How To Slash Your Car Insurance Costs Up To 54 In 10 Easy Steps - Part 2
Below is a MRR and PLR article in category Finance -> subcategory Insurance.
How to Slash Your Car Insurance Costs by Up to 54% in 10 Easy Steps - Part 2
Summary
Learn how to significantly reduce your car insurance expenses, regardless of your state, age, or driving record.Key Points
- Cheap car insurance quotes- Car insurance tips
- Reduce car insurance costs
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In Part 1, we introduced five strategies for cutting car insurance costs. Now, let's explore five more effective steps.
Step 6: Review, Change, or Cancel No-Fault & Personal Injury Protection (PIP)
Originally, no-fault coverage and PIP were revolutionary ideas meant to lower premiums by covering each person's losses regardless of fault. Unfortunately, changes influenced by insurance lobbyists have led to higher premiums and fewer claim payouts.
Now, in many states, insurance companies profit from these laws, while you pay more. Some states even require extra premiums for PIP, which often overlaps with existing coverage you may have, such as collision coverage or life insurance.
What to Do:
- Check if no-fault or PIP is mandatory in your state via a quick Google search.
- If not required, cancel it. If required, opt for only the minimum coverage and consider getting a deductible.
Step 7: Cancel Medical Coverage
Medical coverage on car insurance pays for reasonable medical expenses for passengers in your car during an accident. However, this is usually duplicate coverage if you already have medical insurance.
Why Cancel It?
- Your existing health or hospitalization plans cover your family.
- Your policy's Bodily Injury Liability already covers others, along with their health plans.
Don’t fall for scare tactics. Removing this duplicate coverage can save you money.
Step 8: Cancel Death, Dismemberment & Loss of Sight Coverage
These coverages often serve as overpriced life insurance with restrictive terms. Cancel them if you have these on your policy.
Alternative:
- If you need life insurance, get a standalone policy that offers better coverage at a reasonable cost.
Step 9: Drop the Extras
Extras like "Roadside Assistance" and "Rental Car Reimbursement" might seem appealing but are often overpriced and underused.
Why Avoid Them?
- Rental car coverage can cost $100 annually per vehicle, adding up over time without being used.
- Roadside assistance through your insurance is costly; consider AAA for a more affordable option.
Step 10: Terminate Comprehensive & Collision Coverage on Older Cars
For cars valued under $2,000, comprehensive and collision coverage doesn't make financial sense. The repair costs are the same for old and new cars, but the payout for older cars is minimal.
Example:
If your car is worth $1,000 and total damage exceeds $4,000, the insurance will only cover the car's value, minus your deductible.
Recommendation:
- Cancel these coverages when your car's value drops below $2,000 to avoid unnecessary expenses.
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With these steps in mind, contact your insurance provider and start reducing your premiums today!
You can find the original non-AI version of this article here: How To Slash Your Car Insurance Costs Up To 54 In 10 Easy Steps - Part 2.
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