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: February 2nd, 2010 | Author: Admin | Filed under: Quality Car Insurance | No Comments »
If you are unlucky enough to have an accident in the UK, you will need to know some of the basics ins-and-outs of how to make a claim on your UK car insurance.
Personal Injury
The first thing you should do following a car accident is to check and see if anyone in your car or any of the other cars has been injured. If they have, you should immediately call for medical assistance (ambulance). Once you have done this, keep in mind that you may need to include a medical report as part of the accident claim.
Call the police
Depending on the seriousness of the accident, you may know need to call the police.
24-Hour assistance
By law you should have a copy of your car insurance certificate with you in your car at all times. Included in this will be a 24-hour hotline contact number that you can call if you happen to be involved in an accident. You need to ring this number and ask them what the procedures are you should take. Remember, in the UK you can have one of several different classes of car insurance (for example, third party or fully comprehensive), so the steps you will need to take will vary depending on this and the procedures put in place by your specific car insurance policy provider.
While on the phone with your car insurance company, remember to ask them to send you an accident report form. The accident report form should be fairly self-explanatory, but if you have any problems completing this, then it is a good ideal that you call your insurer and clear up any misunderstandings before you submit this form.
Collect evidence of the accident
Having called your insurance provider and asked for assistance, it is a good idea to collect some evidence about the accident. This can include taking the names of any eye witnesses andor taking photographs of the accident (mobile phone cameras are useful for this purposes).
Repairs to your car
It is very important that you understand that any costs you incur with respect to your car following an accident are for your own account (i.e. you pay) unless you have agreed these beforehand with your insurance company. As such, it is not a good idea following an accident to just take your car off to a garage and have the repairs done as you may well find your car insurance company will not agree to reimburse you. Far more sensible is to phone the car insurance company first and ask them if there is any specific garage in your area where you need to take the car for repairs.
Keep receipts for all expenses
Even if you think that it is unlikely youll be reimbursed for the cost, if you have an accident and are going to make a claim with your car insurance company then it is vital that you keep a receipt of all the expenses incurred. Keep in mind that if you do not have a record of the expense, it is highly unlikely that your car insurance company is going to reimburse you.
Posted: January 12th, 2010 | Author: Admin | Filed under: Quality Car Insurance | No Comments »
The more you understand about any subject, the more interesting it becomes. As you read this article you’ll find that the subject of car insurance rate is certainly no exception.
Looking For the Best Car Insurance Rate?
You dont need to go places, meet lots of agents or drop by headquarters of different car insurance companies.
Traditionally, you will have to ask your trusted agentbroker about the best rates that can be offered to you. It somehow works, because the agent handles multiple accounts and affiliations with various insurance firms. And past experiences from other clients make himher more knowledgeable about the car insurance gateway.
For sure, direct contact or transaction to car insurance companies will save you more on premiums. Why? Because middlemen are eliminated and so are the commissions paid to them. But you will surely find the task a very tedious activity.
Online processing of car insurance applications proves to be a wise move if you are after convenience and savings on gasoline and transport expenses. This mode will surely get you the best of the best rates across the Internet within seconds, and at your fingertips.
Online, you will find a lot of Web sites offering services that scout for cheapest car insurance quotes from insurance firms. The services will give you freedom to exercise your freewill and choose the car insurance company that offers the best quotes and rates for your needed coverage.
How to get the best car insurance rate?
Sometimes the most important aspects of a subject are not immediately obvious. Keep reading to get the complete picture.
To get a cheap car insurance premium, you will have to invest, first of all, in clean driving records. Speeding tickets or traffic violations you have committed for at least the past five years will directly affect the rates you will automatically get for your car insurance policy. If you already have tickets, adopt a self-policy that it is still never too late. Start practicing some disciple when off the road.
Get a higher excess charge or deductible. Deductible is the amount you are willing to personally shoulder in case of accidents, repairs or damages. For example, if you set a 500 deductible, the insurance company will not cover any expense if the cost of repairs from a damage will cost less than 500. Suppose the cost of repair reaches 600, you will pay 500 and the insurance firm will take the 100 bill.
The idea might sometimes be misleading. Some people fall through this trap by setting very low deductibles to make sure the insurer covers most of the expenses for repairs or accidents. The catch? Lower deductibles equate for higher premiums and vice versa.
Personal and car information are variables you cannot do something about. But they are the primary factors that get evaluated upon the processing of your car insurance application. Dont lie and sweeten your facts. Be honest. You may not get the best rates by doing so, but you will surely get the best and real quotes available for drivers of your classification if you will be open and inquisitive.
The best versus the cheapest
Best car insurance rates are not necessarily the cheapest. Best, still is a relative term, even in the car insurance jargon. For most of the industry insiders, best car insurance rates are attained if the coverage and policy purchased are comprehensive, broad and practical, even if the premium that comes with it is not that cheap.
Likewise, the cheapest car insurance rate may not be the best because certain coverage or policy clauses make them less compared to others. The cheapest car insurance rates usually lack certain provisions for various situations and accidents. Sometimes, hitting the bottom is not that ideal, especially if there are other more attractive options out there.
If you’ve picked some pointers about car insurance rate that you can put into action, then by all means, do so. You won’t really be able to gain any benefits from your new knowledge if you don’t use it.