The answer to this question is that it depends! It is always tempting to purchase the insurance at the car rental desk because you would rather be safe than sorry. And also that sales person on the other side of the counter makes it seem so necessary…even it if isn’t.

When we are faced with a convincing sales-pitch, regardless of if we have done the research or not, sometimes we actually believe that we need something we don’t. Don’t let this happen to you!

Renting a car under the age of 25 is difficult to almost impossible. If you are able to rent through certain companies, the insurance that you pay for is definitely at a premium under 25. Make sure you do your research before you even look into renting a car. If you know that you will need a rental car, do the necessary pre-work so you don’t end up paying extra per day.

You have several options that you should consider when renting a car:

1. Buy the Collision Damage Waiver (CDW) through your car rental insurance – This can cost you anywhere from $5 - $20 per day (on top of what you are already paying for the rental car itself). Keep in mind however, that this may be a duplication of what you already have.

2. Check Your Own Auto Insurance – Ask your insurance policy what they offer for renting cars. However, be careful because sometimes this isn’t a complete coverage and you may want to supplement it with something offered by the rental insurance. Even if your auto insurance says that they do not cover anything with rental cars, at least you checked first and know for future rentals.

3. Check With Your Credit Cards – Often times your credit card will cover you when you put the rental car purchase on that specific card. Make sure to call your credit card ahead of time to be sure what it offers (and for how long the offer lasts) to make sure. Each credit card usually has different restrictions and these restrictions can change over time so check each time before you rent a car!

For example my mum recently found herself needing to rent a car in England for over 3 weeks. She found a loop-hole in renting using her credit card as her car insurance. One credit card would only cover her rental for about 15 days. To get around this, she decided to go back to the rental company location half way through her trip and switch it to another credit card.

4. For Business Travelers, Check What Your Company Offers – Even though it might not be your money you are spending, you can save your company money by checking how they may cover you when you rent a car. Often times companies are so used to their employees renting cars that they provide full coverage to avoid any confusion or extra charges.

If you discover that you do need to purchase from the rental car insurance because you aren’t covered otherwise, make sure to not get sucked into something you do not need. Rental companies will try to get you to sign up for anything and everything they can.

Consider each option they offer you and make sure you think you actually NEED it. If they offer you something that also protects your passengers, but you know nobody will be in your car but you…then obviously this option isn’t necessary (no matter how appealing they might make it sound). Although individually the insurance might not seem like much per day, but it definitely adds up to a considerable amount of money that could be spent elsewhere!

Photo: Álvaro Daniel González Lamarque

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Can a Bike Save Your Wallet, Your Commute, Your Health?

A few months ago I got my expensive bike out of storage. I planned to use it every day to make up for all the times I hadn’t used it.

Well: I haven’t used it every day. But, I’m using it more for short errands. Biking has me thinking about the positive financial consequences of owning (and using!) a bike.

Savings: Commuting costs

If you can bike to work you save three ways. First, obviously, you use less gasoline. You also save on automobile wear-and-tear — delaying costs associated with car repair. And, you save on parking.

Sadly, it’s not practical for a lot of people to commute by bike thanks to an incomplete biking infrastructure. But, some brave it anyway. You should invest in additional safety gear (helmet, lights, reflective strips, locks). But this is a small outlay when compared to car costs over a year. According to this article:

“Car ownership is about 17 to 20 percent of a family’s income,” Glen Harrison of the Washington Area Bicyclist Association explained.

Savings: Health club

Okay: I have a grand vision of getting fit enough to bike to the health club, and then work out. The distance is a hilly 2.5 miles each way. Verdict? I won’t need to actually JOIN the gym until I’m fit enough to actually get there!! According to the same article:

Experts say the health benefits of biking out-weigh the risks 20-to-one. And what you’d profit from a daily bike ride is equal to what you’d lose smoking an entire pack of cigarettes.

If you can turn your kids into lifelong bikers, studies show it’ll improve their mental agility and they’ll do better in school.

It’ll also help them ward off heart disease, obesity and some forms of cancer, as well as improve their immune system.

Savings: the Environment

Obama threw down the gauntlet last night: we each have to do our part!

Regardless of who ascends the presidency, we’re slowly beginning to see there are real financial costs associated with repair and clean-up of our environmental messes. We pay indirectly through taxes, health care, and quality-of-life. Biking is just one way to keep pollutants out of environment while benefiting us directly at the same time.

Can biking save your wallet, your health and your world? Sure looks like it! Tell us your experiences biking, and share any hints on making your community more bike-friendly.

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Save on Gas: Find a Carpool Online
By Amanda Beals | MainStreet.com

Do gas prices drive you crazy? It is OK to go loco, as long as you Go.Loco.org—a social network that is the brainchild of Robin Chase, the former CEO of Zip Car.

Chase tells MainStreet that GoLoco.org was built on three simple premises: To save money on gas, to help the environment by reducing carbon emissions and to connect likeminded people. GoLoco.org offers “drivers” and “passengers” the opportunity to share costs, trips and perhaps, good conversation.

Chase wants people to have a solid handle on how much it actually costs to own and maintain a car. According to the Department of Labor’s Bureau of Statistics, the average person spends close to 18% of their Average Annual Household Expenditure on car ownership and operating expenses. Consider this: If a Prius transmissions (gas-electric hybrids) goes kaput, the resulting damage can cost around $8,700 to repair. That’s a lot of moolah.

Other mounting concerns for the American driver are congestion pricing, parking pricing and carbon taxes. (See Glossary Below*)

HOW TO FIGHT THESE EXPENSES

Begin by developing an online profile. GoLoco in turn keeps track of how good a passenger you are with message boards to rate you. It also monitors how much CO2 you jettisoned by not driving by yourself. Mark Chase, Robin’s brother who does not own a car, is also in on the plan. His profile denotes that he has taken 17 trips and saved 364 lbs of CO2. Mark uses GoLoco to attend a Contra Dancing group that is out of state. That’s nothing though compared to Seth Davis, who is “GoLoco’s One Ton User.”

Davis, an avid cyclist and car owner in Cambridge, Mass., says, “Once I started using GoLoco, it made it very easy to fill my car with people headed to the New England Velodrome for Races. It’s been great for me to help cover the costs of having a car in the city and of buying gas to go do things out of town…[carpooling] was a no brainer, [I] bring in money each time I go on a trip or to a race.”

With a little more than 10,000 registered users in the U.S., Robin Chase wants carpooling to catch on the Midwest. She mentions an interesting concept: Inviting megachurches to participate in weekly carpools. An average megachurch has 2000 parishioners. If a four-person family drives their SUV to church, over the course of a year they may spend in excess of $1, 612.00. But if this family carpools, that amount could diminish by half, along with a significant portion of their carbon footprint.

“Just as eBay EBAY forever changed the notion of the yard sale and Craigslist is rendering the classified sections of newspapers defunct, more and more social media like GoLoco.org are finding creative new ways to connect people online,” says Danny O. Snow, a senior research fellow at the Society for New Communications Research (SNCR.org). “The real beauty is that they ALL conserve resources — whether it’s gas, trees, or the most precious of all: Time.”

ADDITIONAL CARPOOL SITES
eRideShare.com
Carpool.com
RideSearch.com

*GLOSSARY
Congestion Pricing (sometimes referred to as value pricing) charges a driver a toll during on-peak hours in particularly congested urban areas. The majority of motorists traveling during rush hours do not comprise commuters; therefore, such pricing would encourage non-commuters to find alternative modes of transport. Not only would this cut down on carbon emissions, the money procured by tolls could be invested, suggests Chase, in improving subways and trains. Congestion pricing has been received well in London. In the U.S., only a few states, such as California, Florida and Oregon, have managed to test congestion pricing.

Parking Pricing encourages urban areas to charge higher meter rates in high traffic zones. Driving around the block for twenty minutes looking for that perfect parking spot, may be cheaper than a parking lot; however the toll it exacts on the environment is a steep price to pay. Donald Shoup, the chairman of UCLA’s Department of Urban Planning and director of the Institute of Transportation Studies, strongly encourages cities raise “the price of curbside parking in business districts and direct the extra revenue into plants, trees, benches, lighting and sidewalk improvements in the area directly affected.”

Carbon Taxes or CO2 Tax is a potential tax on fossil fuels.

It was only about 4 years ago that I was a teenager and never really thought too much about how my driving affected others. With technology on the rise and touch phones such as the iPhone becoming increasingly popular, teens are spending more time paying attention to anything BUT the road.

Don’t get me wrong, I am not trying to single out the teenage population as many other generations have fallen prey to distractions while driving as well (smoking, eating, multi-tasking, texting, etc.). But in my opinion, it is best to target a population before the bad habits continue even further.

The statistics for teen driving are extremely scary and there has to be a way for parents and others to correct the path of destruction before it gets any worse. According to AAA, car accidents involving 15-17 year old drivers cost society more than $34 billion dollars! These expenses include medical and property damages as well as other related costs for 2006 alone!

So, how can you keep your children and others safe?

Here are a few tips:

SET AN EXAMPLE – Don’t show your kids what it is like to drive by e-mailing on your Blackberry or always being on the phone. Teens will learn quickly from what they have seen their parents or other family members and friends do.

SEATBELTS – I know that when I was younger I hated my seatbelt and didn’t really truly understand what it was there for. Explain to your children when they are young the importance of seatbelts and how they can be life-saving. Hopefully it will become a routine they don’t even have to think about. I automatically put on my seatbelt regardless of how long the trip.

INSURANCE - Car insurance is expensive no matter what. Put a teen behind the wheel and the price can skyrocket your rathes…sometimes by 50% - 100%! You don’t want to have to pay higher rates just because your teen is not being safe or smart behind the wheel. Make a deal with your teenager. Make sure they are following all your rules before you hand them those keys to your car! Give them the information they need to keep their insurance rates low. Some of these things include having a safer car, keeping your driving record clean (no tickets or accidents), or even doing well in school! Depending on your policy, your child could be awarded just for being a good student.

DRIVERS TRAINING CLASSES – There are tons of extra classes outside of the basic drivers education that offer teens a greater variety of learning such as driving in the rain, sleet, and snow. Skills such as what to do if you are broken down on the side of the road are also often taught. These classes can range anywhere from $60-$200 but may be extremely beneficial.

CURFEWS – In some towns there is a mandatory curfew and teens are not allowed to be out driving around past 10:00pm. However, even if your town does not have a curfew, often times it would be best if your teen had to be home at a certain hour so you knew where they were. I suggest letting them know that they can bring their friends home too (if it is feasible for you). This way they aren’t all driving around doing nothing. I know when I was in high school if we couldn’t find anything to do we would just drive around with our friends. Now that I look back on it?…How dumb and a huge waste of gas!! Make sure your teens have a trip with an actual purpose in mind.

TALK – Don’t just hand your teen the key to the car as soon as they get their license. Lay down the ground rules and make sure they understand. Tell them not to become another statistic. Maybe read them some of these…

• In a survey conducted for AAA, it was found that 15-17 year olds were involved in about 974,000 crashes that injured 406,427 people and killed 2,541 in one year alone (SCARY)!

Reader’s Digest reported some more surprising statistics:

• 87% of teen deaths involve distracted drivers (this includes radios, eating, texting, talking on your cell, etc.).
• Adding 1 passenger increases the fatal crash risk by 48%. A second passenger increases the fatality risk by 158%.
• Speeding is a factor in 35% of crash deaths involving young drivers.

All of these statistics are really scary and get you thinking about what you might be able to do to prevent this from happening. Obviously you aren’t going to have complete control over what happens…but at least you can take a step towards making things safer on the roads.

Photo: Wally Irwin

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How To Factor Gas Costs Into Car Purchases
Eileen Gunn | MainStreet.com

With gas prices settling in well above the $3.50-a-gallon level that Bill Ford has cited as the tipping point for American drivers, more and more people are trying smaller cars on for size, or at least trading in their sedan, SUV or minivan for a more fuel-sipping counterpart.

No surprise, there are more and more resources available online to help you find the auto that will suit your needs while saving you a chunk of change at the pump.

For example, Kelley Blue Book, that longtime resource for information on buying and selling cars, recently launched KBB Green, which is not perfect, but still a good starting point for information on eco-friendly developments in the auto industry.

The Web site offers forums here you can discuss the pros and cons of hybrids, and news articles about green technology advances and new fuel-efficient cars that are hitting the market. It also has a couple of tools that are handy, but could be handier.

One tool lets you compare the fuel efficiency of your car with one that you’re thinking of buying, which seems perfect for today’s gas-conscious consumers. But it lets you compare your car only to those from a list of vehicles that the KBB staff has selected for their fuel efficiency.

So, I couldn’t compare the Ford Focus I sold earlier this year to the Toyota Matrix that replaced it to see whether I’m saving as much in gas and emissions as I think I am.

Also, it’s just assumed you’ll be financing the car and paying it off over time, which is more expensive than buying it outright, and changes the critical calculation: How long before my gas savings outpaces what I lay out to buy a new car.

Another calculator lets you type in your weekly mileage, the cost of gas near you and the make of your car to find out how your monthly petrol tab compares with that of ten particularly fuel-efficient cars.

It’s a tool that has limited use, but its bar graph and little car icons drive home how monstrously extravagant it is to drive something like a GMC Yukon truck. If you drive 300 miles a week in it, and pay $4.25 at the pump, you pay $395 a month in gas, versus $251 for a Chevrolet Tahoe hybrid or $221 for a Toyota Highlander hybrid — or, to really go in the other direction, just under $149 for a Mini Cooper.

The American Council for an Energy Efficient Economy puts out lists of the 10 overall best and 10 worst autos, as well as a list of best-in-class. There is some crossover with KBB’s list. The Prius, of course, is on both, as are the Honda Civic, the Nissan Altima, Smart car and Mini Cooper.

These lists make for good quick hits, if you want to narrow your search to the most fuel-efficient cars overall or in a particular category.

But the Department of Energy provides a wider view of the auto market, listing mileage, greenhouse gas emissions, air pollution score and annual fuel costs for most cars on the market. And, it lets you search by class or car maker within a given model year (from 2000 through 2009).

While each of these round-ups is good for general comparison purposes, most rely on the mileage stats that the manufacturers generate, usually under the most ideal conditions.

Consumer Reports does its own road testing of popular cars, and its real-world mileage is usually a little less rosy than the auto makers’ numbers. For example, Consumer Reports says the Prius gets 34 miles per gallon in the city and 47 on the highway, where the DOE reports 48 and 45, respectively. Though, by any measure, the Prius’ efficiency is nothing to sneeze at.

A hard-core environmentalist or super-savvy saver would recommend skipping the new car and just parking your existing one in the garage while you hop a bike and take mass transit or carpool — and more people are doing that.

But if you can’t get by without four wheels and are in the market for something that’s more cost-efficient to run, you’ve got plenty of help these days in finding it.

If you have a car, then you know that you are legally required to have car insurance. So unlike other insurance policies where you can maybe opt out, this is not the case with car insurance. However, you so still have a choice on which car insurance might be best for you.

There are several ways that you can save money on your car insurance (without necessarily switching to Geico as the commercials say!).

SHOP AROUND
Finding the best insurance really is not that hard. With the internet as large as it is now, you can find everything you need to know on the company’s website. Insurance companies are all over the place; Geico, AllState, Progressive, etc. Just look at what each company has to offer and decide for yourself which one you think would be best.

KEEP YOUR CREDIT GOOD
Watch your credit reports to see what they say and make sure you are paying your bills on time. Although this may seem like a completely separate issue, the reason that car insurances may consider this as important is because they want to weigh the risk that you bring with you. Insurance companies want to be sure that you are going to be responsible.

DRIVE LESS
Often times insurance companies will offer you a discount if you drive less than other drivers they insure. Try using public transportation instead of driving everywhere. With the cost of gas being high, this may also prove to save you even more money.

DRIVE SAFELY
Lets be honest, talking on your cell phone, drinking a coffee, and driving all at once — not that safe! Make sure you are being responsible. Don’t put yourself and other at any unnecessary risk just because your hands and minds are anywhere else but on driving. It’s funny when I drive with my mum we can always tell when someone is on their cell phone because either they are being an inconsiderate driver, driving too slow, or driving way too fast. Also, avoid drinking and driving. You may think you seem fine, but even being a tiny amount above the legal limit can raise the cost of your insurance and put you in other trouble as well.

WHERE YOU LIVE
You will always pay more insurance if you live in an urban area vs. the suburbs. The likelihood of theft in a city is much more likely along with the chance that your car may be damaged. If possible, move out of the city, however, I know this is asking a lot. If you decide to stay in the city, you might as well just accept that you will be paying a little bit more towards your insurance and include this in your budget.

AVOID FLASHY CARS
Often times insurance costs more for red cars…the reason being: they are easy to spot as they speed by you and tend to get more tickets. The same is true for nice sports cars. My brother this morning was talking about how on business twice he got a Mustang when he was traveling on business and both times he got pulled over for speeding (luckily he didn’t receive a ticket!). If you do have one of these cars, try not to speed although I’m sure it is extremely easy in such a nice car!

I know that some of these may seem like common sense, but often times people do not realize why their insurance costs might be higher than their friends or family members. Just keep in mind what you can do to keep your costs low.

Photo: John Pilge

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Over the weekend my wife and I made the decision to sell her car (car payment of $400/mo) and buy a Piaggio Fly50 scooter. I will drive the scooter and she will start driving my Scion. Why a scooter? Well, it averages 70 miles to the gallon and it only takes 2.5 gallons in a tank. This means you can fill it up for less than 10 bucks and ride 140 miles. And it’s a hell of a lot more fun than driving a car! In the winter and on rainy days we will have to commute, but that will still save us money. Plus I look really good in a bucket helmet and the beep beep horn is great for picking up chicks (just kidding honey). Fuzzy dice coming soon!

Oh yeah… the Fly50 comes with a 50 dollar gas card, which means our first 800 or so miles are free!

Rising gas prices are one more good reason to use public transportation. If more people followed these common courtesies, we’d all be a lot happier!

—

Six Tips On How To Commute Well With Others
By Mellissa Seecharan (06/26/08)

It’s no secret gas prices are sky-rocketing, and one of the many ways that people are dealing with it is by joining the growing masses of commuters who are ditching their cars for public transportation. According to the American Public Transportation Association (APTA) Americans took 10.3 billion trips on public transportation in 2007, the highest level in 50 years, representing a 2.1% increase over the previous year. (Their 2008 numbers haven’t come out yet, but considering that the national gas average is currently at $4.06 per gallon, one can safely assume that ridership will continue to soar.)

With this growth, daily commuters can pocket the between $40 and $100 in gas money they save from not filling up the tank (minus the price of the public transportation, of course) - a reward worth taking the bus for.

That mindset is taking hold in cities across the country. In Detroit, commuters on city buses rose seven percent. New Jersey Transit ridership increased 5% during the first three months of 2008, while subway use in New York City jumped 6.8% throughout January and February.
The growth of public transportation use coincides with news that fewer Americans are hitting the road, according to a report by Cambridge Energy Research Associates. April marked the sixth consecutive month that driving mileage declined. Americans drove 1.8% fewer miles compared to last year, a rate that is continuing to decline.

Although the idea of taking a train or bus may hit a germaphobic nerve with some, it’s actually a relaxing mode of transportation if you know the basic rules.

MAINSTREET’S TIPS ON HOW TO COMMUTE WELL WITH OTHERS:

1. ALWAYS HAVE AN IPOD/CD PLAYER/NEWSPAPER/BOOK HANDY
Nothing passes time better than listening to your favorite band or reading the day’s news. But remember that expensive electronic devices may attract unwanted attention, so don’t flaunt that $300 iPod Touch.

2. BE COURTEOUS
Passengers don’t often take others into consideration, but if you do your ride will be a lot smoother. Don’t take up multiple seats or block the aisle. And, try to limit cell phone calls. Other riders are not interested in what you’re doing over the weekend.

3. KEEP TO YOURSELF
A nosey person will always ruin a good time, even if it’s a bus ride. Avoid reading over the shoulder of another passenger, staring at people or getting into altercations of any kind.

4. KNOW WHERE YOU’RE GOING
No one likes to be held up by a misinformed or clueless person, so map out your destination beforehand. Holding up the bus to ask the driver for help will only earn you dirty looks from other riders.

5. SIT CLOSE TO AN EXIT, IN CASE IT GETS PACKED
During rush hour, buses tend to fill up pretty quickly and the middle is the last place you want to be sitting or standing. Just make sure you’re near the front or rear exits because pushing through a wall of people is the last thing you want to do on a sweltering summer day.

And, last, but not least…

6. IGNORE THE CRAZY PEOPLE
Most of the time, you can put up with the guy talking to himself, but for those rare occasions when you can’t handle the insanity, just move.

Have a story about taking public transportation? Tell us about it!

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If you can’t or won’t drive less… drive one of these.

Here is a consequence of rising gas prices: nonprofit work is becoming more difficult to administer to those in need. This is another thoughtful article from our partners at MainStreet.com.

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Rising Gas Prices Are Hurting Nonprofits
By Lyneka Little

Gas prices are not only hurting millions financially but it may be costing some seniors their lives.

As gas prices rise to astronomical heights—the average price per gallon of gas costs $4, a record—and consumers get hit with high grocery bills, some of the nation’s most defenseless people are left to fight a losing battle: Against hunger. While there is always a war against hunger, rising fuel and food prices have only exacerbated the situation.
Meals On Wheels

This situation is clearly seen in nonprofit food delivery programs to homebound seniors such as Meals On Wheels. In these programs, oft-time volunteers deliver meals to the elderly, typically by driving—and paying for the gas—their own vehicles. Nowadays, volunteers are finding it harder to fund the delivery.

The MOWAA has seen a 58% loss in volunteers due to the gas prices alone. Dealing with the loss of volunteers, “our programs have to cut back on everything,” says Enid Borden, President and CEO of Meals On Wheels Association of America. Now, “sometimes volunteers are only able to go out once a week or once every other week,” says Borden.

The one meal a day can turn into no meals a day or a meal and frozen dinners for additional days. Now 4 out of 10 seniors sit on a wait list hoping to be one of the million to receive a warm meal.

Continue reading, and consider what you can do to help.