Heavy on horsepower–but often light on fuel efficiency–sports cars have played a significant role in automotive culture since Ferdinand Porsche was credited with designing one of the first, The “Prince Henry Vauxhall” in 1910. In America, Ford, Chrysler and General Motors have produced dozens of  sports and “muscle” cars which have infiltrated American culture as a symbol of freedom, success and excitement through their depiction in movies, advertisements, showrooms and on the streets.  The sight and sound of a sleek car makes us think the person driving that vehicle is, well, pretty cool. So let’s take a look at what would happen if a sedan driver were to (yes, upgrade) to a slightly used Chevy Corvette Z06 V8 as a 40th birthday (mid-life crisis *cough cough*) present.

What factors would affect the insurance premium of a sports car?

Revved up horsepower can mean higher insurance premiums. Insurance companies take several factors into consideration:

• High performance car parts are often more expensive. If you are in an accident, getting the right parts, which may be in limited production, is likely going to cost more than parts for a car that is mass produced.
• With extra power comes more risk, a word that will have your insurance underwriter cringing. Can the average driver go from safely commanding a 150 horsepower vehicle to one that has 400+ horsepower?
• Is this a second car? Typically, if you drive your car for 4,000 miles per year or less, insurance companies may consider you to be lower risk than those who drive more miles
• Advanced safety features are typically lacking on a sports cars, especially older ones. A 1969 Corvette has no airbags, no crumple zones, no multi-point seat belts and no OnStar®, which can automatically contact emergency services after an accident.
• How about theft? Sports cars have a higher rate of being stolen over regular vehicles so that puts your new wheels at extra risk. According to Forbes.com, more than one out of every 10 Corvettes sold over the past three decades is said have been stolen at least once.

So what’s the bottom line?

Let’s take “Jeff”–a 40 year old male living in Los Angeles, CA, who lives in a house and has another driver on his policy. He plans on garaging the Corvette and will purchase the following insurance coverage: Bodily Injury Liability Limits of $25,000 per person and $50,000 per accident, Property Damage Limits of $25,000 per accident, Uninsured Motorist coverage equal to his Bodily Injury and $500 deductibles on his Collision and Comprehensive coverage. About how much would his insurance change if he traded in his 2008 Toyota Camry for a 512 horsepower, 2008 Chevy Corvette Z06? Just for fun, we also considered a vintage Corvette for Jeff. The results may surprise you.*

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Question: “Sometimes I see cars driving around with no license plate. Is this legal?”

The simple answer is “no” but there are some exceptions.

All 50 states require, by law, that every vehicle in operation needs to bear a visible license plate. The logic behind this law is simple: it is an identification tag for your car. If your vehicle was stolen, police would use your license plate as a way to identify your (otherwise common) vehicle through their department.

There are some exceptions to this law. One obvious instance of a car driving around without a plate affixed to it’s bumper is when the vehicle is new. A temporary plate may be displayed from the inside of the rear window to show the purchase date of the vehicle. In some states, a new vehicle will boast the name of the dealership in the license plate area but the real credentials are on the inside of the front windshield in the form of a small sticker with a long temporary identification number on it. This is not exactly helpful in identifying your new car if it were stolen, huh?

Here’s another instance of a driver who never had a license plate on his car, and yet, it was perfectly legal. From an October 2011 article on ABC.com…

“Think Different” was an Apple slogan of which Steve Jobs was fond. It made him, of course, very rich.

Now comes a story, in the aftermath of Jobs’ death, about one of his differences: the legend of how he tooled around Silicon Valley in a Mercedes with no license plates. The stories are legion — that he parked in a handicapped-only spot at Apple headquarters; that he was just daring California police to nail him.

But David Heath of iTWire says he has heard the definitive version of the story from Jon Callas, now chief technology officer at a digital security firm called Entrust, who used to work with Jobs at Apple.

It turns out there’s a provision in California regulations that give one six months to get license plates for a new car, and Jobs took advantage of it. Yes, he leased a silver Mercedes SL55 AMG, said Callas — and every six months he traded it in for a new one.

“At no time would he ever be in a car as old as six months; and thus there was no legal requirement to have the number plates fitted,” writes Heath.

Let’s be honest with ourselves: Have you ever tapped, bumped, swiped or hit a stationary vehicle in a parking lot and driven away? With NCAA college basketball teams competing during March Madness, hundreds of thousands of fans will attend playoff and championship games. The thought of all those crowded parking lots got us thinking about how one should handle an incident involving a parked car.

First: Defining a “Hit and Run”

Hit and run is the act of colliding with another vehicle, property or human being and failing to stop to give his/her name, license number, and other information as required by statute to the injured party, a witness, or law enforcement officers. If there is only property damage and no other person is present, leaving the information attached to the damaged property may be sufficient.  Hit and run statutes vary from state to state but depending on the circumstances it may be a good idea to report the accident to the police.

So let’s say you’ve accidentally hit a parked car while leaving the lot, and the damages are noticeable. What are the steps you should take to avoid trouble down the road? Here is our advice.

A responsible driver who does damage to another vehicle will get of out their car and leave a note under the damaged car’s windshield wiper with your name, driver’s license number, insurance policy number and phone number along with a small apology. In many jurisdictions there may be an additional obligation to exchange information about one’s financial responsibility (including any applicable insurance) or to summon emergency services if they are needed. However, provided there is nobody in the other car, a note with such information should suffice. We recommend this honest and forthcoming approach.

DON’T: Flee the scene -aka- “A Criminal Offense”

A driver who hits a parked car and then drives off without further action is considered guilty of a “hit and run” crime in most jurisdictions. You could find yourself in a heap of trouble if you dash after a crash.

For one, it is illegal to leave the scene of an accident.

Next, if you’re convicted of a hit and run, you could face suspension or cancellation of your driver’s license (lifetime revocation of a driver’s license is possible in certain jurisdictions). Insurance companies often void the policies of drivers involved in this offense!

Security cameras are everywhere these days. When the driver of the vehicle turns in a police report, security footage may be the first place the officer looks for evidence to identify the guilty party. You don’t want this to be presented in a court of law. What could you possibly say to defend your actions?

Another reason to leave a note: imagine finding a big ol’ scrape along your car and then needing to spend time at the police station, helping to coordinate evidence and obtaining a police report to send to your insurance company? It would ruin your day. So why do that to someone else?  Just remind yourself: this is why you have insurance. This brings us to our next point…

What if your car is hit and there is no note left behind?

Here are steps that you can to take to help get this resolved:

• You will need to file a police report that specifies the damages
• If you carry collision, you can file a claim under this coverage. However, you will need to pay your deductible.
• In some states, if you have previously purchased UMPD (Uninsured Motorist Property Damage), you could file the claim under this coverage. Do note, this type of coverage varies by state. Please check with your agent to see how this would work for you.
• In many instances, small dings and dents are less expensive to fix by paying a repair shop out-of-pocket than by filing a claim and meeting your deductible and perhaps impacting your rate down the road…

In conclusion, although the thought may cross your mind to drive away after damaging another vehicle, don’t do it. There are too many reasons why you should simply leave a kind note, especially if you have the appropriate auto insurance coverage. If you’d like to talk to someone about whether you’re properly insured, we can help. Call us at 1-800-258-5101 to speak with an agent. We’re available by phone 8 a.m. – 12 midnight ET (Monday – Friday) 9 a.m. – 11 p.m. ET (Saturday) 11 a.m. – 10 p.m. ET (Sunday)

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Many drivers mistakenly think there is a “grace period” for making an auto insurance payment after it’s due date, inferring from the 30 day grace period some health insurance providers might offer. This is not true when it comes to car insurance. We want to share the low-down on why keeping your insurance policy active and in good standing is best for you, your credit and your rate.

A missed payment

Whether you are paying for your insurance in monthly installments or if you are paying your insurance every 6 months, if you miss making a payment on the due date you will likely be given a “cancellation notice” – a written letter from your insurance provider notifying you that your auto insurance policy has been cancelled due to nonpayment.

Are you wondering, “Can’t I just make a prompt payment so I can continue to be covered by my insurance provider?”

Again, the notion of a “grace period” does not apply when it comes to making a car insurance payment after it is due. The ability to retain coverage after receiving a cancellation notice by promptly making a payment varies by the rules of your state and by the practices of your insurance provider.

For example, in California after receiving a 10-day cancellation notice, your policy is effectively cancelled by state law but some insurance providers may reinstate you if you are prompt to call them and offer to make a payment immediately. You may be interested to know that you are still technically insured by the provider durings this 10-day time period.  But it is often challenging to get new insurance if you’ve had any lapse or have been dropped by another provider – and this is why it’s very important to make your payments on-time, every time. Please check with your your insurance policy provider for specific rules and practices.

Here’s a tip: If you’re on a pre-paid credit card, be sure to reload it before your next monthly payment to avoid a lapse in coverage or non-payment/cancellation. Also, if you have a smartphone or tablet, do a search in the app store for your insurance provider’s official app. They may be send you a push alert to remind you before a payment is due.

Typically, about 6 weeks before your insurance is slated to renew, your carrier will send you a reminder letter that a payment is due by a certain date via mail. Many carriers will also send an email notification, an automated or personal phone call, send a “push alert” to your mobile device if you have your carrier’s app installed and some companies may even send a text message to alert you that a payment is due.

Tip: If your credit card is lost or stolen during these 6 months, be sure to log into your insurance provider’s website or call them directly to update your credit card information.

How to avoid being cancelled

Almost all insurance companies will ask if you would like to have your policy set to “auto renew” which will automatically charge your credit card on the appropriate due date for your payments. By setting up an auto payment, you can be assured you won’t have a lapse in insurance coverage.

Women are bad drivers…Right?

At least that’s how the old adage goes, but let’s take a look at the facts. According to the National Highway Traffic Safety Administration, while 50% of licensed drivers were men, 57% were involved in crashes of all types in 2010. When these accidents ended fatally, the percentage involving male drivers jumped to 73%.⁽¹⁾

Insurance companies appear to take the riskier behavior exhibited by men into consideration when determining insurance rates. For example, a comparison of the average annual premium paid by two drivers, where the only difference between them was gender, yielded different results:

We’re sorry for the bad news guys, but here’s the good news. While you obviously can’t change your gender, there are things you can do to reduce your insurance premium.

• Drive safely. Prove that you are a safe driver by maintaining a clean driving record.
• Take care of your credit. Insurance companies often consider a credit-based insurance score when calculating rates. Managing your credit may help to keep your rates down.
• Don’t drive a sports / muscle car that may tempt your lead foot. You’ll pay for it.
• Check your insurance rates regularly to see if they have gone down. Even if you must drive that muscle car at breakneck speeds while swerving in and out of heavy traffic, it’s worth shopping around to try finding a lower rate. No single insurance company can best serve every driver. And, each driver’s needs change over time, which can affect your rate.

So after reviewing the facts, should we conclude that women are better drivers? That’s probably a subjective claim, but at the very least they are recognized as safer drivers. March 8th is International Women’s Day. So let’s celebrate their safe driving (and lower insurance premiums). And remember, whether male or female, Answer Financial is here to help you save. We represent more than 20 insurance companies to give you one place to compare rates and buy auto insurance easily. Check your rates today.

References:

⁽¹⁾ Traffic Safety Facts 2010: A Compilation of Motor Vehicle Crash Data from the Fatality Analysis Reporting System and the General Estimates System. Report published by National Highway Traffic Safety Administration, National Center for Statistics and Analysis, U.S. Department of Transportation, Washington D.C. http://www-nrd.nhtsa.dot.gov/Pubs/811659.pdf

⁽²⁾ All premiums shown are for personal auto insurance products. Each carrier represented has full financial responsibility for the products it offers. The hypothetical examples are in no way an official recommendation of a particular insurer, nor is it an exclusive list of the carriers available through Answer Financial. Premiums are based on the automobile premium survey results posted on:

•  (a) the California Department of Insurance website for rates effective as of March 8, 2013, and for the following selections for each scenario: (1) coverage type = standard, (2) location = Sacramento, Southgate, (3) years licensed = 9 to 15, (4) annual mileage = 12,600 to 15,000, (5) driving record = no violations or accidents, (6) vehicle = Honda Accord, and (7) Insurance for = both “Male” and “Female” options.
• (b) the Texas Department of Insurance website for rates effective as of March 8, 2013, and for the following selections for each scenario: (1) coverage limits = 30/60/25, (2) county & ZIP code = Houston 75835, (3) Age = Under Age 25, (4) your auto = truck, (5) marital status = single, (6) how you use = to & from work, (7) driving record = no violations,(8) credit rating = average, (9) Insurance for = both “Male” and “Female” options.

Here’s what leading actors in the Academy’s Best Picture nominated films are driving.

Django Unchained – Leonardo Dicaprio
Leo has been long known as an environmental activist, so it’s no surprise to see him in a fuel efficient car. His latest ride – the 2012 Fisker Karma hybrid – takes sustainability even further with reclaimed and recycled interior wood trim, animal-free interiors, solar panel roof and “Diamond Dust” paint that uses flakes of re-cycled glass. Dicaprio has even partnered with the company through his foundation dedicated to protecting the planet ‘and all of its inhabitants’. To protect his Karma, Leo can easily compare a variety of insurers and coverages.

Silver Linings Playbook – Bradley Cooper
In an interview by Vanity Fair contributor, Brett Berk, and reported by CelebrityCarsBlog.com, Bradley named among his possession a 2007 Toyota Prius and a 2004 G55 AMG Mercedes, but what did he confess he ‘dreams about when [he's] away’? This Best Actor nominated favorite loves his Vespa! Hopefully Bradley scored on his insurance like he did with the critics, and took advantage of a multi-car discount.

Lincoln – Daniel Day-Lewis
This shoe-in for the Best Actor is revered for his complete transformations into character, famously remaining in character both on and off set throughout the entire filming of his movies. He is also notoriously humble, which may be why we came up dry in our Day-Lewis-car-of-choice investigation.

Zero Dark Thirty – Jessica Chastain
This Zero Dark Thirty beauty isn’t letting newfound fame go to her head. When asked by Parade magazine how she spent her ‘first big paycheck’, the rising star replied, “I don’t spend a lot of money on things. I still drive my 2006 Prius!” As a fan of saving, Jessica can compare multiple insurance quotes at once, with Answer Financial.

Les Misérables – Hugh Jackman
This down to Earth Aussie has an affinity for Audis, even promoting the brand as a spokesperson. He drives an Audi Q7. Answer Financial is licensed to sell insurance in all 50 states, but not in Australia, so since Hugh now lives in New York City, he too can save online or with the help of an agent.

Beasts of the Southern Wild – Quvenzhané Wallis
Sorry, Nazie! At 9 years old she’ll just have to settle for a shot at Best Actress.

Argo – Ben Affleck
His face has graced many screens, but this accomplished actor is equally regarded for his achievements as a director, producer and Oscar-winning screenwriter. What’s this all-around talented artist driving? If you guessed the Tesla Model S, you’d be right. We’re betting a guy this busy doesn’t have time to shop for the best insurance rate. That’s why Answer Financial does the work for you.

Life of Pi – Suraj Sharma

On how he scored the lead in the film, this 19 year old newcomer from New Delhi, India explained that he has his brother to thank. As a favor (and with the promise of free lunch), Suraj auditioned with his brother for moral support and wound up winning the part. While we weren’t able to locate this young star’s ride, Suraj commented on Jimmy Kimmel Live that driving through LA in a cab reminds him of Grand Theft Auto.

Amour – Jean-Louis Trintignant
Among his many accolades, Jean-Louis Trintignant can claim to be one of France’s most esteemed actors, a successful viticulturist and an accomplished race car driver! The actor-racer competed for 2 decades before trading in his keys for a vineyard in South France.

These are your nominees for the 2013 Oscars – Best Car to the Stars award. Who wins your vote?

REFERENCES:

Leonardo Dicaprio: http://www.eonline.com/photos/3106/hybrid-hollywood-stars-in-eco-friendly-cars, http://www.leonardodicaprio.com/

Bradley Cooper: http://www.celebritycarsblog.com/2011/03/bradley-cooper-sits-down-to-talk-cars/

Jean-Louis Trintignant: http://filmsdefrance.com/FDF_jltrintignant.html

Hugh Jackman: http://www.bornrich.com/hugh-jackman.html, http://fourtitude.com/news/Audi_News_1/audi-australia-extends-film-sponsorship-with-unique-sydney-based-drive-in-concept/

Ben Affleck: http://www.inautonews.com/ben-affleck-drives-a-tesla-model-s#.URVO3h3BF8E

Jessica Chastain: Quoted by http://www.parade.com/celebrity/personality-parade/2013/01/13/jessica-chastain-zero-dark-thirty.html, reported by http://www.justjared.com/2013/01/13/jessica-chastain-my-first-big-purchase-was-a-couch/

Suraj Sharma: http://www.nextmovie.com/blog/suraj-sharma-life-of-pi-interview/, http://www.youtube.com/watch?v=HSjqjFT7FZA

Here is our TOP 5 List of “Interesting” Super Bowl XLVII Stats!

1. An estimated 15,500,000 gallons of gas will be used driving to and from other people’s Super Bowl parties (179,000,000 people/4 people in the avg. American family)/2 (half will host a game, half will need to travel) x 12 miles round trip (avg. city borough) = 268,500,000 / 17 MPG (avg. car) = 15,794,117 gallons of fuel

2. An estimated 71 million pounds of avocados will be diced up and made into guacamole during the Super Bowl. That’s 111 Statue of Libertys. Napkins are in your glove compartment, right?

3. Total advertising during Super Bowl festivities will exceed $12.3 billion dollars — that’s the equivalent of giving everyone watching $68.71, or 2 weeks worth of gas!

Answer Financial reminds you to drive safely around town. In the state of California, the American Automobile Association (AAA) expects a 75% increase in DUI related accidents so please exercise safe driving habits.

Boring halftime performance? Call us and we’ll get you a new insurance quote in a snap– we’ll be here at 1-800-258-5101 or visit us at www.answerfinancial.com. Enjoy the game!

Data Sources:

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Typically, about 6 months before your license is up for renewal, the Department of Motor Vehicles will check a database called the National Driver Register (NDR) and look to see if you’ve been an infamous driver… and the short answer is “Yes” – if you receive a speeding ticket outside of your state it will show up on your record in your home state.  For almost all out-of-state infractions on your driver’s license, you can count on the DMV to let you know.

Aside from major moving violations, such as DUIs, attending online traffic school can lift the gloomy out-of-state ticket cloud from hanging over your head…

Online traffic school

Most states will offer you an opportunity to participate in a traffic school course or online traffic school to reduce or eliminate the number of points on your drivers license. How long do you have to do it? Typically, one year from the time the ticket is issued is a common deadline but it does vary by state so please check with your state’s DMV website. Most states allow you to participate in traffic school once every 18 months.

Handle it right away

Although each case may vary, the faster you address the infraction and take steps to resolve what you can, such as responding to a letter and disputing the ticket, the better the outcome will be than if you wait. In the state of Texas, you are required to tell your employer of the infraction within 30 days of receiving the ticket. Also, you may be familiar with your own state’s policies of handing a ticket but you may not be aware of the states policies where you received the ticket. We suggest performing a Google search.

Prevention

With so much focus on “how to get out” of  a situation, what if you could get caught red-handed for exemplifying your good driving?

If your car was made in 1995 or later, you may be able to show companies like Esurance and Progressive what a good driver you are by plugging in a simple device that sends data to the company via plugging it into your car’s fuse box. The box, often referred to as “blackboxes” shares statistics with your insurance provider. Your speed, what time of day you drive and your annual mileage can contribute to saving money on your insurance premium along with having a clean driving record. The better driver you are, the more they’ll know it and the greater the savings on your auto insurance rates.

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Happy New Year! We’re one week into 2013…how is your resolution coming?

For many of us, the new year is a new leaf and it’s a must to kick off the New Year with renewed inspiration, but research published by Forbes.com(1) suggests that 92 percent of us give up before achieving our goals. Why is that? Lack of commitment? Loss of motivation? Distractions?

A likely contributor for many inspired resolvers is the mistake of making lofty goals without a plan for achieving them. For example, “I resolve to save more money this year” is a worthy goal, but without a way to turn your idea into something actionable, your resolutions may be setting you up for failure.

The great news is that making small changes to your spending habits and avoiding unnecessary expenses can add up to a big payoff! If saving more money is your end goal, break it into bite sized tasks you can easily commit to throughout the year. Here are a few to get you started:

1: “I resolve to be a good driver”

Did you know insurance companies offer Good Driver discounts to reward customers for good behavior? On the other hand, your premium will increase for each accident or ticket on your driving record. Be a safe driver and be sure to ask your insurance agent if you qualify for additional savings. This means sticking to speed limits, using your blinker and never texting from behind the wheel.

2: “I resolve to compare insurance rates regularly”

Insurance is an unavoidable cost for most adults, but rates change regularly for a variety of reasons, and these may vary between companies. By regularly comparing prices, you may be able to save hundreds a year for the same coverage. Mark your calendar to check your rate for savings before your policy automatically renews. With 5-10 minutes of your time, you’ll receive multiple quotes from us to compare side by side with your current plan. We offer a super simple tool to see which insurance providers can save you money. Click here to check it out.

3: “I resolve to spend less on fuel.”

There are many small things you can do to save money on fuel you’re your car. Improve fuel efficiency by monitoring your speeds. Quickly accelerating and excessive speeding are fast ways to end up back at the pumps sooner than necessary. When the time comes to fill your tank, make sure you get the lowest price around by using one of the 9 mobile apps reviewed by Mashable.com(2), which track gas prices for stations in your neighborhood. Keep the proper tire pressure to maximize your average mileage. Lastly, rethink how often you change your oil. By following the designated intervals in your owner’s manual, you can extend the life of each oil change and reduce maintenance costs. Synthetic blend motor oil is also regarded as a higher quality oil and can improve your fuel efficiency.

Remember small savings add up to big savings. To start off your year by shopping your insurance rate, get your quotes online or call to speak with a licensed agent.

(1) Dan Diamond, Just 8% of People Achieve Their New Year’s Resolutions. Here’s How They Do It., 01/01/2013, Forbes.com

(2) Christine Erickson, 9 Mobile Apps That Help You Find Cheap Gas, 03/06/12, Mashable.com

Attention California residents: 750 new laws took effect on Jan 1, 2013 and you may want to be aware of the changes.

Of interest to drivers, there are 6 new laws – including your option to present your proof-of-insurance electronically via smartphone if you are pulled over by a police officer.

Insurance: If you are pulled over by a police officer, you are now permitted to show your proof of insurance on an electronic device, such as a smartphone.

Red-light cameras: The state of California tightens restriction on the use of red light cameras in traffic signals and makes it easier for drivers to challenge tickets issued from the cameras.

Texting: Drivers may use voice commands to dictate, send or listen to text-based messages as long as the device remains hands-free (Siri for IOS or Google Voice Command for Android devices).

Toll lanes: Solo drivers of hybrid vehicles are exempt from toll charges in “high-occupancy toll” (HOT) lanes on sections of I-15 in San Diego and I-680 in Alameda and Santa Clara counties.

Used cars: Buy Here Pay Here lots that offer their own financing must post fair-market values on their autos and provide 1,000-mile, 30-day warranties on vehicles they sell.

Vanity plates: State lawmakers are no longer able to get a discount on vanity license plates.

Here is the full list of new laws for California residents: http://www.californiality.com/2010/12/new-california-laws-2011.html

We wish you safe and happy travels in the coming year!

-Answer Financial