Can you cut your car insurance costs by investing only 30 seconds of your time? Grab your Car Insurance declarations page (the page in your policy that details all the coverage's you're paying for) and follow along.
STEP 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.
STEP 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.
STEP 3 - Review & Change Property Damage Liability.
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 dollars of coverage?
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 - 50/100/100 - The first two numbers refer to bodily injury liability coverage. The 2nd is the dollar figure per accident.
The 3rd number is the "Property Damage Liability."
STEP 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:
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."
As I said earlier, most Policies today have your liability coverage's listed like so - 50/100/100 - The first two numbers (whatever they might be) refer to bodily injury liability coverage. Are you paying more than your net worth?
STEP 5 - Review & Change Uninsured/Underinsured Motorist Coverage.
The uninsured/underinsured 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 dollars a year.
Most folks think that uninsured/underinsured coverage is there to get your car repaired if it is hit by someone without insurance....or someone with lousy insurance. 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 uninsured/underinsured 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 uninsured/underinsured coverage, make sure you have the absolute minimum required. Just call your State Department of Insurance.
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. 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.
PIP is a "wide-blanket" of coverage and can
provide Collision Coverage, Hospitalization, Social Security Disability,
Workers Comp, Personal Disability Insurance & Life Insurance.
Google "minimum levels of required auto insurance"
to see if No-Fault Insurance and/or PIP Is required in your State;
If it's not required by your State to have No-Fault/PIP
Coverage and it's on your policy - cancel it. If you must have No-Fault/PIP,
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. 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.
Here's what's going to happen when you tell the car insurance company or Agent that you "Don't want the Hospitalization/Medical Coverage." 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 Health/Hospitalization Plan.
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.
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? 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.
The piece-of-mind it offers gets trampled by the premiums
the car insurance companies want for this coverage.
STEP 10 - Terminate Comprehensive & Collision Coverage On Older Cars.
STEP 10 - Terminate Comprehensive & Collision Coverage On Older Cars.
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.
For instance, if your car is "totaled", your
insurance company will only pay you the wholesale value of your car.
