How To Get Even With Your Car Insurance Company In 5 Easy Steps
Car, auto insurance provides financial benefits in the event of vehicle damage or injuries to the body. Accidents involving traffic are a regular event in countries with a high population such as Pakistan. This is why insurance for cars become necessary for everyone. Every driver has to have insurance to protect his Car Insurance Company personal injuries and damages to vehicles.
Motor, Vehicle Insurance
The United Insurance Company of Pakistan Limited provides its customers with the best motor- auto sure plan. United Insurance provides affordable packages with great benefits and services which are as follows:
- Accidental External means
- Riots, Strikes & Malicious Damages
- External explosion or fire, lightning, or self-ignition
- Third Party Liability
- Value Plus Features
- Free towing to the nearest workshop
- Repair your vehicle in the garage of your choice
- UIC claims experts will help in the preparation of the final Police Investigation Report
- Free PA/PTD covers of Rs.30,000/- to the driver who has died. (In case of insured car accident only)
- Free death repatriation for the driver in Pakistan
- Funeral costs and arrangements for the deceased will be covered by UIC
No hidden taxes & charges
We promise to settle all claims for total loss and theft within 30 days of receiving all required documents.
Part 1 covered the first five ways to lower the cost of car insurance. In Part 2, we show you the fifth and sixth strategies.
Step 1 Review, Cancel Change or Cancel No Fault & Personal Injury Protection
No-Fault Insurance as well as its twin – Personal Injury Protection – were excellent ideas at first. Your premiums were going to be reduced. Then your State Politicians got involved (at the urging of Insurance Lobbyists of course) and caused a mess.
The original purpose of no-fault insurance was to pay for the losses of each person from their car insurance company, regardless of fault.
Car insurance companies across many States are earning huge amounts of money, and it’s not their fault, because they persuaded legislators of the state to pass “modifications.”
Today, because of the these changes, car insurance companies have actually used the no-fault law to cut the amount they will pay on a claim submitted by a consumer rather than reducing insurance premiums like they were intended to do.
So, premiums keep going up and up, and insurance companies will end up paying less for claims. Someone is making a fortune on that deal .and the person who is getting rich is not you.
To make things worse To make things worse, certain States, with really experienced Insurance Lobbyists demand that an additional fee be paid in addition to the insurance premium that is no-fault. This is Personal Injury Protection (PIP).
PIP can offer Collision Coverage in addition to Hospitalization as well as Social Security Disability. It also offers Workers Comp, Personal Disability Insurance, Life Insurance and Workers Comp.
PIP is not the right policy for you.
These insurances are already covered by you, if any, anyway. You’re now paying twice!
So, you need to complete a couple of things:
- Google “minimum amounts of mandatory auto insurance” to find out whether No-Fault Insurance or PIP is required in your State;
- You should then check your policy. If it’s not mandated by your state to have No-Fault/PIP Coverage and is covered by your policy – remove it. Take the minimum amount set by your state to be No-Fault/PIP. Here’s how.
- If you are required to have No-Fault/PIP, ask for and obtain a deductible from your auto insurance company.
STEP 2 STEP 2 Cancel Medical Coverage.
Medical Coverage, as it is described on the majority of automobile insurance policies, includes the promise to cover “reasonable” medical expenses for those who are riding in your car should there be an accident as well as anyone in the car in case it is struck by another vehicle.
- You can cancel it. It’s not needed. Perhaps you’re wondering what the reason? You might be asking yourself what the purpose of medical coverage in the car insurance policy.
- Medical Plan, any Life Insurance Coverage you might have, in addition to the Liability Sections of almost every car insurance policy written 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.” You’re going to hear very sophisticated “scare tactics” to help change your mind.
The employee of the insurance company will reply “Well, if you’re in an accident and it’s your responsibility, who’s going pay for medical expenses for any injured passengers in your car?”
Here’s your solution. 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 save money by removing this insurance.
STEP 3 STEP 3 Cancel Dismemberment, Death and Loss of Sight.
Are you covered under any of these kinds of coverage on your current car insurance policy? If so , you need to cancel them.
Do not let anyone talk you into purchasing insurance for your car if it’s the first time you’ve purchased car insurance or if you’re just beginning to research quotes on car insurance.
Since, these insurance policies are a complete expense. These coverages are essentially life insurance policies which offer “glorified” options that come with ridiculous terms and incredibly high prices. If you are in need of life insurance, you should make it a separate Insurance Policy.
STEP 4: Cancel the Extras
- Are you covered by “Roadside Assistance”, “Rental Car Reimbursement”? You must cancel such policies.
- If you’re a first time insurance buyer or are looking to get a couple of quotes for car insurance Don’t be concerned about these coverages.
- Why? because they’re expensive, are rarely ever utilized, and restrict what you can and cannot accomplish.
Rental car reimbursement” insurance can be as little as $100 per year per vehicle covered by your policy. So if you have two cars, you’ll be spending almost $2,000 on rental car insurance in the next 10 years and you’ll probably never use it.
And roadside assistance? The peace of mind it provides is under attack by car insurance companies that want to deny it. Roadside assistance is a good idea. AAA is a better choice.
STEP 5 – Terminate Comprehensive & Collision Coverage On Older Cars.
If you own an older car , by that, I mean one that’s worth less than $2,000 in wholesale (the amount that a dealer would offer in the event of trading the car in) cancel the Comprehensive or Collision Coverage you have or choose not to when you request a car insurance quote.
Here’s why. If a car that is 8 years old and a brand-new car have identical damage and repair costs, both will be identical also, even though the car that is 8 years old is worth nothing.
You see the cost of a bumper and fender is the same regardless of whether it’s a brand new car, or one that’s 8 years old. This is why your insurance premiums won’t fall as the value of the car goes down. Your payments remain almost the same, year-after-year-after-year.
But, the bottom is the least of the value you can collect on that older car. If your vehicle is “totaled”, the insurance company will be able to pay for the wholesale value.
Let’s say that your car is worth $1,000 but the damages exceed $4,000 and you are covered by insurance. The insurance company will only give you $1,000.
You could receive $500 back. Sounds like a lousy deal .but that’s how it works.
The rule of thumb is this – you should cancel your collision and comp coverage when your vehicles value is less than $2,000 .or you’ll throw your cash to waste.
You’ve made some notes, and now you’re looking to make some changes to your auto insurance policy. Take out your phone and start cutting down your rates.
TOP 5 TIPS CAR INSURANCE COMPANIES USE TO MISLEAD people
1) They say that your insurance package doesn’t cover your accident.
Insurance companies from car insurance will do everything to stop paying you for your claim. They could claim that it’s due to an outside party, or, they even could try to blame you by manipulating your words!
Contacting your insurance company immediately following an accident can be an extremely stressful moment.
2) They secretly monitor their customers
Car insurance companies employ secret investigators to watch your movements. They aim to capture you recorded on videotape performing something that isn’t in compliance with the insurance policy.
To avoid being stalked in the future, it is essential to be transparent and honest with your insurance company from the very beginning, so that they cannot catch you red-handed and deny you a claim.
3) They can make you feel disillusioned to minimize the severity of your injuries
It is not the duty of an insurance adjuster provide you with any kind of medical advice or diagnosis. It’s the sole responsibility of an experienced medical professional to decide the type of treatment and any rehabilitation you may need.
Not only can this negatively affect your financial situation, it can adversely affect your long-term health. Your health is the biggest asset!
4) They hinder your claim’s resolution
Car insurance companies do not earn money from the payment of claims, so they deliberately do not pay you when you file claims. They want to ensure that you do not file a claim and take a small settlement, or worse, go to the hospital.
Most likely the adjuster won’t be available to give you a status update. They’ll likely call you back. It’s not common and usually informs you that your adjuster not available.
5) They ask you to release your medical records
You should not release your medical information to insurance companies following an accident, unless you have spoken with an experienced personal injury attorney.
Insurance companies will try to convince you that they’re concerned about your wellbeing and that they have advice for you, but all they’ll be doing with your medical records is looking for loopholes in your claim, which will enable them to offer the less you’re entitled to.
Questions and answers regarding Car Insurance Claims
What is the reason why car insurance companies need this information?
To determine if you are a risky client insurance firms will be asking you a range of questions.
Most of these questions make sense and are relevant to the driver in your life, for instance, how often you drive. Although it might not immediately be apparent why insurance companies ask these questions,
The area you live in will influence the amount you pay. You’ll pay more if you live in urban regions. In urban areas, there are more accidents, theft, and vandalism. So insurance companies raise rates to pay for claims arising from these kinds of incidents.
Other questions are also asked, but they appear to be completely random. Why do insurance companies ask the status of your marriage? While the research isn’t comprehensive or up-to-date, it is obvious that singles tend to claim as married couples. Insurance companies raise rates for singles.
For insurance on cars in California it is not based on credit scores to determine the rates. Insurance companies will claim that having a lower credit score can affect a person’s likelihood of having to file claims. What actually happens is that insurance companies offer more for good drivers who earn less.
If you do not live in California your credit score is affected. This will affect your rates.
1. How much automobile insurance do I need?
Unfortunately, there’s not a universal number that can be used for everyone.
There is one way to figure out how much insurance for your car you need. The amount you pay for insurance is about equal to your assets and income.
Add the combined value of your vehicle as well as savings and investments. For the best protection, you’ll want to have that amount equal to or at least close to your bodily injury liability limit. This is the middle figure of your policy liability coverage limit which is 25/50/25.
2. My rate is way to be too high. Do you know of a possibility to lower my rate?
There are many things you can do to lower your rates. There are some actions you can take quickly, but others require time.
An easy fix is to increase your deductible. However, before you raise your deductible until it is an absurdly high amount, you should remember that it’s the amount you pay when you make a claim. Save some money to pay the deductible.
If you think about the long term, you can work on your driving habits. You can get summons or a ticket which will be noted on your driving record. Your insurance rates will rise because of it.
Don’t worry your driving record won’t remain permanently not branded. Tickets and violations drop off in between three and five years. After a while, you’ll be driving with a clean record.
Making claims also increases your insurance premium, so be careful and aware every time you get behind the wheel.
3. Do any discounts exist? And how do I determine if my situation qualifies to take advantage of discounts?
All insurance companies have several categories of discounts, like loyalty to customers and driving history, demographics driving education, automobile equipment.
You can receive discounts on a variety of items:
- Being part of an alumni or professional organization
- You decide to settle your policy in full, you’re on auto-pay, or you went without paper
- You can obtain insurance through your employer
- Your car comes with anti-lock brakes or an electric vehicle or hybrid, like the Toyota Prius.
- You’re a safe driver or an excellent student
- You’ve decided to renew your policy earlier
- You should always ask your agent about these discounts since you’ll never know which discounts you can qualify for.
4. I’ve been told that it’s best to bundle my insurance. What exactly does that mean?
- Bundling insurance policies allows you to get several policies from the same company. Multi-policy discounts can be a savings option for insurers.
- Discounts are available to a variety of combinations of homeowners, renters, as well as life insurance.
5. What happens to my car to my insurance?
- Your insurance premium will be affected by the make and model you drive. Certain cars are more costly to insure due to the fact that they’re more costly to repair.
- If you’re interested, you can determine the impact of your car on insurance rates using the insurance calculator of Cover’s tool.
- This is despite the fact that 44 percent of Americans believing that having red cars will result in higher insurance rates. Your car’s color has no impact on the amount of insurance you pay.
- You may want to think about getting an red car if you are considering it.
6. Is my car insurance able to pay for rental cars?
- In general, the car insurance you own on your car will also cover rental vehicles.
- If you have limit on your policy, you may want to consider buying the insurance for rental cars they provide at the counter to get that additional security.
- Combining these two options can ensure you are secured in the event of an accident.
7. What happens if there are no discounts available and my car insurance rate is not lower?
- Spend this time shopping for a bargain.
- Although it can be time-consuming, having multiple quotes from various insurance companies is a great way to cut costs.
- Prices can vastly vary between insurance firms. It is possible to shop around to ensure you get the most affordable rate, and you’re not paying excessively.
- Cover can provide you with an automatic quote in just five minutes. All you have to do is answer a few short questions.