In the first part we illustrate the first five strategies on how to reduce the costs of car insurance. In part 2, we show you the second five.
STEP 6: revision, modification or cancellation without errors and personal protection (PIP)
Coverage without failures, and it is Twin – PIP, was born as a great idea. Their prizes would have been effectively reduced. Then, the politicians of his state were involved (at the insistence of insurance lobbies, of course) and ruined him.
You see, the no-fault insurance coverage was originally meant to have the losses of each individual, covered by their own car insurance company, no matter who was at fault.
Currently, in many states, auto insurance companies are making a lot of money without fault, because the insurance companies have convinced state legislators to make “changes”.
Today, due to these changes, car insurance companies have actually used laws not guilty of reducing payments on a claim made by a customer, instead of reducing car insurance premiums as they should have done.
Therefore, premiums continue to rise and insurance companies end up paying less for claims: someone is getting rich with that thing … and it’s not you.
And to make matters worse, some states (with really talented insurance lobbies) also require an additional premium is paid in addition to the no-fault premium. This beauty is called Personal Protection for Injury (PIP).
PIP is comprehensive coverage and can provide collective coverage, hospitalization, social security disability, Comp workers, personal disability insurance and life insurance.
The problem with PIP and what it covers is …
You’ve already given him the majority, if not the totality, of these covers, right? So you’re paying twice!
So, you have to do a couple of things:
Google “minimum required car insurance levels” to see if insurance is required without failures and / or PIP in your state;
So check your policy. If your status does not require you to have coverage without fault / PIP and is on your policy, cancel it. If your status requires No-Fault / PIP … take the absolute minimum. that’s how
If you need to have No-Fault / PIP, request and get a deductible from the auto insurance company.
STEP 7: cancel medical coverage
Health coverage, most auto insurance policies, is a promise to pay “reasonable” medical bills for those traveling by car in the event that you have an accident … just like anyone in your car if someone hits you
Cancel it You do not need it
Why do you say it? Well, medical coverage as part of the auto insurance policy is your duplicate:
– Medical plan; – Any life insurance coverage you may have; – The sections of responsibility of almost all motor insurance policies written in the United States. UU.
Think of it this way … Do you have a health / medical / hospital plan for work or an association to which you belong?
So, why are you paying premiums for medical coverage / hospitalization on your car insurance policy?
This is what will happen when you tell the car insurance company or the agent that you do not want medical coverage / hospitalization. You will feel very “intimidating tactics” to help you change your mind.
The insurance company employee says, “Well, if you have an accident and it’s your fault, who’s going to cover medical bills for injured passengers in the car?”
Here is your answer. Your family is already covered by the health / hospitalization plan. If someone else is in the car and injured, they are covered by your personal injury liability coverage for which you are already paying … and planning your own health / hospitalization.
So go ahead, save a little more money and eliminate this coverage.
STEP 8: Cancel death, dismemberment and loss of sight
Do you have any of these covers in your existing auto insurance policy? If so, delete them.
And if you’re a car insurance buyer for the first time or you’re simply trying to get several car insurance quotes, do not let anyone convince you!
Because these covers are a total loss of money.
Most of these optional covers are simply “glorified” life insurance policies with ridiculous provisions and terribly expensive premiums. If you need life insurance, convert it into a separate insurance.
STEP 9 – Delete the extras
Do you have “Travel Assistance” or “Car Rental Refund” on your policy? If so, delete them.
And again, if you are an insurance buyer for the first time or receive auto insurance quotes, do not worry about these covers.
Because? Because they are very expensive, they are rarely used and limit what you can or can not do.
For example, the coverage of some car rental refunds is almost $ 100 per year for each vehicle in your policy. If you have two cars, you will invest almost $ 2,000 in car rental coverage in the next 10 years and you will probably never use it. .
And assistance on the road? The tranquility it offers is trampled by the premiums that auto insurance companies want for this coverage. Assistance on the road is a good idea. But use AAA for a cheaper solution.
STAGE 10: complete coverage and complete collision on old cars.
If you have an older car, I mean the one that is worth less than $ 2,000 in bulk (the amount a car dealer would give you if you were selling it) erases any complete collision coverage you have or refuses that option when the get a car insurance fee.
This is the reason. If an 8-year-old car and a new car have the same damage, even the repair costs will be identical, even if the 8-year-old car is worth almost nothing.
You’ll see that the cost of a bumper and fender is the same, whether it’s a new car or an 8-year-old car. This is why your premiums do not decrease when the value of the car decreases. Payments remain almost the same, year after year after year.
But the bottom part falls from what you can gather in that older car. For example, if your car is “totalized”, your insurance company will only pay for the wholesale value of your car.
So, let’s say that your car is worth $ 1,000, but the total damage is more than $ 4,000, the insurance company will only give you a check for $ 1,000 … minus your deductible, of course.
So you could end up recovering $ 500. Sounds like a bad deal … but that’s how it works.
Therefore, the rule of thumb is as follows: cancel compensation and collision coverage when the value of the vehicle is less than $ 2,000 … or you are throwing away your money.
Ok, you’ve written down some notes and you’re ready to make some changes to your car insurance policy. So take the phone and start reducing your bonuses!