How much do you pay for car insurance every year?
Eight hundred dollars a year? A thousand? Two thousand?
Whatever amount you are paying now, you can reduce this amount by more than 50% simply by following a few simple strategies.
Can you reduce the costs of your car insurance by investing only 30 seconds of your time? No, it can not be done.
But if you’re willing to spend 30 minutes today, this week or the next, I’ll show you how to save up to $ 6,000 on your car insurance over the next 10 years.
Ok, here we are. Get your car insurance declaration page (the page of your policy that specifies all the coverage you’re paying for) and follow it. Make sure you take notes. If you do not have your policy, or you can not find it, call your car insurance company and get one; they’ll send it to you soon.
STRATEGY 1: make sure you get all the corresponding discounts for the safety features of your vehicles, such as:
– Front, side or curtain airbags;
– Automatic safety belts;
– Anti-theft or traceable alarms;
– ABS or traction control … and many others.
Think about the security features you have … and write them down.
STRATEGY 2 – Review and modification of the deductibles for Comp and collision.
Most auto insurance policies have two deductibles, one for “collision” (affects someone or someone who hits you) and one for “complete” (all other damages or losses).
For both, have at least a $ 500 deductible, preferably a deductible of $ 1000.
This is the reason: if you are paying a deductible from $ 100 to $ 250, you will save up to 40% on your monthly premiums by changing them to $ 500. This means that if you spend currently $ 1,000 a year on insurance, you can keep $ 400 year. If you reach $ 1,000, you could keep almost $ 600 more per year in your pocket.
I can hear some of you say “Wow, a $ 1,000 deductible, it’s a lot of money”. Yes it is.
So you pay $ 1,000 a year with that deductible of $ 100 … against $ 400 a year with a deductible of $ 1,000.
The odds are in your favor: go with the excess of $ 1,000.
STRATEGY 3 – Review and change liability for damage to property.
Have you ever seen a $ 100,000 mailbox? Car insurance companies should have. This is the reason why …
Property damage is not damage to a machine, but rather a “property” such as a mailbox or utility pole. So, why in the world would you need $ 100,000 of coverage?
In most cases, almost 100% of all claims for damages can be offered with only $ 50,000 coverage. So take a look at your policy to find out what you’re currently paying. And if you have little or no net worth, lower your coverage even further, up to $ 25,000 or the minimum of your status. You can find the minimum of your status by searching on “minimum car insurance” on Google.
This is what you should look for in your policy: many will have their coverage of civil liability as such, 50/100/100. The first two numbers refer to the liability coverage for physical injuries. The first number is the amount in dollars covered per person. The second is the dollar figure per accident.
The third issue is “Liability for Property Damage”. This is what you have to change.
What does yours say?
STRATEGY 4 – Review and modification of liability for personal injury.
Although liability coverage is an obligation, almost all of us end up overpaking for the coverage we need. This type of coverage specifically covers:
– Each of the occupants of a car, both his and someone else’s;
– Each of the occupants of another vehicle;
– And the pedestrians
Your only goal with this type of coverage is to have enough protection to protect what is yours … in other words, your resources. And to protect your assets, you need to find out what your net worth is: this is a well-known site for calculating equity: www.kiplinger.com/personalfinance/tools/networth.html?
An excellent way to cut your premiums is to no longer be responsible for personal injury compared to what is worth your net worth. This is a common example of coverage that most people have: if your equity is only $ 20,000 and you have $ 100,000 in coverage, you’re throwing money away.
And if you have a small or negative net worth, you get the minimum required. You will need this information to get the lowest car insurance rates. Once again, you can get the minimums of your state by searching on Google “car insurance status minimums”.
This is what you should look for when trying to find out how much coverage you have now. As I said before, most of today’s policies have the liability coverage listed as such – 50/100/100 – The first two numbers (whatever they are) refer to the liability cover for personal injury. In this example, there is $ 50,000 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 and modify the coverage of uninsured / uninsured drivers.
The coverage of uninsured / underinsured motorists is a fantastic deal for auto insurance companies … and a lousy thing for you. Only this premium can increase your car insurance by a couple of hundred dollars a year.
Most people think that uninsured / underinsured coverage is there to repair your car if someone without insurance … or someone with a terrible insurance hits you.
Any damage caused to your car is already covered, for the premium you are already paying for the collision.
First of all … check your policy now if you pay for coverage without insurance or insufficient insurance. If so, search the “status requirements of uninsured drivers” on Google to see if your status requires it.
If your status does not require it, delete it.
If the state in which you live requires uninsured / uninsured coverage, make sure you have the minimum necessary. These lows are not announced, they change every two years and are very difficult to find. So, this is how you handle this.
Do a Google search for your state insurance department, go to the “Contact Us” page, search for a phone number, then call and ask what the minimums are.
Do not try to look for it. Finding the listed minimums is almost impossible on most state websites: they buried it so deeply that they could never find it. Just call your state insurance department.
I know it’s a bit complicated to get the information yourself. However, relying on insurance companies to provide the correct information is not very smart.
Next – Part 2 of “How to reduce the costs of car insurance up to 54% in 10 simple steps”