SAVE MONEY WITH COVERAGES
Where should you do it?
Discounts, discounts, discounts. Yeah, yeah, yeah. We all have heard that they are there and that an agent will look for them for you. We do. And 99.99% of the time, we apply every discount that is applicable.
So what do you do when every discount has been applied but your premiums are still not affordable? You look at your coverage.
The problem is, skimping on the wrong coverage can leave you far worse off if something were to happen. So which coverages do you tighten the screws on?
Liability? Nope. (Bodily Injury/Property Damage/UnInsured & UnderInsured Motorist)
Liability is cheap. Going down a level or two will save you maybe 2-5%, but leave you with hundreds of thousands of dollars less in coverage.
If you are hit with a lawsuit but don't have enough liability to cover it, you will be paying for the rest out of pocket. Lawsuits being hundreds of thousands of dollars makes this a bad gamble.
We suggest having limits at no less than twice what your assets add up to.
PIP Medical? Nope.
PIP Medical is for you and your "resident relatives" (relatives living with you).
Right now, we are seeing savings of 5-10% to drop down from Unlimited to $500,000. That may seem like a lot, but going from unlimited coverage to $500,000 per person is a huge cut. And if you end up with a lifelong injury, not having that uncapped financial help can really decrease your quality of life.
Your health insurance does not do a lot of the things that PIP Medical does (attendant care, retro fitting of house/auto to accommodate injuries, much more), it comes with caps, deductibles and co-pays, AND if your health insurance policy ends, so too do the pay-outs for those injuries.
Side thought from us: Seeing a loved one with too little coverage as a result of your choice could be one of the worst feelings in life.
There are two places to save money:
Deductible: You can choose from deductibles of $250, $500, $750 and $1,000. Your deductible being the amount you say you will pay up front for the loss, the higher the deductible, the more you save. Often times the savings makes complete sense if you can go 1 to 2 years loss free.
The Form: You can choose between Regular/Standard Form Collision or Broad Form Collision. The savings can be about $100 per vehicle, per year to drop to Regular/Standard Form Collision.
The difference? Broad form waives your deductible if you are not at fault, when you would pay it with Regular/Standard Form. Depending on the deductible you pick and how often you have an at-fault loss, this will also often more than pay for itself.
At the end of the day, if you get stuck paying a high deductible or paying a deductible where you wouldn't have before, you are out a couple hundred dollars, which yes, is a lot. It is not a lot however, compared to losing out on hundreds of thousands of dollars if you mess with Personal Injury Protection or Liability.
Often times changing your deductible can save enough to make up for itself by just going a year or two loss free.
Road Service/Towing? Yes.
Many of our customers go years between uses of road trouble service. Not to mention, if a tow is needed as a result of a collision or comprehensive loss, the company most times pays for the tow.
Again, going a couple of years without using the coverage and you've more than made your money back.
Rental Reimbursement? Yes.
Same thing: go a couple years without needing to use the coverage and you've made your money back.
It's also good to mention that dealerships and repair facilities often have loaners, relieving you of this issue. And most of the time, this coverage is only paid out by the company if the car is in the shop for a covered loss (collision or comprehensive loss).
Last, if you live in rural Michigan, like many of our customers do, it can be a long ways to a car rental facility, completely mitigating your ability to use the coverage.
PO Box 605
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