Posted: May 25th, 2010 | Author: Admin | Filed under: Quality Car Insurance | No Comments »
How To Slash Your Car Insurance Costs Up To 54% In 10 Easy Steps – Part 2
In Part 1, we detailed the first five strategies on how to cut your car insurance costs. In Part 2, we show you the second five.
STEP 6 – Review, Change or Cancel No Fault & PIP (Personal Injury Protection)
No-Fault Coverage, and it’s Twin – PIP – started out as great idea’s. Your premiums were actually going to be lowered. Then, your State Politicians got involved (at the urging of Insurance Lobbyists, of course) and mucked it up.
You see, no-fault insurance coverage was originally intended to have each individual’s losses, covered by their own car insurance company – no matter who was at fault.
Today, in many States, car insurance companies are making a ton of money on no-fault because the insurance companies convinced State law-makers to make “modifications.”
Today, because of the these changes, car insurance companies have actually used the no-fault laws to reduce payments on a claim made by a customer, instead of reducing car insurance premiums as it was supposed to do.
So, premiums keep going up-and-up and insurance companies end up paying less for claims – Someone’s getting rich on that deal….and it’s not you.
And to make matters worse, some States (with really, really talented Insurance Lobbyist’s) also require an additional premium be paid on top of the no-fault premium. This beauty is called Personal Injury Protection (PIP).
PIP is a “wide-blanket” of coverage and can provide Collision Coverage, Hospitalization, Social Security Disability, Workers Comp, Personal Disability Insurance & Life Insurance.
The problem with PIP and what it covers is….
You already gave most, if not all, of these coverage’s anyway, don’t you? So, you’re paying twice!
So, you need to do a couple of things:
Google “minimum levels of required auto insurance” to see if No-Fault Insurance andor PIP Is required in your State;
Then, check your policy. If it’s not required by your State to have No-FaultPIP Coverage and it’s on your policy – cancel it. If No-FaultPIP is required by your State….take the absolute minimum. Here’s how.
If you must have No-FaultPIP, ask for and get a deductible from your car insurance company.
STEP 7 – Cancel Medical Coverage
Medical Coverage, on most car insurance policies, is a promise to pay “reasonable” medical expenses for anyone who is riding in your car should you have an accident…as well as anyone in your car should it get hit by someone else.
Cancel it. You don’t need it.
Why is that you say? Well, medical coverage as part of your car insurance policy is a duplicate of your own:
- Medical Plan; – Any Life Insurance Coverage you might have, as well as; – The Liability Sections of almost every car insurance policy written in the U.S.
Think of it this way….Do you have a HealthMedicalHospitalization Plan thru work or an Association you belong to?
Then why are you paying premiums for MedicalHospitalization Coverage on your Car Insurance Policy?
Here’s what’s going to happen when you tell the car insurance company or Agent that you “Don’t want the HospitalizationMedical Coverage.” You’re going to hear very slick “scare tactics” to help change your mind.
The insurance company employee will say “Well, if you’re in an accident, and it’s your fault, who’s going to cover the medical bills for any injured passengers in your car?”
Here’s your answer. Your family is already covered by your HealthHospitalization Plan. If anybody else is in the car and they’re injured – they’re covered by your Bodily Injury Liability coverage that you’re already paying for….and their own HealthHospitalization Plan.
So go ahead – save some more money and get rid of this coverage.
STEP 8 – Cancel Death, Dismemberment & Loss of Sight
Do you have any of these coverage’s on your existing car insurance policy? If so – cancel them.
And if you’re a first time car insurance buyer or, just looking at getting several car insurance quotes, don’t let anyone talk you into them!
Why?
Because, these coverage’s are an absolute waste of money. Most of these optional coverage’s are simply “glorified” life insurance policies with ridiculous provisions and horribly overpriced premiums. If you need life insurance, make it a separate Insurance Policy.
STEP 9 – Cancel The Extras
Do you have “Roadside Assistance” or “Rental Car Reimbursement” on your policy? If so, cancel them.
And again, if you’re a first time insurance buyer or getting a few car insurance quotes, don’t bother with these coverage’s.
Why? Because they’re severely overpriced, are rarely ever used, and limit what you can and cannot do.
For instance, some rental car reimbursement” coverage is almost 100 a year for each vehicle on your policy. So if you have two cars, you’ll spend almost 2,000 on rental car coverage in the next 10 years – and likely never even use it.
And roadside assistance? The piece-of-mind it offers gets trampled by the premiums the car insurance companies want for this coverage. Roadside assistance is a good idea. But use AAA for a cheaper solution.
STEP 10 – Terminate Comprehensive & Collision Coverage On Older Cars.
If you have an older car – by that I mean one that’s worth less than 2,000 wholesale (the amount a car dealer would give you if you were trading it in) cancel any Comprehensive and Collision Coverage you have or decline that option when getting a car insurance quote.
Here’s why. If an 8 year-old car and a brand new car have identical damage, the cost to repair both will be identical as well, even though the 8 year-old car is worth next-to-nothing.
You see the cost of a bumper and fender are the same – whether it’s for a brand new car, or one that is 8 years-old. That’s why your premiums don’t go down as the value of the car goes down. Your payments remain almost the same, year-after-year-after-year.
But, the bottom drops-out of what you’ll be able to collect on that older car. For instance, if your car is “totaled”, your insurance company will only pay you the wholesale value of your car.
So, let’s say your car is worth 1,000, but the total damage is more than 4,000, the insurance company is only going to give you a check for 1,000….minus your deductible, of course.
So you might end up getting 500 back. Sounds like a lousy deal….but that’s how it works.
So, the rule-of-thumb is this – cancel your comp & collision coverage when your vehicles value is less than 2,000….or you’ll be throwing your money away.
Okay – you’ve jotted down some notes and are ready to make some changes to your car insurance policy. So pick up the phone and start slashing your premiums!
Posted: May 18th, 2010 | Author: Admin | Filed under: Quality Car Insurance | No Comments »
How To Slash Your Car Insurance Costs Up To 54% In 10 Easy Steps – Part 1
How much do you pay for Car Insurance every year?
Eight hundred pounds a year? One thousand? Two thousand?
Whatever the amount you’re paying now, you can slash that amount by more than 50% by simply following a few simple strategies.
Can you cut your car insurance costs by investing only 30 seconds of your time? No, that can’t be done.
But if you’re willing to spend 30 minutes today, this week, or next, I’ll show you how to save up to 6,000 on your Car Insurance over the next 10 years.
Okay, here we go. Grab your Car Insurance declarations page (the page in your policy that details all the coverages you’re paying for) and follow along. Make sure you take some notes. If you don’t have your policy, or can’t find it, call your car insurance company and get one – they’ll send it to you pronto.
STRATEGY 1 – Make sure you’re getting all applicable discounts for your vehicles safety features, such as:
- Front, Side or Head Curtain Air Bags;
- Automatic Seat Belts;
- Anti-Theft Alarms or Tracking;
- ABS or Traction Control….and many more.
Think about the safety features you have….and write them down.
STRATEGY 2 – Review & Change Deductibles For Comp & Collision.
Most Car Insurance Policies have two deductibles – one for “collision” (you hit someone or someone hits you) and one for “Comprehensive” (all other damage or loss).
For both of these, have at least a 500 deductible – preferably a 1000 deductible.
Here’s why – If you are currently paying a 100 – 250 deductible, you’ll save up to 40% per year on your monthly premiums by moving it to 500. That means if you’re currently spending 1,000 a year on insurance, you’re going to get to keep 400 every year. If you jump to a 1,000 deductible, you could keep almost 600 extra a year in your pocket.
I can hear some of you saying, “Wow, a 1,000 deductible. That’s a lot of money.” Yes, it is.
So is paying 1,000 a year with that 100 deductible….versus 400 a year with a 1,000 deductible.
The odds are in your favor – go with the 1,000 deductible.
STRATEGY 3 – Review & Change Property Damage Liability.
Have you ever seen a 100,000 mailbox? Car Insurance Companies must have. Here’s why….
Property damage is not damage done to an automobile but rather “property” like a mailbox or a utility pole. So, why in the world would you need 100,000 pounds of coverage?
In most cases, almost 100% of all property damage claims can be taken care of with only 50,000 of coverage. So take a look at your policy to find out what you’re currently paying for. And if you have little or no Net Worth, drop your coverage even lower – to 25,000 or your States minimum. You can find your States minimum by doing a Google search for “car insurance state minimums.”
Here’s what to look for on your policy – Many will have your liability coverage’s listed like so – 50100100 – The first two numbers refer to bodily injury liability coverage. The 1st number is the pound figure covered per person. The 2nd is the pound figure per accident.
The 3rd number is the “Property Damage Liability.” That’s what you need to change. What does yours say?
STRATEGY 4 – Review & Change Bodily Injury Liability.
Although Bodily Injury Liability Coverage is a must, almost all of us end-up overpaying for the coverage we need. This type of coverage specifically covers:
- Any and all occupants of an automobile, whether it’s yours or someone else’s;
- Any and all occupants of another vehicle;
- And Pedestrians
Your only goal with this type of coverage is to have just enough protection to protect what is yours….in other words, your assets. And in order to protect your assets, you need to figure out what your Net Worth is – here’s a well known site for calculating your net worth – www.kiplinger.compersonalfinancetoolsnetworth.html?
A great way to slash your premiums is to have no more in bodily injury liability than what your net worth is. Here’s a common example of the coverage most people have – If your net worth is only 20,000 and you have 100,000 in coverage, you’re throwing money away.
And if you have little, or negative net worth, just get the required State minimums. You’ll need this info to get the lowest car insurance rates. Again, you can get see your state minimums by Googling “car insurance state minimums.”
Here’s what to look for when trying to figure out how much coverage you have now. As I said earlier, most Policies today have your liability coverage’s listed like so – 50100100 – The first two numbers (whatever they might be) refer to bodily injury liability coverage. In this example, there is 50,000 in coverage per person and 100,000 per accident.
What does your policy say? Are you paying more than your net worth? If so, change it.
STRATEGY 5 – Review & Change UninsuredUnderinsured Motorist Coverage.
The uninsuredunderinsured motorist coverage is a fantastic deal for car insurance companies….and a lousy one for you. This premium alone can increase your auto insurance by a couple hundred pounds a year.
Most folks think that uninsuredunderinsured coverage is there to get your car repaired if it is hit by someone without insurance….or someone with lousy insurance.
Wrong.
Any damage done to your car is already covered – by the premium you’re already paying for collision.
First things first….check your policy if your paying for uninsuredunderinsured coverage now. If you are, Google “uninsured motorist state requirements” to see if your State requires it.
If it’s not required by your State, cancel it.
If the State you live in does require uninsuredunderinsured coverage, make sure you have the absolute minimum required. These minimums are not advertised, change every couple of years and are very difficult to find. So, here’s how you handle this.
Do a Google search for your State Department of Insurance, go to the “Contact Us” page, find a phone number, then call and ask what the minimums are.
Don’t try looking for it. Finding the minimums listed is almost impossible on most State Web Sites – they’ve buried it so deep you’ll never find it. Just call your State Department of Insurance.
I know it’s a bit of a hassle to get the info yourself. Yet relying on the Insurance Companies to give you the correct information isn’t very wise.
Next Part 2 of How To Slash Your Car Insurance Costs Up To 54% In 10 Easy Steps
Posted: May 11th, 2010 | Author: Admin | Filed under: Quality Car Insurance | No Comments »
Everyone who owns a car needs auto insurance. This article will give you some tips on lowering your auto insurance costs. You will find a checklist of items to ask your insurance agent that may qualify for discounts. Keep in mind that not all discounts can be applied with all insurance companies in all states.
1.Shop Around
Go to your favorite search engine and type in “free car insurance quotes online”. You’ll see a long list of insurance companies that you may even be familiar with. Visit at least five car insurance websites and look for a link to free quotes. You will then be asked basic information about yourself, your driving history, and your car’s make, model, and year. It just takes a couple of minutes, and shortly thereafter, they will email you a no obligation quote. Write down their website address, their toll free number, and customer service email address.
Each insurance company will ask you generally the same questions, and will give you options about how much coverage you will want. Find your current policy, if you have one, and take note of the coverage you currently have. Always provide the same information and ask for the same coverage at each company so you will be comparing apples to apples. Read the fine print and make sure nothing is excluded from the quote like Rental car coverage, towing, medical, etc…
For the purposes of the quote, the insurance company will not ask you your social security number, but keep in mind your actual cost maybe higher or lower depending on your credit history. If you’re not sure about some of the terminology or coverage, take notes so that you can ask the insurance company about them directly.
Once you have at least five quotes emailed to you, take the lowest two or three quotes and see if they are less than what you are paying now. Most likely at least one of them is much lower. At this point you will want to call them directly to get the most accurate quote by providing additional personal information. For additional discounts, here is a checklist of things you should ask about.
[ ]500 deductible
[ ]1,000 deductible
[ ]Paying monthly, semi-annually, or annually
[ ]More than 1 car
[ ]No Accidents in 3 Years
[ ]No Moving Violations in 3 Years
[ ]Driver Training Courses
[ ]Defensive Driving Courses
[ ]Anti-Theft Devices
[ ]Low Annual Mileage
[ ]Air Bags
[ ]Anti-Lock Brakes
[ ]Daytime Running Lights
[ ]Student Drivers with Good Grades
[ ]Auto and Homeowners Coverage with the Same Company
[ ]College Students away from Home
[ ]Long-Time Customer
[ ]Other Discounts
2.Saving Insurance Premium on cars you own outright.
If you own a clear title to your car, meaning there is no bank loan on it, then you may want to consider dropping the collisioncomprehensive coverage. As a rule of thumb, if the cars value is less than 3000, it may not make sense for you to pay for this additional coverage. Over time, the cost of the additional insurance premium will exceed the value of the car. It’s pretty simple math.
Check the fair market value of your car either through Edmunds.com or even your local newspaper. See what other people are trying to get for the same car. Keep in mind your cars mileage, condition, and age. Has it been in an accident before? Does it have unusually high mileage in excess of 15,000 miles per year? Does it need new tires? You get the idea. Be realistic, because in the event that this car is in an accident and is damaged beyond repair, it is unlikely you will get the full value of the car.
3.Ask About Insurance Rates in Different Areas
Rates can vary widely even in the same state. Different locals have different accident rates, population, and crime. These all factor in to the final cost. If you are moving to a different area, ask about what the rates are for that town.
4.Ask About Getting Other Insurance Policies Together With Your Auto Insurance
Combining insurance policies with the same company can often give you additional discounts. If you own a home, ask about combining your homeowners insurance with your auto insurance. Also ask about other polices, such as life, health, and business insurance. Most insurance companies cover a wide range of policies and will give substantial discounts when you do business exclusively with them.
5.A Clean Credit History Can Reduce Car Premiums:
Having good credit can also lower your insurance costs. Many insurance companies will use credit information to price auto insurance policies. Drivers with good credit and a clean driving record may qualify as a “preferred” customer with lower risk and will be rewarded with lower premiums.
6.Low Mileage Discounts
Some companies offer discounts to drivers who drive a lower than average number of miles per year. If you car pool, take public transportation like the subway, or work from home, you will most likely drive few miles per year than the average driver.
7.Group Insurance
Some insurers offer discounts to drivers who work for certain companies or belong to professional associations, and alumni groups. Ask your employer, group or clubs that you belong to if they have any special arrangements with different insurance companies.
Using all of these tips can save you hundreds of pounds per year, especially when you have multiple cars and multiple drivers in the same household.
Posted: May 4th, 2010 | Author: Admin | Filed under: Quality Car Insurance | No Comments »
If you own a classic car, you already know that they can be difficult to insure. You have things to consider that are unique to classic vehicles. Here are some things to consider when choosing an insurer for your classic vehicle.
How will you be using your antique or classic vehicle?
You should get coverage for how you use your vehicle. If you are not driving your vehicle daily, why pay for it. If your insurance company has experience with classic cars, they probably offer policies for vehicles that are only driven on weekends or are never driven at all. The more you drive it, the more the risk and the more you will pay. If you get a policy for a vehicle that is supposed to be garaged, you will not be covered if you choose to drive it. Make sure that you accurately state how you will using your vehicle so that you will be fully covered but not overcharged.
How much is your car worth?
Do not assume that your insurance company knows how much your car is worth. You might find that you value it much more than they do. Obtain a policy where the value of the vehicle is stated in writing. Get a written appraisal on your vehicle so there is no question on its value.
Does the insurance company have classic vehicle experience?
If possible, choose a company that has experience dealing with classic automobiles. Most insurers have no clue and will be unable to match you with the right policy. If you are a member of a car club, ask around for recommendations. If you cannot get a referral, interview your agent. Ask them what kind of policies they have for classic cars. If they try to fit you into a basic policy, find another agent.
Are there any restrictions?
Find out in advance if there are any restrictions on the use of the vehicle. You must know in advance if you are limited to a certain mileage or if you have to garage it at a certain location. Read your policy carefully.
Don’t just accept the first quote that you receive. Do your homework and you will find the auto insurance policy that is right for you and your car.