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Archive for the ‘auto insurance’ Category

It seems everyone came back from Copenhagen with a simple message to sell. Stop thinking about global warming. The real danger is climate change. So, to prove the point, 2010 has started off with some of the coldest weather we’ve seen for decades. Take Florida as an example. Miami set a new record for cold – the old record was set in 1927. The last time South Florida saw snow was in 1977. And what was true for the South proved equally true the further North you moved. This had an interesting effect on fuel prices. Natural gas was suddenly more expensive and homes with heating systems using oil got a nasty shock. It’s the old story of supply and demand and, guess what, the price of crude oil was lifting gently past $80 per barrel. So, if the natural gas supplies were under pressure and everyone wanted to stay warm, the refineries switched more production away from gas for vehicles. The result? We’re back up to $3 a gallon for premium-grade gas and the national average for unleaded is creeping up to $2.88. The economists who predict what’s going to happen to the commodities markets over the next six months are predicting the price of gas will keep on rising. Unleaded will soon tip the $3 mark. If we’re lucky, we won’t get back up to the $4 we enjoyed in 2008. We managed to get through that because it was before the recession hit and the credit crunch took away our easy money. Now the credit limits have been downsized and housing equity plans have dried up, there’s no slack left in the household budgets if all the fuel prices stay high. Read the rest of this entry »

The New Year has come in with icy weather. Even Florida has been enjoying a little cool air. Natural gas prices have been rising so, where this is the source of heat, household budgets are under pressure. The law of supply and demand has kicked in with crude oil back above $80 a barrel. During the warmer months, the refineries focus on gas to keep us on the move. But as fall turns into winter, the need is for oil to keep us warm. This year, the cold spell is forcing the refineries to increase the focus on heating the home. At the pumps, the $3 gallon for premium-grade gas is here again. It’s around $2.70 for unleaded. The prices are higher this week than at any time during 2009. Read the rest of this entry »

A group representing the insurance regulators has been meeting over the last few days. There have been a number of issues on their agenda, but the most interesting has been whether to adopt a policy for every state to require its local insurance companies to offer pay-as-you-drive policies. These policies have a simple purpose. If motorists drive less, there’s a reduction in the level of greenhouse gas emissions. This is a good thing because it will cut down on the overall damage to the environment. No matter what you believe about climate change, this will improve the health of the many who suffer from skin allergies and asthma caused by the pollution. The insurance companies therefore reduce the premiums for those who drive less. Not only is this environmentally responsible, it’s also good business sense. Lowering premiums attracts more business, but if these drivers reduce the number of miles they drive a year, their risk profile is lower. They should be involved in fewer accidents. This becomes a way of reducing premiums but maintaining profitability. Read the rest of this entry »