Tuesday, February 18, 2014

Cars that attract the ladies (and guys)

According to a new survey by Insure.com, women say that attractive men tend to drive black Ford pickup trucks. Men report that attractive women drive red BMW sports cars.
The survey of 2,000 men and women asked what type, brand and color of vehicle are driven by the most fetching members of the opposite sex.
Women ranked these styles as cars that attractive men drive:
  • Pickup trucks: 32%
  • Sports cars: 27%
  • SUVs: 16%
  • Sedans: 11%
  • Hybrid or electric: 9%
  • UPS truck: 4%
  • Minivans: 2%
  • Mail truck: 1%
The top brands of car for attractive men, as ranked by women, were Ford (16%), Chevrolet (13%) and Porsche (11%).  Women overwhelmingly point to black (53%) as the color of cars driven by good-looking men, followed by silver (16%) and red (13%).
Here’s how men ranked car types for attractive women:
  • Sports cars: 39%
  • Sedans: 22%
  • SUVs: 20%
  • Pickup trucks: 10%
  • Hybrid or electric vehicle: 6%
  • Minivans: 4%
Men envision desirable gals in BMWs (16%), Mercedes-Benzes (14%) and Porsches (10%). The top car colors for attractive women were red (40%), black (23%) and silver (14%).

So true

What cars do attractive people drive?To test the merits of the survey's findings, we turned to experts at some of the leading automotive websites and automakers.
"The findings strike me as very accurate," says Joe Wiesenfelder, executive editor of Chicago-based Cars.com. "Among the general public, a black pickup truck is a reflection of a masculine owner. A woman walks up to a black pickup truck and says to herself, 'Here's a guy who can help me move, bring me large gifts from Crate & Barrel and do repairs around my condo.'"
In addition, black vehicles in general are the most difficult to keep clean, Wiesenfelder adds. "If it's a clean black pickup, she might subconsciously be thinking to herself, 'This is a guy who can wash my car as well,'" he says.
As a reviewer of new vehicles, Wiesenfelder often slides behind the wheel of pickup trucks, so he's in a good position to judge the response. "That's when I find I have a lot more friends, and a lot more dates than I realized," he observes.
Wiesenfelder thinks there a several factors at play in the choice of red BMW sports car for women. First, the BMW is a luxury car, so it suggests the owner has a disposable income. "As a single man, that's attractive to me," he says. "I don't want to carry the entire relationship."
BMWs are also known for performance, he observes. They feature quick and very responsive handling. That indicates a woman accustomed to hairpin turns, who would not accuse him of driving like a maniac should he take the wheel of her BMW and test it on a long winding highway.
"There's nothing worse than a woman with motion sickness," he says.

The expert view

At Santa Monica, Calif.-based Edmunds.com, automotive editor Mike Magrath and senior analyst Jessica Caldwell also view the survey results as plausible, if not scientifically accurate.
Magrath observes that "there's just something about a truck, and it doesn't matter whether you're in Santa Monica or San Antonio. It's rugged, but it's still a guy who's put together enough resources to buy one and keep it on the road."
"It makes sense,” says Caldwell. “It brings forth the image of the rugged tough guy.” But Caldwell also drops a hint about her own personal preferences. “Some women like a lot more cosmopolitan guy, driving a Range Rover or Tesla Model S."
Magrath has a quibble with the red BMW sports car’s top ranking, but mostly because of the color. "The red BMW is a little high maintenance for me," he observes. "A black or white BMW I can get behind. It's sporty, elegant, and it requires the investment of enough time and money to suggest the owner is someone successful."
Caldwell offers one more way to up the ante: When she drove a manual transmission, "that would be the first thing guys would comment upon, once they got in my car," she says.

Mailing it in

While mail trucks ranked last as a vehicle that attractive men drive, Caldwell points to “chick cars” as especially troublesome for male drivers.
“I would think twice about dating a guy driving a VW Beetle, or anything labeled a chick car," she says. "Telling your friends, 'Yeah, my new boyfriend drives a VW Beetle,' that would be very humiliating."
For women, green minivans are date-killers – men rank these last as vehicles that attractive women drive.

The inside story of red

BMW Z4
The BMW Z4
For more on the appeal of red BMWs, we turned to authority Alexandra ("Sandy") McGill, lead color, material and finish designer for BMW Group Designwork USA.
Labeling red "red hot," McGill reports that if a driver wants attention, he or she drives a car in red, which makes forms seem more voluminous. While men prefer warmer reds, women prefer cooler or violet-toned reds.
"Red has a visceral effect on the human body and psyche," she says. "Not only does red quickly catch the eye, it makes the pulse quicken, blood flow faster and increases adrenalin. Red is associated with athletics, energetic activities and fast speed. It is popular for sports cars, coupes and convertibles. More red cars are sold in the United States than anywhere else in the world."
And red exudes confidence. That makes it ideal for BMW, which McGill calls "an emotional car." BMW has 10 exterior red colors, including solids, metallics and a matte red, she says.
A logical purchase might be the all-new BMW 4-Series Coupe, available in Vermillion Red Metallic, which emphasizes the sporty qualities of the car.
Contrary to popular myth, red cars do not cost more to insure. However, sports cars are the most expensive vehicles to insure. Insure.com’s car insurance discounts tool will help you save money no matter what car you drive.
Ford F-150
The Ford F-150
Ford Motor Co. did not respond to a request for comment about the survey results.

The importance of a clean car

No matter what brand of car you own, Magrath says either gender can make their cars more appealing by taking good care of them. "How well a car is maintained is a determinant of attractiveness," he asserts. "Like the black Ford truck and the red BMW, it goes beyond simple conveyance. It says this woman cares about how she treats herself and how she maintains her possessions."
Wiesenfelder agrees that “if the car is well kept, there's a better chance the owner takes good care of him or herself."
These observations are supported by survey results. When asked what’s most important about a car belonging to the opposite sex, people say:
1.      That it is clean. (Women: 45%. Men: 43%.)
2.      That it is reliable. (Women: 37%. Men: 29%.)
Less important are:
3.      That it is interesting. (Women: 7%. Men: 12%.)
4.      That it is new or new-ish. (Women: 6%. Men: 9%.)
5.      That it is expensive. (Women: 4%. Men: 6%.)

Cigarettes and trash

Both genders are most turned off by vehicles with cigarette butts in the ashtray, according to survey results.
Women are less forgiving of bad music and loud exhaust. Men are more easily alarmed by political bumper stickers and car dents.
Auto-related turn-offs were:
  1. Cigarette butts in the ashtray. (Women: 23%. Men: 23%.)
  2. Trash on the seats. (Women: 22%. Men: 23%.)
  3. Playing bad loud music. (Women: 21%. Men: 16%.)
  4. Bumper stickers for political candidates. (Women: 9%. Men: 13 %.)
  5. Car dents. (Women: 6%. Men:  11%.)
  6. Loud exhaust. (Women: 14%. Men: 9%.)
  7. Pine tree air freshener. (Women:  5%. Men:  5%.)
Caldwell believes most folks are also put off by Hawaiian leis dangling from rear-view mirrors and backseats inhabited by stuffed animals.
The fact of the matter remains: Your persona is intrinsically linked in some way to the vehicle you drive. You may be able to leverage that to boost your odds of a date to the movies this Saturday night.
“Your car always reflects something about you,” says Wiesenfelder. “You don't always know what, but it must reflect something."
Survey methodology
Insure.com surveyed 2,000 licensed drivers age 18 and over, split evenly between men and women and divided across age groups and regions. The online-panel survey was fielded in December 2013.

Car insurance customers who seem unlikely to switch might be charged more

Auto insurance has two new and dangerous words, says consumer advocate Robert Hunter: price optimization or, as he jokingly refers to it, getting "P.O.ed."
It's a practice among some auto insurance companies to identify the customers least likely to comparison shop for new auto policies, and charge them higher rates, just because they can.
As the director of insurance for the Consumer Federation of America (CFA), Hunter says this practice squeezes more and more premium dollars from loyal, long-term customers who pay more than others for the exact same coverage because they are unwilling, or unable, to shop for lower-cost car insurance.
These customers could be: low-income people with hardly any shopping skills and/or language difficulty; older persons unable to log on or navigate online; those wary of insurers, due in part to past run-ins or because of bad driving records; or individuals with multiple policies such as auto, home and life that are bundled together with one insurer.
No matter what the circumstance, price optimization is "classic unfair discrimination," says Hunter. "Strategies like price optimization weaken the buyers' position … and make them more susceptible to overpaying for car insurance."

Different accounts

Naturally, auto insurers disagree.
"This is a CFA-contrived scandal," says Robert Hartwig, president of the Insurance Information Institute and an industry spokesperson. "There is a record amount of competition for your car insurance dollar, and anyone who isn't competitive will be driven out of business."
Car insurance costs grew slightly more than 4 percent in the 10 years between 2002 and 2012, he points out, while the Consumer Price Index rose almost 28 percent.
But price optimization has become a well-developed strategy. By using their enormous computer firepower, insurers can segmentcustomers by education, credit report, home ownership and age, as well as additional criteria.
Certain customer segments are willing to pay more and less willing to shop around than others. And according to a Deloitte Consulting study, 60 percent of car insurance customers almost never comparison shop.
"When I see how few people buy the low-cost auto policies now available, I scratch my head," says Amy Bach, executive director of United Policyholders, a California-based consumer advocacy group.
A report on the North American market by Israel-based insurance consultant Earnix claims that half of all large U.S.-based car insurers engage in these "segment-level demand models to estimate the effect of rate changes" on customers. Earnix did not respond to requests for comment.

Frog in boiling water

When insurers identify segments vulnerable to price increases, the process is the same as boiling a frog in water in an open pot without it jumping out. Raise the temperature a few degrees at a time and the frog won't notice until it's cooked.
Earnix's 2011 webinar, titled "Insurance Price Optimization: Keys to Success," suggested taking a small sample from one of these vulnerable groups and raising the premiums on the first tenth by 0.5 percent, the second tenth by 1 percent and the third tenth by 1.5 percent to gauge how high you can go before the customer "jumps." Then an insurer knows how much to raise this group's prices.
Insurance analyst Mike Fitzgerald of Celent, an international research firm, says that the Earnix report is meant for the European market, which isn't regulated the same way as the U.S. market is by state insurance commissioners.
"Here, rates have to be approved by state regulators or insurers can only raise them within defined limits," says Fitzgerald.
These rates reflect the actual riskthat car insurers face when they insure a group such as teenagers, who have more accidents than drivers over age 25, so insurers are totally within their rights to "match the claims they rack up to the price they pay," says Fitzgerald.

'New pricing schemes'

So how would you know if your insurer is charging you more because you are in a certain group -- or just because they can get away with it?
There is subtle evidence in the Earnix report: The fact that profitability, rather than acquiring new customers, is the goal of more than two-thirds of all insurers; and that a majority offer discounts for newbusiness while only a minority offer discounts for renewals.
Changes in the way the National Association of Insurance Commissioners (NAIC) provides guidelines to regulate the U.S. market could be in the offing. One proposed document includes "new language that appears to open the door to new pricing schemes such as price optimization," warns California Insurance Commissioner Dave Jones in a letter directed to the president of the NAIC.
But a spokesperson for Jones says that "we have not identified any specific instances of price optimization" in California, which is the nation's largest insurance market.

Not even a blip on the radar

The CFA's Hunter has asked every state insurance commissioner if insurers are using price optimization. But Executive Director Birny Birnbaum of the Center for Economic Justice says it wouldn't even be a blip on the regulators' radar screen.
"No insurer, to my knowledge, actually files any information with a state insurance regulator indicating that the insurer is using it or how the insurer is using it," says Birnbaum. "It is built into other rating factors … clearly a weakness in regulatory oversight."
If regulators can't tell, then how can the consumer? If there's an increase in your rates -- and you haven't had an accident or claim -- you probably won't know if the increase is due to general annual increases or price optimization.
But what you can do is shop around. "Shopping will help insulate you from being P.O.ed," says Hunter.

USA's Biggest Car Insurance Companies by Revenue

from http://graphs.net/usas-biggest-car-insurance-companies-by-revenue-infographic.html

Monday, February 17, 2014

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