“Small cars tend to increase insurance costs because they get into more crashes,” says Russ Rader, spokesperson for the Insurance Institute for Highway Safety (IIHS). “There’s a myth that a smaller car is more nimble and helps you avoid crashes, but smaller cars tend to have more collision losses.”
    When auto insurers see those more frequent and more expensive claims attached to certain vehicles, they rate policies for those vehicles accordingly. Thus, when you buy a smaller car that has a history of high insurance losses, you’re essentially paying for the blunders of other drivers of that vehicle model.
    “There’s a big safety downside to moving to a smaller car because you’re putting yourself at more risk of injury,” confirms Rader. “It all boils down to the laws of physics: People think about safety features like air bags, but no matter how many air bags you stuff into a smaller car, it’s not going to be as safe as a larger, heavier vehicle.”
    Are you ready to bolt the door yet?

Quit whining!
In the words of Bob Newhart, noted comedian playing a psychiatrist on TV, “Stop It.” Vehicle sales are down and the Big Three are moaning and groaning. Waaah! Whose fault is it that the automakers cannot meet the demands of the buyers? People want to purchase vehicles that the dealerships cannot provide—small cars that are more fuel efficient and environmentally friendly.
    Caught up in the spree of selling gas-guzzling trucks and SUVs, the Big Three lost sight of the lessons learned during the “gas shortage” of the 70s, dooming history to repeat itself. The U.S. has been at war for five years with countries that supply oil, so if thirty years was too long ago to learn a lesson, how about reacting to the relatively current market conditions?
    From the way that GM and Ford are scurrying to get smaller cars into the marketplace, it shows that quick action can take place.
     “GM’s product mix has a long way to go to catch up with the competition,” Jessica Caldwell, analyst at car-buying research Web site Edmunds.com, said. “Management is saying the right things right now, but they”re usually behind the curve and always seem to be re-correcting themselves.”
    According to the New York Times, Ford is about to alter its focus drastically and build more small cars. Ford will realign factories to make more fuel-efficient engines and produce six of its next European car models for the U.S. market.
    Perhaps these executives need a sign that says “Plan Ahead.”