How To Slash Your Car Insurance Costs Up To 54% In 10 Easy Steps - Part 2

In Part 1, we detailed the first five strategies on how to cut your car insurance costs. In Part 2, we show you the second five.

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. Your premiums were actually going to be lowered. Then, your State Politicians got involved (at the urging of Insurance Lobbyists, of course) and mucked it up.

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.

So, premiums keep going up-and-up and insurance companies end up paying less for claims - Someone's getting rich on that deal....and it's not you.

And to make matters worse, some States (with really, really talented Insurance Lobbyist's) also require an additional premium be paid on top of the no-fault premium. This beauty is called Personal Injury Protection (PIP).

PIP is a "wide-blanket" of coverage and can provide Collision Coverage, Hospitalization, Social Security Disability, Workers Comp, Personal Disability Insurance & Life Insurance.

The problem with PIP and what it covers is....

You already gave most, if not all, of these coverage's anyway, don't you? So, you're paying twice!

So, you need to do a couple of things:

Google "minimum levels of required auto insurance" to see if No-Fault Insurance and/or PIP Is required in your State;

Then, check your policy. If it's not required by your State to have No-Fault/PIP Coverage and it's on your policy - cancel it. If No-Fault/PIP is required by your State....take the absolute minimum. Here's how.

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. You don't need it.

Why is that you say? 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.

Think of it this way....Do you have a Health/Medical/Hospitalization Plan thru work or an Association you belong to?

Then why are you paying premiums for Medical/Hospitalization Coverage on your Car Insurance Policy?

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." You're going to hear very slick "scare tactics" to help change your mind.

The insurance company employee will say "Well, if you're in an accident, and it's your fault, who's going to cover the medical bills for any injured passengers in your car?"

Here's your answer. Your family is already covered by your Health/Hospitalization Plan. 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.

So go ahead - save some more money and get rid of this coverage.

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.

STEP 9 - Cancel The Extras

Do you have "Roadside Assistance" or "Rental Car Reimbursement" on your policy? If so, cancel them.

And again, if you're a first time insurance buyer or getting a few car insurance quotes, don't bother with these coverage's.

Why? Because they're severely overpriced, are rarely ever used, and limit what you can and cannot do.

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.

And roadside assistance? The piece-of-mind it offers gets trampled by the premiums the car insurance companies want for this coverage. Roadside assistance is a good idea. But use AAA for a cheaper solution.

STEP 10 - Terminate Comprehensive & Collision Coverage On Older Cars.

If you have an older car - by that I mean one that's worth less than $2,000 wholesale (the amount a car dealer would give you if you were trading it in) cancel any Comprehensive and Collision Coverage you have or decline that option when getting a car insurance quote.

Here's why. 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.

You see the cost of a bumper and fender are the same - whether it's for a brand new car, or one that is 8 years-old. That's why your premiums don't go down as the value of the car goes down. Your payments remain almost the same, year-after-year-after-year.

But, the bottom drops-out of what you'll be able to collect on that older car. For instance, if your car is "totaled", your insurance company will only pay you the wholesale value of your car.

So, let's say your car is worth $1,000, but the total damage is more than $4,000, the insurance company is only going to give you a check for $1,000....minus your deductible, of course.

So you might end up getting $500 back. Sounds like a lousy deal....but that's how it works.

So, the rule-of-thumb is this - cancel your comp & collision coverage when your vehicles value is less than $2,000....or you'll be throwing your money away.

Okay - you've jotted down some notes and are ready to make some changes to your car insurance policy. So pick up the phone and start slashing your premiums!

How To Slash Your Car Insurance Costs Up To 54% In 10 Easy Steps - Part 1

How much do you pay for Car Insurance every year?

Eight hundred dollars a year? One thousand? Two thousand?

Whatever the amount you're paying now, you can slash that amount by more than 50% by simply following a few simple strategies.

Can you cut your car insurance costs by investing only 30 seconds of your time? No, that can't be done.

But if you're willing to spend 30 minutes today, this week, or next, I'll show you how to save up to $6,000 on your Car Insurance over the next 10 years.

Okay, here we go. Grab your Car Insurance declarations page (the page in your policy that details all the coverage’s you're paying for) and follow along. Make sure you take some notes. If you don't have your policy, or can't find it, call your car insurance company and get one - they'll send it to you pronto.

STRATEGY 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.

STRATEGY 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. That means if you're currently spending $1,000 a year on insurance, you're going to get to keep $400 every year. If you jump to a $1,000 deductible, you could keep almost $600 extra a year in your pocket.

I can hear some of you saying, "Wow, a $1,000 deductible. That's a lot of money." Yes, it is.

So is paying $1,000 a year with that $100 deductible....versus $400 a year with a $1,000 deductible.

The odds are in your favor - go with the $1,000 deductible.

STRATEGY 3 - Review & Change Property Damage Liability.

Have you ever seen a $100,000 mailbox? 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?

In most cases, almost 100% of all property damage claims can be taken care of with only $50,000 of coverage. So take a look at your policy to find out what you're currently paying for. And if you have little or no Net Worth, drop your coverage even lower - to $25,000 or your States minimum. 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 1st number is the dollar figure covered per person. The 2nd is the dollar figure per accident.

The 3rd number is the "Property Damage Liability." That's what you need to change. What does yours say?

STRATEGY 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:

- Any and all occupants of an automobile, whether it's yours or someone else's;
- Any and all occupants of another vehicle;
- And Pedestrians

Your only goal with this type of coverage is to have just enough protection to protect what is yours....in other words, your assets. And in order to protect your assets, you need to figure out what your Net Worth is - here's a well known site for calculating your net worth - www.kiplinger.com/personalfinance/tools/networth.html?

A great way to slash your premiums is to have no more in bodily injury liability than what your net worth is. 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."

Here's what to look for when trying to figure out how much coverage you have now. 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. In this example, there is $50,000 in coverage per person and $100,000 per accident.

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

STRATEGY 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.

Wrong.

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. These minimums are not advertised, change every couple of years and are very difficult to find. So, here's how you handle this.

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

Don't try looking for it. Finding the minimums listed is almost impossible on most State Web Sites - they've buried it so deep you'll never find it. Just call your State Department of Insurance.

I know it's a bit of a hassle to get the info yourself. Yet relying on the Insurance Companies to give you the correct information isn't very wise.

Next – Part 2 of “How To Slash Your Car Insurance Costs Up To 54% In 10 Easy Steps”

First Steps for the Irish Learner Driver.

The main priority for today’s Learner Driver should not be passing the Driving Test but embracing the philosophy of skills for life initially.

Surely passing the Driving Test is the main objective? Not So!

Your main objective should be to acquire the necessary skills that will keep you, your passengers and all other road users safe. This makes sense, but is not taken on board by a very large proportion of Irish learner Drivers, with the result that we have an appalling accident record here which impacts on the whole community.


The first and arguably most important step for the new driver is to enrol with a professional Driving School who will set the foundation for both basic and advanced skills and ensure that safety is a priority. The lack of basic skills throughout the motoring population is very widespread and stems from several inherent flaws which are only now beginning to be addressed by the Government.


Thankfully our membership of the European Club is forcing the various agencies that are involved in the whole motoring scene to take action and implement the various Directives on a structured time scale.


The Irish Driving Test only began in 1966 more than thirty years after the UK introduced that most feared of life events!
Most of the recent EU changes have usually taken effect here three or four years after the UK. These would comprise the Driver Theory Test, revised Test Marking Sheet, Provisional License revisions, and Mechanical Checks on the Practical Driving Test.


Aspects still to be rolled out will be Mandatory Tuition for Motorcycles and Cars and the long awaited Examination and Registration of Driving Instructors. One of the reasons for our poor standards on the roads, particularly within the young driver community is that Driving Instructor standards are not subject to scrutiny. It is quite commonplace to see Instructors giving tuition in a pupils car with no L plates displayed. This shows a complete disregard for the basic rule of Law and by extension the calibre of instruction has to be mediocre at best.


What can you expect on your first lesson with a Professional Instructor? Will you be taken into a city centre? Will you be taken on a high speed carriageway? Will you be driving off down the road in just five minutes? Absolutely not!


What will happen is a concentrated session covering many diverse subjects relating to both the workings of the car and all its equipment and a look at the current Driving Scene into which the new Driver is entering for the first time. An investigation of all the basic mechanics that are the responsibility of the Driver, and which now form part of the Driving Test, will take place, and a brief discussion on the current requirements of the Driving Test.


Once this is accomplished, the basic Cockpit Drill will be looked at along with all instrumentation and secondary controls. Following on from this section, a brief discussion on the use of the Gearbox will take place and then on to the most mystical of Car equipment …the Clutch. (That is of course assuming that we are driving a car with a manual Gearbox, with its accompanying Stick Shift.)


It surprises most beginners that it is the Clutch that moves the car and not the Gas pedal. In fact, since you are going to be on a level stretch of road for the first tentative steps, it is interesting to demonstrate that the Car does indeed move with the foot no where near the Gas Pedal.
This is the point at which we are learning the first real Driving Skill; that of understanding the Term “Biting Point” and how to recognise it.
In the very early stages, a complete mastery of being able to bring the Clutch to” Biting Point” and hold it steady is the key to Driving away smoothly in every different situation. No amount of gas pedal usage will move the car unless the clutch is at Biting Point first. Once the car begins to move, and is building up a little momentum, then the clutch can be fully released gently and the Gas pedal then comes into play.


Next follows a brief demonstration of the clutch control technique by the Instructor followed by the Pupil.
The sequence of moving off safely comes next, followed by the Real Thing, but of course it’s no use getting going if you then don’t know how to stop safely which will also be demonstrated. You are now on the move practising starting and stopping and the adrenalin is finally pumping after all the Theory!


Guess What? You will be doing the whole procedure in Reverse within a few minutes. Yes that’s right…Reversing! Reversing is such an integral part of every day driving that it’s something that can’t be left till later. If it is put off, then chances are that fear of failure will begin to creep in and that is not the object of Driving Lessons.


So there you have, in graphic (almost) detail, the first steps on your Driving Career. If you are going to progress steadily then you should be prepared to do plenty of homework in between your Lessons, with a pad and pen as well as reading the Notes which your Instructor will have given you!


There is plenty more where this came from, so take time to look at all the resources available and you should be well on the way to the basic apprentice stage after three or four weeks. The Driving Test is not a consideration at this stage and will only be addressed when you have a suitable level of skill built up over several months.