Author: Jenny FinchPresident Oboma's bail out plan could cause auto insurance prices to go up. The president, with good intentions, is trying to move forward in the auto industry bail out. Unfortunately, this could lead to American's having to dig into their wallets once again. Yet, another curve ball thrown in our fight against our current economic situation.
Most American's have opted to fix their older cars, as opposed to buying new ones, in order to help them better save money thru this recession. One of the added benefits of fixing your older cars is,lower insurance rates. The cost to insure a newer car is much more. Well, At least that's the way it has worked in the past.
The amount of new cars being bought has tremendously declined recently, the result being, more hazards on the road-ways. With older cars come more mechanical problems, which in return leads to more accidents. This chain reaction could possibly trickle down till it hits your pocket book.
Newer cars are likely to be less of a risk, as far as accidents due to mechanical problems. Vehicle safety techknowledgy is also a factor when comparing the newest cars to older models. Auto insurance providers will most definitely take all of this information into consideration, and the conclusion will likely be higher insurance premiums in the near feature.
Unfortunately it seems to just be part of the bad spiral that we are in right now. We fix one problem and it causes another. Hopefully the president will have a bill passed that will require auto insurance company's to cap their rates. Until then, we are at their mercy.
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Article Source: ArticlesBase.com - How Oboma's Plans Could Cause Auto Insurance to Go Up