switch car insurance companies, take in your lower quote and explain that you don't want to switch, but have received a better offer. Your insurance agent will do everything in his or her power to get you a competitive price. From there you can choose whether to stay or go to the other company. Either way, you will be paying less on your insurance premiums.
2. Raise Your Deductible
Another way to lower your car insurance premiums is to raise your deductible -- the amount you have to pay before your insurance kicks in to cover a claim.
If you have $1,500 worth of damage to your car and a $500 deductible, you must pay the first $500 and the insurance company would pay the rest. While a lower deductible may sound preferable, it means you'll pay much more for the insurance -- even if you don't use it.
You should raise your deductible as high as possible, as long as you will have the money to cover it should you ever have an accident. Moving your deductible from $500 to $1,000 can knock up to 30% off your yearly car insurance payments.
3. Drop Collision and/or Comprehensive Coverage
You also need to take into consideration what your car is worth. If your car is older, you may be carrying too much collision insurance, which covers damage to the vehicle sustained in an accident, or comprehensive coverage, which covers the cost of the car if it is stolen or damaged in some other way.
If the car has a Kelley Blue Book value of $2,000 or less, you may want to drop these coverages altogether. It's important to run the numbers and compare what you will pay for the insurance vs. how much you could get back if you ever have to make a claim. Between the insurance payments and the deductible, you'll likely come out ahead without any collision or comprehensive coverage for an older, less valuable car, even if something happens to it.
4. Get a List of Discounts
You may be surprised at the number of things that can get you a discount on your auto insurance, many of which you probably never knew about. That is because many insurance agents won't always tell you all the discounts available unless you specifically ask for them.
Since each insurance company is independent of the others, some may offer specific discounts that others don't. Here is a list of some of the possible discounts:
Safe drivers: If you have had a safe driving record, it can qualify you for a discount.
Courses: Some companies have approved defensive-driving courses you can take to brush up on your driving skills that will entitle you to a discount. These courses can sometimes cost you a few dollars, but the savings outweigh the expense and can be applied to several years of insurance bills. Much like defensive-driving courses, a driver's education class may also qualify you for a discount.
Anti-theft and recovery devices: Some anti-theft devices, like steering wheel locks, will get you a discount on your insurance. Likewise, devices like LoJack or OnStar that help locate a stolen vehicle also can lessen your premium.
Seat belts: By signing a paper that indicates that you always wear your seat belt when driving, you can get a discount.
Passive restraint systems: If your car comes with passive restraint systems, you may be eligible for a discount.
Multiple vehicles: If you insure more than one vehicle with the company, the vehicles after the first car usually will be eligible for a hefty discount.
Multiple products: Most insurance companies offer more than just car insurance. If you also buy homeowner's, renter's or life insurance from the same company, you will usually get a discount.
Policy renewal: If you have been with the same company for a number of years, you may qualify for a discount when renewing your policy.
Senior citizens: Many car insurance companies offer discounts for senior citizens.
Low mileage: If you don't drive a lot, you can qualify for a discount.
Good students: Students that meet a certain grade-point average may get a discount.
Military service members: Those who serve in the armed forces can often get a discount.
Low-risk occupations: If you work in a job that is deemed a "low-risk" occupation by the insurance company, you may get a discount.
Professional organizations and clubs: If you belong to certain organizations such as AAA or AARP, you may qualify for a discount.
Credit score: Insurance companies have found a correlation between credit scores and claims. If you improve your credit score, you'll likely get a discount on your insurance.
Dependable cars: While this won't necessarily save you money at the moment, the type of car you own can have a dramatic effect on the cost of your insurance and is something to consider the next time you purchase a car. Choosing a safe, dependable car that doesn't have a lot of costly repairs can save you a lot in insurance payments over the years. Your insurance company can provide you with a list of cars that are the least expensive to insure.
By taking the time to review your car insurance rates yearly, you'll make sure that you save money and aren't paying more than you need to be.
Showing posts with label car insurance. Show all posts
Showing posts with label car insurance. Show all posts
Friday, June 29, 2007
Wednesday, June 27, 2007
4 Ways Most People Overpay for Car Insurance
Tax-Time: you’re either waiting for your gravy train tax refund, or you’re fearing the event of paying even more to Uncle Sam. Car insurance can take on a similar dichotomy, but the difference is that you don’t get a refund for overpaying for coverage — it just renews and overcharges you until you find a more affordable policy. Most people don’t see this, and miss out on hundreds of dollars in savings that could be used like a big fat tax refund.
Auto Insurance Quotes are Not Final: How to Make Them Lower
When you shop and compare multiple auto insurance quotes, recognize that even if the quotes are about the same as your current policy, or lower for that matter, they can still be even lower. There may be too much coverage, or extra options tucked into the quote that you really don’t need.
Although higher limits provide you with greater protection against possible losses, you may be carrying limits that are not in line with the value of your total assets and your lifestyle. As you review your quote, consult with an insurance agent before making any final coverage decisions. Additionally, you may be a member of an auto club that provides towing and labor protection, therefore, paying for it in your auto policy could be unnecessary. The same may hold true for car rental coverage: do you really need it?
Trying to Make “Accidents” More Affordable
Many drivers make the mistake of carrying the lowest deductibles in order to help offset the costs associated with filing a claim. The fact remains, the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor, you could be spending the same out-of-pocket amount regardless. Save on your policy, not the accident; raise your deductibles if you can afford to.
Paying for the Policy in Monthly Installments
Just like any bill, it is common to pay for insurance in monthly installments, either by check or automatic bank withdrawal. Be aware that additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, annual). A monthly fee of even $7 can add up to $84 over 12 months.
Overpaying for Tickets and Moving Violations
Perhaps you deserve a higher rate for your driving record, but don’t let the insurance company unduly punish you. Although having moving violations on your driving record can limit your selection of insurance companies, don't believe that finding affordable car insurance is as intimidating as appearing in traffic court and paying fines. To the contrary, there are companies that specialize in insuring higher risk drivers at reasonable prices. The only way to identify such companies though, is to compare multiple quotes from multiple companies.
Don’t count on your tax refund to save money! Instead, you may be able to save hundreds by simply taking 10 minutes to analyze your auto insurance policy. Even if last year seemed uneventful, the chances are good that your individual circumstances have changed enough to qualify you for lower car insurance rates. And even if nothing changed on your end, many large insurance companies may have reduced their rates since you last shopped.
Auto Insurance Quotes are Not Final: How to Make Them Lower
When you shop and compare multiple auto insurance quotes, recognize that even if the quotes are about the same as your current policy, or lower for that matter, they can still be even lower. There may be too much coverage, or extra options tucked into the quote that you really don’t need.
Although higher limits provide you with greater protection against possible losses, you may be carrying limits that are not in line with the value of your total assets and your lifestyle. As you review your quote, consult with an insurance agent before making any final coverage decisions. Additionally, you may be a member of an auto club that provides towing and labor protection, therefore, paying for it in your auto policy could be unnecessary. The same may hold true for car rental coverage: do you really need it?
Trying to Make “Accidents” More Affordable
Many drivers make the mistake of carrying the lowest deductibles in order to help offset the costs associated with filing a claim. The fact remains, the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor, you could be spending the same out-of-pocket amount regardless. Save on your policy, not the accident; raise your deductibles if you can afford to.
Paying for the Policy in Monthly Installments
Just like any bill, it is common to pay for insurance in monthly installments, either by check or automatic bank withdrawal. Be aware that additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, annual). A monthly fee of even $7 can add up to $84 over 12 months.
Overpaying for Tickets and Moving Violations
Perhaps you deserve a higher rate for your driving record, but don’t let the insurance company unduly punish you. Although having moving violations on your driving record can limit your selection of insurance companies, don't believe that finding affordable car insurance is as intimidating as appearing in traffic court and paying fines. To the contrary, there are companies that specialize in insuring higher risk drivers at reasonable prices. The only way to identify such companies though, is to compare multiple quotes from multiple companies.
Don’t count on your tax refund to save money! Instead, you may be able to save hundreds by simply taking 10 minutes to analyze your auto insurance policy. Even if last year seemed uneventful, the chances are good that your individual circumstances have changed enough to qualify you for lower car insurance rates. And even if nothing changed on your end, many large insurance companies may have reduced their rates since you last shopped.
Monday, June 25, 2007
Actual Auto Insurance Statements
The other car collided with mine without giving warning of its intentions.
Windscreen broken. Cause unknown. Probably voodoo.
I thought my window was down, but I found out it was up when I put my head through it.
A truck backed through my windshield into my wife's face.
A pedestrian hit me and went under my car.
The guy was all over the road. I had to swerve a number of times before I hit him.
I pulled away from the side of the road, glanced at my mother-in-law, and headed over the embankment.
In my attempt to kill a fly, I drove into a telephone pole.
I had been shopping for plants all day and was on my way home.
As I reached an intersection, a hedge sprang up, obscuring my vision and I did not see the other car.
I had been driving for 40 years when I fell asleep at the wheel and had an accident.
I was on my way to the doctor with rear end trouble when my universal joint gave way, causing me to have an accident.
As I approached the intersection, a sign suddenly appeared in a place where no stop sign had ever appeared before. I was unable to stop in time to avoid the accident.
I saw a slow moving, sad faced old gentleman...as he bounced off the roof of my car.
No witnesses would admit having seen the mishap until after it happened.
To avoid hitting the bumper of the car in front, I struck the pedestrian.
My car was legally parked as it backed into the other vehicle. An invisible car came out of nowhere, struck my car and vanished.
On approach to the traffic lights the car in front suddenly broke.
No one was to blame for the accident, but it would never have happened if the other driver had been alert.
I was sure the old fellow would never make it to the other side of the road when I struck him.
The pedestrian had no idea which direction to run, so I ran over him.
The indirect cause of the accident was a little guy in a small car with a big mouth.
The car in front hit the pedestrian, but he got up so I hit him again.
I was thrown from my car as it left the road. I was later found in a ditch by some stray cows.
I didn't think the speed limit applied after midnight.
I told the police that I was not injured, but on removing my hat found that I had a fractured skull.
The telephone pole was approaching, I was attempting to swerve out of its way, when it struck my front end.
Windscreen broken. Cause unknown. Probably voodoo.
I thought my window was down, but I found out it was up when I put my head through it.
A truck backed through my windshield into my wife's face.
A pedestrian hit me and went under my car.
The guy was all over the road. I had to swerve a number of times before I hit him.
I pulled away from the side of the road, glanced at my mother-in-law, and headed over the embankment.
In my attempt to kill a fly, I drove into a telephone pole.
I had been shopping for plants all day and was on my way home.
As I reached an intersection, a hedge sprang up, obscuring my vision and I did not see the other car.
I had been driving for 40 years when I fell asleep at the wheel and had an accident.
I was on my way to the doctor with rear end trouble when my universal joint gave way, causing me to have an accident.
As I approached the intersection, a sign suddenly appeared in a place where no stop sign had ever appeared before. I was unable to stop in time to avoid the accident.
I saw a slow moving, sad faced old gentleman...as he bounced off the roof of my car.
No witnesses would admit having seen the mishap until after it happened.
To avoid hitting the bumper of the car in front, I struck the pedestrian.
My car was legally parked as it backed into the other vehicle. An invisible car came out of nowhere, struck my car and vanished.
On approach to the traffic lights the car in front suddenly broke.
No one was to blame for the accident, but it would never have happened if the other driver had been alert.
I was sure the old fellow would never make it to the other side of the road when I struck him.
The pedestrian had no idea which direction to run, so I ran over him.
The indirect cause of the accident was a little guy in a small car with a big mouth.
The car in front hit the pedestrian, but he got up so I hit him again.
I was thrown from my car as it left the road. I was later found in a ditch by some stray cows.
I didn't think the speed limit applied after midnight.
I told the police that I was not injured, but on removing my hat found that I had a fractured skull.
The telephone pole was approaching, I was attempting to swerve out of its way, when it struck my front end.
Honey, I Wrecked the Porsche
Call it a metaphor for a prosperous, risk-embracing age or just call it bad driving.
Auto makers are turning out a new breed of supremely fast sports cars that sell for upwards of $250,000 and share many characteristics of purebred racecars. But as more of them hit the road, often in the hands of inexperienced drivers, a growing number are ending up wrapped around trees, smashed into guardrails or otherwise totaled in accidents.
In the past 18 months, drivers across the world have cracked up at least six rare $1 million Ferrari Enzos -- only 400 of which were built. In March, a California man rammed his $300,000 Lamborghini Murcielago into five parked cars; while in England, a 39-year-old driver caused an international stir among car enthusiasts by crashing a Bugatti Veyron -- an extremely rare $1.5 million turbocharged missile with a top speed of 253 miles per hour.
It's not just drunken celebrities doing the damage. On the way to an M.B.A. class near San Diego one recent morning, Nasar Aboubakare, a 40-year-old private-equity firm president, lost control of his new 550-horsepower Ford GT and wrenched it over a lane divider. "The car is like a wild animal," he says.
To compound matters, it's tough to be inconspicuous when you damage a $150,000 automobile. After Mr. Aboubakare's accident, several passing motorists snapped pictures while one leaned out the window of his pickup truck and shouted: "What an idiot!"
Police in wealthy enclaves across the country say these accidents are not unusual. A spokesman for the Beverly Hills Police Department says his officers "regularly" handle accidents involving exotic vehicles, while Sgt. Jeffrey Kelly from Boca Raton, Fla., says his department has logged two Ferrari crashes in the past two years. "We've had our fair share," he says.
According to the California Highway Patrol, the total number of accidents involving Aston Martins, Bentleys, Ferraris, Lamborghinis, Lotuses and Maseratis rose to 141 last year, an 81% increase from 2002, while overall crashes declined statewide during that period. Porsche, BMW and Mercedes-Benz, which sell a wider range of models, saw a 22% increase during that time frame.
These accidents are happening so regularly that a Web site called WreckedExotics.com2 -- which contains photos of dream cars reduced to smoking heaps -- added as many as 700 new examples to its gallery last year and says it attracts about 650,000 visitors a month. Founder Gregg Fidan explains the attraction this way: "It's like seeing a supermodel fall off the runway."
More Cars, More Crashes
See some of the top-of-the-line supercars and prototypes that auto makers have unveiled recently.One reason for the increase is that there are simply more of these so-called "supercars" on the road. CNW Marketing Research, a firm that analyzes the auto market, says Americans bought about 8,400 "ultra-luxury" sports cars last year -- more than three times the number from 2003. While the number of supercars registered in California is up sharply, the rate at which they are getting into accidents is still small -- just over 1% -- and hasn't changed appreciably since the state began breaking data down by make in 2002. (The statewide accident rate for all vehicles was 3%.)
Stefan Winkelmann, president and chief executive officer of Lamborghini, a unit of Volkswagen's Audi Group, says he's aware of "four or five" incidents involving one of the company's new 640-horsepower Murcielagos -- a small fraction of the nearly 500 models the company sold last year. Toscan Bennett, a spokesman for Ferrari, a unit of Fiat Group, says the company does not track the number of accidents involving its cars, but adds that several high-profile incidents may have contributed to a false impression that these crashes are common.
Auto makers say the rising horsepower is being offset by safety advancements ranging from all-wheel drive to ceramic brakes, rear-view cameras, extra airbags and monocoque safety cages that direct impact forces away from passengers. "The cars give themselves up for the safety of the driver," says Porsche spokesman Tony Fouladpour. Many supercars come with traction and stability control systems that automatically vary the power delivered to the wheels to help prevent drivers from sliding and skidding.
Insurance companies say that while the majority of supercar accidents do not result in serious injuries, there has been an uptick in collision claims on these cars. In some cases, rates are rising. Based on the rising cost of claims, State Farm says the same driver would have paid 9% more last year to buy physical damage insurance for a new Lamborghini Murcielago than in 2003.
Expensive sports cars have always been intimidatingly fast, but experts say the latest models are not just more powerful, they're also lighter: Ferrari's new 599 GTB Fiorano produces about .164 horsepower per pound -- a 21% improvement over the model it replaced. The trouble begins when overconfident drivers start trying to push the cars to speeds that even experienced drivers may not be capable of handling. "Generally speaking, the cars are well over the heads of the drivers," says Glenn Roberts, the owner of an auto-body shop in Fountain Hills, Ariz., that repairs damaged exotic cars.
The people buying these cars are also changing. Unlike previous supercar collectors who often babied their machines, they tend to drive about 4,000 to 6,000 miles per year -- more than double the average from a decade ago. And they're not getting any more mature: the median age for ultra-luxury sports-car buyers dropped to 47 last year from an average of 56 just 10 years ago, according to CNW. And you don't have to be an actuary to know that younger people are more likely to drive aggressively. A spokeswoman for Leland-West Insurance Brokers says most of the supercar claims the company handles each year involve men aged 25 to 40 driving newer high-performance cars too fast and losing control.
'Controllable' Speed
Adnan K. Mehmood, a 32-year-old fabric importer and stock trader from Miami, counts himself among those who don't believe a high-performance car should be pampered. He says he has driven his 2006 Lamborghini Murcielago Roadster faster than 191 mph a number of times on freeways. Mr. Mehmood says it's the engineering that gives him the confidence to go that fast. "When you are in the car, it's so stable," he says. "It's such a controllable speed. In a normal car when you are going 80 or 90, it feels like you are going really, really fast. In the Lambo, you are going 120 or 140 and honestly, it feels like it's stopped on the freeway. It feels like it's not moving."
He is awaiting delivery of Lamborghini's new Murcielago LP640 Roadster, which has an extra 60 horsepower and a new suspension design that will help make it one of the fastest cars the company has ever built -- traveling up to 211 mph and from 0 to 60 in 3.7 seconds. "I want to go to 200 mph," Mr. Mehmood says.
Veteran sports-car connoisseur Michael Fux says he has a pretty good idea why all these crashes are happening. The 64-year-old mattress entrepreneur from Miami, whose collection includes a Bugatti Veyron, a Ferrari 599, an Enzo and five Lamborghinis, says younger drivers are constantly challenging him to race. "These kids, they don't use their heads," he says. "They think they're back in the old Wild West."
Driving experts say most accidents in these cars happen when drivers take turns too fast for the road conditions or start turning prematurely and then snap off the accelerator to compensate. If the car's back end starts to fishtail, many inexperienced drivers will fail to steer in the direction of the sliding tail or will overcorrect by turning too severely in that direction. Both mistakes can cause a spin. "It's a symphony of inputs and adjustments to keep the car under control," says David Champion, senior director of Consumer Reports Auto Test Division.
For Anthony Almada, a 46-year-old nutritional biochemist and entrepreneur from Dana Point, Calif., the catalyst was a deceivingly slick road. While driving his $440,000 Porsche Carrera GT on a bend near his home at 80 miles per hour on a slightly wet road early last year, he says the car snapped into a spin. He followed the procedure he'd been taught in driving class and "put both feet in" -- pressing down on the brake and the clutch at the same time -- and hoped for the best. The car broadsided a brick wall and spun at least six times and caught fire. "It wasn't something I could have corrected," says Mr. Almada, who climbed out unhurt. "I was going too fast for the road conditions. It's that simple."
Another common mistake: failing to warm up the tires. Standing inside his garage last month at Classic Coach Repair in Elizabeth, N.J., owner Onofrio Triarsi points out two damaged Ferraris -- a red 360 that needs a new quarter panel and bumper and a blue 550 Maranello with similar damage. Both cars had been taken out on racetracks on cold mornings by drivers who had not given the tires enough time to heat up (and thus adhere better to the asphalt). When customers drive off now, Mr. Triarsi leaves them with the same advice: "Don't forget the tires."
In some cases, drivers say they got into trouble after shutting off the car's traction control system to get a more "authentic" sports-car experience. During a test for Car and Driver last spring in Italy, technical editor Aaron Robinson, 37, flicked off the electronic stability control in a 611-horsepower Ferrari 599 GTB Fiorano so he could get the vehicle's rear end to flare out around a curve for a photo. But after giving the car "too much throttle and not enough core steering," he says he wound up sideswiping a wall. "Any car with 600 horsepower is intimidating," Mr. Robinson says.
Many of these accidents are, of course, just examples of pure recklessness. The Bugatti Veyron owner who crashed in Surrey, England, this year was said to be traveling at least 100 mph on a country lane before colliding with a station wagon. He was cited by police for driving "without due care and attention." The 26-year-old who crashed his 2005 Lamborghini into five parked cars in Santa Monica, Calif., in March was reportedly racing at 75 mph around a 35 mph curve. He was charged with driving under the influence.
You don't have to buy one of these cars to trash one, either: New York's Gotham Dream Cars, one of a growing number of companies that allow people to rent supercar
High Speed, Low Clearance
Speed isn't always the culprit. Because of their odd dimensions and miniscule ground clearance, supercars have always been vulnerable to damage from curbs, speed bumps or even objects in the road. While driving his yellow Ferrari Enzo for only the third time, Ali Haas, a 51-year-old plastic surgeon from Florida, ran over a spool of wire on the road. In most cars this would have been a nonevent -- but in this case the low-slung Ferrari was knocked airborne, breaking its grip on the road and sending it skidding into a guardrail. "If I ran over that spool of wire in my Ford Expedition, probably nothing would have happened," Dr. Haas says.
Regardless of the cause, anyone who wrecks one of these cars has a more immediate problem than finding a mechanic: the possibility of public humiliation. After smashing his silver Ferrari 360 into a light pole in November in Palm Beach, Fla., David Riggs says none of the 50 or so onlookers who stopped to gawk asked him if he was OK. Instead, the 42-year-old says he heard comments like "wow, you are really having a bad day," "that is really a bummer," and "your toy is broke." "Nobody is really concerned if you are hurt," Mr. Riggs says.
Car companies say they do what they can to make sure their most powerful vehicles get into the hands of experienced drivers. Buyers of Ferrari limited-production cars like the Enzo "were chosen by the factory based on their history and loyalty to Ferrari," says the spokesman, Mr. Bennett.
Driving Academies
Manufacturers are also rolling out driver-education programs. Later this year, Bugatti plans to start offering buyers a "security driving course" at a test track near its factory in France. Ferrari has offered driver training in Italy since the early 1990s and just opened the first authorized school outside Italy last year in Mt. Tremblant, Canada. Lamborghini started offering winter and summer-driving academies last year, formalizing classes long offered by dealers.
Bentley offered its first driving class in the U.S. last year and Lotus is launching a driving school in the U.S. this month called the Lotus Performance Driving Experience outside Las Vegas that will include instruction in "the dynamics of skid control."
One recent driving-school graduate: Mr. Aboubakare, the private-equity company president who spun out his Ford GT. He hopes to be better equipped to drive the new Lamborghini Murcielago LP640 Roadster he is getting later this summer. "I think with training, I'm a little more equipped to drive the car," he says.
For auto makers, the horsepower binge is continuing to accelerate. Even in an era of high gas prices, some like Audi and Lexus are building or testing new supercar designs. The 2007 Chevrolet Corvette Z06 packs 505 horsepower and Ford recently introduced a $41,000 Mustang with 500 horsepower.
There's no sign people are less interested in speeding, either. Movies like "The Fast and the Furious" and "Redline" have glamourized the notion of driving fast on public roads while drivers have been using sites like YouTube to post videos of themselves making flamboyant maneuvers. Mix in the growing number of supercars, their soaring horsepower and the increasing number of states raising speed limits and "we have almost the perfect storm going on here," says Adrian Lund, president of the Insurance Institute for Highway Safety.
Standing in his garage on a Sunday morning last month, Mr. Almada pulls out what's left of his beloved Porsche Carrera GT: one severed headlight and one rear-wheel tire and brake assembly. Finally, from a shelf he built to hold surfboards, he pulls down his last keepsake, the car's badly scraped carbon-fiber wing. He stares at it for a few moments, then gently lays it down. "It's like the memento of a family member who passed away," he says.
Auto makers are turning out a new breed of supremely fast sports cars that sell for upwards of $250,000 and share many characteristics of purebred racecars. But as more of them hit the road, often in the hands of inexperienced drivers, a growing number are ending up wrapped around trees, smashed into guardrails or otherwise totaled in accidents.
In the past 18 months, drivers across the world have cracked up at least six rare $1 million Ferrari Enzos -- only 400 of which were built. In March, a California man rammed his $300,000 Lamborghini Murcielago into five parked cars; while in England, a 39-year-old driver caused an international stir among car enthusiasts by crashing a Bugatti Veyron -- an extremely rare $1.5 million turbocharged missile with a top speed of 253 miles per hour.
It's not just drunken celebrities doing the damage. On the way to an M.B.A. class near San Diego one recent morning, Nasar Aboubakare, a 40-year-old private-equity firm president, lost control of his new 550-horsepower Ford GT and wrenched it over a lane divider. "The car is like a wild animal," he says.
To compound matters, it's tough to be inconspicuous when you damage a $150,000 automobile. After Mr. Aboubakare's accident, several passing motorists snapped pictures while one leaned out the window of his pickup truck and shouted: "What an idiot!"
Police in wealthy enclaves across the country say these accidents are not unusual. A spokesman for the Beverly Hills Police Department says his officers "regularly" handle accidents involving exotic vehicles, while Sgt. Jeffrey Kelly from Boca Raton, Fla., says his department has logged two Ferrari crashes in the past two years. "We've had our fair share," he says.
According to the California Highway Patrol, the total number of accidents involving Aston Martins, Bentleys, Ferraris, Lamborghinis, Lotuses and Maseratis rose to 141 last year, an 81% increase from 2002, while overall crashes declined statewide during that period. Porsche, BMW and Mercedes-Benz, which sell a wider range of models, saw a 22% increase during that time frame.
These accidents are happening so regularly that a Web site called WreckedExotics.com2 -- which contains photos of dream cars reduced to smoking heaps -- added as many as 700 new examples to its gallery last year and says it attracts about 650,000 visitors a month. Founder Gregg Fidan explains the attraction this way: "It's like seeing a supermodel fall off the runway."
More Cars, More Crashes
See some of the top-of-the-line supercars and prototypes that auto makers have unveiled recently.One reason for the increase is that there are simply more of these so-called "supercars" on the road. CNW Marketing Research, a firm that analyzes the auto market, says Americans bought about 8,400 "ultra-luxury" sports cars last year -- more than three times the number from 2003. While the number of supercars registered in California is up sharply, the rate at which they are getting into accidents is still small -- just over 1% -- and hasn't changed appreciably since the state began breaking data down by make in 2002. (The statewide accident rate for all vehicles was 3%.)
Stefan Winkelmann, president and chief executive officer of Lamborghini, a unit of Volkswagen's Audi Group, says he's aware of "four or five" incidents involving one of the company's new 640-horsepower Murcielagos -- a small fraction of the nearly 500 models the company sold last year. Toscan Bennett, a spokesman for Ferrari, a unit of Fiat Group, says the company does not track the number of accidents involving its cars, but adds that several high-profile incidents may have contributed to a false impression that these crashes are common.
Auto makers say the rising horsepower is being offset by safety advancements ranging from all-wheel drive to ceramic brakes, rear-view cameras, extra airbags and monocoque safety cages that direct impact forces away from passengers. "The cars give themselves up for the safety of the driver," says Porsche spokesman Tony Fouladpour. Many supercars come with traction and stability control systems that automatically vary the power delivered to the wheels to help prevent drivers from sliding and skidding.
Insurance companies say that while the majority of supercar accidents do not result in serious injuries, there has been an uptick in collision claims on these cars. In some cases, rates are rising. Based on the rising cost of claims, State Farm says the same driver would have paid 9% more last year to buy physical damage insurance for a new Lamborghini Murcielago than in 2003.
Expensive sports cars have always been intimidatingly fast, but experts say the latest models are not just more powerful, they're also lighter: Ferrari's new 599 GTB Fiorano produces about .164 horsepower per pound -- a 21% improvement over the model it replaced. The trouble begins when overconfident drivers start trying to push the cars to speeds that even experienced drivers may not be capable of handling. "Generally speaking, the cars are well over the heads of the drivers," says Glenn Roberts, the owner of an auto-body shop in Fountain Hills, Ariz., that repairs damaged exotic cars.
The people buying these cars are also changing. Unlike previous supercar collectors who often babied their machines, they tend to drive about 4,000 to 6,000 miles per year -- more than double the average from a decade ago. And they're not getting any more mature: the median age for ultra-luxury sports-car buyers dropped to 47 last year from an average of 56 just 10 years ago, according to CNW. And you don't have to be an actuary to know that younger people are more likely to drive aggressively. A spokeswoman for Leland-West Insurance Brokers says most of the supercar claims the company handles each year involve men aged 25 to 40 driving newer high-performance cars too fast and losing control.
'Controllable' Speed
Adnan K. Mehmood, a 32-year-old fabric importer and stock trader from Miami, counts himself among those who don't believe a high-performance car should be pampered. He says he has driven his 2006 Lamborghini Murcielago Roadster faster than 191 mph a number of times on freeways. Mr. Mehmood says it's the engineering that gives him the confidence to go that fast. "When you are in the car, it's so stable," he says. "It's such a controllable speed. In a normal car when you are going 80 or 90, it feels like you are going really, really fast. In the Lambo, you are going 120 or 140 and honestly, it feels like it's stopped on the freeway. It feels like it's not moving."
He is awaiting delivery of Lamborghini's new Murcielago LP640 Roadster, which has an extra 60 horsepower and a new suspension design that will help make it one of the fastest cars the company has ever built -- traveling up to 211 mph and from 0 to 60 in 3.7 seconds. "I want to go to 200 mph," Mr. Mehmood says.
Veteran sports-car connoisseur Michael Fux says he has a pretty good idea why all these crashes are happening. The 64-year-old mattress entrepreneur from Miami, whose collection includes a Bugatti Veyron, a Ferrari 599, an Enzo and five Lamborghinis, says younger drivers are constantly challenging him to race. "These kids, they don't use their heads," he says. "They think they're back in the old Wild West."
Driving experts say most accidents in these cars happen when drivers take turns too fast for the road conditions or start turning prematurely and then snap off the accelerator to compensate. If the car's back end starts to fishtail, many inexperienced drivers will fail to steer in the direction of the sliding tail or will overcorrect by turning too severely in that direction. Both mistakes can cause a spin. "It's a symphony of inputs and adjustments to keep the car under control," says David Champion, senior director of Consumer Reports Auto Test Division.
For Anthony Almada, a 46-year-old nutritional biochemist and entrepreneur from Dana Point, Calif., the catalyst was a deceivingly slick road. While driving his $440,000 Porsche Carrera GT on a bend near his home at 80 miles per hour on a slightly wet road early last year, he says the car snapped into a spin. He followed the procedure he'd been taught in driving class and "put both feet in" -- pressing down on the brake and the clutch at the same time -- and hoped for the best. The car broadsided a brick wall and spun at least six times and caught fire. "It wasn't something I could have corrected," says Mr. Almada, who climbed out unhurt. "I was going too fast for the road conditions. It's that simple."
Another common mistake: failing to warm up the tires. Standing inside his garage last month at Classic Coach Repair in Elizabeth, N.J., owner Onofrio Triarsi points out two damaged Ferraris -- a red 360 that needs a new quarter panel and bumper and a blue 550 Maranello with similar damage. Both cars had been taken out on racetracks on cold mornings by drivers who had not given the tires enough time to heat up (and thus adhere better to the asphalt). When customers drive off now, Mr. Triarsi leaves them with the same advice: "Don't forget the tires."
In some cases, drivers say they got into trouble after shutting off the car's traction control system to get a more "authentic" sports-car experience. During a test for Car and Driver last spring in Italy, technical editor Aaron Robinson, 37, flicked off the electronic stability control in a 611-horsepower Ferrari 599 GTB Fiorano so he could get the vehicle's rear end to flare out around a curve for a photo. But after giving the car "too much throttle and not enough core steering," he says he wound up sideswiping a wall. "Any car with 600 horsepower is intimidating," Mr. Robinson says.
Many of these accidents are, of course, just examples of pure recklessness. The Bugatti Veyron owner who crashed in Surrey, England, this year was said to be traveling at least 100 mph on a country lane before colliding with a station wagon. He was cited by police for driving "without due care and attention." The 26-year-old who crashed his 2005 Lamborghini into five parked cars in Santa Monica, Calif., in March was reportedly racing at 75 mph around a 35 mph curve. He was charged with driving under the influence.
You don't have to buy one of these cars to trash one, either: New York's Gotham Dream Cars, one of a growing number of companies that allow people to rent supercar
High Speed, Low Clearance
Speed isn't always the culprit. Because of their odd dimensions and miniscule ground clearance, supercars have always been vulnerable to damage from curbs, speed bumps or even objects in the road. While driving his yellow Ferrari Enzo for only the third time, Ali Haas, a 51-year-old plastic surgeon from Florida, ran over a spool of wire on the road. In most cars this would have been a nonevent -- but in this case the low-slung Ferrari was knocked airborne, breaking its grip on the road and sending it skidding into a guardrail. "If I ran over that spool of wire in my Ford Expedition, probably nothing would have happened," Dr. Haas says.
Regardless of the cause, anyone who wrecks one of these cars has a more immediate problem than finding a mechanic: the possibility of public humiliation. After smashing his silver Ferrari 360 into a light pole in November in Palm Beach, Fla., David Riggs says none of the 50 or so onlookers who stopped to gawk asked him if he was OK. Instead, the 42-year-old says he heard comments like "wow, you are really having a bad day," "that is really a bummer," and "your toy is broke." "Nobody is really concerned if you are hurt," Mr. Riggs says.
Car companies say they do what they can to make sure their most powerful vehicles get into the hands of experienced drivers. Buyers of Ferrari limited-production cars like the Enzo "were chosen by the factory based on their history and loyalty to Ferrari," says the spokesman, Mr. Bennett.
Driving Academies
Manufacturers are also rolling out driver-education programs. Later this year, Bugatti plans to start offering buyers a "security driving course" at a test track near its factory in France. Ferrari has offered driver training in Italy since the early 1990s and just opened the first authorized school outside Italy last year in Mt. Tremblant, Canada. Lamborghini started offering winter and summer-driving academies last year, formalizing classes long offered by dealers.
Bentley offered its first driving class in the U.S. last year and Lotus is launching a driving school in the U.S. this month called the Lotus Performance Driving Experience outside Las Vegas that will include instruction in "the dynamics of skid control."
One recent driving-school graduate: Mr. Aboubakare, the private-equity company president who spun out his Ford GT. He hopes to be better equipped to drive the new Lamborghini Murcielago LP640 Roadster he is getting later this summer. "I think with training, I'm a little more equipped to drive the car," he says.
For auto makers, the horsepower binge is continuing to accelerate. Even in an era of high gas prices, some like Audi and Lexus are building or testing new supercar designs. The 2007 Chevrolet Corvette Z06 packs 505 horsepower and Ford recently introduced a $41,000 Mustang with 500 horsepower.
There's no sign people are less interested in speeding, either. Movies like "The Fast and the Furious" and "Redline" have glamourized the notion of driving fast on public roads while drivers have been using sites like YouTube to post videos of themselves making flamboyant maneuvers. Mix in the growing number of supercars, their soaring horsepower and the increasing number of states raising speed limits and "we have almost the perfect storm going on here," says Adrian Lund, president of the Insurance Institute for Highway Safety.
Standing in his garage on a Sunday morning last month, Mr. Almada pulls out what's left of his beloved Porsche Carrera GT: one severed headlight and one rear-wheel tire and brake assembly. Finally, from a shelf he built to hold surfboards, he pulls down his last keepsake, the car's badly scraped carbon-fiber wing. He stares at it for a few moments, then gently lays it down. "It's like the memento of a family member who passed away," he says.
Saturday, June 23, 2007
The Science of a Fender Bender
Oh my goodness, I just hit that car!” “How much is this going to cost me, and what’s going to happen to my insurance?” In the heat of the moment, these are the instinctual thoughts of any driver who’s had the unpleasant experience of a fender bender. Even the smallest and most innocuous auto collision can have lasting financial repercussions — regardless of fault. What’s a driver to do?
There is an abundance of misinformation floating around the Internet that will convince you why you should pay out-of-pocket for small fender benders — especially if you have any previous accidents or moving violations on your driving record. At the scene of a collision, don’t be so quick to financially resolve the accident by writing a check or accepting the other driver’s available cash on hand.
There is a reason that your state requires a certain level of car insurance: car repairs always have unexpected costs and personal injuries sometimes take unforeseen turns towards chronic physical injury. If you choose to not report an accident to your insurance company, you are taking an uncalculated risk that you are probably not prepared for. If the other driver chooses to sue you months later, your failure to report the accident might cause your insurer to refuse to honor the policy. Imagine the financial and legal challenge of taking on an insurance company all by yourself.
Auto accidents are expensive and inconvenient; however, having the lowest possible deductible probably isn’t going to make a difference in the long-term costs of such an event. Instead, you should consider increasing your deductibles to lower the overall cost of your premiums. It’s one of the best ways to save on your car insurance. Yes, a collision will be a little more expensive, but you’re probably not going to experience enough accidents to justify the forgone savings. If you’re a safe and responsible driver, save on your overall premium, not on the out-of-pocket costs in an accident.
As with anything, preparation is the key to successfully navigating the administrative headaches of a fender bender. Always have a pen and paper readily available next to your proof of insurance. You’ll want to collect the names and addresses of all drivers, passengers, witnesses, and law enforcement officials involved; in addition to license plate numbers, the make and model of each car, driver’s license numbers, insurance information, and as much scenario detail as possible. There are two points of wisdom that strongly support any resolution that most people overlook: 1.) Never admit fault, and 2.) Have a disposable camera handy to take undisputable images of the scene. In any type of auto accident, everything happens in a flash and “hindsight is 20-20”.
If a fender bender has bruised your driving record and you are suffering from what seems to be unreasonable premiums, don’t be a prisoner to your insurance company. There are companies that specialize in insuring high risk drivers with reasonable rates. To find them you must shop around and compare multiple quotes from multiple companies. The same policy can vary by hundreds of dollars from company to company.
There is an abundance of misinformation floating around the Internet that will convince you why you should pay out-of-pocket for small fender benders — especially if you have any previous accidents or moving violations on your driving record. At the scene of a collision, don’t be so quick to financially resolve the accident by writing a check or accepting the other driver’s available cash on hand.
There is a reason that your state requires a certain level of car insurance: car repairs always have unexpected costs and personal injuries sometimes take unforeseen turns towards chronic physical injury. If you choose to not report an accident to your insurance company, you are taking an uncalculated risk that you are probably not prepared for. If the other driver chooses to sue you months later, your failure to report the accident might cause your insurer to refuse to honor the policy. Imagine the financial and legal challenge of taking on an insurance company all by yourself.
Auto accidents are expensive and inconvenient; however, having the lowest possible deductible probably isn’t going to make a difference in the long-term costs of such an event. Instead, you should consider increasing your deductibles to lower the overall cost of your premiums. It’s one of the best ways to save on your car insurance. Yes, a collision will be a little more expensive, but you’re probably not going to experience enough accidents to justify the forgone savings. If you’re a safe and responsible driver, save on your overall premium, not on the out-of-pocket costs in an accident.
As with anything, preparation is the key to successfully navigating the administrative headaches of a fender bender. Always have a pen and paper readily available next to your proof of insurance. You’ll want to collect the names and addresses of all drivers, passengers, witnesses, and law enforcement officials involved; in addition to license plate numbers, the make and model of each car, driver’s license numbers, insurance information, and as much scenario detail as possible. There are two points of wisdom that strongly support any resolution that most people overlook: 1.) Never admit fault, and 2.) Have a disposable camera handy to take undisputable images of the scene. In any type of auto accident, everything happens in a flash and “hindsight is 20-20”.
If a fender bender has bruised your driving record and you are suffering from what seems to be unreasonable premiums, don’t be a prisoner to your insurance company. There are companies that specialize in insuring high risk drivers with reasonable rates. To find them you must shop around and compare multiple quotes from multiple companies. The same policy can vary by hundreds of dollars from company to company.
4 Ways Most People Overpay for Car Insurance
Tax-Time: you’re either waiting for your gravy train tax refund, or you’re fearing the event of paying even more to Uncle Sam. Car insurance can take on a similar dichotomy, but the difference is that you don’t get a refund for overpaying for coverage — it just renews and overcharges you until you find a more affordable policy. Most people don’t see this, and miss out on hundreds of dollars in savings that could be used like a big fat tax refund.
Auto Insurance Quotes are Not Final: How to Make Them LowerWhen you shop and compare multiple auto insurance quotes, recognize that even if the quotes are about the same as your current policy, or lower for that matter, they can still be even lower. There may be too much coverage, or extra options tucked into the quote that you really don’t need.
Although higher limits provide you with greater protection against possible losses, you may be carrying limits that are not in line with the value of your total assets and your lifestyle. As you review your quote, consult with an insurance agent before making any final coverage decisions. Additionally, you may be a member of an auto club that provides towing and labor protection, therefore, paying for it in your auto policy could be unnecessary. The same may hold true for car rental coverage: do you really need it?
Trying to Make “Accidents” More AffordableMany drivers make the mistake of carrying the lowest deductibles in order to help offset the costs associated with filing a claim. The fact remains, the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor, you could be spending the same out-of-pocket amount regardless. Save on your policy, not the accident; raise your deductibles if you can afford to.
Paying for the Policy in Monthly InstallmentsJust like any bill, it is common to pay for insurance in monthly installments, either by check or automatic bank withdrawal. Be aware that additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, annual). A monthly fee of even $7 can add up to $84 over 12 months.
Overpaying for Tickets and Moving ViolationsPerhaps you deserve a higher rate for your driving record, but don’t let the insurance company unduly punish you. Although having moving violations on your driving record can limit your selection of insurance companies, don't believe that finding affordable car insurance is as intimidating as appearing in traffic court and paying fines. To the contrary, there are companies that specialize in insuring higher risk drivers at reasonable prices. The only way to identify such companies though, is to compare multiple quotes from multiple companies.
Don’t count on your tax refund to save money! Instead, you may be able to save hundreds by simply taking 10 minutes to analyze your auto insurance policy. Even if last year seemed uneventful, the chances are good that your individual circumstances have changed enough to qualify you for lower car insurance rates. And even if nothing changed on your end, many large insurance companies may have reduced their rates since you last shopped.
Auto Insurance Quotes are Not Final: How to Make Them LowerWhen you shop and compare multiple auto insurance quotes, recognize that even if the quotes are about the same as your current policy, or lower for that matter, they can still be even lower. There may be too much coverage, or extra options tucked into the quote that you really don’t need.
Although higher limits provide you with greater protection against possible losses, you may be carrying limits that are not in line with the value of your total assets and your lifestyle. As you review your quote, consult with an insurance agent before making any final coverage decisions. Additionally, you may be a member of an auto club that provides towing and labor protection, therefore, paying for it in your auto policy could be unnecessary. The same may hold true for car rental coverage: do you really need it?
Trying to Make “Accidents” More AffordableMany drivers make the mistake of carrying the lowest deductibles in order to help offset the costs associated with filing a claim. The fact remains, the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor, you could be spending the same out-of-pocket amount regardless. Save on your policy, not the accident; raise your deductibles if you can afford to.
Paying for the Policy in Monthly InstallmentsJust like any bill, it is common to pay for insurance in monthly installments, either by check or automatic bank withdrawal. Be aware that additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, annual). A monthly fee of even $7 can add up to $84 over 12 months.
Overpaying for Tickets and Moving ViolationsPerhaps you deserve a higher rate for your driving record, but don’t let the insurance company unduly punish you. Although having moving violations on your driving record can limit your selection of insurance companies, don't believe that finding affordable car insurance is as intimidating as appearing in traffic court and paying fines. To the contrary, there are companies that specialize in insuring higher risk drivers at reasonable prices. The only way to identify such companies though, is to compare multiple quotes from multiple companies.
Don’t count on your tax refund to save money! Instead, you may be able to save hundreds by simply taking 10 minutes to analyze your auto insurance policy. Even if last year seemed uneventful, the chances are good that your individual circumstances have changed enough to qualify you for lower car insurance rates. And even if nothing changed on your end, many large insurance companies may have reduced their rates since you last shopped.
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