This isn’t about shooting deer. This one is about getting more value from your insurance bucks. With auto insurance prices going up, it might be time for a change in how you use insurance in the first place. Here’s the change: Only use insurance to pay for things you can’t afford to pay for yourself. Instead, put your insurance bucks toward insuring things that there’s no coming back from financially – like a serious auto accident injury, a lawsuit or the death of a family member.
Here are some changes on your auto policy to investigate: drop towing and car rental, get higher deductibles on physical damage (but grab the glass deductible waiver), drop to standard collision (you pay your deductible even if you weren’t at fault) instead of broad collision (you don’t pay your deductible if you weren’t at fault). Some of you will get more savings from these things than others. If you’ve got a couple of autos on the road, these changes could drop your premium by $200 per year or more. Yes, are you assuming more financial risk with this approach… but your out-of-pocket expenses range from an inconvenience to something that you’d recover from in a month or three.
Use these savings to insure events there’s no coming back from financially. Get Unlimited Personal Injury Protection (PIP). Get the most Uninsured/Underinsured Motorists coverage you can get. Get the most lawsuit protection (liability) you can get. Also, consider a small life policy for your children or spouse. Many people underestimate what funeral and burial services can cost. Some insurance companies – such as Frankenmuth Insurance and Auto Owners – offer life insurance that “bundles” with your home and auto policies for some nice discounts that make the whole bundle more affordable. It might take your auto insurance agent a while to calculate how much you’d save with these changes, but you’ll have a good conversation and feel better about your insurance when you’re done.