How much do you pay for car insurance annually?

Eight hundred dollars a year? Thousand? Two thousand?

Whatever amount you pay now, you can cut that amount by more than 50% by simply following a few simple strategies.

Can you cut your car insurance costs by investing just 30 seconds of your time? No, you can’t.

But if you’re ready to take 30 minutes today, this week, or next week, I’ll show you how you can save up to $ 6,000 on your auto insurance over the next 10 years.

Okay, let’s go. Take the auto insurance statement page (your insurance page that lists all the coverages you pay for) and follow it. Be sure to take some notes. If you don’t have or can’t find your policy, call your auto insurance company and get one; they will send it to you soon.

STRATEGY – 1

Make sure you get all applicable discounts for your vehicle’s safety features, such as:

– front, side, or head airbags;
– Automatic seat belts;
– pursuit or intrusion alarm;
– ABS or traction control and much more.

Think about your security features … and write them down.

STRATEGY – 2

Check and change deductibles for compensation and collision.

Most auto insurances have two deductibles: one for “collision” (if you hit someone or someone hits you) and one for “total” (any other damage or loss).

You have at least a $ 500 deductible for both, preferably a $ 1000 deductible.

Here’s why: If you’re currently paying a $ 100 to $ 250 deductible, you will save up to 40% of your monthly premiums annually to 500 $, you can keep $ 400 a year. If you jump to a $ 1,000 deductible, you could have almost an extra $ 600 a year in your pocket.

I hear some of you say, “Wow, $ 1,000 deductible. That’s a lot of money.” Yes, it is.

So you’re paying $ 1,000 a year with that $ 100 deductible … versus $ 400 a year with a $ 1,000 deductible. Chances are, choose the $ 1,000 deductible.

STRATEGY – 3

Check and change liability for property damage.

Have you ever seen a $ 100,000 mailbox? Must have car insurance. Therefore …

Property damage is no damage to a car, but to “property” such as a mailbox or a power pole. So why in the world do you need $ 100,000 coverage?

In most cases, nearly 100% of all property damage can be settled with as little as $ 50,000 in coverage. So check your policy to find out what you are currently paying for. Net worth, reduce your coverage even further to $ 25,000 or your government minimum. You can find the minimum amount for your state by doing a Google search for “state minimum car insurance”.

What to look for in your policy – Many will have listed their liability insurance as follows – 50/100/100 – The first two numbers refer to personal liability insurance. The first number is the dollar number covered per person. The second is the dollar number per accident.

The third number is “Property damage liability”. This is what you need to change. What is yours saying?

STRATEGY – 4

Review and amendment of liability for personal injury.

While personal injury liability insurance is a must, most of us end up paying too much for the coverage we need. This type of coverage specifically covers:

– Every single occupant of a car, whether you or someone else;
– Every single occupant of another vehicle;
– And Pedestrians

Your only goal with this type of cover is to have enough protection to protect your property … in other words, your assets. And in order to protect your wealth, you need to determine your net worth. Here is a popular page for calculating your net worth: www.kiplinger.com/personalfinance/tools/networth.html?

A great way to lower your premiums is to not be held liable for any personal injury more than your net worth. Here’s a common example of insurance coverage that most people have: If your net worth is only $ 20,000 and you have $ 100,000 in insurance, you’re throwing money away.

And if you have a small or negative net worth, just get hold of the government minima required. You need this information to get the lowest car insurance rates. . ”

Here’s what to look for when trying to find out how much coverage you have now. As I said, most policies today have liability coverage listed as follows: 50/100/100 – The first two numbers (whatever) ) refer to personal injury liability insurance, in this example the coverage is $ 50,000 per person and $ 100,000 per accident.

What does your policy say? Are you paying more than your net worth? Yes, change it.

STRATEGY – 5

Review and change insurance coverage for uninsured or underinsured drivers.

Uninsured or Underinsured Motorist Protection is a great deal for auto insurance … and a lousy deal for you. That premium alone can add a few hundred dollars a year to your auto insurance.

Most people think that there is uninsured or underinsured coverage to fix your car if it is hit by someone without insurance or someone with lousy insurance.
Wrong.
Any damage to your car is already covered by the premium you already pay for the collision.

First things first … check your policy to see if you are paying for uninsured or underinsured coverage. If so, google “State Requirements For Uninsured Drivers” to see if your state requires it.

If your state doesn’t require it, cancel.

If the state you live in requires coverage for the uninsured or underinsured, make sure you have the minimum necessary. These minimum quantities are not advertised, they change every two years and are very difficult to find. So that’s how you handle it.

Do a Google search for your State Department of Insurance, go to the Contact Us page, find a phone number, then call and ask for the minimum requirements.

Don’t try to look for it. Finding the minimum values ​​listed is almost impossible on most government websites. They buried it so deep that you will never find it. Simply call your national insurance office.

I know it is a little difficult to get the information on your own. However, it is not very wise to rely on insurance companies to give you the correct information.

 

STRATEGY – 6

Review, Change or Cancel No Fault and Personal Injury Protection (PIP)

NoFault Coverage and Your Twin – PIP – started out as a great idea. involved (at the behest of insurance lobbyists, of course) and screwed it up.

As you can see, faultless insurance cover was originally intended to cover the damage of each individual from their own car insurance, regardless of who was at fault.

Today, auto insurance companies in many states inevitably make big bucks because insurance companies have convinced state lawmakers to make “improvements.”

Today, because of these changes, auto insurance companies have used flawless laws to cut payments on a customer’s claim instead of lowering auto insurance premiums as they should.

So the premiums keep going up and the insurance companies pay less for claims – it makes someone rich … and you don’t.

And to top it all off, some states (with really talented insurance lobbyists) charge an additional premium on top of the no-fault premium. This beauty is known as Personal Injury Protection (PIP).

PIP is a “wide range” of insurance coverage and can provide coverage for collision, hospitalization, social security disability, employee compensation, personal disability insurance, and life insurance.

The problem with PIP and what it covers is….

Anyway, you’ve given most, if not all, of these reports, haven’t you? So you pay twice!

So there are a few things you need to do:

Google “Minimum Level of Car Insurance Required” to see if your state requires NoFault and/or PIP insurance;
Next, check your policy. If your state doesn’t require NoFault / PIP coverage and it is on your policy, cancel it. If your state requires NoFault / PIP, take the bare minimum. That’s how to do it.

If you must have NoFault / PIP, apply for and receive a deductible from your auto insurance company.

 

STRATEGY – 7

Cancel Health Insurance

Health insurance in most auto insurers is a promise to pay “reasonable” medical expenses for anyone who rides in your car in the event of an accident. … car when someone else is hit.

Cancel. He doesn’t need it.

Why do you say that? Well, the health insurance under your auto insurance is a duplicate of yours:

– health insurance; – Any life insurance coverage you have as well; – The liability sections of almost all US auto insurance

Think of it this way … Do you have a work or association sick/sick / hospital stay plan that goes with it?

So why are you paying health/hospital insurance premiums for your auto insurance?

This happens when you tell auto insurance or the agent that you “don’t want health or hospital insurance”. You will hear some very clever “intimidation” tactics that will help you change your mind.

The insurance company employee will say, “Well, if you have an accident and it’s your own fault, who pays the medical bills for the injured passengers in your car?”

Here is your answer. Your family is already covered by your health/hospital plan. If someone else is in the car and gets injured, they are covered by your personal liability insurance that you are already paying for…. and your own health/hospital stay plan.

So go ahead and save a little more money and get rid of that coverage.

STRATEGY – 8

Death, Dismemberment, and Vision Loss Cancel

Do you have any of these covers in your current auto insurance? If so, cancel.

And if it’s your first time buying auto insurance, or just looking for multiple auto insurance deals, don’t let anyone convince you!

Why?

Because these covers are an absolute waste of money. Most of these optional covers are simply “glorified” life insurance policies with ridiculous provisions and terribly overpriced premiums. If you need life insurance, get a separate insurance policy.

STRATEGY – 9

Cancellation of extras

Do you have “Breakdown Assistance” or “Rental car reimbursement” in your policy? If so, cancel it.

And again, if this is your first time getting insurance or some auto insurance quotes, don’t bother with these covers.

Why? Because they are so expensive, rarely used, and limit what you can and can’t do.

For example, reimbursement of some rental car costs is nearly $ 100 per year for each vehicle in your policy. So if you have two cars, you will be spending almost $ 2,000 on rental car insurance over the next 10 years, and you probably won’t even use it.

And roadside assistance? The security it offers is being trampled on by the premiums auto insurances charge for this coverage. Roadside assistance is a good idea. But use AAA for a cheaper solution.

STRATEGY – 10

End fully comprehensive and collision protection for older cars.

When you have an older car, I mean one that is worth less than $ 2,000 in wholesale (the amount a car dealer would give you if you traded it in). an offer for car insurance.

Here’s why: if an 8 year old car and a new car have the same damage, the repair costs are the same for both, even if the 8 year old car is worth the next.

You will see that the cost of a bumper and fender is the same whether it is a new car or an 8 year old car. That is why your premiums do not go down when the value of the car goes down. they stay almost the same year after year.

But the lower part of what you can ask for this older car. For example, if your car is “totaled”, your insurance company will only pay you the wholesale value of your car.

Let’s say your car is worth $ 1,000 but the total damage is over $ 4,000, so of course, the insurance company will only write you a check for $ 1,000 minus your excess.

So you could end up getting $ 500 back. It sounds like a lousy deal, but that’s how it works.

So the rule of thumb is, cancel your comp and collision insurance if your vehicle is worth less than $ 2,000 or you’re wasting your money.

Okay, you’ve taken some notes and are ready to make some changes to your car insurance. So pick up the phone and cut your premiums!

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