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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