Guidelines to help you file a claim

Car insurance protects you against loss associated with bodily injury and personal damages in the event of an accident. The following guidelines can help you file your claim.

• You must exchange contact information (license plate numbers, name of the insurance company and its phone number) with the other driver involved in the accident. You can also find the contact details of the other driver’s insurer on his insurance identification card.
• Look for witnesses and ask them if they are ready to reveal what they saw in case their account of the accident is required. If they are willing to testify, ask for their names and contact numbers.
• You must get a report prepared by the local law enforcement officers. These officers prepare a report after investigating the accident. In case you cannot reach the law enforcement authorities, you may get your report prepared by the police departments or the local Department of Motor Vehicles.
• You must inform your insurer about the accident as soon as possible. Most insurance companies have 24-hour phone service for filing claims.
• If the other driver is at fault and you do not have collision coverage on your car, you can file a claim against the other driver’s insurer. When you are pursuing a claim through the at-fault driver’s insurance, you must inform the at-fault driver’s insurance company that you will ask for reimbursement for the loss.

If you are not satisfied with the costs of damages reimbursed to you, the appraisal clause of your auto policy can be used to settle the dispute. In such a case, you may also ask your car insurance company for a form of arbitration.

There’s a Toyota recall in progress – and someone’s responsible!

Actually, a number of pieces within the organizational puzzle are responsible for the braking and acceleration problems that have landed the Japanese automaker in hot water. Congress has Toyota’s North American sales force President Jim Lentz on the carpet for questions about why it has taken Toyota so long to get the vehicles under scrutiny out of circulation.

So here are your top 10 Toyota hearings moments in chronological order, with thanks to USA Today’s live blog of the event. Remember, as Lentz told Congress, “Nothing is more important to Toyota than the safety and reliability” of their cars, so electronics, floor mats, defective accelerator pedals and more are all being considered.

10) 2:27 p.m. ET – Pertinent models of Toyota and Lexus models will have a break-override retrofitted, because locking the brakes is bad news.

9) 2:31 p.m. – Turns out it isn’t floor mats, accelerator pedals or computers, but Toyota is listening to customer complaints… to do their job for them, I say.

2:37 p.m. – Lentz says his engineering people can’t replicate the acceleration problem and says it’s doubtful other engineers who claim to have replicated the problem actually did so. J’accuse!

7) 2:45 p.m. – “Sometimes customers are wrong,” says Lentz. But “we are not here blaming customers.” Double j’accuse! These are shaping up to be some interesting Toyota hearings.

6) 2:54 p.m. – Lentz informs the panel that U.S. and Canada will now be represented on the Toyota safety board in Japan. This will facilitate quicker communication.

5) 3:03 p.m. – Rep. John Dingell (D-Mich.) wonders if the timing of the Toyota recall isn’t more than coincidence. Lentz isn’t sure, but manages to slip in that once an assistant Transportation Department secretary visited Japan a month after problems began to occur, the Toyota recall “might” have built steam.

4) 3:07 p.m. – Could electromagnetic interference be involved here? Lentz says Toyota hasn’t tested for that yet.

3) 3:27 p.m. – “We didn’t do a very good job of sharing information around the globe,” says Lentz. This after admitting Toyota knew “for years” about the problem. Perhaps they should graduate from the Pony Express method of message delivery.

2) 3:45 p.m. – “We lost sight of the customer,” Lentz says. Who would have thought that floor mats move, or that a customer might place them on top of one another and create a potential pedal problem?

1) 4:28 p.m. – I didn’t know cars have black boxes, but apparently it’s so. Yet only Japan can read them right now. The U.S. will catch up in April, says Lentz.

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Are you seeing this, Standard & Poor's?

Toyota is a brand that has been synonymous with quality over the years. While they remain a high-quality automaker, the recent Toyota recall (including the little Prius braking problem) have but a bit of a damper on their financial outlook. Not only will it cost Toyota millions to perform the recalls, but Standard & Poor’s have downgraded Toyota Financial’s credit rating in light of these questions regarding vehicle quality. Will shrinking credit mean shrinking Toyota prices, and hence the need for smaller car loans?

They’re officially on “watch negative”

The AA long-term CreditWatch for Toyota and Toyota Financial has been dinged, as have those of Toyota suppliers Denso, Aisin, and Toyota Industries. Standard & Poor’s suspects that the dip in Toyota Financial’s credit will not be resolved until May 2010 at least.

The official reason given for the downgrade is “increased concern over the potential negative impact on Toyota’s business risk profile of unfolding developments related to recent quality-related issues.” Stuck accelerators, improperly designed floor mats and defective braking systems in Japan and the U.S. have a tendency to do that, no matter how much the actual risk may have been overblown. Decreased sales and a business strategy that must accommodate for massive recalls are good for the bottom line in the short term, hence the credit rating decrease.

Toyota forecasts profit after major loss in 2009

We all know 2009 was a tough year for automakers. And for some, it goes back years before that. Toyota’s conservative fiscal policy (get it, GM?) has placed them squarely on the road to recovery, so the recall only took Toyota Financial and company down by a single notch. The Prius recall hasn’t even been figured into the rating yet. Thus, Standard & Poor’s continues to watch like a rubbernecker passing a horrible traffic accident, because of course things can always get worse.

Thankfully, Car Deal Expert can put you on the road to the car of your dreams

We make it possible with our easy car loans application. Apply now and see if a Toyota or other vehicle is within reach!

(Photo Credit: http://www.flickr.com/photos/tomeppy/ / CC BY 2.0)

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They're popular, fuel-efficient cars. Now Honda Accords have recalled airbags, among other 2001 and 2002 models

Hot on the heels of the recent Toyota recall, we see now that Honda is recalling airbags. Some think this is a conspiracy on the part of the U.S. government and General Motors/GM, but I think we’re simply hearing more about recalls that would have occurred anyway. Media needs to feed itself, you know. Some things are temporary; juicy stories are eternal, at least until the next one comes along.

Honda recalls airbags and investors squirm

According to the Washington Post, a 438,000-car recall has been deemed necessary after the discovery that defective airbag deflators can cause the bag to rip and subsequently explode. The fragments fly at high speed toward the driver and passengers, which can cause serious injury. In the U.S. alone, one related fatality and 11 injuries have been reported. That’s 12 incidents too many, of course. The U.S. division of Takata Corp – the company that makes the Honda airbags for the models affected – is responsible for the most recent Honda recall of airbags.

On the investing side, the share drop is expected. The Honda recall of airbags has been estimated to cost 24 million yen in Japan, per the company. That’s about $267,000 in Japan, but for the rest of the world, the total cost is predicted to be around $30 million. Thus, the Post reports Honda’s price fell 0.2 percent in Tokyo; Takata fell 1.6 percent.

What Hondas are affected and what should you do?

These 2001 and 2002 model Hondas are included in the Honda recall of airbags: Accord, Odyssey, Civic, Pilot and CR-V. The 2002 Acura TL and CL are also affected. If the Honda airbag recall affects you, call (800) 382-2238 or see Honda customer service for what to do next.

Jazz should be fiery, but not like this

Did you know that a Honda Jazz in South Africa went up in flames due to an electronic window control error? It claimed the life of a child, according to the Post. That spearheaded a 636,000-car Honda recall two weeks ago. A previous Honda airbag recall in 2008 and 2009 took over 500,000 cars out of circulation.

Serious? Yes. As serious as the media makes it out to be? Perhaps not.

At least that’s what analysts like Yoshihiko Tabei of Kazaka Securities – among others – are saying. The general consensus seems to be that the import of recent auto recalls is somewhat overblown. However, if lives are lost and injuries occur due to failure on the part of automakers and their associated manufacturers, shouldn’t they be held responsible? This blogger thinks that the value of a life will always exceed anything on the balance sheet.

(Photo Credit: http://www.flickr.com/photos/willvision/ / CC BY 2.0)

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http://www.youtube.com/watch?v=vth80ShbTGQ

Is your new vehicle on the Toyota recall list? (Photo: yutai.tw)

Things have been tough for the automobile industry this past year. Gross overestimation of public demand, corporate mismanagement and a marked decline in sales left America’s automakers at the government’s doorstep crying for handouts. The scenario for automakers abroad wasn’t much different. That’s why the recent Toyota recall (see list here!) couldn’t have come at a worse time. Toyota had already unveiled a 2.3 million car recall. Now eight models have been suspended from U.S. sales so that a gas pedal problem can be fixed. That will take 57 percent of 2009 U.S. sales numbers off the table, says The Wall Street Journal. Various sources indicate that Toyota lost $7.1 billion in 2009. Their reputation for reliable cars had been solid.

What has caused this trouble?

It has been discovered that the design of the gas pedal mechanism is such that the pedal can become stuck, causing sudden acceleration. The defective parts are apparently used in Toyotas in the U.S. and Europe. Toyota may have to recall two million cars in the latter, too.

What if it happens to you?

Deputy Online Editor Jeff Bartlett of Consumer Reports says that it’s a progressive problem, so early action is recommended. “Drivers who experience sudden acceleration should put the transmission into neutral,” he says. Don’t just pump the brakes. Get out of gear to eliminate additional acceleration; you’ll still be able to steer and brake.

Models on the Toyota recall list

If you own one of these model Toyotas, don’t panic. According to the Christian Science Monitor, call your dealership to arrange an inspection. Toyota also has a hotline at (800) 331-4331 for more info. Here are the models on the Toyota recall list:

• RAV4 (2009-10)
• Corolla (2009-10)
• Camry (2007-10)
• Matrix hatchback (2009-10)
• Avalon large-size sedan (2005-10)
• Highlander crossover (2010)
• Tundra pickup (2007-10)
• Sequoia large SUV (2008-10)

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You can kiss your credibility goodbye any time now, GMAC

In the recently released “January Oversight Report: Exiting TARP and Unwinding its Impact on the Financial Markets,” the Congressional Oversight Panel looked over the entire $700 billion TARP bailout. Among many topics across our nation’s economy, they paid particular interest to charges that GMAC received “special treatment” from the Treasury when they were labeled “too big to fail.”

Boosting market confidence

But at what cost? Yes, the Treasury has said that it would be counterproductive to support GM and Chrysler but not also support their financing arm in GMAC. Auto loans have to flow and credit must remain liquid for a full economic recovery. Yes, there is a short-term psychological impact behind the government backing a major player in the U.S. auto market. But these reasons appear ephemeral when one considers that GMAC’s current business plan equates to a bad investment. The panel found that they were still going to lose $5 billion in Q4 2009. Oh, and the Treasury never did publicly say that GMAC was too big to fail.

Soft-balling GMAC doesn’t help the American taxpayer

Apparently, GMAC was subjected to a second round of stress tests (unlike everyone else). This allowed them to “benefit from post-May improvements in its financial position and in related sectors of the economy.” Why GMAC received the extra special treatment – why it was too big to fail while others were not considered such – is still unclear. The Congressional Oversight Panel ultimately calls for the Treasury to come clean on why GMAC got all the extra help in light of their continued floundering performance in the marketplace. Perhaps Mr. Geithner will be more forthcoming this time.

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When love becomes a burden . . .

The mom-mobile, the beloved suburban conveyor, the best-selling passenger vehicle in America for years on end: In its very success, the Ford Explorer unleashed a pestilence of vehicular obesity.  How did it get so fat?  Love had a hand in it.  People fell in love with the outdoorsy, go-anywhere image that riding up high on a 4000-pound steel behemoth imparts.

Even though more fuel-efficient minivans are perfectly adequate for hauling kids and cargo, Americans love the panoramic view from an SUV.  Over the years, the overachieving Ford Explorer catapulted the SUV from a special-interest vehicle to one of the most popular vehicle types on the road. With invoice prices ranging from $26,950 to $35,432, the 2010 Ford Explorer ranks high on the list of affordable midsize SUVs and continues to be a favorite among auto lenders.

Love is a risky business

The risk of rollover is higher in truck-based vehicles, including SUVs.  A short wheelbase combined with the greater vehicle height required to provide adequate ground clearance for bulky four-wheel-drive hardware is a recipe for in instability.   But never mind the spate of fatal accidents involving under-inflated Firestone tires and Explorer rollovers: Love is a lasting thing.  Accidents, including SUV rollovers, so the argument goes, happen only when people drive carelessly.

As vehicles grew more corpulent, buyers became competitive about size and advertisers jumped into the fray.  Bigger became synonymous with safer, although traffic-fatality statistics did not bear that out.  A widely cited New York Times article from July, 1999, stated: “Because it is taller, heavier and more rigid, an SUV or a pickup is more than twice as likely as a car to kill the driver of the other vehicle in a collision. Yet partly because these so-called light trucks roll over so often, their occupants have roughly the same chance as car occupants of dying in a crash.”

Hummer H2: the lovechild

Arrogantly huge, overtly militaristic, startlingly impractical, and openly scornful of the common good: The natural offspring of America’s love affair with fat cars, and General Motors’ crowning achievement, was the Hummer H2.  The H2 seemed to mock every practical justification ever posed for owning a large vehicle that consumes a lot of gasoline.    Never did a large family enjoy a long and leisurely summer-vacation road trip in an H2; never did a legitimate business require a fleet of H2s; never did wallboard for a bathroom remodel or manure for a garden ravage the roomy interior of an H2; and never was an H2 safe and reliable on ice or snow.  As for the off-road prowess of American SUVs, an unnamed senior marketing executive at Ford is roundly quoted as having once said: “The only time those S.U.V.s are going to be off-road is when they miss the driveway at 3 a.m.”  Whether or not this statement is the stuff of legend, the sentiment is pertinent here.

Won’t someone please think of the poor H2?

The H2 could not have made its entrance at a less auspicious time.  With an estimated fuel economy of nine miles per gallon, this ungainly lovechild was introduced shortly after 9/11, an event inextricably linked to America’s unquenchable thirst for the oil of other nations.   Rebellion of a sort ensued.  A Southern California Hummer dealership was torched; GM (who happened to be repossessing and crushing the few EV1 electric cars in existence at the time) suffered a PR catastrophe; and “Hummer” became synonymous with conspicuous American greed and over-consumption.  Not ironically, the number-one complaint of disenchanted H2 buyers turns out to be poor fuel economy — a mere six miles per gallon, if we heed the outcry of these unfortunates.

The rest of the story: nothing much changes

American automobile makers started churning out gas guzzlers in the 1960s and 1970s when fuel prices and consumer awareness of fuel economy were both low. Domestic automobiles became larger as consumers demanded comfort, roominess, and power.  Proportionally speaking, large sedans from this era rival today’s largest pick-up trucks.  In 1977, with an average of seven miles to the gallon, the Lincoln Continental Mark V was named by auto motor und sport as having the worst fuel economy of any vehicle ever tested by the magazine.  According to  a 2007 Wikipedia article, Passenger Vehicles in the United States, the Mark V has retained that ranking despite tough competitors like the H2.

Things started to change after the oil crisis of 1973, as smaller vehicles, including Japanese imports, became more popular. In the late 1970s, the federal government promulgated minimum fuel-economy standards and by the 1980s, American manufacturers were downsizing cars in earnest.  In the 1990s, however, improved technology — and commercial disregard for the spirit if not the letter of the law — led to the manufacture of larger vehicles capable of satisfying fuel-economy regulations.  The average fuel economy of passenger vehicles in the United States remained largely unchanged in the 1990s and 2000s, peaking slightly in 2001 and 2004.  The Wikipedia article states:

Overall, the past decade has seen the slowest increase in fuel economy since 1960, with fuel economy increasing from 16.4 miles a gallon in 1990 to 17.1 miles a gallon today. This is in contrast to the 1980s when the average fuel economy improved somewhat more significantly from 13.3 miles a gallon in 1980 to 16.4 miles a gallon in 1990. The lackluster increase in fuel economy during the 1990s is largely due to the rising popularity of [sport utility vehicles], whose status as light trucks gains them exception from the fuel economy restrictions placed on sedans and other cars.

Vehicular obesity is an insidious disorder

Like that other, all-too-familiar kind of obesity, the fatness of our cars inched up on us.  By the time it  became readily apparent, the disorder was shockingly well established. Just take a look at any store parking lot. Judging by the vehicles each patiently waiting to cart home one driver and two bags of groceries, you’d think that getting to the store involved fording rivers and traversing invious territory.  In any given parking lot, half the vehicles have four-wheel drive, 18 inches of clearance, and step-up bumpers.  Always the standout in an urban parking lot,  the H2 offers a convenient roof rack (and a true 4 x 4 look!) for shoppers hauling home extra groceries — if only a person of ordinary stature could reach it  without the inconvenience of hauling around an extension ladder.
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If you're looking the best auto loan and auto refinance loan rates, it's true that credit unions can save you money on your auto loans. But Car Deal Expert is even better!

When you’re looking for an auto loan or auto refinance loan, you want to find the best terms possible. First and foremost, that means you want an interest rate that isn’t going to destroy your finances for years. If your credit is near perfect, you have little to worry about. But most people bear a hefty load of debt. What rates and terms can you expect then?

If you’re dealing with a big bank, it means that if you’re approved at all, you’ll probably be paying a high APR and need to stretch payments out over a greater length of time. That’s a deadly combination that can conceivably cost you thousands of extra dollars. Mind you, credit unions can save you money on your auto loans when compared with big banks, but you have to meet some other qualifications. Primarily, you have to belong to whatever group your credit union of choice accepts, whether it is from a particular business, union, fraternity, church or geographic location. If you don’t belong, you’re left out in the cold.

Car Deal Expert Doesn’t Require a Membership

Numerous sources indicate that fewer than 20 percent of auto loans and auto refinance loans come from credit unions. Car Deal Expert invites those who are skeptical to give us a try! Even if you have less than perfect credit, you can apply for an auto loan from an extensive lending network that strives to bring you the best possible rates and terms for your credit situation. Not only that, but you can apply online from the comfort of your own home!

Don’t Roll Over for Banks… or Credit Unions!

Credit unions are a marked improvement when compared with giant, impersonal banking giants. Some people assume them must go to banks for auto loans and auto refinance loans because everyone else does it. That hasn’t been true for decades! Furthermore, while credit unions routinely beat the loan origination and processing fees and interest rates that most banks can offer even those with good credit, you still must meet their administrative requirements. Car Deal Expert has credit unions beat by a mile in this regard. Applying for auto loans with us is quick, easy and free of excessive requirements.

Car Deal Expert Says: Lower Monthly Payments Aren’t Always Best

Let’s say you have a 60-month auto loan for $16,000. If the APR is 7.7 percent, that’s $322.13 per month for a total life-of-loan payment of $19,327.80. However, if you can complete your loan as a 48-month loan, you will be paying $388.36 each month, but that extra $60 per month means you will pay about $700 less over the life of your loan! That’s $18,641.16, as opposed to the previous amount of $19,327.80.

At Car Deal Expert, we will do our utmost to find you the best auto loan or auto refinance loan rates available. We advise that you not bite at the first deal a bank or credit union can offer you. Yes, it may be true that credit unions can save you money on your auto loans when compared with banks. However, at Car Deal Expert, we’re here to help those of you simply want the best auto loan you can get, without the memberships and extra costs!

If you are looking for an auto loan or auto refinance loan at Car Deal Expert, you should know about credit reporting first!

You’ve come to Car Deal Expert because you want to apply for an auto loan or an auto refinance loan. One of the first things we advise you to do before applying is to know your FICO score and examine your credit report for free at AnnualCreditReport.com. That way, you’ll know what kind of information Equifax, Experian and TransUnion have on their credit reporting file. You’ll be ready to apply for a loan with confidence that there will be no surprises.

How Does Credit Reporting Work, Exactly?

Thanks to Alan Barnes, a certified IAPDA Certified Debt Arbitrator and CEO of Debt Regret, Inc., we have an easy frame of reference. In his EzineArticles piece “Credit Reporting: How Does it Work?“, we see that lenders have access to all the personal, legal and account data necessary to make a decision about your creditworthiness. Use of all three credit reporting agencies is common, particularly for larger loans like auto loans and auto refinance loans. Think of it as a financial background check.

Making Out Your Tradeline

Whenever you submit an application for credit, the creditor sends the info to the credit reporting agencies. The same thing occurs each month after that. Not all creditors do this, but the majority will. This is how they build their dossier on you, called a “tradeline.” Every creditor has one on you. They’ll know your name, address, Social Security number, employment details, marital status, phone number and even income. What you do with money – using credit, paying bills on time, keeping your bank balance in the black – is recorded over time. Depending upon the situation, credit reporting agencies may even hire outside companies to do further research into your financial responsibility portrait. They try to spot any discrepancies.

Why Do They Report on You Each Month?

That’s an easy one. It’s because billing cycles commonly run in 30-day intervals. If things go awry (i.e., your credit account is in arrears), the creditor will report it to the credit reporting agencies per their company policies. These policies vary from one creditor to the next, however. Some will ding you after 30 days past due, but others many go as long as 60 days. A good rule of thumb is to assume that any creditor will be strict with you and report after 30 days, so remember to pay your bills on time. In addition to first infractions, creditors also report on how often you’ve been 30, 60, 90 and 120 days past due. It all works in multiples of 30 days. The more days you’re late, the worse off your FICO score will be.

Those Dreaded Rating Codes

Creditors assign a code to you based upon your payment history. Barnes explains that R-1 is a good rating for an account that has been kept up to date. R-2 means that payment was 30 days less, but less than 60. R-3 is 60 days, but less than 90. R-4 is 90 days, but less than 120. Finally, R-5 is the proverbial scarlet letter, as it signifies to credit reporting agencies that you are at least 120 days overdue in your payment. Let’s not even talk about R-7 through R-9, which verge from repossession of collateral to bankruptcy discharge.

Getting Approved for an Auto Loan or Auto Refinance Loan Isn’t Hard

Provided you know your stuff before you apply. Here’s a good resource to help you determine how we’ll you’ll fare at Car Deal Expert. Credit reporting is a fact of life, but it doesn’t have to be scary. Good credit habits are essential if you want to reduce your interest rate on an auto loan or auto refinance loan!

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