Reducing Transportation Costs

Direct insurance programs pass the savings onto you

• Insurance rates are determined by a number of factors including your driving record, members of your family, the car you drive, your marital status, where you live, age, gender, and in some cases, your credit history.
  
  
• The best way to lower your insurance premiums is to compare and shop around (especially if one of your life factors change like getting married).
  
  There are other ways to reduce your premiums:
  click here for a review
  
  

Compare and Shop Insurance:

The insurance premium has two components. One part goes to the insurance underwriter (85-90%); the other part goes to the insurance agent that sold you the policy (10-15%).

So cut out the middle man and buy your auto insurance directly from the insurance company. You could possibly save anywhere from 10-15% or more on your insurance premiums.


Three of the most noted direct insurance companies with high financial ratings from A.M. Best:

Amica Insurance
Geico Insurance
Progressive Insurance


Another way to reduce costs is to bundle your insurance policies with one company. Example, if you have your home insurance with Company A and your auto insurance with Company B, compare the cost between the two companies if you bundled your insurance policies with one company.

Compare these costs with other insurance providers.

View company financial ratings: ambest.com

Make online comparisons with multiple providers to estimate best cost:

1. http://www.insurancetracker.com/
   
   Receive a quick, FREE online quote by completing a simple 1-page inquiry form.
   
   
2. http://www.netquote.com
3. https://secure1.insweb.com/cgi-bin/auto.exe

Fuel economy tips from fueleconomy.com:

1. driving more efficiently
   
2. keeping your car in shape
   
3. planning and combining trips
   
   can save $100s each year.
   

• Check the octane requirements for your vehicle.
  
  Less than 10% of vehicles require higher octane fuel, which can average about $0.20 cents more per gallon.
  
  More information about high octane use
  
  
• Shop around for the less expensive gas:
  Search and compare gasoline prices
  
  or use GasBuddy to search best gas prices by city
  
  Membership warehouses often offer reduced gasoline prices for its members. Check for a club membership in your area:
  
  SamsClub
  Costco
  BJs
  
  
  
• Buy a more fuel economy car:
  
  Search and compare fuel consumption by model
  Search for cars that don't need gasoline
  
  
  Search for hybrid-energy vehicles
  

  Select a make... Acura AM General Audi BMW Buick Cadillac Chevrolet Chrysler Daewoo Dodge Ford GMC Honda Hyundai Infiniti Isuzu Jaguar Jeep Kia Land Rover Lexus Lincoln Mazda Mercedes-Benz Mercury Mitsubishi Nissan Oldsmobile Pontiac Porsche Saab Saturn Subaru Suzuki Toyota Volkswagen Volvo

  
  
• Consider using gasoline rebate credit card for all gas purchases:
  
  You can earn up to 3-5% rebates on gasoline purchases. Redeem rebates for future gasoline purchases.
  
  View our rebate credit card list
  
  
  
• Other gas-saving tips:
  
  Shop non-brand name gas stations: many non-brand stations use the same gasoline as brand names.
  
  Use the right grade of gasoline: most vehicles need only regular grade gasoline (read your owner's manual for the right grade: More information about high octane use

  Avoid topping off when filling the car: you usually lose gas in the hose of evaporation when you top off
  
  Drive carefully: driving aggressively can increase gas usage, not to mention running into trouble if caught. Avoid sudden stop and go. Check your tire pressure regularly, use cruise control on interstate travel, and keep your automobile maintenanced.

Keeping your auto serviced reduces fuel and repair costs

• A little preventive maintenance can keep your auto going:
  
  View this service checklist
  Auto maintenance tips
  
  Complete auto maintenance guide / repair help
  
  search yellow pages for auto repair shop
  
  
• Perhaps you repair your own cars. Shop online and retail auto repair parts:
  
  Checker Auto Parts @ PartsAmerica.com
  
  You get the lowest prices, best quality auto parts, and the most helpful automotive technical reps at Perfect Auto Parts.
  
  DIAL-A-CLUTCH.com for LuK standard clutches
  
  Mustang and Other Classics Parts & Accessories

• You might consider purchasing a warranty contract to protect against major vehicle repairs.
  
  Don't buy your warranty coverage from an auto dealer. Markup on cost can average 50-100%.
  
  Keep in mind that the fine print and other exclusions may not justify the cost. Run your numbers to justify your coverage costs.
  
  
• Places to start:
  auto warranty buying guide
  facts for consumers: auto service contracts
  
  Find your warranty:
  WarrantyDirect.com

• You can reduce fuel consumption costs plus relieve yourself of driving stress by car pooling and taking public transportation:
  
  Find public transportation in your area
  Find ride share buddies in your area
  
  Check your local governments for ride share information

• You can reduce fuel costs by roller blading, biking, motor scootering, and even motor biking to work, school, shopping, etc.
  
  SayPlanning:  Link to our Garage Center for product info

Taking on a new car or truck

• Beware of depreciation (which can vary by car).
  How depreciation works?
  
  A car loses about 15-20 percent of its value each year. For example:
  
  
  1. Let's start with a 1-year old used car worth $15,000 that loses 15% of its value each year.
     
  2. At 2 years old, the car value is worth $12,750
     (85% of $15,000).
     
  3. At 3 years old, the car value is worth $10,838
     (85% of $12,750).
     
     
• So what is the value of a new car?
  
  You can lose thousands once your drive your new car off the dealer's lot. Why?
  
  Because the price you paid for the car is the retail price (not counting the taxes and licensing that are sunk costs). If you drove that new car back to the dealer, the most the dealer will pay is the wholesale price (the same price he would pay the manufacturer).
  
  So your value drops instantly from the retail price to the wholesale price once you take possession. That drop could be in the thousands depending on the type of car and model.
  
  
• So why not buy used?
  
  You will be paying for the market value of the car instead of dealer markup.
  
  Some 1 year-old cars are great values that can save you thousands in financing costs. Get the facts:
  
  http://www.carfax.com/
  Kelley Blue Book
  
  
  Some places to look for used cars:
  link to our "auto search" center
  
  check your local classified section
  
  
• Should you lease to reduce costs?
  
  Leasing is simply a 3-yr or more rental agreement. You are renting the car for a period of time that you will return at the end of your leasing agreement.
  
  The advantage of leasing is that the monthly payments are significantly lower than financing.
  
  The disadvantage of leasing is that you will not be building any equity value. You don't own anything.

  The financial advantages and disadvantages of leasing will vary by person and circumstances.

  1. If you are a person who must drive a new car every 1-3 years, then leasing may be your best financial option.
     
     
  2. If you are a person who likes to replace your car every 5 years, then either leasing or financing will be your best financial option.
     
     
  3. If you a person who likes to drive the same car for 7 or more years, then financing would be your best option.
     
     
• Lease information:
  
  

  About Auto Leases
  —	For information about leases: click here
  —	Find the right lease without paying dealer markup: click here
  —	Compare leases for best lease: click here
  Take Over or Swap Your Lease
  —	Swapalease
  —	Buy another consumer's auto lease