Every state requires that you carry minimum levels of auto insurance coverage, or the equivalent in financial responsibility waivers, to ensure that you can cover the cost of damages to people or property in the event of a car accident. Auto insurance requirements vary from state to state. Check with your state insurance regulator to learn more about requirements and low cost auto insurance programs.
Take these steps to get the best coverage and best price on your insurance premiums:
Get several quotes from insurance companies and comparison shop.
Consider working with an independent agent who works with several insurance companies in your area.
Raise your deductible on collision and comprehensive coverage. If you have an old car, you might want to drop these coverages altogether.
Take advantage of discounts. You may be eligible for a discount based on the number of miles you drive, your age (turning 25 or 50), your good grades if you are a student, your driving record (no moving vehicle violations or accidents in three years), or if you've taken a safe-driving course. You might also be able to get discounts if you insure more than one vehicle, insure your vehicle and your home with the same company, have anti-theft devices, or have safety features such as air bags or antilock brake system.
Before you purchase a new auto insurance policy, order a free copy of your insurance claim report. Your insurer will use the report to determine if they will sell you a policy.
Most states have some form of a "lemon" law to protect car buyers in situations where they have purchased a vehicle that is defective beyond repair. These laws tend to only apply to new cars, but you should check with your state's consumer protection office to see if they also cover used cars. Each state has its own "lemon" law requirements, but overall the ability for a car to qualify as a "lemon" depends on a few things:
Number of miles driven—The defects had to happen within a certain number of months or miles driven.
Substantial defects—Defects have to be substantial, and involve the actual operation of the car, such as the ignitition, brakes, engine, transmission, or other major parts of the car.
Reasonable repair attempts—You have to give mechanics multiple chances to repair the problems.
Number of days in the shop—Your car has to have been in the mechanic's shop for a significant number of days, (generally 30 days or more) within a year.
To get your problem resolved, first contact the car manufacturer. Send the manufacturer a certified letter detailing the problems, copies of work orders and invoices, and your request for a refund or other solution. If the manufacturer doesn’t help, you still may be able to resolve the problem. Many car contracts have mandatory arbitration clauses so that may be your next step. Check with your state attorney general or consumer protection office to get the rules specific to where you live.
Learn what recalls are and where to go to find out about recalled products.
A recall is an action taken by a manufacturer, or the government, to protect the public from products (such as medications, food, vehicles, child safety seats, cosmetics, and more) that may cause health or safety problems.
Some recalls ban the sale of an item, while others ask consumers to return the item for replacement or repair. Sometimes, a seller will provide a part that reduces the danger of using the product.
Before you buy a product, especially a used or secondhand one, be sure to check that the manufacturer has not recalled it. If you are buying a product for a child, such as toys, clothing, cribs, and costume jewelry, be especially careful. Visit these websites to find the latest on safety recalls:
In order to avoid auto repair rip-offs, be prepared. Knowing how your vehicle works and how to identify common car problems is a good start. It is also important to know how to select a good mechanic, the kinds of questions to ask, and your consumer rights.
For information on how to choose a repair shop or technician:
Auto Repair Basics helps you choose the right repair shop or technician, understand repair charges, practice preventative maintenance, and more.
A warranty is the promise that a manufacturer or seller makes to stand behind a product's quality. Federal law requires that warranties be available for you to read before you buy, even when you are shopping by catalog or on the Internet, so that you can comparison shop. A standard warranty is part of the item you purchased, and there is no additional cost for this protection from the company. There are three main types of warranties:
Written warranties are printed and come along with the item you purchased. In order for a written warranty to take effect or to make a claim against it, the seller or manufacturer may require you to perform maintenance or use the item as instructed.
Spoken warranties are spoken by a salesperson, or other staff at a retailer or service provider, for services like free repairs. If you receive this kind of warranty, have the person who gave it and their manager put it in writing. Otherwise, you may not be able to get the service that was promised to you.
Implied warranties promise that the item you purchased will do what it is supposed to do and that it can work under the circumstances that it was designed for. These warranties are created by state laws, and are not specifically stated or written.
If you purchase an item and it doesn't have a written warranty, it is still covered under the implicit warranty laws in your state, unless it was marked "as is" when you purchased it.
Service contracts or “extended warranties” extend the guarantee or promise that a product will work, and are purchased for an additional cost. Sellers offer these service contracts at the time of purchase, and sometimes months or years after your purchase. They are commonly offered when you buy a car, major electronics, or household appliances. Third party firms (not the manufacturer or the seller) may also try to sell you an extended warranty; some even make cold calls to you with high pressure sales tactics. Some extended warranties duplicate the warranty coverage that you get automatically from a manufacturer or seller. These add-ons may not be worth the cost. Ask these questions before you agree to one of these contracts:
Does the dealer, the manufacturer, or an independent company back the service contract?
How are claims handled? Who will do the work and where will it be done?
What happens to your coverage if the dealer or administrator goes out of business?
Do you need prior authorization for repair work?
Are there any situations when coverage can be denied? You may not have protection from common wear and tear. And some manufacturers do not honor contracts if you fail to follow their recommendations for routine maintenance.
Problems with Warranties
If you have problems receiving the services that were promised in your warranty, you can report your dispute. First read your warranty to make sure you know your rights. Then you can file a complaint with the retailer; if the retailer can't help, contact the manufacturer. If neither the retailer or manufacturer can help, file a complaint with your local consumer protection agency.