Whether to buy a new car or buy a used car is often times the first decision that needs to be arrived at before you can actively begin perusing purchasing your next vehicle.

Let’s take a look at some tips, pros, and cons when it comes to making this decision.

First of all, having been in the automotive business for many years, I almost always lean toward finding a good used car that fits what I am looking for. For me, I believe that used cars offer the best value for your dollar. In most cases, you’ll find used car departments are much more used to and willing to negotiate the price that they have posted on the car. From a negotiating standpoint, most used cars won’t have all of those superfluous dealer ‘add-ons’ stuck on the window either that will just never do.

In the automotive market, used cars will most certainly come with a lower initial price tag than a comparably equipped new car. And not only will the price be lower, you may also find that so is your cost to insure the used car as well as the tags, and taxes. Depreciation being what it is; means that with a car a couple of years old, the biggest depreciation hit has already occurred. And from a tangible perspective, you may have a better chance of getting those upgrades you’d like to have on the used car that you couldn’t otherwise afford going with the new.

Yet, with all of this, buying a used car isn’t for everyone. Finding a used vehicle that fits one’s entire car buying criteria can be a tough exercise in balancing what you want with the value versus risk inherent when it comes to used cars.

Not so many years ago, reliability was a major concern when purchasing a used car… and rightfully so. Today however, reliability problems are a fraction of what they used to be. Today’s vehicles, when properly maintained will easily go for 100,000 miles and it’s not uncommon for vehicles to be motoring along as they approach 200,000 miles or more. And with all of the information now available online, the risk factor is again reduced even a bit more.

Even though more reliable today, buying a used car for people means buying a car that is probably out of its original bumper to bumper warranty. This alone, is enough to repel many potential car buyers back to the new car side of the dealership.

As you know, if you are looking at buying a used car, you are probably looking at a car that is outside the factory warranty or at least would have very little remaining. With no warranty you’ll be on the hook to pay for any needed repairs out of your own pocket. However, the biggest expense for most all cars today are the things that aren’t covered by any manufacturer’s warranty anyway; items such as brakes, tires, alignment, batteries, etc.

Of course nobody can guarantee that you won’t encounter a lemon. No matter what the make and model, no manufacturer can produce a vehicle that can withstand years of neglect and/or abuse. Always, always, always give the used car a thorough inspection both by yourself and a qualified mechanic; doing this will catch most problems that may be looming on the horizon.

When it comes to financing the purchase of a used car, you find that the going interest rates will typically be higher than new car rates. This is definitely a piece of the puzzle you’ll want to check out. There is no rule of thumb as to what the difference in the interest rate will be between the two because there are just too many determining variables involved such as; the economy, rebates and incentives involved on the new car side, your credit, length of financing, and even the type of used car you’re looking at. Be sure to crunch the numbers for both sides.

With used cars, insurance can save you some money as well because you’ll typically pay less for your insurance on a like model from a few years past. The reason is simple; less cost of replacement for the insurance company and used cars are generally not high on the stolen lists.

And finally, (the latest) safety features could be a concern if you’re looking at used car (particularly if you’re going back a few model years).

All in all, if the touch, feel, and smell of a new car, isn’t a top priority for you, I think you’ll find that a well thought out used car purchase you can get more car and features and still be within your budget.

Let’s face it guys; we’re not all going to be able to pay for a Ferrari or a Porsche. Despite this may be a sad fact to have to face up to, yet its there nonetheless. At times exotic cars are out of reach for all except for those who are affluent and even they occasionally have trouble keeping up with the payments and maintenance of a Bentley or a Lotus. Sure the allure is strong; simply imagine slipping into the leather cockpit of your Lamborghini and cruising around curves at hundred miles per hour with the wind in your hair and the sun on your face.

Sure you may have everything from your driving gloves to your sunglasses and your driver’s license, though the one thing you wish for is to have enough money for a Lamborghini. And then there’s the Camry or Taurus, which in spite everything just don’t have enough horsepower to take mountain roads at 100, and even though you could get it going that fast it would in all probability fly off the road due to its lousy suspension.

Nevertheless what if you didn’t have the chance to own a Lamborghini or Lotus to be able to drive it around those hairpin turns? Well, nowadays we do have a great way to try out a luxury or high-powered sports car of our dreams, with exotic car rental we don’t have to sell our house or steal one from one of your yuppie friends. There are a number of can rental companies, mainly in wealthier areas, starting to specialize in exotic car rental. In fact even the regular airport car rental companies like Enterprise and Hertz are starting to rent out exotics or perhaps luxury cars along with the standard economy and touring cars.

For those who would like to try one out, you don’t need to fly out of town or go on a holiday, almost any special occasion will do. Maybe you want to knock the socks off your date or perhaps impress your wife on your anniversary. Yes, you can either show up at the door behind the wheel of a Lotus Espirit or a Porsche 911. And for those who feel like making their son or daughter’s prom a night to remember then forget about the limo; a sleek black Bentley will get them there in style.

Despite the fact that the exotic car rental is generally a little more expensive than renting a Camry at the airport, it’s at all times a lot more memorable. Besides exotic car rentals also make great gifts; as some rental agencies which rent exotics also rent classic cars, so you could give your dad or uncle the ride of his dreams in a vintage Corvette or brand new Ferrari. Sure, it will make a great gift instead of the usual set of gold clubs or tie clip that you were considering as an alternative!

Accidents can happen anytime, even if you are an extremely cautious and defensive driver! Most accidents actually occur within a 25 miles of the home, according to a Florida highway spokesman. Sometimes, they happen right in your own driveway. Just ask my sister-in-law who hit her friend’s car in her driveway while backing up! No matter where they occur there are a series of steps that should be followed after an accident.

The Consumer Protection Association of America continually develops a list of recommendations for drivers so that they’ll actually know what they need when a traffic accident occurs. This fine organization takes major steps to increase public awareness regarding traffic safety. Some of the steps are preventative and should be followed now before you’re involved in an accident.

One, have an emergency kit in your glove compartment or storage area. The kit should include a cell phone, pen, pad of paper, and a disposable camera (this is very important). With today most of us carry a cell phone, which takes pictures. As long as you insure that your cell phone is with you and carries a charge this should suffice for the cell phone and disposable camera in the kit. These items are for recording the key information regarding the accident and the scene. You should also have a card with information concerning any medical allergies or conditions you have that require special attention, as well as emergency contact information. It is also recommended by other agencies that you have a number list ed on your cell phone under ICE (in case of emergency), where the attending policeman or EMT can simply hit speed dial on your cell phone to reach your emergency contact. You should also have traffic cones, warning triangles and emergency flares in your trunk.

Two, you need to insure that safety is first! When you are involved in a minor accident and there are no serious injuries, make sure that the vehicles are moved to the side of the road. Do not stay on the road and become an obstacle to oncoming traffic. If you do this, it may result in the occurrence of more and more serious traffic accidents because of your vehicles creating an obstruction in the road. My wife was rear-ended by another woman on an exit ramp and they both left their vehicles on the ramp believing it to be safe and that it was important for the police to see the exact position of the vehicles. In spite of the fact that both vehicles were clearly visible for a minimum of 300 yards and they both had their flashers on, another drive came up and rear-ended the SUV that had originally struck my wife! My wife called me on the cell phone and told me what was going on and I told her to get those vehicles off of the road right away! If the car or cars is not movable, make sure that the other motorists are warned by turning on the hazard lights and setting out flares, traffic cones or orange triangles to divert traffic. If you cannot move the vehicle, do what you can to alert the traffic and then move away a safe distance in case of any further accidents.

When you are involved in an accident with serious injuries make sure that no one is in immediate danger (from fires, falling tress or telephone poles, etc). After you have made sure of this, attend to those hurt. It is important that you not move anyone that has been seriously injured unless they are in immediate danger. Further injury can occur from movement. It is always a good idea to let the emergency response teams attend to and moved the injured whenever possible to help prevent this.

Three, exchange all of the important information with the parties involved. You’ll need to obtain the other driver’s name, addresses, phone numbers (home and work), insurance company, car insurance policy number, driver’s license number, license’s plate number, and make sure to write down a description of each car, the year, make, model, color and any apparent damage. Also, write down what occurred during the accident as soon as possible. Pay special attention to the position of the vehicles, sequence of events and the cause of the damage.

I recommend that you write down all information readily available to you without the cooperation of the other driver such as the license plate number, make, model and color of the car, driver description and brief description of other occupants. Also, obtain any witness information at this time. As long as no one is hurt, most witnesses will soon depart the accident scene, and you want to make sure that you have their information. After obtaining this info, then approach the driver about their information like driver’s license number, insurance information and contact information. This makes sure that the other driver cannot bolt from the scene while you are distracted without obtaining information and it lets them know that you are all business.

Four, take photos of the accident scene and the cars involved. Use your disposable camera or cell phone to document the damage to all the vehicles and the scene of the accident. If there are important points to demonstrate such as long skid marks, hidden entrance/exit, etc. make sure to document these as well. Make sure that the vehicle photos illustrate the total context of the accident so that they will back up your claims. If there are witnesses, make sure to ask them for their name and phone number, and ask if they’ll help you in case of problems with the other driver disputing what actually happened.

Five, file an accident report as soon as possible and obtain a copy of it as soon as it is made available. In some areas law enforcement officials do not respond to traffic accidents unless injuries are present. You should always call the police and request that an officer come to the scene to right up the police report. They will obtain the information from the other drive, if they are uncooperative with sharing the information with you, and they will write down their observations of the scene of the accident, which will further support your claims. If you cannot get a policeman to the scene where your accident occurs, find out how you go about filing an accident report and do so right away. You may have to go to the local police station or you may be able to download accident report forms on-line depending on your locale. A police report usually helps speed up the claims process.

Six, understand your insurance coverage before an accident. The more you know about your insurance coverage the easier the claims process and procedure will go. Does your policy cover towing or a replacement rental car fee? If yours does not and the accident was the other driver’s fault immediately make a claim for this with their insurance company.

The question everyone is typically concerned with is “Who is going to pay for this?” If it is the other driver’s fault you should insist that they pay for the damage. If they agree, get them to acknowledge this in writing if possible. The other drive may be agreeable to pay for the damage now, but after a little time goes by and they are not in your immediate presence they may have a change of heart and decide to try and stiff you (this is why you need witnesses, documentation, etc.).

I recommend calling someone if available to assist you in the accident management process. They will be much calmer and more objective in seeing that everything is carried out. I arrived prior to the police at my wife’s previously mentioned accident when our van was rear-ended. I checked and made sure that everyone was okay. Then I made sure that the vehicles were a safe distance from the road. Next, I obtained all of the vehicle information (make, model, color, license plate number), photographed the vehicles and the accident scene. I then obtained the driver information from the other two drivers involved. After I obtained the car insurance information, I immediately contacted the other driver’s car insurance company and had them open a claim for the damage that had been done to our van. I did all of this before the policeman completed writing his report. I then talked to the police officer and obtained his name and learned the content of his report. When I determined that I was satisfied the content accurately portrayed what my wife indicated had happened, I asked him for the report number so I could obtain a copy as soon as possible. My doing this streamlined the whole process for our claim and it moved through like clockwork.

If you drive a Jeep and you need some replacement parts, you can get them for low prices at Xtreme Terrain Concepts, which specializes in Jeep items. They can be found at www.xtremeterrain.com

Truck rentals are used for moving, for the most part. They are used for the do-it-yourself moving, whether it is in-town moving, or various one-way moves. In-town moving is where the truck will be picked up then returned to the same location in the same town, and one-way moves are where the truck is picked up from one place and returned to another.

The cost of renting a truck will differ depending on the company you are using, amount of miles traveled, truck size, and availability. As most people move on the weekend, it is usually more expensive to rent during that time.

Some companies will rent by the day, for a set rate depending on the size of the truck, where other companies rent by a daily rate and a per-mile rate. Once again, these rates can change depending on the availability and demand.

One-way rentals also are worked out on availability of trucks at the location where you will be picking the truck up, as well as the demand on them where the drop off point is, so price ranges can go up and down. The total number of days and miles you have rented the truck for are established by the departure location, and the destination, with extra days and miles charged.

Typically, you will be required to submit a deposit before renting a truck, which is to ensure that there is no damage to the truck before returning it. Most companies will accept a cash deposit, but some companies will insist on a credit card deposit.

The mandates for taking possession of a truck will vary with each company, but all renters are required to have a valid driver’s license.

A lot of truck rental companies will require the person who will be driving the truck to be 18 years old, 21 years old or 25 years old. And the person who actually rents the truck is held fully responsible for the truck in the event of an accident or theft, even if there is another person driving the truck. A few companies do allow more than one person to be insured if it is arranged in advance, and it will usually involve extra fees.

If you want to tow your car, a car carrier will carry your entire car on a trailer which attaches to a place at the rear of your truck. A car carrier is recommended for all-wheel and four-wheel drive vehicles. A tow dolly is the recommended method for front-wheel drive vehicles. They lift the front wheels of your vehicle off the road, and pull it along behind your truck.

A hand truck or dolly will keep your back from being strained during the lifting of heavy objects into the truck. It will also speed up your moving process by allowing you to carry more items on each trip to or from the truck. You can also use furniture pads, as they will save your furniture from the scratches and dings which can happen during the moving process.

>From 1st July 2007 the UK bans smoking in enclosed public places with as many as 600,000 people forecast to quit smoking as a result. This article looks at if charging people to drive will have similar results for the Motor Trade.

In The Beatles classic song Taxman the lyric goes, “We’ll tax your feet”. Whilst the government hasn’t yet decided to do this it seems the introduction of “pay as you drive” schemes may soon be hitting the roads of the UK but what impact (if any) will this have on the UK Motor Trade.

Well there appears to be a few factors that road users might want to consider:

1. If you’re a driver who drives infrequently or at less busy times you could end up paying less. 2. Or you might drive an average number of miles but due to you driving at rush hours (on you way to/from work or school) you will end up paying more money 3. You may want to use public transport more often 4. You and your friends may set up a car pool scheme so you take it in turns to drive 5. If you spend a lot of time on the road travelling to see friends and family maybe you won’t be able to visit them as often as before 6. If you spend time travelling for work maybe you won’t be able to visit customers as much or worse still increased transport costs may mean your less competitive or jobs have to be cut

And what about people in the Motor Trade itself?

If the smoking ban just announced makes people stop smoking then maybe forcing people to pay more to drive will mean people will simply drive less often. Therefore less cars are needed, less people are needed to service and repair them and jobs are lost in the Motor Industry.

Of course these are all what if’s as nobody really knows what impact this decision will have on the transport system, the motor trade or indeed modern life.

If maybe a positive move with a journey to work being halved due to less vehicles on the road. It may mean a change in the opening hours for businesses or schools so not everyone is fighting to get to and from work as the same time as the school run is being done.

It may mean more money is invested in public transport so we have buses, trains, tubes and other forms of transport that are reliable and we’d be happy using.

Or of course it may mean nothing changes apart from the fact that we have less money in our pockets.

If the results of this survey conducted by Northern Counties Insurance Brokers are anything to go by.

People were asked what impact will having to pay per journey have on you?

- 40% said no impact as they couldn’t live without their car

- 13% said they would stop driving altogether

- 6% said they would drive less often

- 21% said they would use public transpoty more often

- 11% said they would car share to cut costs

- 5% said they would walk more often

- 3% said they would still drive as often but at different times

Whatever your thoughts are on the governments new “pay to drive” schemes the chances are it will happen and the impact on the motor trade could be massive

Over the last decade cars have become increasingly reliable. However, large variations in reliability performance do still exist, and reliability is certainly something that should be considered when purchasing a car and deciding whether a warranty is required. A warranty is a type of insurance policy, meaning that if a covered part suffers a mechanical or electrical failure resulting in a breakdown, the warranty will cover the cost of replacement parts and labour. Therefore there is full peace of mind as you know that you will never be left with a huge repair bill to pay.

Warranty Direct and Motoreasy are the two main providers of warranties in the UK. As a price guideline, a 4 year old Peugeot that has traveled 40,000 miles will cost £230 to cover for one year. However, most cars come with a 3 year warranty and if it doesn’t come as standard then many retailers offer a warranty separately. When deciding whether to purchase a warranty separately you need to consider the reliability of your car.

Warranty Direct have gathered data from millions of pounds worth of claims every year to compile the ‘Reliability Index’, a complete guide to the reliability of cars on the road today. One interesting finding is that 25% of cars suffer mechanical failure at some point between its 4th and 5th year on the road, just as the manufacturer’s standard warranty expires. However, huge variations in reliability do exist, as illustrated by our five best and worst performers below.

Ford come in at number 5, with Suzuki and Honda at positions 4 and 3 respectively. Honda with its ‘The Power of Dreams’ slogan appears to live up to its word with a highly reliable range of cars. Mazda comes in second place, with Skoda, perhaps surprisingly, the most reliable car make on the road today. It wasn’t long ago that Skoda was ridiculed for being extremely unreliable and hard on the eye, but they’ve worked intensively on the reliability of their cars. If you’re concerned about being able to drive from one place to another at any time then consider purchasing a Skoda. ‘Practical and exciting. Don’t see that very often’ – it’s certainly practical and is unlikely to let you down.

Moving on to the top 5 list car manufacturers don’t want to be in, Jaguar comes in at number 5. Known more for its looks and performance rather than reliability, many people would see this as a fair trade-off. Land Rover comes in as the 4th most unreliable car. Derided as a car that is unpractical and unnecessary for city roads it also appears that it is unreliable. With the huge increase in taxes in the UK planned for high polluting vehicles a hard time could be in store for the Land Rover. Next up is Subaru, followed by the Jeep in second position. The jeep was really designed for off-road pursuits so perhaps it isn’t surprising to see it struggling in the reliability stakes as they weren’t originally designed for the roads. Finally, the most unreliable car on the road today is Porsche. If a Porsche is your only mode of transport you may want to consider purchasing another more reliable car or certainly a warranty. Whilst it is a high-performance car Lexus have shown that you can be fast and reliable, as they came in as the 6th most reliable car make on the road.

Therefore if you’re looking for a car purely to get you from one place to another consider purchasing a Skoda. If you’re concerned about performance, speed, and looks then Lexus are certainly worth considering.

Racing has taken a number of different forms, including foot, dog, horse, airplane, boat, car, motorcycle and bicycle. The object in any form of racing is to win. Being the fastest is what makes a champion. Coming in second rarely counts.

We know from painted pottery that the foot race was a popular event with the ancient Greeks. Today there are both indoor and outdoor forms of foot racing. The most common forms of racing are sprints, hurdles and relays. Distances of the races vary. The first marathon race in modern times was organized in 1896. It was approximately 22 miles in distance. Today, the marathon is around 24 miles. The first Olympic marathon for women was held in 1928. Today, there are many different marathons, usually organized by a specific charity, such as breast cancer, within a city.

Horse racing has also been around for centuries. The ancient Romans and Egyptians had a fascination for chariot racing. It continues to this day, although it is referred to as horse and buggy racing. There is also thoroughbred racing, with a trained rider (jockey) on a saddle on the horse’s back. One of the most popular forms of horse racing in the United States is the Triple Crown, made up of three separate races in different locations: The Kentucky Derby, Preakness and Belmont Stakes. There are also races in which the horse must jump over obstacles set up on a measured track.

Bicycle racing is an Olympic sport today. The first known race was held in Paris in 1865. There are many forms of bicycle racing today, including on and off road, mountain bike, track, BMX and cycle speedway. One of the best known races is the Tour de France. American cyclist Lance Armstrong has won this event seven times.

Automobile racing began in 1894 and has continued in various forms until the present. The races usually depend on the distance travelled in particular types of cars. There is stock car, drag, rally, off road, sports car racing, Formula One (NASCAR) and other forms of racing. While distance is a factor in racing, speed is usually still the most important factor. The fastest speed recorded at the Indianapolis 500 was achieved by Eddie Cheever in 1996 when his race car reached 236.103 miles per hour.

Motorcycle racing is an enormously popular sport, and, like automobile racing, it comes in a variety of forms, including drag, sidecar, and supercross. There is also motocross racing, an amateur level sport. WERA is the national organization for the advancement, operation and sanctioning of motorcycle road racing. WERA sponsors sprint and distance races.

The first aircraft race was held in 1909, six years after the Wright Brothers flew the first airplane. It was held in Reims, France, and covered the distance from France to England. A race from England to Australia was instituted later, with most of the entrants being commercial airliners. It was discontinued after the outbreak of World War Two. In the United States, the National and Cleveland Air Races were initiated in the 1920s. In 1929, the Women’s Air Derby was created as part of the National Air Races. Today the Red Bull Air Race World Series is held annually. It features 11 pilots who compete against time on two passes over the designated course.

Ships and boats have long been used as racing vehicles. There have been some unusual races as well. Even bathtubs have been used in racing events. Depending on the type of propulsion used, aquatic races vary in time and speed.

If you’re a driver who is aging, it doesn’t mean you are a driver who is facing a lack of automotive insurance. Quite the contrary, if you are a driver who is aging, you could very well be facing discounts in automotive insurance.

Depending on the automotive insurance company through which you are insured, you may be eligible for various discounts. For example, many insurance companies that specialize in more than one kind of insurance will offer discounts to policyholders who purchase more than one insurance policy from them. Many people choose to purchase both their automotive insurance policies and their homeowner’s insurance policies through the same insurance company, which results in a discount in premiums.

Some insurance companies also offer discounts to aging drivers who have good driving records, and for various reasons. Drivers certain ages, usually 50 years of age and older, who have been driving for many years, are viewed as being less of a risk than new drivers – especially if they have good driving records. Aging drivers are seen as more responsible. Plus, aging drivers are less likely to go “joy riding” like younger drivers are, which puts them at less risk for traffic accidents and violations.

Aging drivers who are looking for discounts should follow the same tips as any other driver. Drive a safe car, park it in a safe location, and make sure it has anti-theft safety components. Keep traffic violations and accidents to a minimum, if not nonexistent, and try not to drive a significant number of miles more than necessary a year.

Some automotive insurance companies even offer discounts for aging drivers who participate in driving programs that the insurance companies provide, or participate in with another company. These driving programs are designed to refresh and sharpen driving skills, as well as restore defensive driving tactics.

So, the next time you worry about automotive insurance because you’re an aging driver, stop!

If you are buying a used car, you probably want to save some money. This means that you need to prioritize what is most important to you in a car. This article will help you assess your needs and your wants, so that you can find a car that suits you perfectly.

Cost

Look at the cost of a car. There is no point in window shopping at fully-loaded $40,000 trucks if you will only be able to afford a $4,000 truck in the first place. When you are establishing your budget for your car, be sure to account for how much the insurance will likely be, how much gas you will be spending (although this figure does change, it is best to go in having at least an idea), and regular maintenance. To budget for maintenance, you will need estimate the costs of 4 oil changes a year, plus some extra money just in case. Used cars are, well, used: they aren’t new are generally not under warranty. If you want a warranty, consider buying a used car from the dealership, who can often offer warranties even on used vehicles.

Suitability

What kind of driving do you do? You probably don’t need a four-wheel drive behemoth of an SUV if you do mostly city driving. Conversely, if you live on a gravel road, you might feel more comfortable driving in winter if you have something larger than a neon. For most drivers, the way that you drive a car will mean that you are open to many options. However, if this is a limiting factor, it is important to take into consideration.

If you are a commuter, then you will have to take other factors into consideration. You might not want to buy a car with a very high mileage, because you will be adding the miles to that odometer. You might want to find a car that has very comfortable seats to make your ride go better. Things that could be less important, like the stereo, become much more important when you spend a lot of time in your car each day.

Look

Some people would rather have a car that looks good or prestigious. It’s okay to admit that you are one of those people. For instance, for $3,500 you might be able to buy a 6 year old Honda civic; this same money could also buy you a much older BMW. If you value appearances, don’t lie to yourself when you are shopping. You want to get a car that you will love, and there’s no point looking at Ford Focuses if the only thing that will spark your delight is a Ford Mustang.

Load

How many people do you normally travel with? What is the most number of people that you have taken in your current car at once? If you don’t already have a car, estimate the number of people you will have with you on a regular basis. If you only drive around 7 people during the hockey tournament once a year, you can probably skip buying a minivan. However, if you normally drive three people around, it might be a pain to get a two door vehicle. For truck drivers, you will want to consider the amount of load that you generally put in the back of your truck to help you judge your purchase.

Your Loan

Not only do you want to get the right car, you want to get the right car loan. It is wiser to have your financing lined up before you go to a dealership. You can set up used car loans at any bank: but one often overlooked type of used car loan is to go to a credit union, where you can generally get lower interest than at a major bank. For more information on loans, (and we won’t even try to sell you a loan!) visit www.theguideto-carloans.com.

In the End

You will be the one driving. Make the decisions based on your needs and what you feel is right. Though it is great to get lots of advice (and sometimes it helps to take someone savvy about mechanics along with you to check out the car), considering these facts will help make you capable of choosing the right car.

Insurance—it’s everywhere. One can insure just about anything. Are tires an investment one needs to insure? Tire insurance, also called a road hazard policy, road hazard warranty, or tire reimbursement plan, is a rapidly growing industry in the automotive world.

Tire warranty plans pay in full or in part for the replacement or repair of damaged tires and/or rims from “road hazards.” Road hazards are defined as pot holes, debris, nails, wood, and other hazards found in the road. Curbs, sidewalks, and stone walls are not road hazards. This is an important distinction to consider when deciding if tire insurance is right for you (discussed further ahead).

Tire plans last for a specific period of time and tire wear tread-depth. Some plans last 2-3 years. Others can last 5 years or 60,000 miles. Several plans come with fixed amounts of coverage: $500 per year up to 4 years. Many contracts require three years of law school to comprehend. In terms of tread depth, a tire is usually considered worn out (and thus the plan null and void) at 2/32 to 3/32 of an inch.

Another important distinction is in the type of plan.

Tire reimbursement plans are just what they say. You, the plan holder, will be reimbursed after the claims process is finalized—usually 2-8 weeks. There is an out-of-pocket expense. These plans are often sold by new car dealerships. The prices can range from $300 to $600 dollars.

Road hazard policies operate similarly to reimbursement plans. However, some tire insurance providers, in partnership with the repair facility, may have a direct-pay relationship. Thus, there would be no out-of-pocket expense, except for applicable deductibles, and items not covered in part or in full. These plans are primarily sold by tire dealers and repairshops. The prices range from $10 to $30 per tire. They also can be based on a percentage of the cost of the tire: usually 12% to 15%.

Both types of plans have a number of variables, requiring a magnifying glass to read the fine print. Also, many are pro-rated warranties, covering only a percentage of the cost of the tire based on its wear.

Claims and Coverage: Depending on the plan, claims are initiated by the repair shop. The process is fairly smooth, although there can be a significant delay from the provider for authorization. This delay may be an hour or an entire weekend. This means that you’ll have to “ok” the tire replacement, and then hope it’s authorized for the full amount, or drive on your spare.

Some plans offer national coverage either among their service facilities or from other repair centers. Claims procedures will vary. Others only provide local coverage, or coverage at the selling facility.

Limitations: Tire insurance does not mean that everything is covered. Pro-rated warranties are based on the wear and tear of the tire. You may get 75%, 50%, or only 10% coverage depending on the tread-depth. You’ll pay the remainder. While there are plans that offer full coverage, even these have limitations, or they may conflict with a repair shop’s policies.

For example, many plans allow for a maximum of $30 to mount and balance one tire, and a maximum of $15 to repair a tire. However, sport tires often have significantly higher mounting and balancing fees—upwards of $50 per tire—and tire repair prices can exceed $90. There are also discrepancies on the tire and rim prices themselves, which in the end, may have to be supplemented by the service customer.

Although there usually is not an issue with the latter given the competitive market, the service center’s price mark up may be unacceptable to the plan provider. In this case, the service center needs to lower the price or you, the service customer, need to pay the difference—or go somewhere else. This does happen!

Rim Prices and Repairs: Rim replacement is becoming less frequent. With the high cost of aluminum wheels and sport wheel packages, tire insurers have opted to have them repaired. Repair will only be done if the rim does not hold air. What this means is that even if the rim is warped—enough to cause a vibration and even premature tire wear—they won’t replace it. Rather, they will send it out to be straightened and repaired.

Rims are replaced only if the damage is so extensive that the new tire, when mounted on the rim, won’t hold air. However, even in this case, especially if it’s an expensive sport wheel, they may still attempt to repair it.

Repairing rims is a bad option. While some rim repair is acceptable, badly warped or damaged rims will in no way ever be the same.

Alignments: If a car hits a road hazard hard enough, such as a pot hole, it’s wise to have the alignment checked. Road hazard policies and tire reimbursement plans do not cover alignments. The service customer will have to pay for this procedure.

Road Hazard Protection Positives: Some plans include tire rotations, wheel balancing, and nationwide coverage.

Myths:

1) “Can I pop all 4 tires and get a new set of tires?”

You can try. But this type of claim will trigger a number of red flags with the insurer. The policy holder will likely send out adjusters and/or require photographs. You will also have a difficult time explaining how a “road hazard” caused all 4 tire pop.

2) “New tires come with a road hazard warranty.”

New tires do come with a warranty by the tire manufacturer. However, it only covers defects in workmanship. New tire warranties do not cover punctures or damages from external sources. This is why “road hazard” protection is being pushed.

New tires are rarely defective. If there is a problem, it’s usually noticed when balancing the tire. Or, there is a drivability concern such as vibration or noise. If there’s a defect it’s generally caught right away, and the tire swapped out.

3) “It’s so cheap; it’s a no-brainer, right?”

Actually, the experts don’t agree with this statement.

The Economics of Tire Warranties: An article from the Washington Post by Terence O’Hara explains the economics of extended warranties and purchase protection plans in general. It is quite fitting for road hazard warranties. He writes:

“The decision to buy an extended warranty…defies the recommendations of economists, consumer advocates and product quality experts, who all warn that the plans rarely benefit consumers and are nearly always a waste of money.

‘[Extended warranties or purchase protection plans] make no rational sense,’ Harvard economist David Cutler said. ‘The implied probability [of having an issue with the product] has to be substantially greater than the risk that you can’t afford to fix it or replace it. If you’re buying a $400 item, for the overwhelming number of consumers that level of spending is not a risk you need to insure under any circumstances.’”

In short, road hazard warranties are a waste of money. Don’t insure that which you can afford to replace.

Numbers Game and Slim Chances: Like all insurance, tire insurance plans are a numbers game. However, this is a game you have a 98% chance of losing. Insider statistics show that the percentage of claims paid out by providers is as low a 2%.

Curbs: Another interesting note is that a lot of tire damage is caused by curbs. Curb damage is not covered under most road hazard policies. High granite curbs with sharp edges slice through tens of thousands of tires per year.

You Won’t Notice: Many people don’t even notice tire damage. Other than to see if the tires are holding air, who “really” looks at tires? Tires are subject to a whole host of external influences which cause bubbles, slices and gouges.

Despite the potential dangers of damaged tires, the damage very often does not translate into any noticeable drivability issue. The point is that if you don’t notice any tire damage you can’t benefit from the coverage.

Research Shows: Those raving about the benefits of a road hazard policy are the actual folks in the industry who stand to benefit from the sale. They’ll argue that it’s so cheap—only $10 to $20 per tire. Even so, for four tires, that’s $80 based on the “possibility,” the “chance,” of damaging a tire that meets the repair/replacement requirement protocols.

Auto Insurance: If a rim and tire has incurred significant damage, it’s quite likely that other problems have resulted as well. The first is that the vehicle may have been jarred out of alignment. Secondly, hub bearings, front end components: tie rods, spindles, ball joints, and a variety of other components may have sustained damage. In this case, auto insurance, which you are already paying for, will pay for everything—brand new.

Free Road Hazard Warranties: Many tires come with road hazard warranties FREE. In other words, in an effort to secure retailers, many tire distributors provide service centers FREE road hazard insurance. Some shops pass this on to their tire customers, others sell them. Ask if the tire “comes” with a road hazard protection policy. If not, request that one be provided at no additional charge. It’s worth a shot.

Also, some car manufacturers provide road hazard warranties FREE of charge for 12 months or 12,000 miles. If you’re buying a new car or even used, ask that the dealer provide a complimentary road hazard policy (after all the wheeling and dealing is done, of course), and just before you commit.

“What’s the best road hazard policy?” Money in “your” bank account.