Imagine getting ready to leave your house and you open your door and the rain is pouring down. Now you start to frantically look for your umbrella, there it is! You step outside, open your umbrella, and you are now protected from that pouring rain. If it were a bright sunny day with no rain in sight you probably would not even care about where your umbrella is or if you even had one! The same is true about insurance. Until you need it, do you really care about it? Unfortunately, too many people realize that they have insufficient coverage only when an unexpected incident occurs and they have to place a claim with their insurance company.
Saving money on your auto insurance and getting a good value for your premium dollar is not the same as getting “cheap” insurance. Believe me, there are differences between insurance carriers and there is plenty of “cheap” insurance out there. That does not mean you will have the coverage you expect when the worst happens and you need it most! There are however several ways to reduce your premiums. Let’s explore a few that might be beneficial to you:
Take physical damage coverage off your older vehicle. If you carry “Comprehensive” and “Collision” coverage on a vehicle that is over 10 years old, go to the websites and check out the vehicles current market value. You may be surprised to learn that you’re spending hundreds of dollars per year for coverage on a vehicle where the return on a total loss may not be a cost- effective investment. Be sure to add however a coverage called “UMPD” that will give you coverage for the market value of your vehicle if it becomes a total loss when in an accident caused by an uninsured motorist.
Increase your physical damage deductibles. The amount that you are responsible to pay when you have been in an accident that causes damage to your vehicle or when your car is stolen or any other covered cause of loss should probably be increased. On average, if you are a good driver, you will probably have a covered loss once in seven years or less so you may be spending hundreds of dollars per year for coverage used infrequently. Get the best value by increasing your physical damage deductibles to at least $1,000.
Insure multiple policies with one carrier. If you decide it is time to “shop” your auto insurance, you should be shopping both your auto and homeowners insurance. Carriers offer significant discounts on both the auto and home policies if they are with the same company. These discounts can be up to 25%. With the cost of insurance these days, that can be enough to pay for that tenants policy that you should have and maybe don’t or the cost of an extra million dollars of liability that you need to properly protect your assets.
Add “towing” coverage on your auto policy. Many carriers offer “towing” coverage that includes key lock out and delivering gasoline if you run out of gas, etc. for far less that purchasing the coverage separately through a “club.”
Having “proper” insurance is so much more cost- effective than not being insured properly, but if you follow some of these tips, you can make sure you have the coverage that makes “cents” for you over many years.