AIG's stunning fall has global ripple effects

AIG's roots go deep here, all the way back to 1919 when a young and restless Californian arrived in a booming semi-colonial city that was teeming with bankers, industrialists and opium merchants.

Cornelius Vander Starr had sold auto insurance in San Francisco before serving as an infantry sergeant during the Great War. But the Fort Bragg native wasn't commissioned overseas, so when the war ended, he ventured off by himself to Asia's commercial hub at age 26.

Before long, he opened an office on Nanking Road with two Chinese clerks, underwriting ordinary life insurance policies as well as coverage for cargo ships carrying refugees from Russia's Vladivostok to Europe.

And so was born the company that would become American International Group Inc., the biggest insurance firm in the world.

Since then, AIG has had a special place in the hearts of many Chinese, who regarded the company as among the best of international brands. But after the U.S. government's $85-billion rescue of the troubled conglomerate last week, its stellar reputation has been tarnished, and at least a few customers are canceling their policies.

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High Gas Prices Put Car Shoppers In The Driver's Seat

There is some good news about high gas prices and a slow economy: They are putting the brakes on vehicle sales, which makes it a good time for shoppers to find great deals on cars.

Among car shoppers, hybrids and subcompacts remain popular because of great gas mileage, but there are many factors beyond fuel efficiency that affect the cost of driving. RoadandTravel.com and State Farm Insurance suggest three simple tips for those shopping for vehicles:

Homework is key - Because sales have been so slow, dealers are competing aggressively for shoppers' business, making it easier to bargain.
Budget blind spots - Car buyers often don't research expenses that can impact the cost of car ownership, including maintenance, financing and insurance.
Insurance options - There are a number of factors that influence insurance rates, beyond car models. Car buyers should ask about discounts for good driving records and good grades for teen drivers.

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How to find the cheapest cars to insure

With the credit crunch placing a great deal of pressure on many households' finances, people seeking to reduce the costs of motoring need to take a number of issues into consideration when buying a new car.

One key factor is the cost of insurance - something which can vary depending on the type of vehicle and who will be behind the wheel.

How premiums are calculated
According to the Association of British Insurers (ABI), car insurance premiums are calculated based on a number of criteria, such as where the car is going to be kept, what it is used for and the type of cover that is required.

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Eco-friendly car cover isn't often pocket-friendly

With new measures introduced by the Government to help motorists save fuel and cut their emissions, eco-friendly drivers might see hybrid cars as another step to make a difference for the environment. Research from price comparison site moneysupermarket.com reveals motorists could pay more for going green with their car insurance.

The findings showed premiums can be over 105 per cent more expensive than standard policies. Several insurers such as CIS, ibuyeco and Green Insurance offer green motor insurance and the latter two providers offset 100 per cent of a car's carbon emissions. However, motorists should be aware that clearing their carbon conscience will cost extra. For example, swiftcover quotes £342 for the environmentally-friendly Honda Civic hybrid car, but for the same cover CIS charges £389 while Green Insurance charges £701 - or 105 per cent more.

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An Automobile Insurance Myth

Gasoline is not the only necessity that is costing you more these days.. auto insurance rates are going up. But before you panic.. you need to know the reasons for any change in your rate.. Our investigation of auto insurance rates, shows one of the factors you think might influence the price you pay, may not have as much to do with it, as you think..

Walter Few is a truck driver.. today, he's getting insurance coverage for his daughter. He says, he's always thought that if the number of traffic fatalities and accidents went down, auto insurance rates ought to do the same. "if accidents and deaths are down, they should cut you a break," Mr. Few says. "Everything else is so high."


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Kayak to relaunch Travelpost review site by end of 2008

Kayak is working on a project to relaunch review site Travelpost at the beginning of December.

Travelpost was acquired as part of Kayak’s purchase of rival Sidestep at the beginning of this year.

Over the past three months the review site has been changed over to a Java-based system so that it has the same user interface as Kayak.

The next step is to make Travelpost more personal and relevant for users so that they only get review information from like-minded people.

Kayak has just enhanced its UK service with several new functions aimed at helping travellers get the best value.

The comparison site has unveiled a Fuel Cost Calculator estimating the total cost of petrol per trip and adding it to the daily rate of each car option so that consumers can compare car-hire companies and car classes.

The technology also enables consumers to search for cars based on fuel efficiency and including hybrid vehicles.

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Adding up the cost of spare parts

What financial aspects do you compare when you're considering buying a new car? Purchase price is usually No.1 and fuel consumption is right up there. Then there's resale value and the cost of insurance. And what about maintenance?

The prices of accident repair parts such as headlights, bumpers, bonnet and wings are relevant, whether or not you're insured, as the more expensive the parts, the more likely your insurance company will be to write-off the car rather than repair it.

Motoring journalist Malcolm Kinsey has been keeping tabs on a major sample of car-part costs for almost 20 years, laying bare the cost of most models' spark plugs, clutch plates, wheel rims and more.

The annual Kinsey Report throws up a number of pricing oddities and, luckily for consumers, makers often lower ridiculously high prices to bring them in line with those of competitors. The latest report features the prices of branded parts for 36 vehicles.

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Teens on Board

From adolescence to adulthood, there are certain birthdays we tend to remember more than others.

There's the 18th birthday, when you're entitled to stay up past curfew or play the lottery.

There's the 21st birthday, the age at which you can drink alcohol legally.

Although not nearly as exciting, at 25 the rates on your car insurance drop.

But there's one age that's the most exciting of them all: turning 16, and getting your driver's license.

And while it is a common transition from childhood to teen life, safety experts on a national scale are questioning whether 16 is really old enough to get behind the wheel.

A report published by the Insurance Institute for Highway Safety found that crashes involving teens would decrease significantly if they were licensed at a later age.

The study found that in New Jersey, where the driving age is 17, a rate of 4.4 per 100,000 teenage drivers were in fatal crashes from 1992-1996, compared with 20.7 per 100,000 in Connecticut, where the legal age is 16.

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Norwich Union price check service

Hayley Parsons, Chief Executive, Gocompare.com, says consumers are unlikely to be quoted happy by Norwich Union's new price check service: "In the main, consumers won't be disadvantaged by Norwich Union's withdrawal from comparison sites. The reality is they have struggled to keep their premiums competitive and, unfortunately for them, there's now nowhere to hide for their existing products.

While we respect their decision, we would urge consumers to be extremely wary of their new price checking service. This is not a comparison service and I hope consumers aren't drawn in by suggestions that it compares anything of much value at all.

When you visit sites such as Gocompare.com you get a full comparison of actual quotes from over 80 insurance brands. With Norwich Union, they are offering quick quotes which are estimates based on premiums that are two months out of date. These premiums bear little reflection to the actual quote that you will see once you have completed the full quote process.

When you eventually get a genuine quote for a Norwich Union policy you are given the opportunity to compare it against three insurance companies, out of a possible list of nine. This list gives the consumer no indication which of these companies are the best three to compare against, or even if the nine choices they are presented with give them any hope of finding a cheaper quote.

The whole service is confusing, misleading and represents a big step backwards for the insurance industry. Consumers who are familiar with using true comparison sites will find it very unhelpful. Our advice to anyone looking to compare car insurance is to use a real comparison service.

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Shall I compare thee to a table?

Some industry commentators praised the tables as a source of information for consumers. Others fear it could undermine the value of advice and lead to consumers choosing unsuitable products.

The regulator said the tables had been designed to help consumers who are thinking about taking out an MPPI policy to shop around and identify products that could meet their needs. However, when it comes to MPPI, are tables a realistic way to compare products?

John Blundell, managing director of Sterling Insurance Group, said the protection industry was continually looking for ways of helping customers make informed choices about MPPI and the FSA’s tables emphasised the customers right to choose MPPI and compare prices and products. However, he said he was concerned the tables could encourage customers to think cost should be the overriding factor when it came to choosing a suitable policy.

Mr Blundell said: “MPPI is a viable and affordable safety net but it is an individual purchase specific to an individual’s needs. Customers need to do some soul searching about their exact requirements before selecting cover.”

Simon Burgess, managing director of British Insurance, said the tables would only serve to confuse customers rather than empower them as they did not enable customers to compare the products on a like for like basis.

Mr Burgess said: “There are so many product variations with differing exclusions, terms and conditions that it is impossible to be able to collate the data in a way that allows consumers to cut the wheat from the chaff and work out what is really a good deal.”

Mark Wilson, head of propositions for financial services product portal Assureweb, said payment protection products needed to be carefully considered against exclusions and limitations in comparison to alternative options.

Mr Wilson warned the tables did not match products to consumers’ particular needs. He said: “A comparison service can help benchmark the product offering, but it does not consider alternative products that might offer a more comprehensive match to the client needs.

“In comparing payment protection products there will be subtle differences the consumer should watch out for, such as payment period limitations, common complaint exclusions and potential benefit reduction where income protection and payment protection policies co-exist.”

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