Category Archives: Automotive News

Automobile Recalls Affecting Insurance Rates

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The United States has one of the largest vehicle markets in the world. There are over 260 million registered passenger vehicles according to a 2007 Department of Transportation (DOT) study. With vehicles outnumbering licensed drivers, the automobile has become an integral part of American life.

With the amount of work that goes into vehicle design, it is not surprising that flaws occur. If you have been paying attentions to vehicle recalls, it seems like there is a new one coming out almost every day. Since the safety of a vehicle is a factor in determining insurance rates, it would seem logical that if a vehicle has had safety recalls, the insurance rate on the recalled vehicle may raise.

In general, car insurance premiums can be increased every time the policy is up for renewal. While an insurer may do this for a number of reasons, a mechanical defect of the vehicle cannot be controlled by the consumer. But, if the policy holder does not follow the recall notice in a timely manner, and ends up getting into an accident because of a failure of the recalled part, they could be held responsible for the damages. If you do not respond to a recall notice at all, an insurance company may drop you altogether. Another way your insurance rates can be affected by recalls, is the recalls decrease the resale value of the vehicle. If the replacement value of a vehicle decreases the insurance rates should decrease as well.

Safety issues that cause accidents and damages, can hold the car manufacturer responsible and may recoup money from them. In this case the insurance company does not need to gain more money from its policyholders since the car manufacturer is paying for what they are responsible for.

Dealing with the auto insurance industry is never easy and, when the vehicle manufacturers gets involved, it just adds to your problem. For now, there should be no cause of concern so long as you pay the premiums on time and take the vehicle in for repair as soon as you get the recall notice. If you believe your premiums have been raised unfairly or in error, you do have some recourse. Most insurance companies have procedures in place through which a customer can file a complaint. When all else fails, a customer can sign up with a competing insurer. Take precautions however: an auto insurance policy is a legally binding contract between you and the company. You need to give advance notice of cancellation and make certain your new policy is in effect. Don’t just stop paying your premium, or you could be penalized.

Californias 2010 Los Angeles Auto Show

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2010 LA Auto Show
– Watch more Videos at Vodpod.

The Los Angeles Auto Show is the last major auto show of the year. This year turned out to be one of the biggest and best seen in a while. Over 1,000 cars, trucks and SUVs were displayed, consisting of electric vehicles, hybrids, high performance super cars, and one of a kind concept cars.

The 2010 show was especially successful with a record number of debuts: 20 world and 30 North American debuts. Many of the car manufacturers debuts showed environmentally friendly and fuel efficient electric and hybrid vehicles. The Chevrolet Volt received much attention, winning the 2011 Green Car of the Year award.

Google Develops Self Driving Car

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According to the World Health Organization, more than 1.2 million lives are lost every year in traffic accidents. Many of these could have been avoided, as often they were caused by distracted drivers or by driver error. The scientists at Google feel that if cars were able to drive themselves, the amount of accidents could be greatly reduced, and that’s just what they set out to do.

Google has developed a self driving car which uses video cameras, radar sensors and a laser range finder to see other traffic. The car is programmed with detailed maps and traffic information and uses Google’s data centers to process the information allowing it to navigate the roads safely. Google feels this technology will not only reduce traffic accident, but will increase the number of people being transported by allowing more cars on the road and transforming car sharing businesses. Because the cars will be safer, safety features could be removed from cars making them lighter and more efficient. The car can also be programed to drive at the optimal fuel efficiency.

These automated cars, manned by trained operators, drove from Google’s Mountain View campus to their Santa Monica office and on to Hollywood Boulevard. They’ve driven down Lombard Street, crossed the Golden Gate bridge, navigated the Pacific Coast Highway, and even made it all the way around Lake Tahoe. In total, the self-driving cars have logged over 140,000 miles.

According to Google, “We’ve always been optimistic about technology’s ability to advance society, which is why we have pushed so hard to improve the capabilities of self-driving cars beyond where they are today.” While this project is very much in the experimental stage, it provides a glimpse of what transportation might look like in the future thanks to advanced computer science.

The Emerging Automobile Industry In China

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Since the end of 2009, China has become one of the largest auto manufacturers and markets in the world. The number of registered vehicles on the road in China reached 62 million in 2009, and is expected to exceed 200 million by 2020. Almost half of the cars manufactured and sold in China are Chinese vehicles, the rest are being produced by joint ventures with foreign car makers such as Volkswagen, General Motors, Hyundai, Nissan, Honda, Toyota,… etc.

The negative impact of cars in Chinese cities is already obvious. Congested roads, car accidents, fuel shortages, air pollution, parking difficulties,…etc, have already become issues. Government officials warn that overcapacity of the market will lead to negative market competitiveness, a loss in enterprise efficiency, factory stoppages and other problems. Analysts feel that the development of green energy vehicles is the best way for China to reduce the environmental impact the exploding auto industry will have on their country.

The green industry in China may seem like a good market to get into, but the hope that American workers will see their products exported to this rich foreign market are not good. China will only do business with companies who share their intellectual property and who manufacture in their country. A foreign company must enter a joint venture with a Chinese firm, and that the firm has to have substantial ownership of the intellectual property, otherwise, there will be a duty on making the car in China.

The White House has already got a jump start on electric technologies by encouraging construction of plants that make electric cars, batteries and parts that go into them. According to the Obama administration, the United States is on track to produce 40 percent of the world’s battery technology by 2015. The industry expects the American market to gobble up most of that supply. In order to keep jobs here, U.S. demand for EV components must rise, otherwise the risk of exporting yet another industry away from U.S. soil will be the result.

Improving Safety On The Road

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The death toll on U.S. highways for 2009 has been the lowest in 50 years, according to a federal Department of Transportation report earlier this month. We might think that we have become better drivers, but there are many factors that have contributed to this decline.

  • Safety features on cars have significantly improved in recent years. Technology like multiple airbags, electronic stability control, automatic tightening seat belts….once found only on expensive cars are now becoming standard, even on economy cars. Historically it is the luxury vehicle consumers who pay for this technology. Luxury car manufacturers develop the technology making it cheaper for other manufacturers to obtain.
  • Competition between manufacturers means better deals. Once one car manufacturer starts offering a certain safety feature, it isn’t long before the competition offers it as well. Each manufacturer wants to sell the most cars, so the competition will keep prices low while offering the most. Most recently, car manufacturers are competing to develop infotainment systems, like Ford’s “Sync” and Kia’s “UVO”, to prevent drivers from becoming distracted while driving.
  • Online shopping makes it easy for the consumer to see what every car manufacturer has to offer. They can research crash test results to see which automobile is the safest. Recalls and technical service bulletins are much easier to obtain, making it easy for the consumer to get safety issues repaired before they cause problems.
  • Finally, pressure from government regulators have also played a big role in the safety of our vehicles. Ever since seat belt laws were made mandatory, the government has set standards to improve safety. As the technology becomes more affordable, government standards become higher. For example, in 2006, the government proposed a rule to require stability control as standard equipment in all 2012 model cars.

It’s good to know that auto manufacturers have our well being in mind, but we must remember that they are not a replacement for safe driving practices. While new technologies may cut out human error factors, they are prone to their own glitches as well.

Pet Distractions While Driving

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There are many stories about the dangers of drivers becoming distracted by their cell phones while driving. The problem has become so wide spread that some states have brought in laws that prevent drivers from using their phones completely while behind the wheel. The government spends millions of dollars every year, on programs to catch anyone who ignores these laws.

A new survey done by the American Automobile Association (AAA) shows that pets riding in cars can be just as distracting to drivers as texting while driving. One in five dog owners say that they let their dogs sit on their lap while driving. Owners have also addmitted to petting, playing and feeding their dogs while driving. With reports like these, it is not surprising that 60% of pet owners say that they have been distracted at least once by their pets while behind the wheel. Even a well behaved dog can become a hazard in a vehicle during hard braking or quick maneuvering situations.

For now, there are no laws requiring drivers to buckle up their pets or prohibiting them from holding animals on their laps. But police can ticket drivers for having an obstructed view of the road or being obstructed from using the steering wheel and other mechanisms in the vehicle.

Biofuel Choices At The Pumps In Oakland

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Last Tuesday, Oakland opened its first bio fuels station offering fill ups for cars that can run on renewable alternatives to gasoline. The station, operated by Propel Fuels, not only offered each new customer five free gallons of fuel, but had a marketing team on hand to assist customers who were not sure whether their vehicle was bio fuel compatible. (Those wondering whether their cars can run on bio fuels can visit Propel’s online guide).

Propel has been expanding its California operations rapidly since entering the state in January 2009. Stations similar to this one opened in Fremont and San Jose this summer, and a Berkeley station is expected to open soon. Emily Shellabarger, Propels marketing specialists says, “our focus is now on California. We are interested in building a California-wide network .” And this network will soon be a reality with an $11 billion grant from the Department of Energy and the California Energy Commission. With this money, they will build and operate 75 self serve alternative fuel stations across the state over the next two years. Propel said it will match the grant funding with $16 million in private investment to speed up building of Propel’s network of fueling stations.

In addition to luring drivers to its stations, Propel has tried to widen its customer base through social networking. The company communicates with customers and seeks out new ones online by means of both a blog and a page on Facebook.

Easier Parking In Los Angeles

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The Express Park program is a year long program aimed at making parking easier for Los Angeles downtown motorists. The LA Department of Transportation has begun installing high tech parking meters throughout the city that will allow motorists to pay with credit and debit cards as well as the traditional coin method. This network of meters will also be used to keep track of parked cars in real time, and will eventually be able to alert motorists to empty parking stalls. The program will feature adjustable parking rates, which will increase and decrease rates according to demand. The experimental programs goal is to encourage public transit and reduce pollution and congestion caused by motorists cruising the block in search of a parking place.

Los Angeles is developing ExpressPark in partnership with Caltrans and the Los Angeles County Metropolitan Transportation Authority, using $15 million in grants from the federal Department of Transportation and $3.5 million in city funds. The program is similar to one recently launched in San Francisco and will cover 5,500 on-street metered spaces and 7,500 unmetered public parking spaces in off-street, city-operated facilities. The areas you will see these meters popping up includes Civic Center, the central business district, Chinatown and Little Tokyo.