The Best Reverse Sensor

Most new cars today have reverse sensors, which tell the driver how close the car is to objects in the back. Not all of them are good, but this one is great.





This is definitely a good end to August.

Have a great September!
Nadav

nadavs

Malaysian Test-Passers

A transport expert in Malaysia is complaining about the driving habits of people there. Read and weep.

Nadav

nadavs

Chicago Auto Insurance To Be Lowered

Edward Sneineh, an insurance professional, is projecting lower insurance rates for Illinois in the future. Why? Here is his article.

Chicago Car Insurance Rates: Lower Auto Insurance Premiums Projected for Illinois in 2011

Despite of the credit mess that is exhausting most businesses, the insurance market is not presenting any sign of intense drawback, similar to some others. The insurance business is a recession proof business, which implies that no matter of what's happening in the national economy, people still have to buy and spend money on insurance policies. In reality some people argue that, since insurance is a security need, people tend to get more caring about their security concerns during these painful times, therefore demand on insurance coverage goes up.

So while we have elements that are driving the prices up such as the credit crisis, other elements are pulling the prices downward - such as lower rates of interest, deflation, and a long time suffering economy. The total direct result seems to be a lesser demand on automobile insurance. As the demand falls, more insurance carriers realize themselves committed to be little forceful with their insurance premium rates.

Based on the publications of the National Association Of Insurance Commissioners, [naic.org] The Average Premiums and Expenditures in 2007 was $794 per annum per insured vehicle, as opposed to $830 in 2003, nationwide. More recent records, according to the Wall Street Journal [online.wsj.com/article/SB122947388659212351.html] indicate that insurance 'premiums nationally rose 3.8% in November [2010] from a year ago, according to the Labor Department's consumer price index.'

According to the National Association Of Insurance Commissioner, Illinois Average Premiums and Expenditures in 2007 was set at $723, compared with $1,140 in DC and $1,104 in the State of New Jersey and $1,047 in the State of New York, for the same year of 2007.

The Chicago auto insurance sector is one of unique sectors in the financial service sector in America. Firstly the market is too large, which usually makes it inviting and easy for the auto insurance companies to enter it. Actually, handful of automobile insurers were formed from scratch in the past months to provide Chicago with low automobile insurance rates. Secondly, there is a number of insurance carriers in Chicago that are aggressively competing with each others based on premiums & rates. Finally, the Chicago car insurance rates are among the most reasonable premiums in America because of the fact that the State of Illinois guidelines are not as strict as other states such as New York, for instance.

There are over 2,500 listed insurance agencies with Chicago city address. These agencies are either captive agencies -agent inside the agency belongs only to one company like Allstate Insurance and State=Farm Insurance,- or independent agencies like Insure One or Insurance Navy. The majority of captive agencies are credit driven, which means that the rate quoted is largely decided by the credit of the applicant customer. Independent agency systems have more freedom in their insurers legal representation. As opposed to the captive system, the independent agency system enables agents to quote clients with many companies at the same time, some of these companies may work with credit pricing and others may not, consequently enabling the customers to have numerous quote alternatives.

Some people are assuming that the independent agency arrangement does not offer top insurers. In actual fact the opposite is true. Most of the highly honored insurance companies, such as A.A.A, Travelers, Safeco, and many others are using the independent agency system, and not the captive system. Independent agents, unlike captive agents, provide more options, more prices, and more features.

Ed Sneineh, insurance professional for over 20 years, former college educator of insurance, and founder of Insurance Navy, a leader in providing more competitive auto insurance quotes Chicago. Visit our website and get your SR22 Car insurance quotes Illinois in 5 minutes or less. Insurance Navy represents major carriers such as A.A.A, Travelers, Progressive, Hartford, and more than 20 other carriers.

Source: EzineArticles.com.

Thank you, Edward!
Nadav

nadavs

Properly Adjust Your Mirrors

Mirror adjustment for cars is an important pre-driving task. Here is a video showing how to do it properly.




Use it wisely!
Nadav

nadavs

Sticky Car

Cleaning my car is always a tedious task. It takes a lot of effort in this annoying hot weather (lucky for me, I'm flying again soon). However, today it was even more annoying. It turns out my car was covered in a sticky material.

The suspects are my neighbors, which have some citrus trees that are known for their tendency to spit out these sticky liquids. Even worse, my car's water is finished, so I had to drive with this glue-like material all over my windshield.

I'll have to wash my car again. Second time this month. Having a car is hard.

Nadav

nadavs

Characteristics of Good Drivers

After you pass your driving test, you need to become a good driver. One of the ways to tell if someone's good, is to look at his driving characteristics. Here is an article I wrote about this topic.

3 Characteristics Of A Good Driver

One of the things that many people agree is the fact that any of our roads are filled with people who should actually not be driving. In many cases, you will find people who drive, and behave as they are not aware of the fact that a car is actually a machine that can prove to be extremely dangerous if not handled properly. In this article, we are going to look at some of the characteristics that you should have if at all you would like to be a good driver.

A Good Driver Must Respect Other Road Users

The first thing that you should be as a driver is that you must always be ready to respect the other users on the road. You will find that the reason why people are usually very angry on their roads is simply the fact that the other road users are not ready to employ courtesy when driving on the road. On the other hand, drivers who have courtesy and are polite usually make the process of driving to be very simple.

Respect for The Vehicle

Here, we are not talking about respecting the vehicle because one spent so much money in buying it. That is not the case at all. When I talk about he process of respecting the vehicle, I mean knowing that the vehicle can prove to be a extremely dangerous machine. This will demand that the driver treats the vehicle with utmost care. Such a driver will not make the mistake of drinking and driving, or will not make the mistake of continuing driving when he knows very well that he is going to sleep behind the wheel.

The Condition of the Car

It is always important that you know the condition of the car that you are driving. Many drivers will tell you that they actually know the feel of the vehicles that they are used to driving. If you are a person who is during your own vehicle or a vehicle that you are used to driving, you should earn to understand the vehicle very well. If it is not your car or you are not used to driving it, then you should ask the owner to tell you whether there are any specific faults with the car that you need to know about or which may need to be worked upon.

If you do these three things, you will not be disappointed.

Getting your driver's license is not that hard. If you would like to pass your driving test without trying so hard, you should get yourself this amazing driving test guide.

Hopefully you found this article useful,
Nadav

nadavs

First Time Driving: Antti

Ladies an gentlemen, today we have a real treat: not only a boy in our first time driving video, but a European one. Most videos here feature an American girl, so this is a real refresher. The boy's name is Antti, and all he does is move back and forth.




This video was uploaded ten days ago, so Antti still has a very long way until he gets his license. Hopefully by then he'll do more than back and forth.

Good luck!
Nadav

nadavs

Top Gear Faster Than An Evo: Part 3

Here is the third and final part of Top Gear's Faster Than An Evo challenge. Next week - a new one.




Nadav

nadavs

Triplets Get Triple Cars

Some parents can be very generous to their children. For example, the Lewis couple. These two parents have a triplet, and all of them passed their driving tests when they turned 17. Their present was a car. For each one.

The gifts and lessons cost the parents about £14,000 (less than what I paid for one car here!), but they say it's worth it.

Congratulations to the triplet, and drive safely!
Nadav

nadavs

Three Types of Car Insurance

Car insurance comes in several types, and this blog is, as usual, here to help. This time it's John P Henderson who's helping us.

3 Types Of Car Insurance 2011

Finding insurance on the market may be tricky if you don't know what you are looking for. You need to know the types of insurance out there and what is required by your state's laws. Most states mandate that you should have auto insurance when you get a vehicle.

The minimum type of policy you should carry is the liability policy. This provides coverage for damage which happens to other drivers. This type of insurance covers only the damages to other person or property that you may cause with your vehicle.

There is another type of insurance called collision coverage provided by the insurance companies. This type of insurance, collision coverage, covers liability and car owners. It also covers the damages which happen to other cars.

The third type of insurance is comprehensive car insurance. This is just what it sounds like-a fuller version of car insurance which can help you in most situations.

Auto insurance rates may rely on the driver's age and driving record. A good driving record can go miles for you in the case of insurance. A bad driving record can increase your rates significantly.

A driving record is created by all of the traffic violations you may have. A non moving violation, like a parking ticket, does not affect your record. However, a moving violation, like a speeding ticket, does affect your record.

Insurance companies look at this record, and using a formula of their own, they analyze this as well as your age, risk on the road (high risk driver or low risk driver) and the type of car you own and they create a profile for you which they use to determine your car insurance rates.

Car insurance is tricky, and all states do not require the same amount of coverage. It is important to check on this as well.

• Save up to $500 on your next Car Insurance Quote.





• Learn more about the insurance market and how to lower your premiums





• View the best resources that will save you extra money





• Find valuable advice related to Online Car Insurance.

Source: EzineArticles.com.

Thank you John!
Nadav

nadavs

Check for Bad Oil Pump

Oil is a critical part of your engine. Without it, the engine will not run smoothly and will be seriously damaged. Here is a video showing how to check if your oil pump is OK.




Use when necessary,
Nadav

nadavs

No Need For Cars

I'm back! Germany was amazing, as always. The airport, the roads, and especially their amazing mass transport system.

Like three years ago, I never needed a car. Their combinations of trains, trams, buses, and subways is a masterpiece, and for only 6 Euros per day I was able to visit everywhere in the city.

I always envy their system, especially when I see the transport here. I have a bus every 60 - 90 minutes(!), excluding Saturdays (no buses). The closest train is 15 km away from here, and trams cannot be found in a 4000 km radius from here.

I'll definitely go back to Germany, just for another ride of those trains.

Nadav

nadavs

See If You're Good

After you drive for a while, you need to see how good you are. Otherwise, you'll be vulnerable to police tickets and even worse - accidents. Here is an article I wrote about this topic.

How To Tell If You Are A Good Driver

One thing that you will agree with me is the fact that there are so many people who manage to pass their driving tests each and every year. However at the same time, you will notice that there are so many rogue drivers on our roads, and sometimes, you even get to wonder what kinds of test these people managed to pass. Such rogue drivers are normally the ones who make driving on our roads to become a very terrifying affair. For this reason, I have set out to discuss some of the things that can help tell if you are among the good drivers, or you are among the people who make it difficult and dangerous for others to use the roads.

Do You Respect Other Road Users?

The first thing that you need to ask yourself is whether or you are a driver who respects others or you are among the drivers who does not respect others and are rude on the road. If you are a driver who has courtesy and is respectful to others on the road, thumbs up. You are definitely an asset on our roads. On the other hand, if at all you are one of the drivers who do not respect other people who are sing the road, then you are definitely a very poor driver.

Do You Respect Your Vehicle?

When we are talking about respect, we are not talking about "falling in love" with your vehicle simply because you spend so much time with "her." Instead, we are talking about respecting the car just as you would respect fire. You should know that the vehicle is a potentially dangerous machine, and if you treat it with disrespect, say by drinking and driving, you will be risking your life and you will definitely be a bogus driver.

Do You Obey The Law?

No matter how good you are at steering the vehicle, you will not be a good driver until the day you learn to respect the law. If you are one person who does not respect the law, then you will be a very big liability on our roads. On the other hand, if at all you are the kind of person who respects the law, you will indeed be a very good driver, and you will definitely be an asset worth having.

These three things are the most basic, and if you manage to master them, you will be a person who will make the lives of other road users to be very good.

Getting your driver's license is not that hard. If you would like to pass your driving test without trying so hard, you should get yourself this amazing driving test guide.

Hopefully this article helped you,
Nadav

nadavs

First Time Driving: Guera

Most first time driving videos here are filmed during the day time. Guera is different. She drove for the first time during sunset. Here she is.




This video was uploaded on August 1, so Guera still has a very long way to go until she gets her license. She's doing pretty well, so it seems she won't have a big issue with the test.

Good luck!
Nadav

nadavs

Top Gear Faster Than An Evo: Part 2

The Top Gear guys continue trying to make the Renault faster than an Evo.




Nadav

nadavs

Sometimes You Don't Need a Test

It's unbelievable, but I'm not making this up: a 100-year-old(!) woman, Peggy Hovell, started driving in 1925. Back in those days, there was no compulsory driving test. Peggy has been driving ever since without a license.

Even more amazing, she managed to remain accident-free all those 85 years. When she was recently tested to see if she can keep driving, she received a clean bill saying she is good to go.

Some people are just lucky.

Nadav

nadavs

Cover What You Need And Save

When buying insurance, some people tend to overbuy. They cover what they don't need, and pay too much. Here is an article by Julian Floyd explaining how to avoid this mistake.

Auto Insurance - Save Money and Get the Coverage You Need

While you don't need to be an expert on insurance to get the best deal, you do need to have a basic understanding of how your plan works. Making the right decision is important; and getting proper coverage could protect you from future losses.

Many people are overpaying for their premiums because they have coverage they don't need. While having all the bells and whistles for your plan sounds good, it could actually just be money out of your pocket for something you will never need. It's up to you to know what you need. However, a good insurance agent will ask the right questions, and find the best solution for your particular situation.

When you are comparing plans, consider the discounts and benefits too. Companies that offer good driver, good student, and low yearly mileage discounts are showing how much they value their customers.

The factors affecting your premium are also assessed differently by different carriers. For example, your credit score and driving history may not be as big a factor at Allstate as it would be at Century 21. For this reason and plenty of others, it is always recommend to get an automotive insurance quote from at least three different providers prior to making your decision.

To get the most out of your insurance plan, be sure to pay your premiums on time. If for some reason your coverage lapses, then you will be held financially responsible for any accidents that occur during the time your policy was cancelled. And you will still be held responsible even if you pay to have your plan reinstated after that.

To keep your costs down, get an auto insurance quote once or twice year. Check to see if you are paying too much for your policy. If you have a life insurance policy with the same company, you may lose the cash value of the policy by switching providers. Sometimes it's best to keep the life insurance plan, and just by more life insurance if you need it.

I've given you some general ways to save money on auto insurance, but the rest is up to you. You should make an effort to understand what is and is not covered under your plan. There are several options available in addition to the mandatory liability insurance: comprehensive, collision, gap, towing, personal injury protection, medical coverage insurance, car rental, credit insurance, and out of country coverage.

To learn more and save money just visit our automotive insurance page at http://www.esmallbusinesshealthinsurance.com/

Source: EzineArticles.com.

Thank you Julian! That was very helpful.

Nadav

nadavs

Locating the Speedometer Cable

If your speedometer breaks down, you need to run to the auto shop immediately to fix it. However, if you look for the cable and know what you're doing, you may be able to fix it yourself. Here is a video showing how to do it.




Nadav

nadavs

To The Airport - This Time to Fly

After three years of visiting only the arrival hall in the airport, I've finally reached the departures. Yesterday I went on an airplane and flew to Berlin, Germany.

I love airports. They always remind me of places that I've visited and loved, and there is always air conditioning, even in countries that never heard of air conditioners. I hate flying, though. It's really boring.

I'm coming back on Thursday. Don't worry, the blog will keep updating. They have a great internet service in Germany.

Nadav

nadavs

Becoming a Better Driver

Being a better driver takes practice and discipline. However, to be a really good driver, there are some more factors to consider. Here is an article I wrote about this.

Three Things You Can Do To Become A Better Driver

Many people usually try so much to get pass heir driving tests and to lay their hands on the much-coveted driving licenses. Despite the fact that many people do manage to pass the tests and then get hold of these licenses, few people usually go to our roads armed with a driver's license together with the qualities of a good driver. It is important to know that becoming a good driver actually calls for more than just the ability to steer a car left or right. I believe that the reason why you are here is the fact that you want to become a better driver. Whether you are a person who has already received your license or whether you are still looking for this precious document, this article will be of help. This is because we re going to look at three things that will help you become a better driver.

Learn To Respect Other People

When you drive through our roads, you will reach a point where you may think that selfishness and self-centeredness is something that has been engrained in the DNA of many drivers, and it is actually not something that can get out of them. This is mainly because of the fact that many road users are selfish and are not willing in any way to be considerate. If however you would like to become a better driver, I would advise you to learn to respect others.

Learn To Respect Your Vehicle

When you started learning how to drive and when you were first released onto the road, I am sure that you treated the vehicle with so much care. The reason why this was so, was that you knew that the vehicle is something that can be very destructive if not handled properly. However, once you learned how to drive, you thought you were now a "pro" and you could do anything with the vehicle. To become a better driver, you should understand that the vehicle is something that can be potentially dangerous, and you should therefore not do stupid things such as drinking and driving.

Learn To Respect The Law

The third thing that you can do to become a better driver on our roads is making sure that you learn to respect the traffic laws. If you are disrespectful to the very laws that have allowed you to possess the driving license, you will actually be doing a very foolish thing.

Getting your driver's license is not that hard. If you would like to pass your driving test without trying so hard, you should get yourself this amazing driving test guide.

Hopefully this article helped you,
Nadav

nadavs

First Time Driving: Sabrina

Once again, we have a repeating name. This time it's Sabrina, who has a very successful video blog (by the number of comments for a relatively new video). Watch her drive slowly. Very slowly.





This video is only 6 days old, so Sabrina still has a long way to go until she gets her license. With that video blog she will probably also show her driving test. I promise to update when it comes (Sabrina - feel free to notify me when that happens).

Good luck!
Nadav

nadavs

Top Gear Faster Than An Evo: Part 1

In this series, the Top Gear guys try to make a Renault Avantime faster than a Mitsubishi Evo X. Will they make it? Watch and find out.




Nadav

nadavs

Impersonation and Imprisonment

It's not a secret that some people can't drive. Some of those are very creative, and they send others to take the driving test for them. However, it doesn't always work.

A British man tried to help his friend who failed for the fifth time. He was arrested and jailed. Even worse, he failed himself. Definitely one of the most unlucky people alive. The friend was arrested as well.

There is no excuse for such impersonation, and "too tired" may be right, but the actions that followed were wrong.

Hopefully the two men learned their lesson, and will be taking the bus from now on.

Nadav

nadavs

New Texas Auto Insurance Rules

Getting auto insurance everywhere is pricey, and sometimes rules change. For example, in Texas. Here is an article by Humayun Altaf about these changing rules.

Texas Auto Insurance - New Texas Auto Insurance Minimums and Their Implications

Statistics in Austin and other Texas cities show that even though the number of car accidents is not changing dramatically, medical costs, resulting from collision are going up. This has forced the introduction of new Texas auto insurance minimums from January 1st 2011. It is worth learning more about the new requirements, irrespective of whether you plan to buy another car or you are looking to buy your first vehicle. This will help you find the most affordable deal for your needs on the market.

Drivers and vehicle owners in the state are now required to purchase bodily injury liability coverage with minimum amount of $30,000 for an injured person and with a minimum amount of $60,000 per accident. The increase in the minimum amount of liability coverage per person is $5,000 or 20%. The increase in the minimum liability coverage per accident is $10,000, which is also 20%.

The minimum amount of property damage liability coverage has not been changed. The amount you have to have is $25,000. According to state regulations, you are not required to purchase personal injury protection (PIP) coverage and uninsured motorist and underinsured motorist (UM/UIM) bodily injury coverage.

Insurance analysts have calculated that these new Texas auto insurance regulations have resulted in a 2% to 3% increase in the car insurance premiums. This is not a large rise in prices, but it further increases the need for shopping around for affordable packages and comparing multiple quotes. Furthermore, it has been estimated that drivers and vehicle owners who have many tickets and/or have been involved in a car accident and found responsible will have to pay an insurance price that is on average 7.6% higher that the one before January 1st 2011.

The good news is that the Texas car insurance prices fell by 16% in 2010. This means that even with the new increase of up to 3% or 7.6% respectively, drivers and vehicles owners will still be paying less for a policy than in 2009 and 2008.

It has been estimated that with the introduction of the new minimums, the lowest premium that a driver and a car owner in Austin, for instance, has to pay is now $450. With such a policy, you will be able to meet the Texas car insurance regulations and register your vehicle. Even though the lowest premium price is affordable, most drivers and car owners in the state are expected to pay over three times more than the lowest possible amount. Since the average amount of insurance residents of the state buy is $1,518, not it can go up to $1,556. This will be slightly higher than the average for the country, which is $1,538.

Thankfully, you can save on Texas car insurance by comparing as many quotes as possible to find the most affordable policy. Furthermore, you can take advantage of various available discounts. These include safe vehicle discounts, safe driver discounts and even senior citizens discounts. It should be pointed out that even though the new premium prices are higher, it may not be wise to raise your deductible to lower the monthly insurance costs, unless you are able to cover for this higher financial risk.

Consider the new Texas auto insurance regulations as well as your personal circumstances as a driver and car owner to choose the best possible policy.

Looking for cheap Austin Auto Insurance? Get and compare multiple absolutely free Austin Car Insurance quotes now!

Source: EzineArticles.com.

Thank you, Humayun! That cleared up some questions.

Nadav

nadavs

Convert Your Car to Run on Alcohol

Converting your car to run on alcohol can save you money on gas, but has consequences, so you better study the subject before doing it. Here is a video with details.



Nadav

nadavs

Autopilot Driving

Being tired is a fact of life. It cannot be avoided. However, driving when tired is avoidable and higly not recommended. Sometimes I find myself driving tired (and I'm not proud of it), and then I drive the car on autopilot.

This autopilot driving just gets me where I want without much attention to my surroundings. I just move forward, changing lanes from time to time, and somehow getting to my destination. If you ever arrived somewhere and can't remember the way, you were probably on autopilot.

Try to avoid this situation as much as possible, since it's very dangerous. Make sure your car provides the best environment for driving: radio, functioning air conditioner (it's much easier to fall asleep when the car is hot), and a partner (recommended). That will make sure to get you out of that autopilot mode.

Nadav

nadavs

Driving Improving Habits

Improving your driving skills requires practice and good habits. Here is an article I wrote about this topic.

Three Habits To Improve Your Driving Abilities

Whether you are here because you want to become a better driver or you are simply looking for a way to pass your driving test and then get the coveted drivers license, this article is all for you. It is important to note that a lot of people usually put a lot of effort in making sure that they get their driving license, but when it comes to driving on the road once they have their licenses, they become pathetic drivers and one might even wonder where they actually learnt how to drive. In this article, we are going to discuss some three things that you can actually do so that you can become a better driver than you already are.

Learn To Start Your Journey Early

I once lived in a town where I used public transport a lot, and every time you would tell the driver to stop making unnecessary stops (no pun intended) because they were delaying you, he would tell you that if you were in a such a hurry, you would have woken up early in the morning. This is the same advise I will give you if you are the kind of person who is always speeding because you feel that you will get late if at all you do not speed.

Understand How The Vehicle Works

It is a requirement that as a driver, you should always drive a roadworthy vehicle. However, the truth of the matter is that as the car gets old, it usually changes in such a way as to take up its own unique (and sometimes annoying habits.) As a driver, you should try to understand he vehicle so hat you can tell whether there is anything wrong with it, and whether it is time to make an unscheduled visit to the mechanic.

Respect Other Road Users

Whether you are going to meet pedestrians or other motorists, it is extremely important that you treat them with respect. If you do this, you will definitely not be disappointed. On the other hand, if at all you make the mistake of not respecting other road users, you will become a very bogus driver, because you will causing other road users to be very stressed every now and then.

The process of becoming a great road user is not difficult at all. However, you need to be very patient at all times, and know that it is not a walk in the park.

Getting your driver's license is not that hard. If you would like to pass your driving test without trying so hard, you should get yourself this amazing driving test guide.

I hope you found this article useful,
Nadav

nadavs

First Time Driving: Taylor

Like many other names in the first time driving series, we already had some Taylors. Today is Taylor number three with a quite hysterical video.



This video was uploaded a month ago, so Taylor still has a long way to go until she gets her license. Now she only needs to cool down a little and she'll be fine.

Good luck!
Nadav

nadavs

Top Gear Mitsubishi Evo vs. British Army: Part 2

Today is the second part of Top Gear's Mitsubishi Evo vs. the British Army. Enjoy!



Nadav

nadavs

Near-Crash Tests

When people are in a controlled environment, they don't necessarily drive safer. For example, the Daily Telegraph reports that over 110,000 driving tests nearly ended in a crash last year.

More than 1,000 of those ended in an accident or an assault of the examiner. Definitely not the best behavior.

Another interesting statistics figure from that article shows the pass rate in the UK last year, and it's not a pretty number: only 46.32% of the tests ended with a passing score. Definitely not a good figure.

If you want to pass and be prepared, you better get a driving test guide that will get you ready for the test.

Nadav

nadavs

How to Lower Insurance Rates

Every Monday you read here advice about lowering insurance rates, and there is no better way to start August than a good article about this issue. This time, Stephen Povinelli will educate us.

Factors That Can Lower Auto Insurance Rates

In several ways, insurance coverage is a complex industry. In one way, however, it is very easy: the money insurance companies take in from insurance buyers must produce a pool of funds adequate enough to cover all insured losses, plus the providers cost of doing market, taxes and profit.

Over time, insurance providers have developed a rational system of predicting losses and setting premiums. Based on sound data about factors that increase and reduce losses, this system of risk evaluation enables insurers to calculate a premium for each driver that presents the driver with a fair share price for the losses that will be experienced by the group whose risk profile is similar.

As well, this system engenders healthy competition among insurance providers with regard to premiums. This benefits the majority of drivers-who do not fall into high risk categories-by making insurance available to them at the lowest possible rates.

Insurers seek to set premiums so that each group will pay its fair share of the cost of insured losses, expenses and taxes. Most insurance companies actively oppose efforts to force them to abandon pricing methods that are fair to insurance customers and that help insurance providers to keep their industry predictable, an important goal in any industry and an absolute matter of survival for insurance.

One of insurers' concerns is that people understand the criteria relate to loss data and not to any type of prejudice. Unfortunately, in the ongoing societal debate about these issues, insurance providers my sometimes appear to be defending social attitudes that other people find offensive or objectionable. Insurers are not defending any type of social attitude.

What they're defending is the insurance mechanism itself, which relates the cost of insurance to the hazard insured against. Cost-based pricing is based solely on actuarial data, which are completely blind to any form of social distinctions.

Insurance companies are also concerned that before supporting changes for social reasons, people understand the full implications of such changes. If gender is to be abandoned as a cost factor, for instance, people must accept that the trade-off is not between an unfair gender-related system and a fair unisex system. While it may be considered socially fair to charge young men and women drivers the same rates for ear insurance, actuarially it is unreasonable.

Younger ladies will be paying more into the insurance pool in premiums than is justified by their losses. What is really at stake, then, is not a fair system versus an unfair system, but how society chooses to define the term fair. Insurance firms believe a truly fair system is a cost-based one. Actuarial science, not social wisdom, is the backbone of the insurance market.

Find more general auto insurance tips online. Compare discount auto insurance quotes online.

Thank you, Stephen!

I hope you found this article useful,
Nadav

nadavs