Break the Insurance Cartel's Power

Break the Insurance Cartel's Power
Break the Insurance Cartel's Power, A reader wrote in response to an article I did on the tyranny of mandatory insurance laws. He had been hit while on his motorcycle - and crippled for life - by an oblivious driver who ran a light. He told me he believes that not only should insurance be mandatory but that all drivers should be required by law to have at least $250k in liability insurance - or about twice the current maximums required in many states. There is a saying, "hard cases make bad law."


It means an emotional desire, in the wake of a horrible incident, to "do something" about it. This often takes the form of pushing for a new law to more severely punish those responsible for causing harm/damage - and also (so it's argued) to deter future such events from occurring at all by making it clear there will be serious consequences, etc. The problem as regards mandatory insurance - and specifically, mandatory "high coverage" insurance such as my reader wants, is that it assumes we're all dangerous/reckless/inept - and makes us pay through the nose accordingly.

But why should responsible drivers who do pay attention to their driving, who are skilled and attentive and who never get into at-fault accidents (millions of such people exist) be compelled to pay big bucks for insurance coverage that is massively expensive precisely because it is compulsory and forces them into the same risk pool with the irresponsible few such as the person who hit the guy in my example?

Granted, there is always some risk an accident or injury may occur - no matter how good the driver - anytime a person gets behind the wheel. But is it reasonable to base law on the exception rather than the rule? To require that people - everyone - insure against any conceivable risk, and to an extent that assumes the absolute "worst case" scenario?

Most of us have to strike a balance between our means and what we spend on various things. Many people would probably prefer to throw say an extra $50 each month at their mortgage balance (or the family food budget) rather than literally throw it away on an over-priced, compulsory insurance policy they will probably never need. If, that is, they were allowed to do so. The amount of money we are forced to spend on insurance - car insurance, health insurance, life insurance, home insurance, etc. - is enormous - and historically unprecedented. It's no wonder people are broke and in debt up to their eyeballs.

My argument, however is not with insurance per se but rather with it being compulsory as this is what has been driving the cost of premiums to ridiculous levels - even for good drivers with no history of at-fault accidents.

Personal anecdote: Even though I haven't had an accident in more than 20 years and have a "clean" driving record I still pay out more than $500 annually to insure my two trucks, plus another $300 or so for my three motorcycles. Compared to what some people are paying, it's not much - but over time, the cost is still high. If I could do so legally, I'd opt not to carry insurance for at least two of my motorcycles, which I rarely ride - and for one of my trucks, which mostly just sits in the garage. I judge the risk that I will have an accident with any of these vehicles to be very low, given that none of them sees more than 2,000 miles of road time each year and given that I am demonstrably a "good driver," based on my accident-free driving record.

But I'm forced to pay anyhow - just like everyone else.

With mandatory insurance, there is no incentive for the insurance industry (which has largely become a cartel) to price policies fairly or competitively because we're all forced to buy. Insurers can jack up our premiums over things like "speeding" tickets (often the result of deliberately under-posted speed limits) or even our credit rating that arguably bears no correlation to our driving skills or the likelihood we will cause an accident.

How many of us have been hit with a "surcharge" on top of our already high annual premium (which can easily be $1,000 or more per year for the average person with a late model car) merely because we had the misfortune to run afoul of a radar gun in a speed trap?

We know it's a scam. And there is only one way to cut the legs out from under it:

By allowing good drivers to say, "no thanks" to overpriced insurance coverage, insurance companies would be forced to offer more competitively priced policies to good drivers. Policies based on actual risk as determined by the driver's record of at-fault accidents. Not trumped-up "speeding" tickets.

And the bad drivers? They should pay according to their risk profile. And uninsured bad drivers?

If they cause damage or injury, they should be held responsible to the fullest extent of the law. If they have assets, seize them. If they work, garnish their wages. If they don't work - make them. Nothing wrong with making deadbeats clean up trash by the side of the road or dig ditches... whatever. Until the debt is paid off, no matter how long that takes. That's right and proper. But forcing others to pay for the irresponsible actions of others isn't.

Queimando os pneus de um Viper em câmera lenta [Vídeo]

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Recall do Peugeot 207 e Hoggar

A Peugeot anunciou mais um recall para a família 207, desta vez para os modelos fabricados em 2010. Serão 1.639 unidades (o que inclui as versões hatch, perua e sedã do 207) que deverão passar por uma concessionária do grupo, além de outras 5 unidades da picape Hoggar. O problema está na bomba de direção hidráulica, que será verificada e substituída quando necessário.

Segundo nota da montadora francesa, ao longo do tempo, pode haver endurecimento da direção e, em casos raros, um vazamento do fluído de direção, com risco de incêndio. A convocação ocorre por meio de correspondências impressas e eletrônicas. Estão envolvidos os modelos com chassis de AB062690 a BB043495 e de BG024076 a BG029351. A Central de Atendimento Especializado da Peugeot atende pelo telefone 0800 7032424.

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Reviewing the 2010 Infiniti EX35

Reviewing the 2010 Infiniti EX35
Reviewing the 2010 Infiniti EX3, Why have car-based "crossover" wagons becoming so popular? That's simple enough. They're roomy like SUVs, usually look rugged like an SUV - and do about as well in the rain and snow as a truck-based SUV does - but without the truck-based SUV's typically clunky handling and hearty thirst for fuel. Almost all of them have one big downside, however.


That downside - if you're an enthusiast driver - is that nearly all current crossover wagons are based on front-wheel-drive layouts, usually with an all-wheel-drive system of some kind available optionally. If you want rear wheel drive (with a RWD-based AWD system) and the superior high-speed handling/balance that comes with it, you're pretty much out of luck. One of the handful of exceptions to this rule is Infiniti's rear-drive-based EX35

WHAT IT IS

The EX35 is a compact, 5-door hatchback sportwagon - aka, a "crossover" - that differs from most crossovers currently on the market in that it's built around a rear-wheel-drive (instead of front-wheel-drive) passenger car drivetrain and chassis. As such, it offers performance/handling characteristics very much like a RWD sport sedan's. Main competition is the BMW X3 and the Mercedes-Benz GLK - both of which are also based on RWD layouts, but which lean more toward the SUV-like side of the aisle than the sport sedan side of the aisle.

WHAT'S NEW for 2010

The EX35 was introduced last year as an all-new model, so changes for 2010 are incremental. All trims now come standard with USB ports for the audio system and the optional GPS system has been updated with Real Time Traffic and Weather assistance.

Also new is a noticeably higher sticker price. The base 2010 model with rear-wheel-drive starts out at $33,800 vs. $31,900 in 2009. The range-topping Journey model with AWD is priced at $37,400 - vs. $36,850 in 2009.

WHAT'S GOOD

Runs - and corners - like the G-series sport sedan it's based on. Brawny (297 hp) V-6 is standard equipment. RWD versions can do burnouts; AWD versions won't get stuck in the snow. Ingot-like solidity outside; beautifully crafted on the inside. Still a deal compared to the $38,850 BMW X3. Stronger than the 268 hp $35,500 Benz GLK.

WHAT'S NOT SO GOOD

The major uptick in price. Where's the six-speed on the floor? Drinks gas like a '76 Eldorado.

UNDER THE HOOD

One of the EX's standout features is its high-powered (and standard equipment) 3.5 liter V-6. It is the same basic engine as used in the current G-series sport sedan, as well as the Nissan 370-Z. It's just slightly smaller in displacement and tuned-down a tad to just under 300 hp. Still, that's power enough to launch the EX from zero to 60 mph in about 6.3-6.5 seconds seconds (RWD versions are quickest), which makes the EX one of the fastest things going in its segment.

The EX's main competition - the 260 hp BMW X3 and the 268 hp Benz GLK - are significantly less powerful, much heavier - and not nearly as quick. The X3, for example, needs about 7.2 seconds to make it to 60 mph. However, you can get a manual transmission in the BMW (a feature not offered with the Infiniti). BMW also has an updated version of the X3 on deck for 2011 that will likely have more power, too.

Still, the EX is near the top of the pile as far as muscularity goes. Several FWD-based competitors like the Acura RDX and VW Tiguan don't even offer V-6 engines and their fours max out around 240 hp - not even in the same ballpark as the EX35's close-to-300-hp V-6.

A five-speed automatic is standard in the EX. It features "sport" programming that can be accessed by pushing a button on the console. This allows driver-control of up and down gear changes. There's also a "Snow" mode that starts the transmission out in second gear (and reduces the aggressiveness of throttle tip-in) to improve grip on slick surfaces.

The EX's optional AWD system differs from the more common (in crossovers) set-up in that, being based on a rear-wheel-drive layout, most of the engine's power goes to the rear wheels, most of the time. As the rear wheels begin to slip, some of the engine's power is automatically routed to the front wheels, to maximize traction. In front-wheel-drive-based systems, most of the engine's output normally goes to the front wheels, until they begin to slip - at which point the system kicks back power to the rear wheels.

What's the difference - and why does it matter? The RWD-based system (with most of the engine's power going to the rear wheels most of the time - and with the weight of the powertrain more evenly spread out from front to rear) gives better handling dynamics on dry, paved roads. A FWD-based system (with most of the engine's power going to the front wheels most of the time - and with most of the powertrain's weight on top of the front wheels) will give better grip on wet/slick roads, along with handling characteristics that are more forgiving of non-expert driver mistakes, such as carryinf too much speed into a decreasing radius turn. The RWD-based vehicle will tend to kick its tail out when this happens, which can be dealt with by applying more throttle and counter-steering. But this is a technique many average drivers haven't mastered. Which is why a FWD-based vehicle - which will typically understeer, or "plow" toward the inside of the turn taken with too much speed - is more controllable and thus safer for the average driver.

But there's a price to be paid - at the pump - for all this high-performance goodness. The EX wants premium fuel only and it wants it often. EPA rates this hawg at an impressively gas-guzzly 17 MPGs in the city and 24 MPGs on the highway. AWD versions knock it down to a suck-a-licious 16 MPGs in city driving and 23 on the highway. In the EX's defense, the X3 and GLK are about as bad, fuel-efficiency-wise. And they're not nearly as powerful - nor as fun to drive (see below). Still, Exxon-Mobil will just love you if you buy this ride.

ON THE ROAD

The EX may be the best handling vehicle of its type on the road. RWD versions behave very much like a RWD sport sedan, which shouldn't be surprising given the EX's heritage. It is basically a wagonized version of Infiniti's excellent G-series sport sedan - and rides and drives very much like it.

Most crossovers are either SUVs in drag - or wanna-be SUVs based on FWD passenger cars. This forces compromises in driving dynamics for the sake of off-road/poor weather bona fides. For example, the BMW X3 - which, being based on a rear-drive layout is closest to the EX in concept - is available only with full-time AWD and is set up to be more of a sporty all-weather SUV than an out and out sport wagon like the EX35. The Benz GLK (based on the C-Class sport sedan) comes in both RWD and AWD versions, but the 30-something horsepower deficit gives the EX an obvious edge over the Benz sportwagon.

Further evidence of the EX's tilt toward the sport side of the balance sheet is its standard/available wheel and tire packages, which include dry road-biased and very high-performance "W" (up to 168 mph) speed rated 18-inch performance tires. The BMW X3's standard tire is only "H" (up to 130 mph) rated.

Other factors that affect handling feel/cornering prowess are ride height and weight. The EX35 sits much lower to the pavement, with only 6.5 inches of clearance vs. the X3's 8 inches (and nearly the same for the GLK, which has 7.9 inches of ground clearance). That is a significant difference you really can feel in a high-speed turn.

The 3,757 lb. EX35 is also much lighter than the downright fatty 4,012 lb. X3 and the nearly two-ton (3,979 lb.) GLK. The lower unsprung mass - and the higher output engine - endow the EX35 with a much more athletic feel.

If only Infiniti offered a manual transmission, this thing would really rock. Even so, the standard five-speed automatic gives the operator much more control over gear changes (when in Sport mode) than most other automatics - which frequently won't let you move down a gear (or up) until the computer decides you're at an acceptable road speed or RPM.

In the EX, you can drop down to (and hold) a lower gear sooner - and for longer - which almost makes up for the absence of a clutch.

AT THE CURB

The EX looks like what it is - a wagonized version of the G-series sedan. It's much more restrained-looking than the wild-child FX (the EX's big brother) which is even more wild-looking for 2010. The EX's look is less dramatic, but it's also less polarizing than the FX.

The interior layout of the EX is also similar to the way the G-series sedan's laid out. It is much less SUV (or even crossover) like and more sport sedan-like, with a curving "double wave" dash that flows into the door panels and recessed LCD display for the GPS in the center stack. It is finished with black lacquer and aluminum trim plates or - optionally - wood veneer inserts.

One area where the EX is lacking relative to competitors like the BMW X3 and Benz GLK is cargo capacity. Behind the rear seats, there's only about 19 cubic feet of space vs. the BMW's 30 cubic feet and the Benz GLK's 23.3 cubic feet. Also, the back seat area is noticeably tighter, too. There's just 28.5 inches of legroom for rear seat passengers vs. 35.8 in the X3 and 35.1 inches in the GLK. Max tow rating is 3,500 lbs. - same as the GLK and X3.

THE REST

Though several Infiniti models are either based on or share major components such as platforms and engines with less prestigious Nissan-branded models, Infiniti does a very effective job of putting distance between them - and not just price-wise.

The base EX, for example, comes with a high level of standard amenities, including automatic climate control, electric sunroof, premium stereo with factory satellite radio hook-up, 17 inch alloy wheels and Infiniti's unique self-healing paint. The finish has high-elastic resins that let it expand to fill in small scratches without ever needing to visit a body shop - or get out the buffing compound. With a starting price point of $33,800 the EX is also considerably less expensive than its most direct competitor, the BMW X3 ($38,850 to start), even factoring in the not-small uptick in MSRP for 2010.

Lots of safety equipment - both built-in crashworthiness and active accident-avoidance features - is a given on a vehicle such as the EX35. But in addition to the things you'd find in ay other similar in price vehicle, such as high-capacity disc brakes with ABS, side-impact and curtain air bags, traction and stability control, the EX35 goes up another notch with an available full perimeter Around View camera system that gives you a 360 degree bird's eye look around the entire vehicle, as if you were floating 10 feet above it. It works when you're moving forward as well as backing up, too - and makes it almost impossible to not notice something that you might otherwise bump into or drive over.

The EX also offers an optional Lane Departure Warning that beeps at you if you wander too near the double yellow line in the road. And this system does more than just beep at you, too. If the driver doesn't make a steering correction to get the vehicle back on track, the system will do that for him - automatically.

THE BOTTOM LINE

The EX may look like a crossover SUV but it's really a sportwagon, with more power than most - and better reflexes than any (in its price range, at least). And that puts it in a class by itself.

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Fiat Palio Weekend Trekking motor E.Torq

A trajetória do Palio Weekend no mercado é feita de ousadia e inovação. Sua gama atende a diferentes gostos, necessidades e perfis de uso, com estilo, desempenho, segurança, conforto e dirigibilidade. Tudo isto faz do Palio Weekend uma referência no mercado de station wagons compactas há muitos anos no Brasil.

Para continuar esta história de sucesso já está disponível em toda a Rede Fiat uma nova versão do Palio Weekend: a Trekking 1.6 16V E.TorQ. Ela chega para substituir a Trekking 1.4 agregando mais desempenho e tecnologia ao veículo sem aumento de preço. Além disso, a lista de equipamentos de série e opcionais é a mesma da Trekking 1.4, trazendo itens como ar-condicionado, airbag e freios ABS.

O novo motor E.TorQ 1.6 16V apresenta ótima performance com baixo consumo de combustível e, como a própria nomenclatura dos motores indica, o prazer de dirigir é garantido graças ao elevado torque desde as mais baixas rotações, garantindo rápidas acelerações e tranqüilidade nas ultrapassagens.

O segredo deste desempenho está na modernidade desta família de motores, que traz baixo consumo interno de energia graças ao peso reduzido das peças móveis, visando alta potência, economia de combustível, redução do nível de ruído e vibrações, suavidade de funcionamento, além de baixo nível de emissão de poluentes.

Com a nova motorização, o Palio Weekend Trekking 1.6 16V E.TorQ atinge potência de 115cv a 5.500 rpm quando abastecido com gasolina e 117cv a 5.500 rpm quando o combustível utilizado for o etanol. E o torque máximo é de 16,2 kgfm com gasolina e 16,8 kgfm com etanol, é atingido a 4.500 rotações. Mas, aos 2.500 rpm, o motor já produz 93% de seu torque.

Veja nova gama do Fiat Palio Weekend e seus preços:

- Attractive 1.4 – R$ 41.740.

- Trekking 1.6 16V – R$ 43.940.

- Adventure Locker 1.8 16V – R$ 55.890 o manual e R$ 57.880 o Dualogic.

Volkswagen Golf Sportline Limited Edition

A Volkswagen está lançando a série limitada Golf Limited Edition para a motorização 1.6 Total Flex. Baseada na versão Sportline 1.6 , a novidade visa oferecer ao hatch um conteúdo atratente de equipamentos de conforto e estilo com ótima relação custo-benefício. A série será produzida por seis meses.

Entre os itens que diferenciam o visual da série Golf Limited Edition estão o para-choque dianteiro com apliques na cor preto fosco nas grades inferiores; faróis com máscara preta e contorno cromado nos refletores; moldura cromada nos faróis de neblina; rodas de liga leve com nova cor Cinza Cyclone; logotipo “Limited Edition” na tampa do porta-malas e teto solar com acionamento elétrico.

Por dentro, a novidade traz acabamento diferenciado, com itens que dão requinte e oferecem conforto aos ocupantes. Entre eles estão bancos revestidos de couro preto; volante de couro e espuma dos bancos dianteiros com formatos mais esportivos; manopla da alavanca de câmbio e alavanca de freio de estacionamento revestidos de couro; painel de instrumentos com iluminação por leds brancos; soleiras das portas dianteiras com apliques em alumínio com inscrição “Golf”; banco traseiro bipartido 1/3 e 2/3 com três apoios de cabeça e cinto de segurança central automático de três pontos.

Novas rodas

Outra novidade da linha Golf é a inclusão da rodas de liga leve “Sarasota” aro 17 pintadas na cor preta como item opcional para a série especial Black Edition, lançada no ano passado.

Too Many Cars, Not Enough Market?


Too Many Cars, Not Enough Market? As we watch the slow-motion train wreck that is the dying global automotive business, it's easy to blame the economic situation for the debacle. And it's certainly a contributing factor. Or more precisely, an accelerating factor. It has made matters worse - and faster.


However, so far, there has been little discussion of the overcapacity issue that underlies the problem - and which is far more serious and which has been quietly bleeding the industry white for years now. What's "overcapacity"? Too many vehicles chasing not enough market.

The industry - that's all the carmakers put together - tries to sell on the order of 11-12 million new cars every year because that's how many cars they build. The problem is it's hard to sell that many cars, even in the best of times. And it's even harder to sell them at any kind of decent profit. For years now, the margins on most cars have been slim - and getting slimmer. Often as little as a few hundred bucks, net, per car.

Think how lousy a business that is. A car is a hugely complex thing comprised of thousands of individual components that must be manufactured at various locations and then assembled into a single unit. Literally thousands of people and several weeks (if not months) of assembly process are involved in the creation of a finished, ready-to-drive car.

Also, modern cars, once built, have an extremely long shelf life compared with the cars of the past. With decent care, they can (and do) last 15-plus years and more than 200,000 miles. But the auto industry continues to churn out new cars on the 1960s-era assumption that the entire fleet gets recycled every 5-7 years or so. Result? The inventory (new and used) stacks up. And yet, each year, it seems another automaker jumps into the already overcrowded waters with yet another model to compete against the existing multitude - making it ever harder to earn a buck off the already-there stuff.

There was an exception to this - SUVs - during the period that ran roughly from the early 1990s through last year. Profit margins on SUVs were huge - as much as $10,000 or more per vehicle on a high-end model such as a Lincoln Navigator or Cadillac Escalade. Why? Because at first, there were only a few SUVs on the market - far fewer (both model-wise and total numbers-wise) than the emerging market for them. So the automakers could charge more for them. SUVs were also easier and cheaper to build than passenger cars - which helped uptick the profit per vehicle. But the real reason they were such money-makers - at first - was because supply lagged behind demand. Now, of course, the market for SUVs is glutted, too. Which gets us back to the overcapacity issue.

The U.S. population has roughly doubled since the mid-1960s, going from around 160 million to over 300 million today. That's everyone - not just the people who are in the market for a new car - which of course is a much smaller number/percent of the total. But the number of active "players" in the US car market - brands of cars and types of cars - has expanded by triple or more during that same period.

In 1970, GM controlled about 50 percent of the U.S. car market; Ford and Chrysler each had about 20-something percent. AMC was a bit player. VW, Toyota, Honda and Nissan (then Datsun) hardly registered. And they produced small cars only - not the full range of models from econo-boxes to SUVs and luxury cars they offer today. Mercedes, BMWs, Audis and Volvos were exotic curiosities one rarely saw outside of places like New York City and Los Angeles.

And of course, there was no Acura, Lexus, Infiniti; the luxury car market in the United States was the virtually exclusive province of Cadillac and Lincoln.

Within each model segment - mid-size family sedans, for example - there were typically three or four major contenders circa 1970. Today, there are more than a dozen contenders in this same segment - and it's similar in virtually every other segment. Meanwhile, the buyer pool has not increased in parallel with the increase in the number and types of vehicles being offered.

And of course, each vehicle sold these days tends to remain in service two or three times as long as the typical car of the '60s or '70s - which was beer can fodder by about 100,000 miles.

This combo - a surfeit of vehicles and a much slower turnover rate across the board, has created a much weaker, less solvent industry - precisely because the industry has given us cars that are so much better than they used to be in so many different varieties. Ironic, isn't it? Competition and consumer choice are good things, of course - but like many things, not to excess.

Some don't want to face up to this, however - most notaby orthodox "free market" theologians. It is anathema to them to even discuss the possibility that maybe there can be such a thing as too much choice. And even, perhaps, too much competition.

Why not allow the very same market forces that have given us so much choice to thin the herd? Billions of taxpayer dollars have already been thrown like so much confetti at the floundering automakers in order to assure that not a single car company goes under, economic viability be damned.

But this will only preserve a bad situation for a little while longer; the jobs supposedly saved will still be lost in the long run. Because the market's just not big enough to absorb 12 million new cars being added to the mix every year. Eventually, reality will have its way - but from the looks of it, not before we bankrupt ourselves in a last-ditch effort to deny the obvious.