Five Steps to Get Even with Your Car Insurance Company
Car insurance, gives financial compensation in the event of vehicle damage or injuries to the body. In highly populated areas like Pakistan traffic accidents are part of the daily routine. Car insurance is essential for everyone. In this hustle and bustle situation to deal with such situations, all drivers driving must have Car Insurance Company for the coverage of damages to their vehicle as well as personal injuries.
Insurance for Motor Vehicles
The United Insurance Company of Pakistan Limited facilitate its clients with most efficient motor-auto-sure plan. United Insurance provides affordable packages with excellent benefits and services which are as follows:
- Accidental External means
- Riots, Strikes & Malicious Damages
- Fire, External explosion self-ignition, lightning, or frost
- Third Party Liability
- Value Added Features
- Towing is free to the closest workshop
- Get your car repaired from the garage of your choice
- UIC claims that experts will help in obtaining the final police Investigation Report
- For the deceased driver, free PA/PTD protection of Rs.30,000 Only in the case of an insured car accident
- Drivers are eligible for the free repatriation of their bodies within Pakistan
- UIC will pay funeral costs and arrangements.
No hidden taxes & charges
We will resolve all theft and total loss claims within 30 days of submission of the required documents
Part 1 of this series covered the first five strategies for reducing your car insurance cost. Part 2 will show you the next five strategies.
STEP 1 Review, Cancel Change or cancel No Personal Injury or Fault Protection
No-Fault Coverage, and it’s twin, PIP, started out as great idea’s. The premiums of your clients were to be lowered. Then, your State Politicians were involved (at the urging of Insurance Lobbyists of course) and did a blunder.
No-fault insurance coverage was originally designed to cover each person’s loss insured by their personal car insurance company – no matter who was responsible.
Today, in a variety of States car insurance companies are earning huge profits on no-fault because the insurance companies got State legislators to approve “modifications.”
In the present, due to changes in the law, car insurance companies have been using the no-fault laws to reduce the amount they will pay on a claim submitted by a client, instead of reducing car insurance premiums, as they were supposed to do.
The result is that prices continue to rise, and insurance companies are paying less to settle claims. It’s not you.
And to make matters worse There are some States (with extremely skilled Insurance Lobbyists) also require an additional premium to be paid on top of the no-fault insurance premium. This kind of thing is known as Personal Injury Protection (PIP).
PIP is a “wide-blanket” of coverage . It will cover Collision Insurance, Hospitalization, Social Security Disability, Workers Comp, Personal Disability Insurance & Life Insurance.
PIP isn’t the right policy for you.
These insurances are already covered by you, if any, anyway. That’s why you’re paying double!
Also, you have to complete a couple of things:
- Google “minimum auto insurance requirements” to determine if you need No-Fault and/or PIP coverage in your state.
- Next, review your policy. You can cancel your policy in the event that your state does not require No-Fault/PIP coverage. If No-Fault/PIP is required by your State , then you should take the absolute minimum. Here’s how.
- If you have to get No-Fault/PIP, you must obtain a deductible from your car insurance company.
Step 2: Cancel Medical Coverage
Medical Coverage, which is a feature of most auto insurance policies, is the promise to cover “reasonable” medical expenses to any person riding in your car should you be involved in an accident, or anyone else inside the car in case it is struck by another vehicle.
- You can cancel it. It’s not necessary. Perhaps you’re wondering what the reason? Well, medical coverage as part of your auto insurance policy is a duplicate of your own
- Medical Plan Any Life Insurance coverage you might have, as well as; – The Liability Sections on nearly every auto insurance policy made in the U.S.
- Think of it this way .Do you have a Health/Medical/Hospitalization Plan through 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.” To change your mind you’ll be exposed to some clever “scare tactics”.
The insurance company employee will say “Well when you’re in an accident and it’s your responsibility, who’s going pay for medical expenses for any injured passengers inside your car?”
Here’s the 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. You can therefore save cash and cut out this insurance.
STEP 3: Cancel Death, Dismemberment and loss of sight.
Do you have these coverages on your existing insurance policy? If yes, then you should cancel them.
And if you’re a first time buyer of car insurance or, just looking at the possibility of getting multiple quotes on car insurance Do not let anyone push you into buying them!
These policies are a total waste of money. Most of these optional coverage’s are “glorified” life insurance policies with ridiculous provisions and outrageously high rates. If you need life insurance, consider making it a separate Insurance Policy.
Step 4: Cancel the Extras
- Are you covered by “Roadside Assistance” or “Rental Car Reimbursement” on your policy? If yes, you should cancel them.
- These insurance policies are not recommended to anyone who is an insurance first-timer or even just looking at a few quotes on car insurance.
- Why? Because they’re extremely expensive, are rarely ever employed, and are a limitation of the things you are able to and can’t do.
Rental car reimbursement” coverage could be as low as 100 dollars per year for each vehicle covered by your policy. If you have two cars, you will spend nearly $2,000 per year on rental car coverage. You may never use it.
What about roadside assistance? Your peace of mind is being trampled by insurance companies that are in the market for it. It’s a good idea to have roadside assistance. AAA is the best choice.
STEP 5 – Terminate Comprehensive & Collision Coverage On Older Cars.
If your car is more than $2,000 wholesale that is the amount a dealer would pay you if your car were sold, you may end the entire Comprehensive and Collision insurance or opt to decline the option after you receive a quote for car insurance.
Here’s why. A brand-new car costs the same to repair as an 8-year-old car with identical damage. The 8-year-old car is worth nearly 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. Your insurance premiums will not decrease because the value of your car declines. Your payments remain almost the same, year-after-year-after-year.
However, the lowest value is a drop-out of the value you can collect for the car that is older. If your vehicle is “totaled” and insurance companies will only be able to pay for the value of the wholesale.
Let’s say your car is worth $1,000 but the damage is greater than $4,000 and you’re covered by insurance. Insurance companies will only give you $1,000.
In the end, you could receive 500 dollars back. It sounds like a terrible deal .but that’s the way it is.
The rule of thumb is to cancel your collision and comp insurance if the vehicle’s value is lower than $2,000 or else you’ll be throwing your money away.
You’ve made notes and you are now looking to make some changes to your auto insurance policy. Therefore, pick up the phone and get started cutting down your rates!
TOP 5 TRICKS CAR INSURANCE COMPANIES USE SPREAD people
1) They say that your insurance plan doesn’t protect your accident
Insurance companies are willing to do everything to deny you payments. They might claim it’s the fault of an outside party, or they may even try to blame you, by manipulating your words!
Talking to your insurance company immediately following an accident can be an emotional time.
2.) They secretly monitor their customers
Secret investigators are hired by car insurance companies to locate you. The goal is to catch you on video tape performing an act that is not compliant with your insurance policy.
It is crucial to be honest with your insurance company, in order to avoid being monitored.
3) They can cause disillusionment in order to reduce your injury
In no way should an insurance adjuster give you any kind of medical advice or diagnosis. It’s up to an experienced medical professional to decide the type of treatment and potential rehabilitation, you require.
Not only can this negatively affect your long term financial situation, but it could adversely affect your health over the long term. Your health is your primary asset!
4.) They can delay the resolution of your claim
Car insurance companies don’t make money when they settle claims, so they deliberately avoid you when you submit an insurance claim. They want you to not file a claim and accept a low settlement or worse, go to the hospital.
Most likely, your adjuster will not be available to give you a status update. They’ll likely contact you later. This call will not come however, when it does, it’s usually simply to inform you that your paperwork is being processed without a timeline to be seen.
5) They will ask you to provide your medical records
At no point should you divulge your medical information to your insurance company in wake of an accident without consulting with an experienced personal injury accident attorney.
Insurance companies will try to convince you that they’re Car Insurance Company concerned about your wellbeing and that they are able to offer you advice but all they’ll actually be doing with your medical records is searching for gaps in your claim which allows them to offer you less than you’re entitled to.
Questions and answers on Car Insurance Claims
What is the reason why car insurance companies need all this information?
Insurance companies ask a range of questions to best gauge the risk you are should they decide to take you on as a customer.
Most of the questions you are asked are quite understandable and pertain to your role as a driver. For example, how often do you drive. It’s not always clear why insurance companies ask specific questions.
For instance your location can affect the amount you pay. You’ll pay more when you live in urban regions. Cities are the most prone to accidents, thefts as well as vandalism. Insurance companies increase rates to cover these kinds of events.
As for other questions, well they’re just random. What is the reason insurers want to know the status of your marriage? It’s not a lot of research and the studies are outdated however, it is believed that single people tend to have more claims than married couples. Insurers raise rates for singles.
For insurance on cars in California, they don’t use credit scores to decide rates. Insurance companies will say that the lower score on a credit report can affect the likelihood of filing an insurance claim. The reality is that insurance firms charge higher rates to good drivers who earn less.
If you do not reside in California Your credit score is affected. It will impact your rates.
1. What amount of car insurance do you require?
Unfortunately, there isn’t a universal number that will work for everyone.
There’s a way that you can figure out how much car insurance you need. Purchase a level of insurance that’s approximately proportional to the amount of assets and income you want to protect.
Add up the worth of your vehicle or savings account, as well as investments. You want to make sure that the amount you see on your insurance liability limit for bodily injuries is at or close to it, to guarantee maximum protection. This is the middle number that you’ll see on your policy liability coverage limit, which is 25/50/25.
2. My rate seems to be too high. Do you know of a method to reduce my rate?
There are numerous things you can try to lower your rates. Certain things can be done in the short-term and some things take some time.
It’s possible to increase your deductible easily. Make sure you know that the deductible is what you’ll pay when you file an insurance claim. So make sure you keep some funds saved to cover your deductible in the event of.
You can enhance your driving habits by thinking long-term. Any time you get a ticket or a citation the information is recorded on your driving record. The cost of your car will increase due to the fact that you were ticketed or cited.
Your driving record will not remain on file forever However, don’t be concerned. The number of tickets and violations decreases anywhere between three to five years. In the end you’ll have a clean driving record.
The filing of claims can also raise the cost of your insurance So be cautious and attentive each time you take the vehicle.
3. Do you have any discount codes? How can I tell whether I’m qualified?
Each insurance company has a variety of types of discounts, such as customer loyalty, driving history, demographics training for drivers, as well as car equipment.
Receive a discount on a variety of items:
- Involvement in an alumni or professional group
- You decide to pay for your insurance in full, and you’re on auto-pay, or you made the switch to completely paperless
- If you have insurance through your employer
- Your car has anti-lock brakes or a hybrid vehicle, like the Toyota Prius.
- You’re a safe driver or you’re a great student
- You decided to renew your policy earlier
- You should always ask your representative about these offers since you’ll never know which discounts you qualify for.
4. I’ve heard that it’s best to combine my insurance. What exactly does that mean?
- Bundling insurance policies will allow you to purchase multiple policies from one company. Multi-policy discounts could be an opportunity to save for insurers.
- Discounts are available for various combinations of auto, homeowners, renters and life insurance.
5. Does my car have an effect on my insurance?
- Yes, the brand and model of your car directly affects your premium. Certain cars are more costly to insure due to the fact that they are more expensive to repair.
- Cover’s insurance calculator tool will help you determine the impact of your vehicle’s use on the insurance rates you pay.
- This is despite 44 percent of Americans believing that owning red cars will lead to higher rates for insurance. Your car’s color has no impact on the amount of insurance you have to pay.
- You may want to think about getting a red vehicle if you were thinking about it.
6. Does my insurance policy allow me to cover rentals cars?
- In general, the car insurance you have on your own car will cover rental vehicles.
- For those who have low policy limits, it might be worth looking into leasing a rental car for insurance.
- Combining these two options can ensure you are protected in the event an accident.
7. What happens if I’m out of discounts and my car insurance isn’t significantly lower?
- Spend this time shopping for a bargain.
- It can seem time-consuming However, having multiple quotes from various insurance companies can only be beneficial to you.
- The cost of insurance can be very different between companies. You can shop around to ensure you get the best rate and aren’t paying too much.
- In just five minutes, you can receive an instant quote from Cover. All you need to do is to answer a few short questions.