insurance

Soaked in bad news, GM and Ford received yet another dousing when their three big European credit insurers dropped them this week. Euler Hermes, Atradius, and Coface have all refused to write policies for suppliers trading with both automakers. The three giant insurance companies control more than 80 percent of the world's credit insurance (insurance companies typically pull their coverage when a client stops proving insurers with enough information to calculate a credit risk, or their overall risk profile has deteriorated). Without their credit cover, suppliers will be forced to either trade uninsured, cease trading, or ask for payment up front. Supply issues aside, this news only compounds the automaker's problems as it also weakens investor confidence, already completely slumped.

If you've taken your car to the track for either an open lapping session or an advanced driver education course, you're undoubtedly aware of the potential risks. While most insurance policies say that the car isn't covered if it's participating in a "timed event," that's all changing now that track time is becoming more common.

While GM is being swamped with the persistent rumors surrounding the addition/dissolution of Chrysler, Ford's rumor mill has been heading in the complete opposite direction. It appears Volvo is on the way out of Dearborn, but Mazda may be sneaking through the exit first. Recent reports since disputed by Mazda have Ford selling off a portion of its 33.4% stake in the Japanese automaker, which means the Blue Oval would lose majority ownership status.

We've heard it before: "We're going to collect the information, but it won't go beyond..." The latest take on "Let us help you with technology" comes courtesy of GM's OnStar, which is offering you the opportunity to have your annual mileage tracked. The info will be given to their GMAC arm, which will then see if you qualify for insurance discounts. That sounds good, right?

Of course, no one mentions the other side -- that they can also see if you need a higher premium. "You told us this car was just for weekend recreation, Mr. Smith..." Signing up for the OnStar service is voluntary, so it's not going to start watching you until you say so... yet. But if you really do think you're paying too much, then why not. They probably already know everything about you, anyway... Thanks for the tip, Myles!