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How to Get Revenge on Your Auto Insurance Company in 5 Easy Ways

STEP 1 - Review, modify or cancel without fault and PIP (Injury Protection)

The flawless coverage, and it's Twin - PIP - started off as a great idea. Your premiums were actually going to be reduced. Then the politicians in your state got involved (at the behest of the insurance lobbyists, of course) and screwed it up.
You see, no-fault insurance coverage was originally intended to cover the losses of each individual by their own auto insurance company, regardless of who was at fault.
Today, in many states, auto insurance companies are making huge amounts of no-fault money because insurance companies have convinced state lawmakers to make "changes."

Today, as a result of these changes, auto insurance companies have actually used no-fault laws to reduce payments on a claim made by a customer, instead of lowering auto insurance premiums as they were supposed to. do it.
So premiums keep going up and insurance companies end up paying less for claims - Someone gets richer on this transaction ... and it's not you.
And to make matters worse, some states (with some really, really talented insurance lobbyists) also require that an additional premium be paid on top of the no-fault premium. This beauty is called Personal Injury Protection (PIP).
PIP is "broad" coverage of coverage and can provide collision coverage, hospitalization, Social Security disability, workers' compensation, personal disability insurance and life insurance.

The problem with PIP and what it covers is ...
You've already given away most, if not all, of these blankets anyway, haven't you? So you pay twice!

So, you need to do two or three things:
Google "Minimum Auto Insurance Levels Required" to see if fault-free and / or PIP insurance is required in your state;
Then check your policy. If your state is not required to have flawless / PIP coverage and it is on your policy, cancel it. If No-Fault / PIP is required by your state ... take the absolute minimum. Here's how.
If you must have No-Fault / PIP, apply for and get a deductible from your auto insurance company.

STEP 2 - Cancel medical coverage.

Medical coverage, on most auto insurance policies, is a promise to pay "reasonable" medical bills for anyone who gets in your car in the event of an accident ... as well as anyone in your car if anyone. another hits her.
Cancel that. You don't need it.

Why are you saying Well, the medical coverage under your auto insurance policy is double yours:

- Medical plan; - Any life insurance coverage you may have, as well as; - The liability sections of almost all auto insurance policies written in the United States.
Think of it this way ... Do you have a health / medical / hospitalization plan through work or an association to which you belong?

So why are you paying premiums for medical / hospitalization coverage on your auto insurance policy?

Here's what will happen when you tell the auto insurance company or agent that you don't want hospital / medical coverage. You are going to hear some very clever “fear tactics” to help change your mind.

The employee of the insurance company will say, "Well, if you're in an accident and it's your fault, who's going to cover the medical costs of the injured passengers in your car?"

Here is your answer. Your family is already covered by your Health / Hospitalization Plan. If someone else is in the car and they're injured, they're covered by your personal injury liability insurance you already pay for ... and their own health / hospitalization plan.

So go ahead - save some more money and get rid of that blanket.

STEP 3 - Cancel the death, dismemberment and loss of sight.

Do you have any of these coverages on your existing auto insurance policy? If so, cancel them.

And if you are a first-time auto insurance buyer, or just looking to get multiple auto insurance quotes, don't let anyone tell you!

Because these blankets are an absolute waste of money. Most of these optional covers are simply “glorified” life insurance policies with ridiculous terms and horribly overstated premiums. If you need life insurance, make it a separate insurance policy.

STEP 4 - Cancel the extras

Do you have “Roadside Assistance” or “Rental Car Refund” on your policy? If so, cancel them.

And again, if you are a first-time insurance buyer or get some auto insurance quotes, don't worry about these covers.
Why? Because they are very expensive, are rarely used, and limit what you can and cannot do.

For example, reimbursement coverage for a "rental car is almost $ 100 per year for each vehicle in your policy. So if you have two cars, you will spend almost $ 2,000 on rental car coverage." over the next 10 years - and probably never will.
What about roadside assistance? The peace of mind it offers is trampled by the premiums that auto insurance companies want for this coverage. Roadside assistance is a good idea. But use AAA for a cheaper solution.

STEP 5 - End Full and Collision Coverage on Older Cars.

If you have an older car - by that I mean a car that is worth less than $ 2,000 in bulk (the amount a car dealership would give you if you traded it in) void any comprehensive and collision coverage you have or refuse. this option when buying a car. insurance quote.

Here's why. If an 8-year-old car and a new car have identical damage, the cost of repairing both will also be the same, even if the 8-year-old car is worth next to nothing.
You see the cost of a bumper and fender is the same - whether it's for a brand new car or an 8 year old car. This is why your premiums do not decrease as the value of the car decreases. Your payments stay almost the same year after year.
But, the bottom drops from what you can collect on this old car. For example, if your car is "totaled", your insurance company will only pay you the wholesale value of your car.

So let's say your car is worth $ 1,000, but the total damage is over $ 4,000, the insurance company will only issue you a check for $ 1,000 ... less your deductible, of course.

You could therefore recover $ 500. Sounds like a bad deal ... but that's how it works.
So the rule of thumb is this: cancel your accident insurance when your vehicle's value is less than $ 2,000 ... or you'll waste your money.
Okay, you've taken some notes and are ready to make some changes to your auto insurance policy. So pick up the phone and start reducing your premiums!
Tom O'Leary is an Automotive Portfolio Analyst based in Cincinnati, Ohio and publisher of, a consumer-focused website that helps with buying a new or used car, quotes from cheap car insurance and finding a cheaper car and truck financing.