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Batten Down the Hatches As Gas Prices Rise Higher E-mail
Written by Karyn Hendricks   
Saturday, 02 August 2008
Recently I picked up a book subtitled “Six good reasons to stay home and bolt the door.” As if we needed more reasons to retreat from the world.
    In the “adding insult to injury” category, older gasoline pumps are not equipped to go over $3.99 per gallon. When prices rise above $4 per gallon, the meters go back to zero.

    Until the pumps can be replaced, several state departments of agriculture recently issued an order that allows half-pricing at retail gasoline pumps. Stations must make prices very clear, including the price per gallon and labeling on the pump (not in the small print) indicating you are not receiving a full gallon for the outrageous price you see on the pump.
    The order was granted because there is a 60 to 90 day backlog on ordering replacement equipment to retrofit the pumps to account for rising prices. The last time mechanical meters had to be retrofitted with higher numbers occurred in late 2005, when gasoline topped $3.00 per gallon. Stations must install new replacement meters by July 1, 2009.
    “The record run-up in gas prices has certainly caught many off guard, and this is another problem that many thought was years away,” said Iowa Secretary of Agriculture Bill Northey. “Regardless of price, we are committed to making sure both customers and businesses are treated fairly.”
    Pennsylvania, New Hampshire, Virginia, South Dakota  and New York are among other states allowing gas stations with those older pumps to temporarily have the pump reset to the price for half a gallon of gas.

Switching to a smaller car

Okay, since the gas prices are not going down any time soon, maybe investing in a smaller car would save some cash. Wrong answer. It turns out that switching to a smaller car can actually increase your car insurance bill.
    According to Insure.com car insurance rate research, switching to a small car is likely to raise your car insurance rate. After surveying rates from the nation’s largest auto insurers in various areas, results indicate that the Toyota Prius and Honda Civic are the most expensive cars to insure among the group which included a sedan, SUV, minivan and  pickup truck
    What the heck? Do car insurers have no appreciation for fuel conservation, lower emissions and smaller carbon footprints? The answer for insurers is: Only when it’s justified by their claims experience. Simply put, small cars are not as safe as large cars and tend to get into more accidents, leading to more broken metal, and more broken bones. That, in turn, leads to higher repair costs and litigation expenses.

 


 
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