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 review this statement from your insurance provider, you will see that there are a number of different categories or coverages in your policy. Each of these will usually have a price beside them, specific to what you are paying for that coverage. These categories include Comprehensive coverage, your liability limits, and PIP (personal injury protection).
It is the law in Kentucky to have minimum liability limits of $25,000/$50,000/$10,000. You cannot dip below these limits, however most people decide to have their limits much higher. The average person should have limits of $100,000/$300,000/$100,000 to protect themselves adequately. Although this increases your premium, this is not a good place to look to save money, if you do it could come back to haunt you.
PIP is, to many people unnecessary to the amount required by Kentucky, but it is required nonetheless. You must have a minimum of $10,000 which pays for medical bills immediately if you get in an accident with a noninsured. Getting more PIP coverage than this is probably a waste of money.
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. - 15224
As you review this statement from your insurance provider, you will see that there are a number of different categories or coverages in your policy. Each of these will usually have a price beside them, specific to what you are paying for that coverage. These categories include Comprehensive coverage, your liability limits, and PIP (personal injury protection).
It is the law in Kentucky to have minimum liability limits of $25,000/$50,000/$10,000. You cannot dip below these limits, however most people decide to have their limits much higher. The average person should have limits of $100,000/$300,000/$100,000 to protect themselves adequately. Although this increases your premium, this is not a good place to look to save money, if you do it could come back to haunt you.
PIP is, to many people unnecessary to the amount required by Kentucky, but it is required nonetheless. You must have a minimum of $10,000 which pays for medical bills immediately if you get in an accident with a noninsured. Getting more PIP coverage than this is probably a waste of money.
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. - 15224
About the Author:
Steve Turner is knows valuable information on buying auto insurance. Heritage Insruance, Inc. Steve Turner is a credible source in assessing an insurance policy. Insurance Statement Review
