Vehicle Insurance 11/13/19 – gtg
For those who are supplying vehicle parts independently, you would surely hear them say that all parts are the same. They simply want to tell that the generic parts, also known as the Aftermarket Parts, are the clones that look perfectly like the parts that came from the automakers or what they call as the Original Equipment Manufacturer.
With the introduction of the aftermarket parts, the OEM prices decreased by as much as 30 percent. It is not only the car owners who would like to spend less on their vehicles who are fond of aftermarket items. The IIHS or Insurance Institute for Highway Safety also thinks that it doesn’t matter if the car parts are aftermarket or OEM as long as it works perfectly fine. There are tons of car insurance companies who are also using aftermarket parts as well so that they would be able to offer low premiums and able to maintain low costs for the expenses of the damaged vehicles at the same time. The CAPA or Certified Automobile Parts Association is trying to exert some effort to stop the selling or at least decrease the customers of these products. Unfortunately, the market has increased by as much as 15 percent.
The Auto Body Parts Association established the CAPA way back in 1987. Most of the funds of the CAPA came from the experts in collision repair as well as the insurance industry. Moreover, there are also 14 members who are included in the Board of Directors as well so that they could give the association the advice that they need.
It was in 1999 that the major setback in the aftermarket products happened. It was the case of the State Farm versus the Avery where it involved the purchasing and using of the aftermarket products for the vehicle. State Farm was proven to be liable for damages worth more than $400 billion. Moreover, State Farm also gave a $730 billion worth of penalty for the other damages as well.
Those who have filed for the petition said that the State Farm Mutual Auto Insurance Company never told them (the policyholders) that they are using aftermarket products that came from independent auto repair shops. This resulted in the violation of consumer fraud laws. Aside from that, the plaintiffs also claimed that the parts that were used did not restore the pre-cash condition of their automobiles as well. Therefore, the State Farm Mutual Auto Insurance Company did breach its contract with its policyholders.
Because of this, many insurance companies have avoided the aftermarket vehicle parts after the case. As a result, the automakers have gained once again the captive market. The insurers, as well as the policyholders, weren’t able to save money.
But just a few years after the State Farm case, the advocacy group called the Public Citizen spearheaded by Ralph Nadir claimed that the rule must be condemned. The monopoly of the OEMs truly does not serve the needs of customers. Instead, it cost the insurance companies which will be passed to their policyholders as well.
It is likely, however, that insurers will be wary of using aftermarket parts in the near future unless more judgments are overturned or there is legislation clearing the way for aftermarket parts. CAPA produced model legislation introduced by the National Council of Insurance Legislators in 2002. That legislation was tabled, so the status quo remains for now. Were this legislation passed, CAPA says, it would protect the public from both an expensive monopoly and substandard parts.
Vehicle Insurance Quotes
Car insurance is a business that needs a lot of competitive spirits. Because of this, consumers are in a winning situation especially if they know how to compare auto insurance quotes to get the best auto insurance deal.
Today, there are now several insurance sites that will give you the best auto insurance quotes and deals for all your auto insurance needs. All you have to do is to provide online details about you, your driving record, your budget for insurance, and what you need in car insurance as well. You will be given all the details that are related to your vehicle insurance. Afterward, you may start collecting all these quotes so you can give them to the local insurers who are willing to offer you competitive auto insurance rates.
The real price of the auto insurance
The cost that is related to cars or any kind of vehicle is rapidly increasing from year to year. As a result, the vehicle insurance quotes also rise as well. Aside from that, the Insurance Information Institute also said that there are more factors affecting the rise in the car insurance rate including the increase in legal costs, medical expenses, car repair prices, drunk driving, fraud, and theft.
LEGAL AND MEDICAL COST – every year there are more than a million road accidents that cause injury to those who are involved. More often than not, the cost of treating a victim starts from $6,000 up to $9,000. Aside from that, the US Department of Transportation also said that the cost of death due to road accidents can reach as much as $150 billion annually.
VEHICLE REPAIR – the cost of repairing a vehicle depends on the model and the type of the car. The more expensive your vehicle is, the higher will be its insurance rates.
THEFT – people who are trying to steal trendy and luxurious vehicles are rampant today. One of the policies included in auto insurance is the coverage for auto theft. If your car is at risk of theft or burglary, you will be paying a price higher than the average old car.
FRAUD – every year fraudulent claims are made by thousands of Americans according to records of NICB. Some of the most common fraud schemes include auto repair fraud, injury fraud, worker’s compensation fraud, and homeowner’s fraud or claim. One way to avoid becoming a victim of these fraud insurance schemes is by verifying the license number of the insurance agent who you will be working with.
DRUNK DRIVING –according to the National Center for Injury Prevention and Control, there are at least 1 out of 3 Americans are involved in drunk driving. In the same study, there is actually one road accident caused by drunk driving every 30 minutes. Some result in injuring the victims fatally while others result to death. This is one of the greatest factors that contribute to the increase of insurance quotes for all consumers.
With all the information about why car insurance quotes are high, you would now surely understand why it is essential to look for the best car insurance company that would give you reasonable car insurance rates.
The Final Say
Now that you have the scoop on what’s really behind your auto insurance quotes, you have the final say. Let us put you in touch with up to five insurance agents who understand these issues and their impact on your life.
There are no definite day or time that a severe weather can strike. The way you drive during these conditions has a big difference between pulling over as you wait for the tow truck to pick you up and going home safely because you are a cautious driver. Although you probably have your car insurance, it is still advisable that you should not use it and prevent yourself from any accidents on the road.
Below are some of the tips that you can use when driving under severe weather conditions:
During the winter season, the road may be covered with snow and ice. This is actually one of the most challenging road conditions since the road can be very slippery on the said season. Before driving, you must see to it that you take the ice off of your window and clean it. This would actually help you improve your vision of the road. You will then put your defensive driving skills into use. You must also make sure that you drive on a slow speed and see to it that you maintain it that way. On the other hand, when driving in a road with deep snow, drive at a speed that is fast enough to help you keep the car’s momentum. You should also be certain that you can still take control of your vehicle while doing so. If you will be passing areas like an overpass or a bridge, try to reduce your speed. More often than not, these areas accumulate ice. This may result in changing the vehicle’s direction or speed causing road accidents.
Meanwhile, if you really have to drive under a very foggy condition, you should always drive on the right side of the lane. Moreover, you headlights must be in low beam only while you drive. If in case you are really having a hard time seeing the road, it would be best if you would just pull over. Wait until the visibility of the road improves. And when pulling over, stay at the far right side of the road so that you are far from the traffic lane. Turn on the hazard lights as well so that other drivers will still see you and avoid you.
Lastly, extreme wind and rain can also be troublesome for everyone who is on the road. Big vehicles or the so-called high profile vehicles including the motor home, RV, and trailer homes are not advised to travel during this extreme weather condition. They can start rolling on the roads again when the wind has died down. These vehicles are in a great risk of being overtaken by the great wind and may be a threat in the safety of the driver as well as the passengers inside.
When it rains, you must take extra caution when driving. The rain water will not only make the road slippery. It will also mix with the common dirt and vehicle oils that can be found on the road. Just keep driving in a speed that would still maintain a contact between the surface of the road and your tires.
Be sure you and your car are protected by the most comprehensive auto insurance policy at the best price. Use our auto insurance quoting service to get up to five instant car insurance quotes from the top car insurance companies in your area. Why not try us and start saving today?