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Car Insurance Deductible – Pay off your debt today. MMI will put you on the path to becoming debt free. Let’s do it. Together
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Car Insurance Deductible
When used wisely, credit cards can open all kinds of convenient doors, but when used recklessly, they can dig you into a financial hole.
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Car insurance can be one of the biggest budgets you’ll face, especially if you own more than one car. And there are many factors that determine the cost: where you live, how much you drive, purpose of driving (business or personal), driving history, credit history, what kind of car you drive, etc.
But you can’t go without insurance. If you drive, you should have one. Otherwise, you may be fined and your driver’s license may be revoked. Not to mention the costs you would have to pay if you were actually involved in an accident. Car insurance is essential.
Most Americans drive a car these days. 95 percent owned a car, compared to only 60 percent in 1940. And 85 percent use these cars to get to and from work.
If you’re ready to save money on your car insurance, you’ve come to the right place. There are several ways to reduce this cost, starting with these two quick options:
Car Insurance Calculator: Estimate Your Monthly Costs (2024)
You can even get discounts that you don’t know about. For example, many professional associations offer their members useful services and products, including discount codes for car insurance. Make a list of all associations you are a member of, including networking associations, online groups, and alumni associations. Then call your insurance company and go over the list with them. They can search the names of various associations to see if they have membership discounts.
The best time to contact your insurance company is to contact them instead of trying to email or live chat. Ask about discounts you qualify for; You might be surprised at what you learn.
While both of these options are quick solutions to lower your insurance premiums immediately, saving big will take some research and work. You should be prepared to spend some time researching your options, but if you can reduce your premiums significantly, it will be time well spent.
First, make sure you have the right insurance for your needs. Insurance companies want to insure you as much as possible so they make money, but insurance coverage isn’t always necessary. The truth is, you’re more likely to overprotect because of the minor bends in most accidents.
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There are different types of coverage. It’s important to understand them and get the right size for your lifestyle. Check out the different types of coverage you may need:
Liability Insurance: If you cause any damage, you will be reimbursed. No one will get hurt in your car or another car.
Bodily Injury Liability Insurance (PIL) – This covers the medical expenses of anyone injured in an accident that is your fault. This coverage is usually defined as 20/50 or 100/300. Basically, a 20/50 policy will pay a maximum of $20,000 per person injured and a total of $50,000 for everyone involved.
Property Damage Liability Insurance: Damage to the other car if the accident is your fault. In your insurance policy information, it is sometimes listed as the third number in the equation. For example, a 20/50/10 policy covers $20,000 for injuries to one person, $50,000 for injuries to others, and up to $10,000 for damages to the other vehicle if the accident is at fault.
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When determining your liability insurance needs, it’s important to remember that if your coverage is exceeded, you will be responsible for the remaining costs and will pay out of pocket. If you are involved in a serious accident and are found at fault, your assets and credit may be at risk. A good rule of thumb is that your insurance should be greater than or at least equal to your total assets, including your home, cars, investments, savings and other assets you own.
Personal Injury Protection (PIP): This insurance covers the medical expenses of you and your passengers due to an accident. As a bonus, these injuries can cover lost wages if you are fired.
If you have adequate health insurance and disability coverage, you may qualify for the minimum coverage required for PIP. But if you don’t have quality health insurance or disability insurance, you may want to increase your PIP because your medical expenses will exceed the cost of the property damage.
Uninsured or Underinsured Motorist Coverage – Helps cover your costs if you’re in an accident caused by someone else and are uninsured or underinsured. This insurance is required in most states and is usually very affordable. This can make a big difference if you are involved in a major accident. It covers medical expenses not covered by your health insurance. This coverage should be equal to your BIL coverage.
Liability Car Insurance
Scope of conflict: Any repairs made to your car after an accident are covered. The amount to cover it can vary depending on the type of car you own. For example, BMW parts cost more than Honda parts. You are responsible for any costs that exceed the insurance limit.
Comprehensive insurance: Covers expenses related to theft or damage to your car outside of accidents. This will help you trade for cars that are equal to or less than yours.
For collision and comprehensive insurance, it’s important to consider only what your car is worth in today’s market. Your car starts to wear and tear as soon as you drive it, and wears out over time. As your car depreciates over time, it may be a good idea to ditch these cards and use them to save money on your next car.
If you don’t know what your car is worth, you can quickly find out on the Kelly Blue Book website. Click Rate My Car and enter the make, model, mileage, features and where you currently live. This will tell you what your car is worth to sell or sell.
How Car Insurance Companies Value Cars
Take a closer look at your car insurance policy and see how much you’re paying for collision and comprehensive coverage each year. If these numbers are more than 10 percent of your potential payments (minus your car deductible), it’s time to consider dropping them from your insurance.
This research may take a lot of time, but the savings will add up immediately and over time. Remember that every financial change in your favor adds up every month, creating more profitable breathing space for your budget.
Now that we’ve seen some direct and profound ways to save on your current policy, there’s another option. Change insurance companies entirely.
Less than 25% of all drivers take the time to purchase their insurance policy regularly. But half of buyers switch to another company with lower premiums.
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How can different insurance companies provide lower prices for the same insurance on the same vehicle in the same state? Simple. Not all insurance companies measure risk the same way, so you may be high risk with one company and medium risk with another. Don’t expect to pay the same no matter which company you choose. A previous accident history is more valuable to one company than another. Living in a busy city can cost more for one company than another. Your credit score may count for one company but not another. It’s worth taking the time to research and find out what other companies are charging.
Consumers often don’t take the time to do their homework and buy because it’s not an easy task. According to a NerdWallet study, “88 percent of drivers say that shopping for car insurance is frustrating because it takes too long, it’s difficult to compare rates, or it invades their privacy.”
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