Risk Factors and its Effects on Car Insurance Premiums

by Bianca Villares


The premium that drivers pay for auto insurance depends on certain factors, specifically called risk factors. Based on previous driving records, miles driven per year, age, etc, a driver’s risk factor is evaluated and is directly proportional to the insurance premium he or she must pay.

To make sure you pay the lowest premiums possible, think about these factors and what you can do to make them advantageous for your situation:

Driving Violations and Accidents
Insurance companies have one thing in mind: a significant number of accidents or moving violations equals to greater accident risk. Some insurance companies even penalize drivers with a bad record, which usually lasts for a number of years. Bottom line is, the more driving violations you have, the higher the premium. If you want your premiums to decrease, keep your record clean.

Vehicle Type
This is where insurance companies and car owners understand each other’s demands. Car owners of the latest, most expensive models usually get insurance with better coverage, which means higher premiums. Cheap cars cost less to insure because car owners have the option to disregard other types of coverage that are not applicable to their vehicles.

Occupation
No, they don’t check your salary. Not yet, at least. For insurance companies, a significant relationship exists between the business use of your vehicle and the premium you must pay. If your job description includes long hours of driving such as being a door-to-door salesman, expect a higher premium.

Credit Rating
A better credit rating will save most drivers from higher premiums since many insurance companies believe that poor credit history is susceptible to higher risks.

Geography
The place where you reside can also dictate your insurance premiums. Living in congested cities or areas with a lot of traffic prone to vehicular accidents raises the risk factor of drivers. High crime rate, specifically of vehicle thefts, also leads insurance companies to charge higher premiums.

Education
Drivers with higher educational attainment are charged with lower premiums.

Others
Years of driving experience, lower miles driven each year, theft protection devices and multiple cars and drivers also offer opportunity for premium discounts.

Some factors which cannot be adjusted, such as age, gender, and marital status can also affect a driver’s risk factor. Most insurance companies see drivers under the age of 25 with higher potential risk of being in an accident. Women are also considered as safer drivers than men, while a married person has lower premiums compared to a single one with the same driving record.

By calculating your risk factors, you can easily get lower premiums which could save you a lot for the years to come. Just remember though, each insurance company has a different take on insurance premiums, so it’s always best to compare the rates of multiple companies for your particular situation.

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Types of Alternative Fuel Vehicles

by Guile Canencia

As the new millennium begins, people have never been so eco-conscious. In recent years, the imminent threat of global warming has compelled us to re-consider how we do and make things. This is most especially true when it comes to our daily means of transport — the car — which unfortunately, ranks among the major contributors of air pollution (and noise pollution) in the world. Thankfully, scientists are continuing to explore new ways to address this. One of these is the use of alternative fuel vehicles (AFV).

An AFV is any vehicle that doesn’t run on petrol or diesel fuel, although a car can be considered an AFV if it doesn’t rely exclusively on petroleum to function (like hybrid cars, which rely on petrol fuel and electricity). What are the different kinds of AFV? Let’s find out.

Hybrids. Hybrids use both gasoline and electricity to run. These vehicles normally feature an internal combustion engine and a battery pack which combine to give the vehicle its propulsion power. Hybrid cars have gained popularity over the years — the most common examples are the Toyota Prius and the Honda Insight.

Battery Electric Vehicles. As its name applies, a BEV depends on the power of its battery pack. BEVs are among the cleanest vehicles because they don’t produce any carbon emission at all. Battery types may include nickel cadmium, lithium-ion, zinc-air or lead-acid batteries.

Biofuel Cars. Bioalcohol (or Ethanol) and Biodiesel are two types of biofuels that can be used on automobiles. There are still biofuel cars available today but most prefer the flexible-fuel vehicle.

Flexible-fuel Vehicles. With FFVs, you can use more than one type of alternative fuel. This is possible through the use of a multifuel engine which allows you to mix certain alternative fuels in the tank and is combusted as one. These cars are mostly found in the US and South America.

“Gas”-Powered Cars. Certain types of AFVs also run using compressed natural gas, biogas, liquid petroleum gas (or autogas), nitrogen gas, propane and hydrogen. Usually, these cars are your standard petroleum-using vehicles whose engines are modified to burn the alternative gaseous fuels.

The Solar Car. Solar cars use solar panels in order to harness the power of the sun. This type of AFV has been around for decades but unfortunately, no practical prototype has been developed yet for the masses. Nevertheless, countless solar car contests and races are being held every year and participated in by schools and universities all over the world.

AFVs may be environment-friendly but it has its disadvantages, too. AFVs are still a bit more expensive than the usual cars in the market and the availability of alternative fuels is still very limited. But still, the future promises more developments, new possibilities. Who knows? The first commercially-successful AFV may just be around the corner.

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Preparing Your Car for Winter

A treacherous road condition during winter is a bane to all drivers. Driving through snow and sleet doubles the travel time, or even worse, you and your car can even end up immobilized because of the extreme conditions.

While moving to a region with warmer climate may be the permanent solution, there are always certain precautions that are more realistic and achievable for drivers living in winter lands. To make it through the snow season without major issues, here are a few suggestions:

Check the Battery. Fact: Cold weather decreases the performance of a car’s battery. To avoid this situation, you may want to get a plug-in charger. Plug it in at night and attach it to your battery and in the morning you will be assured of a charged battery. It is also important to have your car’s battery and electrical system tested every once in a while. If the battery is almost 3 years old, it may be a good idea to have it tested at local service stations on a regular basis.

Check your Anti-Freeze. Good anti-freeze protects water in the radiator system against freezing and increases the boiling point of the water in the radiator system. To avoid it from leaking, it’s best to check your anti-freeze a couple of times a year. Experts also advise to change your anti-freeze every 2 to 3 years to keep it from breaking down. Anti-freeze is usually diluted with water following an estimate of 50/50 normal ratio. Check the directions on your specific brand to know the exact proper mix.

Pressure Check for Leaks. Conducting a pressure check can wash away any impurities such as rust that may clog the vehicle’s system. Don’t forget to inspect the cooling system for any visible leaks, especially around the water pump, radiator, hoses, freezing plugs, heater core, and clamps. If you notice that the belts are worn out, replace it right away. Frayed belts cannot drive the water pump, no matter how new or unclogged your system is.

Oil. Synthetic oil works well in both low and high temperatures. While conventional oil might lose its viscosity during the bitter cold months, the chemical makeup of synthetic oil keeps the lubrication fluid from freezing up, resulting to better lubrication of engine parts.

Tires. You may want to switch to all weather tires or get specially made snow tires for better handling when driving through the slippery and snowy roads. Keep your regular tires though because all weather tires are not advisable for prolonged normal road use. You can also attach snow chains to tires for increased traction.

Windshield Blades. Proper windshield blades can save you from a snowstorm as much as a good engine and cooling system can. Remember that visibility is the key to accident avoidance.

As for you, it’s best to keep a flashlight, a cell phone, and a medical kit in your car, just in case the weather is too much to bear for your vehicle. Think of survival, so pile up on essential items that will help you get through any unforeseen accidents or situations while driving until the winter season ends.

by Bianca Villares

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