Weighing Car Insurance Needs

We are all insuranced to death it seems. Car insurance is no exception. In some states it is even mandatory. If you're like many people, your first priority is to get the bare minimum requirements.

Where most states require car insurance, the minimum they ask for is that you have liability insurance, but it varies from state to state. This covers you when you're at fault in an accident.

Comprehensive and collision coverage are required on most lease contracts, and are essential if you own an expensive car. If you're driving an old vehicle, on the other hand, and the cost of the sum of your premium and your deductible nearly or in fact exceed the worth of your vehicle, you might want to consider doing without this coverage.

Before you purchase any type of auto insurance coverage, be sure to study your other insurance policies so you don't end up paying for something you don't need.

So what does all of this insurance lingo mean. Here are some descriptions:

1. Bodily Injury Liability. This coverage, which is required in most states, compensates the driver of the other car and its passengers in the event you get into an accident. It also covers the passengers in your car. The main consideration here is protecting your assets against lawsuits that arise from auto accidents.
Bodily injury liability is sold in standard increments that designate both how much coverage you have per person in an accident, with an additional limit per accident. For example, if you buy bodily injury worth $100,000/$300,000, each of the people you injured could be compensated $100,000, but only up to $300,000 per accident.

2. Property Damage Liability. This coverage will pay for the repair and replacement of the other guy's car or property in the event of an accident. State-required minimums are as low as $5,000, but if you total somebody's Lexus, that won't begin to cover the damage.

You're better off with a minimum of $50,000 for each vehicle you own. And to be truly safe, you should have a total of $100,000 coverage.

3. Personal Injury Protection. This is definitely one coverage you can skimp on. PIP coverage pays for the medical and funeral costs associated with an accident for you and your family — regardless of whose fault it was. But if you already have separate health, life and disability policies, you can probably forgo this one altogether. Check those policies first, but chances are those sort of expenses are already covered.

4. Uninsured or Underinsured Motorist. This coverage pays for medical and funeral costs for you and your family in the event you get in an accident with either a hit-and-run driver or a driver who doesn't have enough auto insurance. These policies usually cover bike and pedestrian accidents, too. Given the prevalence of uninsured drivers nationally, this coverage is essential. On average, it costs less than $40 a year for $100,000 worth and will make up for anything your medical insurance doesn't cover.

5. Collision and Comprehensive. Collision reimburses you for the full cost of repairs or replacement of your car after an accident. Comprehensive covers you in the event your car falls victim to a natural disaster, vandalism or theft. With either coverage, the lower the deductible you choose, the more the policy will cost you. The purpose of insurance is to protect you against big losses, not to make you whole to the last dollar. If you have an older car, you might drop this coverage altogether.

Collision and comprehensive — which can account for 30% to 40% of your total premium — are cash-value coverages. That means if your car is damaged, the most you'll recoup is the Kelley Blue Book value, which declines precipitously as your car ages. Here's a good rule of thumb: If the cost of your collision and comprehensive is more than 10% of your car's Blue Book value, it probably makes sense to drop these coverages and save a tidy sum. With most cars, you should approach this limit as the car turns five years old. Understand, however, that if you eliminate the coverage, you'll have to foot the repair bill if you get in an accident that's your fault, or if the car is totaled or stolen.

6. Extras. While insurance companies will try their hardest to sell you any number of extras to go along with the essentials, most of them aren't worth it. Consider rental-car reimbursement, which pays a paltry $15 or so a day while your car is in the repair shop after a collision. Not only is the reimbursement small, the odds you'll need it are remote. The chances are at least even that the other guy will be at fault, and his insurance will pay the full cost of this. Another dubious extra is towing coverage. It costs $25 or more per year on a policy, money you'd be better off putting toward an auto-club membership that would be exponentially more useful. One extra that is worthwhile: Full glass coverage. Auto glass is expensive and an errant stone can ruin a $500 windshield in the blink of an eye.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV’s. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.

Improving your vehicle’s value

It’s time to buy a new car and you are ready to sell your old one or trade it in. To get the most value for your car, here are a few things to consider – some you can do now, others you can consider as you make your next purchase:

1. Consider Resale Value When Buying. Buy a car that will hold its value. Resale value is based on many factors, including desirability and reliability. Some makes, such as Toyota, Honda, Mercedes and Lexus, always hold their value well. Use a good used car-pricing site such Kelley Blue Book, to research the resale history of models in which you are interested. Some options, such as air conditioning or a sunroof, will improve your car's resale value; consider buying them even if they aren't on your personal must-have list.

2. Maintain and Retain. Follow the maintenance schedule recommended by your owner’s manual. Keep receipts for all maintenance and repair work, no matter how minor. A stack of receipts underscores the fact that your car has been well taken care of. Savvy used car buyers will be willing to pay extra for a car with a fully documented service history. Also, fix everything in your car as soon as it breaks. If you're going to keep your car as long as possible, you have to want to keep it as long as possible. Don't ignore seemingly unimportant problems like broken trim bits, torn upholstery, or electrical glitches. Little annoyances tend to add up and can begin to erode your love affair with your old car. When making repairs, ask for quality parts. Discuss your options with your mechanic or parts store clerk.

3. Don’t Damage the Goods. If your car has been in a collision, any kind of damage can affect your car’s resale value. If your car was is in a major collision, it could get reported to Carfax. In any event, if your car is damaged, use an experienced repair shop with a good reputation and insist on using factory (also known as OEM, for Original Equipment Manufacturer) parts. Save all receipts and be up front and honest about any collision repair work when it comes time to sell or trade. Being evasive about collision repair may lead the buyer to believe that the damage was more extensive than you are letting on.

4. Don’t customize. Spending money on your car can actually decrease its value. If you do have your car customized, stick to non-intrusive upgrades such as new wheels or an upgraded stereo that won't require extensive re-wiring or cutting up the dashboard. Before all of this, your first priority should be to fix anything that’s broken or damaged for example dints in the bodywork or broken stereo equipment.

5. Keep it clean. The better your car appears to be kept up, the more it will be worth, and most people associate cleanliness with care. Washing and waxing your car on a regular basis is a much easier way to keep it looking good than paying for an expensive detail job when the time comes to sell. You can also have your car detailed; something most car dealerships do before reselling used cars, which gives the car a new car look and smell. Detailing is an investment well worth the cost.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV’s. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.

How To Get the Best Gas Mileage

Saving gas and making every little bit count, can add up when it comes to your fuel costs. Few people know there are a handful of things one can do to save gas, short of buying a hybrid. So here are some suggestions:

1. Weight is fuel economy's natural enemy, so removing unnecessary items — or people — from your car can translate to real fuel savings.

2. You can save fuel immediately in whatever you drive by going easy on the accelerator. Jackrabbit starts and full-throttle acceleration boost fuel consumption dramatically. It's all a matter of degree: Light acceleration saves more than moderate acceleration.

3. Top speed also plays a part. Most vehicles are most efficient when cruising in their top gear at a relatively low speed. For example, a car with a five-speed transmission would be most efficient in 5th gear at 40 to 55 mph. Wind resistance increases exponentially with speed, so as your pace increases from this point, fuel economy drops dramatically. Onboard trip computers that show instantaneous and average fuel economy are remarkably accurate. Keep an eye on this and you'll learn how to drive in a miserly fashion.

4. Keeping your tires inflated properly and your engine running right is critical to efficient motoring. Under-inflated tires can cause fuel consumption to increase by as much as 6%. (Get the proper inflation pressure from the sticker on your car's doorjamb or the owner's manual, and not the tire's sidewall.) Even if your car seems to be running well, that perplexing Check Engine light could represent a dead oxygen sensor or some other emissions control problem that causes the vehicle to waste several miles per gallon.

5. Run the air conditioner only when needed. Unlike a car's heater, which uses free engine heat to warm the cabin, the air conditioner robs engine power and lowers fuel economy. If your car has been sitting in the sun and is hotter than the outside air, drive for a few minutes with the windows open to cool it off. Then, if you're hitting the highway, close 'em up and turn on the A/C. Aerodynamics are more important at high speeds, so if you're not exceeding 35 or 40 mph, open windows won't make as much difference. It also depends on the vehicle.

6. Roof-top carriers, bike and ski racks don't do you any favors — even when they're empty. If you keep all your cargo inside the car, you'll slip through the wind better. Also, strip off any aftermarket add-ons such as bug deflectors and window and sunroof wind deflectors. By design, these items work by wrecking your aerodynamics. Sure, bug entrails on your windshield are gross, but they aren't known to cost you any fuel.

7. Lower octane costs less, but should you use it? Most modern cars that call for premium fuel can run on regular gasoline without knocking or any long-term penalty. Technically, this makes the car less efficient, but not to a degree that negates the cost savings from the cheaper fuel grade. This is true of cars for which premium is recommended and not required. If in doubt, look for terms such as "for best performance" and "recommended" as opposed to "only" or "required." If your car has a turbocharger or supercharger, you probably should stick with premium fuel. Of course, if your car calls for regular gasoline, there's no reason to run it on anything higher in octane.

8. Avoid idling your vehicle, in both summer and winter. Idling wastes fuel, gets you nowhere and produces unnecessary greenhouse gases. If you're going to be stopped for more than 30 seconds, except in traffic, turn off the engine. In winter, don't idle a cold engine for more than 30 seconds before driving away. (Older vehicles, however, may need more idling time when first started. In cold, winter conditions all vehicles may need more idling time to warm up and ensure the windshield is fully defogged. Be sure your vehicle is warmed enough to prevent stalling when you pull out.)

9. Select the right gear. Change up through the gears and into top gear as soon as possible without accelerating harder than necessary. Driving in a gear lower than you need wastes fuel; so does letting the engine labor in top gear on hills and corners. Automatic transmissions will shift up more quickly and smoothly if you ease back slightly on the accelerator once the car gathers momentum.

10. Use the cruise control. On long stretches of highway driving, cruise control can save fuel by helping your car maintain a steady speed.

11. Service your vehicle regularly, according to the manufacturer's instructions. A poorly tuned engine can use up to 50% more fuel and produces up to 50% more emissions than one that is running properly. Dirty air filters can also cause your engine to run at less than peak efficiency Regular visual checks of the air filter will tell you if it needs replacing and your owner's manual will also recommend appropriate replacement intervals. Clogged filters can cause up to a 10% increase in fuel consumption. Using the correct viscosity oil is important because higher viscosity oils have greater resistance to the moving parts of the engine, and therefore use more gas. Clean oil also contributes to better gas mileage. It is usually recommended that engine oil be changed every three to five thousand miles.

Greg Chapman of Greg Chapman Motors is a knowledgeable and leading provider of used cars, trucks, and SUV’s. Since 1959, Chapman motors has supplied reliable used cars in Austin and the surrounding area and is known as one of the bad credit car dealers in Austin. For more information please visit http://www.gregchapmanmotors.com.