Indian Cars, Bikes

2008 was a big year for the automotive industry, but not in a good way. The economic recession still had a significant effect on most things. Raw material costs are higher. People weren’t too willing to buy cars anymore. College students prioritized getting college loans. Green living activists have gotten through many car owners how commuting or carpooling is a much cheaper and more eco-friendly way of traveling. And in terms of convenience, moving to and from places could really just be easily dealt with by commuting by bus or train instead of by a personally owned car—you don’t need to worry about gas, parking, and having to stay awake when all you want to do is plop down in front of a scrumptious supper or go to bed.

One very important factor as well is that few teenagers are now getting their driver’s licenses. In 1978, licensed young people numbered to 12 million, while currently only 10 million, according to reports. And what’s keeping young people from getting their driver’s licenses now? According again to reports, the reasons are socializing on the Internet, what with the rise in the popularity of social networking media such as Facebook; living in urban areas wherein cars aren’t always necessary; and taking on more debt like college loans. Rising park fees and the high price of gas contribute to this as well.

These all lead to around half of America’s 51 light vehicle plants possibly closing permanently in the coming years, and this will cause the loss of around 200,000 jobs in that sector, in addition to the 560,000 jobs lost in the last decade. China may be enjoying a robust growth in their auto industry because the changes in the U.S.’s have made them the largest automobile producer in the world, but the general picture doesn’t look good. Not only is the car industry itself falling apart, but also the auto insurance industry as well. Naturally, if there are fewer cars to insure and lesser demands for high-end cars that really bring in the big bucks for car manufacturers, then much fewer will have reason to go shopping around for policy coverage.

Despite these effects on the auto and auto insurance industries, if you already have a car or are set on buying one, it is still much recommended that you have your vehicle insured. It is required by some state laws, but even if it isn’t, it would be unwise driving an uninsured car due to the possible financial trouble you might have if you get into an accident. You alone will be responsible for the repairs’ costs, medical bills, and even legal representation, if necessary. For all the help you will require when you go and search insurance rates online, not just for vehicles but also life insurance, home insurance, and other insurance types, visit Nationwide Insurance.