STEERING YOU RIGHT WITH SHARON PETERS [Gazette, The (CO)]

Question:

Our son is 23 and trying to get car insurance after not having a car for two years. He got a few horrifically high quotes, and they're telling him it's because of credit reports. It's true that he's had a bad couple of years, but have you ever heard of such a thing?

Answer:

Yes. Auto insurers say there's a link between a person's credit score/ bill-paying stability and the likelihood of filing a claim. In states that tie rates to credit, they put higher charges on people with iffy histories.

Readers weigh in:

A recent comment from a reader prompted a surprising level of outrage from some of my readers. The reader was frustrated because they felt that carmakers haven't done enough to explain the various kinds of alternative technologies used to power cars.

Here's one comment I received on the matter:

"The real problem is that [car buyers] want everything laid at their feet. I educated myself about kilowatt hours, meters, serial hybrids v. parallel hybrids, my electric bill and so forth for three years. Prior to that, I knew absolutely nothing about these subjects. I now know it takes about 13 kilowatts per hour to charge my Volt. At Santa Clara rates, it costs $1.20 to charge. I get 40 miles per charge. That equates to three cents per mile. At $4 per gallon, this equals 133 miles per gallon city driving. I purchased the car knowing this formula because I took the time to learn. If gas goes to $5 per gallon, the formula becomes 166-mpg city. With $5 per gallon looming at our doorstep, people need to stop depending on others and be independent thinkers."

Another reader suggested fueleconomy.gov, a resource I've regularly recommended.

One reader agreed that the hefty price tag keeps many consumers from thinking about a hybrid, but pointed out that some features - such as long cabins that accommodate tall drivers - aren't available in other small cars. Shoppers who include hybrids in their search may find alluring benefits that make the car worth the extra dough.

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