Archive for December, 2009
Save on Gas
Gasoline prices are up 29 percent from a year ago, so finding ways to stretch your personal petro dollars could be a welcome holiday treat as we head toward Thanksgiving, traditionally a big driving week. Putting fewer tigers in your tank will also reduce foreign oil dependence and greenhouse gas emissions, so that’s, well, gravy. With the help of two experts — John Henry, a driver-training veteran who works with gas-saving groups EcoDriveSmart and FuelClinic, and Michael Scott, who created the fuel-saver site Moblu — I’ve put together nine lesser-known mpg-boosting (or “hypermiling”) tips.
Of course, you know the familiar hypermiling advice: Avoid jackrabbit starts and sudden stops, drive slower (since every 5 mph over 60 is like paying an extra 20 cents a gallon for gas) and keep your tires inflated (the EPA says doing so can reduce fuel use by 3.3 percent). And MoneyWatch has steered you away from some other common myths about gas mileage. You can also skip those nutty liquid additives and air-hose attachments claiming to slash gas costs: After Consumer Reports tested the Fuel Genie, Platinum Gas Saver and Tornado Gas Saver last year, it concluded, “Don’t waste your money. They don’t work.”
Instead, try these effective methods to boost your gas mileage:
1. Go Cold Turkey on Warm-Ups
- Many people mistakenly believe it’s harmful to your engine to simply start up and drive away, particularly in winter. But modern engines don’t need much of a warm-up. Auto authority J.D. Power and Associates says even on the coldest mornings, 30 seconds is all the warm-up you need. Your best bet is to start the car and gently drive off.
2. Tailgate Less
- Not only does tailgating lead to the fuel-wasting cycle of applying brakes and hitting the gas to catch up, it can lead to sudden and unexpected road hazards. The Federal Trade Commission says that anticipating traffic conditions and avoiding tailgating can save 5 to 10 percent on your fuel bills. Scott confesses that controlling his lead foot was the hardest habit for him to break.
3. Get the Junk Out of Your Trunk
- Those toolboxes and old golf clubs cluttering your cargo space can cost you. According to EcoDriving USA, 100 pounds of extra weight translates to a 2 percent reduction in fuel economy. Scott says when he emptied the clubs and other nonessential stuff from his 1999 VW Passat, he saw an immediate improvement in his mileage.
4. Buy an E-Z Pass
- Professional drivers on the clock would never be without their electronic, windshield-mounted transponders, because E-Z Passes (and similar autopayment devices, like California’s FasTrak and Florida’s SunPass) let them zip through toll lanes, saving time and gas. A New Jersey Turnpike Authority study found that E-Z Pass reduced fuel consumption by 1.2 million gallons in its first year.
5. Obey the “Check Engine” Light
An unscientific survey I conducted for the New York Times in 2003 found that most people don’t have a clue what this light means. Often, the light is saying that the car’s emissions system is malfunctioning. If your oxygen sensor has failed, replacing it could improve fuel economy by as much as 40 percent and end your car’s status as a gross polluter. So take the Check Engine light seriously, even if your car appears to be running fine.
6. Get Rid of What’s On The Roof
- A roof rack interferes with your car’s aerodynamics and can cost you 5 percent in fuel economy, according to Scott. Bret Sarnquist, a blogger for the carbon-offset company Terrapass, upped his gas mileage more than 10 percent (going from 24 mpg to 27) by removing his Audi’s roof rack, along with its two bicycles and box. The useful EcoModder site offers a whole page of modifications to make your car more aerodynamic.
7. Tighten Your Gas Cap
- The problem is gasoline evaporation. A loose or missing cap (which can also cause starting problems) can result in up to 30 gallons of evaporation annually. And that’s gas you already paid for.
8. Buy a Mileage-Meter
- Hybrids such as the Toyota Prius have in-car fuel-use gauges that let drivers see their consumption drop as their behavior evolves, and this has turned ordinary folks into hypermilers. But you don’t need a Prius; you can buy an aftermarket product, such as ScanGauge II ($170) or PLX Device’s Kiwi MPG ($90), to track mileage for virtually any car. A $2.99 iPhone application called MyMPG can display and track mpg for up to four vehicles, beeping when you’re wasting gas with bad driving.
To test out one of these gizmos, I hooked a Fuel Efficiency Adviser ($160) onto my 2007 Honda Fit (already economical at 31 mpg combined). It calculates mpg, gallons used per hour and the cost of a driving trip. The manufacturer says the device can save 33 percent in fuel costs, which sounded a bit far-fetched. Messing with the car’s electronics seemed scary, but turned out to be no big deal — just one plug, then attaching the device with Velcro. I was immediately able to tell the advantage of a light foot, briefly recording a stunning 99 mpg when I was driving carefully.
9. Take an Eco-Driving Workshop
- Don’t confuse this type of training with a standard driving school. Many driving schools are headed by former race drivers, so getting you to slow down may not be high on their priority list. Workshops such as the upcoming eight-hour program from EcoDriveSmart teach you fuel-saving habits that also help you drive more safely. EcoDriveSmart’s courses use an in-car video and an “eco pod” that records data on braking times and acceleration. “The student and instructor go out on a driving route, then come back and look at the video and analyze the data,” says Henry. Then they go back out for several cycles until the student morphs into an eco-driver. The courses cost $355 (including the eco-pod you keep to track your progress) and will be offered initially in California, Florida and Texas starting in January.
Source: Consumer World
Top 10 Ways To Lower Your Car Insurance Bill
By Warren Clarke,
Automotive Content Editor
If you’re shopping for car insurance, you know there are certain crucial factors influencing your rate that are out of your hands. Such factors include your age, gender and record of prior claims.
Despite this, there’s a lot you can do to score a lower rate, and your choices bear more power than you might think. Here are 10 tips guaranteed to help you get the best rate possible on your auto insurance.
- Get more than one rate quote before you commit. “Company prices are very different, and it pays to shop around. You can easily wind up paying double from one company to the next,” says J. Robert Hunter, director of insurance with the Consumer Federation of America, a national watchdog group.
Want to get a sense of who the low-priced carriers are? The National Association of Insurance Carriers offers a map on its Web site that lists each state’s regulators. Click on your state and you’re taken to the state’s Department of Insurance Web site. Its consumer buying guide compares insurance premiums across a range of companies. You’ll also learn how many complaints each company has logged. Surprisingly, you don’t have to sacrifice service quality to score a low premium. “A lot of the lower-priced companies have the best service rates,” says Hunter.
There are a host of independent Web sites that allow you to comparison-shop by offering online price quotes (click here for links to examples like Insurance.com and InsWeb). These sites can be incredibly useful. However, Hunter warns that these services — which earn their keep by charging carriers a commission on each sale — for various reasons, occasionally fail to include the insurance companies with the lowest rates.
- Evaluate insurance costs before you buy your vehicle. The year, make and model of your vehicle can have a profound impact on your insurance rate. All else being equal, new, expensive or sporty cars will cost more to insure than older, cheaper and more utilitarian vehicles. But you could find a substantial discrepancy even when comparing the cost to insure similar cars. So if you’ve got a few models on your shortlist, contact your carrier to see what rate each vehicle commands. Doing so could ultimately net you a windfall in savings when the time comes to pay your premium.
- Go high on deductibles. If you’re willing to give a little with your deductible, you can wind up saving big on your rates. “If you go from a $250 to a $1,000 deductible, you can save between 25 and 40 percent on your policy,” says Hunter. You can then set aside a portion of these funds to cover your costs in the event of a claim.
- Nix collision and/or comprehensive coverage on older cars. If your older car has comp and collision coverage, you might find yourself paying more in insurance than the car is worth. “Take your comp and collision premium and add it up, then multiply it by 10. If your car is worth less than that, don’t buy the coverage,” says Hunter. If you’re worried about being left overexposed, consider this: The typical policyholder makes a claim only once every 11 years, and reports a total loss only once every 50 years.
- Mind your credit score. An increasing number of carriers are considering credit scores when making rate calculations. “Your credit score can be very important in determining your rate,” says Hunter. “You can wind up paying up to 50 percent more if you have a bad credit score.” Keep your credit score in tip-top shape by paying bills in a timely manner and by regularly checking that there are no items on your history that do not belong to you.
- Ask about low-mileage discounts. Many carriers offer discounts to policyholders whose annual mileage is lower than the norm. Maybe you have a short commute. Or maybe your participation in the office vanpool results in fewer hours spent in your daily driver. Whatever the case, your low mileage can score you a reduced rate with some companies, so be sure to inquire about available discounts.
- Ask about group insurance discounts. Oftentimes, insurance companies offer discounts to policyholders who are members of certain organizations or professions, such as veterans, engineers or teachers. Request a list of these groups from your carrier to see if you qualify — you might be pleasantly surprised.
- Ask about all other discounts. Some carriers offer discounts to policyholders whose vehicles bear certain safety features, like anti-theft devices or motorized seatbelts. Others give reduced rates to senior citizens, and to students whose grades meet certain requirements. “Many carriers offer discounts. Ask for them when you’re shopping,” says Hunter.
However, Hunter offers one caveat: “Some of the companies that offer the highest discounts have the highest rates, so don’t get too focused on discounts. Some high-priced companies offer high discounts, but at the end of the day you’re still paying more.”
- Avoid lapses in coverage. Even a brief lapse in coverage can disqualify you from receiving discounts. “They use lapses in coverage to increase your premium,” says Hunter. Pay your insurance bills on time. And if you’re switching carriers, make sure not to quit your previous carrier until the new coverage takes effect.
- Think twice about paying in installments. Most carriers charge an administration fee to pay in installments. One carrier surveyed levied a $10 charge per installment to those who opted to break up their bill. The solution? Pay your premium up front, if at all possible.
Of course, this charge is more significant for those with small premiums. If you’ve got a king-sized premium and feel you’d get a better rate of return by investing your funds elsewhere instead of paying up front, then the installment route will probably best suit your needs.
10 Important Facts about the Extended First-Time Homebuyer Credit
If you are in the market for a new home, you may still be able to claim the First-Time homebuyers Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time homebuyers Credit and expanding who qualifies.
Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.
1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.
For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.
