Consider consolidating student loans
Jean Chatzky: Consider consolidating student loans
This is the time of year when the buzz starts up about student-loan consolidation. Some people benefit from consolidating, others don’t, and borrowers want to know which camp they fall in.
Here are the facts: Until recently, borrowers were able to consolidate their loans each year at a low-interest rate — sometimes under 3 percent. In 2005, Congress set a fixed rate for Stafford and PLUS loans. This means that loans originating after July 1, 2006, largely won’t benefit from consolidation. In fact, if you consolidate, your interest rate will increase slightly.
If your loan originated before that date, you’re working with a variable-rate loan, and you’ll benefit from consolidating come July 1, when rates are set to drop by 3 percent, according to Mark Kantrowitz, publisher of FinAid.org.
To figure out what kind of loans you have, do a little backtracking. What year did you enter school? What year did you graduate? How many years of loans do you have, total?
You may find that you have both, particularly if you graduated in the last few years. "Undergraduate students who graduated last year and who had not previously consolidated their loans would have three years of variable-rate loans and one year of fixed-rate loans. Undergraduate students graduating this year would have three years of variable-rate loans and two years of fixed-rate loans," explains Kantrowitz.
No matter what your situation, here’s what to do when July 1 rolls around:
If your loans are fixed, you probably want to shy away from consolidating. There’s no savings to you in doing so. However, some borrowers choose to consolidate anyway, for a couple of reasons. By definition, it makes things a bit simpler by putting your loans all on one payment, which can ease your mind and also help to ensure that payments are going in on time each month. However, Kantrowitz says that these days, most lenders offer unified billing anyway, so consolidating for this reason is largely unnecessary.
Another potential perk of consolidation is that it comes with a wider variety of repayment options, so if you’re struggling to make ends meet, you can increase the life of the loan and thus make your monthly payments smaller.
If your loans are variable, rates reset annually on July 1, but you can consolidate only once. This July is a great time to do it if you haven’t already. Consolidating will bring Stafford Loans that are in repayment to an interest rate of 4.25 percent and PLUS loans to 5.125 percent. If you’re still in school or under the grace period after graduation, your Stafford Loan rate will be 3.625 percent. This is not only the biggest drop ever in the interest rates on variable-rate loans, but according to Kantrowitz, they are the lowest rates in the history of the student-loan program. So take advantage, and you could save several thousand dollars over the life of the loan, depending on how much you borrowed in the first place.
Don’t be surprised if you have trouble finding a lender. Consolidation loans are no longer all that profitable, and many lenders have pulled out of the business — including Sallie Mae, according to Martha Holler, a spokesperson for Sallie Mae. The current economy and credit crunch isn’t helping matters. If you shop around and can’t find a private loan company to consolidate with, Kantrowitz suggests turning to the Federal Direct Consolidation Loan program (loanconsolidation.ed.gov). You can consolidate both Direct Loans, which are issued by the government, and private loans (typically called Federal Family Education Loans or FFELs) through this program, which will give you all the options offered by private lenders — namely, multiple repayment plans and only one check to write each month.
Stick with a 10-year loan if possible. As I mentioned, when you consolidate, you’ll be given the option to lower your monthly payments by repaying the loan over the course of 20 or even 30 years instead of the standard 10.
"In some cases, you can cut your monthly payment in half, but you will pay more over the life of the loan," warns Holler. Make sure that you’ve exhausted any other options, such as making cuts in your budget or working a few overtime hours, and resort to this as a last step.
One caveat: If you, like about 75 percent of your peers, came out of college with not just student loans but also a load of credit-card debt, and you’re feeling squeezed, it may make sense to extend your loan and focus on the credit cards for the time being. Student-loan debt is largely considered good debt, because the interest rates are about as low as they come, and they generally help round out the credit reports of borrowers who may not have much of a history otherwise. The interest rates on credit cards can be three or even four times that of a student loan, so you’ll save in the long run by throwing the bulk of your money at that debt first.
source-http://www.star-telegram.com/family_day/story/706461.html
Thursday, June 19, 2008
Debt consolidation and declining consumer confidence
Debt consolidation and declining consumer confidence
Following the recent British Retail Consortium (BRC) survey on consumer confidence, debt consolidation experts debtadvisersdirect.co.uk remind people in financial trouble to seek expert debt help as soon as possible.
Of the thousand people polled, nearly 60% felt their personal finances would be either bad or not so good over the next year. “What’s interesting about the BRC’s figures,” says a spokesperson for debtadvisersdirect.co.uk, “is that they reflect consumer sentiment, rather than any official perspective. Today’s economic troubles aren’t the kind that only worry bankers and Treasury officials: they’re issues that impact day-to-day life.”
“To look on the bright side, at least people are aware of the problems ahead – we’d be more worried if consumers were unconcerned, while financial experts predicted difficult times.” Concerned consumers are, hopefully, more likely to seek debt advice early on and look around for a debt solution that can help them cope with rising costs and/or falling incomes. In many cases, a debt consolidation loan could be an appropriate way to reduce their monthly expenditure.
“A debt consolidation loan is a simple idea: when people consolidate their debts, they’re paying off their (often high-interest) debts with a single loan. Consolidation loans often come with lower interest rates, but that’s not the most important benefit here. When someone consolidates their debts, they have a chance to rethink their repayment terms: they can reduce the size of each monthly payment by arranging to repay the funds over a longer period of time. Of course, a longer repayment term will mean they’re paying interest for longer and the debt may cost more in total. Nonetheless, lowering monthly repayments can make all the difference here and now, freeing up the cash they need for their priority bills and other living expenses.”
“We’d always recommend people seek help before it’s too late, but today it’s more important than ever to take prompt action. Already, one in five people has no spare cash, but experts are predicting further rises in the cost of essentials like petrol, food and utilities. It’s clear that any borrower who’s only just managing today needs to seek advice without delay.”
And ‘action’ doesn’t necessarily mean debt consolidation. “Debt consolidation loans aren’t the only debt solution that can help people through tough times. Debt management can also reduce someone’s monthly payments to unsecured debts, as can an IVA (Individual Voluntary Arrangement, a legally binding form of debt solution for people with significant debts). Homeowners, of course, may well have more options: depending on their situation, they may wish to consider a debt consolidation mortgage, rather than a debt consolidation loan.”
source-http://www.sourcewire.com/releases/rel_display.php?relid=39617&hilite=
Following the recent British Retail Consortium (BRC) survey on consumer confidence, debt consolidation experts debtadvisersdirect.co.uk remind people in financial trouble to seek expert debt help as soon as possible.
Of the thousand people polled, nearly 60% felt their personal finances would be either bad or not so good over the next year. “What’s interesting about the BRC’s figures,” says a spokesperson for debtadvisersdirect.co.uk, “is that they reflect consumer sentiment, rather than any official perspective. Today’s economic troubles aren’t the kind that only worry bankers and Treasury officials: they’re issues that impact day-to-day life.”
“To look on the bright side, at least people are aware of the problems ahead – we’d be more worried if consumers were unconcerned, while financial experts predicted difficult times.” Concerned consumers are, hopefully, more likely to seek debt advice early on and look around for a debt solution that can help them cope with rising costs and/or falling incomes. In many cases, a debt consolidation loan could be an appropriate way to reduce their monthly expenditure.
“A debt consolidation loan is a simple idea: when people consolidate their debts, they’re paying off their (often high-interest) debts with a single loan. Consolidation loans often come with lower interest rates, but that’s not the most important benefit here. When someone consolidates their debts, they have a chance to rethink their repayment terms: they can reduce the size of each monthly payment by arranging to repay the funds over a longer period of time. Of course, a longer repayment term will mean they’re paying interest for longer and the debt may cost more in total. Nonetheless, lowering monthly repayments can make all the difference here and now, freeing up the cash they need for their priority bills and other living expenses.”
“We’d always recommend people seek help before it’s too late, but today it’s more important than ever to take prompt action. Already, one in five people has no spare cash, but experts are predicting further rises in the cost of essentials like petrol, food and utilities. It’s clear that any borrower who’s only just managing today needs to seek advice without delay.”
And ‘action’ doesn’t necessarily mean debt consolidation. “Debt consolidation loans aren’t the only debt solution that can help people through tough times. Debt management can also reduce someone’s monthly payments to unsecured debts, as can an IVA (Individual Voluntary Arrangement, a legally binding form of debt solution for people with significant debts). Homeowners, of course, may well have more options: depending on their situation, they may wish to consider a debt consolidation mortgage, rather than a debt consolidation loan.”
source-http://www.sourcewire.com/releases/rel_display.php?relid=39617&hilite=
Debt consolidation loans can help
Debt consolidation loans can help
Consumers experiencing debt problems should consider a consolidation loan to help them manage their finances.
According to debtadviserdirect.co.uk, people should consider these products as they usually have lower interest rates than those on individual loans and allow people to free up more money to go towards bills and other living expenses.
In addition the period of time over which people must repay the debt can be discussed and changed if need be, meaning consumers can pay less each month but do so for a longer period of time.
"When someone consolidates their debts, they have a chance to rethink their repayments terms: they can reduce the size of each monthly payment by arranging to repay the funds over a longer period of time," a spokesperson for the company said.
source-http://www.debtmanagementtoday.co.uk/newsstory?id=18641330&type=newsfeed&title=debt_consolidation_loans_can_help
Consumers experiencing debt problems should consider a consolidation loan to help them manage their finances.
According to debtadviserdirect.co.uk, people should consider these products as they usually have lower interest rates than those on individual loans and allow people to free up more money to go towards bills and other living expenses.
In addition the period of time over which people must repay the debt can be discussed and changed if need be, meaning consumers can pay less each month but do so for a longer period of time.
"When someone consolidates their debts, they have a chance to rethink their repayments terms: they can reduce the size of each monthly payment by arranging to repay the funds over a longer period of time," a spokesperson for the company said.
source-http://www.debtmanagementtoday.co.uk/newsstory?id=18641330&type=newsfeed&title=debt_consolidation_loans_can_help
Tuesday, June 17, 2008
FCX Clarity goes into production as first customers and dealership network is announced by Honda
FCX Clarity goes into production as first customers and dealership network is announced by Honda
American Honda Motor Co. announced five of the first customers on Monday for its advanced new FCX Clarity hydrogen fuel cell-powered vehicle and also provided details of the world’s first fuel cell vehicle dealership network in the United States. The announcements were made during a ceremony for the start of FCX Clarity production at the world’s first dedicated fuel cell vehicle manufacturing facility in Japan.
Film producer Ron Yerxa will take delivery of the first FCX Clarity in July. The remaining four early adopters for Honda’s next-generation fuel cell vehicle are author and actress Jamie Lee Curtis and her filmmaker husband Christopher Guest; business owner and car enthusiast Jim Salomon; actress Laura Harris; and Jon Spallino, already the world’s first retail fuel cell vehicle customer, who has been leasing the current generation FCX since 2005. Yerxa, Harris and Spallino attended the event in Japan.
To provide its customers with sales and service support and as a critical step in advancing fuel cell vehicles in the real world, American Honda announced the establishment of the first network of dealers to facilitate the sales and service of fuel cell vehicles. The three Southern California Honda dealers are Power Honda Costa Mesa (Costa Mesa), Honda of Santa Monica (Santa Monica) and Scott Robinson Honda (Torrance).
“This is an important day in the history of fuel cell vehicle technology and a monumental step closer to the day when fuel cell cars will be part of the mainstream,” said John Mendel, executive vice president of American Honda. “Our customers and dealers share in our vision for a cleaner and more sustainable transportation future, and share in our challenge to embrace a new generation of automotive technology that we think will carry the auto industry and its customers into the future.”
FCX Clarity Customers
The five customers announced today were among the very first people to share with Honda their passion for the environment and interest in the FCX Clarity, dating back to its debut as a concept model at the 2005 Tokyo Motor Show. The initial criteria for fuel cell vehicle ownership, including proximity to hydrogen refueling stations, driving patterns and vehicle needs, all played a part in Honda’s customer selection process.
“Auto companies can’t explore the potential for fuel cell technology as the ultimate solution to our world’s energy and environmental challenges by ourselves. Our customers are true pioneers and leaders in the effort to bring fuel cell technology to the marketplace,” said Mendel.
Ron Yerxa, a film producer and partner at Bona Fide Productions, is a long-time car enthusiast and advocate for the environment. He lives with his wife, Annette Ballester, in Santa Monica, California. Yerxa first learned of the FCX Concept vehicle from a car magazine and contacted American Honda to share his interest and enthusiasm.
Jon Spallino, partner and Chief Financial Officer of an Irvine, California-based engineering and construction firm and the world’s first retail customer of a hydrogen fuel cell-powered vehicle, is excited to trade in his first-generation FCX for the all-new FCX Clarity. Having lived with fuel cell technology for three years now, Spallino and his family, residents of Redondo Beach, California, are looking forward to the all-new vehicle’s vastly improved performance, enhanced features, improved fuel efficiency, and advanced four-door, four-passenger sedan design.
Actress and children’s book author Jamie Lee Curtis and her husband, filmmaker Christopher Guest, also live with their family in Santa Monica. Curtis and Guest have owned other alternative fuel and hybrid vehicles, and they continue to seek out ways to live and advocate a greener lifestyle.
Jim Salomon, a business owner and car enthusiast, resides in Newport Beach, California with his family and will be American Honda’s first retail customer to regularly refuel at the recently renovated Irvine hydrogen refueling station. Salomon and his family live in a home he designed and built with an emphasis on energy efficiency as well as recycled and sustainable materials.
Actress and green advocate Laura Harris learned about the FCX Clarity from a friend and test drove a prototype car at the Los Angeles auto show in November 2007. Canadian-born Harris lives in Silverlake, California, and will refuel primarily in Burbank. Lessons learned from her usage patterns and experiences can help pave the way for eventual market expansion outside of the Irvine, Torrance, and Santa Monica areas.
Honda previously announced plans to deliver about 200 FCX Clarity hydrogen fuel cell-powered vehicles in the U.S. and Japan to customers in the first three years of production, with leases beginning in July. The lease program marks the world’s first large-scale retail initiative for fuel cell vehicle technology.
First-ever Fuel Cell Vehicle Dealership Network
Reinforcing its commitment to further advance Honda fuel cell technology, American Honda announced that three Southern California dealerships will comprise the world’s first fuel cell automobile dealership network. Power Honda Costa Mesa, Honda of Santa Monica and Scott Robinson Honda are each located in close proximity to hydrogen refueling stations and will be well-positioned to support Honda’s growing base of FCX Clarity customers.
American Honda is working with its dealer partners to implement processes for fuel cell vehicle lease, delivery and service support for the duration of their leases. Establishing a dedicated sales network and service infrastructure provides customers with the best balance of convenience and the highest quality of service. When the FCX Clarity requires periodic maintenance, customers will simply schedule a visit with their local FCX Clarity dealer.
American Honda will perform all required work at its specialized fuel cell service facility, in the greater Los Angeles area. Upon completion of the work, the dealer will return the vehicle to the customer.
About the FCX Clarity
The FCX Clarity is a next-generation, hydrogen powered fuel cell-powered vehicle. Propelled by an electric motor that runs on electricity generated in the fuel cell, the vehicle’s only emission is water, and its fuel efficiency is three times that of a modern gasoline-powered automobile. Based on the entirely-new Honda V Flow fuel cell platform, and powered by a highly compact, efficient and powerful new Honda V Flow fuel cell stack, the FCX Clarity marks the significant progress Honda continues to make in advancing the real-world performance and appeal of the fuel cell car. Significant advances over Honda’s previous generation FCX include:
- an advanced new four passenger sedan design
- a greater than 30 percent increase in driving range up to 280 miles*
- a 25 percent increase in combined fuel economy to 72 miles/kg-H2* (74 mpg GGE)
- a 50 percent improvement in fuel stack power output density by volume
- a 40 percent smaller and 50 percent lighter new lithium ion battery pack
Honda is responsible for the development of the world’s first fuel cell car (Honda FCX) to be certified for regular commercial use by the U.S. EPA and California Air Resources Board; the first deployment of a fuel cell car with a fleet customer; and the first individual retail customer for a fuel cell vehicle.
*Based on official 2008 EPA estimated range and fuel efficiency values
For further information:
Media Web Site: www.hondanews.com
Consumer Web Site: www.honda.com
Source: Fuel Cell Today
American Honda Motor Co. announced five of the first customers on Monday for its advanced new FCX Clarity hydrogen fuel cell-powered vehicle and also provided details of the world’s first fuel cell vehicle dealership network in the United States. The announcements were made during a ceremony for the start of FCX Clarity production at the world’s first dedicated fuel cell vehicle manufacturing facility in Japan.
Film producer Ron Yerxa will take delivery of the first FCX Clarity in July. The remaining four early adopters for Honda’s next-generation fuel cell vehicle are author and actress Jamie Lee Curtis and her filmmaker husband Christopher Guest; business owner and car enthusiast Jim Salomon; actress Laura Harris; and Jon Spallino, already the world’s first retail fuel cell vehicle customer, who has been leasing the current generation FCX since 2005. Yerxa, Harris and Spallino attended the event in Japan.
To provide its customers with sales and service support and as a critical step in advancing fuel cell vehicles in the real world, American Honda announced the establishment of the first network of dealers to facilitate the sales and service of fuel cell vehicles. The three Southern California Honda dealers are Power Honda Costa Mesa (Costa Mesa), Honda of Santa Monica (Santa Monica) and Scott Robinson Honda (Torrance).
“This is an important day in the history of fuel cell vehicle technology and a monumental step closer to the day when fuel cell cars will be part of the mainstream,” said John Mendel, executive vice president of American Honda. “Our customers and dealers share in our vision for a cleaner and more sustainable transportation future, and share in our challenge to embrace a new generation of automotive technology that we think will carry the auto industry and its customers into the future.”
FCX Clarity Customers
The five customers announced today were among the very first people to share with Honda their passion for the environment and interest in the FCX Clarity, dating back to its debut as a concept model at the 2005 Tokyo Motor Show. The initial criteria for fuel cell vehicle ownership, including proximity to hydrogen refueling stations, driving patterns and vehicle needs, all played a part in Honda’s customer selection process.
“Auto companies can’t explore the potential for fuel cell technology as the ultimate solution to our world’s energy and environmental challenges by ourselves. Our customers are true pioneers and leaders in the effort to bring fuel cell technology to the marketplace,” said Mendel.
Ron Yerxa, a film producer and partner at Bona Fide Productions, is a long-time car enthusiast and advocate for the environment. He lives with his wife, Annette Ballester, in Santa Monica, California. Yerxa first learned of the FCX Concept vehicle from a car magazine and contacted American Honda to share his interest and enthusiasm.
Jon Spallino, partner and Chief Financial Officer of an Irvine, California-based engineering and construction firm and the world’s first retail customer of a hydrogen fuel cell-powered vehicle, is excited to trade in his first-generation FCX for the all-new FCX Clarity. Having lived with fuel cell technology for three years now, Spallino and his family, residents of Redondo Beach, California, are looking forward to the all-new vehicle’s vastly improved performance, enhanced features, improved fuel efficiency, and advanced four-door, four-passenger sedan design.
Actress and children’s book author Jamie Lee Curtis and her husband, filmmaker Christopher Guest, also live with their family in Santa Monica. Curtis and Guest have owned other alternative fuel and hybrid vehicles, and they continue to seek out ways to live and advocate a greener lifestyle.
Jim Salomon, a business owner and car enthusiast, resides in Newport Beach, California with his family and will be American Honda’s first retail customer to regularly refuel at the recently renovated Irvine hydrogen refueling station. Salomon and his family live in a home he designed and built with an emphasis on energy efficiency as well as recycled and sustainable materials.
Actress and green advocate Laura Harris learned about the FCX Clarity from a friend and test drove a prototype car at the Los Angeles auto show in November 2007. Canadian-born Harris lives in Silverlake, California, and will refuel primarily in Burbank. Lessons learned from her usage patterns and experiences can help pave the way for eventual market expansion outside of the Irvine, Torrance, and Santa Monica areas.
Honda previously announced plans to deliver about 200 FCX Clarity hydrogen fuel cell-powered vehicles in the U.S. and Japan to customers in the first three years of production, with leases beginning in July. The lease program marks the world’s first large-scale retail initiative for fuel cell vehicle technology.
First-ever Fuel Cell Vehicle Dealership Network
Reinforcing its commitment to further advance Honda fuel cell technology, American Honda announced that three Southern California dealerships will comprise the world’s first fuel cell automobile dealership network. Power Honda Costa Mesa, Honda of Santa Monica and Scott Robinson Honda are each located in close proximity to hydrogen refueling stations and will be well-positioned to support Honda’s growing base of FCX Clarity customers.
American Honda is working with its dealer partners to implement processes for fuel cell vehicle lease, delivery and service support for the duration of their leases. Establishing a dedicated sales network and service infrastructure provides customers with the best balance of convenience and the highest quality of service. When the FCX Clarity requires periodic maintenance, customers will simply schedule a visit with their local FCX Clarity dealer.
American Honda will perform all required work at its specialized fuel cell service facility, in the greater Los Angeles area. Upon completion of the work, the dealer will return the vehicle to the customer.
About the FCX Clarity
The FCX Clarity is a next-generation, hydrogen powered fuel cell-powered vehicle. Propelled by an electric motor that runs on electricity generated in the fuel cell, the vehicle’s only emission is water, and its fuel efficiency is three times that of a modern gasoline-powered automobile. Based on the entirely-new Honda V Flow fuel cell platform, and powered by a highly compact, efficient and powerful new Honda V Flow fuel cell stack, the FCX Clarity marks the significant progress Honda continues to make in advancing the real-world performance and appeal of the fuel cell car. Significant advances over Honda’s previous generation FCX include:
- an advanced new four passenger sedan design
- a greater than 30 percent increase in driving range up to 280 miles*
- a 25 percent increase in combined fuel economy to 72 miles/kg-H2* (74 mpg GGE
- a 50 percent improvement in fuel stack power output density by volume
- a 40 percent smaller and 50 percent lighter new lithium ion battery pack
Honda is responsible for the development of the world’s first fuel cell car (Honda FCX) to be certified for regular commercial use by the U.S. EPA and California Air Resources Board; the first deployment of a fuel cell car with a fleet customer; and the first individual retail customer for a fuel cell vehicle.
*Based on official 2008 EPA estimated range and fuel efficiency values
For further information:
Media Web Site: www.hondanews.com
Consumer Web Site: www.honda.com
Source: Fuel Cell Today
Honda May Mass-Produce FCX Clarity Fuel-Cell Car in 10 Years
Honda May Mass-Produce FCX Clarity Fuel-Cell Car in 10 Years
Honda Motor Co., Japan's second- largest automaker, may start mass production of its FCX Clarity fuel-cell car within 10 years to meet growing demand for fuel- efficient models.
``If we can bring costs down by a certain amount, I think we can start mass-production,'' President Takeo Fukui said in an interview at its new-model center today in Tochigi prefecture, northeast of Tokyo. Honda began production of the FCX Clarity at the center today.
Honda plans to lease 200 FCX Clarity vehicles in the U.S. and Japan over the next three years and has five customers for the car in the U.S., the company said in a statement. The carmaker is adding low-pollution models including fuel-cell and gasoline-electric hybrids as record-high oil prices and tougher carbon-emission rules boost demand for cars that use less fuel.
``There's still a lot of research that's left to be done'' on fuel-cell cars, said Yuuki Sakurai, who helps manage the equivalent of 5.7 trillion yen ($53 billion) including Japanese auto stocks. ``It's difficult to fathom what the industry will look like ten years down the road.''
The FCX Clarity will initially be offered only in California, beginning in July, to take advantage of a network of hydrogen fueling stations being added across the state. The car, which has a top speed of 105 miles per hour, will be leased for $600 a month, the automaker said.
The model's first U.S. customer is Ron Yerxa, who produced the Oscar-winning film Little Miss Sunshine. Actors Jamie Lee Curtis and Christopher Guest are also customers.
Fuel cells create electricity in a chemical process that combines hydrogen and oxygen. Ideally, water vapor is the only emission.
Emerging Market Hybrids
Honda may produce hybrid cars in an emerging market by the middle of the next decade, Fukui also said in the interview. Specifically, producing a hybrid Civic model in Thailand may be an option because emerging markets have high import duties on cars, he said. It currently builds gasoline-engine Civics in Thailand.
``We would add a hybrid system to a location where we already build a base model,'' Fukui said.
Honda plans to add three new models to help raise sales of hybrid vehicles by ninefold to 500,000 units early in the next decade from 55,400 last year, the company said on May 21. Honda trails only Toyota Motor Corp. in building hybrids.
The Civic is the only model with a hybrid option now. It's also developing the CR-Z hybrid sports car and will add a hybrid option to the Fit compact car.
Hybrid vehicles combine a conventional gasoline engine with an electric motor. The electric motor powers the vehicle at low speeds, and the gasoline engine takes over as the car accelerates. The motor's battery pack is charged by the gasoline engine and by power regenerated by the brakes.
Honda was the first company to lease fuel-cell vehicles to consumers in 2005 with the FCX minivan, predecessor to the Clarity.
In Japan, Honda leases the FCX minivan to 11 central and local government officials with payments of 800,000 yen ($7,384) a month. The company leases 24 units to customers in the U.S. for $500 a month.
source-http://www.bloomberg.com/apps/news?pid=20601101&sid=aP1jZTypWBBM
Honda Motor Co., Japan's second- largest automaker, may start mass production of its FCX Clarity fuel-cell car within 10 years to meet growing demand for fuel- efficient models.
``If we can bring costs down by a certain amount, I think we can start mass-production,'' President Takeo Fukui said in an interview at its new-model center today in Tochigi prefecture, northeast of Tokyo. Honda began production of the FCX Clarity at the center today.
Honda plans to lease 200 FCX Clarity vehicles in the U.S. and Japan over the next three years and has five customers for the car in the U.S., the company said in a statement. The carmaker is adding low-pollution models including fuel-cell and gasoline-electric hybrids as record-high oil prices and tougher carbon-emission rules boost demand for cars that use less fuel.
``There's still a lot of research that's left to be done'' on fuel-cell cars, said Yuuki Sakurai, who helps manage the equivalent of 5.7 trillion yen ($53 billion) including Japanese auto stocks. ``It's difficult to fathom what the industry will look like ten years down the road.''
The FCX Clarity will initially be offered only in California, beginning in July, to take advantage of a network of hydrogen fueling stations being added across the state. The car, which has a top speed of 105 miles per hour, will be leased for $600 a month, the automaker said.
The model's first U.S. customer is Ron Yerxa, who produced the Oscar-winning film Little Miss Sunshine. Actors Jamie Lee Curtis and Christopher Guest are also customers.
Fuel cells create electricity in a chemical process that combines hydrogen and oxygen. Ideally, water vapor is the only emission.
Emerging Market Hybrids
Honda may produce hybrid cars in an emerging market by the middle of the next decade, Fukui also said in the interview. Specifically, producing a hybrid Civic model in Thailand may be an option because emerging markets have high import duties on cars, he said. It currently builds gasoline-engine Civics in Thailand.
``We would add a hybrid system to a location where we already build a base model,'' Fukui said.
Honda plans to add three new models to help raise sales of hybrid vehicles by ninefold to 500,000 units early in the next decade from 55,400 last year, the company said on May 21. Honda trails only Toyota Motor Corp. in building hybrids.
The Civic is the only model with a hybrid option now. It's also developing the CR-Z hybrid sports car and will add a hybrid option to the Fit compact car.
Hybrid vehicles combine a conventional gasoline engine with an electric motor. The electric motor powers the vehicle at low speeds, and the gasoline engine takes over as the car accelerates. The motor's battery pack is charged by the gasoline engine and by power regenerated by the brakes.
Honda was the first company to lease fuel-cell vehicles to consumers in 2005 with the FCX minivan, predecessor to the Clarity.
In Japan, Honda leases the FCX minivan to 11 central and local government officials with payments of 800,000 yen ($7,384) a month. The company leases 24 units to customers in the U.S. for $500 a month.
source-http://www.bloomberg.com/apps/news?pid=20601101&sid=aP1jZTypWBBM
Honda Announces First FCX Clarity Customers and World's First Fuel Cell Vehicle Dealership Network as Clarity Production Begins in Japan
Honda Announces First FCX Clarity Customers and World's First Fuel Cell Vehicle Dealership Network as Clarity Production Begins in Japan; Breakthrough
Tochigi, Japan, June 16, 2008 - (JCN Newswire) - American Honda Motor Co., Inc., announced five of the first customers for its advanced new FCX Clarity hydrogen fuel cell-powered vehicle and also provided details of the world's first fuel cell vehicle dealership network in the United States. The announcements were made during a ceremony for the start of FCX Clarity production at the world's first dedicated fuel cell vehicle manufacturing facility in Japan.
Film producer Ron Yerxa will take delivery of the first FCX Clarity in July. The remaining four early adopters for Honda's next-generation fuel cell vehicle are author and actress Jamie Lee Curtis and her filmmaker husband Christopher Guest; business owner and car enthusiast Jim Salomon; actress Laura Harris; and Jon Spallino, already the world's first retail fuel cell vehicle customer, who has been leasing the current generation FCX since 2005. Yerxa, Harris and Spallino attended the event in Japan.
To provide its customers with outstanding sales and service support and as a critical step in advancing fuel cell vehicles in the real world, American Honda announced the establishment of the first network of dealers to facilitate the sales and service of fuel cell vehicles. The three Southern California Honda dealers are Power Honda Costa Mesa (Costa Mesa), Honda of Santa Monica (Santa Monica) and Scott Robinson Honda (Torrance).
"This is an important day in the history of fuel cell vehicle technology and a monumental step closer to the day when fuel cell cars will be part of the mainstream," said John Mendel, executive vice president of American Honda. "Our customers and dealers share in our vision for a cleaner and more sustainable transportation future, and share in our challenge to embrace a new generation of automotive technology that we think will carry the auto industry and its customers into the future."
FCX Clarity Customers
The five customers announced today were among the very first people to share with Honda their passion for the environment and interest in the FCX Clarity, dating back to its debut as a concept model at the 2005 Tokyo Motor Show. The initial criteria for fuel cell vehicle ownership, including proximity to hydrogen refueling stations, driving patterns and vehicle needs, all played a part in Honda's customer selection process.
"Auto companies can't explore the potential for fuel cell technology as the ultimate solution to our world's energy and environmental challenges by ourselves. Our customers are true pioneers and leaders in the effort to bring fuel cell technology to the marketplace," said Mendel.
Ron Yerxa, a film producer and partner at Bona Fide Productions, is a long-time car enthusiast and advocate for the environment. He lives with his wife, Annette Ballester, in Santa Monica, California. Yerxa first learned of the FCX Concept vehicle from a car magazine and contacted American Honda to share his interest and enthusiasm.
Jon Spallino, partner and Chief Financial Officer of an Irvine, California-based engineering and construction firm and the world's first retail customer of a hydrogen fuel cell-powered vehicle, is excited to trade in his first-generation FCX for the all-new FCX Clarity. Having lived with fuel cell technology for three years now, Spallino and his family, residents of Redondo Beach, California, are looking forward to the all-new vehicle's vastly improved performance, enhanced features, improved fuel efficiency, and advanced four-door, four-passenger sedan design.
Actress and children's book author Jamie Lee Curtis and her husband, filmmaker Christopher Guest, also live with their family in Santa Monica. Curtis and Guest have owned other alternative fuel and hybrid vehicles, and they continue to seek out ways to live and advocate a greener lifestyle.
Jim Salomon, a business owner and car enthusiast, resides in Newport Beach, California with his family and will be American Honda's first retail customer to regularly refuel at the recently renovated Irvine hydrogen refueling station. Salomon and his family live in a home he designed and built with an emphasis on energy efficiency as well as recycled and sustainable materials.
Actress and green advocate Laura Harris learned about the FCX Clarity from a friend and test drove a prototype car at the Los Angeles auto show in November 2007. Canadian-born Harris lives in Silverlake, California, and will refuel primarily in Burbank. Lessons learned from her usage patterns and experiences can help pave the way for eventual market expansion outside of the Irvine, Torrance, and Santa Monica areas.
Honda previously announced plans to deliver about 200 FCX Clarity hydrogen fuel cell-powered vehicles in the U.S. and Japan to customers in the first three years of production, with leases beginning in July. The lease program marks the world's first large-scale retail initiative for fuel cell vehicle technology.
First-ever Fuel Cell Vehicle Dealership Network
Reinforcing its commitment to further advance Honda fuel cell technology, American Honda announced that three Southern California dealerships will comprise the world's first fuel cell automobile dealership network. Power Honda Costa Mesa, Honda of Santa Monica and Scott Robinson Honda are each located in close proximity to hydrogen refueling stations and will be well-positioned to support Honda's growing base of FCX Clarity customers.
American Honda is working with its dealer partners to implement processes for fuel cell vehicle lease, delivery and service support for the duration of their leases. Establishing a dedicated sales network and service infrastructure provides customers with the best balance of convenience and the highest quality of service. When the FCX Clarity requires periodic maintenance, customers will simply schedule a visit with their local FCX Clarity dealer.
American Honda will perform all required work at its specialized fuel cell service facility in the greater Los Angeles area. Upon completion of the work, the dealer will return the vehicle to the customer.
About the FCX Clarity
The FCX Clarity is a next-generation, hydrogen powered fuel cell-powered vehicle. Propelled by an electric motor that runs on electricity generated in the fuel cell, the vehicle's only emission is water, and its fuel efficiency is three times that of a modern gasoline-powered automobile. Based on the entirely-new Honda V Flow fuel cell platform, and powered by a highly compact, efficient and powerful new Honda V Flow fuel cell stack, the FCX Clarity marks the significant progress Honda continues to make in advancing the real-world performance and appeal of the fuel cell car. Significant advances over Honda's previous generation FCX include:
- an advanced new four passenger sedan design
- a greater than 30 percent increase in driving range up to 280 miles*
- a 25 percent increase in combined fuel economy to 72 miles/kg-H2*
(74 mpg GGE - 'miles per gallon gasoline gallon equivalent energy')
- a 50 percent improvement in fuel stack power output density by volume
- a 40 percent smaller and 50 percent lighter new lithium ion battery pack
Honda is responsible for the development of the world's first fuel cell car (Honda FCX) to be certified for regular commercial use by the U.S. EPA and California Air Resources Board; the first deployment of a fuel cell car with a fleet customer; and the first individual retail customer for a fuel cell vehicle.
* Based on official 2008 EPA estimated range and fuel efficiency values
source-http://au.biz.yahoo.com/080616/44/1si85.html
Tochigi, Japan, June 16, 2008 - (JCN Newswire) - American Honda Motor Co., Inc., announced five of the first customers for its advanced new FCX Clarity hydrogen fuel cell-powered vehicle and also provided details of the world's first fuel cell vehicle dealership network in the United States. The announcements were made during a ceremony for the start of FCX Clarity production at the world's first dedicated fuel cell vehicle manufacturing facility in Japan.
Film producer Ron Yerxa will take delivery of the first FCX Clarity in July. The remaining four early adopters for Honda's next-generation fuel cell vehicle are author and actress Jamie Lee Curtis and her filmmaker husband Christopher Guest; business owner and car enthusiast Jim Salomon; actress Laura Harris; and Jon Spallino, already the world's first retail fuel cell vehicle customer, who has been leasing the current generation FCX since 2005. Yerxa, Harris and Spallino attended the event in Japan.
To provide its customers with outstanding sales and service support and as a critical step in advancing fuel cell vehicles in the real world, American Honda announced the establishment of the first network of dealers to facilitate the sales and service of fuel cell vehicles. The three Southern California Honda dealers are Power Honda Costa Mesa (Costa Mesa), Honda of Santa Monica (Santa Monica) and Scott Robinson Honda (Torrance).
"This is an important day in the history of fuel cell vehicle technology and a monumental step closer to the day when fuel cell cars will be part of the mainstream," said John Mendel, executive vice president of American Honda. "Our customers and dealers share in our vision for a cleaner and more sustainable transportation future, and share in our challenge to embrace a new generation of automotive technology that we think will carry the auto industry and its customers into the future."
FCX Clarity Customers
The five customers announced today were among the very first people to share with Honda their passion for the environment and interest in the FCX Clarity, dating back to its debut as a concept model at the 2005 Tokyo Motor Show. The initial criteria for fuel cell vehicle ownership, including proximity to hydrogen refueling stations, driving patterns and vehicle needs, all played a part in Honda's customer selection process.
"Auto companies can't explore the potential for fuel cell technology as the ultimate solution to our world's energy and environmental challenges by ourselves. Our customers are true pioneers and leaders in the effort to bring fuel cell technology to the marketplace," said Mendel.
Ron Yerxa, a film producer and partner at Bona Fide Productions, is a long-time car enthusiast and advocate for the environment. He lives with his wife, Annette Ballester, in Santa Monica, California. Yerxa first learned of the FCX Concept vehicle from a car magazine and contacted American Honda to share his interest and enthusiasm.
Jon Spallino, partner and Chief Financial Officer of an Irvine, California-based engineering and construction firm and the world's first retail customer of a hydrogen fuel cell-powered vehicle, is excited to trade in his first-generation FCX for the all-new FCX Clarity. Having lived with fuel cell technology for three years now, Spallino and his family, residents of Redondo Beach, California, are looking forward to the all-new vehicle's vastly improved performance, enhanced features, improved fuel efficiency, and advanced four-door, four-passenger sedan design.
Actress and children's book author Jamie Lee Curtis and her husband, filmmaker Christopher Guest, also live with their family in Santa Monica. Curtis and Guest have owned other alternative fuel and hybrid vehicles, and they continue to seek out ways to live and advocate a greener lifestyle.
Jim Salomon, a business owner and car enthusiast, resides in Newport Beach, California with his family and will be American Honda's first retail customer to regularly refuel at the recently renovated Irvine hydrogen refueling station. Salomon and his family live in a home he designed and built with an emphasis on energy efficiency as well as recycled and sustainable materials.
Actress and green advocate Laura Harris learned about the FCX Clarity from a friend and test drove a prototype car at the Los Angeles auto show in November 2007. Canadian-born Harris lives in Silverlake, California, and will refuel primarily in Burbank. Lessons learned from her usage patterns and experiences can help pave the way for eventual market expansion outside of the Irvine, Torrance, and Santa Monica areas.
Honda previously announced plans to deliver about 200 FCX Clarity hydrogen fuel cell-powered vehicles in the U.S. and Japan to customers in the first three years of production, with leases beginning in July. The lease program marks the world's first large-scale retail initiative for fuel cell vehicle technology.
First-ever Fuel Cell Vehicle Dealership Network
Reinforcing its commitment to further advance Honda fuel cell technology, American Honda announced that three Southern California dealerships will comprise the world's first fuel cell automobile dealership network. Power Honda Costa Mesa, Honda of Santa Monica and Scott Robinson Honda are each located in close proximity to hydrogen refueling stations and will be well-positioned to support Honda's growing base of FCX Clarity customers.
American Honda is working with its dealer partners to implement processes for fuel cell vehicle lease, delivery and service support for the duration of their leases. Establishing a dedicated sales network and service infrastructure provides customers with the best balance of convenience and the highest quality of service. When the FCX Clarity requires periodic maintenance, customers will simply schedule a visit with their local FCX Clarity dealer.
American Honda will perform all required work at its specialized fuel cell service facility in the greater Los Angeles area. Upon completion of the work, the dealer will return the vehicle to the customer.
About the FCX Clarity
The FCX Clarity is a next-generation, hydrogen powered fuel cell-powered vehicle. Propelled by an electric motor that runs on electricity generated in the fuel cell, the vehicle's only emission is water, and its fuel efficiency is three times that of a modern gasoline-powered automobile. Based on the entirely-new Honda V Flow fuel cell platform, and powered by a highly compact, efficient and powerful new Honda V Flow fuel cell stack, the FCX Clarity marks the significant progress Honda continues to make in advancing the real-world performance and appeal of the fuel cell car. Significant advances over Honda's previous generation FCX include:
- an advanced new four passenger sedan design
- a greater than 30 percent increase in driving range up to 280 miles*
- a 25 percent increase in combined fuel economy to 72 miles/kg-H2*
(74 mpg GGE - 'miles per gallon gasoline gallon equivalent energy')
- a 50 percent improvement in fuel stack power output density by volume
- a 40 percent smaller and 50 percent lighter new lithium ion battery pack
Honda is responsible for the development of the world's first fuel cell car (Honda FCX) to be certified for regular commercial use by the U.S. EPA and California Air Resources Board; the first deployment of a fuel cell car with a fleet customer; and the first individual retail customer for a fuel cell vehicle.
* Based on official 2008 EPA estimated range and fuel efficiency values
source-http://au.biz.yahoo.com/080616/44/1si85.html
Saturday, June 14, 2008
It's a buyer's market for auto insurance
It's a buyer's market for auto insurance
Fewer accidents on state roads translate into lower rates, which are not hard to find.
Getting too much junk mail touting low automobile insurance rates? Being bombarded by television commercials featuring a cute gecko? ¶ Think of them as opportunities, not just irritations. ¶ California is enjoying a buyer's market for auto insurance. And consumers can find bargains -- whether they comparison shop, pick up the phone, check out the Internet or just ask around. ¶ "There's a lot of competition in auto insurance, and that translates into better rates and more options for the consumer," says Amy Bach, executive director of United Policyholders, a San Francisco advocacy group. ¶ But beware: Buyers who aren't careful could also wind up paying more than twice as much as they should for the same coverage if they pick a high-cost insurance company over a low-cost one, according to an online price comparison feature sponsored by the California Department of Insurance, www.insurance.ca.gov. The site allows shoppers to input data to get a roughly individualized premium estimate.
The survey of 48 insurance companies shows that the state's major insurance companies have widely differing rates for sample policyholders. For a Culver City middle-aged male with a clean driving record and a Honda Accord, the cost for full coverage ranged from a low of $929 a year to a high of $3,709.
The site also shows estimated premiums for other types of customers, such as a single woman from Highland Park with one ticket or a senior citizen married couple from Long Beach.
The continuing drop in premiums even surprised me, a careful watcher of insurance rates.
In March, I shopped around and found a premium that was $200 less per year than the competitively priced policy I had purchased last fall.
"It's never been easier to shop," says Robert Hartwig, president and chief economist for the Insurance Information Institute, an industry-backed clearinghouse in New York.
Average auto insurance premiums in California have been dropping for years. They declined 17% between 1996 and 2006, after being adjusted for inflation, according to state regulators. Industry analysts say the trend continued through at least the third quarter of last year, though official numbers for 2007 are not yet available.
Why the dramatic plunge? Because it's been safer to drive in recent years.
The number of most types of accidents declined from 2002 to 2006. According to the California Highway Patrol, total collisions dropped by 4.7% during the five years, injury accidents fell 17.2%, and property-damage accidents were down 3.1%. The lone increase was in fatal accidents, 3.9%.
Experts credit safer cars equipped with multiple air bags and dozens of other protective features. Additionally, they point to better designed roads and bridges, new laws that limit time behind the wheel for accident-prone teenage motorists, and aging baby boomers who have become more careful drivers.
And a new law will soon take effect that could help reduce accidents further. On July 1, California drivers will be required to use a "hands-free" system whenever they use a cellphone in a moving vehicle.
While the trend overall is downward, insurers and agents say they are already beginning to see evidence that an upward tick in rates might be on the horizon, principally because of an increase in the severity of injuries from accidents and inflation in medical costs. But they say it's too early to tell whether the market will "harden" with a generalized rate increase.
While some companies recently have won Insurance Department approval to raise rates, others are still lowering premiums.
Just last week Insurance Commissioner Steve Poizner announced that Los Angeles-based Mercury General Corp., a low-cost insurer, had lowered rates 3% for its 1.5 million customers, mainly in Southern California. In all, Poizner claims to have prodded insurers into cutting auto rates by about $1 billion in 2007 and so far this year.
He predicts that more premium reductions could be on the way "because of how healthy the market is."
Mercury's policyholders, who already are struggling with steep increases in gasoline and food prices, "won't have to worry about the cost of their insurance," Mercury Chairman George Joseph said.
Even though motorists are paying more at the pump, they still might be able to keep down the cost of operating a car and lower their insurance bill by changing their driving habits. They can, for instance, avoid short trips, carpool and take public transit. Driving less lowers the statistical risk of getting into an accident, and that should mean lower insurance premiums.
"If you've stopped driving over 10 miles to work, your rates might be 15% lower," said J. Robert Hunter, the top insurance expert at the Consumer Federation of America in Washington.
Under new rules, California rates must be based mainly on a driver's safety record, years of driving experience and annual number of miles driven; not on the ZIP Code where a car is principally parked.
The new criteria, which take full effect in mid-July, have been a focus of legal contention between regulators and insurance companies since voters approved the Proposition 103 ballot initiative in 1988.
Insurers like to grouse about government regulation. But that hasn't kept them from cutting their premiums in a scramble to gain a larger share of California's $20.3-billion annual auto insurance market, the nation's largest.
Despite lower rates and the most stringent government regulation in the nation, California auto insurers have remained profitable. They earned an average of 10% a year from 1997 to 2006, according to a study by the Consumer Federation of America.
Proposition 103 "does not mean that insurance companies can't be comfortably profitable in this state," says Douglas Heller, executive director of Santa Monica-based Consumer Watchdog.
Proposition 103 actually helped insurers to grow by creating a stable, healthy market, contends Harvey Rosenfield, the initiative's author and founder of the organization, previously known as Foundation for Taxpayer and Consumer Rights.
Efficiency and finding new markets are keys to boosting the bottom line. Tech-savvy companies like Geico and Esurance are cutting expenses by eliminating commissions paid to agents and selling policies online, directly to customers.
Other companies are generating new revenue by concentrating on marketing to Hispanic drivers, who may prefer to deal with a neighborhood agent, industry experts and executives say.
"We're a niche player interested in people who want to do all their financial services online," says Kristin Brewe, director of brand and public relations for Esurance. Total annual written premiums at the 9-year-old, San Francisco-based insurer rose from $4 million its first year, 2000, to $800 million in 2007.
Esurance recruits customers by relying on a television ad campaign that features the animated adventures of a female action heroine. "Erin" constantly battles "high-priced insurance" monsters before she swiftly buys and prints a new policy and speeds away in her car to fight another day.
"Auto insurance is really boring to most people. Nobody takes the time to think about it. They want to buy it and have it disappear," says Esurance's Brewe. "But, now, it's easy to buy on the Internet. They can save a lot of money."
source-http://www.latimes.com/business/la-fi-cover15-2008jun15,0,3253863,full.story
Fewer accidents on state roads translate into lower rates, which are not hard to find.
Getting too much junk mail touting low automobile insurance rates? Being bombarded by television commercials featuring a cute gecko? ¶ Think of them as opportunities, not just irritations. ¶ California is enjoying a buyer's market for auto insurance. And consumers can find bargains -- whether they comparison shop, pick up the phone, check out the Internet or just ask around. ¶ "There's a lot of competition in auto insurance, and that translates into better rates and more options for the consumer," says Amy Bach, executive director of United Policyholders, a San Francisco advocacy group. ¶ But beware: Buyers who aren't careful could also wind up paying more than twice as much as they should for the same coverage if they pick a high-cost insurance company over a low-cost one, according to an online price comparison feature sponsored by the California Department of Insurance, www.insurance.ca.gov. The site allows shoppers to input data to get a roughly individualized premium estimate.
The survey of 48 insurance companies shows that the state's major insurance companies have widely differing rates for sample policyholders. For a Culver City middle-aged male with a clean driving record and a Honda Accord, the cost for full coverage ranged from a low of $929 a year to a high of $3,709.
The site also shows estimated premiums for other types of customers, such as a single woman from Highland Park with one ticket or a senior citizen married couple from Long Beach.
The continuing drop in premiums even surprised me, a careful watcher of insurance rates.
In March, I shopped around and found a premium that was $200 less per year than the competitively priced policy I had purchased last fall.
"It's never been easier to shop," says Robert Hartwig, president and chief economist for the Insurance Information Institute, an industry-backed clearinghouse in New York.
Average auto insurance premiums in California have been dropping for years. They declined 17% between 1996 and 2006, after being adjusted for inflation, according to state regulators. Industry analysts say the trend continued through at least the third quarter of last year, though official numbers for 2007 are not yet available.
Why the dramatic plunge? Because it's been safer to drive in recent years.
The number of most types of accidents declined from 2002 to 2006. According to the California Highway Patrol, total collisions dropped by 4.7% during the five years, injury accidents fell 17.2%, and property-damage accidents were down 3.1%. The lone increase was in fatal accidents, 3.9%.
Experts credit safer cars equipped with multiple air bags and dozens of other protective features. Additionally, they point to better designed roads and bridges, new laws that limit time behind the wheel for accident-prone teenage motorists, and aging baby boomers who have become more careful drivers.
And a new law will soon take effect that could help reduce accidents further. On July 1, California drivers will be required to use a "hands-free" system whenever they use a cellphone in a moving vehicle.
While the trend overall is downward, insurers and agents say they are already beginning to see evidence that an upward tick in rates might be on the horizon, principally because of an increase in the severity of injuries from accidents and inflation in medical costs. But they say it's too early to tell whether the market will "harden" with a generalized rate increase.
While some companies recently have won Insurance Department approval to raise rates, others are still lowering premiums.
Just last week Insurance Commissioner Steve Poizner announced that Los Angeles-based Mercury General Corp., a low-cost insurer, had lowered rates 3% for its 1.5 million customers, mainly in Southern California. In all, Poizner claims to have prodded insurers into cutting auto rates by about $1 billion in 2007 and so far this year.
He predicts that more premium reductions could be on the way "because of how healthy the market is."
Mercury's policyholders, who already are struggling with steep increases in gasoline and food prices, "won't have to worry about the cost of their insurance," Mercury Chairman George Joseph said.
Even though motorists are paying more at the pump, they still might be able to keep down the cost of operating a car and lower their insurance bill by changing their driving habits. They can, for instance, avoid short trips, carpool and take public transit. Driving less lowers the statistical risk of getting into an accident, and that should mean lower insurance premiums.
"If you've stopped driving over 10 miles to work, your rates might be 15% lower," said J. Robert Hunter, the top insurance expert at the Consumer Federation of America in Washington.
Under new rules, California rates must be based mainly on a driver's safety record, years of driving experience and annual number of miles driven; not on the ZIP Code where a car is principally parked.
The new criteria, which take full effect in mid-July, have been a focus of legal contention between regulators and insurance companies since voters approved the Proposition 103 ballot initiative in 1988.
Insurers like to grouse about government regulation. But that hasn't kept them from cutting their premiums in a scramble to gain a larger share of California's $20.3-billion annual auto insurance market, the nation's largest.
Despite lower rates and the most stringent government regulation in the nation, California auto insurers have remained profitable. They earned an average of 10% a year from 1997 to 2006, according to a study by the Consumer Federation of America.
Proposition 103 "does not mean that insurance companies can't be comfortably profitable in this state," says Douglas Heller, executive director of Santa Monica-based Consumer Watchdog.
Proposition 103 actually helped insurers to grow by creating a stable, healthy market, contends Harvey Rosenfield, the initiative's author and founder of the organization, previously known as Foundation for Taxpayer and Consumer Rights.
Efficiency and finding new markets are keys to boosting the bottom line. Tech-savvy companies like Geico and Esurance are cutting expenses by eliminating commissions paid to agents and selling policies online, directly to customers.
Other companies are generating new revenue by concentrating on marketing to Hispanic drivers, who may prefer to deal with a neighborhood agent, industry experts and executives say.
"We're a niche player interested in people who want to do all their financial services online," says Kristin Brewe, director of brand and public relations for Esurance. Total annual written premiums at the 9-year-old, San Francisco-based insurer rose from $4 million its first year, 2000, to $800 million in 2007.
Esurance recruits customers by relying on a television ad campaign that features the animated adventures of a female action heroine. "Erin" constantly battles "high-priced insurance" monsters before she swiftly buys and prints a new policy and speeds away in her car to fight another day.
"Auto insurance is really boring to most people. Nobody takes the time to think about it. They want to buy it and have it disappear," says Esurance's Brewe. "But, now, it's easy to buy on the Internet. They can save a lot of money."
source-http://www.latimes.com/business/la-fi-cover15-2008jun15,0,3253863,full.story
Hidden car hire costs lurking abroad
Hidden car hire costs lurking abroad
Hiring a car abroad calls for extra vigilance to stay clear of “cons and hidden costs,” writes James Salmon in the Daily Mail.
Car hire operates abroad will try to convince you to agree to all sorts of extras that you don’t need when you arrive at their airport service counter, and it’s easy to be persuaded, especially if you’re tired or have particularly if you’re jet-lagged or have irritable children in tow.
The tactics often begin with the car itself. Some agents will either try to convince you to upgrade to a larger vehicle or will try to give you a vehicle you didn’t book.
When you book a car online you typically have to choose the size of car, but unsuspecting holiday makers are sometimes told that the car won’t be large enough and they’re then advised to select a larger model, at a higher rate.
The car hire company is breaching a contract if they don’t provide you what you paid for, and you’re entitled to claim back costs exceeding what you were originally promised
Ian Crowder, AA Insurance spokesman, recommended: “Don’t get fobbed off. Refuse to pay more if they haven’t got the car you booked.”
Insurance is another issue. Holiday makers are frequently told that the insurance they paid for when booking their car online isn’t actually ‘fully comprehensive’ after all.
Consumer group Which? issued a recent report documenting that it costs up to £10 a day for a compact car for additional cover, but even with this, the roof, undercarriage, windscreen, wheels and tyres of the vehicle may not be covered. “You need to make a judgment call,” noted Mr Crowder. “You may feel that paying an extra amount to protect yourself in the unlikely event of making a claim may not be worth it.”
source-http://news.carrentals.co.uk/hidden-car-hire-costs-lurking-abroad-3422569.html
Hiring a car abroad calls for extra vigilance to stay clear of “cons and hidden costs,” writes James Salmon in the Daily Mail.
Car hire operates abroad will try to convince you to agree to all sorts of extras that you don’t need when you arrive at their airport service counter, and it’s easy to be persuaded, especially if you’re tired or have particularly if you’re jet-lagged or have irritable children in tow.
The tactics often begin with the car itself. Some agents will either try to convince you to upgrade to a larger vehicle or will try to give you a vehicle you didn’t book.
When you book a car online you typically have to choose the size of car, but unsuspecting holiday makers are sometimes told that the car won’t be large enough and they’re then advised to select a larger model, at a higher rate.
The car hire company is breaching a contract if they don’t provide you what you paid for, and you’re entitled to claim back costs exceeding what you were originally promised
Ian Crowder, AA Insurance spokesman, recommended: “Don’t get fobbed off. Refuse to pay more if they haven’t got the car you booked.”
Insurance is another issue. Holiday makers are frequently told that the insurance they paid for when booking their car online isn’t actually ‘fully comprehensive’ after all.
Consumer group Which? issued a recent report documenting that it costs up to £10 a day for a compact car for additional cover, but even with this, the roof, undercarriage, windscreen, wheels and tyres of the vehicle may not be covered. “You need to make a judgment call,” noted Mr Crowder. “You may feel that paying an extra amount to protect yourself in the unlikely event of making a claim may not be worth it.”
source-http://news.carrentals.co.uk/hidden-car-hire-costs-lurking-abroad-3422569.html
Subscribe to:
Comments (Atom)