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.
In your printout, you will see a number of different sections, including your liability limits, comprehensive coverage, and PIP, or Personal Injury Protection. As the prices for each of these add up, you might get a little nervous, and want to dump some or even all of them. It is important to know that while some of these are optional, most of them are required by law.
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.
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.
One of the only places you can look to save money by cutting back your insurance is in your comprehensive coverage. This coverage covers the damages to your car in an accident or non-accident, regardless of fault. If you own your car, you can decide whether or not to have this coverage, but if you owe money on your car, your loan provider will require it.
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.
In your printout, you will see a number of different sections, including your liability limits, comprehensive coverage, and PIP, or Personal Injury Protection. As the prices for each of these add up, you might get a little nervous, and want to dump some or even all of them. It is important to know that while some of these are optional, most of them are required by law.
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.
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.
One of the only places you can look to save money by cutting back your insurance is in your comprehensive coverage. This coverage covers the damages to your car in an accident or non-accident, regardless of fault. If you own your car, you can decide whether or not to have this coverage, but if you owe money on your car, your loan provider will require it.
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.
About the Author:
Steve Turner is is familiar with crucial knowledge on purchasing auto insurance. Heritage Insruance, Inc. Steve Turner is a credible source in assessing an insurance policy. Insurance Statement Review
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