Ways of Comparing Auto Insurance Quotes

The development of internet over the last decade or so has made the auto insurance quotes comparison very easy. Internet is considered as the best mode of auto insurance quotes comparison. The safety of the car is significant for its owners. The correct method to maintain the safety of the car is to purchase the best automobile insurance program. A larger number of automobile insurance providers are present in various parts of the globe. All these auto insurance firms have their individual rates and coverage plans that are different from other firms.

The auto insurance quotes comparison aids an individual to be aware of the rate of interest and the appropriate policies.The majority of the auto insurance websites permit the consumers to have auto insurance quotes comparison without charging a single penny. However, there are some auto insurance firms which charge a nominal service fee. Both the auto insurance websites have been designed on the same principle. Thus it is always advised to pick the auto insurance quotes from the websites which do not charge anything and thus we can get free auto insurance quotes comparison just by sitting at our home or workstation.

The auto insurance quotes comparison websites does the work of comparing both, the auto insurance policies and quotes. The chief advantage of obtaining the auto insurance through internet is that it helps an individual in saving both his money and time. This further leads to saving of money as it does not involve paying any commission to the insurance agent.

Therefore, with the aid of the auto insurance quotes comparison, the function of an auto insurance agent is needless. An individual gets a clear thought about the rates and the plan, with the auto insurance quotes comparison using internet.There are various ways by which we can undergo auto insurance quotes comparison. Some of them are as follows.

Firstly, it is necessary to have a close auto insurance quotes comparison so as to make sure that an individual is getting the cheapest auto insurance quote in the whole market. A number of auto insurance quotes are present on various websites. But, individuals have to be aware of definite tips for auto insurance quotes comparison.

The first step that an auto insurance seeker should undergo is that he should fill an online form which includes his personal details. This is an important part so as to obtain auto insurance quotes comparison chart. Along with this we should also have an auto insurance quotes comparison done for all possible coverage plans from different insurance firms. If an auto insurance firm offers a low rate and monthly payments than we should check whether this particular insurance firm offers a good consumer service. We should also check about the financial condition of the firm.

The rate of interest directly depends upon the credit history of the consumer. Thus higher rate of interest will be offered if a person’s credit history is bad and vice-versa. Finally, after getting the insurance from a particular firm, try sticking to that firm only because they can offer a new insurance at a lower rate of interest.

Online auto insurance is a leading online car insurance website. It’s mission to become #1 website for Florida auto insurance.

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Insuring Peace of Mind With Auto Insurance

If you are the owner of a car getting it insured is the first thing you should do. Many people are worried about the huge premiums it costs to insure their autos and they do not bother to purchase premium coverage. Such people never think of the longer run. Only when their car meets with an accident and they have to foot the huge bills do they realize the blunder that they had committed long back by not insuring their cars. Look at it from another angle and you will find that auto insurance is not so costly after all. Do you know how much medical treatment costs these days?

If your car is not insured you might have to foot your medical bills too. There are many sites on the Internet that provide you with cheap insurance for your vehicle. Apart from that you might seek the help of some insurance agents who will help you to get the best possible insurance for your money. Owning a car is not a luxury nowadays but not having it covered through an insurance policy is the worst crime you could do. There are many types of insurance policies available and you will get confused if you try to select one for yourself. These types of policies include first person policy third-party policy comprehensive policy and some others.

If you do not know about these policies you might well end up selecting the wrong one, hence it is recommended that you take the advice of the insurance agent to help you out. A properly insured car will help you to drive in peace and safe in the knowledge that come whatever may you are covered financially. There is no need for you to go hopping from one insurance company to another. Just check out the Internet and you will find many companies having their presence over there. Most of these companies have detailed insurance costs mentioned on their websites. You can easily compared their prices and select a few whose prices suit you. Note down their contact numbers and get in touch with them. Request them to send over their agent to your place. You can now discuss with them and select the best insurance policy that is suitable for your car, yet does not burn a hole in your pocket. Enjoy driving your car without any tensions on your mind by insuring it.

If you are the owner of a car getting it insured is the first thing you should do. Many people are worried about the huge premiums it costs to insure their autos and they do not bother to purchase premium coverage. Such people never think of the longer run. Only when their car meets with an accident and they have to foot the huge bills do they realize the blunder that they had committed long back by not insuring their cars. Look at it from another angle and you will find that auto insurance is not so costly after all. Do you know how much medical treatment costs these days?

If your car is not insured you might have to foot your medical bills too. There are many sites on the Internet that provide you with cheap insurance for your vehicle. Apart from that you might seek the help of some insurance agents who will help you to get the best possible insurance for your money. Owning a car is not a luxury nowadays but not having it covered through an insurance policy is the worst crime you could do. There are many types of insurance policies available and you will get confused if you try to select one for yourself. These types of policies include first person policy third-party policy comprehensive policy and some others.

If you do not know about these policies you might well end up selecting the wrong one, hence it is recommended that you take the advice of the insurance agent to help you out. A properly insured car will help you to drive in peace and safe in the knowledge that come whatever may you are covered financially. There is no need for you to go hopping from one insurance company to another. Just check out the Internet and you will find many companies having their presence over there. Most of these companies have detailed insurance costs mentioned on their websites. You can easily compared their prices and select a few whose prices suit you. Note down their contact numbers and get in touch with them. Request them to send over their agent to your place. You can now discuss with them and select the best insurance policy that is suitable for your car, yet does not burn a hole in your pocket. Enjoy driving your car without any tensions on your mind by insuring it.

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How to get debt collectors off your back

Life's tough enough when layoffs, divorces, injuries or illnesses saddle you with bills that can't be paid. It only gets worse when the collection agencies start calling.

But you don't have to dread the ring of the phone or let them beat you down until you feel like America's most-wanted criminal. Yes, you owe money and repaying your debt is serious business. But the collectors treat their job as a game, and you'll fare much better if you do so, too.

Just follow our 10 steps for dealing with debt collectors:

Step 1. Respond immediately.

Don't ignore a debt collector, even if you don't think the debt is yours. The agency isn't going to stop calling, and if you don't respond, they may sue to obtain a judgment against you. The result can cost you a lot more time and trouble in the long run.

Step 2. Know your rights.

You may owe money, but you're still entitled to fair treatment and respect for your privacy. The federal Fair Debt Collection Practices Act puts strict limits on how much harassment you have to put up with. Our 10 things debt collectors can't do explains the restrictions.

The one downside is that the restrictions apply only to independent collection agencies, not in-house billing departments at banks or hospitals.

Step 3. Get the facts.

By law, collectors must tell you their real names and the name of the agency they work for. If you have not yet received a letter from the collection agency, tell the collector that you expect a written follow-up with details about how much they claim you owe, the name of the original creditor and what steps to take if you don't believe you owe the money.

Step 4. Dispute inaccuracies.

If the debt isn't yours, is a result of identity theft, has already been paid or is more than what you think you owe, you need to file a written dispute within 30 days of the agency's first contact with you. The written notice, which you should have received within five days of first contact, should have instructions on how to dispute the debt.

Once filed, the agency must correct the inaccuracies or prove that you owe the debt. There is no set time for the agency to conduct its investigation, but it cannot resume collection action unless it confirms the debt.

Step 5. Document every contact.

Keep a log of who calls and when. Take copious notes on everything said and agreed to. And save everything -- even voice mail messages, if they include promises or threats. Any letters or forms you send should be by certified mail with return receipt requested. In fact, it's good to send a written confirmation setting down the details of anything that you may need to prove later, including payments agreed to, promises or threats and rude or harassing comments.

Step 6. Select your strategy.

If the debt is legitimate, you essentially have two ways to play your hand:

Option 1. Call their bluff. Send the agency a letter (via certified mail, return receipt requested) telling them not to contact you any more. After that, the agency can only contact you once more to explain how it is going to proceed. If you're lucky, the agency will decide it's not worth its time to pursue you, and that'll be the last you'll hear from its collectors. If you're unlucky, the agency will sue. They usually don't, but there's no way to predict which route they'll take. The more you owe, and the more likely you are to have the money, the greater the risk they'll take you to court.

Option 2. Cut a deal. Bluntly ask the collector, "How much do I have to pay to make this go away?" John (not his real name) spent eight months working for a debt collection agency after college. Like many agencies, his would buy bundles of bills that hospitals or credit card companies couldn't collect, paying only a percentage of what is owed. (Other collection agencies get paid a commission based on what they are able to collect.)

The bottom line is that agencies often are willing to negotiate a partial payment, because they can still turn a profit. While the amount they're willing to accept varies, John says it usually ranges from 30% to 50% of the debt.

You don't have to pay it all at once. Collection agencies usually are open to monthly payment plans. Just be sure the agency sends the terms in writing.

Step 7. Buy some time.

If you can't agree on a repayment plan, or don't have the money to make a serious offer, the collector will put you into a calling queue -- an automated system to make sure you are pestered on a regular basis.

John says the best way to get a collector to temporarily stop calling is to make a promise-to-pay -- even if it's a trivial amount like $20. That should take you out of the queue for at least a week, maybe even a month.

But it's important to keep any promise you make. At John's agency, the collectors' bonuses were based on both the total amount of dollars they collected and a promise-to-pay versus dollars-collected ratio. So, if you make a promise to pay and don't follow through, the collector is penalized for that -- and is guaranteed to be even less amenable to you on the next call.

Step 8. Establish the rules for when and how you can be contacted.

Whether you're seriously negotiating or just buying time, you have the right to tell the collector not to call at work, before 8 a.m. or after 9 p.m. You can even have all calls and correspondence go through your attorney.

Step 9. Seek the right kind of help.

If you get tired of dealing with the calls and can't agree on a repayment plan, it's time to seek outside help. Be wary of companies that promise an easy solution to debt -- these credit repair "doctors" and debt consolidators often end up doing more harm than good. The best place to turn for help is to contact a member of the National Foundation for Credit Counseling. They work with creditors to stop harassing phone calls and negotiate a realistic repayment plan that forgives a substantial part of your debt, all for a reasonable fee.

Step 10. Complain about any agency that breaks the law.

When debt collectors cross the line, call them on it. You can use those records to report agencies that break the law to your state's attorney general, the Federal Trade Commission and a local lawyer who specializes in battling bill collectors. Here's where to learn more about reporting bad collection agencies.

It's important to know that whatever happens, the collection agency usually notifies the credit reporting agencies about your delinquency. The debt will then be marked as a "collection account," including the amount and whether or not it was paid. Even if you pay the amount in full, the entry is not automatically removed from your report, although it should be updated as "paid."

You should also know that if you get collectors to agree to accept less than the total amount of debt, the amount they forgave may still show up on your report as a bad debt. However, you can try to negotiate what they will report when you're negotiating the terms of a payment agreement. (Again, get it in writing.)

Regardless of what gets noted on your report, the fact that you had an account in collection may show up on your credit report for seven years.

By Tracy Needham

Interest.com Contributing Editor

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Is it time to sell your car?

Life is sweet, but it would be a lot sweeter if our cars and trucks would warn us when heart-stopping repair bills or inevitable replacements lay in wait just around the corner.

Most of us, however, need help recognizing when it's time to get rid of our ride -- whether it's a 13-year-old Chrysler LeBaron convertible, a three-year-old Toyota Tacoma, or brand-new Mercedes-Benz GL-Class.

That's why we've come up with five smart moves to help you make a hard but satisfying decision.

Smart move 1. Do a lifestyle reality check.

"Our homes reflect who we are, and our cars reflect who we wish we were," so the sad (but true) saying goes. Here's where a cold look in the lifestyle mirror can go a long way. Ask yourself (or better yet, ask a friend), "Is what I drive serving my current needs?"

Your Mazda Miata may have made you the King and Queen of Cool when you were single, but when you started adding little princes and princesses to the castle, that tiny two-seat sports car became royally impractical. Suck it up, daddy, and get a midsize Mazda6.

If you live in New York City, it may be time to bid farewell to that Ford F-350 Super Duty SuperCrew. Be brutally honest. You'll be happier in the short and the long run. We know plenty of people in Manhattan who don't even own a car, and that's the perfect car for them.

Smart move 2. Do an economic reality check.

Make sure you own a vehicle you can realistically afford. Factor in every expense, not just the monthly payment. Include the price of insurance and maintenance, broken down to a monthly average, and don't forget to calculate the terror of fuel costs.

Total them up and you've found the true cost of owning your car. If you can realistically meet this number without breaking a sweat or missing a meal, month in, month out, bravo.

But if you're struggling to keep up with the bills, and spending $500 or more a month on your car or truck, you should replace it with a new ride that costs more like $250 to $350 a month to own.

When making this decision, follow a simple rule of thumb: Monthly payments shouldn't exceed 8% of your gross monthly income. If, for example, that's $3,000, then your payments should be no more than $240 a month.

Smart Move 3. Pay heed to the "Gut-Wrench-In-Its-Presence" Effect.

If merely thinking about driving your car threatens to double you over in pain, get rid of it. No joke. There is no case to be made for accepting 15,000 miles of anger a year. If you hate your vehicle -- really hate it -- and have no practical considerations that trump your decision making, then dump it, sell it, or trade it in. Life is still too short.

Smart move 4. Beware the "My Mechanic Knows My Credit Card Number by Heart" Syndrome.

If your car has been to the shop three times over the past year for repairs -- even legitimate repairs -- it's not a normal, healthy vehicle.

We live in the glory day of automobiles, where virtually every model offers breathtaking quality and reliability. The cliche is that there aren't any bad cars anymore, but the truth is there really aren't even any average cars anymore.

Planned obsolescence, the automotive industry's dastardly plan to design and build cars to last only as long as the warranty, is a myth. Bad luck, however, is not. Your vehicle may be a "Monday morning" car or an early production run of a new model (never a good bet for high quality -- new models always need time to get their teething problems out of the way).

For owners of older, very used cars, this is the rule to follow: If you must make three repairs during any 12-month period that add up to the resale value of the car, cut your losses and run.

You can find out how much your car is worth at Edmunds.com or Kelley Blue Book.

Smart Move 5. Keep an eye out for the two symptoms of big trouble.

Just remember: Blue smoke = Bad news. Blue smoke out the tailpipe means you're burning oil, which very likely indicates the oncoming need for an engine replacement. Never cheap.

Another major symptom worth paying eyes-wide-open attention to is when you notice a bit of slipping between gear changes in the automatic transmission. If you notice the engine revving without any appreciable increase in speed, that's what a slipping transmission feels like. This problem is not quite as urgent as the engine, nor quite as expensive, but transmission replacements are never a bargain.

Either one means it's time to sell.

By Richard Homan

Interest.com Contributing Editor

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The Orlando Sentinel, Fla., Automotive Column: What?! Camry Tops List of U.S.-Made Vehicles

By Steven Cole Smith, The Orlando Sentinel, Fla.

Jul. 19--Each year, the Web site Cars.com releases its "American Made Index." Evaluations "are based on percentage [by cost] of their parts that are made domestically, where they are built, and how popular they are among U.S. buyers."

For the past five years, the Ford F-150 pickup, perennially the best-selling vehicle in America, has also topped the list. This year, it dropped to second.

The winner: The Toyota Camry.

Gulp.

This may be a good place to point out that I'm just the messenger, and while Cars.com is partly owned by Tribune, the company that also owns the Orlando Sentinel, I had nothing to do with this.

That said, here's the list. Note that Detroit-based brands took only five spots, a record low:

1Toyota Camry, built in Georgetown, Ky., and Lafayette, Ind.

2Ford F-150, built in Dearborn, Mich., and Claycomo, Mo.

3 Chevrolet Malibu, built in Kansas City, Kan.

4 Honda Odyssey, built in Lincoln, Ala.

5Chevrolet Silverado pickup, built in Fort Wayne, Ind.

6Toyota Sienna, built in Princeton, Ind.

7Toyota Tundra, built in San Antonio.

8 GMC Sierra pickup, built in Fort Wayne, Ind.

9Ford Taurus, built in Chicago.

10Toyota Venza, built in Georgetown, Ky.

Two of the three evaluation factors are no-brainers. One is the percentage of American-made parts, which is listed on the vehicle window sticker. The 2010 Chevrolet Camaro SS, for instance, has 60 percent "U.S./Canadian parts content."

Which points up another factor: How good must the lobbyists for Canada be to convince the federal government that Canada is part of the U.S.? Granted, we are tight in every sense with Canada, but it isn't in the United States.

The aforementioned Camaro also has 24 percent content from Mexico, which -- though my geography tells me is the same distance from the United States as Canada is -- isn't considered part of America.

The second factor in the Cars.com evaluation, I have no problem with, either: The assembly location. "Ninety-seven percent of the Camrys sold here were built in the U.S," says Patrick Olsen, editor-in-chief of Cars.com.

I'm less a fan of the third criteria, sales volume. I understand that Olsen and the Cars.com staff wanted to factor in how much of a financial impact sales of the vehicle has on the U.S. economy, but it's a little arcane.

All the vehicles in the top 10 are high-volume models, so be aware that low-volume vehicles don't stand much of a chance in making the list. The study said the Ford Taurus has a 90 percent domestic parts content, the highest on the list, and it's built in Chicago. But volume evidently dropped the Taurus to ninth on the list.

Worth noting, too, is that in keeping with American-Made Index methodology, Cars.com excluded vehicles that are scheduled to be discontinued, and that don't have a "clear successor," the study said. "That carried stronger implications this year, as most Pontiac models -- including the G6, a longtime index mainstay -- became ineligible."

Other vehicles that usually made the list fell off because the domestic-made percentage of the content dropped this year, as the manufacturer turned to more foreign sources, among them the Ohio-built Chevrolet Cobalt.

What the Cars.com list can't accurately address is the argument that a lot of the money you spend on a Ford F-150, for instance, is likely to stay at Ford's headquarters in Dearborn while a lot of the money spent on a Toyota Camry will be shipped back to Japan.

But if that distinction is important to you, it's easy enough for you to analyze it yourself: Toyota and Honda, Japanese. Ford and General Motors, American. There were no Chrysler products on the list, saving us the effort of trying to decide if Chrysler is American, or with Fiat now at the helm, Italian.

Corporate home of the companies in question is a central reason Olsen was expecting a flood of criticism for the top-seeded Camry, "but I've been pleasantly surprised," he says. "For the most part, the comments we've received have been balanced and reasonable."

One positive comment came from Russ Darrow, chairman of the American International Dealers Association, a trade group that mostly represents foreign brands and their dealers. "More than ever, international nameplate dealers embody what it means to be an American business retailing an American product," Darrow said. "We employ hundreds of thousands of Americans, support local charities and youth sports teams, and pay significant local, state, and federal taxes. We have become, along with the Toyota Camry and apple pie, an integral part of the American tapestry."

Sentinel Automotive Editor Steven Cole Smith can be reached at scsmith@orlandosentinel.com, at 407-420-5699, or through his blog at Enginehead.com.

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Copyright (c) 2009, The Orlando Sentinel, Fla.

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Head of Obama Auto Team Quits: Rattner's Work on Bankruptcies is Done

By Justin Hyde, Detroit Free Press

Jul. 14--WASHINGTON -- Steven Rattner, the Wall Street financier who drew the Obama administration's road map for guiding General Motors Co. and Chrysler Group LLC through bankruptcy, will resign from the president's auto task force, the administration said Monday.

Rattner's decision to step down after fewer than five months on the panel follows the administration's successful plan to march GM and Chrysler through what Rattner once called "quick rinse" bankruptcies, backed by government aid that totals $85 billion. Rattner also carried out the firing of former GM Chairman Rick Wagoner as part of the government's rescue.

With the new GM emerging from bankruptcy last week, Rattner and other officials had said there would be less need for daily interaction with auto industry officials. In a statement, the U.S. Treasury Department said Rattner "has decided to transition back to private life and his family in New York City."

"We are extremely grateful to Steve for his efforts in helping to strengthen GM and Chrysler, recapitalize GMAC and support the American auto industry," said Treasury Secretary Tim Geithner. "I hope that he takes another opportunity to bring his unique skills to government service in the future."

The exact date of Rattner's departure hasn't been determined. The Treasury Department said Ron Bloom would oversee the auto task force after Rattner leaves. Rattner declined to comment.

The task force job had been the first in public service for Rattner, whose wealth was reported in government financial-disclosure forms to total at least $188 million. Before the task force, Rattner had a long career as a Wall Street dealmaker.

Earlier this year, Rattner told the Free Press that bankruptcy was not the task force's goal. But using a quick sale of assets in bankruptcy became the government's method to slash the automakers' debts while winning steep concessions from investors and workers.

Contact JUSTIN HYDE: 202-906-8204 or jhyde@freepress.com

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Lutz: GM Might Revive the G8 Under Chevrolet Caprice Name

By Justin Hyde, Detroit Free Press

Jul. 13--WASHINGTON -- General Motors Co. might revive the Chevrolet Caprice name as a way to save the outgoing Pontiac G8 sedan, and will not consider diesel cars for the United States until the business case improves.

Those comments and others came from Bob Lutz, GM's new head of design and marketing, in a web chat today where Lutz took on topics from GM's warranties to his infamous remarks from last year about the validity of global warming.

The rear-wheel-drive G8, built and designed by GM's Australian unit, had been a small but significant bright spot for Pontiac this year, with sales totaling 15,691 through June. But the model is scheduled to disappear with the rest of Pontiac by the end of the year.

"The G8 has finally been discovered by a broader percentage of the buying public," Lutz said in the chat. "The owners are ecstatic about them, many calling it the best sedan they've ever driven. We consider it too good to waste. So we're studying the feasibility of bringing it in as a Caprice for both law enforcement and the public."

The Caprice was for decades GM's top-of-the-line Chevrolet sedan, but was discontinued for U.S. buyers in 1996 when the company ended most of its rear-wheel-drive passenger car lines in the United States. The model was also a perennial favorite of police departments and taxis, a market GM mostly ceded to Ford Motor Co.'s Crown Victoria.

While enthusiasts had called on GM to import some of its sportier models from other parts of the world for years, the financial barriers remain high due to fluctuating exchange rates and the costs of tweaking models for different markets. The Saturn Astra, a European-built hatchback that GM also had high hopes for, failed to make any impression among U.S. buyers.

Lutz also said that the company had shelved any plans for diesel-engined passenger vehicles in the United States due to the extra cost he estimated at $6,000 for emissions controls, despite a 20% boost in fuel economy.

"Several Europeans and both Toyota and Honda have canceled their U.S. passenger car diesel plans, as have we," Lutz wrote.

As part of GM's emergence from bankruptcy, the 77-year-old Lutz reversed his decision to retire, taking over responsibility for marketing and public communications in addition to holding onto oversight over vehicle design. In the chat, Lutz repeatedly vowed to shake up GM's advertising, saying the company had misfired in the past.

"My top priority now is to enhance the ability of GM to let the public know about what great cars and trucks we build," he said. "For all the money spent in the past, this seemingly simple task has eluded us."

And after years of giving his public relations staff heartburn over comments such as one from February 2008 calling global warming a "total crock," Lutz vowed that his personal beliefs would not influence his professional performance.

"I obviously won't go out of my way to upset people but since I have a tendency to speak my mind I will occasionally unwittingly do so," Lutz said, adding, "by the way we just had the coldest June on record in the East, and are in the middle of the coldest July."

--http://fastlane.gmblogs.com/" target="_blank">Click here to read a replay of Lutz's full Web chat.

Contact JUSTIN HYDE: 202-906-8204 or jhyde@freepress.com Twitter: @justin_hyde

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'New' GM, Chrysler Shed Liability Claims

Unresolved personal injury claims against Chrysler LLC and General Motors have little chance of advancing after their bankruptcies, experts say.

Despite persistent attempts by attorneys for the claimants to prevent it, both automakers have emerged from bankruptcy without liability for most of the claims, the Los Angeles Times reported.

Under the terms of their reorganizations, the "new" GM and Chrysler will be liable for damages caused by cars made after bankruptcy, but neither will be liable for damages from accidents taking place before their filings, the newspaper said, adding that GM will be liable for future accidents involving cars built before the bankruptcy filing, but Chrysler will not be.

"Bankruptcy is a very complex and difficult process," Chrysler spokesman Mike Palese told the Times. It was "really important for the future viability of the company that we would be free from this type of liability."

"They are taking care of parts, but they aren't taking care of people," said Christine Spagnoli, president of Consumer Attorneys of California.

Some 3,400 Americans are likely to be killed or injured in accidents involving alleged defects in GM and Chrysler cars in the next year, experts told the Times.

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'New' GM, Chrysler Shed Liability Claims

Unresolved personal injury claims against Chrysler LLC and General Motors have little chance of advancing after their bankruptcies, experts say.

Despite persistent attempts by attorneys for the claimants to prevent it, both automakers have emerged from bankruptcy without liability for most of the claims, the Los Angeles Times reported.

Under the terms of their reorganizations, the "new" GM and Chrysler will be liable for damages caused by cars made after bankruptcy, but neither will be liable for damages from accidents taking place before their filings, the newspaper said, adding that GM will be liable for future accidents involving cars built before the bankruptcy filing, but Chrysler will not be.

"Bankruptcy is a very complex and difficult process," Chrysler spokesman Mike Palese told the Times. It was "really important for the future viability of the company that we would be free from this type of liability."

"They are taking care of parts, but they aren't taking care of people," said Christine Spagnoli, president of Consumer Attorneys of California.

Some 3,400 Americans are likely to be killed or injured in accidents involving alleged defects in GM and Chrysler cars in the next year, experts told the Times.

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GM Emerges From Bankruptcy, Sells Assets

General Motors Corp. completed its race through bankruptcy Friday morning, signing a contract with the U.S. government, a source close to the deal said.

Papers were signed at 6:30 a.m. at the offices of Weil, Gotshal & Manges that give the government 61 percent of the company with lesser portions owned by the Canadian government and the United Auto Workers union. Bondholders will also own a share, The New York Times reported.

The company will be temporarily named the Vehicle Acquisition Co., but soon will be renamed General Motors Co.

The plan for the company includes significant shrinkage. GM will no longer produce Saturn, Hummer, Opel or Pontiac brands. The assets that remain include Chevrolet, Cadillac and GMC.

Plans include closing factories and laying off 21,000 union workers.

Like Chrysler, which sold most of its assets to Fiat, the bankruptcy process was done at speeds that defy logic. GM filed on June 1 and emerged 40 days later.

GM planned a press conference for Friday morning.

Frederick "Fritz" Henderson will keep his post as the chief executive officer, while Edward Whitacre Jr. serves as the new chairman of the company.

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GM, Chrysler Fight House Bills: Measures Would Reverse Dealership Cuts

By Justin Hyde, Detroit Free Press

Jul. 10--WASHINGTON -- General Motors Co. and Chrysler Group stepped up their lobbying Thursday against bills in the U.S. House that would reverse their cuts in dealerships, arguing the moves threaten their survival out of bankruptcy.

Meanwhile, Michigan Rep. Gary Peters, a Bloomfield Township Democrat, was trying to launch a compromise proposal that would compensate dealers, workers and suppliers damaged by the GM and Chrysler bankruptcies.

Dealers have been pushing bills in Congress that would undo any changes made by Chrysler or GM in their dealer agreements during their bankruptcies.

One version now has 221 sponsors in the House, more than the 218 it needs to pass, and dealers who back the proposal plan to push the issue with House and Senate members during a lobbying blitz Tuesday, with a House vote possible Wednesday.

Mark LaNeve, GM's sales chief, and GM North America head Troy Clarke spent the day criss-crossing Capitol Hill, as did Chrysler Deputy CEO Jim Press.

LaNeve said he was attempting to explain to lawmakers why GM needed to close 1,300 dealers as part of its bankruptcy, emphasizing that the company gave dealers through next October to wind down their business.

Much of the outrage from Congress has been directed at Chrysler's decision to close 789 dealers with less than a month's notice as part of its bankruptcy.

LaNeve said in order for GM to be viable, the company had to have dealers who could face off against Toyota and Honda stores, which typically sell three to four times more vehicles per store than a GM franchise.

"In terms of creating a viable, competitive GM on taxpayer dollars, you can't look in the mirror and say we didn't have to restructure the dealer body," LaNeve said. "Everybody acknowledges, even dealers acknowledge, we had too many dealers."

In addition to reversing the dealer cuts, the bills would throw out the changes GM negotiated with the 4,100 dealers it chose to keep.

LaNeve said about half of those dealers had sent letters to lawmakers opposing the dealer bill.

Chrysler said in a statement that the House version of the dealer bill "would jeopardize the viability of the new company."

The proposal by Peters, which was still being circulated among lawmakers, suggested using money returned by banks under the $700-billion financial industry bailout.

Contact JUSTIN HYDE: 202-906-8204 or jhyde@freepress.com

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Late pays drop credit score 100 points.

The typical consumer who's missed one or more car payments has a credit score that's 98 points lower than someone who's made every payment on time.

A study by Experian, one of the three major credit reporting agencies, says the average credit score for consumers with no late auto payments is 703, while the average score for consumers with at least one late payment is 605.

That saddles those car buyers with the worst possible, subprime credit rating. They'll have a more difficult time obtaining another loan, and will have to accept more onerous terms and higher interest rates when they do get one.

f you've ever been late with a car payment -- and Experian says 12% of consumers have such a blemish on their record -- your credit has suffered. Here's what you can do to raise your credit score.

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How to raise your credit score

There are three simple steps you can take to improve your credit score.

They're well worth knowing and following because your credit score is one of the most important numbers you'll carry through life, like it or not.

No one asks if you want one. No one tells you when you get one. No one tells you what it is unless you ask -- and pay to find out.

Yet that score will play a big role in whether your application for a credit card, auto loan or mortgage is approved and what your monthly payments will be. The higher your score, the lower your interest rate and payments.

Credit scores are used for lots of other things, too, like setting car insurance premiums. The higher your score, the lower your premiums.

So we're not talking peanuts here. The difference between a high and low score can save you hundreds of dollars a month.

Your credit score is based on what banks, stores, utility companies and other creditors have told the three major credit rating agencies about how much you owe and how diligently you've paid it back.

There are no shortcuts to improving your score.

Don't listen to anyone who wants to "fix" your bad credit score for a fee. Some guy with an 800-line or an office between the check cashing store and carry-out pizza joint at your local strip mall can't help. Suze Orman, the well-known personal finance author is right when she says, "Credit repair is the biggest rip-off out there."

The latest Internet scheme is paying to become an "authorized user" on someone else's credit card. While you can't actually use the card, its impeccable payment record is added to your report, boosting your credit score by 30 to 45 points.

"Piggybacking" is expensive. Identity theft is a risk. Banks consider it fraud. And Fair Isaac Co., creator of the FICO credit score, will no longer count authorized users when its formula is revised this fall.

To legitimately boost your credit score, here's what you've got to do:

• Pay all of your bills on time. We know you have a lot going on in your life and bills get misplaced and writing checks is a pain. But you need a system to get every bill to every creditor, before the due date on your statement. Late payments, even to the gas or electric company, will be reported to the credit agencies and result in a lower credit score.
• Pay off debts, especially balances you've been carrying on credit or store charge cards. And that means really paying them off. Just transferring an outstanding balance from credit card to another using one of those nifty promotions that came in the mail won't help.
• Don't apply for credit on a whim. Your mailbox may be full of credit card applications offering low, low rates for a few months. And cashiers often push you to get a store charge card when you check out, tempting you with a discount on your purchase if you'll just fill out their form. But if banks and stores are constantly asking the credit agencies for your credit history, your score suffers.

Here's why.

Your credit score is computed using a formula created by Bill Fair and Earl Isaac. Nearly 50 years ago they figured out that if they could collect enough information about a person's credit history, they could calculate how likely that person would be to miss a payment or default on a loan.

That risk factor is represented by your credit score, or your FICO score as it's commonly called in the credit biz. The higher the score, the lower the risk. While it is theoretically possible to earn a "perfect" 850, a score in the 700s is considered good or excellent. If your FICO stands in the low-600s, however, you have trouble.

Your score is calculated using 22 different variables from your credit history.

About 35% of your score is based on how promptly you pay your bills. The second most-important element is the amount that you owe. That accounts for 30%. The number of years you have used credit counts for 15%. The types of credit you use -- credit cards, store charge cards, installment loans, mortgages, and so on -- is worth 10%. That looks at how many accounts you have opened recently and how many times companies have accessed your credit history.

Take special notice of one surprising thing that is not used to calculate your FICO score -- how much money you make. It doesn't matter whether you earn $10,000 or $10 million a year, income is not a factor.

There is a FICO score on everyone who has a credit file with any of the three national credit agencies, which accounts for 75% percent of U.S. consumers over the age 17 -- about 165 million people.

You're almost certainly one of them if you've ever had a bankcard, store charge card, auto loan, or any other kind of debt.

A new federal rule requires the three big credit-reporting agencies -- Experian, TransUnion and Equifax -- to provide a free copy of your credit history every year. Just go to www.AnnualCreditReport.com.

If there are items on your credit report that are wrong or that you think are unfairly portrayed, you can file a formal appeal with the credit-reporting agency. Each agency has an appeals process that you can find by contacting them at the Web sites or phone numbers listed below.

Your credit report does not include your FICO score. For that you have to either call one of the agencies or go to one of their Web sites, and pay $10 or $15.

Here's how to contact the credit reporting agencies:

• Equifax, by phone at (800) 685-1111, or online at www.equifax.com
• Experian, (888) 397-3742, or www.experian.com
• TransUnion, (800) 888-4213, or www.transunion.com

By the editors of Interest.com

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Car loans are surprisingly affordable

Most buyers -- particularly those who can bring a few bucks and at least average credit to the showroom -- can still finance a new ride on surprisingly good terms.

Our most recent survey of major auto lenders found that loans for borrowers with credit scores of 700 or better cost an average of about 7%, even for five-year loans.

Except for a few weeks this spring, that's as low as they've been in the past 10 years.

But we aren't going to kid you.

Lenders are not handing out auto loans as freely as they did before the financial crisis, especially to buyers with poor credit.

And they want at least a modest down payment -- cash, a trade-in, or a combination of the two -- from almost everyone. Edmunds.com, a Web site that tracks auto sales data, reported earlier this year that the average down payment was $3,211.

Here's what to expect from the three major sources of auto loans:

Auto financing companies affiliated with the car companies. You've got to use these lenders to take advantage of the discount loans you see in the television and newspaper ads.

And make no mistake about it, this is the cheapest way to finance a new car or truck, if you can qualify.

GMAC, for example, is offering 0% loans as long as 60 months, and even 72 months, on some Chrysler and General Motors models.

The discount deals aren't quite as good on most import brands -- 3% or 4% are more the norm. But that's still a good first choice.

The auto financing companies also are more likely to back buyers with below-average credit, though at considerably higher rates.

GMAC began lending to borrowers with subprime credit (FICO scores below 620) again this spring, and Toyota sales executives recently said they were trying to get its finance company to make more credit available to buyers with lower credit scores.

Credit unions: If you're a member, you'll find better rates than at most banks and a greater willingness to extend credit to borrowers with lower credit scores.

Credit unions also require smaller down payments. You might even find 100% financing -- something that's hard to find anywhere else.

Many continue to offer a $1,000 rebate for financing GM or Chrysler vehicles through them. This is in addition to any manufacturer or dealer rebates on the vehicle you want.

Commercial banks: They often have higher rates and tougher qualification standards than captive lenders or credit unions.

But the banks with the best deals are well worth considering.

Think Mutual Bank, for example, is offering 24-month loans for 3.99%, 36-month loans for 4.09% and 60-month loans for 4.29%.

Bank of America will provide loans up to 60 months for about 4.5% in most places. Here's where you can find the rate being offered in your state and apply online for a Bank of America auto loan.

Our extensive database of auto loan rates is a good place to check and compare rates from dozens of local and national banks.

And finally, a few words about leasing.

Lease rates for almost all cars and trucks have been so awful over the past year that this hasn't been a smart alternative to buying.

You may find somewhat reasonable deals from certain import makers -- particularly the luxury car names -- but the current economy is making it difficult to find anything like the killer lease deals previously available.

If you think leasing might still be a good option for you, our 5 questions to ask before leasing can help you make sure.

If you're ready to lease, take a look at our strategy for finding the best deal.

By Bill Visnic

Interest.com Contributing Editor

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