Special Report

Bob and Mary were looking at their bills. Every now and then they tried to prepare a budget. It wasn’t easy, but they tried to stay within their budget and tried to manage their money as best as they could. Bob couldn’t believe it. He just opened the new insurance bill. "Holy smokes! Are we paying this much for insurance? I thought it was about $200 less than this. What do they do. Sneak it up on you when you’re not looking".

"I don’t know", Mary sighed. "It’s not like we even use it. I don’t remember the last time we even had a claim."

Premiums, policies, collision, comprehensive, under-insured motorist .... it was all pretty confusing. They were both thinking the same thing, "Oh, well, we’ll swallow it. There’s nothing we can do about it now".

Your car is one of your most valuable assets. It is also one of the most dangerous. Dangerous in terms of the harm it can cause, and when there’s an accident, the damage it can do to your financial security. Let’s take a look at a typical auto policy. It’s not just one kind of insurance. It’s usually six different kinds of insurance all rolled into one policy! So, let’s review typical coverage found in a Personal Automobile Policy.

Bodily Injury Liability is in case you cause an accident and somebody else is hurt or even killed and they decide to sue.

Property Damage Liability is in case you damage property that belongs to someone else. It’s usually someone else’s car, but not always. People have damaged all sorts of things and have been protected by their property damage liability. Garages, buildings, lamp posts, fences, carports. Just about anything you can hit with your car.

Medical Payments pays medical expenses for you, members of your family and passengers in the event of an auto accident regardless of who caused the accident. It even covers you if you’re a pedestrian.

Wage Loss covers your loss of wages during the time you are unable to work due to an auto accident.

Uninsured Motorists pays for injuries if you’re hit by a driver who doesn’t have insurance. Even in states where insurance is mandatory, there are lots of drivers on the road who don’t have any insurance.

Underinsured Motorists makes up the difference between the paltry liability some drivers may have and the cost of the accident.

Comprehensive pays for car repairs due to non-collision and "Acts of God" events such as a storm blows a tree onto your car. It also covers loss from theft.

Collision is for damage to your car as a result of colliding with another vehicle or object.

Rental Reimbursement pays a pre-established amount per day for so many days for use of a rental car while your auto is being repaired as a result of a Collision or Comprehensive type loss.

So, that’s a quick overview of the coverage found in a typical Personal Auto Policy. Please be aware that this information is offered for general purposes. It is not a legal definition of any policy, many of which vary slightly, and is not a substitute for reading and understanding your own policy!

Now, let’s look at some of the Tricks of the trade to see How You can save Money on your Automobile Insurance!

Money Saving Tip #1 - Raise your Deductible. Your "deductible" is the amount you pay when you make a claim before your insurance "kicks in". In other words, if you have a $1,000 claim and a $250 deductible, you pay the first $250 and your insurance company pays the next $750. The disadvantage of raising your deductible is that when you do make a claim, you’ll pay more. the advantage of raising your deductible is that your premium will go down, sometimes by as much as 15% to 30% on your Comprehensive and Collision insurance.

Money Saving Tip #2 - Drop Comprehensive &/or Collision on older vehicles. Sometimes it’s just not worth paying for these kinds of insurance if your car is not worth much to begin with. That’s because the amount you pay for the deductible plus the amount you pay for the premium may be more than the value of the car itself. A rule of thumb is that if the car is worth less than $1,000, drop these coverages. Many people are comfortable with even higher figures. Kelley Blue Book can help you with the value of your vehicle.

Money Saving Tip #3 - Buy a "lower profile" vehicle. Part of what determines the cost of insurance is the kind of car you own. Some cars are favorites for thieves. Some vehicles like Sport Utility Vehicles (SUV) cause more damage to other vehicles that they hit and some cars are just more expensive to repair. Generally, these cars will cost more to insure. To get detailed information on your car or a vehicle you are thinking of buying, check out the Insurance Institute for Highway Safety.

Money Saving Tip #4 - Take full advantage of low mileage discounts.   Some insurance companies give discounts to people who drive less than a pre-determined number of miles each year.  Ask your agent for the various categories so you can check if you are properly rated.

Money Saving Tip #5 -Before you move, consider the cost of insurance.   Yes, the cost of insurance varies from place to place, even right within your own community.  Ask your agent about possible differences in insurance costs when you are considering a move.

Money Saving Tip #6 - Check out automatic seat belt and air bag discounts.   Most companies offer a credit if you have automatic seat belts and/or air bags.

Money Saving Tip #7 - Inquire about anti-lock brake discounts. Anti-lock brakes improve steering and stability when you try to stop your car.  Check with your agent.

Money Saving Tip #8 - Multi-Car Discounts.  Insurance companies offer significant  discounts when 2 or more cars are insured with them.  If you have multiple policies with the same insurer, make sure they are linked together so you receive this credit.  If you have several policies with different insurers, explorer the possibilities of bring them together under one company.

Well, there you have it.  Eight (8) ways to save money on your Auto Insurance.  This is certainly useful information and will save you money on your Auto Insurance if you are able to take advantage them. 

However

What if I told you that this is just the tip of the iceberg?   What if you could save 20% or more with just a few more tidbits of information?   Well, you can!

In my special Bonus Report, I reveal "Insider Knowledge" as to what goes into getting the best rates.  No fluff, just straight talk on what you need to know.  Where to look for the best rates, what credits you need to ask for, how insurers assign rating classifications, and much, much, more.