Slashing Insurance Bills

Insurance is big business in America. Just add up how much you spend each month on all the different types of insurance if you’re uncertain! The average American family spends around 10-15% of their hard earned income on insurance. It adds up to thousands each year......a large portion of which is completely wasted!

Why? Because confusion is deliberately created about insurance leaving people as easy prey for insurance salespeople. They prey on the fear caused by the confusion of honest folk. Insurance companies are simply bookies!

Unnecessary insurance is just one of MANY ways you’re deliberately kept living paycheck to paycheck, driven into debt and ripped-off!

Most people buy what they don’t need, and few don’t know how or why to buy what they do need!

A great deal of insurance you buy isn’t applicable to most people and/or is duplicated. Insurance companies won’t pay out twice! You should also check this against any state or Federal regulations that may require certain minimum insurance as applicable. Here’s how I save thousands every year by not participating in the Great Insurance Con:

Auto Insurance:

This is broken into different components as you probably know and the minimums vary depending on the state you live in.
If the value of a car drops below $2-3000 it’s time to consider if collision and comprehensive coverage is worth it. Look at your premiums for this component and seriously consider dropping it if this is the case.
If you already have medical/hospitalization insurance, additional medical coverage on your auto policy is most likely duplicate insurance that you can’t collect on, in which case it’s a waste of money!
No-Fault insurance is usually a legal requirement depending on the state you’re in, but check you’re just paying the minimum, because this is most likely duplicate insurance again. It covers medical (not needed if you already have medical insurance), reimbursement for lost income (other policies should cover this we’ll come to in a second) and compensation for death (again, you most likely already have life insurance). Property damage is covered under your collision portion of your policy if you have it. Weigh it all up.
Uninsured motorists coverage is to cover injury to you and others apparently. But again, if you already have medical/hospitalization insurance this is just duplicate insurance and a waste of money.
Check out how much your premiums fall by if you raise the deductible to $500 or $1000! You’ll see them fall drastically! Low deductibles don’t make any sense- small claims mean your premiums go up next year because the cost to process a small claim is as much to process a big one.
You get the lowest premiums with the following: no commuting or commuting less than 10 miles to work, multiple cars in the same family, advanced driver training at state approved facility (costs no more than $40), good history, alarms, senior citizen. Check you’re getting all these discounts and remember to ask for the discount with your existing company too. You don’t ask you don’t get!!!
Shop it! Fewer than 25% of drivers will get more than one quote for auto insurance and the insurance corporations know it! You’ll see this if you shop around. Prices will vary wildly from one place to the next.
Rental cars are a HUGE rip-off with insurance. The sales people at check-in are paid commission to sell you a bunch of stuff you just don’t need. CDW is usually already covered by your existing car policy under the ‘occasional driver clause’ and the rental company policy must cover fire and theft anyway. Accident and injury is usually already covered by your medical insurance and personal effects insurance by your home contents. Check your policies.

Homeowners Insurance:

Some policies charge for the following: removal of debris, damaged property removal, fire department surcharges, temporary repair to prevent further damage to the property, trees and shrubs and stolen credit cards. If you think about the chances of this event and then compare that to the cost of having these things done yourself, you’ll discover this part of the premium is a rip-off usually. Ask your insurer what the premium would be without this and see if you think it’s worth it.
Another way you’ll be ripped off is if you try to make a claim and can’t prove you ever owned it, they’ll deny the claim. So be sure to video/take pictures of all your belongings.
Also, be sure your possessions are covered at REPLACEMENT value, NOT market value. Another scam they use to avoid paying out.

Loan Insurance:

One of the biggest rip-offs in the industry. I never bother with insurance on car loans or any other type based on the fact that there is more profit made on the insurance for the loan than the loan itself! If you borrow $10,000, and get loan insurance, you’ll pay about $1,000 for the privilege. Around 60% of the premium goes in commission to the loan provider.
I’m not saying not to insure yourself against the worst. It’s all about value for money. You see, if you want to insure yourself against not being able to pay off the loan, you can get no-frills term-insurance that covers you for about 70% less! You may never have heard of term-insurance. There’s a good reason for that: it pays very little commission to the salesperson!
Mortgage payments insurance represents equally bad value and can be replaced with low-cost term-insurance for a fraction of the cost! Mortgage insurers have been known to regularly pay out less than 30% on the dollar. Furthermore, if you died, your heirs would get the pay-out with term insurance, not the mortgage company!

Medical Insurance:

As much as 50% of your medical insurance premium is to fund the first $1-2000 of pay out from the insurance company. A small claim costs as much to process as a large one, so it often makes sense to raise the deductible on your medical insurance to $1000 in most cases. Ask how much your insurance would be with that deductible and see the difference. Even if you pay occasional hospital fees due to the higher deductible, you would still come out ahead most likely.
Disability insurance is good value only if you’re in poor health or very accident-prone. In any case, you are covered by law by your employer if injured at your job! If you look at other benefits you might receive, you’ll often find disability insurance is included again. Remember, duplicated insurance is wasted insurance!
Avoid hyped and TV advertised life and health insurance plans such as low cost life insurance for the ages 55-75 or that insure against a particular disease, etc. They usually have a bunch of restrictions, are expensive, and play on your fear.

Life Insurance:

Life insurance is HUGELY profitable for the insurance companies. Again, circumstances will vary with the individual, but you’ll often find that most people have too much/duplicated life insurance. 30% of the life insurance market is young singles with no assets! Now, why would they need life insurance? They have no dependents! Another waste of money.
People are often sold life insurance on children even! In the highly unlikely and extremely tragic event of that happening, what would you need life insurance for apart from final expenses? The chances of this happening outweigh the cost, which is why it’s sold to you. You’ll be sold this by playing on how much you love your kids. Truly shameless.
What about if your kids have grown up and you’ve no debts? What would you need life insurance for? Who are your dependents? More money wasted.
More sales myths: “You can borrow your cash value at low interest rates”, but all this offering is charging you interest on your own money! “You can borrow tax-free”. ALL loans are tax-free anyway!
Universal life insurance is another costly method. This loses about 30% of the premium to fees.
Okay, but many of us DO need life insurance, so what’s the answer? Again, term-insurance does the job for a far lower cost without all the fancy packaging. This will often result in 70-80% less in life insurance premiums! If you shop around for the best term-insurance deals, you’ll find that the insurance companies actually take a LOSS on those policies as a way to tempt you in to buy more expensive policies like the ones we’ve discussed, don’t be tempted!

Liability Insurance:

This is to protect your assets if someone sues you. Do you need it? In the coming lessons I’ll be showing you how to become invulnerable to lawsuits so, in that case, it becomes a waste of money.

No-one can touch my assets, no-matter who they are! I’ll be empowering you with such knowledge too. All these insurance tips are to be used at your discretion. Remember, I am NOT saying you shouldn’t have insurance, but rather to make sure you get the best value for your insurance needs and that you don’t duplicate any insurance policies. Check your policies to make sure. If all that doesn’t slash at least $50-500 off your monthly bills I’d be mighty surprised!

If you earn $15 an hour and you pay $200 a month more than you have to in insurance, that’s over one and a half days you’re working for nothing!