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Car Insurance Prices Falling, Competition Fierce, Consumers Win

The fall of the economy has brought about many changes; higher unemployment, a depressed stock market, real estate foreclosures... but the news is not all negative. One change that is going in the right direction is car insurance rates. Car insurance companies are now drastically fighting for your business and they are willing to do whatever it takes to get you as their customer, including dropping insurance rates significantly from previous years. Drivers are taking advantage of the insurance rate decline by getting multiple quotes, comparing prices, and usually leaving their current insurance company for a competitor willing to offer a more attractive price. Another benefit for consumers is that getting quotes has become a lot quicker than in the past, with the process taking anywhere from 60 seconds to 8 minutes to get a quote. After testing out the process of 15 insurance companies, Allstate and Quotewizard were the top two in terms of having the lowest pricing and a very quick application process. In some cases we have heard of people reducing their car insurance by 30%, and that certainly helps during a recession...

Car Dealers Feeling the Pain

Car Dealers are feeling the pain like never before in history, the time to buy is now if you are in the market for a new car. Dealerships are slashing prices on their inventory, some as high as 40%. Getting a quote on a new car has become a quick and painless process thanks to the internet. You select the year, model, a few other options and within a few minutes you are able to get a quote. This process is much simpler than years ago when you would need to go into the dealership and sit down and have someone pressure you. If you're not happy with the quote you can add or remove different options to get a new quote. I went through the process and in under 3 minutes I had a quote in front of me.

Trade Ins at All Time High

With gas prices bouncing around like a ping pong ball a lot of consumers are considering the option of trading in their gas guzzling car, truck, or SUV for something more fuel friendly. Tim Fenton of Los Angeles was not one of these people. Tim thought that nobody would take his 1995 Honda Civic with over 100,000 miles on it. But a friend convinced Tim to try using NCP Trade In to get a quote of what his car would be worth as a trade in and he was pleasantly surprised. "I thought my car was too old to trade in, this is one of those few times I was happy to be wrong because I was able to trade it in and get myself a new car. I bought my friend a steak dinner to say thanks."

Cash for Clunkers Law Will Help People Afford that New Car

The House approved a "cash for clunkers" bill that aims to boost new auto sales by allowing consumers to turn in their gas-guzzling cars and trucks for vouchers worth up to $4,500 toward more fuel-efficient vehicles. President Barack Obama has encouraged Congress to approve consumer incentives for new car purchases as part of the government's work to restructure General Motors and Chrysler. The House approved the bill 298-119. Supporters pushed for the measure to stimulate car sales and increase the fleet of fuel-efficient vehicles on the nation's highways. The auto industry has sought the incentives after months of poor auto sales. "Stimulating sales is the only way to get the auto industry back on its feet," said Rep. Donald Manzullo, R-Ill.General Motors Corp. and Chrysler LLC have received billions of dollars in government aid and the entire auto industry has watched car sales plummet during the past year. In May, overall sales were 34 percent lower than a year ago."Our industry has been stuck in neutral and really has not started to move," said Larry Kull, president of Marlton, N.J.-based Burns Kull Automotive Group, which includes General Motors, Honda and Toyota dealerships.President Barack Obama has urged Congress to approve consumer incentives for new car purchases as part of the government's efforts to reorganize General Motors and Chrysler through the bankruptcy courts.The vehicle scrappage bill has been under negotiations for months as lawmakers try to find a solution that boosts car sales while providing some environmental benefits. Proponents have pointed to similar programs in Europe that have enhanced auto sales.Opponents said the bill failed to include incentives for used vehicles and represented an artificial incentive for the industry."It's defying the laws of economics and saying we can manufacture enough of a demand to keep the auto industry afloat," said Rep. Jeff Flake, R-Ariz.Separately, House and Senate appropriators were discussing providing $1 billion to a supplemental war funding bill for the "cash for clunkers" program, which aims to generate about 1 million new auto sales. Since the yearlong vehicle program is expected to cost $4 billion, lawmakers would attempt to find the additional money later this year.Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker. Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles. Rep. Betty Sutton, D-Ohio, the bill's chief sponsor, said the bill showed that "the multiple goals of helping consumers purchase more fuel efficient vehicles, improving our environment and boosting auto sales can be achieved." Sen. Debbie Stabenow, D-Mich., has backed a similar version in the Senate, which has the support of automakers and their unions.The bill would direct dealers to ensure that the older vehicles are crushed or shredded to get the clunkers off the road. It was intended to help replace older vehicles — built in model year 1984 or later — and would not make financial sense for consumers owning an older car with a trade-in value greater than $3,500 or $4,500.The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared to more than 13 million in 2008 and more than 16 million in 2007.Auto analysts questioned whether it would be enough of an incentive for many consumers burdened by debt or financially stressed by the troubled economy."That is the major sticking point for Americans: How do you finance your vehicle? How do you pay for it?" said Rebecca Lindland, an auto industry analyst for the consulting firm IHS Global Insight. A group of senators led by California Democrat Dianne Feinstein were pushing an alternative version that would require consumers to trade up for more fuel-efficient cars and trucks to qualify. They complained that even a 2009 Hummer H3T, which gets 14 mpg in city driving and 18 mpg on the highway, could qualify for the incentives under the House bill. Under Feinstein's plan, a passenger car owner's trade-in would need to get 17 mpg or less to qualify and only new passenger cars getting at least 24 mpg would be eligible. Owners could receive a $2,500 voucher for a new car that gets at least 7 mpg more than their old car. The voucher would increase to $3,500 for new cars with a 10 mpg improvement and $4,500 for new cars with a 13 mpg increase in fuel efficiency.