Motor Authority - blog Tag: Insurance

That luxury sport-utility vehicle you're eyeing could come with lots of street credentials - as well as a hefty insurance bill.

It's no surprise that expensive rides can cost a lot at the showroom, but a new study by Insure.com drops the other shoe on costs of ownership for the finest, most capable vehicles on the planet. Namely, it's going to cost you a lot to insure some of the best vehicles on the road against accidents, liability, and acts of God.

According to the site, some of the most expensive vehicles to insure include the 2009 Mercedes-Benz G-Class, the 2009 HUMMER H2, and the 2009 Land Rover Range Rover. In particular, the Benz... That luxury sport-utility vehicle you're eyeing could come with lots of street credentials - as well as a hefty insurance bill. It's no surprise that expensive rides can cost a lot at the showroom, but a new study by Insure.com drops the other shoe on costs of ownership for the finest, most capable vehicles on the planet. Namely, it's going to cost you a lot to insure some of the best vehicles on the road against accidents, liability, and acts of God. According to the site, some of the most expensive vehicles to insure include the 2009 Mercedes-Benz G-Class, the 2009 HUMMER H2, and the 2009 Land Rover Range Rover. In particular, the Benz G-Class has costly parts, the Web site says, while the H2 takes on more than its fair share in damage claims because it pummels the other car into sheetmetal submission. The Range Rover? A big target for thieves, no surprise. Along with the British luxo-ute, the list also includes several more of the biggest, priciest scene-stealing SUVs that tend to be popular in higher-theft urban areas, including the Cadillac Escalade, Land Rover Range Rover Sport, Infiniti QX56, and Lexus LX 570. Also on the list? The 2009 Chevrolet Tahoe Hybrid, likely because its two-mode hybrid system is difficult and expensive to repair or replace. To compile the list, the site based calculations around a 40-year-old man with a 12-mile commute daily, then averaged out insurance costs nationwide as quoted by several insurers. Insure.com estimates an annual insurance tab of $2,088 for the Mercedes G-Class. But at least you'll feel safe and secure in any of these if the worst happens--six of ten SUVs that cost the least to insure are 2009 IIHS Top Safety Picks. The results of the study ranked as follows, with average insurance costs in dollars: 1 $2,088 Mercedes-Benz G-Class 2 $1,912 Hummer H2 3 $1,603 Land Rover Range Rover 4 $1,584 BMW X6 5 $1,553 Cadillac Escalade 6 $1,472 Laxus LX 570 7 $1,457 Land Rover Range Rover Sport 8 $1,392 Mercedes-Benz GL-Class 9 $1,290 Chevrolet Tahoe Hybrid 10 $1,389 Infiniti QX56 Via: TheCarConnection2010 Range Rover facelift Read More

Savings at the pump may be a false economy for small cars, as higher insurance costs offset the financial benefits of higher fuel efficiency. For many popular models, the difference in insurance costs can exceed $500, wiping out the savings of a car that gets 35mpg on average over one that gets 25mpg.

For a typical driver that travels 15,000mi (24,000km) annually, a car that gets 25mpg on average will cost about $1,800 in fuel per year at $3/gallon. A car rated at 35mpg will cost about $1,285 - a savings of $515. But the difference in insurance premiums between a 2009 Mini Cooper rated at 37mpg, and a Toyota Sienna Minivan rated at 23mpg... Savings at the pump may be a false economy for small cars, as higher insurance costs offset the financial benefits of higher fuel efficiency. For many popular models, the difference in insurance costs can exceed $500, wiping out the savings of a car that gets 35mpg on average over one that gets 25mpg. For a typical driver that travels 15,000mi (24,000km) annually, a car that gets 25mpg on average will cost about $1,800 in fuel per year at $3/gallon. A car rated at 35mpg will cost about $1,285 - a savings of $515. But the difference in insurance premiums between a 2009 Mini Cooper rated at 37mpg, and a Toyota Sienna Minivan rated at 23mpg is about $438, reports The Wall Street Journal, leaving the savings of the smaller vehicle at about $75 per year, or a little more than $6 per month. Insurance companies typically relate the historical trends of a vehicle's class to the type of driver in order to determine policy rates. The data for small cars, while reflecting lower property damage liability rates, does show higher theft rates and higher personal injury rates than larger cars and SUVs. Hybrids are also typically more expensive to insure than their standard-engine counterparts. The reasoning behind the difference is based on similar grounds: according to the Highway Loss Data Institute, an affiliate of the IIHS, crash damage costs are higher for hybrids in 11 of 12 cases, or about 92% of the time. Read More

Video games get a lot of blame for social effects they may or may not deserve, but a new pilot program with insurance company Allstate hopes to prove video games can enhance reflexes and improving driving safety. Targeted at drivers aged 50-75, the program could result in reduced rates for drivers that play the video games.

Allstate is conducting the pilot program to find out for certain, and once the data is collected, it will compare accident rates of drivers that did play the video games to those that did not. It may sound like a teenager's fantasy, but it's pure reality. Unfortunately for those already inclined toward day-long sessions... Video games get a lot of blame for social effects they may or may not deserve, but a new pilot program with insurance company Allstate hopes to prove video games can enhance reflexes and improving driving safety. Targeted at drivers aged 50-75, the program could result in reduced rates for drivers that play the video games. Allstate is conducting the pilot program to find out for certain, and once the data is collected, it will compare accident rates of drivers that did play the video games to those that did not. It may sound like a teenager's fantasy, but it's pure reality. Unfortunately for those already inclined toward day-long sessions at the computer or video game console, the benefits, and therefore the discounts, won't likely be headed to teenagers' policies any time soon. The mental benefits of video game playing postulated by the program - enhanced acuity and reversal of age-related cognitive decline - are of primary concern to aging drivers, reports CNN. To gain the benefits, Allstate recommends participants complete a minimum of 10 hours of video-game training. The program is being offered for free to 100,000 drivers in Pennsylvania. Early results show the mental gains, like the games played, are not necessarily specific to driving, though they do enhance drivers' ability to safely maneuver their car in complex situations. One of the games being used in the program includes a variation on the classic hidden object game known as Three Card Monte - not driving related at all, but designed to improve mental and visual attention faculties as players track a red jewel's location on the screen. The ultimate goal of the program is to save lives, not money, according to the company, though the encouragement of lower rates is what will likely draw participants in, at least initially. Read More

WINSTON-SALEM, N.C., Sept. 23 /PRNewswire/ -- In honor of Child
Passenger Safety Week, Sept. 21 - 27, GMAC Insurance today announced a
unique benefit to its customers, now offering child seat replacement in the
event of a crash to ensure children are traveling as safely as possible.

Additionally, in light of a recent GMAC Insurance survey that indicated
more than one third of licensed drivers have misconceptions about proper
child safety restraint procedures, the company is providing critical safety
tips for all parents.

Specifically, to keep even child passengers as safe as possible, GMAC
Insurance offers child safety seat reimbursement... WINSTON-SALEM, N.C., Sept. 23 /PRNewswire/ -- In honor of Child Passenger Safety Week, Sept. 21 - 27, GMAC Insurance today announced a unique benefit to its customers, now offering child seat replacement in the event of a crash to ensure children are traveling as safely as possible. Additionally, in light of a recent GMAC Insurance survey that indicated more than one third of licensed drivers have misconceptions about proper child safety restraint procedures, the company is providing critical safety tips for all parents. Specifically, to keep even child passengers as safe as possible, GMAC Insurance offers child safety seat reimbursement for all policies with collision coverage. If a customer is in a crash with a child sitting in the safety seat, GMAC Insurance will replace the child safety seat. "In the event of a crash - even a minor fender-bender - the quality of a child safety seat may be compromised, even if no damage is visible," said Wade Bontrager, vice president, marketing, GMAC Insurance. "At GMAC Insurance, our smallest passengers deserve our greatest attention, so we're now offering customers a unique benefit, child seat replacement in the event of a crash to ensure the safest travel possible." A recent GMAC Insurance survey indicated confusion regarding proper restraint procedures. In the GMAC Insurance survey of 5,524 licensed drivers, 41 percent incorrectly identified the minimum age and weight requirements prior to switching a child seat from rear-facing to forward-facing (correct answer: the child should be at least one year old and 20 pounds). Thirty-four percent did not know the correct step to take once a child has outgrown a forward-facing car seat (correct answer: they should be buckled in a booster seat in the back seat only). In addition, only 41 percent responded that 13 years old is the acceptable age for a child to be able to ride in the front seat (rule of thumb: children under 13 ride in the back). Read More