Car Insurance Broker
5 Car Insurance Policies Your Broker Isn’t Telling You About
Car insurance is something every driver needs, but nobody wants to worry about. So many drivers buy a standard insurance package, pay their premiums every month, and don’t realize that there are many other policies that insurance companies don’t exactly publicize. Here are five little-known insurance options that could save you plenty of money.
- Uninsured and underinsured driver coverage: All drivers are legally obligated to insure their vehicles before going out on the road. Unfortunately, just as there are tens of thousands of Americans driving without licenses, there are tens of thousands of drivers out there without insurance. If you get into an accident with an uninsured driver, you may be liable for huge amounts of money. Likewise, the process of filing a claim when one of the drivers involved doesn’t have insurance can be incredibly frustrating. Many drivers don’t realize that their policies do not cover accidents with uninsured drivers, and most insurance agents aren’t especially inclined to let you know. Make sure you are covered by asking your insurance agent about uninsured and underinsured driver coverage, so someone else’s mistake won’t end up costing you your hard-earned money.
- Higher deductibles: In the insurance industry, a deductible is the amount of money you have to pay when filing a claim before your insurance company steps in to cover the rest. Most policies offer a standard $500 deductible, meaning the insurer is responsible for any damages above and beyond $500. What many people don’t realize is that they can opt for a higher deductible, and that the size of their deductible is directly related to the size of their monthly premiums. The higher your deductible, the less you pay for insurance each month. Raising that deductible is a great option for drivers who aren’t likely to be in an accident, such as experienced drivers, low-mileage drivers and people who live in low-risk areas. Plan ahead, though, and put away some money to pay that higher deductible just in case.
- Decreased coverage: Most drivers automatically opt for full coverage on every vehicle, no matter what the circumstances. Consider cutting back on coverage areas that you don’t really need. For instance, if you have a second vehicle, you may not need rental car fee coverage. If you have a membership elsewhere that gives you reduced towing or automobile service charges, it may not make financial sense to have those things covered by insurance. For older vehicles worth fewer than $1,000, it’s usually smart to eliminate collision and comprehensive coverage because repairing that car is not likely to be worth the cost. Your insurer won’t tell you to cut back on coverage, and with good reason. Eliminating these unnecessary pieces can save you up to 50% on your monthly premiums.
- Paying in full: You have to pay your insurance premiums every month, right? Actually, many drivers save money by paying their premiums in full every six months or every year. Of course, due to budgetary constraints this isn’t a viable option for everyone. Most jobs pay weekly or biweekly, and expenses need to be matched to income. Still, if you think your budget can handle the increased up-front cost, talk to your insurance agent about payment in full. You may save quite a lot in the long run by making fewer, larger payments.
- Storage insurance: Perhaps you have a car that you don’t actually drive, or that you use only for part of the year. If you aren’t going to take that vehicle out on the road, why pay for insurance as if you were? Look into buying a storage insurance policy, which is not legal for driving on but will pay out if something happens to that vehicle during storage. This type of policy is much cheaper than regular insurance because the risk of an accident is very small. Alternatively, if your unused vehicle is old and has little value, the best insurance option may be to not insure the vehicle at all.