At a time when it feels like every news story is about how your costs are getting higher, USAA is bringing a little bit of financial relief to some of its car insurance customers in Florida. This week, the company announced a combination of rate cuts and direct dividend payments to eligible members that would total nearly $1 billion in savings.

The news comes just months after State Farm announced a similar dividend payout for its customers. So some drivers have been seeing at least a little relief even as soaring gas prices strain their wallets.

But which drivers are going to see discounts? Which ones will get a check in the mail? And how much savings can each person expect? Here's what we know so far.

Why is USAA giving out refund checks and rate cuts?

With this week's news, consumers see yet another example of why USAA is consistently named the favorite car insurance company in Kiplinger's annual Readers' Choice Awards. The popular car insurance provider that caters exclusively to military members and their families noted that recent policy reforms in Florida surrounding personal injury lawsuits have led to significant savings for the company.

In turn, USAA is passing some of those savings on to its members in Florida.

"Florida's civil litigation and tort reforms have curbed legal system abuse, helping reduce the legal costs that were a significant driver of premium increases, enabling USAA to pass meaningful savings directly to members," the company said in a press release.

The company noted that other states, including Georgia, Louisiana and New York, are also looking at reforming their legal systems. As more states crack down on legal system abuse, USAA might enjoy additional cost reductions in other states. Whether or not they'll pass some of those savings onto drivers in those states remains to be seen.

How much will Florida drivers get from USAA?

The exact amount of your dividend check will depend on various factors not yet disclosed by USAA. But the insurer did say in its press release that the average payment will be about $760 per USAA member, with as much as 25% of those eligible for a dividend payment getting over $1,000.

That's significantly higher than the State Farm refund checks that were announced in March. But since this payout is limited to USAA members in Florida, fewer members overall are going to see a check.

Those dividend payments are in addition to discounts that USAA says about half of Florida auto policyholders will get. The company has dropped rates in the state by about 14% on average over the last six months.

While USAA already tends to be favored for its competitive rates, it's always worth shopping for car insurance ahead of every renewal. Getting additional quotes ensures you're always getting the best possible rate for the coverage you need. So, if your policy is about to renew, use this car insurance tool, powered by Bankrate, to find your best rates today:

When will USAA refund checks go out?

According to the press release, USAA dividend checks will begin going out to customers on June 15. It's not clear how long it will take for every eligible member to receive their check. But, if you're curious to find out whether you're getting a check and when you can expect it, reach out to USAA directly to find out.

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With gas station prices nearing historic highs and supermarket prices racing to do the same, the inflation we're dealing with today can make sticking to a budget difficult.

The best thing you can do as a consumer is get creative about how you spend, whether that's being more intentional about the frugal habits you choose to use or making sure you're getting the most value out of each purchase you make.

One of my favorite tricks for combatting rising prices is leveraging cash back credit cards. While I use travel rewards cards for all my travel spending, I've found that simple cash back is the easiest way to keep rising everyday prices at bay.

It took some time at the outset to research my different options and decide which credit card mix made the most sense for my spending. But now, all I have to do is make sure I'm swiping the right card at checkout to pocket an extra $315 per year on average.

The gas station and supermarket credit cards I use

As a personal finance writer, I'm all about maximizing rewards. I've got a credit card for just about every spending category, and a catch-all card that earns 2% across the board for any purchases that don't earn better rewards on any other card.

For gas stations and U.S. supermarkets, I use the American Express Blue Cash Preferred and the Costco Anywhere Visa Card. The Amex earns 6% at U.S. supermarkets and 3% at gas stations. It also comes with up to $120 per year in streaming statement credits (distributed as up to $10 monthly credits) that I use to get a Hulu and Disney+ streaming bundle almost for free after the credit. My Costco card earns 5% at gas stations and 2% on anything else I buy from the warehouse club.

Both cards come with more perks and rewards, but those are the primary ones I use.

The Amex also comes with a $95 annual fee(see rates and fees). The Costco card has no fee, but you do need to have an active Costco membership, which costs $65 per year (or more if you spring for the executive membership).

Still, with how much I earn in cash-back every year and the other savings I enjoy as a Costco member, I more than make up for those fees. It's important, however, to review your credit card mix regularly and make sure you're still getting enough value out of any card that carries an annual fee.

How I earn $315 per year with these credit cards

Like many households with a Costco membership, the warehouse club is where I get the bulk of my staples such as flour, meat, frozen veggies and household supplies such as toilet paper and laundry detergent.

It's also the only place I buy fuel because I live a few minutes away from a Costco Business Center, where gas prices are consistently 10 to 20 cents cheaper than neighboring stations.

Whenever I'm shopping at Costco, I swipe my Costco card to get the 5% back on gas or 2% on everything I buy in store. For all my other staples — such as fresh produce, spices and anything else that's not available at Costco or not available in a quantity I can reasonably use quickly enough — I swipe my Amex card.

It's as simple as that. Just by being a little more intentional about which credit card I pull out at the cash register, I earned $315 last year. It was an almost even split of a little more than $150 in cash back from each card. That doesn't include the additional up to $120 in streaming credits I get on the Amex card.

Credit cards can also help with organizing your finances

An unintended benefit of having multiple credit cards for everyday spending is that it makes it easy to see at a glance how much I've spent on different categories of my budget. I only use my Amex and Costco credit cards for fuel and supermarkets. I know whatever the combined balance of those two cards is reflects the total amount I've spent so far on those two things.

For my two-person household, I typically try to keep our gas station and supermarket budget under $800 per month. That's roughly $200 per week.

Each week, I can just glance at the current balance on my Amex and Costco cards and see if I'm on track. If our expenses went above $200 last week, I know this week I'll be looking through the pantry to plan a menu that requires as few new ingredients as possible.

The key to any credit card strategy is avoiding interest

While credit cards can be powerful financial tools, they also carry some of the highest interest rates of any debt instrument you can get. For any of these cash back perks to matter, it's extremely important that you avoid spending more than you can afford to pay off in full at the end of the month.

That's why I have that $800 limit in place and why I check the balance weekly to see how well I'm sticking to it.

If you struggle with impulse buying or get overwhelmed when reviewing your finances, a credit card can be more risk than it's worth. A single month of paying interest might be enough to offset any rewards you would earn for an entire year. Make sure you have a plan and budget in place before you try to leverage a credit card rewards program.

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Buying a used car from a private seller can be a smart way to save money. New vehicles lose value quickly, depreciating about 30% in their first two years and another 8% to 12% annually after that, according to Kelley Blue Book.

At the same time, dealership prices and fees remain elevated, making even used vehicles a significant purchase. As a result, many buyers turn to private sellers in search of a better deal.

A private-party sale can offer substantial savings, but it also comes with added risks. Unlike dealership purchases, private sales are typically sold as-is and often don't include vehicle warranties or other consumer protections. Before handing over your money, it's important to take a few key steps to protect yourself and make sure you're getting the vehicle you expect.

Understand what 'as-is' really means

Buying a car "as-is" means you're purchasing it without a warranty and accepting responsibility for any existing or future problems, whether they're known or hidden. Because private sellers can't certify vehicles or provide warranties, most private-party sales are conducted on an as-is basis.

That can leave buyers with limited legal options if something goes wrong after the purchase. In many states, lemon laws that protect consumers from defective vehicles don't apply to private sales.

For that reason, it's essential to thoroughly evaluate any vehicle before buying it from a private seller. Taking the time to inspect the car, review its history and verify its condition can help you avoid costly surprises later.

Start with the title before anything else

Before you inspect a vehicle, verify that the seller owns it. Ask to see the title and make sure the seller's name matches the name listed on the document. If it doesn't, the seller might not have the legal right to sell the vehicle.

Review the title carefully for any liens, which indicate that money is still owed on the vehicle. A lien must typically be satisfied before ownership can be transferred. You should also look for title brands such as "Salvage" or "Rebuilt," which indicate the vehicle has sustained significant damage in the past.

A rebuilt title means the vehicle was previously declared a total loss but was later repaired and returned to the road. While some rebuilt vehicles can be safe and reliable, it's important to have an experienced mechanic inspect the repairs and evaluate the vehicle's condition before you buy it. Salvage and rebuilt vehicles generally carry more risk and have lower resale values, so they should be priced below comparable vehicles with clean titles.

Run a vehicle history report

Using the vehicle’s 17-character VIN (vehicle identification number) on the driver’s side dashboard or the driver’s side door jamb, run a search using a platform such as CARFAX or AutoCheck.

Review the vehicle history report for potential issues, including its:

• Accident history
• Odometer rollbacks
• Flood damage
• Title brands
• Ownership history

Look for inconsistencies between the information on the history report and the information the seller is giving you. Those inconsistencies might be a red flag and a warning to walk away from the purchase.

Get the car inspected by a mechanic

Paying for a pre-purchase inspection can be one of the smartest investments you make when buying a used car. During the inspection, a mechanic will evaluate the vehicle's overall condition, including its electronics, engine, transmission, brakes and structural components, while looking for signs of wear, damage or poor repairs.

A professional inspection might uncover hidden problems such as fluid leaks, frame damage, rust, transmission issues or warning lights that aren't immediately obvious during a test drive. Spending a few hundred dollars on an inspection could save you thousands in unexpected repair costs by identifying major issues before you complete the purchase.

Inspect the car in daylight

Inspect the car in daylight so you can more easily spot potential problems. Look for uneven paint, mismatched panels or gaps in the body, which could indicate prior damage or poor repairs. Check the tires, too, since uneven wear patterns might point to suspension or alignment issues.

As you review the interior and exterior, watch for signs of flood damage, such as mud under the seats, a musty odor, moisture in the engine compartment or stained carpeting.

Test the vehicle's electronics and features before you buy. Turn on the heat and air conditioning, check the lights, test the backup camera and make sure the digital console works properly. Electrical repairs can be expensive, especially on newer vehicles, so take your time confirming that these features are fully functional.

Take a real test drive

Take the vehicle on a thorough test drive that includes both city streets and highway driving. Listen for unusual noises and pay attention to how the car handles at different speeds.

Test the brakes, including a firm stop when it's safe to do so, and note whether they feel responsive.

As you drive, check whether the vehicle tracks straight or pulls to one side, which could indicate alignment or suspension issues. Make sure the transmission shifts smoothly and consistently throughout the ride.

Questions every buyer should ask

Be prepared to ask the seller all the right questions:

• Why are you selling?
• How long have you owned it?
• Do you have maintenance records?
• Has it ever been in an accident?
• Are there any current mechanical problems?

Asking these questions ahead of time could help you identify potential issues and decide whether it's worth going to test drive the vehicle. When you go to see the vehicle, be prepared with a list of any additional questions you want to ask.

Red flags that should make buyers walk away

Watch out for red flags that mean you should walk away from the vehicle:

• Seller refuses an inspection: A seller who refuses an inspection might be trying to hide a known issue that could be revealed during the inspection.
• Seller pressures quick payment: A deposit should be enough to hold the vehicle while you arrange the payment for the remaining balance. Determine a payment timeline before you put down the deposit. If a seller pressures you to pay quickly, walk away.
• Price seems too low: Vehicle prices are at a premium right now. A price on a used vehicle that seems too good to be true probably is.
• Title issues or excuses: Look for a vehicle with a clean title. If a seller can’t or isn’t willing to produce the title upfront, there might be issues that you’ll want to avoid.
• Cash-only demands: Some sellers could ask for payment in cash for a lower-value vehicle. Be cautious with these arrangements, and make sure they’re conducted in a safe location. A cashier’s check is a much safer option than carrying a large amount of cash on you.

How to pay safely

When paying the seller, arrange to meet at a bank or a safe-exchange zone at a police station. Use a cashier’s check or a secure money transfer method. Be sure that you and the seller complete and sign a bill of sale, and that you each retain a copy of the document.

Before you complete the purchase, verify your state’s title requirements. In many states, the seller will need to sign and date the back of the title. Don’t complete the transaction unless you receive a signed copy of the title.

Don't let a bargain become an expensive mistake

Buying a used car from a private seller can be an effective way to save money, but those savings can disappear quickly if you overlook warning signs or skip important steps. Taking the time to verify the title, review the vehicle's history, schedule a prepurchase inspection and thoroughly test drive the car can help you avoid costly surprises.

Approach the transaction carefully, and don't let emotions or pressure influence your decision. If something doesn't seem right or the seller is unwilling to answer questions or provide documentation, be prepared to walk away. There will always be another vehicle, but recovering from a bad purchase can be much more difficult.

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If you own an electric vehicle, time is running out to take advantage of the EV charger tax credit. The Alternative Fuel Vehicle Refueling Property Credit covers up to 30% of the cost of a home EV charging station, including eligible hardware and installation expenses, up to $1,000.

The credit was originally extended through December 31, 2032. However, the GOP's One Big Beautiful Bill eliminated the tax credit, and it's now set to expire on June 30, 2026.

If you've been considering installing a home charging station, you might want to act soon to take advantage of the credit before it disappears.

Where you install the charger matters

To qualify for the credit, the IRS (PDF) requires you to install the charger in a home in an eligible low-income community census tract, or a nonurban census tract. According to the IRS, about two-thirds of Americans live in census tracts eligible for the credit.

A census tract is a small geographic region or neighborhood as defined by the U.S. Census Bureau. Census tracts allow the government to collect and organize data about these specific areas.

To determine if you live in a tract that’s eligible for the tax credit, use the U.S. Department of Energy 30C Tax Credit Eligibility Locator, which allows you to look up your address, and it identifies whether your home is in an eligible tract.

Not every home will qualify for the credit. If you have a second home, the charger must be installed at your primary residence to qualify for the credit.

Which types of EV chargers qualify

The EV charger tax credit applies to Level 1 and Level 2 chargers; the chargers must be new.

Level 1 chargers use standard 120V outlets and can be used for lighter charging needs, but most homeowners install Level 2 chargers, which are faster and can fully charge typical electric vehicles overnight.

When shopping for an EV charger, consider how you tend to use your vehicle, your typical charging needs and the types of features that you might want.

For example, smart scheduling can charge your vehicle during off-peak times when energy rates are lower, and smart chargers can provide detailed summaries of energy usage and can send you notifications to remind you to charge your car.

Both the hardware and the installation could count toward the tax credit.

Below are a few top-rated Level 2 EV chargers we found:

Do you need an electrician?

Many Level 2 chargers require professional installation. Depending on the location of the charger and the capacity of your electrical panel, an electrician might need to upgrade the panel to handle the additional electrical load.

The installation will typically require an electrical permit, which a licensed electrician can usually obtain on your behalf. If you live in a homeowners association (HOA), you might also need approval before installing a charger.

Installing a charger can become more complicated if you rent your home or live in a condo. In these situations, you might need approval from a landlord, property owner or condo board. You might also have to follow building rules or bylaws that could affect where the charger can be installed or what type of charger you can use.

What records should you keep for the tax credit?

It's essential to carefully organize and keep records of the charger installation for the tax credit. As you move through the process, be sure to retain the following:

• Receipts. Keep receipts for the charger, related equipment and installation costs.
• Permits. Save all permit paperwork, including the signed permit card showing the installation passed inspection.
• Electrician invoices. Retain all invoices from your electrician, including charges for permits, panel upgrades and installation work.
• Proof of payment. Keep proof of payment for all expenses, such as credit card statements, receipts or canceled checks.
• IRS Form 8911. You'll use IRS Form 8911 to claim the tax credit when you file your taxes. Be sure to keep an extra copy of the form for your records.

Is it worth rushing before the deadline?

Installing an EV charger is a significant project, so it’s important to research your options and choose a charger that fits your needs.

That said, the tax credit could provide meaningful savings. Most home chargers cost between $500 and $900, while installation can range from about $1,000 to $3,000 depending on the complexity of the project and the condition of your existing electrical panel.

For example, if your total project cost came to $2,800, you could potentially receive an $840 tax credit. If you were already planning to install a charger, it might be worth completing the project before the June 30 deadline.

To meet that deadline, though, you’ll likely need to move quickly, especially if permits are required.

Start contacting electricians now to check their availability and ask whether they believe the installation can realistically be completed in time.

To qualify for the EV charger tax credit, the installation must be fully completed by June 30.

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Many older Americans are feeling deja vu as they watch energy prices rise in response to the Iran conflict. For those who lived through the 1970s and remember the spiraling inflation, soaring energy prices and increasingly unaffordable homes, today's economy looks eerily similar.

Here's a closer look at the parallels between the economy Americans are facing today and the one older generations dealt with over 40 years ago.

Unless otherwise noted, the data for this story came from the Federal Reserve Bank of St. Louis, the Bureau of Labor Statistics and the Census Bureau.

Comparing the economic aftermath of the 1979 Iran oil crisis with the one we're facing now

The 1979 Iran oil crisis came in the midst of a cost-of-living crisis that had gripped the nation for most of the 1970s. The steep drop in oil production following the revolution sent crude oil prices soaring from $14.85 to $39.50 per barrel. Prices didn't drop back into the teens until 1986.

The ripple effects will feel familiar to many Americans: Gas prices soared. Utility bills shot up. Inflation got worse. After topping 11% by 1974, inflation had started to ease, but by 1979 it was back above that level and peaked at 13.5% by 1980.

Fast forward to today, and you can see a similar story unfolding. In December 2025, a barrel of oil was selling for $57.26. By March, that same barrel cost $102.86.

Inflation was already surging before this, shooting from 1.23% in 2020 up to 8% by 2022. After dipping below 3% in 2024, it's now back above that threshold, hitting 3.3% as of March. That's almost a full percentage jump over February, when 12-month inflation was 2.4%.

Energy costs are once again a key driver, and their ripple effects across food, housing and other essentials could keep inflation elevated — even if the conflict stabilizes.

Because the situation is still unfolding, the latest data doesn't yet capture the full impact. To put today's trends in context, I'll compare inflation and affordability across similar windows: the six years between the 1973 and 1979 oil crises, and the six years between the 2020 pandemic and today's energy shock.

Transportation

One of the most immediate impacts of any sudden spike in oil prices is a spike in gas prices. According to the Department of Energy, gas prices averaged $0.67/gallon in 1978. After the 1979 revolution, prices nearly doubled to $1.25 by 1980 and continued climbing from there. After adjusting for inflation, that's equivalent to a jump from $3.54 to $5.31.

Today, we've been fortunate with gas prices prior to this recent spike. After peaking at $5 per gallon in the summer of 2022, they've been falling rapidly in the years since, hitting $2.77 in January.

When the conflict with Iran began in February, however, the price at the pump shot up in a matter of weeks, reaching $4.12 by April. That's a nearly 50% increase between February and April.

Just about every aspect of transportation got more expensive as well. From January 2020 to January 2026, car insurance premiums rose about 28%. That stings, but not as much as the 71% surge between 1973 and 1980.

A new car, on the other hand, is significantly less affordable today than it was in the 1970s. The average price ticked above $50,000 for the first time a few months ago and sits at $51,440 as of February, according to a Kelley Blue Book report.

While it's hard to find historical data showing the industry-wide average price of a new car, we can compare today's costs by looking at a model that's been around since the 1970s, the Honda Civic.

In 1972, the very first Honda 600 had a Manufacturer's Suggested Retail Price (MSRP) of $1,415 (about $11,280 in today's dollars). By 1979, a new Honda Civic was priced at $3,649, a 157% increase over the 1972 model. But that's still just $17,260 in today's dollars.

Today, a 2026 Honda Civic with the lowest cost trim available has an MSRP starting at $24,695. That's 43% more expensive than the same car in 1979, when comparing inflation-adjusted prices.

Overall verdict: The speed of inflation when it comes to gas prices and other costs was more rapid in the 1970s. But, when you factor in the cumulative inflation between the 1970s and today, transportation is less affordable today than it was decades ago.

Housing

Another ripple effect of rising oil prices is rising energy prices. In March, the energy index rose 10.9% in a single month, bringing prices up 12.5% year-over-year.

That's not quite as bad as the 1979 oil crisis, when electricity rates spiked 17% by 1980 and natural gas prices shot up 44% between 1978 and 1980, according to the U.S. Energy Information Administration. But we might still have more rate hikes in store for us — though not all related to oil prices.

That 12.5% year-over-year spike comes on top of already inflated energy rates. Since 2020, the average cost of electricity has gone up 25% while natural gas rates surged 42%. This month alone, electricity and natural gas jumped another 6.1% and 6.4%, respectively.

Things get even more expensive when you factor home prices and mortgage rates.

In 1973, Americans could expect to pay a median price of $32,500 to buy a house (about $247,850 today). By 1979, home prices had nearly doubled to $62,900 ($297,570 today).

Between 2020 and 2025, meanwhile, the median home price jumped from $330,900 to $419,200. That's about a 27% price increase, which is definitely a more modest jump from 1973 to 1979. However, when adjusting for inflation, today's homes are roughly over 40% more expensive than they were in 1979.

Mortgage rates complicate the picture. In the 1970s, mortgage rates shot through the roof, jumping from 7.44% in 1973 to 12.85% by the end of 1979.

Mortgage rates technically rose faster between 2020 and 2025, experiencing a 133% increase. But they rose from historic lows of 2.66% in December 2020 to 6.21% by December 2025.

Let's say you're a typical homeowner buying a house with a 20% down payment in each year to get a sense of how home prices and mortgage rates impacted your wallet:

When factoring in interest rates (and adjusting for inflation), 1979 homebuyers had the most expensive mortgage payments, but today's averages are a close second.

Overall verdict: The shift in home affordability looks similar between the 1970s and today’s post-pandemic economy. In both periods, saving for a 20% down payment became more difficult, and the monthly mortgage payment that followed took a bigger bite out of household budgets. Energy costs are also rising again, putting utility bills on a path that could mirror the spikes homeowners faced in the 1970s.

Food

In March, overall food prices were flat month over month and up only 2.7% year over year. Food at home prices actually fell by 0.2% between February and March and are up only 1.9% since last year.

That modest dip isn't enough to translate to major relief for consumers yet. Between 2020 and 2026, overall food prices have surged 32%. So there's a long way to go before food starts to feel affordable again.

Whether or not they remain on that downward trend is up in the air, though. The downstream effect of rising oil prices will also lead to higher costs for food producers in the form of rising fertilizer prices, higher costs for transportation and other operational expenses that are vulnerable to shifting energy prices.

The situation was even more grim in the 1970s. Between the oil embargo in 1973 and the Iranian Revolution at the end of 1979, overall food prices soared 89% for consumers.

Overall verdict: Food prices definitely rose faster in the 1970s than they did today. But the full impact of this recent Iran conflict is still yet to be felt. While we may not see double digit food inflation again, the conflict will likely reverse the downward trend we started to see in March.

Salaries

While costs generally soared faster in the 1970s than they have today, so did salaries. Between 1973 and 1979, the median household income grew 56%, rising from $10,510 to $16,460.

When you adjust for inflation, however, the typical household's buying power actually fell by 2.8%. That $10,510 salary in 1973 is equivalent to $80,151 today. Jump to 1979, and that $16,460 salary is only worth $77,870 today.

Today's households have also seen a decrease in buying power despite nominal increases in wages. In 2020, the median household income was $68,010 (equivalent to $87,055 today). In 2024, the most recent year for which data is available, median income rose to $83,730. When adjusting for inflation, that's a 3.8% decrease in buying power.

As a point of reference, compare those salaries to the typical mortgage payments mentioned in the housing section above.

In 1973, a $181 mortgage payment would have taken just 20% of your gross salary. By 1979, a typical $551 monthly mortgage payment would have already eaten up 40% of your gross salary.

In 2020, a $1,068 mortgage payment would have taken up just 18% of a typical household's gross income. By 2025, the typical $2,056 mortgage payment would account for nearly 30% of a household budget.

Overall verdict: Just like in the 1970s, Americans today are seeing paychecks rise on paper. But they're not growing fast enough to keep up with inflation. In fact, even though inflation was rising faster in the 1970s, the typical household's buying power wasn't falling as fast then as it's falling now.

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Summer road trip season is picking up — and so are fuel prices. Ongoing global supply concerns, including tensions around key routes like the Strait of Hormuz, are starting to push gas prices higher in many parts of the U.S., just as travel demand ramps up.

At the same time, rental companies are expanding their electric vehicle (EV) fleets, often pricing them competitively with traditional gas cars. That’s prompting a simple question for travelers: Could renting an EV actually save you money this summer?

The answer depends on more than just gas prices.

The simple cost comparison: EV vs. gas rental

When comparing an EV rental to a traditional gas-powered car, it helps to break costs into three main buckets:

1. Rental price per day

Daily rental rates for EVs can range widely depending on the market, but it’s not uncommon to see compact or midsize EVs priced between $40 and $90 per day. In some cases, EVs are discounted to encourage adoption, making them comparable to or slightly cheaper than standard gas vehicles in the same class.

2. Fuel vs. electricity

• Gas car: The average U.S. gas price has hovered between roughly $3.25 and $4.00 per gallon in recent years, according to the U.S. Energy Information Administration. For a vehicle getting 25 to 30 MPG, that translates to about $0.11 to $0.16 per mile in fuel costs.

• EV: Charging costs vary much more depending on where you plug in.
  • Home or hotel charging: around $0.10 to $0.20 per kWh
  • Public Level 2 chargers: about $0.20 to $0.30 per kWh
  • DC fast chargers: often $0.30 to $0.60 per kWh or more, according to EVChargingStations.com

For many EVs that average 3 to 4 miles per kWh, that works out to roughly $0.08 to $0.20 per mile. This means EV charging can be cheaper than gas, but fast charging can narrow or eliminate that advantage.

3. Fees and extras

This is where costs can surprise travelers. For gas vehicles, refueling service fees can range from $5 to $10 plus the cost of fuel, or significantly higher per-gallon rates if you prepay or return the tank empty, according to Avis.

With EVs, some rental companies charge a low battery fee of $20 to $35 if the vehicle is returned below a required charge level. Idle fees at public chargers (if you leave the car plugged in after charging completes) can run $0.40 to $1.00 per minute, depending on the network.

Fast charging session minimums or connection fees can add a few extra dollars per stop. These additional costs can add $10 to $50+ to a trip if you’re not planning carefully.

So while EVs often have lower "fuel" costs on paper, fees and charging choices can significantly affect the total.

When an EV rental may be cheaper

There are a few scenarios where EV rentals can clearly come out ahead:

Short-to-medium trips

If you're driving predictable distances like airport runs, local sightseeing or a weekend trip under 300 miles, you can often minimize charging stops and avoid higher fast-charging costs altogether.

Urban or well-equipped areas

Cities with several charging networks make it easier to find lower-cost charging options and avoid premium-priced stations.

Free or included charging

Some hotels, vacation rentals and even parking garages offer complimentary Level 2 charging. That can reduce your "fuel" cost to nearly zero for overnight stays, which is one of the biggest advantages EV renters can take advantage of.

Higher gas price environments

In areas where gas prices spike during peak travel season, EVs can offer more predictable and sometimes even lower energy costs.

Lower daily rental promotions

Rental companies are still working to move EV inventory, which means you may find promotional pricing that undercuts comparable gas vehicles. This is especially true for weekday or off-peak bookings.

Less stop-and-go cost penalty

EVs are particularly efficient in city driving, where regenerative braking helps recapture energy. That means frequent stops and slower speeds (which are common in vacation destinations) can actually improve efficiency rather than reduce it.

When a gas car may still cost less

While EVs can offer real savings in the right situation, they’re not always the most cost-effective or practical choice for every trip. In fact, for many traditional summer road trips, a gas-powered rental can still come out ahead once you factor in time, infrastructure and charging costs.

The key difference is predictability. With a gas car, most travelers already know what to expect: quick fill-ups, widely available stations and relatively consistent pricing along major routes. With an EV, costs and convenience can vary much more depending on where you are and how you travel.

Here are a few scenarios where a gas car may still be more affordable.

Long-distance highway driving

EVs tend to be less efficient at sustained highway speeds, which means you may burn through battery range faster than expected. That can lead to more frequent charging stops, and if those stops rely on higher-cost fast chargers, your per-mile cost can climb closer to (or even match) gas.

Areas with limited or unreliable charging infrastructure

If you're traveling through rural areas or regions with fewer public chargers, you may need to go out of your way to find a working station. That can add both time and mileage to your trip, increasing overall costs.

Situations where fast charging is required

Fast charging is convenient, but it often comes at a premium price. Rates at some DC fast chargers can approach $0.50 per kWh or more, which can make the cost per mile comparable to driving a gas vehicle, especially if fuel prices are moderate.

Tight travel schedules where time matters

Even under ideal conditions, charging takes longer than filling up a gas tank. A fast charge can take 20 to 40 minutes, while slower chargers can take several hours. If you're on a packed schedule, those charging stops can add friction and reduce flexibility. For many travelers, time matters just as much as cost.

What it's like if you've never driven an EV

Driving an EV is often described as smooth, quiet and in many ways, simpler than a gas car. But the planning is different. Instead of quickly pulling into a gas station, you’ll likely need to map out charging stops ahead of time.

You should also download apps for different charging networks if needed. With an EV rental, it’s also important to pay attention to charger speeds and availability. Not all chargers are created equal, and availability can vary depending on location and time of day.

Example: A 300-mile weekend trip

Let’s break down a simple, real-world scenario to see how the costs compare.

In this case, the EV could be cheaper, or about the same, depending on charging costs.

How to decide before you book

Before choosing between an EV and a gas car, ask yourself:

• How far am I driving?
• Where will I charge?
• Is charging free or convenient at my hotel?
• What’s the rental price difference?

If your trip is mostly in a city or an area with easy charging, like at your hotel or nearby, an EV can often save you money, especially with shorter driving distances. If you’re planning a long road trip, traveling through areas with limited charging or on a tight schedule, a gas-powered car is usually the simpler and similarly priced option.

In general, EVs work best for shorter, well-planned trips, while gas vehicles are often better for longer, convenience-focused travel.

What matters most when choosing a rental car

EV rentals can save you money, but not automatically. Gas prices are only one part of the equation. Charging access, travel distance and your schedule all play a major role in the total cost.

For summer travelers, the smartest move isn't only choosing the cheapest daily rate. You'll also need to look at the full picture before you book to determine the most cost-effective and comfortable solution for your needs.

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Summer is just around the corner, and with it comes peak driving season as Americans plan vacations, road trips and family get-togethers. But between the impact of the Iran war on gas prices and the post-pandemic jump in car maintenance and repair costs, hitting the road will be a lot more expensive this year.

“Drivers are currently facing all-time high automotive costs,” says Duane “Doc” Watson, technical trainer at Bosch Automotive Aftermarket in Cocoa, Florida.

Since early January, when gas nationally averaged $2.81 a gallon — the lowest price since 2021 — the cost of filling up at the pump has surged more than 40%, to $4.15 on average in mid-April, for a gallon of regular, and it topped $5 a gallon in a few states, including California and Washington. “If the situation with the Strait of Hormuz continues, prices could be even more elevated by summer,” says Patrick De Haan, head of petroleum analysis at GasBuddy.

Another headache for motorists: The bill for car repairs and maintenance has also soared, climbing 48.8% over the past five years, according to the Bureau of Labor Statistics. That makes it the second-largest jump in consumer prices of any category except car insurance, which, of course, is yet one more pain point for drivers.

Still, while planning an affordable road trip has gotten more challenging, there are strategies you can use to lessen the burden, from taking advantage of apps, programs and services that lower gas costs to employing driving techniques that improve fuel efficiency — a tactic that the Department of Energy estimates can save you more than $1.50 a gallon when you fill up.

Here’s how to put yourself back in the driver’s seat when it comes to car costs.

1. Use apps to save on fuel

With prices at the pump varying widely even within the same town, it pays to shop around. Apps such as AAA Mobile and GasBuddy allow you to compare gas prices along your route so you can fill up where fuel is cheapest. Navigation tools such as Waze or Google Maps also include gas-station price info by location and can help you avoid traffic and choose more efficient routes, which saves on time and fuel as well.

When you fill up matters too. According to a recent GasBuddy analysis, Sunday is typically the cheapest day of the week to fill your tank in most states, followed by Monday, while prices are usually highest midweek, especially on Wednesdays.

2. Make the most of loyalty and rewards programs

Popular gas station chains such as BP, Shell and Exxon offer free loyalty programs that can save you about 3 to 10 cents per gallon simply for being a member. And while paying in cash typically shaves the price of gas by 5 to 10 cents a gallon, you may be able to save even more with a credit card that offers generous rewards on gas purchases.

Rewards cards that offer a category-high 5% cash back on gas include the AAA Travel Advantage Visa Signature, which also offers 3% back on grocery store, restaurant and travel purchases and 1% on everything else; Citi Custom Cash, which offers 5% back on whichever of 10 categories — including gas stations — that you spend the most each month, 4% on hotels and other travel booked through Citi, and 1% on everything else; and Costco Anywhere Visa, which offers 5% off on gas purchased from Costco, 4% on gas bought elsewhere, 3% on restaurants and eligible travel, 2% on Costco purchases, and 1% on everything else (you must have a Costco membership, starting at $65 yearly, to use this card).

3. Improve your driving game

Avoid speeding, rapid acceleration and hard braking, which all waste fuel. While that advice might sound basic, the savings add up. The Department of Energy estimates these behaviors can improve fuel efficiency by up to 40%.

Also helpful: Plan trips to avoid rush hour traffic. Your vehicle burns extra fuel when it sits idling in congestion.

4. Declutter your car

The heavier your vehicle, the worse its fuel efficiency. The more luggage and gear you carry, the more fuel your car will use.

Bulky accessories such as roof racks or bicycle racks also reduce efficiency by adding weight and increasing air resistance. Cargo on the roof is especially costly, reducing fuel economy by the equivalent of up to 65 cents per gallon on highway driving, according to the Department of Energy.

5. Plan ahead for EV charging

Electric vehicles avoid gasoline costs, but drivers still need to plan where and when to charge. Rates can vary widely by location and time of day.

Apps such as ChargePoint or PlugShare can help drivers find nearby stations and compare prices. Try to avoid charging during peak driving hours, when electricity is more expensive. Charging during off-peak hours from late at night to early morning reduces costs.

6. Be proactive with maintenance

Investing a little time and money in routine maintenance can help you avoid unexpected and expensive hiccups, such as a breakdown or tow.

Key moves as you prepare for an upcoming road trip: Make sure to change the oil in the vehicle, if you’re coming up on the 5,000- to 10,000-mile mark; a $65 oil change can prevent thousands in engine damage later. Check the tire pressure since proper inflation improves handling, fuel efficiency and tire life. And make sure to test your battery before a long trip as well.

“Summer heat can strain batteries weakened during the winter,” says Watson, who notes that many auto shops will check battery health for free.

7. Shop around to save on repairs

If something breaks in your vehicle, first check whether the issue is covered under your initial warranty. If not, shop around local garages for quotes. Having a trusted mechanic is valuable, but it still pays to compare prices.

“It’s very useful to have an ongoing relationship with a repair shop,” says Sean Tucker, managing editor for Kelley Blue Book. “My secret is that I keep two and shop them against each other.”

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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April is distracted driving awareness month and the safety statistics show that awareness is needed. Despite laws in most states banning the use of phones while driving, distracted driving remains a deadly and expensive problem in the United States.

29% of car accidents are caused by distracted driving, resulting in over 3,200 deaths and causing an estimated $395 billion in damages each year, according to a 2024 report by the National Highway Traffic Safety Administration (NHTSA).

The same report said one of the biggest challenges to addressing the problem is "the breadth of distraction sources and activities available to a driver." In other words, it's not just your phone. As technology continues to advance, the distraction is now coming from inside the car. New features meant to make driving more comfortable and stress-free end up encouraging drivers to pay less attention to the road.

You're driving distracted more often than you think

The NHTSA describes three types of distraction and you're almost certainly falling into at least one of them as you drive. Those distractions are visual, manual or cognitive:

• Visual distractions require you to take your eyes off the road, putting you at risk of not seeing a potential hazard.
• Manual distractions require you to use your hands for something other than driving, delaying your ability to react to hazards as quickly as you might need to.
• Cognitive distractions take your mind off of the task of driving, making you less alert to your surroundings.

Most distractions fall into two or more categories. Texting, for example, fits all three: it takes your eyes off the road, your hands off the wheel and your attention away from driving.

But even if you're smart enough to avoid texting while driving, you're likely engaging in activities that distract you in at least one of the three ways described above.

Not happy with the song on the radio? Changing the station or skipping to the next song on Spotify is a manual distraction. Unsure of where your next turn is? Your GPS navigation system is a visual distraction. Driving in a car with handsfree calling capabilities? You might have your eyes on the road and your hands on the wheel, but now your mind is distracted by the task of talking on the phone.

Your car isn't helping you stay focused on driving

As vigilant as you try to be, modern cars come with multiple features that make it easy to get distracted and may even make you feel safe enough to pay a little less attention. One of the culprits is your car's infotainment system.

A report by the AAA Foundation for Traffic Safety evaluated the infotainment systems of 40 different vehicle models, ranging from high-end Audis to entry-level Toyotas measuring the time it took drivers to complete tasks using systems in 2017 and 2018 vehicles. 29 of the models studied were found to have systems that made "high demand" or "very high demand" of your attention. The remaining 11 still commanded "moderate demand" of a driver's attention.

The ratings were based on how often the technology required your visual or cognitive attention and how long it took to complete a given task. This included common tasks you might do while driving like program your navigation, use voice commands, make a call, or adjust your audio entertainment.

The Tesla Model S, for example, allows drivers to search the internet while driving and features so much information on the screen that navigating the different menus and submenus can take up a lot of the driver's time (and attention). The voice commands meant to allow drivers to complete tasks without their eyes or hands were still slow, error-prone and imposed a high cognitive demand on drivers. Tesla isn't alone. The report found similar issues with many of the other cars studied.

The other major culprit of distracted driving is the rise of self-driving and driver assistance technologies.

At a board meeting last month, the National Transportation Safety Board (NTSB) urged congress to establish minimum safety standards for this technology following two fatal crashes linked to Ford's Blue Cruise system.

Ford's driver assistance system promises "hands-free highway driving," according to the manufacturer's website. The automated features can accelerate, brake and steer the vehicle for you.

The website also says drivers are supposed to keep their eyes on the road while using the feature. Cars with the technology also come with internal cameras that are meant to detect if a driver's eyes are no longer on the road. But the NTSB investigation into the two crashes alleges that these cameras failed to detect that, in both accidents, drivers were not looking at the road at the time of the crash.

“Our brains are just wired in that if we think that a system is going to take over and reliably handle a driving task, we get bored and we look for something else to do,” said Cathy Chase, president of Advocates for Highway and Auto Safety, during the board meeting.

While the focus was on the recent crashes involving Ford, the NTSB stressed that this is an industry-wide problem. As more and more carmakers add self-driving or driver assistance features to their vehicles, it's going to enable more and more drivers to use their "hands-free" driving time to navigate their increasingly distracting infotainment systems.

How to drive safely in a distracted world

With distractions everywhere, it can be difficult to stay focused on the road. But even partial distractions — like struggling with a voice command system or trying to skip a song you’re tired of hearing — can be dangerous.

Here are a few tips to help minimize distractions and drive more safely.

Program your navigation and audio before you drive
Some cars already limit your ability to program these things while the vehicle is in drive. But even if yours doesn't, you should get yourself set up before you hit the road. Cue up a long enough playlist to cover the length of your drive, for example.

If your steering wheel has volume or skip buttons, use those instead of the touchscreen. If you need to adjust your navigation, pull over to do so.

Don't take calls or answer texts (even with voice-to-text) while driving
If it's urgent enough to answer right away, pull over. If it's not worth pulling over to respond, it can wait until you're done driving.

Some phones allow you to turn on a driving mode which will temporarily pause notifications while you're on the road and automatically send a message to callers or texters, letting them know that you can't answer right now. Using this can help reduce the temptation to respond immediately.

Limit or avoid the use of assisted driving features
As the Advocates for Highway and Auto Safety president mentioned during the NTSB meeting in March, assisted driving features can lull you into a false sense of security. Sticking to old-fashioned manual driving keeps you more engaged with the task at hand.

Use Android Auto or Apple CarPlay instead of your car's native system
In the distracted driving report mentioned earlier, AAA found that both Android Auto and Apple CarPlay were still potentially unsafe, but they were far less demanding of drivers' attention than the sometimes clunky proprietary systems designed by automakers.

This isn't always an option in all cars. But if it is an option in yours, use it (just not while you're driving).

Don't assume other drivers are paying attention
With the rise of driver-assist technology and in-vehicle touchscreens, more drivers on the road may be distracted. An attentive driver might brake or slow down when traffic changes—but a distracted one may not react in time. That makes it even more important to stay alert and responsive behind the wheel to protect yourself.

Take a defensive driving course to boost your skills
There are many defensive driving courses available, including plenty of convenient online options. These cover everything from recognizing hazards to best practices for handling various road conditions. Some of it is sure to be a repeat of things you already know, but you'll likely learn a few new things as well.

If you're not convinced a course is worth your time (or money), remember that many insurers offer discounts on your premium if you take an approved course. They typically take about six hours to complete and can help you save on car insurance.

Just make sure you choose an approved defensive driving course, like one of the following:

• DriveSafe Online
• AARP Smart Driver Course
• Safe2Drive
• I Drive Safely
• National Safety Council (NSC)

Don't let a false sense of security lull you into an accident

Between the built-in car features that are demanding your attention and the convenience features that make you feel safe enough to take your eyes or hands off the task for a minute or two, it's getting easier to forget that you're sitting in a 4,000-pound hunk of metal barreling down the road at high speeds.

But driving is, in reality, the most dangerous mode of transportation by a long shot. According to the Bureau of Transportation Statistics, the overwhelming majority of transportation fatalities occur on highways.

In 2023, for example, over 40,000 of the 42,920 transportation deaths in the United States happened while driving. Likewise, over 99% of the 2.4 million transportation injuries that were reported that same year occurred on the road. The stats are similar for other years. By staying alert and minimizing your use of those convenient features your new car has (at least while driving), you can reduce your risk of becoming part of that statistic.

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If you're a ride-share driver, delivery person or other gig worker, a simple smartwatch habit could land you in hot water during a tax audit. That's because fitness app users who track business miles might not be aware of the in-app limitations.

For instance, many free versions of distance-tracking apps cap the number of trips you can take, forcing you to record them later. But if you aren't logging your miles correctly at the time of the trip, the IRS can disallow your entire deduction under the contemporaneous record rule.

At the 2026 IRS business mileage rate of 72.5 cents per mile, those trips through Uber, DoorDash, real estate clients, and supply stores can quickly add up to a significant tax deduction.

By incorrectly recording miles, you could be leaving some serious cash on the table — or worse, raising an IRS audit red flag if you include inaccurate trips on your return.

Don't wait until tax season to discover your smartwatch logs are insufficient. Before you file your 2026 return, ensure your tracking meets these non-negotiable IRS standards.

IRS mileage rate and log requirements for 2026

The 2026 IRS mileage rate of 72.5 cents per mile has strict requirements for what constitutes a valid business mileage log. You must meet four specific data points for every single trip to be eligible for a deduction:

1. The date of the trip
2. The destination (address or city)
3. The business purpose (e.g., picking up an order for a delivery)
4. The total mileage logged

Additionally, to help support your claim to an IRS mileage deduction, you must follow these specific requirements:

• "Contemporaneous" logs. You must create your record at or near the time of your trip. ("Estimating" a log from memory or bank statements later is a major red flag for the IRS.)
• No commuting. Remember that driving from your home to your primary workplace (and back) is considered a personal expense and is not deductible. (For this reason, a Reddit user drives to a "central place in town" before starting their route.)
• Odometer readings. You should record your vehicle's odometer reading on January 1 and December 31 each year to establish the total distance driven for the year.

GPS 'dead zones', data gaps and bad reports — oh my!

Though many mileage apps offer "one-tap" tracking from a smartwatch, users should exercise caution when using them (pun intended). Not all convenient features meet the IRS's rigorous standards for a business expense deduction. For instance, GPS-based apps can:

• Lack specific "why" details. If you fail to categorize a trip in the app with a specific business purpose (e.g., dropped off a customer at 123 Main St.), the IRS might disallow the deduction.
• Have no exportable audit reports. Some free or "lite" versions of apps track distance but don't generate reports that might be helpful during an IRS audit. Paid versions of apps such as MileIQ or Stride are popular because they build these logs, but you must ensure you're using a version that exports full data.
• Experience technical "dead zones." GPS relies on satellite signals. In "concrete jungles" with high-rise buildings or rural dead zones, your smartwatch might lose the signal, resulting in inaccurate distance measurements or missed trips entirely.

To mitigate the risk of data gaps, look for mileage apps that offer offline functionality. Apps such as Timeero continue to track GPS coordinates even in "dead zones," syncing the data once your connection is restored.

Beyond live tracking, maintaining redundant digital backups of your logs is a critical — yet often overlooked — step. In the event of a smartwatch malfunction or a lost device, these backups can significantly bolster your contemporaneous records during an IRS inquiry.

Building an 'audit-proof' backup

GPS tracking is a powerful tool, but it shouldn't be your only line of defense in substantiating your IRS mileage deduction. Consider these two backup methods to supplement your smartwatch capabilities:

• The odometer snapshot. In addition to your mileage app, snap a photo of your odometer on January 1 and December 31. This helps ensure you aren't reporting business miles that exceed the number of possible miles in a given year.
• The "analog" backup. Although it feels old-fashioned, a simple notebook in your glovebox is still an IRS-sanctioned way to track mileage. If your smartwatch dies or hits a GPS "dead zone," a quick pen-and-paper entry ensures your contemporaneous log remains unbroken.

However, it's important to note that odometers can be inaccurate, as well, especially if you have worn tires, incorrect tire pressure or nonstandard tire sizes. Having two methods of recording each business trip promotes a complete record of your mileage.

The bottom line? Your smartwatch is a great tool, but like all tools, it can have flaws. If you use your watch to drive professionally and for personal fitness, the burden is on you to prove which specific miles were strictly for business. If your watch breaks, you might be out of luck.

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Gas prices rarely stay predictable for long. When fuel costs swing, many drivers start reconsidering their options at the dealership.

That shift is showing up in the electric vehicle market. After years of higher sticker prices, electric and hybrid vehicles are becoming more financially competitive with traditional gas-powered cars, especially in the used market.

A wave of lease returns, increased supply and steep depreciation has pushed many used EV prices down to levels similar to comparable gas vehicles. At the same time, buyers weighing the switch still need to consider insurance costs, charging access and long-term maintenance. Here’s what to know about how the costs compare today.

Why EV prices are suddenly closer to gas cars

Electric vehicles have historically carried a higher upfront price than comparable gas-powered cars. But that gap has narrowed significantly in the past two years.

One of the biggest drivers is depreciation. Many early EV models have lost value faster than traditional vehicles, partly because rapid improvements in battery technology have made older models less desirable.

At the same time, a surge of off-lease vehicles and growing inventories is expanding the used EV market. As more supply enters the market, prices have continued to fall.

According to recent market data reported by Reuters, used EV prices have dropped sharply in the past few years, helping push many models into price ranges comparable to similar gas-powered vehicles. Analysts expect the supply of used EVs to keep growing through 2026 as more leases expire and new models hit the road.

For buyers who previously found EVs out of reach, the used market is quickly becoming the most affordable entry point. Faster depreciation can benefit buyers but may affect resale value for current owners.

The used EV market is becoming an entry point for buyers

A few years ago, many EVs carried price tags well above $40,000. Today, some used models are appearing below $25,000, putting them in line with the cost of many used gas vehicles.

That price drop is attracting a broader group of buyers, particularly those who want to try electric driving without paying new-car prices.

The lower purchase price can also help offset other ownership costs that sometimes run higher for EVs, such as insurance premiums.

Insurance can still cost more for EVs

While purchase prices are falling, insurance remains one area in which EV owners might pay more.

Industry estimates suggest that EV insurance premiums are typically about 10% to 20% higher than comparable gas vehicles. Some studies have even found that some EV drivers pay nearly 49% more for insurance coverage.

A major reason is repair costs. EV batteries and specialized parts can be expensive to replace, and many repair shops still lack experience servicing electric vehicles. Even relatively minor accidents can result in higher repair bills if battery systems or specialized electronics are affected.

As the EV market matures and repair networks expand, those costs might gradually decline, but for now, they remain a factor in overall ownership costs.

Use the tool below to explore and compare some of today's top auto insurance offers:

Charging vs gasoline: Where EVs save money

Where electric vehicles often gain a financial advantage is fuel. Drivers who charge their vehicles at home typically spend about 5 cents to 8 cents per mile on electricity, depending on local utility rates and vehicle efficiency.

Gas-powered vehicles, by comparison, often cost around 8 cents to 15 cents per mile to fuel, depending on fuel prices and the vehicle's fuel efficiency.

Over several years of driving, those differences can add up to significant savings. For drivers with long commutes or high annual mileage, the fuel savings alone might total thousands of dollars. However, drivers who rely heavily on public fast chargers might see smaller savings, since public charging can cost more than home electricity.

Here’s how fuel costs compare for a typical driver over the course of a month and a year:

The above estimates are based on the average miles driven per year, according to Kelley Blue Book. Monthly mileage is approximately 1,015 miles. Gas costs assume a national average of $3.86 per gallon and a vehicle averaging 30 miles per gallon.

Electric vehicle costs are based on an average household electricity rate of about 17 cents per kWh and a typical EV efficiency of three to four miles per kWh. Actual costs will vary based on fuel prices, electricity rates, vehicle efficiency and driving habits.

Maintenance costs are usually lower for EVs

Electric vehicles also tend to have lower routine maintenance costs. Unlike gas vehicles, EVs don't require oil changes, spark plugs or many of the engine-related services associated with internal combustion engines. With fewer moving parts, there are fewer components that can wear out.

Some estimates suggest EV maintenance costs can be roughly 30% to 40% lower over time.

Another advantage comes from regenerative braking, which helps recharge the battery while slowing the vehicle. This process reduces wear on traditional brake systems, often allowing brake pads to last longer than they would in gas vehicles.

The wildcard: Battery replacement and long-term ownership

One potential concern for buyers is battery replacement.

EV batteries can be expensive to replace, often ranging from about $5,000 to $15,000, depending on the vehicle model. However, manufacturers typically provide long warranties (often eight years or 100,000 miles) on battery systems.

Most EV owners never face battery replacement during a typical ownership period. Still, buyers considering long-term ownership might want to factor this possibility into their calculations. Battery technology also continues to improve, which could further reduce replacement costs over time.

Why hybrids might be the middle-ground option

For some drivers, hybrid vehicles offer a practical compromise. Hybrids still rely on gasoline engines but pair them with electric motors to improve fuel efficiency. That can translate into meaningful fuel savings without the need for charging infrastructure.

Because hybrids don't rely entirely on large battery systems, insurance and repair costs can sometimes be lower than those of fully electric vehicles.

For drivers without access to home charging or those who frequently take long road trips, hybrids can offer many of the efficiency benefits of electric-based driving while avoiding some of the logistical challenges.

EVs might finally compete on price, but ownership costs still vary

Electric vehicles are becoming more financially competitive than ever before, particularly in the used car market.

But the sticker price tells only part of the story. Insurance premiums, local electricity rates, driving habits and access to home charging can all affect the true cost of ownership. For many buyers, the most helpful approach is to compare five-year ownership costs, rather than focusing solely on the purchase price.

As EV inventories continue to grow and prices stabilize, more drivers might find that electric or hybrid vehicles finally fit both their lifestyle and their budget.

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You drive away from the dealership, elated that you bought your first electric vehicle. Six months later, you receive news that your car manufacturer won't make EVs anymore. Great; now what do you do with an orphaned EV?

This is the reality hitting the EV market now. While sales were robust in recent years, ABC News reported that EV sales were down 20% in January compared with December of last year. One reason for declining sales is that President Donald Trump eliminated the $7,500 EV tax credit as part of the One Big Beautiful Bill.

The EV industry is still young, and as with any young industry, there will be winners and losers. Some companies, such as Fisker and Lordstown Motors, have already left the market. Others, such as Lucid (LCID) and Rivian (RIVN), have been struggling in the stock market while still pushing forward.

With these things in mind, I'll cover what to do if you find yourself in this situation and any legal options available to you.

Will my car still work if the EV company disappears?

Yes, your EV will work. You can drive it as you normally would and use compatible charging stations. However, the quality of your drive could decline significantly.

The reason? EV vehicles offer "smart" car features to elevate your driving experience. This could include app connectivity, software updates to improve driving features and much more.

To access these updates, your car connects to the company's software. However, if that company shuts down, you won't have access to over-the-air software updates. The vehicle's proprietary remote diagnostics might stop functioning, making dealership-level troubleshooting impossible.

You also won't receive updates impacting all facets of your car's performance, from navigation to climate control to safety features such as collision alert.

While you can drive your vehicle in theory, the experience will be less than ideal. There's also another challenge you need to consider.

Repairs will be expensive and hard to come by

The biggest challenge impacting orphan cars is finding the right parts to fix them. Once the company shuts down, it might not manufacture parts anymore (unless required under court order), which creates high demand that'll spike the price of the remaining parts.

You might find third-party parts to fix any issues that arise. But you could also face a worse driving experience since the quality of aftermarket parts can vary wildly by manufacturer.

Your best bet if this happens is to find a reputable EV mechanic. They can help you find reliable parts on the market that'll work with your car. You could also sell your vehicle, but unless it has appeal on the collectors' market, you're likely going to lose a lot of money on the deal.

What other factors should I consider?

A big one is warranty coverage. The biggest risk is your EV's battery. Manufacturers have warranties covering your car's battery for 100,000 miles or eight years, whichever comes first. Starting in 2027, the Environmental Protection Agency will require all U.S. EV manufacturers to meet this warranty minimum.

If your manufacturer files for bankruptcy, they likely won't honor warranties. If you need to replace your EV's battery, you could face a sizable bill. MotorTrend found battery prices could vary from a few thousand to $15,500, depending on its size.

This doesn't mean you don't have any legal recourse. If the company still exists, you can sue them under the Magnuson-Moss Warranty Act for failing to honor the warranty. You can also pursue warranty rights through your state's lemon laws or file a complaint with your state's attorney general's office.

Can I sell an orphaned EV?

If you paid for the car in cash or financed it and paid off the loan, you can sell your EV. However, know that because it won't have regular software updates, and repairs will be more expensive due to a lack of parts, the fair market value of your car might plummet.

If you're under a lease, you still must maintain the same contractual terms with the financing company. Sometimes, finance companies might offer a reduced buyout, since the market value of your car will be lower.

If your manufacturer closes and you have a lease, contact the financing company to explore which options they have available to you.

Ways to avoid an orphan EV

There are a few steps you can take to lessen your risk, such as:

• Research brand reliability: Use companies with a commitment to producing quality EVs and continued investment in future EV technology.
• Find a popular model: Manufacturers are not quick to pull a high-selling model from their portfolio. Find an EV with strong sales, such as the Tesla Model Y or the Chevrolet Equinox EV.
• Is the tech current?: Models featuring outdated charging technology such as CHAdeMO are being phased out in favor of vehicles using NACS or CCS. If a manufacturer continues to use older tech, it can be an indication that they might consider leaving the market as they're devoting fewer financial resources.

Ultimately, EVs are a smart bet if you do your homework. You'll lower your carbon footprint, have access to some of the newest tech features for cars and you won't have to contend with rising gas prices.

While there is a risk of more EV companies going under, going with a reliable brand can prevent this and all the headaches associated with owning an orphaned EV from happening.

If you plan to buy one, review the insurance prices of the models you're considering first. That way, you don't receive a surprise when you call your carrier. If you want to explore cheaper options, use this Bankrate tool to compare rates fast:

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If rising grocery prices and housing costs weren't enough, U.S. consumers can now add soaring gas prices to the list of expenses that are straining their wallets. On March 13, the price per gallon surged to $3.63, according to AAA. That's up more than 23% from the $2.94 per gallon Americans were paying just one month ago. It's also nearly 18% higher than the cost of gas this same time last year.

While gas prices typically begin to spike in spring and summer, the dramatic jump in the cost to fill up your tank this year has been influenced by the recent conflict with Iran. About 20% of the global oil supply needs to pass through the Strait of Hormuz to reach its final destination. That supply route has ground to a halt since the conflict started and there are few alternatives for transporting the oil via any other routes.

As a result, according to Kiplinger's energy outlook, the national average could push as high as $4, depending on how long the conflict drags on. While the national average sits at $3.63 right now, some states are paying significantly more than that, while other states are paying far less. And the impact varies across the country, with prices jumping as much as 30% in some states and barely budging in others. So, if you've been facing sticker shock at the pump, here's a look at which Americans are paying the most for gas right now.

Which states have the highest gas prices right now?

Currently, the states that typically have higher gas prices, regardless of geopolitical events, continue to pay the most for gas. As of March 13, California leads the pack with an average price of $5.41 per gallon.

While Californians already pay above-average prices to fill their tanks, that price still represents a 79-cent price hike since January. The state has also witnessed one of the largest price jumps since January 20.

Californians are the only ones paying above $5 per gallon right now, but other states are still feeling the pinch. Here are the top five states where gas prices are highest this spring:

These 5 states saw gas prices jump the most

Drivers in some historically lower cost states are being hit even harder than the west coast. They may not be paying as much as Californians and Washingtonians, but prices have shot up so fast over the past couple of months that it feels like a bigger hit to the wallet.

In Arizona, for example, you could fill up for just $3.17 per gallon on average on January 20. By March 13, that price had soared to $4.10. That's nearly 30% per gallon in a matter of weeks.

Other states have seen similar double-digit inflation at the pump. Here are the five states that have seen the biggest price hikes since January 20:

The cheapest states for gas

At the same time that states on the West Coast see prices surge well above $4 per gallon, states throughout the Midwest are still enjoying below-average costs for gas.

In Kansas, for example, regular unleaded averages just $3.07 as of March 13. That's over 50 cents below the national average.

Here are the five states that are paying the least for gas right now:

As you can see, despite the below average price tag, most of these states where gas is cheapest are still seeing double digit price jumps since January 20.

Why gas prices vary so much by state

Comparing prices at the pump across the United States reveals just how widely costs vary from one state to another. The difference between the cheapest state (Kansas) and the most expensive state (California) is well over $2.

What causes dramatic price differences like these? There are a lot of factors. For one, gas taxes vary widely between states and some states (like California) have much stricter environmental standards, making the cost of compliance more expensive compared to a less strict state. That includes special fuel blend requirements that are designed to reduce air pollution but also cost more to produce.

Beyond varying tax and legal landscapes, gas prices are also impacted by logistical factors. States like Oklahoma are located closer to the refineries and pipelines that pump out fuel so they're paying less to transport gasoline from the producer to the station where drivers fill up.

What could happen to gas prices next?

Unfortunately for drivers, gas prices are likely to keep climbing in the short term. The Iran conflict has thrown the global supply chain into doubt and resuming normal traffic through the Persian Gulf won't be able to happen until it ends – and even then, it will take a few weeks after the war ends to resume normal traffic.

It's not just the conflict that drivers need to worry about, either. The U.S. is at the cusp of peak fuel demand, with spring break kicking off months of increased travel.

With that said, the U.S. Energy Secretary announced the release of 172 million barrels of oil from the nation's strategic reserves earlier this week. Slated to be released over the next four months, the reserves are meant to help curb rising prices.

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Car insurance rates have been soaring since the pandemic. But now, some drivers insured by State Farm could soon receive dividend checks, a share of the company’s profits, tied to those higher premiums. The news comes as loyalty in the insurance industry declines in response to those surging rates.

In 2025, the number of customers who re-shopped car insurance hit a record high of 57%, according to a J.D. Power analysis. More concerning for insurance providers is that rates of switching rose even among customers thought to be the most likely to stay put: those who bundle multiple policies with one insurer.

With customers more willing to jump ship for a better deal, insurance companies are finding ways to lower rates, offer discounts and, in State Farm's case, hand out cash to existing customers. Here's everything we know so far about the dividend checks, including eligibility criteria and payment amounts.

Dividend checks and rate cuts coming for millions of State Farm customers

In February, State Farm announced $5 billion total in cash back payments to car insurance policyholders, the largest dividend payout to customers in the company's history. The exact dollar amount each eligible customer will get will vary, but State Farm says the average check will be $100 per vehicle.

The major insurance provider is in a good position to offer these payouts. Consistently ranking as one of the most popular car insurance companies, State Farm reported an underwriting gain in 2025 of $1.5 billion, after reporting losses three years in a row prior to last year.

The gain came despite losses in its home insurance segment and was driven almost entirely by growth in car insurance policies.

Alongside dividend checks going out to customers, the company also announced lower premiums. The rate cuts announced will result in $4.6 billion in savings nationwide, with each eligible customer seeing an average of 10% lower premiums. Still, it's always worth shopping for car insurance ahead of each renewal to make sure you're getting the best deal available for the coverage you need.

Even with a 10% rate cut at State Farm, you still might find better rates elsewhere, especially as insurers compete on price in a market in which customers are more willing than ever to switch. Even if you don't find a better deal, there's no harm done by shopping around. In the worst-case scenario, taking a few minutes to compare quotes before renewing will confirm you're getting the best price for your car insurance.

Who is eligible for a dividend check from State Farm?

According to the statement released by State Farm, 49 million insured vehicles qualify for the one-time payouts expected to arrive sometime this summer. As mentioned, the average payout will be $100 per car, but the exact amount you get depends on the state you're in and the amount you pay in premiums.

In Oklahoma, for example, eligible customers are those who have an active private passenger auto policy as of December 31, 2025. The dividend payment those customers will receive will amount to 10% of the premiums paid during a predetermined period, for an average of about $112 per car.

The company has not yet specified exactly how or when customers will get paid, beyond stating that payments will go out this summer. But a State Farm spokesperson told CBS that more details will be announced in the coming months and confirmed that the cash payments will not come in the form of a statement credit.

This article will be updated as more details come to light to make sure anyone eligible has the information they need to get their payout.

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In January, a Florida resident filed a class action lawsuit alleging that GEICO added two strangers to her car insurance policy as named drivers without her consent. The additions increased her premiums as a result.

The complaint filed last month alleges that many other drivers nationwide have experienced the same thing with GEICO and is now seeking refunds for all customers impacted by this practice.

For GEICO's part, the insurance company argues that it acted in full compliance with the terms of its car insurance policies. So, what exactly happened and how can you avoid ending up in a similar situation? Here's what we know so far.

What is the GEICO class action lawsuit about?

According to the complaint filed on January 28, GEICO used a third-party source to match licensed or permitted drivers to addresses. Based on that data, GEICO sent an email to the policyholder stating that another driver was associated with her home address. The email gave her 15 days to respond and noted that if there was no response, the driver would be added to her policy.

The email read, in part, “If this person is insured elsewhere and should not be listed on your policy, please contact us at the number below with the name of the insurer and the policy number.”

The problem? The policyholder says she had no idea who the person was. GEICO was effectively asking her to provide insurance information for someone she did not know.

In December of that same year, the same thing happened again, with another unknown driver added to her policy. In both cases, her premiums increased as a result of the added drivers.

According to the complaint, the policy does not allow GEICO to add unknown drivers to a customer’s car insurance policy and does not include any provision stating that silence — meaning a lack of response to the emails — can be treated as consent.

In a motion to dismiss filed in 2025 related to an earlier version of the case, GEICO argued that it followed standard practice and did not breach any specific provision of its policy. The policyholder did not respond to either email within the 15-day window and continued paying the higher premiums.

However, as the complaint notes, because car insurance is required in every state, canceling coverage immediately after a rate increase may not be a practical option.

Because the case is still in its early stages, it’s unclear who will ultimately be included in the class action lawsuit or how much any potential payout might be if the court rules in the plaintiff’s favor. The legal team is seeking to expand the case nationwide, alleging that similar issues have affected customers outside of Florida.

If you’ve experienced a similar situation, you may want to monitor the case or consult an attorney to better understand your legal options.

What can you do to avoid this situation?

Something similar happened to me with a different insurance company a few years ago. The company found my siblings' information and sent me a notice that they would be added to my policy unless I could prove that they didn't live at my address.

While they weren't strangers as they are in this case, my siblings live in different states and already have their own car insurance. Still, the burden of proof was on me if I didn't want to pay extra to cover drivers who did not live at my address.

So, what's your best course of action to avoid ending up in a similar situation? Here are a few tips:

• Check your insurance policy regularly to make sure the details, including the drivers listed, are accurate. This is one of many reasons an annual insurance review is so important.
• If you receive a notice stating that additional drivers are associated with your address, contact your insurance provider directly using the phone number or website listed on your policy. Even if you don’t have documentation yet, ask what information would be required to resolve the issue.
• If you know the drivers, reach out to them and ask for the information or documents requested by your insurance.
• If you don’t recognize the drivers, contact your insurer and ask what proof is needed to remove them.
• Even if you never receive a notice like this, it’s important to keep an eye on your monthly spending. If your car insurance is set up on autopay, you could miss a premium increase because the payment is automatically deducted.

Whether the Florida courts determine that GEICO breached its contract or not, you certainly shouldn't be paying extra to cover drivers you don't know. But the outcome of this lawsuit could determine whether or not it's your responsibility to make sure the drivers listed on your policy are correct.

In the meantime, consider shopping for new car insurance after resolving the issue or before your next renewal. Comparing quotes can help ensure you’re not overpaying, especially if your premium increased unexpectedly. If you decide to switch, you can provide feedback to the insurance company that did this, explaining precisely why they lost your business.

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Buying a new vehicle is a major investment, and the cost of new vehicles has soared in recent years. According to Kelley Blue Book, the average price of a new car reached a record $50,326 in December 2025, making any potential savings on a vehicle purchase even more valuable.

Costco may be known for offering great deals on groceries, appliances and other items, but the Costco Auto Program could help you save on a new or pre-owned vehicle purchase or lease. While the program provides a more streamlined buying experience, it doesn't always guarantee the lowest possible price.

The program offers several additional perks for members, from discounts on parts and service to discounts on RVs. Taking a closer look at how the program works and what these benefits include can help you decide whether it's a good fit for your next vehicle purchase.

What is the Costco Auto Program?

Costco doesn't sell vehicles directly. Instead, it connects members with a network of participating dealerships that offer prearranged pricing. The Costco Auto Program, which has been around since 1989, is free to use with an active Costco membership.

Through the program, members can shop for new vehicles, electric vehicles and certified pre-owned models, all with pricing negotiated in advance through participating dealers.

How the Costco Auto Program works

Once you decide to use the program, the process is fairly straightforward:

• Visit the Costco Auto Program website. To get started, you’ll search the auto program website for the type of vehicle you want to buy or lease. You'll enter your zip code and pick out the vehicle you want.
• Get connected with an approved dealership. After selecting your car, you'll enter your contact information and Costco member number. From there, Costco will connect you with an authorized dealer. That dealer will contact you to make an appointment.
• Review price information. During your appointment, you'll receive prearranged Costco member pricing on the vehicle.
• Complete your purchase. You can choose to complete the purchase or lease, or you can decide not to buy the vehicle after seeing the prearranged price.

Costco vets and trains participating dealerships, with a focus on customer service, to help ensure a more consistent and lower-pressure buying experience. However, Costco doesn't sell vehicles or negotiate individual transactions. You'll complete the purchase directly with the dealership.

Pricing is negotiated in advance between Costco and participating dealers, but it isn’t displayed online. Instead, you'll need to visit or connect with the dealer to receive your prearranged Costco member price and decide whether to move forward with the purchase.

Dealerships pay a fee to participate in the program, which helps support and maintain the service.

How much money can you save?

The amount you can save through the Costco Auto Program varies based on the vehicle model, demand and your location. Some estimates suggest average savings of around $1,000 on a new vehicle purchase, though actual discounts can be higher or lower depending on market conditions.

In some cases, limited-time manufacturer incentives can increase your savings when combined with Costco’s prearranged pricing. For example, the current promotion offers eligible Costco members up to $1,250 on a new Chevrolet Traverse for Executive Members ($1,000 for non-Executive Members), plus any additional incentives they qualified for.

These types of promotions can increase the overall value of the program, especially if you're flexible on timing your purchase.

Additional perks beyond vehicle pricing

The Costco Auto Program also includes perks beyond vehicle pricing that can add ongoing value. Member-only incentives and limited-time promotions can be stacked on top of the prearranged Costco price, potentially increasing your total savings at the time of purchase or lease.

In addition, members receive 15% off parts, service and accessories at participating service centers. Savings are capped at $500 per visit, but these discounts can help reduce maintenance and ownership costs over time, especially for routine services or larger repairs.

Pros of using the Costco Auto Program

Here are a few reasons to consider using the Costco Auto Program:

• Simple purchase process: With the program, you can get a prearranged price on your vehicle. There's no haggling required, and the purchase is simple and straightforward.
• Access to vetted dealerships: Costco has vetted dealerships for customer service, which can give you peace of mind as you shop.
• Predictable pricing: Costco's prearranged pricing is predictable. It typically won't exceed the vehicle's MSRP and may help you save compared to what you would pay at another dealership.
• Reduced sales pressure: Compared to traditional dealerships, the Costco Auto Program offers a lower-pressure buying or leasing experience.

Cons and limitations buyers should know

While there's a lot to like about the Costco Auto Program, it does come with some drawbacks:

• Must use participating dealers: If you want to use the program, then you must buy a vehicle through a participating dealer. That might mean you could miss out on decent deals offered by dealers that don't participate in the program.
• Pricing isn't quoted remotely: In most cases, the preauthorized pricing isn't quoted remotely, and you'll need to make an appointment with a dealer to access that pricing.
• Negotiators could find better deals elsewhere: If you're a skilled negotiator, you might be able to find a better deal on that same vehicle by using a traditional approach and negotiating a vehicle price down, especially if you have an older vehicle to trade in.
• You might face add-ons or extras: Dealers in the Costco program might still offer add-ons or extras. These options can quickly increase your preauthorized price.
• Costco membership required: To use the Costco Auto Program, you’ll need an active Costco membership.

Who the Costco Auto Program works best for

The Costco Auto Program tends to work best for buyers who value simplicity and a more predictable experience. If you dislike negotiating, the prearranged pricing can take much of the stress out of the process.

First-time car buyers may also appreciate the straightforward, guided approach, while busy shoppers can benefit from being able to start the process online and complete a more streamlined transaction at the dealership.

The program can be especially useful for high-demand vehicles, where discounts below MSRP are harder to find. In those cases, even a modest prearranged discount or added incentive can provide value.

That said, the program may not be the best fit for every buyer. If your top priority is getting the lowest possible price and you are willing to visit multiple dealerships, negotiate or use competing offers as leverage, you may be able to find a better deal on your own.

Tips to get the most value from the Costco Auto Program

You can get the most value from the Costco Auto Program if you're willing to do a little extra research:

• Compare Costco pricing with outside quotes: In some cases, you might find the best pricing through the Costco program, but that won't necessarily always be the case. Do some comparison shopping and see if you could save more on the same vehicle at a dealership outside of the program.
• Stack manufacturer rebates and financing incentives: Research available manufacturer rebates and financing incentives. You can stack these on top of the Costco pricing for additional savings.
• Research dealer add-ons: Dealer add-ons, like extended warranties and paint and fabric protection, may seem like a good investment in your vehicle, but they can quickly increase the price. Research these add-ons to determine which are really worth the investment for your situation.
• Verify inventory availability: Before you visit a participating Costco dealership, verify that the vehicle(s) you're interested in are available. Doing so can ensure that you'll be able to test drive the vehicles and complete a purchase if you decide to do so.

Is Costco's Auto Program worth it?

The Costco Auto Program offers convenience and predictable pricing, but it doesn’t guarantee the lowest possible deal in every situation. If you're in the market for a new car, consider how much you value a simpler buying experience versus the potential savings of negotiating on your own.

It can be worth comparing the Costco price with quotes from other dealerships, as well as factoring in available incentives and your willingness to negotiate. Weighing these trade-offs can help you decide whether the program is the right fit for your budget and buying style.

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You've probably heard of no-fault states in the context of car insurance. But if you don't live in one of the 13 states known to have that system, you probably think those rules don't apply to you. Depending on which state you live in, you could be wrong.

The distinction between a no-fault state and an at-fault state is far from black and white. That's especially true in the four states below that still have some tricky no-fault car insurance laws you need to know about.

If you don't brush up on the rules, you could end up paying extra for insurance you don't really need. To keep your coverage levels and premiums right where you want them, here's what you need to know if you live in or are moving to what you thought was a straightforward at-fault state.

What’s the difference between at-fault and no-fault car insurance?

At-fault (also called tort) states require the driver who caused the crash to pay for injuries and damages through their insurance. In these states, drivers typically file claims against the at-fault driver’s liability coverage and might sue for additional damages if needed.

No-fault states, on the other hand, require drivers to carry personal injury protection (PIP). After an accident, drivers file injury claims with their own insurance first, regardless of who caused the crash. Lawsuits are usually limited unless injuries meet certain thresholds.

Some states blur the lines between these systems by requiring insurers to offer or include PIP coverage even though they operate primarily as at-fault states.

States with an at-fault system but some tricky no-fault insurance laws

Here’s how each state’s hybrid rules work in practice.

Arkansas

Arkansas has a tort (or at-fault) system, but still requires insurers to offer you personal injury protection coverage. That means when you're shopping for car insurance, the quotes you see will include that coverage unless you actively opt out of it.

PIP can come in handy because it usually means a quicker payout than waiting for fault to be established before filing against the at-fault driver’s insurer.

However, note that PIP is primarily for medical expenses and lost wages. If you have good health insurance, the medical expense side of that won't necessarily be an issue. As far as lost wages are concerned, it might not be worth filing a claim if you only miss a day or two of work. Workers with paid sick leave might not be eligible to claim lost wages at all.

If you do opt to keep the PIP coverage automatically included in your Arkansas car insurance policy, it's probably worth bumping it up above that $5,000 minimum to really make the coverage worthwhile.

Maryland

Like Arkansas, Maryland is a tort state that doesn't mandate drivers carry PIP, but does mandate insurance companies offer it. As with Arkansas, the coverage will automatically be included in any policy you buy in the state unless you opt out.

With a minimum coverage limit of just $2,500, this amount of PIP is less useful than the minimum in Arkansas. If you do want to keep the coverage, get quotes for higher coverage levels.

Remember that in a tort system like the one in Maryland, you have the right to sue the at-fault driver for your injuries, economic losses and your non-economic losses (pain and suffering).

That process will take longer than filing a PIP claim with your own insurer. But, if your PIP coverage is capped at $2,500, you might end up needing to go the lawsuit route anyway after an accident because that limit will be exhausted pretty quickly.

Another tricky thing about Maryland's insurance laws is the way the uninsured motorist coverage works. Technically, the minimums listed above are the minimums you need to maintain. But, if you were to increase your liability insurance, companies are required to automatically increase the uninsured motorist coverage to match that.

You have to opt out of matching coverage by asking to lower the uninsured motorist coverage back down to the minimum.

Oregon

Oregon is a special case. It's a tort state (meaning you reserve all your rights to sue the at-fault driver), but it also mandates a minimum level of PIP. You can't opt out of it like you can in the other states on this list.

What does that mean for drivers in an accident? Basically, you have two options if you aren't at fault. If you're not at fault, you can choose not to use your PIP coverage and file a claim with the at-fault driver's insurance for both bodily injuries and property damage.

Your second option, if you don't want to wait for fault to be determined, is to file a PIP claim with your own insurance right away, then file a claim with the at-fault driver's insurance afterward to recoup those costs. If there's still damages leftover after exhausting both your PIP coverage and the other driver's liability coverage, you can sue them for the rest.

Note that in Oregon, your insurance company can demand reimbursement on a PIP claim if the other driver's insurance ends up paying you. The company can do the same if you win a settlement in court.

Texas

Texas's car insurance laws operate a lot like Arkansas or Maryland. PIP isn't mandatory but the minimum coverage listed above is automatically included unless you opt out. The same goes for the uninsured motorist coverage. You must reject both coverages in writing if you don't want them included in your policy.

Otherwise, Texas is a tort state where drivers retain all rights to sue the at-fault party for injuries and damages.

If you haven’t compared auto insurance quotes recently, you could be paying more than necessary. Use the tool below to explore and compare some of today's top auto insurance offers, powered by Bankrate:

The difference between no-fault and at-fault isn't always clear

As the states above make clear, car insurance laws can vary widely and even broad distinctions aren't as clear cut as you might think. No-fault states are widely misunderstood by drivers. Even fewer drivers are aware that you might still be facing some confusing no-fault laws in states that are supposed to have an at-fault system.

Whether you've been in the same state for years or you just moved, it's worth taking the time to learn exactly how the laws work where you are so you can better understand your rights and requirements when it comes to buying car insurance and filing claims after an accident.

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In most states, car insurance follows an at-fault or tort system, in which the driver who caused an accident is responsible for paying for damages. But if you live in one of the 13 states below, you're subject to what's called a no-fault system.

In a no-fault system, it's not that no one is responsible for an accident. In most states, the driver who caused the accident is still on the hook for property damage. Instead, states with these laws handle injury claims differently and place restrictions on your right to sue the at-fault driver.

Beyond these high-level similarities, every no-fault state is unique in how their laws work. Some are "pure" no-fault states, while others have a confusing mix of no-fault and tort systems. Here's an overview of how no-fault car insurance laws work in every state that has them and what drivers need to know when shopping for car insurance in each one.

How no-fault car insurance works

Under a no-fault system, drivers generally file injury claims with their own insurance after an accident, regardless of who caused it. This coverage typically comes through personal injury protection (PIP), which helps pay for medical expenses and sometimes lost wages or other injury-related economic losses.

Property damage, however, is usually still handled through the at-fault driver’s insurance.

Another key difference is lawsuits. In many no-fault states, you can only sue the at-fault driver if your injuries meet certain legal thresholds, such as exceeding a dollar amount or involving serious injury.

Unless noted otherwise, no-fault laws apply only to bodily injury claims. Property damage typically still follows fault rules.

States with no-fault car insurance systems

Delaware

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $15,000 per person / $30,000 per accident
• When can you sue the at-fault driver? No restrictions on your right to sue

Delaware shows why no-fault laws can be confusing. The state requires drivers to carry PIP coverage, but it does not limit your ability to sue an at-fault driver.

After an accident, your own PIP coverage pays medical expenses and certain injury-related costs regardless of who caused the crash. However, you can still file a lawsuit against the at-fault driver for additional damages, including pain and suffering, without meeting an injury or dollar threshold.

The main restriction is that you can;t recover expenses already paid through your PIP coverage. For example, if your medical bills total $20,000 and your PIP policy covers $15,000, you could only pursue the at-fault driver for the remaining $5,000.

Florida

• Liability insurance required: Property damage only
• Minimum personal injury protection (PIP): $10,000
• When can you sue the at-fault driver? When medical expenses or lost income exceed PIP limits, or injuries involve permanent injury, significant disfigurement, loss of a major bodily function or death

Florida is the only state where you're not required to carry bodily injury liability insurance. Because of this, your PIP coverage will definitely come in handy, as there's a good chance the other driver doesn't have any liability insurance to cover your injuries.

After an accident, your PIP policy covers medical expenses and certain lost wages, regardless of who caused the crash. If your costs exceed your PIP limits — or your injuries meet Florida’s serious injury threshold — you might file a claim against the at-fault driver.

Because some Florida drivers carry little or no bodily injury liability coverage, many experts recommend purchasing higher PIP limits and adding uninsured or underinsured motorist coverage to help protect against out-of-pocket expenses.

Florida still follows an at-fault system for vehicle damage. Drivers typically file property damage claims through the at-fault driver’s insurance to cover repair costs.

Hawaii

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $10,000
• When can you sue the at-fault driver? When medical expenses or lost income exceed $5,000, or injuries involve permanent loss of a body part or function, serious disfigurement or death

Hawaii's no-fault system is typical of most no-fault states. You still need to carry liability insurance. But a driver's right to sue the at-fault party is limited to accidents where the injuries or damages exceed a certain threshold.

After an accident, PIP typically covers medical expenses and certain lost income regardless of fault. Property damage, however, still follows fault rules, meaning drivers usually file claims through the at-fault driver’s insurance or rely on their own collision coverage.

Kansas

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): Structured benefits (see breakdown below)
• When can you sue the at-fault driver? When medical expenses exceed $2,000, or injuries involve permanent loss of a body part, disfigurement, certain fractures, permanent injury or death

Kansas follows a traditional no-fault structure but stands out because of how its PIP benefits are divided into specific coverage categories rather than a single coverage limit.

Drivers must carry liability insurance and PIP coverage, and lawsuits against the at-fault driver are limited unless injuries exceed Kansas’ legal thresholds.

Kansas requires minimum PIP benefits that include:

• $4,500/person for medical expenses
• $900/month for disability/loss of income (for one year)
• $25/day for substitution benefits
• $2,000 for funeral expenses
• $4,500 for rehabilitation or re-employment training
• $900/month for disability/loss of income (for one year) for survivors
• $25/day for substitution benefits for survivors

Because benefits are divided into separate categories, drivers can exhaust certain coverage types even if they have not reached their total available PIP benefits.

Kansas drivers should review how their PIP benefits are allocated, since individual coverage categories can run out before total coverage is exhausted.

Kentucky

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $10,000 (automatic unless rejected)
• When can you sue the at-fault driver? When medical expenses exceed $1,000 or injuries involve broken bones, permanent injury, disfigurement or death — unless you opt out of no-fault coverage

Kentucky is a “choice no-fault” state, meaning PIP coverage is automatically included in car insurance policies unless drivers formally opt out.

Drivers who keep PIP coverage must meet the state’s injury or expense thresholds before suing an at-fault driver. However, drivers who file a no-fault rejection form with the state can opt out of PIP and regain full rights to sue without meeting those thresholds.

Even drivers who opt out must still carry “guest PIP,” which provides injury protection for passengers and pedestrians involved in an accident. Opting out of Kentucky’s no-fault system can expand your legal rights but might increase financial risk after an accident.

Massachusetts

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $8,000
• When can you sue the at-fault driver? When medical expenses exceed $2,000 or injuries involve permanent disfigurement, bone fractures, loss of a body part, loss of vision or hearing or death

Massachusetts follows a relatively straightforward no-fault system. Drivers must carry liability insurance and PIP coverage, which pays medical expenses and certain injury-related costs regardless of who caused the accident.

Drivers can file a lawsuit against the at-fault party when injuries meet Massachusetts’ legal thresholds or medical expenses exceed $2,000. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.

Because Massachusetts has a relatively low threshold for lawsuits, drivers might want to consider carrying higher bodily injury liability limits to help protect against potential claims.

Michigan

• Liability insurance required: Bodily injury and property damage (with special rules)
• Minimum personal injury protection (PIP): Historically unlimited, though drivers may now choose lower limits if eligible
• When can you sue the at-fault driver? For excess economic losses after PIP is exhausted, or for pain and suffering if injuries involve serious impairment, permanent disfigurement or death

Michigan has one of the most distinctive and complex no-fault systems in the country.

After an accident, drivers typically file claims through their own insurance for both medical expenses and economic losses, regardless of who caused the crash. Property damage claims between Michigan drivers are also largely handled through their own policies rather than the at-fault driver’s insurance.

Because Michigan historically required unlimited PIP coverage, most drivers are unlikely to exceed their medical coverage limits. Lawsuits are generally limited to cases involving serious injury, permanent disfigurement or death, although drivers might also pursue claims for economic losses that exceed their selected PIP coverage.

Michigan also handles vehicle damage differently than most states. Since PIP does not cover vehicle repairs and property damage claims against another Michigan driver are limited, collision coverage is especially important. The state offers three collision coverage options:

• Limited collision: Covers damage only if you are 50% or less at fault
• Standard collision: Covers repairs regardless of fault
• Broad form collision: Covers repairs regardless of fault and waives your deductible if you are less than 50% at fault

Michigan also allows drivers to file a “mini-tort” claim to recover part of their collision deductible from the at-fault driver.

Recent reforms allow drivers to choose lower PIP coverage limits, which can reduce premiums. However, drivers selecting coverage below $250,000 must meet certain eligibility requirements, such as qualifying health coverage through programs such as Medicare or Medicaid.

Michigan drivers rely heavily on their own insurance after accidents, making collision and PIP coverage choices especially important.

Minnesota

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $40,000 ($20,000 medical / $20,000 non-medical)
• When can you sue the at-fault driver? When medical expenses exceed $4,000 or injuries involve permanent disfigurement, disability lasting 60 days or more, dismemberment or death

Minnesota follows a traditional no-fault insurance system. Drivers must carry liability insurance and PIP coverage, which pays medical expenses and certain economic losses regardless of who caused the accident.

Minnesota requires at least $40,000 in PIP coverage, split evenly between medical expenses and non-medical costs such as lost wages or replacement services. Drivers can file a lawsuit against the at-fault party if injuries exceed the state’s legal thresholds or medical expenses surpass $4,000. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.

Minnesota also requires out-of-state drivers to carry PIP coverage while operating a vehicle in the state. Many insurers automatically adjust coverage to meet Minnesota’s requirements, but drivers should confirm coverage before traveling.

New Jersey

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $15,000
• When can you sue the at-fault driver? Only for serious injuries such as loss of a body part, significant disfigurement, displaced fracture, loss of a fetus, permanent injury or death — unless you choose an unlimited right-to-sue policy

New Jersey is a choice no-fault state, but unlike Kentucky, drivers cannot opt out of PIP coverage. Instead, drivers choose between limiting or preserving their right to sue.

Most policies default to a limited-rights option, which restricts lawsuits against at-fault drivers unless injuries meet the state’s serious injury threshold. Drivers can choose an unlimited right-to-sue policy, which typically increases premiums but allows lawsuits without meeting those thresholds.

After an accident, PIP coverage pays medical expenses and certain injury-related costs regardless of fault. Property damage claims still follow fault rules and are usually handled through the at-fault driver’s insurance.

New York

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $50,000
• When can you sue the at-fault driver? When economic losses exceed $50,000 or injuries involve dismemberment, fracture, loss of a fetus, loss of use of a body part or function, inability to perform normal activities for at least 90 of the 180 days following the accident or death

New York follows a traditional no-fault system. Drivers must carry liability insurance and PIP coverage, which pays medical expenses and certain economic losses regardless of who caused the accident.

New York requires one of the higher minimum PIP coverage limits at $50,000. Drivers can file lawsuits against at-fault parties if injuries meet the state’s serious injury threshold or if economic losses exceed PIP coverage limits. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.

North Dakota

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $30,000
• When can you sue the at-fault driver? When medical expenses exceed $2,500 or injuries involve dismemberment, permanent disfigurement, disability lasting more than 60 days or death

North Dakota follows a traditional no-fault insurance system. Drivers must carry liability insurance, PIP coverage and uninsured/underinsured motorist coverage, making the state’s minimum insurance requirements more comprehensive than many others.

PIP coverage pays medical expenses and certain economic losses regardless of fault. Drivers can file lawsuits against at-fault parties if injuries meet North Dakota’s legal thresholds or medical expenses exceed $2,500. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.

Pennsylvania

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $5,000
• When can you sue the at-fault driver? For serious injuries such as permanent disfigurement, serious impairment or death — or if the at-fault driver was uninsured, intoxicated or driving an out-of-state vehicle, unless you choose full tort coverage

Pennsylvania is a choice no-fault state that gives drivers the option to choose between full tort and limited tort coverage when purchasing insurance.

Drivers who select limited tort coverage typically pay lower car insurance premiums but can only sue an at-fault driver if injuries meet Pennsylvania’s serious injury threshold or involve certain exceptions, such as accidents involving uninsured, intoxicated or out-of-state drivers.

Drivers who choose full tort coverage pay higher premiums but retain unrestricted rights to sue for damages after an accident.

Regardless of tort selection, drivers must carry PIP coverage, which pays medical expenses and certain economic losses regardless of fault. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.

Utah

• Liability insurance required: Bodily injury and property damage
• Minimum personal injury protection (PIP): $3,000
• When can you sue the at-fault driver? When medical expenses exceed $3,000 or injuries involve dismemberment, permanent disfigurement or death

Utah requires drivers to carry liability insurance and PIP coverage, but its minimum PIP requirement is among the lowest of any no-fault state.

Utah’s PIP coverage applies only to medical expenses by default. Drivers must purchase additional coverage if they want protection for lost wages or other economic losses.

Drivers can file lawsuits against at-fault parties if medical expenses exceed $3,000 or injuries meet Utah’s legal severity thresholds. Property damage claims still follow fault rules and are typically handled through the at-fault driver’s insurance.

No-fault insurance is often misunderstood, so it's worth knowing your state's laws

As you can see from the variation in laws from one no-fault state to the next and even a few at-fault states, no-fault insurance can mean a lot of different things. What it (almost) never means is that you can't file a claim with the at-fault driver's insurance after an accident.

It's worth taking a closer look at how the system in your state works so you know exactly what your options and your rights are if you get into a car accident in your state.

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Every time your car insurance is up for renewal, you're faced with the decision of where to set your car insurance deductible. If you raise it up a bit, you could save on car insurance premiums each month. If you lower it, you could ensure that an accident won't completely wipe out your savings or, worse, push you into debt.

But, how high a car insurance deductible is too high? How low is too low? As with most personal finance questions, there's no one right answer. That's why rules of thumb like the one-month car insurance deductible rule can be a useful way to ballpark the right amount for your budget.

How does the one-month rule for setting your deductible work, and is it a good rule for every driver? Here's what you need to know as you shop for car insurance.

What is the one-month car insurance deductible rule?

The one-month rule for setting your car insurance deductible argues that you should choose the amount based on how much you put in savings in one month. That way, if you get in an accident, you would simply have to spend your monthly savings on the repairs instead of stashing it in, say, your high-yield savings account.

In that scenario, the savings you've built up until then will remain untouched, and you'll be back to building it up again by the next month.

This is a good idea that would reduce the risk of a car-related emergency derailing your financial goals for longer than one month. And, for those who put away a good amount each month, it's an easy rule of thumb to balance the cost of car insurance with the financial risks of getting in an accident.

What if you aren't saving much (or anything) each month?

The one-month rule is a realistic rule of thumb for many drivers. But it doesn't quite work for those who aren't setting anything aside in savings each month – or not enough to meet even the lowest available deductible. For example, if you've retired, you typically switch from saving to spending what you've worked so hard to save.

Whether you're living on a fixed income or paycheck-to-paycheck, in these cases, the one-month rule isn't going to work for you. So, how should you choose a car insurance deductible?

For most in these scenarios, the answer is likely to push the deductible as close to the lowest available one as you can while still being able to afford the premium. This will make your monthly bill a little more expensive, but also make your expenses more predictable.

For retirees in particular, how much that predictability is worth depends on how confident you are in your savings. Are you already withdrawing the maximum your savings can bear and worried you might run out? Then, you definitely want to lower that deductible as much as possible to reduce the risk of an emergency knocking you off track.

On the other hand, if your retirement fund is healthy and you've padded your monthly budget with plenty of extra for nonessentials like travel and entertainment, you can instead set your deductible at, say, one month's worth of nonessential spending. That way, in the worst-case scenario, an accident will just mean one month of skipping out on your usual fun or travel plans.

Should your deductible be lower for luxury or collector cars?

Your car model does impact your premium, but should it impact your deductible, too? Not necessarily. The premiums for luxury, exotic or classic car insurance are already going to be higher than they are for a less valuable ride. So, the amount you're saving by raising your deductible from, say, $500 to $1,000, might seem negligible.

At the same time, if you drive a high-end or specialty car like this, you've likely already budgeted for higher repair and maintenance costs. And, if you've been restoring a collector car yourself, you're probably handy enough to take care of some of the needed repairs on your own.

With all of that in mind, you may be able to stick to the one-month rule, or you may even be able to raise the deductible even higher, knowing that you've either got the cash or mechanical skill to cover the less costly repairs.

Choose a car insurance deductible that your budget can bear

The underlying idea with the one-month rule is that your car insurance deductible should be set at a number that won't derail your financial plans for an extended period of time. As you play around with the different deductibles available, think about how long it would take you to recover from an emergency at those different amounts.

If money is tight and even a $500 emergency would be a stretch, accept the higher premium to keep that deductible lower. If you've got a healthy emergency fund or plenty of wiggle room in your budget – even if it means skipping a couple of weekends out or postponing a vacation – go ahead and raise that deductible to enjoy lower car insurance rates.

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A major winter storm — named Winter Storm Fern — is forecast to sweep across much of the country this weekend, bringing a dangerous mix of heavy snow, ice and frigid temperatures from the South and Midwest into the Northeast.

Falling temperatures and storms like this can strain your vehicle’s battery, tires and fluids, potentially leading to breakdowns or costly repairs. Winter weather risks such as ice-covered roads and heavy snow also increase the chances of getting into an accident or needing to call for roadside assistance.

That’s why preparing your car for a winter storm can help reduce these risks, save you money and spare you needless headaches when harsh conditions arrive.

Do a winter maintenance check before the storm hits

Before the storm arrives this weekend, make sure your car is ready for cold temperatures and hazardous road conditions. Start by checking your battery to confirm it’s holding an adequate charge.

Many auto parts stores will test your battery for free in just a few minutes, and some will even come out to your car to do it. You can also look for warning signs at home, such as slow engine cranking, dim headlights or dashboard warning lights, which can indicate a failing battery. If the battery is weak or nearing the end of its life, replacing it now can help prevent a no-start situation when temperatures drop.

This is also a good time to check your vehicle’s fluids, including antifreeze, which protects your engine from freezing in very cold weather. Low or dirty fluids can increase the risk of overheating or mechanical problems during long or slow winter drives. Make sure you’re using a winter-grade windshield washer fluid as well, since summer blends can freeze and leave you without visibility when you need it most.

Check your tire pressure before the storm hits, since cold weather can cause pressure to drop and make it harder to control your vehicle on slick roads. Keeping your tires properly inflated can improve handling and reduce your risk of getting stuck. It’s also helpful to carry sand or cat litter in your trunk to provide traction if your tires are stuck in ice or snow. We’ll cover other must-have items for a winter emergency kit later in this story.

Need a new quote for car insurance? Use the tool below, powered by Bankrate, to explore and compare some of today's top car insurance offers:

Build a winter emergency car kit

Preparing your car for winter can help decrease the chance of an accident or breakdown, but if you do end up caught on the side of the road, having a winter emergency car kit can help keep you safe. Build a kit that includes essential items like :

• Ice scraper
• Snow brush
• Small shovel
• Jumper cables or car starter
• Roadside flares or reflective safety triangles
• Warm blankets
• Flashlight
• Snacks and water

Bonus tools, including sand or kitty litter for traction, a tow rope and an extra phone charger may also come in handy during emergencies.

Keep your gas tank at least half full throughout winter. Doing so can help prevent your fuel line from freezing and gives you a buffer if you’re stuck in traffic, forced to detour or need to keep the engine running to stay warm.

Simple daily habits that avoid costly problems

Some simple daily habits can increase your safety on the road during the winter, too:

• Completely clear your vehicle: Take the time to clear all snow and ice from your car before driving. Doing so can help you avoid fines and can improve your visibility.
• Slow down: Drive slowly when the roads are snowy or icy. Increase your following distance in winter conditions to reduce your risk of getting into a car accident.
• Check the forecast: Regularly check weather forecasts before you travel. Stay flexible and be willing to adjust your travel plans to avoid driving in severe storms.

How winter prep can save you money and keep you safe

Winter breakdowns and towing fees can get expensive quickly. According to CarParts.com, towing services average about $129 per trip, but costs can range from roughly $85 to more than $450 depending on your vehicle, location and how far you need to be towed. Add in emergency repairs, missed work or hotel stays during major storms, and the financial impact can climb even higher.

Accidents are even more costly. A single winter crash can lead to thousands of dollars in vehicle repairs — or a total loss — not to mention potential medical bills and higher insurance deductibles. Taking steps to prepare your car before a storm reduces the chances you’ll face those kinds of unexpected expenses.

Preventive maintenance can also pay off over the long term. Keeping your vehicle in good working order helps extend its lifespan and may reduce how often you need to file insurance claims. Since claims can lead to higher premiums at renewal, avoiding even one winter-related incident could save you money well beyond this season.

Just as important, preparing your car for winter provides peace of mind. Knowing your vehicle is ready for harsh conditions can help you avoid stressful roadside situations and keep you and your passengers safer when travel becomes unavoidable.

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When you buy a car, the salesperson is likely going to offer up a bunch of add-ons before you drive away with your new ride. Two of the most common add-ons are extended car warranties and mechanical breakdown insurance. Both forms of optional coverage promise to shield your finances from expensive surprise repairs.

But both also come with exclusions and restrictions that are important to know about before buying either.

As the cost of cars rise, you're left wrestling with the need to keep that up-front cost down while weighing the risk of costly repairs down the road. Here's what you need to know about mechanical breakdown insurance, how it compares to an extended car warranty and whether it makes sense to buy either one.

What is mechanical breakdown insurance?

Mechanical breakdown insurance is very similar to an extended car warranty. In the first three to five years, while your car is still under a standard warranty, it acts like supplemental protection to pay for covered repairs when your warranty won't. After that standard warranty expires, you can maintain mechanical breakdown insurance for a few years longer, and it will continue to cover a lot of the same things your warranty used to cover.

The insurance is usually sold as an add-on to your car insurance. But some insurers and financial institutions will offer it as a standalone policy. Here's how the coverage works for standard mechanical breakdown insurance:

• The insurance will cover breakdown-related repairs when your standard warranty fails to cover it or after your warranty expires.
• Coverage is usually limited to internal mechanical issues, not externally-caused damage. For example, weather-related damage would be excluded (for that, you need comprehensive insurance). But if the transmission suddenly fails or your air conditioner stops working – and the failure isn't related to an external cause or to misuse on your part – your mechanical breakdown insurance may cover it.
• Most policies come with a deductible, ranging from about $50 to $250 per covered repair.
• It excludes routine maintenance costs, damage related to normal wear and tear or damage that was caused by improper maintenance. Sometimes, other parts or components exclusions also apply.

The policy requirements will vary from one provider to the next, but in general, you have to meet the following criteria in order to get mechanical breakdown insurance:

• Your car must be new, usually under 15 months old and with fewer than 15,000 miles.
• You must be the first owner of the car.
• You can renew the policy annually, but most providers won't offer coverage once the car hits 100,000 miles or is more than seven years old.
• You will need to keep up with all recommended maintenance, including oil changes and tire rotations. Without records of regular service, the insurer may deny a claim, citing improper maintenance on your part.

How much does mechanical breakdown insurance cost?

On average, expect to pay around $100 per year for mechanical breakdown insurance. Rates will vary by your car's make and model, though. If your car is more expensive to repair, the coverage will be more expensive, too.

This makes mechanical breakdown insurance a cheaper alternative to an extended car warranty, which can run between $1,000 to $3,000 total for a warranty lasting three to five years. However, the insurance comes with a deductible, while warranties don't require you to pay anything at all for a covered repair.

Mechanical breakdown insurance vs extended car warranty

As mentioned above, mechanical breakdown insurance and extended car warranties are very similar in terms of what they cover. Both give car owners a way to extend the protection that a standard car warranty provides. Both cover many of the same kinds of repairs and carry very similar exclusions.

With that said, there are a few key differences to consider if you're trying to decide which one to buy:

• Mechanical breakdown insurance is usually cheaper per year. But plan to pay a deductible for any covered repairs.
• The insurance can usually be added on to your existing car insurance, meaning you can use the same claims process you would for an accident. But it also means you'll be locked in with your current provider for as long as you want to maintain the added coverage. That means you wouldn't have the flexibility to shop around and switch car insurance to keep your premiums low.
• It can be more comprehensive than some extended warranties, as it's less likely to exclude entire systems or components.
• You can use any licensed repair shop you choose with mechanical breakdown insurance. With a warranty, you're usually required to take your car to the dealer.
• Extended car warranties are less restrictive about who can buy them. You can wait until your standard warranty is about to expire to buy it, and you can even get an extended warranty on used cars. Neither of those is possible with mechanical breakdown insurance.
• Extended warranties may last longer than mechanical breakdown insurance or offer coverage for higher mileage cars.

In short, an extended warranty tends to cost a little more (though you can and should negotiate the price), but often means $0 out of pocket for a covered repair. Mechanical breakdown insurance is usually a lot cheaper, but you'll be on the hook for the deductible for any covered repair.

Both can be rendered useless if you don't meet strict criteria. Many of the same things that can trigger a warranty to be voided can result in your mechanical breakdown insurance claim being denied. That includes things like a lack of proper maintenance or making aftermarket modifications to the car.

Should you get mechanical breakdown insurance?

To decide if it's worth buying mechanical breakdown insurance at all, you'll need to do some math. Most owners will spend around $1,000 to $1,500 over the first five years of ownership on maintenance and repairs, according to Consumer Reports. After that, costs jump to about $4,000 to $5,000 spread over the next five years.

A lot of that money, especially in the first five years, is going toward routine maintenance that you would still be responsible for, even with mechanical breakdown insurance or an extended warranty.

Meanwhile, the average repair cost after a breakdown is about $218, according to a 2019 Agero analysis. Though that's likely a little higher now with inflation and tariffs, and costs can vary widely, depending on the cause of the breakdown. Still, that means you might be on the hook even for a covered repair if it costs less than your plan's deductible.

So, in order for mechanical breakdown insurance to pay off, the repair needs to be unrelated to normal wear and tear, on a car that is up to date on all of its routine maintenance, and the covered repair needs to be higher than your deductible.

If your car were to suffer a serious breakdown requiring an expensive repair within the time frame that your mechanical breakdown insurance was in effect, you could potentially save thousands. But the odds of that happening are pretty slim.

Cars under 10 years old are about half as likely to break down in any given year as older cars, according to AAA. Keeping up with routine maintenance further reduces that risk. And some of the most common repairs a car of any age will need – like battery or tire replacements – are usually excluded anyway.

There's a high chance you'll end up paying for coverage that expires before you can use it. You'd typically be better off just skipping the mechanical breakdown insurance and saving that cash in a high-yield savings account to pay for repairs as they come up.

With that said, more expensive cars might be an exception to the rule. If you have a luxury or imported car with expensive parts, even a minor repair can end up costing thousands.

The same is true for cars with more complex technology and components. In these cases, a mechanical breakdown insurance policy could pay off. But you still need to check your policy documents carefully to make sure those costlier parts aren't excluded.

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It’s early morning, and the sun is just peeking over the horizon as I consider my options for this morning’s drive.

The older cars are both midrepair, so I hop into my 1994 Mazda Miata. It doesn't seem antique to me, but at more than 30 years old, it qualifies as a classic for today’s drive.

After a quick engine check raises no red flags, I close the hood, climb in and hit the gas.

There's a chill in the air and fog on the San Francisco Bay, but the top is down. At this early hour, the roads are almost empty, so there's nothing to keep me from my destination: A private airport less than an hour north, where car nuts such as me will meet for a cup of coffee and a 100-mile drive before going on with our day.

In an era when the roads are increasingly filled with formless cars with the sex appeal (and to be fair, the reliability) of kitchen appliances, the vintage car hobby has lasting allure.

Driving a classic car, or just going to classic car events, has all the ingredients of a great retirement pursuit: Instant community, rich experiences in beautiful places, and maybe a way to make some money. Driving a vintage car can make running errands around town much more fun, as fellow drivers flash their headlights or give a thumbs-up as you pass.

How to get started as a classic car collector (or even just a spectator)

Classic car prices vary widely. It's possible to snag a classic vehicle for four figures if you're willing to do some repairs or live with cosmetic flaws. A much-sought-after Porsche 911 can fetch six figures, and Ferraris can easily command millions.

However, consider the expense of parts and labor before you buy. Many people will tell you, “The most expensive car is a cheap [insert exotic car brand here].”

Avoid the lure of a fixer-upper unless you know the car well and are an experienced mechanic. There are many cars that have a reputation for robustness (for example, Japanese cars from the 1980s through the 90s have aged into classic status), which can be important for a first-time buyer.

Buying online

Finding rare cars has never been easier, thanks to the internet. Sites such as Bring a Trailer, Cars & Bids and eBay Motors allow you to search for cars worldwide. If you grew up trying to imagine what cars looked like from the abbreviations in classified ads (such as "5SPD/PS/AC/MNRF"), you'll be pleased to find entire portfolios of photos and videos of each car.

Research the market trends and common faults of a particular model, and check the reputation of any seller you are considering. These sites will also help you arrange remote inspections and shipping directly to you (assuming you don’t relish the adventure of driving a classic cross-country, while blindly trusting the previous owner’s maintenance habits).

The car community

The internet made it easy to connect with groups of fellow enthusiasts for a drive or just to meet and check out each other’s cars. Most groups have a vibrant social media presence, and many organize automotive events from the all-encompassing to the exceedingly esoteric.

This morning’s “Breakfast Club Rally,” hosted by one of these groups, casts a wide net, is open to cars old and new and draws a turnout as impressive as the location.

Cars are parked nose-out on a runway with foggy grapevines in the distance. Interesting modifications are highlighted by an open hood or trunk.

I spy a rare Ferrari FF (a 650 HP two-door station wagon of which only 2,291 were made from 2011 to 2016) and a replica of the 1950s Porsche 550 James Dean died in (see below). As rare as both are, there are two of each on this morning’s drive.

What to look for in a classic car

You don't have to spend a fortune to participate. My humble Miata cost less than $2,000 and is hardly rare. “Blinking” the flip-up headlights delights young children, and discerning drivers appreciate the upgrades I have made to it.

My Miata has 50 horsepower less than a base Toyota Camry, but it's light, and on the curvy back roads on this rally, it can keep up with the Ferraris with five times the power.

Uniqueness often wins hearts and minds rather than list price or raw horsepower. Often, an excited crowd will form around a particularly wild homemade build or a scorned-in-its-time 70s econobox, while a mint supercar next to it will be ignored.

Before you buy: Storage, maintenance and insurance

Cars require a bit more space and upkeep than a coin or record collection. Original paint and chrome need to be protected from the elements, and devoted collectors rent extra space when they outgrow their home garages.

Automobile storage businesses are becoming popular in larger cities; they not only store cars but also keep batteries charged, perform routine maintenance and have them prepped for a weekend drive.

Insurance and registration can also be complex and expensive, but companies such as Hagerty provide collector insurance, and certain states have less expensive registration options for classics that aren’t driven regularly.

In certain states, passing emissions tests can be challenging, especially for modified vehicles, so it pays to be aware of local regulations. A hot-rodded car from Montana might be literally impossible to register in California, for instance.

Mechanically minded retirees can find that time spent making their cars faster, more reliable or just unique is as much fun as actually driving it, especially if they develop a man cave filled with stacks of tools and walls of automotive memorabilia.

But many (most?) drivers never turn a wrench, while professional mechanics provide services ranging from tune-ups to frame-up restorations. Don’t expect a 24-hour turnaround, as many of the best mechanics have long waiting lists.

It can be worth taking the time to find the right person who knows the idiosyncrasies of your particular car. Once-common skills such as fine-tuning carburetors are increasingly rare among younger mechanics, who are taught to diagnose problems with computer scanners rather than their ears, eyes and fingers.

Classic cars as investments

The car market is a fickle investment strategy. Some misers manage their garages like portfolios, buying low, selling high and putting as few miles as possible on their pampered trailer queens.

But not driving these cars defeats their intended purpose. Making a profit (after the costs of storage, insurance and upkeep) is a rarity unless you're lucky enough to find an undervalued car or put in a great deal of sweat equity in one.

If you find time behind the wheel or under the hood a chore, none of this will make sense. But if you consider the payback of community, accomplishment and adventure the car hobby provides, it might be a great investment in you, regardless of profit.

Car values have cooled recently after a pandemic bubble, as the workforce has returned to the office. If a dream car once seemed unattainable, and YOU aren't returning to the office, it might be worth checking on it. It could be your time to buy a classic.

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Car ownership has gotten a lot more expensive. From January 2020 to August 2025, ownership costs surged by 41%, according to an index from Navy Federal Credit Union. That compares with a 25% climb in overall consumer prices over the same period, based on the consumer price index.

Steep increases in auto insurance premiums following the COVID-19 pandemic have been a major contributor. Costs for auto repairs have swelled, too, up 15% year over year in August, according to CPI data. Tariffs of 25% on imported car parts are driving up repair costs, as are more-complex repairs for vehicles packed with advanced technology, such as sensors that assist with blind-spot monitoring or warn you when you drift out of your lane. After a crash, fixing damage to these systems can add up to 37.6% to repair costs, according to AAA.

To mitigate ballooning car ownership expenses, try making these moves.

Consider ownership costs when you choose a car

As you decide which model to buy, think beyond the purchase price. Picking a vehicle with solid fuel economy rather than a gas guzzler could save you hundreds of dollars a year. You can select vehicle models and compare their fuel economy and estimated annual fuel costs at the U.S. Department of Energy’s fueleconomy.gov (in the “Find & Compare Cars” section, click on “Compare Side-By-Side”).

Reliability ratings of car brands can help you determine the likelihood of a car needing frequent repairs. In its most recent assessment of vehicle dependability, which tracked problems in the first three years of car ownership, J.D. Power found that Lexus rated highest overall. Among mass-market brands, Buick, Mazda and Toyota topped the rankings.

With online calculators, you can assess a car’s overall ownership costs. The tool from automotive-research site Edmunds estimates a car model’s total five-year costs, including insurance, maintenance, repairs, fuel and other factors. At Kelley Blue Book, a vehicle valuation and research company, offers a tool that lets you do a side-by-side comparison of five-year costs for various models.

Manage the ongoing expenses

If you haven’t compared quotes on auto insurance policies in a while, it’s worth shopping around; you can gather quotes on sites such as Policygenius.com and TheZebra.com. Take advantage of any discounts you qualify for, such as for automatic bill payments or low annual mileage.

Stay on top of routine maintenance, such as oil changes and brake inspections, to help avoid costly repairs down the road. You may spend less at an independent garage or oil-change shop than at the dealership, according to Edmunds (although certain tasks, such as work on sophisticated electronic systems, are best performed at the dealer). Look for coupons or specials that offer discounts on maintenance services.

When you buy gas, use an app such as GasBuddy to check for the lowest prices at stations near you. Some credit cards provide extra rewards on fuel purchases. The Costco Anywhere Visa Card by Citi, available to Costco Wholesale members, offers 5% cash back on gas purchased at Costco and 4% on fuel you buy elsewhere (you’ll earn those rates on a combined $7,000 in annual fuel spending and 1% thereafter).

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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If you drive, chances are you’ve been buying cars your entire life. You already know the buying experience inside and out.

“At this stage of life, most of my clients just want everything to be convenient and hassle-free,” says Adam Rex, a financial planner with Cornerstone Financial Services in Virginia Beach. Unfortunately, the vehicle market has some new headaches thanks to supply chain issues, tariffs and changes in vehicle technology.

Whether you’re planning to buy soon or exploring options for the future, here’s what to know about purchasing a car today.

1. Prepare for sticker shock

The average price of a new car just hit over $50,000, according to Kelley Blue Book. “There were steep price increases after the COVID-19 pandemic, and prices remain at an elevated level,” says Chase Gardner, data insights manager at Insurify, an online car insurance quote marketplace.

2. Consider going for a 'budget' test drive

Given the skyrocketing prices, monthly payments have also gone up. You can get a feel for your expected loan payment using a website like Calculator.net.

Consider a budget “test drive,” says Rex. “For a few months, set aside what you expect to pay on the new car and see if it’s doable.” Don’t forget about adding money for insurance, registration and maintenance. At the end of the test, you’ll have extra cash for a down payment.

It’s especially important to plan ahead if you’ve recently retired on a fixed income and have a different household budget than when you were working. The number of people struggling and missing car payments is climbing quickly for consumers of all income levels because of high prices and interest rates. Avoid getting locked into something uncomfortable.

3. Leasing simplifies things

As always, when getting a new car, the question is whether to buy or lease. When you buy, payments start higher, and you’re responsible for more repairs and maintenance. But after you pay off the loan, payments stop. Plus, you can later sell the vehicle or trade it in.

Leasing is a long-term rental, so the payments never end. However, you can regularly replace your vehicle with a new model every few years at the end of each lease, and you don’t have to repair damage from normal wear and tear.

Given the tradeoffs, Rex finds leasing to be a more convenient fit for retirees, especially if they plan to continue driving for only a few years. “When it’s done, you just hand the vehicle back to the dealer. There’s no hassle of selling,” says Rex. Just be aware of any mileage caps and restrictions if you drive a lot. For snowbirds who go between New York and Florida every winter, leasing is probably not the right fit.

4. Weigh financing versus paying out of savings

If you’re going to buy, think about whether it could make sense to pay off the entire vehicle at once using your savings.

Paying up front means you don’t have an ongoing loan payment and won’t be charged interest. On the other hand, you no longer have the money to invest. If you make a lump sum withdrawal from a pre-tax traditional Individual Retirement Account or 401(k), the entire amount will be taxable, could push you into a higher bracket and create surcharges on your Medicare premiums.

Borrowers with strong credit scores (650+) today pay between 5% and 7% for a new car loan, while subprime borrowers face double-digit interest rates. “If your investments are earning more than your quoted loan rate, financing could make sense,” says Rex, the financial planner from Virginia Beach.

5. Your loan interest could be deductible

A new provision in the One Big Beautiful Bill Act allows taxpayers to deduct up to $10,000 per year in car-loan interest from 2025 through 2028 on new, U.S.-assembled vehicles. Used car purchases and leases don’t qualify.

You can claim this tax break even if you use the standard deduction, making it more accessible than deductions that require itemizing. If you paid off your home and no longer qualify for the mortgage interest deduction, this new tax break can help make up the difference. The loan interest deduction does phase out for individuals with a modified adjusted gross income over $100,000 and for married joint filers with an MAGI over $200,000.

6. Consider comfort and convenience

When researching and test-driving, think about whether a vehicle would make your life easier and keep you safe on the road. “For most retirees, the best vehicle choice is a small SUV or midsize sedan,” says Gardner from Insurify. “They’re easy to park, have a higher seating position and offer great visibility.”

If you spent your career driving a high-powered sports car or dreamed your whole life about getting one in retirement, ask whether this is the wisest move. They’re expensive to repair and less reliable. “No one wants to worry about a car breaking down on the way to a doctor’s appointment,” says Rex.

The faster speed increases the chances of an accident, especially if your reaction time is not what it used to be. Plus, since sports cars are lower to the ground, they are harder to get in and out of.

7. New tech can keep you safe, but also create headaches

If it’s been years since you bought a car, you might be taken aback at how much the technology has changed. And often, not in a good way: distracting touchscreens instead of physical buttons, facial recognition instead of keys to start the car, and even pop-up video ads in some vehicles.

Not all innovations are a step in the wrong direction. Some have come a long way to reduce accidents, especially for tired and fatigued drivers: automatic emergency braking, blind-spot monitoring, lane-keeping assistance and backup cameras.

Still, even these safety features take getting used to. The typical 15-minute test drive might not be enough to really see if a car is a fit for your style. If you have your eye on a specific model, consider renting it for a weekend before deciding.

8. Understand car insurance costs

Car insurance rates skyrocketed after the COVID-19 pandemic, something you certainly noticed with your current bill. Even though rate hikes have slowed, premiums remain high. Keep this in mind when deciding what to buy.

Newer cars are more expensive to insure than used ones, because they have more costly parts and technology. Sports cars are also more expensive to cover, given the additional risk of a crash. You’ll enjoy an insurance discount when you start retirement, but only to a certain point.

“Drivers in their 60s enjoy the lowest average full-coverage premiums, about $155 per month,” says Gardner. “For drivers in their 70s and beyond, rates creep up as insurers factor in slower reaction times.” You can lower costs by taking a defensive driver’s course or using a pay-by-the-mile insurance policy if you aren’t on the road often.

9. Downsizing simplifies things

If you own multiple cars from when the kids were living at home, ask whether you still need more than two, or even more than one. Giving up one of your cars in retirement can lead to real savings. Each vehicle increases costs for registration, insurance and maintenance even if they aren’t being driven often. Demand for used cars is extremely high, making it a seller’s market. You may be surprised by how much you get for your old vehicles.

10. Tariffs will drive up prices even more

The $50,000 record car prices don’t reflect new tariffs, as dealers haven't fully priced those in yet.

Tariffs are highest on European models, making Japanese and American vehicles comparatively affordable. Still, prices for American models could climb too, since many rely on imported parts or are partially manufactured abroad.

While you shouldn’t rush a purchase, the current landscape creates some urgency. “Tariffs will likely increase prices by another 10% to 25%. If you’re thinking of buying a car within the next couple of years, acting sooner could make sense,” says Gardner.

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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Being a loyal customer is usually considered a good thing.

Many brands reward loyalty with discounts, perks or special offers that make you feel valued for sticking around. It’s a relationship built on trust and the idea that long-term customers should benefit from their commitment.

But when it comes to car insurance, that loyalty can sometimes work against you. Staying with the same insurer year after year might be costing you more. Instead of rewarding your consistency, some insurance companies quietly raise your rates over time.

This practice, often called a loyalty penalty, means you could be paying higher premiums simply because you haven’t switched providers. The increases can be subtle, building year after year until you’re overpaying without realizing it.

What's the car insurance loyalty penalty?

Some car insurance providers use price optimization, a strategy that determines the highest price you’re likely to tolerate before switching companies. Insurers use data analytics and algorithms to adjust your premium based on your behavior, including how long you’ve been a customer and whether you pay on time.

If you’ve stayed with the same insurer for years, you might notice your premiums steadily creeping up. Some increases are normal, driven by factors such as the rising cost of vehicle repairs or the growing risks posed by severe weather.

According to the U.S. Bureau of Labor Statistics (PDF), car insurance rates rose 4.7% from August 2024 to August 2025. But if your premiums are climbing faster than that, you might be paying a loyalty penalty.

Before assuming loyalty is to blame, look for other reasons your rate might have increased. Buying a newer, more expensive car will raise your premium because it costs more to repair or replace. Being at fault in an accident or getting traffic tickets can also increase your rate since your insurer sees you as a higher-risk driver.

If your rates are rising beyond what’s typical and there’s no clear explanation, it might be time to shop for a new policy.

What about car insurance loyalty discounts?

You might feel as if you’re getting a great deal because your insurer offers a loyalty discount, a percentage off your premium for staying with the company over time. These discounts usually increase after you have been a customer for a few years, typically around the three-year mark.

However, a loyalty discount doesn't always mean you're saving money. In some cases, it can hide the fact that you're paying more overall.

If your insurer has gradually raised your base rate, even a discount might not offset the higher premium and you could still be overpaying for car insurance.

How to avoid the loyalty penalty

To avoid paying a penalty, make a habit of shopping around for car insurance with other companies. Try to compare rates at least every two years.

Shopping for insurance can help you find new programs, lower rates available to new customers, even new insurance companies that have entered the market. If you have kept a clean driving record or gained more experience behind the wheel, you might also qualify for lower rates.

When comparing quotes, gather estimates from at least four or five companies. Be sure the coverage types and limits are the same so you're comparing fairly. Research the reputation of each company you're considering.

This is also a good time to call your current insurer and request a policy review. Explain that you're thinking about switching and share the rates you've been quoted. Your insurer might be willing to lower your premium or find additional discounts to encourage you to stay.

Explore and compare some of today's best car insurance offers with the tool below, powered by Bankrate:

What to know before you change car insurance

While switching car insurance might help you get a lower rate, it’s important to consider a few factors before you make the switch:

• Loss of bundling discount: If you’ve bundled your car insurance with another policy, like homeowners insurance, you’ll lose that discount when you switch your car insurance to another company. Bundle discounts can be significant, so you might want to shop around for a new insurance company that offers both policy types.
• Cancellation fees: If you’re changing car insurance providers in the middle of your policy term, your old insurance company might charge you a cancellation fee. Contact your insurance company ahead of time to ask about that fee. Depending on how much you could save on insurance, it might be worth it to cancel the insurance and pay the fee. Alternatively, you could wait until your policy comes up for renewal and change providers then to avoid the cancellation fee.
• Coverage lapse: Depending on when you schedule your new policy to begin, it’s possible to create a lapse in coverage where your old policy ends before your new policy begins. Even if that lapse is just for a day, insurance companies see it as a red flag and might raise your rates. To be safe, schedule your new policy so it starts at least a day before your old policy ends. If you’re switching insurance providers in the middle of your policy, only cancel your old insurance policy once your new policy has gone into effect.

If you suspect you’re paying a loyalty penalty, taking the time to shop around for car insurance could help you get lower car insurance rates.

Even if you’re not paying a penalty, many insurance companies offer lower introductory rates to new customers, so making a change could still pay off.

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If you have a car, you're probably getting flooded with calls, emails and letters telling you that your car needs an extended warranty. A lot of these are scams, but extended warranties themselves are real and sometimes useful.

While you might be reluctant to pay the added cost, some of these sales materials can make it sound pretty scary to drive without one. But, if you don't check the fine print or choose a reputable warranty underwriter, you could end up paying for coverage that doesn't quite live up to your expectations.

How do extended warranties work? Do you really need one? What should you consider if you are going to buy one? Get the details you need to know below.

How do extended warranties work with new cars?

When buying a new car, you might be offered an "extended" or "wrap-around" warranty. Whether it's worth it depends on what the standard warranty already included with your new car covers.

This varies by make and model, but typically a standard warranty lasts about three to five years or 36,000 to 60,000 miles. In terms of what they do, there are a few things to understand before signing:

• Normal wear and tear is never covered. All warranties only cover defects or damage that aren't considered normal wear and tear. So, something like worn-out brake pads will be on you to replace.
• Covered components: Some warranties might be "comprehensive" or "bumper-to-bumper," meaning all parts and systems are covered. Others might apply to specific systems like the powertrain, infotainment system or battery.
• Owner responsibilities: Often, warranties come with the condition that you keep up with routine maintenance like oil changes and tune-ups. If you fall behind, the warranty could be voided.
• Exclusions: Even if a certain system is included, some specific components of it might be excluded, or there might be certain situations in which they'll be excluded. Read through these exclusions carefully.
• Upgrades can lead to denied claims. If you take it to a shop after the fact to modify it in any way, dealerships may claim the upgrade caused the defect and deny your claim. Something as simple as swapping the tires or installing a hardwired dash cam may be enough to cause problems
• "Abnormal use" won't be covered. Even if you have a car made for off-roading, your warranty may not cover damage that happens if you actually take it off-road. In some cases, doing anything more than normal street driving could void the entire warranty.

An extended warranty, meanwhile, would work the same as your standard. The difference is it either includes things that are excluded from your standard warranty or that it extends the time that your vehicle is covered.

How do extended warranties work with used cars?

Unlike a new car, buying a used car usually doesn't come with a warranty. One exception to that is a certified pre-owned car, which is certified by the dealer to meet certain standards and will sometimes come with an extended warranty to back that up.

For the most part, used car warranties work the same way. But there are a couple of unique features that you might find:

• Waiting periods. Sometimes, used car warranties won't kick in right away. Instead, they take effect 30 to 90 days after purchase. The waiting period might instead be a mileage, like 1,000 miles.
• Preexisting conditions. Any issue that existed before the warranty was purchased is often excluded. If you bought the warranty when you bought the car, it can be hard to appeal a claim that's denied as a preexisting condition.

Is it worth it to get an extended warranty on a car?

The answer depends on your risk tolerance. When buying a new car, you already have a standard warranty included in the price, so you can at least wait until that one is near its expiration to explore your options.

For used cars, the answer is trickier because it depends on the condition and maintenance history of the car you bought. For a certified pre-owned car that came with an extended warranty, go ahead and use the warranty if you can.

If trying to get a claim approved turns out to be a huge headache, it might not be worth the money to buy another extended warranty when that one expires.

Reasons to not buy an extended warranty

Some reasons you might opt not to get the extended warranty include:

• You had bad experiences trying to get repairs covered under the original warranty that came with your car.
• You've made modifications to your car that would either void a warranty or render it pretty much useless.
• You've done the routine maintenance on the car yourself, so you don't have official records documenting its maintenance history.
• You do a lot of off-roading, hauling or other things with your car that a warranty underwriter could deem "abnormal."
• You'd just prefer to handle repairs without the stress of a claims process.

Extended warranty vs emergency fund

Depending on whether the car is used or new, an extended warranty can range from about $1,000 to $3,000 for a coverage period lasting three to five years (or a certain mileage).

Would you be better off forking over that cash for a warranty or stashing it in a savings account to pay for repairs as needed over that time frame?

The good news is you aren't stuck with one decision or the other. As mentioned, you can hold off on deciding about that extended warranty until your existing warranty is about to expire.

While you're waiting, go ahead and keep the cash you'd spend on it in a savings account so it can earn interest while you weigh your options.

Mistakes to avoid when buying an extended car warranty

If you would feel more comfortable having that extended warranty, there are some important steps to take to make sure you're getting a fair price and paying for a warranty that is actually usable.

Here are some of the biggest mistakes car buyers make when buying extended warranties:

• Forgetting to negotiate the price. The price you're offered isn't set in stone. Start by offering to pay half (or even less) than the price you're initially quoted and negotiate from there.
• Not vetting the company. You'll get plenty of ads, phone calls and emails offering you an extended car warranty. But they aren't all created equal. You need to buy one from a reputable source, like your car's manufacturer, a local bank or an auto club like AAA.
• Getting pressured into buying an extended warranty right away. At the dealership, the salesman might put a lot of pressure on you to add that warranty right then. Just take your car home, do some research, and compare prices and options from multiple reputable companies. Your dealer's offer might be the best one, but you might end up scoring a better deal elsewhere.

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If you bought or leased a Toyota, Lexus or Subaru in the past few years, it might be worth checking whether your vehicle is part of a new safety recall. Many models with advanced camera systems are affected.

Toyota and Lexus have recalled more than a million vehicles due to a software issue in the Panoramic View Monitor. Subaru models using the same system are included. The problem can cause the rear camera image to freeze or go blank when reversing.

This matters because rear visibility is a required safety feature. Even a brief loss of the back-up camera image can create risk in tight spaces or driveways. What to know about the issue and which models are included.

What to know about the recall

The core issue that caused this most recent vehicle recall is the software of the Panoramic View Monitor, which can intermittently cause the rearview camera feed to freeze or go blank when the vehicle is shifted into reverse.

This problem directly violates the Federal Motor Vehicle Safety Standard (FMVSS) No. 111, which mandates a functional rear visibility system for all vehicles.

Rear cameras are more than a convenience these days; they’re a crucial safety tool. A frozen or missing rearview image could lead to accidents, particularly involving children, pedestrians or other objects behind the vehicle that the driver cannot see.

Which vehicles and model years are affected?

Here’s a snapshot of the models involved in the recall:

Lexus Models

• ES (2023 – 2025) – Gas and hybrid
• GX (2024 – 2025)
• LC (202 – 2025) – Gas and hybrid
• LS (2023 – 2025) – Gas and hybrid
• LX (2022 – 2025 Gas; 2025 hybrid)
• NX (2022 – 2025) – Gas, hybrid, plug-in hybrid
• RX (2023 – 2026) – Gas, hybrid, plug-in hybrid
• RZ (2023 – 2025) – Electric
• TX (2024 – 2026) – Gas, hybrid, plug-in hybrid

Subaru Model

• Solterra (2023 – 2025) – Electric

Toyota Models

• bZ4X (2023 – 2025) – Electric
• Camry Hybrid (2025 – 2026)
• Crown and Crown Signia (2023 – 2026) – Gas and hybrid
• Grand Highlander (2024 – 2026) – Gas and hybrid
• Highlander (2023 – 2025) – Gas and hybrid
• Land Cruiser (2024 – 2025) – Gas/hybrid
• Mirai (2023 – 2025) – Hydrogen fuel cell
• Prius (2023 – 2025) – Hybrid and plug-in hybrid
• Prius Prime (2023 – 2024)
• RAV4 (2023 – 2025) – Gas, hybrid, plug-in hybrid
• RAV4 Prime (2023 – 2024)
• Sienna (2025) – Hybrid
• Venza (2023 – 2024) – Hybrid

How dealerships will address the recall

Toyota and Lexus dealerships will update the vehicle software free, which should resolve the glitch and restore proper function to the Panoramic View Monitor.

Notification letters to affected owners are expected to begin going out in December. If you suspect your vehicle might be included, you don’t need to wait.

Owners can:

• Visit the Toyota, Lexus, or Subaru recall website and enter their 17-digit VIN
  • Toyota safety recalls
  • Lexus safety recalls
  • Subaru safety recalls
• Use the NHTSA recall lookup tool.
• Call customer service
  • Toyota: 1-800-331-4331
  • Lexus: 1-800-255-3987
  • Subaru: 1-800-782-2783

In most cases, the fix is a relatively quick software flash that can be done at the dealership, often without needing to leave the car overnight.

Why such recalls are becoming more common

As cars become increasingly complex and software-driven, recalls such as this are becoming more frequent. Software-related defects have grown steadily in the last decade, now accounting for nearly 40% of all vehicle recalls, according to industry analysts.

Advanced driver-assistance systems (ADAS), infotainment and safety technologies offer major benefits but also increase the risk of bugs and defects. Even a seemingly minor coding issue can cascade into significant safety concerns such as a blank camera screen that could lead to a collision.

Automakers are racing to keep up with both consumer demand for high-tech features and government safety standards. Unfortunately, that often means some glitches only surface after thousands of vehicles have already hit the road.

Taking action to stay protected

While it’s unsettling to hear about a recall of this size, the important thing is that the issue has been identified and a fix is available at no cost to the consumer.

If you drive a Toyota, Lexus or Subaru from the past few model years and rely on your rear or surround-view camera, it’s a good idea to check your VIN today.

When it comes to safety, especially around visibility and reversing, it’s better to act sooner than later.

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There are many things to celebrate when you reach the milestone of retirement, and one underappreciated blessing is not having to commute anymore.

For those who drive to work, this means considerably less wear on your car from sitting in traffic day in and day out.

Does that mean you can cut your insurance bills? Yes, cutting your daily commute can be leveraged to trim your premium. The difference probably isn't as much as you're hoping for — and there are more meaningful changes you can make as you retire that will net better savings.

If you're in your 50s or 60s, the good news is you're already likely paying some of the lowest rates you'll ever pay. Drivers in this age range are considered some of the least risky to insure by providers. Once you hit 75, premiums start climbing, as older drivers are considered higher risk.

That means decreasing your annual mileage is unlikely to make that much of a difference to what you're paying. It also means you don't need to make any dramatic changes to your coverage just yet if you're not ready.

If you want to see a meaningful drop in rates, here are some changes you can make and how much you can expect to save from each one. Make the changes now or keep them in your back pocket for when your car insurance rates start surging in your 70s.

Save $80 for low annual mileage

Cutting your commute could be enough to put you in the "low mileage" club.

Insurers vary on what they consider low mileage and how much they discount premiums for those who drive less. On average, you can expect your policy to drop by about 3%. Based on the current national average car insurance rate of $2,671 per year for full coverage, that translates to about $80.

To get those savings, call your insurance provider and ask how much of a discount you'd qualify for and what you need to do to get the change in your driving habits reflected on your policy.

If your insurance is up for renewal soon anyway, use this opportunity to shop for a new policy, and make sure to report your new annual mileage now that you're no longer commuting.

To find out how much you'd save by switching car insurance now that your annual mileage is lower, use our car insurance comparison tool, powered by Bankrate:

Consider switching to a pay-per-mile policy

If cutting out your commute means you'll rarely be driving at all, you might be a good candidate for pay-per-mile car insurance. These policies usually charge a low base premium, then tack on additional premiums at a fixed rate per mile.

Since rates vary by provider and the amount you pay will change each month based on how much you drive, it's hard to estimate how much you'd save (or if you'd save at all) by switching to pay-per-mile car insurance. If you know you'll be relying on other modes of transport like walking, biking or using public transport for most of your daily needs, it's worth getting quotes.

One important caveat here is that the insurance company might require you to install a device in your car or download an app to track your mileage. If they do, read through the privacy policies thoroughly to see what other data the company might be gathering about you, how it will use it and with who else the data will be shared.

The savings might not be worth the risk of a data breach or the deluge of marketing calls and emails you end up dealing with by handing over this kind of personal information.

Save $2,100 by getting rid of a car

If you're in a two-car household, consider getting rid of one car. Now that you're no longer commuting every day, it might be easier for you and your spouse to get by on just one vehicle, and the savings can definitely make it worth your while.

Assuming you have a multi-car policy — which usually comes with a roughly 20% discount on insuring the second car — you could save an average of $2,100 per year by ditching one of your cars. That's based on the same $2,671 average calculated by Bankrate.

You should be able to log in to your account and see a breakdown of exactly how much each car on your policy costs to insure. If that info isn't available in the online portal, call your insurer to ask how much each car on your policy costs.

If you're getting rid of a car, you can save even more by getting rid of whichever car model costs the most to insure. If you're choosing between a Subaru and a Tesla, for example, ditching the Tesla will net you the most savings.

That doesn't mean you have to give up your dream car to save money, though. If you have a luxury or classic car you love, keep it (just remember to have the best insurance for luxury or exotic cars). Going from two cars to one on your insurance will still result in notable savings, even if the car you keep is the more expensive of the two.

Save $1,400 by downgrading one car to minimum coverage

If you're not ready to completely give up a car in retirement, you can still save thousands by opting to downgrade coverage on one of your vehicles to the minimum required by your state — if you're willing to accept the risks and possible higher costs in case of incidents.

A minimum coverage policy is about $1,800 cheaper than full coverage, according to Bankrate. If you're on a multicar policy, getting that 20% discount would translate to about $1,400 in savings by dropping to minimum coverage on just one of your cars.

If you go this route, make sure you're dropping coverage on your least valuable car. Minimum coverage typically means you're dropping collision and comprehensive coverage, so you're on the hook for repair bills if you're at fault in an accident. It's better to be on the hook for the car that will be the cheapest to repair.

Another option, if you're not ready to completely drop full coverage, is to lower the coverage amounts. If you're driving less, you're also less likely to be involved in a serious accident. You could drop the coverage amounts on your policy without exposing yourself to much more risk. (If, however, you're swapping commutes for long road trips, this would be risky.)

Be wary of decreasing your liability coverage, though. Liability coverage also shields your assets in the event the other driver sues you after an accident. As a retiree, that means your hard-earned retirement savings could be on the line if your policy doesn't provide enough coverage to pay for the lawsuit.

Save $800 by raising your deductible

Raising your deductible is another good way to find real savings on your car insurance. A full coverage policy with deductibles of $100 for comprehensive and $500 for collision insurance costs $3,041 on average.

If you raised those deductibles to $1,500 each, your premium would drop to an average of $2,205. That's about $800 saved without giving up coverage.

As your risk decreases, you can basically treat your car insurance as a "worst-case-scenario" tool. That is, max out your deductible knowing that you're only going to file a claim on your collision or comprehensive coverage if the damage is severe enough that you're pretty sure your car will get totaled.

Retirement is a great time to save on car insurance

While cutting out your commute might not impact your car insurance rates as much as you thought, there are lots of opportunities to slash your premiums now that you're retired.

Many of the strategies above can also bring other savings, too. Driving less means you'll save on gas, and if you get rid of a car, you'll save even more.

You can toss all those savings into a one-year CD and treat yourself to a vacation or shopping spree every year, paid for by your monthly savings from paying less for car insurance, gas and car maintenance.

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Ford Motor Company is recalling more than 115,500 vehicles in the U.S. due to a potentially dangerous steering column defect.

The problem stems from the upper shaft of the steering column, which may not meet required safety standards. If the shaft separates, drivers could suddenly lose the ability to steer — one of the most serious hazards on the road.

Although no crashes or injuries have been reported, Ford and federal safety regulators are urging owners of certain trucks to take the recall seriously. Here’s a closer look at which vehicles are affected, why the defect is so concerning and the steps owners should take to stay safe.

Which vehicles are affected?

The recall centers on 2020–2021 Ford Super Duty trucks, including the popular F-250, F-350 and F-450 models. These heavy-duty vehicles are widely used for both commercial and personal purposes, which raises the urgency of the issue.

According to Ford, only about 1% of recalled trucks are expected to have the defect, but every owner of an affected model should have their vehicle inspected. Even if a problem is unlikely, the risk of losing steering control while driving is too severe to ignore.

Why Ford trucks are being recalled

The core issue for the recall is the steering column’s upper shaft. Investigations revealed that some shafts failed to meet the necessary “anti-pull-apart” strength requirements. This means that the column could come apart under stress which is a huge risk to consider.

If that happens, the driver would lose the ability to control the vehicle’s direction and this failure could lead to a serious crash. The defect was traced back to a supplier’s quality control lapse, which allowed the faulty parts to slip through.

So far, Ford has logged seven warranty claims tied to the issue, but thankfully, no accidents or injuries have been reported.

What Ford is doing about the defect

Ford has assigned this recall the number 25S94. Interim notices to affected owners will begin going out in early October, with final repair instructions expected before the end of the year.

Dealerships will inspect the steering column free of charge. If a defect is detected, the dealer will replace or repair the column at no cost to the customer. Ford has emphasized that drivers should not delay scheduling their inspection once they receive notice.

Steering defects are among the most dangerous vehicle issues because they give drivers little warning before a failure occurs. Even if only a small percentage of trucks will experience the problem, the consequences could be devastating.

For truck owners who rely on their F-250s, F-350s or F-450s for work or family use, addressing the recall promptly ensures peace of mind and safety on the road.

What to do if your vehicle is recalled

If you think your truck may be affected, here are the key steps to take:

1. Check your VIN

Go to the NHTSA recall website or Ford’s recall lookup tool and enter your Vehicle Identification Number (VIN). This will confirm whether your truck is included in the recall.

2. Watch for notifications

Ford will begin sending recall notices by mail and email starting October 6. Keep an eye on your mailbox and inbox, and don’t discard any official letters from Ford.

3. Contact your dealer

Call your local Ford or Lincoln dealer to schedule an inspection. Inspections and repairs under this recall are completely free of charge.

4. Stay alert for warning signs

Even though Ford hasn’t issued a “Do Not Drive” order, drivers should be cautious. If you notice looseness in your steering, unusual play, or unresponsiveness, pull over safely and arrange an immediate inspection.

5. Document the process

Keep copies of recall notices, repair orders, and communication with your dealer. These records may be useful if there are any disputes or delays later.

Recalls can feel like a hassle, but they exist for one reason: to protect drivers and passengers from risks they can’t see coming. Ford’s steering column defect recall is a reminder that even the most reliable trucks can have hidden flaws.

Taking action now ensures your vehicle remains safe to drive, and gives you confidence every time you get behind the wheel.

Explore and compare some of today's top car insurance offers with the tool below, powered by Bankrate:

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If you're a retiree in the market for a new car or truck and you have good credit, you’re in luck; you can leverage that to potentially score a deal.

That doesn’t mean it will be easy — tariffs and higher interest rates are making it more costly to purchase a new vehicle — but it can be done this holiday weekend and beyond.

“Retirees can absolutely leverage their strong credit to capitalize on Labor Day car sales,” says Carol Pope, senior writer for auto and personal loans at LendingTree.

“Carmakers often offer cash incentives and promotional 0% APR or low-interest financing on certain makes and models, especially during Labor Day. But to take advantage of these deals, you have to be a ‘well-qualified buyer.’ In other words, you need good credit.”

What your high credit score can get you

Well-qualified buyers in the eyes of car dealers, lenders and manufacturers are those retirees with a credit score of 720 or higher, steady income, a low debt-to-income (DTI) ratio, a history of making on-time payments and a sizable down payment.

Retirees who check off all those boxes tend to get better rates on their car loans. It also puts them in a better position to negotiate with car dealers because there is little risk they'll be denied a loan.

If your credit score is 781 or higher, even better. That's what's needed to get the best rates available.

Now that you know the power of your high credit score, here’s how to use it to your advantage

Shop around for your new ride

A lot of research goes into selecting a new vehicle to purchase, and once you decide the make and model, equal time should go into shopping for the best price.

Don’t just walk into the first dealership and drive out with a new vehicle. It's important to shop around to compare the deals and incentives different dealerships are willing to offer.

Keep in mind that your ability to get a deal on the vehicle depends largely on supply and demand. If it's hot at the moment, such as compact and midsize SUVs, you won’t be able to haggle, says Joseph Yoon, consumer insight analyst at Edmunds. But if it's sedans, which aren’t as popular, dealerships might be more eager to get them off the showroom floor.

“Most retirees and older folks are trying to get cars that are comfortable and have higher seating positions and are easier to get in and get out of, and that’s compact SUVs and midsized SUVs,” says Yoon. “They are hugely popular with everyone else, so there’s really no incentive for dealers to give $1,500 off when the next person who walks in the door will pay sticker price for them.”

Electric vehicles: The outlier

One type of vehicle you might be able to haggle for is an elective vehicle, says Yoon. The federal government’s tax credit of up to $7,500 on EVs is ending on September 30, 2025, which is expected to put a dent in sales, resulting in excess inventory.

“Dealers are very willing to move these vehicles, especially before September 30,” says Yoon. “Everyone in the market for a car who lives near enough to EV charging infrastructure or has a garage where they can plug their car in every night should at least take a look at an EV.”

There are also numerous state and local tax credits for EVs that are stackable with the federal credit.

If you're considering an EV, you should also look into leasing, as many dealers are incorporating the tax credit into EV lease deals. The EV site Electrek keeps a running list of deals nationally.

Shop around for your car loan, too

Shopping around doesn’t only pertain to the dealer from whom you purchase a car. It should also be the lender you use to finance the car.

Pope advises getting pre-approvals — three or four — by lenders and using the lowest interest rate as leverage when negotiating with dealers.

“Wait until the dealer gives you an out-the-door price on the car, show them your preapproval and ask if they can beat the rate,” says Pope.

Don’t be afraid to say no to any extras when negotiating the financing terms, either. One of the tactics financing managers use is to wait until the end of the process — when you might be too worn out to push back — to tack on more features, such as paint and fabric protection, "ding" protection or other extras, says Pope.

If the service or warranty is one that you truly think you’ll use, Pope says go for it, but otherwise, say no. Better yet, try to get them for free.

“These add-ons typically get rolled into the car loan, where they will accrue interest,” says Pope.

Finally, you might be able to benefit from the new car loan interest tax deduction. If you hope to get this deduction, do your homework first, as not all models or borrowers qualify.

Can cash be a negotiating tool?

If you’re thinking about paying cash, it might or might not help you in negotiations.

Often, finance companies incentivize the dealers to have their customers finance car purchases. They're more willing to take money off the sticker price for someone who finances and pays interest than someone who pays cash, says Yoon.

“Don’t mention you’re a cash buyer right away. Dealerships make money by setting people up with financing,” adds Pope. “They might bump up the cost of the car or tack on additional products to offset the loss they may take with a cash deal.”

Cash might get you a lower price, however, if the dealer is motivated to get the car off the lot.

If you're paying cash, ensure you understand the tax implications if the money is coming from a 401(k). Those withdrawals are taxed as ordinary income, and depending on how much you withdraw, they could push you into a higher income bracket.

“Once that money is out of the investment account, it will no longer grow. In fact, they’ll be putting it toward a depreciating asset (a car),” says Pope.

Buy when you are ready

While Labor Day sales, tariffs and low inventory on certain vehicles might all seem like valid reasons to act now and purchase a new car, ultimately, the timing should be when you’re ready, not because of something in the market.

There is never a perfect time to act, other than when you need or want to.

“If you’ve done your research, you have a general idea of what you want, then we’ve been advising people it's the right time to buy,” says Yoon.

“Don’t worry about the things you can’t control; focus on getting ready (to buy a car) instead of waiting for a break in your favor.”

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Snowbird season, the annual time of year that typically starts in late October or early November, in which thousands of people, often retirees, migrate from colder northern regions to warmer southern areas to escape the winter, is coming to an end.

In late March to mid-April, many of those retirees will return home from places like Florida, Arizona and Texas — popular destinations for snowbirds who tend to spend as much as six months soaking in the sunshine and kicking back in warmer climates, before they return to their cooler climate homes.

Some of these snowbirds opt to ship their vehicles instead of driving them. It costs anywhere between $510 for shipping vehicles a few hundred miles away on an open carrier to around $1,580 to ship a car across the country in an enclosed truck, according to Move.org. The tradeoff is that it's a way to avoid the physical exhaustion that comes with driving long distances.

Plus, you don't have to worry about accidents or mechanical failures. It also helps the travelers preserve their vehicle’s condition and enables them to enjoy their destination sooner.

While it’s a common practice among snowbirds, it can also be unnecessarily expensive, thanks to some unsavory practices. There are many reputable companies providing shipping services, but there are also others trying to scam snowbirds or overcharge them.

“It's one of those things where you’re going to have to do your research. Even though there are many legitimate car shipping companies, there are a lot of companies that aren’t 100% on the up and up,” says Amy Nofziger, Director of Victim Support, Fraud Watch Network at AARP. “This might not seem like something you have to pay attention to, but this is a huge asset that you have.”

Snowbirds need to know which fees are legitimate

When shopping for a car transport company, it's important to know the fees to expect. It will also help you when shopping for a provider. Some of the common fees are:

The distance: Transport companies charge a fee per mile, typically between $0.50 and $1.00 per mile, depending on how far you're going. Typically, the shorter the distance, the more it costs per mile.

Fuel cost: There is a fuel charge for transporting your vehicle. It's based on the national average diesel fuel cost and can fluctuate.

Open transport: This is the cheapest and most popular option. Your vehicle is exposed to the elements.

Enclosed transport: It is more expensive and is typically for high-end vehicles such as classic cars or exotic vehicles.

Vehicle size and weight: If you have a SUV or pickup truck that requires more space and fuel to transport, expect to pay more than if you own a sedan. The larger the vehicle, the more you'll pay.

Vehicle condition fee: If the transport company needs special equipment to load and unload your vehicle because it is inoperable, an additional charge will be applied.

Door-to-door service: The transport company picks up and drops off your vehicle at the address you specified. While it's the most convenient, it does cost more than picking it up at the terminal.

Terminal-to-terminal: Cheaper than door-to-door service, you drop off and pick up your vehicle at the terminal.

Storage fees: If you don’t pick up your vehicle right away, you could incur daily storage fees.

Loading position fee: If you request your vehicle to be placed on the top of the rack to protect against other vehicles leaking onto yours, there’s an extra fee.

Snowbirds need to watch our for four scams

To keep you safe and with money in your pocket this snowbird season, we highlighted four common scams to avoid when shipping your car to another state.

1. Bait and switch pricing

The scam: To get your business, some companies will promote a too-good-to-be-true price that only lasts for a short period. They come on strong, get you to leave a non-refundable deposit and then when it's time to ship the vehicle or pick it up, they charge more. They tack on this and that fee, and before you know it, that low fee isn’t so low anymore.

How to avoid it: If the pricing seems too good to be true, it probably is. It's important to shop around, get three quotes and if the quote is significantly lower than the rest, that should raise a red flag.

“We get enticed by the price and that emotion of getting a great deal can sometimes get in the way of cognitively thinking about, hey, all the other prices are $2,000, and this is $1,000, why is it such a good deal?” says Nofziger.

2. A non-refundable deposit

The scam: Some transport companies require an upfront non-refundable deposit, and then when it comes time to pick up your vehicle, they either delay the process endlessly or disappear with your money. You're out the cash and don’t have a company to ship your vehicle with.

How to avoid it: Just like the bait-and-switch scam, a telltale sign you may be getting conned is if the company engages in high-pressure sales tactics, tries to secure a deposit immediately, offers very low pricing, buries the terms in the fine print and does not have a cancellation policy.

Don’t work with a company that requires a non-refundable deposit, payment in full before shipping, or isn’t willing to say it's refundable in writing. There are plenty that will.

“A lot of companies use high-pressure sales tactics or scare tactics to get you to book a spot weeks ahead,” says Nofziger.

3. Catfishing — they steal your identity

The scam: Scammers aiming to steal the identity and bank information of unsuspecting victims will set up fake websites that look like the real car shipping companies' websites. Some will go as far as to create fake social media accounts, all in an effort to lure customers to their site instead of the real one.

How to avoid it: Selecting a transport company requires some research on your part. Sure, you have a million things on your plate as you get ready to move away for a few months, but you have to take the time to research the company.

Ask for the shipping company's U.S. Department of Transportation ID number. Then search the Federal Motor Carrier Safety Administration's (FMCSA) Company Snapshot Database. The database may not include small carriers or brokers, but should, in general, provide a company's "identification, size, cargo, inspection and out-of-service summary, crash data and safety rating (if any)."

After you find a few companies that you like, Nofziger says to vet them online at the Better Business Bureau and on crowdsourcing websites like Reddit to see what people are saying.

“Don't always look at just ratings, look at the reviews and the comments people have made,” says Nofziger. “Take the name of the company into a new search engine and search if there are any fraud complaints."

Rule of thumb: never click on an ad or respond to an unsolicited email, text message, phone call or flyer in the mail. You find the transport company, don't let them find you.

4. The ransom scam

The scam: This occurs after you've signed the paperwork and the transport company has picked up your vehicle. Upon delivery, the company suddenly demands additional payment, citing "unforeseen issues" such as fuel surcharges, challenging routes or weight discrepancies. To retrieve your vehicle, you are required to pay hundreds or thousands of extra dollars; otherwise, they may threaten to store your car in a distant facility or even auction it off.

How to avoid it: This often happens when a broker quotes a low-ball price but can't find a driver willing to work for that rate. They hire a driver at a higher price without telling you, then pass that cost on at the last minute.

Before the driver leaves during pickup, ensure the total price on the Bill of Lading (BOL) matches your original contract exactly. If the numbers don't match, do not release your vehicle. Always verify that the carrier at your door is the one assigned by your contract, and never pay the full balance in cash.

Be informed to save money

Heading back home is an annual rite of passage for many snowbirds. If you are shipping your car, it doesn't have to be an overly costly endeavor.

Follow the above tips, and you can ensure you aren't scammed as you head back from waiting out the winter months in the sun.

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The new Ford Universal EV Platform could mark a turning point in the electric vehicle (EV) industry, making these vehicles more affordably priced and accessible to buyers.

President Donald Trump’s 2025 tax reform bill will cause the federal EV tax credit to expire for vehicles purchased or leased after September 30, 2025.

With fewer incentives to prompt customers to buy EVs, manufacturers will need to pivot and find new ways to stay competitive in the market. The new Ford platform and its $30K electric pickup could do just that.

How Ford’s universal EV platform works

On August 11, Ford CEO Jim Farley announced the Ford Universal EV Platform, designed to "be the foundation for a new generation of electric vehicles." Farley referenced the Ford Model T, which was popular because it was affordable, adaptable and serviceable and explained that this new platform is another bet on America, the same way the Model T was.

The new platform, located in Louisville, Kentucky, will manufacture vehicles that are "affordable for the average family." According to Farley, these new vehicles will still be packed with innovative features, making them fun and enjoyable to drive. Over-the-air updates can continue to improve the vehicles over time.

The Ford Universal EV Platform is structured into three branches. The front and rear of the vehicle will be assembled on separate lines, and the third branch will assemble the vehicle’s battery.

At the end, all three branches come together. Farley stated that this platform will allow for faster assembly, plus it will take up less space and allow for better worker ergonomics.

Details on Ford’s $30K electric pickup

The first vehicle to be built on the new platform is a midsize electric truck assembled in Kentucky. The truck’s base price will start at around $30,000. “It will be as quick as a Mustang EcoBoost, and it will have more passenger volume than a 2025 Toyota RAV4 — along with a truck bed, smart cargo and frunk solutions,” said Farley. The pickup is scheduled to debut in 2027.

That $30K electric pickup is the first of many affordable, adaptable EVs that Ford will release. The vehicles will be available in multiple body styles, and they will feature batteries that are assembled in the United States.

What Ford’s universal EV platform means for car buyers

Manufacturers are under tariff pressure to move their operations to America, and the Universal EV Platform is Ford’s effort to accomplish that. Ford has warned that it anticipates paying $3 billion in tariffs this year, which could raise vehicle prices. But the company's EV strategy to develop a new platform also indicates an effort to stand out in the EV market and to meet consumers’ needs.

As the EV tax credit expires, Ford’s new $30K electric pickup offers a budget-friendly alternative to electric trucks currently available. According to iSeeCars, the Ford F-150 Lightning is the most affordably priced electric pickup available, starting at $49,780.

However, the average starting price for electric pickups is $68,578, which is beyond many consumers' budgets. Ford’s new electric pickup costs nearly $20,000 less than the Ford F-150 Lightning, and it will be interesting to see if the other models produced on this platform are even more affordably priced.

By restructuring the manufacturing platform, Ford has sped up assembly while slashing costs. The manufacturer has also created a feel-good element to buying a vehicle that’s assembled in the United States.

By using fewer parts and carefully structuring the vehicle’s assembly, Ford may have identified a way to create affordable electric vehicles without sacrificing quality or comfort.

Ford’s development of this new platform is a high-risk decision, but it could bring high rewards for the manufacturer, investors and consumers. Ford has invested $5 billion in the effort so far, including $2 billion to restructure the Louisville assembly plant.

Ford has committed $3 billion to the BlueOval Battery Park in Michigan, where the lithium iron phosphate batteries will be assembled. Ford’s dramatic move in creating a new platform could demonstrate that the manufacturer is listening to customers and working to meet their needs within their budget.

Perhaps these new, more affordable electric vehicles entice consumers to buy; Ford just may have secured itself a new consumer base with this strategic decision.

Looking ahead to the future of Ford’s EVs

If Ford delivers on its $30K electric pickup promise, it could reshape the EV market much like the Model T transformed early automotive history. With tax credits expiring and affordability a growing concern, the Universal EV Platform may give Ford a competitive edge, and give consumers more accessible options, in the next wave of electric vehicles.

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If you're in the market for a new car this year, especially a Ford, there's some fresh news that might impact your timing and your wallet. Ford just warned investors that it expects to take a $3 billion hit from tariffs in 2025, a sharp increase from earlier estimates. And even though Ford builds most of its lineup domestically, it’s still feeling the squeeze thanks to the global nature of car manufacturing.

According to Reuters, Ford slashed its full-year profit forecast to $6.5 to $7.5 billion, down from an earlier range of $7 to $8.5 billion, due in large part to unexpected tariff costs. That financial pressure doesn't just hurt the automaker. It could trickle down to consumers in the form of higher sticker prices, fewer incentives and tighter deals.

Here's a breakdown of how Ford's tariff troubles might affect your car shopping experience, and whether it makes more sense to buy now, wait or look at alternatives.

What’s behind Ford’s $3 billion tariff bill?

Despite being one of the most "American-made" automakers with roughly 80% of sales built domestically, Ford still relies heavily on imported components, especially for its growing line of electric vehicles. This includes battery cells, microchips and electronics that power newer models.

New tariffs have raised costs on many of those components. Add that to persistent supply chain challenges and high labor costs, and Ford is facing a costly mix. "Tariffs are biting harder than expected," the company admitted in its Q2 2025 earnings report.

How Ford's tariff costs could impact car buyers

So, what does a $3 billion tariff bill mean when you're browsing the lot or configuring a new car online?

1. Prices may creep higher

While Ford hasn't officially announced across-the-board price hikes, rising input costs have to be recouped somehow. Vehicles that rely heavily on imported parts like EVs and hybrids, could see modest increases in manufacturer’s suggested retail price (MSRP) or fewer trim-level discounts as the year goes on.

2. Dealer incentives could shrink

If you've been waiting for a big cash-back rebate or low APR financing, don't be surprised if promotions start to fade. Dealers and automakers often pull back on incentives when margins get tighter. In other words, the generous offers you see now may not last.

3. Fleet and commercial discounts may be first to go

Fleet buyers, rental companies and businesses may find themselves negotiating for smaller volume discounts, as Ford looks to protect profitability across all buyer categories.

Should you buy now or wait?

Here's the million-dollar question: with tariffs looming large, should you hurry to buy a car now or wait to see how things shake out?

Buy now if:
You’ve found a good deal, your financing is locked in, and you’re eyeing a model that could see price hikes. With summer clearance events still running, now could be your last shot at scoring some of the better offers of the year.

Wait it out if:
You're not in a rush and think trade negotiations could ease tariff costs in late 2025 or 2026. However, there's no guarantee of that, especially with election-year trade policy debates heating up.

Consider used:
If new prices feel out of reach, the used car market may offer better value. Prices have come down from their pandemic-era highs, and certified pre-owned (CPO) programs from Ford and others offer solid protection.

Ford's tariff warning could be the start of a bigger trend

While Ford is the latest to ring the alarm bell, it likely won't be the last. As trade tensions persist and tariffs remain in place, other automakers could report similar pricing pressures later this year. This is especially true for brands that rely more heavily on international assembly and parts sourcing.

It's also a reminder that "Made in America" often still means "Assembled with Global Parts." Even U.S.-built vehicles can be vulnerable to international trade shifts.

Smart car shopping tips amid rising tariffs

Here are a few ways to protect your budget in this uncertain market:

• Watch pricing trends on tools like Kelley Blue Book, Edmunds or TrueCar.
• Compare financing offers across multiple lenders and not just what the dealer offers.
• Consider leasing, if available, for a lower monthly payment (but read the fine print).
• Negotiate your trade-in value to offset the cost of a new vehicle.
• Research vehicle builds to see if a model uses significant imported parts that could be affected by tariffs.
  

How Ford's tariff hit could affect your next car purchase

Ford's $3 billion tariff burden is more than just a corporate headache. It's a preview of what shoppers may soon face. Whether it's a slightly higher price tag, fewer discounts or a smaller range of financing offers, the impact of international trade decisions is coming to a dealership near you.

If you've been thinking about buying, it might be worth moving sooner rather than later, especially if your dream car is still parked at current prices.

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It’s always a good time to get a good deal. But as tariffs take effect on some imported goods — and as the Trump administration continues to negotiate tariffs with other countries — you may be especially interested right now in how you can save money while you shop.

Kiplinger Personal Finance Magazine has taken the time to assess how you can find deals this year on investments, groceries, electronics, clothing, cars and travel, as well as how to take advantage of credit card perks — with a special emphasis on finding deals for products and services most prone to rising prices as the trade war evolves. In this article, we look at deals on cars. (See below to find links to our other articles about deals.)

The 25% tariffs on imported cars and car parts that went into effect in the spring have significantly affected the U.S. auto industry, prompting automakers to adjust pricing and production strategies.

“The bottom line for consumers is they’re going to have to do a lot of extra research,” says Brian Moody, senior editor for Kelley Blue Book (KBB), an automotive vehicle valuation and research company.

Not all vehicles will be affected equally, and even cars built in the U.S. may cost more, so you’ll want to research prices thoroughly to avoid surprises, he says.

If you’re shopping for a car, consider these strategies to reduce your costs, both up front and over the long term.

Leverage your memberships

Members of wholesale retailers Costco and Sam’s Club can take advantage of their car-buying programs.

The Costco Auto Program helps members find deals on new and used cars, collaborating with dealerships to prearrange special pricing for members.

Members recently also had access to special promotions and incentives, such as up to $2,000 off on select new Audi models or discounts on electric vehicles from brands such as Chevrolet and Volvo.

Additionally, Costco provides discounts of 15% (up to $500 per visit) on parts, service and accessories. Costco’s annual membership fees start at $65 per year.

Sam’s Club also offers prenegotiated pricing on new and used cars. The average savings for new cars is about $3,400 off the manufacturer’s suggested retail price, according to TrueCar, an online automotive marketplace.

Members can also get discounts on tires and tire installation. Sam’s Club memberships start at $50 per year.

Factor in insurance and other long-term costs

Some vehicles are more expensive to insure than others. More-affordable vehicles, such as the Toyota Corolla, Toyota Camry and Honda Accord, will usually have the lowest insurance premiums, Moody says.

Buying a car that’s relatively inexpensive to insure can keep your long-term ownership costs down.

Comparison-shop insurance policies, too. Most major insurers offer free quote calculators on their websites. Or use a site such as TheZebra.com to compare quotes from multiple insurers.

Think about other long-term costs as well. Buying a fuel-efficient vehicle can significantly lower the costs of car ownership over time.

At www.fueleconomy.gov, click on “Compare Side-by-Side” to use a tool that allows you to select various vehicle models and compare their fuel economy.

For each model, you’ll also see estimated annual fuel costs and how much you’ll save (or how much more you’ll spend) on those costs over five years compared with the average new vehicle.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Having your car stolen is an unfortunate reality for many auto owners. Car theft has been steadily rising, with a 28% increase in incidents from 2019 to 2023, per the National Insurance Crime Bureau (NICB).

The good news is that the trend is reversing. The NICB reported fewer than 1 million auto thefts in 2024, representing the biggest decrease in vehicle thefts in 40 years.

While car thefts are down, there are still factors that could influence your risk. We'll cover these factors, as well as how elevated theft risks could result in higher car insurance rates and ways to lower costs.

States with the highest, lowest increase in auto thefts

Where you live matters when it relates to auto theft.

Here's a look at the five states with the largest increase in theft rates, with all data for these tables provided by the NICB:

Alternatively, here are the five areas that had the highest decrease in auto thefts last year:

What's surprising is that there are some states that overlap both categories. Colorado and Nevada are among the states most susceptible to car theft rings. Yet, both are witnessing substantial decreases in auto thefts.

In Colorado's case, all vehicle thefts are felonies, regardless of vehicle value, under a law that went into effect in 2023. The law also levies stiffer punishments for repeat offenders.

Meanwhile, Nevada witnessed success through enhanced law enforcement measures, such as educating the public on doing software updates on their cars and issuing free wheel locks to drivers.

The 10 most stolen vehicles

Along with where you live, the type of vehicle you drive can also attract more thieves.

Here's a look at the 10 most stolen vehicles last year:

Older models of the Hyundai Elantra didn't feature engine immobilizers, anti-theft measures used to thwart car thieves from bypassing the car's ignition switch.

Meanwhile, the Chevy Silverado was one of two pickups to make the list, as later models are easy to hot-wire, and parts remain extremely valuable.

Having one of these vehicles can elevate your risk of having your vehicle stolen, and that could reflect on what you pay for your auto insurance.

Two factors underwriters examine are your location and the type of vehicle you drive. If you live in a high-risk area or drive a car susceptible to theft, it could spike your rates.

It's imperative to shop around a few weeks before your policy renews to ensure you're receiving the best deal.

Another way to lower car insurance costs is by installing anti-theft equipment in your vehicle.

Behaviors to prevent auto theft

Despite a decrease in auto thefts, there are several behaviors to employ to reduce your risk of having your car stolen.

The most important thing is to refrain from leaving anything valuable in your car, such as money, keys, high-priced items such as electronics or anything else that could trigger a thief to think it's a crime of opportunity.

Another way to deter thieves is by installing anti-theft measures, such as a steering wheel lock. As its name implies, it prevents your vehicle from turning, making it a less desirable option for thieves looking for a quick score.

More sophisticated thieves use relay devices to access your car. They target cars with keyless entry systems, allowing you to start your car or lock/unlock it without a physical key.

They'll use a signal repeater to detect the key fob's signal. Once intercepted, the signal travels to a device held by the thief, which they can use to unlock and start your car.

One smart way to prevent thieves from achieving this is with a Faraday Box. These prevent thieves from accessing the signal from your key fob, and they're more durable than pouches, which wear down over time.

Overall, there's good news in that auto thefts are slowing down substantially. Advancements in anti-theft measures have made it more difficult for thieves to access vehicles.

By employing these best practices, you can lower your car's chances of being targeted by thieves — and you might earn an insurance discount in the process.

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General Motors (GM) reported in second-quarter results on Tuesday that tariffs cost the company $1.1 billion. Despite that hit, the carmaker insists it will not pass the cost to consumers by raising prices on cars, which should be welcome news if you're in the market for a new car.

"When you look at the first quarter, pricing was up; second quarter, pricing was essentially flat. But we've banked some of those gains, and that's part of our 30% offset that we've talked about," CFO Paul Jacobson said on CNBC's Squawk Box.

"So we don't expect any specific price increases related to tariffs, but certainly pricing and stability is important for us as we continue to manage our inventories with discipline and really drive the business for cash flows."

President Donald Trump instituted a 25% tariff on all imported cars and auto parts, with some particularities including that vehicles assembled in the U.S. are eligible for partial tariff rebates. The tariff went into effect in late spring.

While GM, which includes Chevrolet, Buick, GMC and Cadillac, has manufacturing sites in the U.S., the company also has other global operations. GM seems to be taking efforts to mitigate long-term impacts of tariffs: The company announced a $4 billion investment in U.S. manufacturing plants in June that will go in part towards the production of the gas-powered Chevrolet Blazer and Equinox, which are currently produced in Mexico, CNBC reported.

Looking ahead, GM plans to invest between $10 billion and $12 billion annually through 2027, with a focus on boosting U.S. production in key states: Orion Assembly in Michigan, Fairfax Assembly in Kansas and Spring Hill Assembly in Tennessee. This initiative is part of a larger strategy to improve operational efficiency and strengthen its manufacturing presence in the U.S.

On Squawk Box this week, CFO Jacobson reiterated that consistent pricing is a key component of GM's strategy. So, whether you're in the market for a new car or if you already own a GM car, the company aims to keep cars' values and prices predictable.

"While we've seen a lot of heavy incentives from our competitors over the last few years, we've maintained a lot of pricing consistency," he said. "And we think that's important for our customers to make sure that they can count on us, but also to make sure that we're watching and monitoring residual values, because our customers do hold on to these vehicles and want to make sure that they maintain their value."

Overall, car prices have not gone up yet since tariffs were introduced, but discounts have started to become less generous, according to Kiplinger Letter managing editor Jim Patterson. He expects sticker prices will eventually rise by 4%-8%.

Another concern for car shoppers is that cheaper models — those in the $30,000 range — could become more scarce since they are often imported and have lower margins, Patterson reported. The battery-powered Chevrolet Equinox, which is in that price range, was the third best-selling electric vehicle in the U.S. year-to-date, GM reported in its earnings.

Keep in mind, there's been a rush on EVs since the "big, beautiful" bill put an expiration date on EV tax credits. You can now only get a credit before September 30 of this year. Basically, whether you're in the market for an electric, hybrid or gas-powered car, you may want to think about shopping sooner rather than later as these credits go away and tariffs come into play.

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To help you understand what is going on in the economy and beyond, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…

Just as it was getting back to normal, the car industry is in for more upheaval as automakers navigate new tariffs and big changes to how Washington subsidizes vehicle purchases. Here’s what car shoppers can expect this year.

Sticker prices up, discounts down
Prices aren’t up yet. But they will be soon. Automakers have mostly been standing pat, not passing along tariff costs as they sell inventory that was imported or assembled before the tariffs hit. Most have tried to retain market share, eating costs and hoping the levies on cars, parts and metals get negotiated down.

Assuming that doesn’t happen, look for sticker prices to rise by 4%-8%. Discounts, which had been nearing pre-COVID levels, are becoming less generous. Expect that to continue as automakers figure out which models they are able to raise prices on, which ones to hold the line on, etc.

Some cheaper models may fall by the wayside since they tend to be imported and have lower margins. That’s bad news for budget-minded consumers. Cars in the $30,000 range were already becoming scarce as automakers focus on pricier, more lucrative models.

Expect overall sales to slow in the second half of this year, after surging in the spring because of shoppers rushing to buy before auto tariffs took effect. For the year as a whole, look for about 15.7 million sales, similar to last year’s level.

Demand for used, electric and hybrid cars
With prices of new cars rising, used cars will be in higher demand. That is pushing up their prices, which are running 3% above a year ago for similar used models. That’s also a switch: Early this year, used car prices were off by about 1% from a year earlier. If you’re open to buying a used electric vehicle, note that their supplies will pick up rapidly next year because of the jump in leasing that took place starting in 2022. 100,000 additional EVs will be coming off lease soon.

The just-passed tax law will spur significant shifts in the mix of car sales. Expect EV sales to fall notably after the $7,500 federal tax credit expires on September 30. They had already cooled off, despite a proliferation of new electric models, with about 75 on sale (about five times as many as automakers offered five years ago). Manufacturers will have little choice but to offer juicy discounts to move electric cars.

Hybrids, by contrast, will remain popular, accounting for 12% of total sales. Consumers continue to gravitate to them for their fuel economy and simplicity vs EVs. That bodes well for Toyota, which accounts for half of hybrid sales, and Honda (20%).

Tax break on car loans
Even more consumers are likely to finance new cars now, given the provision in the tax law making interest on car loans tax-deductible. That won’t save most buyers a great deal on the cost of their loan, but with affordability foremost on buyers’ minds, even a modest tax break should sway more folks to finance vs leasing or paying cash.

This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.

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Just before the long July 4th weekend, Nissan dropped some major news: the company is recalling more than 440,000 vehicles due to an engine defect that could cause cars to suddenly stall or even catch fire.

And yes, the timing has a lot of drivers frustrated, especially those trying to get out of town or planning long-distance trips.

According to documents filed with the National Highway Traffic Safety Administration (NHTSA), the issue comes down to a faulty engine bearing that could wear down too quickly or break apart completely. If that happens, it could lead to sudden engine failure, which is obviously dangerous if you’re driving at highway speeds.

There haven’t been any reports of injuries, but four vehicles have reportedly caught fire and Nissan says it has received over 1,000 warranty claims linked to the issue. The company is still working on a fix.

Which Nissan and Infiniti models are recalled

The recall impacts four model lines spanning several production years:

• 2016–2020 Nissan Altima
• 2017–2021 Nissan Rogue
• 2017–2021 Infiniti QX60
• 2017–2019 Infiniti QX50
  

All affected vehicles are equipped with the same engine model (QR25DD or PR25DD) that may have improperly manufactured crankshaft rod bearings.

You can read the full recall notice here via NHTSA.

How to check if your car is part of the recall

If you own one of the models listed above, you should take the following steps:

• Visit NHTSA.gov/recalls and enter your 17-digit Vehicle Identification Number (VIN)
• You can also call 1-888-327-4236 for more information
• Nissan will begin notifying affected owners starting in August 2025, with a follow-up notice once the repair is ready

What to do before the fix is ready

In the meantime, be alert for any symptoms like unusual engine noises, the check engine light turning on, reduced power while accelerating or stalling, especially if you're heading out on a road trip or driving in hot conditions.

If something doesn’t feel right, it’s worth scheduling an inspection at your local dealership or trusted mechanic.

While Nissan hasn’t yet said whether loaner vehicles will be offered, that may be an option once the repair program officially begins. Keep an eye on your mail and inbox for updates.

Also, consider signing up for email alerts through NHTSA or your dealership so you’ll be notified as soon as the fix becomes available. That way, you won’t have to keep checking manually.

Nissan has had multiple recalls this year

This is the third major recall Nissan has issued in the past year. In late 2023, the automaker recalled over 236,000 Sentra vehicles for faulty tie rods, and in early 2025, it announced a recall of over 90,000 Rogues for a separate issue tied to backup camera malfunctions.

The latest recall has frustrated many consumers who rely on these vehicles for daily commutes and summer travel. Frequent recalls like these can not only shake consumer confidence but also impact resale values, lead to service delays and make it harder for families to rely on their vehicles.

While recalls are issued to keep people safe, the growing frequency highlights the importance of automakers addressing root causes early and communicating clearly with drivers.

What to do if your Nissan or Infiniti is affected

If you own one of the affected Nissan or Infiniti models, don’t wait for a recall letter to arrive. Be proactive: check your VIN to see if your vehicle is included, monitor your car’s performance, and sign up for email alerts from NHTSA to stay informed.

As inconvenient as it may be, recall repairs are always free, and in this case, could protect you and your passengers from serious harm.

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In 2024, more than 850,000 vehicles were stolen, according to the National Insurance Crime Bureau (NICB).

This year, my car will be among 2025’s tally, as it was stolen recently.

There seems to have been a crime wave in my city, with at least four friends experiencing auto theft in the span of a few weeks. I was hesitant to share personal details online, but I decided that if my article can help even one person prevent a costly, stressful theft, then it’s worth it.

Here’s what I learned from having my car stolen, and how you can try to keep it from happening to you.

Simple steps to reduce your risk of auto theft

When it comes to preventing car theft, some steps are obvious — such as not leaving your keys in the car or letting it run unattended on the street.

But others aren’t as well known. One of the simplest and most effective things you can do is buy a Faraday pouch or case for your key fob. This small $5 investment can block thieves from hacking your key signal.

In recent years, Kia and Hyundai models have been frequent targets of key fob hacking, and in 2023, they topped the list of most-stolen vehicles, according to the National Insurance Crime Bureau (NICB). Both automakers have taken steps to address the issue.

If you often forget to lock your car, a digital car key or a remote-locking app on your phone could be a helpful solution. Some apps and devices can even automatically lock your car when you walk away or move out of range, adding an extra layer of security.

Anti-theft devices that help deter car thieves

Additionally, cars come with, or can be equipped with, a wide variety of anti-theft features. If your car doesn’t have any of these features, do some research to determine which ones you could add.

Some onboard anti-theft features include alarms and GPS trackers. An easy one to add yourself is a steering wheel lock. Some vehicles have immobilizers that prevent them from being hotwired, hood locks, battery disconnect switches and pedal locks.

If your car doesn’t have an onboard GPS tracker, hide an AirTag, Tile or other tracker inside the car to increase the chance of recovery. They cost about $20 and can make all the difference. This is often one of the first things police will ask about because it’s the best and easiest way to locate the vehicle.

Don’t forget to let your insurance company know that your car is equipped with anti-theft features because you might also qualify for a discount.

What your insurance covers if your car is stolen

Speaking of insurance, most auto policies offer little to no coverage for personal items stolen from your vehicle.

For example, if your car is stolen with your wedding ring inside, the ring likely won’t be covered unless it's protected under your home insurance or you've added extra coverage to your auto policy. That’s why it’s important to review your home insurance as well, since many policies cover personal belongings stolen from a car.

If you have a newer car, it might be worth considering general asset protection (GAP) insurance. Standard auto insurance only covers the car’s current market value — not what you still owe on your loan.

For example, if your insurer values your stolen car at $20,000 but you still owe $30,000, you’d be responsible for the $10,000 difference unless you have GAP coverage. Keep in mind that insurance adjusters often undervalue stolen vehicles, which makes GAP coverage even more important.

According to Car and Driver, GAP coverage averages $20 to $40 a year when added to an existing auto policy, depending on the insurer. You can also purchase it for a flat fee from a lender or dealership, usually for a few hundred dollars, but keep in mind, you’ll likely pay interest on that amount if it’s rolled into your loan.

It’s also a smart move to add rental reimbursement coverage to your auto policy. Many insurers offer this optional add-on to help cover transportation costs while you shop for a replacement vehicle. Just be aware there’s usually a daily cap.

For example, my insurer covered $40 per day — only half of what it actually cost to rent a car — but that coverage still saved me more than $1,000.

Explore some of today's best car insurance offers with the tool below, powered by Bankrate:

What to do immediately after your car is stolen

The number one thing to remember if your car is stolen is to report it immediately. Don’t wait. Here’s a list of all the entities you should notify:

• Police
• State DMV or equivalent agency (e.g., Secretary of State)
• Your lender or leasing company
• EZ-Pass or the operator of any other electronic toll collection device you might have
• Your insurance company — If you delay, your insurance claim could be denied

If your wallet was in the vehicle, don’t forget to contact your credit card companies, banks, etc. Let the DMV know your license was stolen, as well.

Final thoughts on theft recovery and prevention

If your car is stolen, it’s important to be patient and prepare to be frustrated. In many cases, police won’t do much beyond flagging the vehicle and plates as stolen.

However, in 2023, more than 85% of stolen vehicles were recovered, according to the NICB. As further incentive to report your vehicle stolen immediately, cars reported stolen in the first 24 hours had a 34% same-day recovery rate that year.

To improve the chances of recovering your stolen vehicle, fully cooperate with the police and provide as much detailed information as possible. Stay proactive by checking in regularly — law enforcement may not always notify you if your car is found, especially if it’s recovered in another county or state.

If you’re not getting support from your local police department, consider reaching out to county or state law enforcement. You can also contact local elected officials for help. A friend of mine, whose car was stolen and GPS-tracked shortly after mine, was able to get assistance from state authorities when city police wouldn’t act on the vehicle’s location.

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If you drive a Ford or Lincoln made in the last few years, it might be time to check your dashboard or at least your inbox.

Ford has announced a major recall affecting more than 1 million vehicles due to a glitchy rearview camera system that can freeze or fail to display altogether. In a world where rear cameras are more than just a luxury (they’re a critical safety feature), this glitch could spell trouble when backing out of your driveway or navigating tight parking spots.

The issue has caught the attention of the National Highway Traffic Safety Administration (NHTSA) and prompted Ford to issue one of its largest software-related recalls to date.

Here’s what drivers need to know about the Ford rearview camera software recall, how to check if your vehicle is on the list and what steps to take next.

Affected vehicles: Is yours on the list?

If you own one of Ford’s bestsellers from recent model years, there’s a good chance your vehicle is part of the recall. Affected models include:

• Ford Explorer (2020–2023)
• Ford Mustang (2020–2023)
• Ford Bronco (2021–2023)
• Ford Edge (2020–2023)
• Ford Escape (2020–2022)
• Lincoln Aviator (2020–2023)
• Lincoln Corsair (2020–2022)

What’s behind the glitch?

At the center of the recall is a rearview camera software glitch that causes the image to either freeze or not display at all when the vehicle is put in reverse.

While that might sound like a minor hiccup, it violates federal safety standards that require a clear rear view image. It could also make parking lots and driveways much riskier.

The NHTSA has received numerous complaints from Ford 150 drivers specifically who were experiencing the problem. The company says no injuries have been reported, but the NHTSA has deemed the malfunction serious enough to warrant a full-scale safety recall.

In total, the recall affects about 1.1 million vehicles, making it one of the largest tech-related recalls for the automaker.

How to get it fixed without leaving your driveway

The good news? For many owners, the fix is as simple as a free software update, and Ford is offering over-the-air (OTA) installation for compatible vehicles. OTA updates are delivered wirelessly, much like how smartphones receive software updates. That means you may not even have to visit a dealership.

For vehicles that can’t receive OTA updates, local Ford and Lincoln dealerships will perform the software fix at no cost.

To check your status:

• Enter your VIN at NHTSA’s recall lookup tool
• Use the FordPass or Lincoln Way app for real-time alerts and support
• Contact your local dealership if you haven’t received a notice but suspect your vehicle may be involved

Is it still safe to drive?

Technically, yes, but be extra cautious. A non-functioning rearview camera compromises one of your key visibility tools. Until your update is complete, make sure to double-check surroundings using mirrors and direct sight when reversing.

This is especially important if you’re in neighborhoods with kids, pets or tight parking spaces where every inch counts.

This isn’t Ford’s first experience with camera-related recalls. A similar issue back in 2021 affected more than 600,000 vehicles. As cars continue to rely more heavily on software and sensors, reliability issues like this are becoming more common and more urgent.

What makes the rearview camera software glitch especially concerning is that it disables a feature many drivers rely on daily. It’s more than just an inconvenience; it could increase the risk of accidents, particularly for those who depend on visual technology over mirrors or backup sensors alone.

The bottom line

If your vehicle is impacted by the Ford rearview camera software recall, don’t put off the fix. It’s quick, it’s free and in many cases, it can be done remotely. More importantly, restoring full rear visibility could protect you, your passengers and those around your vehicle.

Recalls like this are a reminder that car maintenance isn’t just about oil changes and tire rotations anymore. Software updates matter, too.

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Car features have come a long way.

Gone are the days when you needed a buddy system or flexible giraffe neck to help see enough to wedge into or out of tight spaces. Now, vehicles do the work for you — and not just when it comes to parking.

The most encouraging car innovation trends continue to emphasize safety. From forward collision warning and pedestrian detection to lane-keeping assist and blind-spot monitoring, today's vehicles are more protective than ever — and getting smarter every day.

These systems help drivers stay aware of their surroundings, prevent accidents and make driving less stressful. It's hard to imagine life before them — but it also makes us wonder: What else are we soon going to be taking for granted?

Here are five futuristic car technologies that are no longer reserved for luxury models and are becoming increasingly common on the road today.

1. Self-driving car technology

The concept of self-driving cars goes back to the 1920s.

Former U.S. Army electrical engineer Francis P. Houdina invented a radio-controlled car using a 1926 Chandler. Radio signals operated the car's motor and steering, while a second vehicle followed behind, transmitting the commands that guided the Chandler's movements.

We suspect that if Houdina were alive today, he'd be amazed to see how far things have come.

California-based Waymo is one of the first autonomous ride-sharing services. After conducting millions of miles of road testing and even more hours of simulation, the service offers a dependable and safe way to get around without you having to press your foot on the gas, steer, even make small talk with a driver.

Before introducing the service to a new city, the Waymo Driver takes in every detail, from signs and crosswalks to road orientation. Instead of using GPS to navigate, Waymo uses detailed, customized maps, artificial intelligence (AI) and real-time sensor data to ensure your ride is safe.

One of the biggest concerns with self-driving cars isn't the actual car, but other drivers on the road. Predicting the unpredictable can be next to impossible, but Waymo has found a way to make it work. It uses data gained from testing to predict how other drivers, pedestrians and other road obstacles will move. It factors in all possible paths in real time to avoid hazards and get you to your destination safely.

Currently, Waymo is only available in Phoenix, San Francisco, Austin and Los Angeles, with future launches slated in Miami and Atlanta. If you live in one of these cities, you can download the Waymo app and experience the future today. Pricing is similar to other rideshare apps and the service is slick and efficient, as you might expect from a robotaxi.

Other technology companies are rapidly moving into this space. Hyundai has recently announced a partnership with Avride to make its own fleet of robotaxis, and Elon Musk has announced that the first Tesla robocars will launch in June 2025 in Texas.

Driver assistance features in your car
Car manufacturers, meanwhile, are perfecting their own versions of advanced driver-assistance features — such as lane centering and hands-free highway driving — across more models and trim levels.

Ford BlueCruise is a driver-assistance feature that can steer, brake and accelerate while you enjoy your drive hands-free. Other car manufacturers such as General Motors, Tesla and BMW also have installed similar driver-assistance technologies.

All this shows that while self-driving cars — and the related technological advancements — are the future, you'll be able to experience it sooner than you think.

2. Biometric car keys

Keys? Those are a thing of the past. But soon, key fobs might be gone.

For example, the 2025 Hyundai Genesis GV60 allows you to unlock your car with your face. All you need to do is touch the handle to activate the door-mounted camera, show the camera your pearly whites, and the door opens for you.

It doesn't stop there. Once you're inside the spacious and stylish cabin, you can start your vehicle using fingerprint authentication.

Hyundai isn't the only manufacturer offering this technology. Tesla has used biometrics for years. Their Model 3 and Model Y have a facial recognition camera that recognizes who's driving and sets preferences, such as seat location, cabin temperature and more.

Meanwhile, Subaru's DriverFocus uses an infrared camera to recognize and set driver preferences. It can also determine when a driver is distracted and alert them. It won't be long before more cars have this accessibility.

3. EV range choice, at last.

One of the biggest car innovations concerns the EV market. Unveiled at the 2025 New York auto show, the 2026 Kia EV4 is a perfect example of how far electric vehicles have evolved.

"The 2026 Kia EV4 has two battery capacities, one that will run 300+ miles and another that will be in the 225 to 250 mile range," says Brian Moody, an executive editor with Autotrader. "A smaller range makes sense when the price is right."

This smaller range is in line with other EV models available now, which have average ranges of 235 to 300 miles per charge. What makes this so noteworthy is the fact that you, the customer, can choose. Unlike the Tesla Model 3, which comes with one battery option, the EV4 offers customers a choice of battery size, and the lower-range battery option comes at a lower-price entry point.

Along with flexibility in range choices, Kia expedites charging batteries. DC quick-charging takes you from 10% to 80% in 29 minutes with the light battery and 31 minutes for the Wind & GT-Line battery, with a 400V dedicated platform for EVs.

That's competitive, but generally slower than Tesla's superchargers, which can give their vehicles 150 to 200 miles of juice in 15 to 30 minutes. While Tesla currently leads in ultra-fast charging speeds, Kia is narrowing the gap. Expect to see more manufacturers offering different battery options for their EV models, giving customers more affordable entry points into the market.

4. Adaptive technologies

To get the best safety and technology features, you'd usually have to shell out some serious dough for an upgraded package, which "can cost between $2,500 to $5,000, and in some cases, up to $10,000," says Moody.

Adaptive technologies run the gamut from cruise control, hazard detection and accident prevention (applying emergency braking when hazards or pedestrians are detected.)

Subaru is one of the manufacturers bringing more of these features to more of its vehicles. One example is the installation of EyeSight on their manual sports cars.

Eyesight uses two front-facing cameras to scan the road for obstacles, pedestrians or anything else it deems a hazard. If it detects a hazard, the EyeSight technology can lower your car's cruise control speed or apply emergency braking.

Subaru's approach to offering more adaptive technologies in more models could signify a shift that other manufacturers follow, meaning you could have more top-of-the-line safety features without having to pay an upgrade fee.

Another nifty feature is AI voice assistants. Kia uses the SoundHound AI assistant, which they dub the "digital co-pilot" for your adventures. You can use the AI assistant to power certain car functions such as playing music, adjusting cabin temperature or getting directions.

As adaptive technologies grow and use more AI, you'll start seeing these features in more vehicles, even in base and midrange options.

5. AI-powered predictive maintenance

Modern cars now come with a wealth of technological features to help you stay informed about your car’s health and performance.

For example, General Motors uses OnStar, which sends drivers a vehicle condition report every month. This report uses an easy-to-understand color code to flag key systems such as brakes, oil life, engine performance, transmission and tire pressure.

Any area designated in green means the part is in good shape. Yellow indicates you'll need service soon, while red requires prompt attention.

OnStar will also notify you when you need to bring your car in for service and can help you locate the nearest dealer. In 2025, all General Motors models come equipped with OnStar Basics, including Chevy, Buick and GMC.

While some vehicle manufacturers have had such features for a while, artificial intelligence (AI) is now taking vehicle maintenance to the next level.

AI predictive maintenance analyzes a range of data, including recalls, to determine if or when future problems could arise. It can predict when car parts will fail and alert you beforehand, so you can address problems before your vehicle breaks down.

Along with using historical data, AI analyzes real-time information gained from a vehicle's sensors to monitor engine, transmission, braking, steering and other performance components. This allows for more accurate diagnostics and timely alerts.

Altogether, AI can help properly diagnose any issues, or future issues, accurately — and it's more cost-efficient than traditional scheduled (or reactive) maintenance. Having this extra monitor not only makes your vehicle safer, it can extend its operating life, as well.

The bottom line

Car features have come a long way from rearview cameras. Features that once seemed futuristic, such as self-driving and adaptive technologies, are becoming more accessible every year.

EVs are also getting into the mix. Brands such as Kia are providing more ranges in their EV models to accommodate a growing base of prospective buyers, while biometric features help you start your vehicle with the push of a button.

As these innovations spread, they'll make even the most mundane commutes safer and more enjoyable.

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An interview with Brian Moody, senior editor of Kelley Blue Book, a resource for vehicle valuations and other automotive information.

In early April, 25% tariffs took effect on imported automobiles. What do you expect these tariffs to do to car prices?

Tariffs could certainly make car prices go up. But we don’t know by exactly how much, because it could vary from manufacturer to manufacturer. And within one manufacturer, it will vary from car model to car model.

We estimate that the price increase on many cars could be anywhere from 3% to 25%. We expect that 40% of cars with prices of less than $40,000 will face a direct impact, meaning there’d be no way to avoid a price increase on 40% of cars with prices under $40,000.

Will this affect only cars built outside the U.S.?

Most cars today are full of parts that have come from outside the U.S. So even if a vehicle is assembled here, other countries may produce the parts, which are also subject to tariffs.

Additionally, it’s very likely that manufacturers are going to spread out the price increases across all models, regardless of whether the cars were 100% built within the U.S. This is to avoid a dramatic impact on consumers.

How soon could prices rise?

I would guess May or June, but we don’t know. It will depend on some big factors, including demand, how the tariffs are applied and how much inventory is already in the U.S.

What advice do you have for new-car buyers?

If you’re in the market for a new car, speeding up the research process so that you can make a purchase sooner rather than later would be a wise thing to do.

Start looking into what you can afford, what’s available and what features you may want in a new car.

But I wouldn’t rush to make a major purchase based on news headlines, because things are changing more rapidly than usual.

What about used cars?

Something to keep in mind is that used-car prices are going to follow new-car prices. For context, about four or five years ago, during COVID, car manufacturers were building fewer cars because they thought there wouldn’t be demand for them.

As a result, there are now fewer used cars in the marketplace than there would be if manufacturers had maintained their output. Because of this reduced inventory, prices of used cars were already going to go up from about this time into 2026, no matter who’s president.

However, if demand increases on an already-low inventory, that could further push up used-car prices.

Will the cost of vehicle repairs go up, too?

Tariffs of 25% (took effect) on imported auto parts on May 3. Whether — and how much — repair costs rise depends on where the replacement parts are coming from and the cost of the parts to begin with.

We’re guessing that prices may go up on certain parts, such as engines, transmissions and powertrain and electrical components, with the possibility that price increases may expand to additional parts, too.

These increases would drive down demand and drive up supply. So plenty of those parts may be available if you want to pay up, but there could also be a pause in availability while suppliers figure out a pricing strategy that keeps them in business.

I would be more worried about long waits for repairs if suppliers delay shipping out parts while they determine their strategy. Or they may direct parts to higher-profit customers, which would likely be new-car manufacturers.

So if your car is due for maintenance soon, it might make sense to act now rather than wait.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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If you’ve been eyeing a new Ford lately, brace yourself — prices are going up. Ford recently announced that it’s raising the sticker prices on several popular models, citing rising costs from tariffs on imports from Mexico.

These tariffs are hitting the automaker hard, increasing manufacturing expenses and squeezing the supply chain. Unfortunately, that means higher costs are being passed on to car buyers.

If you’re thinking, “It’s not just Ford, right?” you’re correct. Other major car brands are dealing with similar challenges, but Ford’s reliance on Mexican imports means it’s feeling the pinch more than others. Tariffs and supply chain woes are driving up prices.

How tariffs and supply chain woes are driving up prices

Currently, the U.S. imposes a 25% tariff on imported vehicles and parts from Mexico. This increase affects everything from raw materials to finished components, pushing costs up across the board. It’s not just tariffs — global supply chain disruptions have been a persistent problem for automakers since the pandemic, raising prices for everything from steel to semiconductors.

As these tariffs continue, the costs are expected to be passed directly to buyers through higher sticker prices, hurting affordability.

Which Ford models are seeing price hikes?

While most Ford cars are built in the U.S., several popular models manufactured in Mexico are directly impacted.

Ford Maverick

Dubbed “America’s most affordable pickup,” the Maverick has been a favorite for budget-conscious buyers. Starting May 2, Ford has raised its suggested retail price by $600 to $2,000 for Mavericks built in Mexico.

Ford Mustang Mach-E

The all-electric Mach-E, also produced in Mexico, will see a similar price bump. For buyers drawn to this innovative EV, the price difference can be significant, particularly when combined with shifting incentives and rising EV costs across the industry.

Ford Bronco Sport

Another Mexican-made SUV, the Bronco Sport, joins the group with sticker increases in the same range.

While the price hikes vary by model and trim, the new tariffs have forced Ford to adjust prices mid-year, despite earlier reassurances that auto prices would remain stable in 2025.

According to statements from Ford reported by Reuters, the company isn’t passing on the full cost of tariffs to customers (yet), but these increases mark a shift.

The impact widens when you consider that economists estimate tariffs could add anywhere from $5,000 to $10,000 to the sticker price of imported vehicles, and $3,000 for domestic vehicles, according to the Kiplinger Letter Staff, depending on make and model.

How tariffs could impact your next Ford purchase

For buyers previously considering the Maverick or other imported Ford models as an entry-level pickup option, this tariff-driven surge could prompt a change in plans, including waiting for incentives or switching to different models.

Here are a few key things to watch out for in the coming months.

1. Sharp increases in retail prices

If you’re shopping for one of the affected Ford models, expect a jump in MSRP. Depending on the vehicle and trim, that increase may range from a few hundred dollars to thousands overnight.

This adjustment adds to typical mid-year pricing tweaks and local market markups.

2. Dealership inventory squeeze

Tariffs aren’t just driving prices up; they’re affecting availability. Many dealers are facing thinner inventories, with some models selling out faster as buyers rush to purchase before further increases.

3. Higher cost of ownership

Not only are upfront costs rising, but the prices of imported parts may also increase due to tariffs. Routine repairs and maintenance could become pricier, especially for vehicles dependent on Mexican-sourced components.

4. Market response and uncertainty

Ford isn’t alone. Other automakers with significant manufacturing or parts trails outside the U.S. are also revising prices, suspending financial guidance, or withdrawing from traditional forecasting as they wait for the dust to settle.

For instance, Ford paused its annual guidance due to unpredictable tariff effects and potential retaliatory moves from trade partners.

5. EV market turbulence

The Ford Mustang Mach-E, a key player in Ford’s electric vehicle ambitions, sits at the crossroads of tariff disruption and the broader struggles facing the EV market. Ford projects up to $5.5 billion in EV and software losses this year, on top of more than $10 billion in losses since 2023.

The price hike on the Mach-E comes as EV buyers face shrinking incentives and rising prices across the segment.

While the long-term outcome remains uncertain, automakers like Ford are adapting, absorbing some costs and reimagining supply chains, but consumer choices and prices are changing overnight.

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There's nothing like cruising: Your favorite tunes are playing and you’re just vibing in the moment. It's one of the best parts of owning a vehicle.

Of course, car ownership isn’t all smooth rides — there are some less desirable aspects, too. One of the biggest headaches? Recalls.

Carfax reports 57.7 million vehicles on the road today have an open recall. These recalls can be issued for many different reasons, from faulty equipment to programming coding errors.

While recalls might have a somewhat thorny reputation, there's more to the picture. "Recalls are a good thing, because it means the system works as designed," Brian Moody, an executive editor with Autotrader, tells Kiplinger.

He notes that recalls often address issues that "the average person" might not have even noticed. While one or two recalls over a car’s lifetime isn't a big deal, frequent recalls could be a sign of a reliability issue. And if you plan to buy a luxury vehicle, peace of mind is vital before paying that premium.

That’s why knowing which luxury brands are less susceptible to recalls can help you avoid frequent trips to your mechanic — and enjoy your ride with greater confidence.

Which luxury vehicles have the fewest recalls?

To find top cars with the fewest recalls, I started with a recent iSeeCars study that analyzed data from the National Highway Traffic Safety Administration (NHTSA) for the past 10 years for vehicles in each luxury segment.

The study calculated how many recalls each model received and projected the average number of recalls per year for each vehicle, giving shoppers a sense of ongoing reliability, as the lower the number of expected recalls annually, the better.

I also combed recall data from Cars.com to find a reliable performance car selection to round out the top six.

With that, here are luxury cars with the fewest recent recalls:

Not surprisingly, you'll find some commonalities among the data. Lexus and Mercedes-Benz come out as some of the most reliable luxury brands you can buy.

The Lexus IS 300 starts from $41,610 and features sporty handling and fast performance, thanks to the optional 260-horsepower, turbocharged engine that transforms mundane drives into heart-pounding adventures.

The stylish SUV has the Lexus Safety System 2.5, including lane-tracing assist, a pre-collision system with pedestrian detection, blind spot monitor with rear cross traffic alert and intuitive parking assist, which uses sonar sensors to help you better detect obstacles around you as you maneuver to park.

Meanwhile, the Mercedes-Benz GLA class only has five recalls per decade, meaning you'll average one every two years. The GLA SUV comes comfortably equipped starting from $43,000.

The dual 10.25-inch screens give it a sports car vibe. Adding to its allure is a compact, but capable 2.0L engine delivering up to 221-horsepower and the dual-clutch, eight-speed transmission offers a responsive driving experience from hugging curves to accelerating on the open road.

On the safety side, this SUV comes with active brake assist. How it works is it uses radars to measure the speed of vehicles ahead of you and if it detects a collision could be imminent, it slows down your vehicle to operate at a safe distance behind the drivers in front of you.

Meanwhile, I also wanted to add a reliable super-performance vehicle to the list. In the end, the Maserati GranTurismo had only six recalls in the past decade. That's impressive reliability to go along with unmatched performance.

Try this one on for size: The 2025 GranTurismo Modena generates up to 483-horsepower, capable of propelling this stylish ride from 0 to 60 miles per hour in a mere 3.7 seconds. Heart-racing performance works in tandem with the vehicle's muscular and agile design, meant to handle curves like a champ while having an iconic stance that separates it from the rest of the vehicles. The Modena comes comfortably equipped with a starting price of $158,000.

Which luxury cars have the most recalls?

On the flip side, the study also targeted some of the luxury car brands with a higher frequency of recalls in the past decade being a future predictor of more recalls to come.

Here's a look at the six luxury vehicles topping the list of recalled models:

While Tesla dominates this list, it's worth keeping in mind that some Tesla recalls can be addressed via some of the manufacturer's capabilities, including "over-the-air" updates, where you can download updates to fix certain issues.

Along with Tesla, Porsche and BMW had multiple models making the list.

How do you know if a vehicle has recalls?

Before buying any vehicle, it's a good idea to conduct recall research. Obtain the vehicle identification number (VIN) of the vehicle you're considering, then visit the NHTSA's website to see if any current recalls exist.

You can also use the NHTSA's interactive database to research recalls by brand.

Doing the research ahead of time helps you see which brands are more reliable. That way, your mechanic becomes a distant memory and not a frequent destination.

Other recall notification tips include:

• Update your contact information: If you move, "contact your local dealer and let them know you're new to the area and ask them to run a recall check on your car," advises Moody. "Ask them to keep in touch if any recalls arise in the future."
• Make sure to check your renewal paperwork: Some states, like Ohio, will include any active recalls associated with your vehicle on that paperwork.

The bottom line on car recalls

While vehicle recalls are a basic part of car ownership, they're also one of the least fun aspects. And frequent trips to the mechanic can be less than confidence-inspiring, especially if you paid for a luxury car.

If you're looking to buy a new ride in the near future, the study from iSeeCars highlights rides that are least likely to be plagued with recalls. And remember, keep your information updated with your dealer, so if a rare recall does arise, you can address it promptly.

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It's all over the news – as of May 7, you'll need a REAL ID to fly and enter some government buildings. If you haven't gotten one yet, or yours is set to expire, you might dread a trip to your local Department of Motor Vehicles (DMV).

However, if you're a member of the American Automobile Association (AAA) and you live in a participating state, you may be able to get your new, compliant driver's license without the hassle.

We'll share which states have AAA offices that provide the service and explain what you need to do before your visit. That way, you can cross this task off your list and keep flying domestically without worry.

What you need to do to get your REAL ID through AAA

Here's what you need to do to get your REAL ID through your local AAA office:

1. Contact the branch to verify the services offered and learn the requirements to receive them. They may vary from location to location.
2. Make a reservation. Reservations must be for one person and one service at a time.
3. Gather the required information, such as proof of identification. Depending on your state's processes, you may need more documentation for a REAL ID than you did for your previous driver's license.
4. Fill out the paperwork in advance. Ask your AAA office to email you the forms when you call to verify services.

Please note: Some offices may require AAA membership to receive these services or charge an additional fee to non-members.

Other AAA services

If you're a AAA member, are you taking advantage of all the perks? Besides the DMV services available in select locations, here's a snapshot of the benefits you may have access to:

• Roadside assistance, towing, tire changes, fuel delivery, locksmith services, vehicle extrication and battery charging
• Discounts on auto repairs, gas, dining, shopping, travel and more
• Travel planning services and travel insurance
• Passport photos
• Identity theft protection

AAA membership includes a variety of services that go beyond DMV assistance and travel perks. Members can access financial services like auto loans, credit cards, and car buying assistance, as well as insurance options including auto, home, and life insurance — sometimes at discounted rates.

Additionally, AAA's Discounts & Rewards program offers savings at popular retailers, restaurants and entertainment venues. Another benefit is AAA’s identity theft protection, which includes monitoring and resolution services to help protect personal information. These resources can be useful in case of a data breach or fraudulent activity.

Whether you're looking for roadside assistance, travel planning or financial services, AAA membership provides a range of options that might be worth considering.

Your benefits may vary based on your membership level and location. Check with your local AAA office to learn more.

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One of the toughest decisions older drivers have to make is when to hang up the keys. For many people, giving up driving means losing part of their freedom.

But while some people have to make the tough decision to give up driving due to issues with vision, reflexes, or other health matters, you may decide to unload your car for financial reasons. As you can see in the table below, over 41% of American households have only one car or none at all. So, for a good portion of the country, having fewer vehicles is a viable option (when it's a choice). And there can be big benefits involved.

Source: U.S. Census.

The upside of being car-free (or down one car) in retirement

The Bureau of Labor Statistics reports that as of 2022, transportation costs accounted for about 14% of household spending among Americans ages 65 and over. Average spending in that category was $8,172 that year.

But many older Americans report being cash-strapped. A good 59% have concerns about their finances, according to MedicareFAQ. And only 46% agree that they’ve managed to save enough for a comfortable retirement. Unloading a vehicle could free up loads of money in older people’s budgets, especially given the high cost of owning a car today.

AAA reports that it costs $1,024.71 per month, on average, to own a new vehicle. And while it's not a given that you’re shelling out a similar amount each month — especially if you have a paid-off vehicle or an inexpensive car — you’re probably spending a decent chunk of money nonetheless on fuel, registration fees, maintenance, and insurance.

Speaking of insurance, drivers over age 74 tend to pay higher car insurance rates than most other age groups. Even if you only use your car occasionally, you may be paying a small fortune for auto insurance, which is yet another reason to consider dropping it.

Plus, giving up a car means having one less item to worry about or maintain. If you live in an area where you have to circle around for parking each time you take a drive, there may come a point when you decide you’re tired of that routine.

It’s an especially good time not to have to worry about vehicle maintenance, given recently introduced tariff policies. As Craig Edmonds, President of asTech, explains, tariffs on imported vehicle parts, such as sensors, bumpers and other components, could drive up the cost of these parts. The result? Even routine collision repairs could become more expensive.

Moreover, some of the tools and equipment used to diagnose and calibrate modern vehicles properly also rely on imported components.

"Tariffs can raise those equipment costs, which may be passed down through repair costs," he says.

Is it possible for you to give up a car?

There’s a difference between giving up a car in retirement and being a car-free household. If you’re a two-car household now, giving up one car and sharing the remaining one could be a reasonable compromise. You’ll enjoy cost savings with the convenience of having a vehicle for errands and outings.

But if money is tight and you live in a walkable area, or one with ample public transportation, then going completely car-free could be an option. This clearly won’t work if you’re deep in suburbia or a rural area. But depending on your location, you might have an array of options for getting around. For example, if you only need a car occasionally you could explore getting a short-term rental Zipcar.

Of course, the more travel you can do on foot, the less you’re apt to spend. But even if you have to spring for the occasional rideshare, you could end up coming out way ahead financially. And many cities offer discounted fares for older riders on public transportation.

Let’s say owning a car costs you half of what the average new vehicle owner spends today, or roughly $500 per month. Even if a round-trip rideshare costs you $60, and you take one every week, you’re still ahead by the tune of more than $250 monthly, or $3,000 per year.

Plus, giving up a car might inspire you to walk more and be more active. That could lead to improved health.

Another thing to consider is that some independent living communities offer shuttle services, providing easy access to town centers and other off-site attractions. Giving up a car may be more than feasible if you move to one of these communities later in life, especially if you have access to on-site meal services or grocery delivery.

Finally, if you’re a retiree who travels a lot, that could make the case for unloading a car and falling back on alternative transportation during the periods when you’re home. That could be a combination of rideshares and relying on friends.

Is giving up a car desirable?

Giving up a car and the expense that comes with it in retirement may be doable, depending on where you live and what sort of shape you’re in. (If you struggle to walk long distances, you might need a car in the absence of being able to roam city streets.) But the question is, will it be a benefit — or an annoyance?

There’s an element of freedom that’s sacrificed when you no longer have constant access to a car. And it may require a change in mindset and routine that you’re not eager or willing to embrace later in life.

It’s impossible to consider the day-to-day logistics of giving up a car and what your lifestyle might look like. And also, recognize that if you can afford to have a car in retirement, you may decide to prioritize comfort over savings, which is perfectly fine. It’s when money is notably tight that you may need to push yourself to get on board with alternative means of transportation.

All told, you may find that giving up a car means unloading a lot of your financial stress. And that may be worth some inconvenience.

Read More

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If you're in the market to buy a car, you might want to doublecheck the make and model you’re considering before you sign the paperwork. If you don’t, your car insurance premium could suffer.

Average car insurance rates have been rising across the board. According to Bankrate, the cost of car insurance averaged $2,697 per year for full coverage — or $806 per year for minimum coverage — as of April. But some makes and models are more expensive to insure than others.

If you're trying to save money on a new car this year, choose one of the cheapest cars to insure — or at least avoid the makes and models with the highest car insurance rates.

If you want a more precise estimate of how much it might cost to insure your dream car, use the car insurance tool below, powered by Bankrate, to compare quotes:

5 Cheapest Cars to Insure

These are the five models with the lowest average car insurance rates in 2026, according to Bankrate:

Typically, any Subaru model will be among the cheapest cars to insure, because Subarus regularly earn some of the highest safety ratings. Models such as the Outback or Forester are also usually cheaper to repair.

Hondas also tend to hover at the lower end of the premium spectrum. Both makes are often cheaper to repair compared to others. Usually, Toyotas are near the bottom as well for the same reason, though their rates have bumped up just enough to push them out of the bottom five this year.

Ford models often see car insurance premiums right around the national average.

5 Most Expensive Cars to Insure

Here are the five models that carry the highest average car insurance rates, according to Bankrate:

The common themes among the most expensive cars to insure are high-end trim levels, luxury models or cars with expensive specialty parts. Tesla cars, for example, can be extremely costly to repair and harder to find mechanics who can make those repairs.

Other reasons cars like these come with higher premiums include an increased risk of theft or because they might be associated with riskier driving behavior, like speeding.

Other ways your car impacts your car insurance rates

The make and model influence your premium, but that’s not the only way the car you drive can change the insurance rate you pay.

Other factors about your car that insurance companies often use to determine your rate include:

• Vehicle age: The older your car is, the more its value has depreciated. Since the maximum an insurer will pay out for a car is its current market value, your premiums tend to go down along with your car’s value, one more reason to buy a certified pre-owned car. You’ll pay less on the car itself, and buying something that’s already a couple of years old could help push your premium down.
• Body style and trim: If your car is a coupe or convertible, expect to pay a little more for insurance. The same goes for sport or luxury trims. The cheapest style and trim to insure? SUVs and trucks with standard trim. This mostly comes down to the car’s value and the cost to repair it. Lower-cost cars that are cheaper to repair are also cheaper to insure.
• Technology and features: The advanced features showing up on newer cars are impressive, but they also tend to be more complex and made up of expensive-to-replace components. A backup camera alone isn’t going to make or break your insurance budget, but it’s worth thinking about any upgrades you’re considering in a new car. Is that advanced feature worth paying a little extra on your insurance each month? If it’s a safety feature, probably. If it’s heated seats and you live in Florida, maybe not.
• Safety rating: Every year, most vehicles are given a safety rating by organizations such as the National Highway Traffic Safety Administration (NHTSA). The NHTSA rating system is a 5-star system, in which more stars mean a safer car. Cars with a higher safety rating have a lower risk of injuring the driver and other occupants, which can translate to a lower insurance rate. You can look up the NHTSA rating of your car to see how many stars it’s earned.

Consider car insurance when shopping for a new ride

If you’re in the market for a new car this year, make sure to factor in the average cost of insuring the make and model you want to buy.

If your dream car is among the most expensive to insure, consider buying a certified pre-owned vehicle, as older cars tend to cost less to insure.

If that’s not an option, you might need to look for other ways to save on car insurance if you’re trying to keep costs down.

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Few industries are more exposed to the new tariffs being imposed by the Trump administration than the car industry. And for car shoppers, that vulnerability spells higher prices and leaner inventories of cars on dealer lots.

A 25% tariff on imported automobile parts went into effect May 3, joining a 25% tariff on imported cars that went into effect in April. The tariffs will create burdens of at least $2,000 per car, according to Anderson Economic Group, and car buyers are likely soon to see that ripple effect.

Shortly after those tariffs went into effect, it was reported that Ford is raising prices on its cars, including popular models. The reported price hikes are hitting models made in Mexico, with increases up to $2,000 per model — a good example of what many car companies are likely to do if the tariffs are not cancelled or substantially reduced.

Take a look at what you might see at the dealer in the near future.

Is there a truly American car?

To understand the impact of tariffs on car manufacturing, it’s important to realize that there is no such thing as a truly “American” car.

Ford, GM and the U.S. brands under the Stellantis umbrella, such as Jeep, Ram and Dodge, assemble many but not all of their vehicles in U.S. plants. GM, for instance, imports many of its popular Silverado pickup trucks from Mexico. And even cars assembled in, say, Michigan are full of parts and materials that originated outside of the U.S.

Likewise, many Asian and European brands assemble vehicles in the U.S., particularly in plants located in the South. But again, they rely on a complicated mix of domestic and imported parts and materials. Some automotive parts cross a border multiple times before ending up in a fully assembled car that’s ready to hit a dealer’s showroom.

Auto tariffs and their impact

President Donald Trump’s new 25% tariffs on auto imports, including imported parts that don’t comply with the rules of the U.S.-Canada-Mexico trade pact he negotiated in his first term, are already starting to raise prices on cars for sale on lots now, according to anecdotal accounts.

Other tariffs, such as those on imported steel and aluminum — two key car-making materials — are bound to push up manufacturers’ costs, too.

Trump announced the auto tariffs in late March, calling them "permanent." He did, however, make some amendments to the tariffs to create some carve-outs and give businesses time to adjust.

Estimates of how much more cars will cost vary, but the consensus among forecasters is that the impact will be painful.

How much will tariffs raise new car prices?

The staff of The Kiplinger Letter estimates that new car prices will rise by $5,000 to $10,000 in the case of foreign brands, and $3,000 for domestic vehicles.

In an analysis of the car-specific tariffs last month, Edmunds.com head of insights Jessica Caldwell noted that “it’s reasonable to expect that vehicle prices will rise, which presents an added challenge to an industry that is already grappling with ongoing affordability concerns.” Edmunds' data show that the average transaction price of a new vehicle in February was already $47,373, before any tariffs began.

Vehicle availability also figures to worsen, as some key components or materials that used to be imported become prohibitively expensive and manufacturers struggle to line up domestically sourced replacements.

One source at a major automotive supplier tells the Letter that identifying and testing vehicle parts from a new supplier can be a months-long process. And as we witnessed recently with the semiconductor shortage, lacking even one or two components can slow or idle assembly lines, leading to shortages of new cars for sale.

Will used car prices go up because of tariffs?

Price hikes and less inventory may push would-be buyers to look at the used market instead of buying a new car. That in turn spells higher prices and more competition there, too.

Because of the supply chain problems that hampered production of new cars a few years ago, fewer vehicles were leased at the time, and so fewer lightly used, high-quality leased vehicles will be entering the used market now, just as more shoppers will be jockeying for them.

What other car costs could rise with tariffs?

Even if you aren’t planning to buy a car – new or used – what happens on dealer lots is likely to affect you in other ways. For instance, the new tariffs on imported parts are going to push up repair and maintenance costs for all drivers, on everything from body work to routine brake jobs.

Car insurance premiums, which are already way up since the pandemic, figure to rise more, too, as repairing cars gets more expensive. Read more about by how much auto tariffs may raise your car insurance rates.

And even if you don’t own a car, but rent one when you travel, you can expect higher rental rates and fewer options at rental agencies.

Should you buy a car before tariffs have a bigger impact?

The bottom line: If you’re in the market for a car, already own one or ever plan to rent one, you’re going to pay for the new automotive tariffs one way or another.

But before you rush to the dealer before tariffs reverberate, keep in mind it's always best to buy a car because you need it, not because you're afraid the car you want could become too expensive in the future or unavailable altogether.

Even before the new tariffs, prices were already high and inventories were limited, so it paid to be flexible about what to buy — and what features you really prioritize. That will be even more true now as the auto tariffs affect the market.

Don't let fear pressure you into buying. Focus on your personal situation, whether you need a new car, and what you really need from that car.

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A text-based scam claiming to be about driving tolls has been going from state to state and shows no sign of slowing. For over a year, people have been receiving texts claiming they have an outstanding balance for road tolls, often a small amount.

The texts look like they come from E-ZPass and include a link to pay the outstanding balance. If you click on the link, you can quickly become victim to a scam and potentially face hefty losses, including monetary and related to identity theft.

In fact, the FBI has been warning about this scam since last spring. The warning says this is a "smishing" scam, a term that combines "SMS" (another term for text messages) and "phishing" — when scammers use fake messages to trick people.

What does the road toll scam text look like?

These phishing texts look like any other text you might get. They're from a phone number likely not saved as a contact in your phone, and the number is not always the same from person to person.

According to the FBI alert, the text says something like: "(State Toll Service Name): We've noticed an outstanding toll amount of $12.51 on your record. To avoid a late fee of $50.00, visit https://myturnpiketollservices.com to settle your balance."

The link is made to look like it comes from your state's toll service name.

What should you do if you think you got an E-ZPass scam text?

If you received a text that seems to be a scam, the FBI suggests you file a complaint with the Internet Crime Complaint Center (IC3) including the phone number you received the text from and the website URL used in the text.

The FBI further suggests you do the following:

1. If you have an account with a road toll company, check your account — going directly to their website.
2. Call that toll service's customer service phone number.
3. Delete the texts.

If you clicked on the link, the FBI recommends securing personal information and financial accounts and disputing any unfamiliar charges.

At this point, warnings have come out about these texts from all over the country. You should check with your state's service center for any suggestions specific to them. For example, the Virginia E-ZPass recommends forwarding the text to a federal spam service, while the New York State Thruway Authority suggests you can call customer service with any questions.

What can scammers get in the road toll phishing attack, and how can you counter it?

The easiest way to stop a scammer is to not click on any link from any unfamiliar phone number or email address. If you click on a smishing link and provide your personal information, scammers now have access to a host of options.

They can, for example, use the information provided to try to hack into your bank account with a username and password. They can also use your information to, say, apply for a credit card in your name, and then use that credit card as they see fit.

Scammers can also use your information to target other people in your life. For example, they can impersonate you in texts and emails to your family members, implicating them in new scams where they hand over money thinking it's for you.

Still, there are some basic safety measures you can take.

For example, you should immediately change the passwords on sensitive accounts like for your bank or brokerage. When you change a password, make sure it follows smart methods (rather than, say, a password someone with your basic information could easily guess) and use a different password for each account. A password manager like NordPass or 1Password can help both safely store your passwords and set passwords that are hard to hack.

Another safety measure is to freeze your credit, something Kiplinger has recommended many times before. That means that if someone tries to open a credit card in your name, for example, they'll meet a barrier. You can leave a freeze up permanently and only unfreeze it when you're applying for credit, and that will keep you safer from unexpected attacks.

In order to freeze your credit, you need to go through Equifax, Experian and TransUnion.

The advice for avoiding scams remains the same: If you get an unusual call, text or email, stop, breathe and think about it. Don't click links or hand over personal information. If a text claims to be from a specific service or person, pick up the phone and call that company's customer service line or that person's number to see if it's really them before you hand over any information that could end up damaging you.

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Few people think they will need to stop driving when they plan for retirement. After all, for many retirees, driving is the key to independence, allowing them to run errands, meet friends or spend some solo time in nature. Yet there may come a point when that’s the safest course of action. If you suspect your parent or spouse is in that position, you may be at a loss for what to do.

A 2013 Liberty Mutual survey found that 55% of adult children with senior parents were worried about their ability to drive safely. Yet only 23% brought up the issue. And 29% had no plans to have that conversation.

But that may be a mistake. An estimated 55% of men aged 85 or older continue to drive, says SeniorLiving.org, while 22% of 85-year-old women do the same. And while some older people may be perfectly equipped to drive later in life, it’s at least worth a discussion. Here’s how to broach it.

Before you ask them to stop driving, try this first

Driving ability tends to lessen with age, particularly when sensory, motor and cognitive abilities decline. Sometimes, a few tweaks could help older drivers stay behind the wheel safely. Hearing deficits, for example, are tied to poorer driving performance, according to a study by AAA. Getting hearing aids might enable an otherwise healthy older adult to keep driving. The same goes for proper eyewear or cataract surgery for vision.

Swapping an older car for one with modern safety features is also a potential solution. A vehicle with better headlights, lane-keep assist, blind-spot warnings and a backup camera may help older drivers.

Finally, taking a driver safety course may help older drivers learn defensive driving and even save money on auto insurance. AARP and AAA offer such classes. If you're really worried about yourself or your loved one, consider getting a driving evaluation and targeted help from the American Occupational Therapy Association’s Find a Driving Specialist website.

Understand the loss

Losing the ability to drive could impact an older loved one more than you’d think. Researchers at Columbia University’s Mailman School of Public Health looked at the wellbeing of older adults after they stopped driving and found that their health worsened in multiple ways after giving it up. They noted that depression symptoms nearly doubled among seniors who stopped driving.

Giving up driving was also associated with a 51% reduction in the size of seniors’ social networks. A 2024 Transamerica survey found that 17% of retirees feel isolated and lonely. Being physically cut off from friends and family due to an inability to drive could therefore really sting.

Start when the warning signs begin

It’s best not to wait until an older parent or loved one has an accident to discuss giving up driving. A better bet is to start when the warning signs are more subtle.

Some of these signs are obvious. Is the person's car newly scratched or dented? Have they received tickets for traffic violations or been in an accident? Have they driven somewhere familiar but become lost?

Less apparent signs include reduced vision and other sensory deficits. It’s also common for older adults to experience stiffness in their joints and muscles, which can lead to discomfort and possibly poor navigation skills.

When a loved one starts experiencing these symptoms, it’s time to start those conversations. But that doesn’t mean insisting they avoid getting behind the wheel altogether.

The transition may be easier if a loved one adjusts their driving habits before giving up driving completely. You may want to suggest that they stop driving at night, on the freeway or in bad weather to start with and take things from there.

If you want some objective measures of how their driving may be impaired, try the AARP SafeTrip App. It enables your smartphone to monitor your driving and provide an overall safety score.

Get backup

There’s no need to talk with a loved one about giving up driving alone. Bring their medical providers into the discussion and hear what they have to say. The news may be easier to swallow coming from a professional. You should also find out from your loved one’s provider if any medications they’re taking could lead to slower reaction times.

Talk up the savings

For retirees or older adults on a fixed income, giving up driving — and a vehicle — could actually spell financial relief, given the numerous costs associated with owning one. AAA puts the average cost of vehicle ownership at $12,297 per year.

Plus, people over 74 tend to pay higher car insurance rates than most other age groups, per SeniorLiving.org. Auto insurers commonly consider older adults a higher risk and charge them accordingly.

By contrast, it’s common for people at least 60 or 65 to have access to discounted fares on public transportation. Giving up a car and relying more on public networks could help an older loved one conserve funds.

Suggest alternatives

Not only might giving up driving stunt an older loved one’s social life, but it could also make it difficult for them to function and meet their daily needs. It’s important to offer concrete solutions for getting around town without having to get behind the wheel.

Public transportation is a viable option for some, but it's not available or reliable everywhere. And older adults who struggle to walk longer distances may have difficulty accessing public buses and trains.

Rideshares are another solution, but some people may hesitate to get into a car with a stranger. A licensed taxi or car service could be a more comfortable option.

But remember that a loved one might worry about the cost of using rideshare or car services too often. Be prepared to help them run the numbers and compare them to car ownership. They may find that using three car services per week costs less than, or is at least comparable to, owning a car when accounting for auto loan payments, insurance, maintenance, and fuel.

Another thing to remember is that some Medicare Advantage plans pay for transportation to and from medical appointments. This benefit is plan-specific, though.

Local programs. Some areas also have ride programs that offer older people the comfort of a private or shared vehicle at a discounted rate compared to hiring a taxi or rideshare. It pays to look into this option and find out how to register.

Finally, see if your local community center or place of worship has a volunteer program that helps older adults get around town. Your loved one may have access to free resources that make giving up driving easier.

The caveats: dementia and substance abuse

If your parent or partner has dementia, all bets are off. You can have doctors and therapists talk to them about the need to stop driving until the cows come home, but with dementia, they likely won't remember the conversation.

If they have an addiction issue, say alcoholism, they may drive while under the influence despite a doctor's warning or your best efforts to stop them. Alcoholism has a way of sneaking up on drinkers as they age, and the effects are more sharply felt the older you are. More than one in ten people over 65 reported binge drinking in the past month, according to a 2024 study.

Keep in mind that cannabis use has increased sharply among older adults, and has also been shown to impair driving, even if they are regular smokers.

Think your state's DMV will be of help? Guess again. As this list of driving laws for older drivers by state shows, most only require a vision exam. Someone with dementia, especially if they are with an aide or have mild cognitive impairment, could still renew their license. And unless someone with an addiction gets a DUI, the DMV likely won't be aware of their problem.

Some states require doctors or others to report dementia diagnoses to motor vehicle departments. In that case, the DMV may ask the person to be evaluated in person. Get some help from a geriatric social worker or an experienced caretaker.

If a doctor has evaluated your loved one and found they have dementia and should not drive, then you must develop a strategy to take the car away. For example, removing the visual cue of the car in the driveway can be helpful. You could experiment with parking the car in a different location, and if the driver asks where it is, explain that it's "in the shop for repairs," until your loved one gets used to being without a car.

For those with substance abuse, the solution is trickier. First, you'll need to get support for the addict and yourself, aside from driving. Ideally, you'd have an open conversation about the risks of driving, but if that doesn't work, you should seek professional help.

You're in a tough position. Whether you've been raised to respect your elders and find it difficult to step in as a "parent," or you've seen the decline of your spouse, give yourself some grace. But the bottom line is that you need to protect your loved one and others on the road.

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Toyota issued a press release on Thursday announcing they were recalling more than 140,000 of its Camry and Tacoma models. They also issued a recall for Lexus RX SUVs.

There were several reasons for the recalls. For Toyota Tacoma owners with four-wheel drive, the rear brake hoses are susceptible to damage if there's enough mud or debris build up in the vehicle's rear wheels.

Meanwhile, Toyota Camry and Lexus RX owners might have faulty second-row seatbelts. Toyota stated these could have been damaged during assembly.

Which Toyota and Lexus models are included in the recall?

Here are the makes and models of the impacted vehicles:

• 2025 Toyota Camry
• 2025 Lexus NX
• 2024-2025 Lexus RX
• 2024-2025 Toyota Tacoma

How is Toyota handling the recall?

Toyota will mail recall notices to affected owners in April. You can also contact Toyota's customer service line at 1-800-331-4331 with any questions you might have.

If you do receive a notice this spring, it will provide instructions for what you need to do. Usually, you'll just schedule an appointment with your local Toyota dealer. They'll inspect your vehicle and make the repair free of charge if a repair is necessary.

How to find out if your vehicle is affected by a recall

Believe it or not, recalls are hard to chase down sometimes. One time I took my car in for an oil change and was surprised to find I had an outstanding recall. Thankfully, the dealership took care of it promptly.

And this isn't an uncommon thing: There are almost 60 million vehicles in the U.S. with an open safety recall. Keep in mind recalls could impact anything from safety to vehicle performance, so staying on top of these things is essential.

But how? If you don't receive notices from your manufacturer, you might be in the dark on how to look for recalls. Thankfully, the National Highway Traffic Safety Administration (NHTSA) has a lookup tool you can use. All you need is your license plate number or VIN to search for recalls.

Is your car insurance rate affected by open recalls?

While you're checking for any open recalls on your vehicle, it might also be a good time to review your car insurance — especially if your policy renewal is coming up. Some insurers take vehicle safety into account, and keeping up with recalls may help ensure you’re getting the best possible rate.

With the average cost of full coverage car insurance being $2,670 annually, comparing quotes could be a simple way to find potential savings. Use our tool below, in partnership with Bankrate, to see today's car insurance rates.

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