Posted by ray on 5/09/06

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1. Don't lie on an application. This is about the worst
thing you can possibly do. If you lie, you'll get caught at
some point. You'll then be cancelled/declined, and that
will follow you around for years. You'll notice on each
application, there is a question something along the lines
of, "Have you ever been denied insurance or had a policy
cancelled before?"

They'll check. They'll also pull your MVR (Motor Vehicle
Report). They'll also likely run a CARFAX on your vehicle
to see if it has been involved in any prior accidents.

2. Pick the highest deductible that you can afford. This is
difficult for many people to comprehend. Many times, people
will choose $500 or $1000 deductibles because it makes the
premiums very attractive. Unfortunately, when you get into
an accident (your fault or not), you then have to pony up
the deductible (unless the other carrier pays for your
damage). As an adjuster, one of the most common complaints
that I'd hear is, "Well, I don't have $1000 in the bank to
repair the car. The accident wasn't my fault. What are you
going to do about it?"

Unfortunately, the answer typically is that the adjuster is
not going to do anything about it, aside from try to get
your deductible back from the responsible party, either by
the process of subrogation (one insurance company going
after another) or a lawsuit if the person is uninsured.
Neither guarantee success, and in most cases, the adjuster
is going to require that
your vehicle be fixed prior to taking any action against a
responsible party because, if we do it beforehand and the
repairs cost more than the demanded amount, the insurance
company is out that additional money.

So, the rule of thumb is as follows: If you don't normally
have $1000 in the bank, then don't take the $1000
deductible. If you really only have $500 or $250 in the
bank at any one time, choose that as your deductible
amounts.

3. Know the value of your vehicle. Many people throw out
thousands of dollars per year on useless insurance. A good
and honest insurance agent will help you determine if you
need Comprehensive and Collision insurance. A less-than-
good agent (not necessarily dishonest, but let's leave it
at inexperienced) will write you up any coverage you want
without asking money-saving questions.

To recap, a $500 deductible might wind up being more than
that when depreciation is factored into the mix. Sometimes,
with engines for instance, the depreciation can be several
thousands of dollars and also check insurance companies
current price.

Re: wise tips to cut insurance cost , 12/21/06, by albert.

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