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9 Tips To Avoid Paying Optional Coverage Expenses

9 TIPS ON how to avoid paying optional Coverage expeis es Don't waste money on insurance you don't really need. Depending on your personal financial situation, location and insurance carrier, you may be able to reduce your premium ) by passing on the following coverage. MEDICAL PAYMENTS COVERAGE AND PERSONAL INJURY PROTECTION (PIP) Helps pay the cost of medical bills for the policyholder and passengers. Medical payments coverage starts where personal injury protection stops. stop! Who May Want to Buy Who May Not Want to Buy Those with lower limits on the bodily injury Those with good health insurance coverage both for the policyholder and the passengers. portion of their liability coverage. Policyholders with higher limits on the bodily injury portions of their liability coverage. UNINSURED/UNDERINSURED # 2 MOTORIST COVERAGE Covers a driver when someone else causes an accident that produces damage or injuries, but the at-fault driver lacks liability or enough liability coverage to pay for damages. This coverage is mandated in many states, so check requirements where you live. stop! Who May Want to Buy Who May Not Want to Buy Policyholders living or frequently driving with Those with existing health, medical and liability insurance may not need this coverage if their policies cover uninsured/underinsured motorists and they are prepared to pay to repair their vehicle or make up for any lost wages. in/through states above-average percentages of uninsured drivers. Top States with uninsured drivers are the following: 26% 24% NEW MEXICO OKLAHOMA 28% 24% MISSISSIPPI TN ок NM MS TENNESSEE EL 24% FLORIDA TOWING AND LABOR COVERAGE Pays for a tow if vehicle cannot be driven after an accident. go! stop! Who May Want to Buy Who May Not Want to Buy Anyone who regularly drives long distances, especially for cross-country trips. Vehicle owners who have roadside assistance provided by the car manufacturer or by a service such as AAA. #3 GLASS BREAKAGE Some companies include broken glass under their collision or comprehensive coverage. Even if they don't, this coverage generally is not worth its long-term cost. stop! Who May Want to Buy Who May Not Want to Buy Policyholders who regularly drive through construction sites or on unpaved roads. Vehicle owners with AAA or other automobile services. Policyholders with comprehensive coverage that includes windshield and glass damage. Policyholders who regularly drive during hazardous weather conditions or live or work in unsafe neighborhoods. COLLISION 5 INSURANCE Covers damages to the policyholder's vehicle caused by impacts with other cars or objects. stop! Who May Want to Buy Who May Not Want to Buy If your vehicle is paid off and is more than 10 years old, its value may not be enough to justify Those who have a loan on the vehicle, as this is almost always required by lenders. coverage. RENTAL REIMBURSEMENT RENT This option helps cover the cost of renting an automobile if yours becomes disabled or is being repaired after a covered accident. stop! Who May Want to Buy Who May Not Want to Buy Policyholders who don't have access to another vehicle or to public transportation or who cannot get rides from another motorist. If you can do without your car for a few days, either through using another vehicle, taking public transportation or riding with someone else, you can do without this option. COMPREHENSIVE INSURANCE Helps cover repairs for damage not involving a collision, including fire, storms and vandalism. It also covers car theft and break-ins. stop! Who May Want to Buy Who May Not Want to Buy This is almost always required by lenders. Policyholders who do NOT live and drive in a calamity prone area. Those who live in areas prone to bad weather, such as the Midwest during tornado season and the Northeast during winter. Policyholders who have paid off their loans and have vehicles that are 10 years old or older. LOAN LEASE GAP INSURANCE (GUARANTEED AUTO PROTECTION) Pays the difference between the blue book value of a vehicle and the amount of money still owed on the car. If leasing a vehicle or purchasing a vehicle with low/no down payment, gap insurance is a great idea. GUARANTEE stop! Who May Want to Buy Who May Not Want to Buy People who are leasing a car or who expect to owe more than the car is worth for a significant amount of time. Buyers who have arranged their down and monthly payments so as to ensure that they won't be "upside down" on the car for any significant period of time. FULL TORT/LIMITED TORT FULL LIMITED Reduce the insurance bill by giving up the right Those who opt for limited tort, on the other hand, are still entitled to compensation for medical expenses but do not have the right to sue a negligent party who caused the accident for any nonmonetary damges, including pain and suffering. to sue in the event of an accident. Insurance policyholders with full tort simply have the advantage of having the full rights to sue a negligent party that caused the policyholder pain and suffering. Who should buy bull tort: High income earner policyholders whose extended hospitalization from an accident translates to significant income loss. HOMEINSURANCE.COM® The information contained on this website is for informational purposes only, as a service to the public. The information herein is not a substitute for the advice of a licensed insurance agent, or that of legal counsel. assumes no liability for any use or interpretation of the information contained herein. Consult an insurance agent of your choosing to discuss the contents of this web page.

9 Tips To Avoid Paying Optional Coverage Expenses

shared by hicom on Oct 11
Depending on your personal financial situation and the state where you live, you may be able to save on your car insurance premium by passing on optional coverage. This infographic from HomeInsurance....


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