Buying a used car can be tricky business and many consumers consider a range of factors before even taking the vehicle for a test drive. Although used cars offer many drivers the benefit of affordability, it turns out that this may not be the leading factor most Americans prioritize when shopping for a used vehicle. A new study released by CarMax.com shows 45 percent of all drivers look at quality as the most important factor in their decision, over price and auto safety.
Men and women were somewhat split on the issue of quality, with 53 percent of men prioritizing it vs. 37 percent of women, according to the study. Overall, 22 percent of shoppers said price was the most important factor when shopping for a vehicle, and safety concerns came in third, with 15 percent prioritizing this factor.
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A recent lawsuit brought to the United States Court of Appeals, Ninth Circuit clarifies the breakdown of insurance coverage when dealing with supplemental rental car insurance. In Auto Rental News, the article “Lawsuit Highlights Responsibilities of Rental Car Supplemental Insurance” explains the recent lawsuit between Vigilant Insurance Company/GEICO and Lincoln General Insurance Company/DTG Operations.
A man driving a rental car in Las Vegas was involved in a car crash. He had purchased supplemental insurance from the rental company, Dollar Thrifty Group (DTG). This insurance had coverage from DTG and supplemental liability insurance from Lincoln. Compare car insurance that you purchase from a rental company before assuming that they will cover any problems. Lincoln fought paying the balance after DTG’s coverage was exhausted with the argument that the driver’s private insurance, GEICO, should exhaust their coverage before Lincoln.
The court disagreed and forced Lincoln to pay back the money covered by GEICO and Vigilant, which totaled $500,000. Basically the court said that it didn’t make sense for Lincoln’s supplemental coverage not to kick in until after the driver’s personal car insurance. They said that Lincoln was falsely representing their coverage to DTG which could cause problems in the future. What would really be the point in purchasing supplemental insurance if your personal insurance paid the accident bill anyways? Companies like GEICO or Donegal Insurance and its subsidiaries would have to raise rates to cover the cost of paying for insurance that was supposed to be covered by a supplemental plan.