If you drive a car, you need to understand auto insurance. Believe
me; it?s much better to learn now than it is after an accident. Here
are 19 ways to get the most coverage for the least money:
1. Spend your money wisely
Put your money towards the things that could wipe you out financially.
Most
people will spend a lot of money to get a $500 deductible and ignore
the fact that a $500,000 lawsuit could bury them forever. You should
raise your deductible and increase your liability coverage. The premium
change will balance itself out to about the same amount you are paying
now. Raising your total liability coverage from the standard $300,000
to $500,000 will only cost you about $60 more per year on two cars.
Look
at the trade-off: what you are saving in premiums vs. how much risk you
can accept. You can save on your premiums by shaving off your personal
injury protection. This is often called the medical payments coverage.
If you already have health insurance, it will pay your medical bills
after an accident. You are basically paying for the same coverage twice.
2. Look at your liability coverage per person
Have your agent write your policy so that the total amount paid per accident and per person are the same amount.
If
you have $300,000 in total liability, often only $100,000 is payable
for each person injured. If you are sued by an individual for $200,000
? you are responsible for half. Your $300,000 worth of coverage should
reflect $300,000 worth of coverage.
3. Buy an umbrella policy
If
you have a considerable amount of assets, or plan to, consider taking
out an umbrella policy that covers both your home and autos for
liability. These policies usually start at $200 to $300 annually for up
to $1 million of coverage.
4. Good advice is worth looking for
Make
sure that you get your advice from neutral, credited professionals.
When shopping for an agent, look for experience. You don?t want to
necessarily go with an agent that has only had one weeks worth of
training! Look at their education and industry credentials. Look for
those who are members of the CPCU, CIC and AAI.
5. Good credit ratings count
Your credit rating is used to determine your insurability and your premiums. Good credit equals affordable insurance.
6. Your insurance company pays for your rental
If
you have been in an accident and your car has to be in the shop, make
sure that your policy covers the costs of renting a similar car. While
a week with your car in the shop doesn?t sound like all that long,
one-week worth of rental fees can add up to the hundreds of dollars.
7. Shopping around pays off
Premiums
vary widely from company to company. You can often pay more than double
for the same insurance. Make sure that you call around for quotes from
brand name companies and independent agents.
Don?t assume that
going with a well known company will cost you more. Insurance companies
with the best ratings often have the best prices.
Don?t just get a quote ? ask for the exact numbers on the exact coverage you need. You want to compare apples to apples.
8. Take advantage of discounts
Discounts
can help to save you a lot of money. If you haven?t had an accident in
years, if you store your car in your garage, if you don?t drive many
miles ? you may be eligible for a discount. Companies will also give
you discounts for safety features and anti-theft devises. More than one
car or more than one type of policy with a company gives you a discount
also.
Paying your premiums annually instead of monthly can save
you over $100 a year. Driving classes and good grades while in school
can save you also.
9. Teens that aren?t driving don?t need to be insured
If
you teen is away at college and is no longer driving your car, take
them off of your policy. Teen drivers add anywhere from 50% to 500% to
your premium. If your teen is driving, make him or her get their own
insurance. Its time for them to start learning about insurance on their
own.
10. Older cars don?t need collision insurance
If you
have an older car, you often don?t need to carry collision insurance.
You will be paying more in premiums for it than the car is worth. Ask
your agent what your car is worth and how much of your premium goes
towards collision insurance. Chances are you could just save the extra
money for a year and have plenty set aside for replacing your car.
11. Shop for the best service
You
need to find a company that is responsive, responsible and easy to deal
with. Chances are that you are going to file a claim at some time in
your life. You need an agent that will work with you towards a common
goal: your satisfaction.
A good agent will act like a coach. He
or she will advice you on how to present your claim to adjusters and
will help you in any disputes. Don?t settle for a 800- number that
never lets you talk to a real person.
12. Understand the claims process
Have
the agent explain to you the claims process before you chose which
company to go with. Find out if your insurance pays for brand name,
generic or used parts to fix your vehicle. Are you limited in your
choice of garages? Make sure that you have everything in writing.
13. Diminished value ? ask about it
This
is a very hot topic when it comes to auto insurance. Is a car worth
less after an accident? If it is, should the insurance fix the car and
pay you the difference in values? Ask your agent what your state
regulations and rulings are regarding diminished value.
14. As soon as you have an accident, call your agent
There
are time limits for most claim reports, usually 48 hours. If you want
to ensure that all is being taken care of, call immediately.
15. Keep claim records
Write
down everything that happens after an accident ? names, dates and what
was said. Keep track of when and who you speak with regarding the
accident. You may be able to record any phone conversations. Save all
of your receipts, get estimates and pick up a copy of the accident
report.
16. Keep your claim moving
Shop around and get any necessary estimates. By jumping right in and doing so, you will be prepared and save everyone time.
17. Include everything in loss estimates
If
you total your car, you may be able to recover the entire cost,
including your sales tax and registration fees. Contact your agent to
find out what estimates you need to have.
18. Be patient with your adjuster, but keep pressuring
An
adjuster is just like you or me, they make mistakes. If you keep your
temper and politely work your way up the chain of command, you will get
much further. Have all denials put in writing with reasons included.
Compare the explanation with your policy.
Your agent is there to
make calls on your behalf. Ask to have the matter reviewed. You can
choose to go into arbitration, but you will pay half of the costs. This
is often quicker than taking the matter to court. See what the record
of customer satisfaction is with the company?s arbitration hearings.
Your last resort is suing.
19. If you switch companies, cancel your old policy
But
don?t cancel it before you have new insurance. You want to have no
gaps. Some companies will report that you are driving without insurance
and you may face a suspended driver?s license. If you get a letter from
the state, make sure that you provide your proof of insurance
immediately.
Martin Lukac, represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com,
a finance web-company specializing in real estate/mortgage market. We
specialize in daily updates, rate predictions, mortgage rates and more.
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