Nov 1, 2011
Car Insurance : Why we’re Buying and Insuring Older Cars
11:34 AM | 
Posted by
Hambo
Why we’re buying and insuring older cars - It all started with a recent, astronomical run-up in the price of used cars. In 2008, as the recession took hold, new-car sales plunged abruptly. Would-be buyers feared for their jobs and hung on to the old car for another year or two. Tighter credit meant many who wanted to take the plunge couldn’t. And manufacturers could no longer raise the money needed to underwrite the tasty subsidized leases and rebate.
Here’s what new car sales looked like over the past five years, according to Automotive News:
16 million in 2007
13 million in 2008
10 million in 2009
11.6 million in 2010
12.2 million (estimated) this year
The auto market is a complicated ecosystem. "About 60 percent of all new-vehicle sales result in a trade-in," says Susanna Gotsch, director and industry analyst at CCC Information Services. Since the sales meltdown, the pool of like-new used cars has shrunk. Prices for those cream puffs have risen, pushing some buyers to models with a few more miles. Those older cars now are selling at a premium, with sticker shock rippling all the way down to clunkers that can be bought without credit. Last year alone, the Bureau of Labor Statistics says, the price of used cars rose 12.7 percent.
Cars are older, smaller, but not cheaper to repair
As people keep their old cars longer and feel less inclined to buy new vehicles, the average age of autos on the road has risen by more than two years, from 8.5 years old in 1995 to 10.7 years old today, says Gotsch.
The cars are smaller as well. With the sudden rise of fuel prices in 2008 (and Cash for Clunkers removing 700,000 gas guzzlers from the roads), smaller, lighter, more fuel-efficient vehicles gained market share. Today, the roads carry a growing proportion of small vehicles that suffer more extensive damage in a wreck.
The impact of a crash pushes destruction farther back through a small car, involving a larger proportion of the body, says insurance analyst Greg Horn of Mitchell International."The bottom line is that the smaller the car, the more likely it is to be totaled," says Horn.
With roads full of older, more vulnerable cars that still use expensive-to-repair technology such as air bags, the tipping point at which a car is declared a total-loss happens at lower and lower values, the experts say. If used cars weren't fetching such good prices, the problem would be worse.
"We have seen it go from upwards of 12 percent with some (insurance) carriers to, say, upward of 20 percent of the vehicles have been totaled," says Gotsch.
The math behind your totaled car
To a stranger or an insurance company, your beloved and ultra-clean 10-year-old car isn’t worth much. You’re probably wondering whether to keep collision and comprehensive coverage on your car insurance policy.
But say you did. Your 2002 Nissan Altima in “good” condition is worth about $3,500, according to Kelley Blue Book. And say you absent-mindedly connect with a parking-lot light pole, cracking the bumper and headlight and wrinkling the hood.
The average claim last year on cars older than seven years was $1,913, CCIS says. Let’s use that number as your damage claim. If you have rental-car reimbursement coverage, your adjuster will add an estimate for that to the total. Then, he looks at what kind of salvage value the car has if sold to a parts yard.
If the total for repairs, plus rental, plus any storage fees, plus salvage value is more than the pre-crash value of the car, he’ll probably take title to the car and write you a check.
If the estimate of repairs exceeds your state’s threshold, then he’ll write you a check. About half the states set a threshold, ranging from Iowa’s 50 percent of actual cash value to Texas’ 100 percent.
If the car simply won’t be safe, he’ll write you a check.
CCIS says one in four wrecked vehicles more than 7 years old winds up a total loss.
Source : www.carinsurance.com
Read More
Here’s what new car sales looked like over the past five years, according to Automotive News:
16 million in 2007
13 million in 2008
10 million in 2009
11.6 million in 2010
12.2 million (estimated) this year
The auto market is a complicated ecosystem. "About 60 percent of all new-vehicle sales result in a trade-in," says Susanna Gotsch, director and industry analyst at CCC Information Services. Since the sales meltdown, the pool of like-new used cars has shrunk. Prices for those cream puffs have risen, pushing some buyers to models with a few more miles. Those older cars now are selling at a premium, with sticker shock rippling all the way down to clunkers that can be bought without credit. Last year alone, the Bureau of Labor Statistics says, the price of used cars rose 12.7 percent.
Cars are older, smaller, but not cheaper to repair
As people keep their old cars longer and feel less inclined to buy new vehicles, the average age of autos on the road has risen by more than two years, from 8.5 years old in 1995 to 10.7 years old today, says Gotsch.
The cars are smaller as well. With the sudden rise of fuel prices in 2008 (and Cash for Clunkers removing 700,000 gas guzzlers from the roads), smaller, lighter, more fuel-efficient vehicles gained market share. Today, the roads carry a growing proportion of small vehicles that suffer more extensive damage in a wreck.
The impact of a crash pushes destruction farther back through a small car, involving a larger proportion of the body, says insurance analyst Greg Horn of Mitchell International."The bottom line is that the smaller the car, the more likely it is to be totaled," says Horn.
With roads full of older, more vulnerable cars that still use expensive-to-repair technology such as air bags, the tipping point at which a car is declared a total-loss happens at lower and lower values, the experts say. If used cars weren't fetching such good prices, the problem would be worse.
"We have seen it go from upwards of 12 percent with some (insurance) carriers to, say, upward of 20 percent of the vehicles have been totaled," says Gotsch.
The math behind your totaled car
To a stranger or an insurance company, your beloved and ultra-clean 10-year-old car isn’t worth much. You’re probably wondering whether to keep collision and comprehensive coverage on your car insurance policy.
But say you did. Your 2002 Nissan Altima in “good” condition is worth about $3,500, according to Kelley Blue Book. And say you absent-mindedly connect with a parking-lot light pole, cracking the bumper and headlight and wrinkling the hood.
The average claim last year on cars older than seven years was $1,913, CCIS says. Let’s use that number as your damage claim. If you have rental-car reimbursement coverage, your adjuster will add an estimate for that to the total. Then, he looks at what kind of salvage value the car has if sold to a parts yard.
If the total for repairs, plus rental, plus any storage fees, plus salvage value is more than the pre-crash value of the car, he’ll probably take title to the car and write you a check.
If the estimate of repairs exceeds your state’s threshold, then he’ll write you a check. About half the states set a threshold, ranging from Iowa’s 50 percent of actual cash value to Texas’ 100 percent.
If the car simply won’t be safe, he’ll write you a check.
CCIS says one in four wrecked vehicles more than 7 years old winds up a total loss.
Source : www.carinsurance.com
Labels:
Oct 27, 2011
Cheap Travel Insurance - Holiday Insurance
3:00 PM |
Posted by
Hambo
We all look forward to our holidays, with the opportunity to get away with family or friends something that people work and save towards for many months or even years.
If you have been looking forward to a getaway, whether it is a long luxury holiday or a weekend break, the last thing that you want is an unexpected expense because of an unexpected delay, cancellation or incident.
Holiday insurance is designed to protect you from those unexpected occurrences that could impact you, either before or during your holiday. Holiday insurance, or travel insurance as it is also known, can cover a range of unforeseen expenses, including insolvency of an airline or accommodation provider, medical expenses, lost luggage, delays or cancellations.
What types of holiday insurance are available?
Because the way we travel has evolved significantly since the introduction of the package holiday, various different types of holiday insurance exist to suit people’s individual needs. Today, holiday insurance could be:
For those who are travelling for a wedding, golf trip or adventure activities, upgrades to your holiday insurance are also available to cover for those unforeseen circumstances.
What does holiday insurance cover?
What holiday insurance covers will vary from policy to policy but, in the majority of cases, holiday insurance should cover you for cancellation or curtailment of your holiday, personal liability whilst you are overseas, lost or stolen goods, most medical expenses and repatriation if medically necessary or following a fatal incident.
Your holiday insurance will cover cancellation or curtailment of your holiday if you are unable to travel because of an unforeseen circumstance, such as a family bereavement, illness or burglary. For this reason it is important to arrange your travel insurance at the same time as you book your holiday to ensure that you are able take advantage of this cover.
Medical expenses cover is also an important part of any holiday insurance policy, particularly if you are travelling in countries that do not have universal healthcare. Even if you are travelling within the EU with a European HealthInsurance Card (EHIC), it is important to have holiday insurance as the EHIC will not necessarily allow you to access free healthtreatment.
A competitive price on holiday insurance.
Because the way in which we travel has changed, Endsleigh is committed to providing holiday insurance policies that meet your individual needs. We don’t believe in a “one size fits all” approach to holiday insurance which is why we allow you to choose the policy that is right for you.
Whether you are looking for a short city break, an all-action winter adventure or a luxury holiday in a sun-soaked paradise, we allow you to tailor your holiday insurance to suit your needs.
Endsleigh is also committed to offering holiday insurance at a competitive price with a 10% discount when you buy insurance for travel online. Special discounts are also available for students up to the age of 23 and children younger than 17 years.
Ask Endsleigh today for a free no obligation holiday insurance quote.
Read More
If you have been looking forward to a getaway, whether it is a long luxury holiday or a weekend break, the last thing that you want is an unexpected expense because of an unexpected delay, cancellation or incident.
Holiday insurance is designed to protect you from those unexpected occurrences that could impact you, either before or during your holiday. Holiday insurance, or travel insurance as it is also known, can cover a range of unforeseen expenses, including insolvency of an airline or accommodation provider, medical expenses, lost luggage, delays or cancellations.
What types of holiday insurance are available?
Because the way we travel has evolved significantly since the introduction of the package holiday, various different types of holiday insurance exist to suit people’s individual needs. Today, holiday insurance could be:
- Annual Holiday Insurance: Ideal for regular travellers, providing cover for an unlimited number of trips per year, up to 42 days per trip.
- Independent Holiday Insurance: Ideal for those who have booked a single trip by booking their flights and accommodation separately.
- Winter Sports Holiday Insurance: Designed to provide cover for ski equipment, piste closure and medical emergencies whilst on the slopes.
- Gap Year / Career Break Insurance: Especially tailored for those planning a trip of a lifetime perhaps volunteering, adventure or working abroad.
For those who are travelling for a wedding, golf trip or adventure activities, upgrades to your holiday insurance are also available to cover for those unforeseen circumstances.
What does holiday insurance cover?
What holiday insurance covers will vary from policy to policy but, in the majority of cases, holiday insurance should cover you for cancellation or curtailment of your holiday, personal liability whilst you are overseas, lost or stolen goods, most medical expenses and repatriation if medically necessary or following a fatal incident.
Your holiday insurance will cover cancellation or curtailment of your holiday if you are unable to travel because of an unforeseen circumstance, such as a family bereavement, illness or burglary. For this reason it is important to arrange your travel insurance at the same time as you book your holiday to ensure that you are able take advantage of this cover.
Medical expenses cover is also an important part of any holiday insurance policy, particularly if you are travelling in countries that do not have universal healthcare. Even if you are travelling within the EU with a European HealthInsurance Card (EHIC), it is important to have holiday insurance as the EHIC will not necessarily allow you to access free healthtreatment.
A competitive price on holiday insurance.
Because the way in which we travel has changed, Endsleigh is committed to providing holiday insurance policies that meet your individual needs. We don’t believe in a “one size fits all” approach to holiday insurance which is why we allow you to choose the policy that is right for you.
Whether you are looking for a short city break, an all-action winter adventure or a luxury holiday in a sun-soaked paradise, we allow you to tailor your holiday insurance to suit your needs.
Endsleigh is also committed to offering holiday insurance at a competitive price with a 10% discount when you buy insurance for travel online. Special discounts are also available for students up to the age of 23 and children younger than 17 years.
Ask Endsleigh today for a free no obligation holiday insurance quote.
Oct 26, 2011
Business Travel Insurance and Group Travel Insurance
12:30 PM |
Posted by
Hambo
Whether you frequently or infrequently go on international business travel, it's important to ensure you have insurance protection while traveling overseas with business travel insurance. For many, their domestic insurance provides limited or no coverage while traveling abroad, even if it is for your company. The Atlas Professional plan can provide you with not only emergency medical coverage, but convenient travel associated benefits like trip interruption, natural disaster, and lost luggage coverage – all at a low $250 per trip deductible. The Atlas Professional plan is available to both U.S. citizens and non-U.S. citizens, and covers multiple international trips lasting 30 days or less. Preparing a trip abroad for 5 or more people? Then save 10% when you apply for group travel insurance with our Atlas Group plan.
Read More
Oct 22, 2011
Insurance for the Poor
3:59 AM |
Posted by
Hambo
Insurance for the poor - October 17, known as World Poverty Eradication Day. Is there any relation between insurance and poverty? We'll see. Clearly, various articles, tips on choosing insurance, or testimony about insurance was scattered here. Choosing the right insurance product, setting up children's education fund, set up an emergency fund, or introducing different variants of life insurance products are more appealing, both as self-protection efforts and investments for the capable. But all must have a price. The future is bright like a mirror of today's wallowing in money, at least that picture of the commercial insurance business. Convenience of the future was purchased with a premium today. If premiums are not bought, the future could be bleak.
Citing the publication of Sigma World Insurance in 2010, which was released by Swiss Re in 2011, Indonesia is a country that collapsed in an effort to protection or protection against the human soul, which is measured by two indicators of Insurance Density and Insurance Penetration. Total premiums of general insurance and insurance-soul-country with a population of 240 million inhabitants in the year 2010 amounted to 10.7 billion dollars, an increase of 28.91 percent compared to the year 2009. With the value of that size, Indonesia is ranked 11th of 27 countries in Asia. Ranked first in Asia occupied by Japan, while Singapore, Thailand, and Malaysia was ranked 7 to 9. If the total premium is divided by the GDP-known-then the value the insurance penetration is only 1.5 percent of GDP. With insurance penetration of that size, Indonesia is ranked 16. But if the size per capita, Indonesia increasingly sagging position, namely at position 22 in Asia, with a value premium of 45.8 dollars per capita. That is the value premium per person, which if dirupiahkan just-in exchange for 8900 - about USD 407 thousand only.
Especially for Life Insurance, the total premiums amounting to 7.2 billion dollars, an increase of 31.1 percent compared to 2009. The position of Indonesia is ranked tenth in Asia, and Singapore, Thailand, and Malaysia just above Indonesia. If calculated per capita, or known by the density-value insurance life insurance premiums per capita amounted to $ 30.9, or only $ 275 thousand. Decline in Indonesia ranked insurance density is inseparable from the burden of the population that actually entered ranked 4th in the world.
Read More
Citing the publication of Sigma World Insurance in 2010, which was released by Swiss Re in 2011, Indonesia is a country that collapsed in an effort to protection or protection against the human soul, which is measured by two indicators of Insurance Density and Insurance Penetration. Total premiums of general insurance and insurance-soul-country with a population of 240 million inhabitants in the year 2010 amounted to 10.7 billion dollars, an increase of 28.91 percent compared to the year 2009. With the value of that size, Indonesia is ranked 11th of 27 countries in Asia. Ranked first in Asia occupied by Japan, while Singapore, Thailand, and Malaysia was ranked 7 to 9. If the total premium is divided by the GDP-known-then the value the insurance penetration is only 1.5 percent of GDP. With insurance penetration of that size, Indonesia is ranked 16. But if the size per capita, Indonesia increasingly sagging position, namely at position 22 in Asia, with a value premium of 45.8 dollars per capita. That is the value premium per person, which if dirupiahkan just-in exchange for 8900 - about USD 407 thousand only.
Especially for Life Insurance, the total premiums amounting to 7.2 billion dollars, an increase of 31.1 percent compared to 2009. The position of Indonesia is ranked tenth in Asia, and Singapore, Thailand, and Malaysia just above Indonesia. If calculated per capita, or known by the density-value insurance life insurance premiums per capita amounted to $ 30.9, or only $ 275 thousand. Decline in Indonesia ranked insurance density is inseparable from the burden of the population that actually entered ranked 4th in the world.
 |
| Insurance Density, Source : Sigma, Swiss Re, 2011 |
Oct 20, 2011
Short-term International Travel Insurance
6:53 AM |
Posted by
Hambo
International travel always involves risk, but there is no reason why those risks should slow you down. The lack of appropriate travel medical insurance coverage could expose you to serious financial liability. Why not choose an international medical insurance plan that can be tailored to provide the right balance of affordability, benefits, and service for your specific journey? Choose the deductible, coverage limit, and period of international travel insurance that suits your needs for your intended trip. HCCMIS's international travel insurance plans automatically include travel and medical assistance services designed with the unique needs of international visitors in mind. HCC Medical Insurance Services can't take all the risk out of international travel abroad, but when the unforeseen happens, we can help.
Read More
Subscribe to:
Comments (Atom)
