DETROIT – For months, Local 4 has been telling viewers about Metro Detroit families who have been hit with unexpected and costly car insurance troubles.
Some common problems centered on denied claims for not having toddlers listed or not getting a separate policy for a kid in college out of state.
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Now, Local 4 wants to look out for viewers and their pocketbooks, so we’re speaking to an expert about nine things people can do today to potentially save thousands.
Tip #1 – Check your current policy
“The first thing I would do is check my policy to make sure you’re not paying for any prior vehicles,” Lawrence Kajy, the CEO of Kajy Law Firm, said.
Kajy has been helping Local 4 inform viewers and make sure they don’t get caught up in some sticky situations.
For this first point, he says people should also check to make sure they aren’t carrying coverage on a low value car.
Additionally, people should check what their car is worth to see if it’s worth having collision coverage.
Tip #2 – Don’t always bundle car and home insurance
Kajy said that despite what is commonly believed, bundling auto and home insurance is not always cheaper. He recommends everyone get separate quotes from different insurance companies to compare the bundling rate.
Tip #3 – If it makes sense, raise your deductible
“Raising your deductible,” Kajy said. “Let’s say, for example, you’re raising your deductible from $500 to a $1,000, that can significantly drop the rate of your premium.”
Kajy said people should only do this if they can afford the out-of-pocket cost and risk the tradeoff.
Tip #4 – Know that rates change if paying in full or monthly
Kajy said the rate of your monthly car insurance cost can change if you are paying in full or monthly and it’s important to know that installment fees can add up over the year.
He said paying in full can reduce the overall premium.
Tip #5 – Shop around
“Shop insurance as much as you can,” he said. You don’t need to be loyal to one insurance company. In fact, rates can creep up over time without you even realizing it.”
Kajy said new customers often get better pricing, so it’s more than fine to look around at options.
Tip #6 – Be mindful when it comes to teen drivers
Kajy said it’s important to check with your school and your insurer for students discounts and for discounts on driver’s training.
Additionally, keep in mind, it is important to keep in mind the kind of car your teen is driving. Older and safer cars typically get cheaper premiums, Kajy said.
Tip #7 – Ask for other available discounts
“Ask about other available discounts,” Kajy said. “Call your insurance company and ask them, ‘What other discounts are available? You might be leaving money on the table.’”
Kajy said if a person drives less, often due to a short commute or working remote, and they only travel about 7,000 to 10,000 miles a year, they may be eligible for more discounts.
Tip #8 – As a reminder, your driving record can cost you
Kajy wants to remind people that their driving record can cost them thousands when it comes to car insurance.
Tickets, points and minor accidents can raise your rates for years. He said most careers put a lot of weight on your driving record. He said even a 2-point violation can increase premiums by 25%.
In addition to keeping your driver’s record clean, make sure you hire an appropriate lawyer if you do have a ticket that needs to be resolved.
Tip #9 – Don’t lessen coverage
“Even though we are trying to save money on our premium, you don’t want to impact your coverage,” Kajy said. “Don’t select lower coverage just to save money. You will regret it in the future if something does happen.”