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Insurance Talk — How to Save Money on Your Auto Insurance

Insurance Talk — How to Save Money on Your Auto Insurance

Rex and Cheri have the answers. Listen here.

 

Insurance Talk — How to Save Money on Your Auto Insurance

Cheri Martinen – Welcome to Insurance Talk with Cheri Martinen and Rex Lesueur. We’re the father-daughter team from Bancorp Insurance located in beautiful Central Oregon. Bancorp Insurance is located in La Pine, you can find us right on Highway 97, or you can give us a call at 1-800-452-6826.

Save Money on Auto Insurance and Decrease Stress

Rex Lesueur – One of our topics today is that the economy’s tough right now. A lot of people are out of work and we just want to give a couple of tips about how to save some money on their auto insurance to make this time a little less stressful. We’re not going to make it non-stressful, that’s not something I can do or we can do in total. But I think there are a couple of things that they could do to reduce their premium a little bit.

CM – Insurance is one of those bills that we have to pay. It’s kind of like the electric, the garbage, it’s a utility, but there are certain things you can do. You want to save as much money as you can.

RL – One of the first things I would do if I was in a situation where things were tight is to look at my auto insurance. Your auto insurance is typically far more expensive than your homeowners. And the reason is that your vehicle is driving down the road at sixty or seventy miles an hour and your house isn’t. The chances of something happening are significantly greater because things are moving fast.

Removed Unused Vehicles

The first thing to do is if there are three vehicles in the household, you have all three of them insured and there are only two drivers, get rid of one of them. Take one of the vehicles off and park it. Don’t insure it anymore. You might need it once in a while, and if you do call the insurance agent up and put it back on for a weekend or a week while you need that vehicle.

If there are two people in the household and one person’s not working, maybe you take the vehicle that that person drives off the policy because they’re not going to work. Maybe you can get by with one car. Those are drastic measures, but maybe that’s what you need to do to keep your insurance in force. One of the things that the insurance companies do, especially with auto insurance, is if you want to buy auto insurance and you don’t currently have auto insurance, you get charged more because you don’t currently have it. That’s why it’s a good idea to keep it in force.

Comp and Collision

The next thing you want to do is take a look at the vehicles. One of the things we talk about with customers all the time is when do you take physical damage off your vehicle. Physical damage is the coverage that will pay for broken windshields, deer collisions, trees falling on your car, being involved in an accident with another vehicle, basically damage to the vehicle itself. There’s a point of diminishing returns. I was talking to someone today who had a 1993 Volvo and they still had comp and collision on it. And I said, “How much do you think that vehicle is worth?” And he said, “Well Kelley Blue Book would give you $2,000 for it.” He had $1,000 deductible and he was paying $200 every six months to insure that vehicle. And I told him that it doesn’t make sense to pay $200 a year to regain maybe $1,000 if that vehicle is destroyed.

CM – Because they’ll probably total it if there’s a large incident or even a tiny incident, it would be more than the car’s worth.

RL – There’s no such thing as $1,000 dent anymore. I think even the small claims that we’re seeing nowadays are $3,000, $5,000, up to $8,000 for a deer collision or just a fender bender. So it doesn’t make sense to put that vehicle on comp and collision. Save the money and drive carefully, and if you do have an accident, it’s a 27-year-old car, maybe it’s time to get a new car. And they did, they saved the money on that. That’s one of the things to do. 

You should start looking at your vehicles after ten years. If it’s an expensive vehicle, like a big F350 or a nice big truck and it’s still worth $15,000 or $20,000, you keep your comp and collision because you’re driving down the road in a $20,000 car. If it’s an expensive car or it’s fifteen years old and it’s only worth $3,000, take the comp and collision off.

Are You Properly Rated?

CM – There you go. Are there any other fun tips for saving on an insurance quote every once in a while?  RL – Every once in a while, go out and get a proposal to see what’s going on, make sure that you’re rated properly. If you’re not working and you were rated for driving to work, call the insurance company up and get rated for pleasure. All your driving is for pleasure, you’re not commuting to work. So those are the kinds of things you can do.

Bancorp Can Answer Your Auto Insurance Questions

CM – That’s a good idea. If you have any questions about your auto insurance or your home insurance, you can give us a call at 1-800-452-6826 at Bancorp Insurance. We are also online at www.bancorpinsurance.com, and you can email as well, bancorp@bancorpinsurance.com. If you have any questions about how you can save on your commercial lines, give us a call as well. I know a lot of people are making changes to make sure that they can lower their commercial lines, and we’ll do another podcast on that later.

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