How to Redress Your Car Insurance Company In 5 Simple Steps
Carinsurance provides financial benefits against damage to the vehicle and also covers bodily injury. In the highly populated Car Insurance Company countries such as Pakistan traffic accidents are part of everyday life. So that’s why car insurance become necessary for everyone. In today’s hectic scenario, to cope with these situations, all drivers driving must have insurance to protect the damage to his vehicle and personal accidents.
Insure Motor Vehicles
United Insurance Company of Pakistan Limited provides best motor-auto sure plan for its customers. United Insurance offers affordable packages that offer great benefits and services.
- Accidental External means
- Riots, Strikes & Malicious Damages
- External explosion or fire, lightning, or self-ignition
- Third Party Liability
- Value Plus Features
- Towing is free to the nearest workshop
- Get your car repaired from the garage of your preference
- UIC states that experts will help in obtaining the final police Investigation Report
- For the driver who has passed away for the deceased driver, free PA/PTD insurance of Rs.30,000 (In case of insured car accident only)
- Free death repatriation for the driver inside Pakistan
- UIC will cover funeral costs and arrangements.
No hidden taxes & charges
We commit to pay all loss and theft Claims within 30 days after reporting/submission of requisite documents
Part 1 covered the first five strategies to reduce your insurance costs for cars. In Part 2 we will show you the fifth and sixth strategies.
STEP 1 Review, Cancel, Change or Cancel , No Personal Injury or Fault Protection
No-Fault Insurance and its twin Personal Injury Protection were excellent ideas at first. Your premiums would actually be reduced. Then the State Politicians of your state got involved (at the urging of Insurance Lobbyists obviously) and mucked it up.
No-fault insurance was initially intended to cover each person’s losses by their car insurance company regardless of the fault.
Car insurance companies in many States are earning huge amounts of money on no fault as they convinced lawmakers of their state to adopt “modifications.”
Today, because of the these changes, car insurance companies are actually using the no-fault laws to reduce the amount of money they pay for a claim filed by a customer, instead of reducing car insurance premiums, as they were supposed to do.
In the end, insurance premiums continue to rise and insurance companies are paying lower amounts for claims. It’s not your fault.
For added complication, some States, with really competent Insurance Lobbyists demand that an additional fee be paid in addition to the no-fault insurance cost. This is called Personal Injury Protection (PIP).
PIP is a “wide-blanket” of coverage . It is able to provide Collision Coverage and Hospitalization Social Security Disability, Workers Comp, Personal Disability Insurance & Life Insurance.
The problem is PIP and what it covers is .
These coverages are already provided by you, if they exist in any way. This is a double bill!
You have to complete some things:
- Google “minimum auto insurance requirements” to find out if you need No-Fault and/or PIP in your state.
- Check your policy. You may cancel your policy if your state doesn’t require No-Fault/PIP coverage. If No-Fault/PIP is required in your state, you must take the minimum amount required. Here’s how.
- If you are required to have No-Fault/PIP insurance, make sure you obtain a deductible from your car insurance provider.
STEP 2: Cancel Medical Coverage
A majority of insurance policies for cars include medical insurance. This covers you for “reasonable” medical costs if your car is involved an accident.
- You can cancel it. It’s not needed. Why is that you say? Medical coverage that is part of your car insurance policy is a replica of your own policy:
- You could have Medical Plans or other coverage from Life Insurance.
- Think of it this way .Do you have a Health/Medical/Hospitalization Plan through work or an Association you belong to?
- Then why are you paying premiums for Medical/Hospitalization Coverage on your Car Insurance Policy?
Here’s what’s going to happen when you tell the car insurance company or Agent that you “Don’t want the Hospitalization/Medical Coverage.” If you want to reconsider, you’ll hear some very clever “scare tactics”.
The insurance company employee will say “Well If you’re involved in an accident, and it’s your fault, who’s going to cover the medical bills for any injured passengers in your vehicle?”
Here’s the solution. Your family is already covered by your Health/Hospitalization Plan. If anybody else is in the car and they’re injured – they’re covered by your Bodily Injury Liability coverage that you’re already paying for .and their own Health/Hospitalization Plan. You can therefore save money and eliminate this coverage.
STEP 3 – Cancel Dismemberment, Death and loss of sight.
Are you covered by any of these types of coverage on your current car insurance policy? It is recommended to cancel these coverages.
If you’re a new time car insurance purchaser or, just looking at getting several car insurance quotes Do not let anyone push you into them!
These coverages are a complete cost-cutting exercise. Most of these optional coverage’s are “glorified” life insurance policies that have ridiculous terms and outrageously high rates. If you need life insurance, you should make it an insurance Policy.
Step 4 – Cancel The Extras
- Are you covered by “Roadside Assistance” or “Rental Car Reimbursement” on your policy? It is recommended to cancel these policies.
- If you’re a first time insurance buyer or getting a few quotes on car insurance, don’t bother with these coverage’s.
- Why? They’re expensive, rarely used, and restrict your choices.
Rental car reimbursement” insurance can be as low as $100 per year for each vehicle that is covered by your insurance. If you have two cars you will spend nearly $2,000 per year for insurance for rental cars. You will not need it.
What is roadside assistance? The peace of mind it provides is trampled by the premiums the insurance companies charge to cover this service. It’s always an excellent idea to have roadside assistance. AAA is the best choice.
STEP 5 – Terminate Comprehensive & Collision Coverage On Older Cars.
If you have an older vehicle – and by that I mean less than $2,000 in wholesale (the amount that a dealer would offer you in the event of trading it in) remove the Comprehensive or Collision Coverage you have or decline that option when getting a car insurance quote.
Here’s why. If an 8 year-old car and a brand-new car have the same damage, the cost to repair both of them will be the same and also, despite the fact that the older car is worth next-to-nothing.
The price of a bumper or fender is the same whether your car is brand new or 8-years-old. The cost of your insurance won’t increase when the value of the car declines. Your payments remain almost the same, year-after-year-after-year.
However, the lowest value is a drop-out of the amount you’ll be able to collect on that older car. If your car is “totaled”, the insurance company will only pay you for the value of the wholesale.
Let’s say that your car is worth $1,000 but the damage is greater than $4,000 and you are insured. The insurance company will only offer you $1,000.
You could earn $500 back. It sounds terrible but it’s the way it works.
The standard is to cancel your collision insurance and comp insurance if your car’s value is less than $2,000 or else you’ll be throwing your money to waste.
Okay – you’ve jotted down some notes and you’re ready to make some modifications to your auto insurance policy. Call now and get started cutting down your rates!
TOP 5 TRICKS Car Insurance Companies USE TO CONFUSE PEOPLE
1.) They claim that your insurance doesn’t cover the accident
Insurance companies will do anything to refuse you payments. They may claim it’s a third-party fault or claim that you are responsible for slandering your word.
Be extra cautious when you are talking to your insurance company in the initial moments following your accident.
2.) They secretly spy on their customers
Car insurance companies employ secret investigators to watch you around. They want to catch you doing something that isn’t covered by your insurance policy.
It is vital that you communicate honestly with your insurance company in order to avoid being targeted by them.
3) They create disillusion to reduce your injury
An insurance adjuster shouldn’t provide any type of medical diagnosis or advice. Only a doctor will be able to determine the type of treatment or rehabilitation you need.
This can not only negatively impact your financial position, it can adversely affect your health over the long term. Your health is the most important asset!
4.) They delay action on your claim
Car insurance companies do not make money when they settle claims, and they purposefully do not pay you when you file a claim. Their hope is that you will shy away from your claim, accept an unsatisfactory settlement, or, worse – die.
Most likely, your adjuster will not be available to provide you with a an update on your status. They’ll probably contact you later. The call is not often received and typically only informs you that your adjuster is not available.
5) They’ll ask you to give them access to your medical records
You shouldn’t divulge your medical records to insurance companies after an accident unless you have consulted an experienced personal injury attorney.
Although they may try to convince you that they are concerned about you and provide advice, they will only use your medical records to search for loopholes in the claim, which will permit them to pay you less than what you are entitled to.
Questions and answers about Car Insurance Claims
What is the reason why car insurance companies need all this details?
To determine if you’re a risky client insurance companies will ask you a variety of questions.
A lot of the questions you are asked are understandable and are relevant to your driving habits. For instance, how often do you drive. It might not be obvious the reason insurance companies would are asking these questions,
For example, where you live can affect the amount you’ll be charged. You will pay higher rates for living in urban areas. Cities are the most prone to accidents, thefts, and vandalism. Therefore, insurance companies increase their rates to cover claims arising from these kinds of incidents.
Other questions are asked, however they are totally random. What is the purpose of seeking the status of marriage from insurance companies? The research isn’t extensive and the research is outdated, but it’s been said that single people tend to have more claims than married couples. Insurers raise rates for singles.
California insurance companies don’t use credit scores when determining car insurance rates. Insurance companies will claim that there is a connection between a poor credit score and the likelihood someone is to make claims. However, what happens is that good drivers with less incomes are more likely to be more expensive to insure.
Therefore, you’ll have be watching on your credit score even if you’re not from California. This will affect the rates you pay.
1. What amount of car insurance do I require?
Unfortunately, there’s no universal number that is suitable for everyone.
There is one way to figure out how much car insurance you require. Buy an amount of insurance that’s roughly proportional to your assets and income you wish to safeguard.
Take the total worth of your car, savings and investments. It is important to ensure that the amount you see on your policy liability limit for bodily injury coverage is close to or equal to it, to guarantee maximum protection. It’s the middle number on your policy liability coverage limit which is 25/50/25.
2. My rate is way too high. Do you know of a method to reduce my rate?
There are always things you can do to get your rate down. Certain things can be done in the short-term and some things take some time.
An easy solution is to raise your deductible. Before you boost your deductible until it is an absurdly large amount, keep in mind that it’s what you have to pay when you submit claims. Save some money for the deductible.
You can enhance your driving habits by thinking longer-term. Any time you get an citation or ticket that is issued, it will be recorded on your driving record. Your insurance rates will rise due to the fact that you were ticketed or cited.
Your driving record won’t be permanently recorded However, don’t be concerned. Tickets and violations drop off in between three and five years. After some time your driving record should be clear.
Filing claims will also increase your premium, so be careful and aware every time you get behind the wheel.
3. Are there any discounts available? How do I determine if I am eligible?
Insurance companies all have different types of discounts, like loyalty to customers driving history, demographics driving education, automobile equipment.
Get a discount on a variety of products:
- Being part of an alumni group or professional association
- You choose to pay for your policy in full, you’re auto-paying, or you went paperless
- If you get insurance through your employer
- Your car is equipped with anti-lock brakes or you drive hybrid vehicles, such as the Toyota Prius.
- You’re a good driver or a good student
- You have decided to renew your policy earlier
- Talk to your agent for these discounts, as you might not be aware of the ones you are eligible for.
4. I’ve heard it’s best to combine my insurance. What is that?
- Bundling insurance policies can allow you to get several policies from the same company. Multi-policy discounts can be an opportunity to save for insurers.
- The discount is applicable to many combinations of auto, homeowners, renters, and life insurance.
5. Does my car affect my insurance?
- Yes, the model and model of your vehicle directly affects the cost of your insurance. Because they are more costly to repair, some cars cost more to insure.
- Cover’s insurance calculator tool can aid you to determine the effect of your vehicle on the insurance rates you pay.
- Although the fact that 44 percent of Americans believe that having an automobile that is red will result in higher insurance costs, this is a myth. The color of your vehicle has no effect on what you pay for insurance.
- If you’ve been thinking about purchasing a red vehicle take it!
6. Does my car insurance cover rental cars?
- The car insurance that you have on your vehicle will generally cover rentals.
- If you are in a position to have a low policy limits, you may be interested in purchasing insurance for rental cars they provide at the counter to get that extra protection.
- Combining these two options can help you be properly protected in the event an accident.
7. What happens if I’ve ran out of discounts and my car insurance doesn’t seem to be much lower?
- Spend this time shopping around.
- While it may be lengthy, having multiple quotes from various insurance firms is a great option to save money.
- Prices can vastly vary between insurance companies. Comparing prices ensures you’re getting the lowest rate and aren’t paying too much.
- Cover can provide you with an automatic quote within five minutes. All you need to do is answer some short questions.