Each month, most insurance companies send out a statement to each insured, letting them know their insurance levels. As you receive this statement, you will discover that they break down the premium in to specific categories, letting you know where your money is going. This article will give you information on how to assess this and see if you can save money.
As you look at this document, you will see that the major categories in your insurance policy include PIP, or Personal Injury Protection, your liability limits, and your comprehensive coverage. Each of these add to the total amount you pay, and if you are looking to save money, you may question which ones are the most important.
The biggest contributor to your price is probably going to be your liability limits. Kentucky requires minimum coverages of $25,000/$50,000/$10,000. Although it is against the law to be insured for less than this, it is a good idea to bump your coverage to something higher like $100,000/$30,000/$100,000. This increases your premium, but it is the last place where you should cut back.
Many insurance critics argue that PIP is worthless. Although it does provide immediate compensation for things like medical bills if the other driver is uninsured or underinsured, many argue that it isn't necessary. However, it is currently required by the state of Kentucky, and by a number of other states. The state minimum is $10,000 which is higher than most other states with PIP requirements.
If you must save money on your insurance plan, one possible place is on your comprehensive coverage. If you drop this coverage, you will be responsible for your own property damage, but you could save hundreds a year. However, if you are paying off your car, your loaner will require comprehensive coverage.
If you do own your car completely you may choose to drop this coverage, but be sure to put these expenses in perspective. You may save up to $100 or more every six months by dropping this coverage. But if you total your $20,000 car, you will not get a penny from your insurance company to replace it. This is a problem for expensive cars, however if you drive an old crappy car, saving the money may be more beneficial than having them replace your car. - 16752
As you look at this document, you will see that the major categories in your insurance policy include PIP, or Personal Injury Protection, your liability limits, and your comprehensive coverage. Each of these add to the total amount you pay, and if you are looking to save money, you may question which ones are the most important.
The biggest contributor to your price is probably going to be your liability limits. Kentucky requires minimum coverages of $25,000/$50,000/$10,000. Although it is against the law to be insured for less than this, it is a good idea to bump your coverage to something higher like $100,000/$30,000/$100,000. This increases your premium, but it is the last place where you should cut back.
Many insurance critics argue that PIP is worthless. Although it does provide immediate compensation for things like medical bills if the other driver is uninsured or underinsured, many argue that it isn't necessary. However, it is currently required by the state of Kentucky, and by a number of other states. The state minimum is $10,000 which is higher than most other states with PIP requirements.
If you must save money on your insurance plan, one possible place is on your comprehensive coverage. If you drop this coverage, you will be responsible for your own property damage, but you could save hundreds a year. However, if you are paying off your car, your loaner will require comprehensive coverage.
If you do own your car completely you may choose to drop this coverage, but be sure to put these expenses in perspective. You may save up to $100 or more every six months by dropping this coverage. But if you total your $20,000 car, you will not get a penny from your insurance company to replace it. This is a problem for expensive cars, however if you drive an old crappy car, saving the money may be more beneficial than having them replace your car. - 16752
About the Author:
Steve Turner is knows crucial knowledge on buying auto insurance. Heritage Insruance, Inc. Steve Turner is a credible resource in assessing an insurance policy. Insurance Statement Review
