How could every company be the cheapest? Can you still have the coverage you need and get it cheaper? Well the answer isn't too far off what your mom and dad told you when you were younger ... You never get something for nothing!
First off, the TV ads you see are based on the people that switched and reported their savings ... so if 5 people saved and average of $500 when they switched and they told the company about it, then the company could use in their advertising that people who switched saved an average of $500. That doesn't mean that everyone will save that much or even if the ones that did kept their same coverage.
If you want to save money on your auto rates you can simply cut your coverages to the state minimums and remove the physical damage coverage from your auto. That will save you monthly ... of course if you hit someone and put them in the hospital, your insurance will run out quick and you'll be paying out of pocket for their broken bones, head wounds and nursing care, not to mention you'll need a new car so you can get to work and pay those new bills.
Insurance is about managing risk, and you have to decide if your risk of financial ruin is more important than a few dollars a month. If you think your current insurance is too high, ask your agent if he would suggest cutting anything ... I tell my clients this one hint, if you have a car that is 10 years old or older, look up the blue book value to see if full coverage is worth it. Many times the value of these older cars is so low that full coverage won't get you a whole lot if you totaled the car, so you can switch to liability only and save quite a bit.
Personally I would never recommend that you lower your liability limits, because one mistake on your part would put you at risk financially with consequences that would last for many years.
J
No comments:
Post a Comment