Saving Money on Car Insurance

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 Today one of the biggest expenses that families are feeling has to do with their vehicles.  Whatever your car payment is, and even if you’ve managed to pay off your car, the expenses of gas, maintenance, oil changes, fluid refills, license renewals, and other such costs can take up a large percentage of your family’s budget.  And it really doesn’t matter what day or year it is as you’re reading this information, chances are that gas prices are sky high and aren’t dropping significantly at all.

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Unfortunately very few areas of the country are designed in such a way that you can actually go without a car.  In some cities there are mass transit systems or adequate means of public transportation, or the city might be laid out in such a way that one can easily walk to the office.  Many people in Manhattan go without a car and do just fine, but this city is typically the exception to the rule.

In most places, a car is not just a luxury it’s a necessity.  You can’t get to the office or the supermarket or anyplace else without your own vehicle.  Despite some cities best efforts to improve public transportation, and despite the rising costs of automobiles and their upkeep, they’re something that people just can’t seem to give up.

Many families also need more than one car.  In many homes both the husband and wife work outside the home, which means that they both need transportation to and from the office.  Because they both work, when there’s a teenager that also has a job he or she may want and even need their own car.

Even if one parent doesn’t work outside the home, trying to run errands and get the kids to school and do everything else with just one car in the family can be an impossibility.  So not only are cars one of the biggest chunks of a family budget, many families need more than one chunk taken out of their budget for a vehicle.

And of course one of the biggest expenses when it comes to a car’s upkeep has to do with insurance.  Legally you need to have your vehicle insured if you plan on driving it at all, and unfortunately the monthly charge for coverage can sometimes be just as much as the car payment itself, if not even more!  And the more expensive your car, typically the more expensive your insurance if you have coverage that means reimbursing for the cost of the vehicle.  The more your car is worth, the more your insurance company would need to pay which means the more they need to charge you.

It’s unfortunate that while virtually everyone has car insurance, very few people actually understand what they’re purchasing month after month – which means that many people are easily victimized by insurance reps who don’t tell them all their options or who have coverage that they don’t really need.

Many also don’t really understand how the insurance industry works and assume that all insurance companies are the same.  When it’s time for insurance they call the first company they see in the phone book or the one nearest to their house and don’t really do any comparison shopping, which can also cost them hundreds and even thousands of dollars every year.

They may also assume that if a policy is more expensive it must somehow be better.  They assume that if they’re paying more they must be getting more in terms of coverage and in what the insurance company will pay in case of an accident.

And there are many false assumptions that people have about what their insurance will cover and what is doesn’t cover in the event of an accident, a break-in, vandalism, and when they’re driving someone else’s car.  Some automatically assume that the term “full coverage” means that they’re absolutely covered no matter what happens to their car, when it happens, and whose fault it is that it happened.

All of this means that it’s that much easier to be paying for car insurance that you don’t need, or to be overpaying for the coverage that you do need.

If you’re afraid that you might fall into this category, or are just wondering if there’s any way to save yourself some money on the insurance you need, don’t despair!  That’s where we come in.  We’ve broken down the components of auto insurance and can explain every aspect of it to you in terms that you can understand, and can also give you recommendations on how to trim your auto insurance bill regardless of your car, where you live, and any other factor.

We’ll tell you:

  • What all those terms on your auto insurance policy actually mean; what they cover and what they don’t, and the difference between them.
  • Why certain people are required to have additional policy statements, and how they need to be prepared and submitted for your vehicle to legally be on the road.
  • The difference between full coverage and minimal coverage, and when it’s recommended that you maintain the full coverage – and when it’s recommended that you actually drop it.
  • What is meant by gap insurance, and whether or not you’re probably going to need it.
  • Different things that will affect your auto insurance rates, some of which may very well surprise you!
  • Your auto insurance binder is actually a legal document which explains in part why it can be so difficult for most to understand.  And because auto accidents and vandalism and so many other things that insurance covers can happen in many different ways and under different circumstances, it needs to be very detailed.

Which means that you have no reason for embarrassment if you’re unable to fully comprehend your insurance coverage.  But rather than just give up and sign whatever your agent offers you, it’s imperative that you do everything you can to fully understand all the coverage options you have so that you can make the best decision for yourself – and so that you’re sure you’re not overpaying for auto insurance!

So if you’re ready to really understand all that paperwork in front of you, we’re ready to help.  Let’s get started!