Five Easy steps to Make a Deal with Your Car Insurance Company


Updated on:

Five Easy steps to Make a Deal with Your Car Insurance Company

Motor Insurance

Insurance for cars, automobiles and vehicles provides financial benefits for vehicle damage and injuries to the body. In the highly populated countries like Pakistan traffic accidents are part of everyday life. Car insurance is vital for all. Every driver on the road has to have insurance to protect himself from personal injuries as well as damage to his vehicle.

Insure Motor Vehicles

United Insurance Company of Pakistan Limited offers the most reliable motor-auto insurance plan to its clients. United Insurance provides affordable packages with great benefits and services that include:

Risk Covered

  • Accidental External means
  • Riots, Strikes & Malicious Damages


  • External explosions (fire, lightning), or self-ignition
  • Third Party Liability
  • Value Plus Features
  • Towing is free for the nearest workshop
  • Repair your car at the workshop of your choice
  • UIC says experts will assist in getting the final police Investigation Report
  • For the driver who has passed away for the deceased driver, free PA/PTD coverage of Rs.30,000 (In case of insured car accident only)
  • Drivers are eligible for the free repatriation of their bodies within Pakistan
  • UIC will pay funeral costs and arrangements.

No hidden taxes & charges

We guarantee to resolve theft and total loss claims within 30 days of receiving all documents required.

Part 1 of this series covered the initial five strategies for reducing your insurance costs for cars. Part 2 will outline the next five strategies.

STEP 1 – Review, Edit or cancel No Fault PIP (Personal Injury Protection)

No-Fault Insurance, and its twin, PIP, started out as a great idea. Your premiums were actually going to be reduced. Your State Politicians intervened (at the request of Insurance Lobbyists) and made it all up.

You see, no-fault insurance coverage was originally designed to cover each person’s loss being covered by their individual car insurance company – regardless of who was at fault.

In the present, across many States, car insurance companies are earning huge profits on no-fault insurance because they have convinced state legislators to adopt “modifications.”

In the present, due to modifications, insurance companies have been using the no-fault law to cut the amount of money they pay for a claim filed by a customer, instead of reducing car insurance premiums as it was supposed to do.

The premiums continue to go upwards and upwards, and insurance companies eventually up paying less for claims – Someone’s getting rich from this deal .and it’s not you.

In addition to make matters worse, some States, with really competent Insurance Lobbyists demand that an additional fee be paid in addition to the no-fault insurance cost. This is called Personal Injury Protection (PIP).

PIP is an “wide-blanket” of coverage . It will cover Collision Insurance as well as Hospitalization. Social Security Disability, Workers Comp, Personal Disability Insurance & Life Insurance.

The problem with PIP and the coverage it provides is .

The coverages you’re getting are already offered by you, in the event of any, anyway. You’re now paying more than once!

So, you need to do a couple of things:

  • Google “minimum auto insurance requirements” to determine whether you require No-Fault insurance and/or PIP in your state.
  • Then, you should review your policy. If it’s not mandated by the State to have No-Fault/PIP Coverage and it’s covered under your policy, you should remove it. The minimum amount is the amount that’s set by your state to be No-Fault/PIP. Here’s how.
  • If you must have No-Fault/PIP, ask for and get a deductible from your car insurance company.

STEP 2. Cancel Medical Coverage

The majority of car insurance policies provide medical coverage. It covers “reasonable” medical costs if your car is involved an accident.

  • You can opt to cancel it. It’s not required. Why is that you say? Well, medical coverage as part of your auto insurance policy is a copy of your own
  • You could be covered by Medical Insurance or other Life Insurance coverage.
  • Think of it this way .Do you have a Health/Medical/Hospitalization Plan through work or an Association you belong to?
  • Then why are you paying premiums for Medical/Hospitalization Coverage on your Car Insurance Policy?

Here’s what’s going to happen when you tell the car insurance company or Agent that you “Don’t want the Hospitalization/Medical Coverage.” You’re going to hear very elegant “scare strategies” to convince you to make you reconsider your decision.

The insurance company employee will reply “Well If you’re involved in an accident, and it’s your fault, who will pay for medical expenses for anyone injured in your car?”

Here’s the solution. Your family is already covered by your Health/Hospitalization Plan. If anybody else is in the car and they’re injured – they’re covered by your Bodily Injury Liability coverage that you’re already paying for .and their own Health/Hospitalization Plan. You can therefore save some money and get rid of this coverage.

STEP 3. Cancel Death, Dismemberment and Loss of Sight.

Are you covered by one of these kinds of coverage on your current car insurance policy? If yes, then you should cancel them.

Do not allow anyone to pressure about buying insurance for your car if it’s the first time you’ve purchased car insurance or if you’re only beginning to research estimates on car insurance.


These policies are a total expense. These optional coverages are simply life insurance policies that offer “glorified” options, with ridiculous coverages and ridiculously high rates. Make sure you have separate life insurance policies insurance, if you need it.

Step 4. Cancel The Extras

  • Are you covered for “Roadside Assistance”, “Rental Car Reimbursement”? You must cancel such policies.
  • These coverages are not recommended to anyone who is a first-time buyer of insurance or even just looking at a few quotes on car insurance.
  • Why? They’re extremely expensive, rarely used, and limit the options available to you.

Car rental reimbursement” coverage could be as low as 100 dollars per year per vehicle included in your policy. If you have two cars, you will spend nearly $2,000 per year for rental car insurance. You may never use the coverage.

What’s the roadside assistance? The peace of mind it provides is under attack by car insurance companies that want it. It is recommended to get roadside assistance. However, you can make use of AAA to find a less expensive option.

STEP 5 – Terminate Comprehensive & Collision Coverage On Older Cars.

If you have an older car , by that I mean a car that is worth less than $2,000 wholesale (the price a dealer would offer when you trade it in) remove the Comprehensive and Collision Coverage you have or refuse the option when you get a car insurance quote.

Here’s why. A brand-new car will cost the same to repair as an older car of 8 years with the same damages. The 8-year-old car is worth little or nothing.

You see the cost of a bumper and fender are the same , whether it’s for a brand new car, or one that is 8 years-old. So, your premiums don’t go down because the value of the vehicle decreases. Your payments remain almost the same, year-after-year-after-year.

But, the bottom drops-out of what you can collect on that older car. If your vehicle is “totaled” then the insurance company will be able to pay for the value of the wholesale.

Let’s say that your car is worth $1,000, however, if the total damages are greater than $4,000, then the insurance company is only giving you a check of $1,000 .minus your deductible obviously.

So you might end up getting 500 dollars back. This may sound like a lot, but that’s the way it is.

The general rule is to cancel your collision insurance and comp insurance if your car’s value is less than $2,000 or you’ll throw your cash away.

You’ve written down some notes and you’re ready to make some changes to your auto insurance policy. Grab your phone and get started slashing your insurance premiums.


1) They claim your insurance package doesn’t cover your accident

Insurance companies will do everything to deny you payments. They may claim it’s a third-party fault or try to blame you for slandering your word.

Talking to your insurance company immediately following an accident can be a stressful time.

2.) They secretly monitor their customers

Secret investigators are employed by car insurance companies to find you. They’re trying to catch people doing things that aren’t covered by your insurance policy.

It is essential to be honest with your insurance company to ensure that you do not get monitored.

3) They make you feel disillusioned to minimize your injuries

An insurance adjuster should not offer any diagnosis or medical advice. It’s the sole responsibility of an experienced medical professional to decide what kind of treatment and any rehabilitation you may need.

In addition to having this negative affect your long term financial position, it can also negatively affect your health over the long term. Your health is your biggest asset!

4) They delay actions regarding your claim

Car insurance companies don’t make profits by paying out for claims. They will snub the claimant when they submit a case. They hope that you’ll shy away from your claim, accept a low settlement, or worse, die.

Most likely, your adjuster will not be able to give you a status update. They’ll likely call you back. This call will not come but if it happens, it’s usually just to let you know that your paper work is being processed without a timeline to be seen.

5) They’ll ask you to release your medical records

In no way should you release your medical records to your insurance company in the after an accident without consulting with an experienced personal injury lawyer.

Insurance companies will try to convince you that they’re concerned about your wellbeing and that they can offer advice however all they’ll do with your medical information is searching for loopholes in your claim, which will enable them to offer you less money than you’re entitled to.

Car Insurance Claims Questions and Answers

Why do car insurance companies require all of this information?

Insurance companies ask a number of questions to best gauge the risk you face when they accept you as a customer.

A majority of these questions make sense and pertain to the driver in your life, such as how often you drive. It might not be obvious the reasons insurance companies ask these questions,

For example the location you live in has an impact on what you pay. If you live in an urban area, you’ll be paying higher prices. In urban areas, there are more thefts, accidents, and vandalism. Therefore, insurance companies increase their rates to compensate for claims that are filed in these kinds of events.

As for other questions, well they’re completely random. What’s the reason for seeking marital status from insurers? The research isn’t comprehensive and the studies are old However, it has been reported that single people are more likely to have more claims than married couples. Insurance companies raise rates for singles.

For car insurance in California, they don’t use credit scores to decide the cost. Insurance companies claim that there’s a relationship between a poor credit score and the likelihood someone is to make an insurance claim. What happens is that insurance firms will charge premiums that are higher for drivers who earn less.

Unfortunately, you’ll have be watching for your credit score if you’re not in California. This can affect the rates you pay.

1. What amount of automobile insurance do I need?

Unfortunately, there’s no universal number that is suitable for everyone.

There’s a way that to determine the amount of car insurance you require. The amount you pay for insurance is roughly equivalent to the value of your assets and income.

Combine the value of your vehicle, savings, and investment. You should ensure that the amount you see on your liability limit for bodily injury insurance is close to or equal to it to ensure maximum protection. This is the middle figure on your liability insurance limit 25/50/25.

2. My rate is to be too high. Can I do anything to do to get my rate lower?

There are a variety of things you can do in order to reduce your rates. You can accomplish some tasks quickly, but others require time.

An easy solution is to raise your deductible. But before you increase your deductible to an astronomically large amount, keep in mind that it’s the amount you pay when you make an claim. Set aside a portion of your savings to pay the deductible.

You can improve your driving skills by thinking about the long-term. When you are issued an citation or ticket the information is recorded to your record of driving. Your rates will go up due to the fact that you were ticketed or cited.

Be assured that your driving record will not be forever recorded. Tickets and other violations are removed in between three and five years. So after some time, you’ll have a clean driving history.

Making claims also increases your insurance premium Be cautious and attentive every time you are behind the wheel.

3. Do any discounts exist? What can I do to determine whether I’m qualified?

There are numerous discounts that insurance companies offer such as loyalty programs, customer service and demographics, driving record, driving instruction, and automobile equipment.

You can receive discounts on a variety of items:

  • Participating in an alumni group or professional association
  • You can pay for the whole amount in full. Or, you go completely paperless.
  • You can obtain insurance through the employer you work for.
  • Anti-lock brakes are available in your vehicle or choose an electric vehicle that is hybrid like the Toyota Prius.
  • You are a great driver or student
  • You’ve decided to renew your insurance sooner
  • Talk to your agent for these discounts, as you might not be aware of the discounts you qualify for.

4. It’s recommended to bundle your insurance according to my experience. What is that?

  • Bundling insurance policies will allow you to purchase several policies from the same company. Insurance companies offer discounts with the multi-policy discount.
  • Discounts are available for various combinations of homeowners, auto renters, life insurance and auto.

5. What is my car doing to my insurance?

  • Yes, the model and model of your car directly affects the cost of your insurance. Since they’re more expensive to repair, some cars are more costly to insure.
  • Cover’s insurance calculator tool will help you determine the impact of your car on the insurance rates you pay.
  • While the fact that 44 percent of Americans believe that having cars that are red could increase the cost of insurance, this is a myth. The color of your car will have no influence on the price you’ll pay for insurance.
  • It is advisable to consider a red vehicle if are considering it.

6. Can my insurance company to cover rentals cars?

  • The insurance you carry on your car usually covers rental expenses.
  • If you have a policy with lower limits, it could be worth considering renting a car insurance policy for rental.
  • Combining these two options can help you be properly protected in the event of an accident.

7. What happens if I’ve ran out of discounts but my insurance for my vehicle doesn’t seem to be any lower?

  • This is your chance to shop for bargains.
  • It could be time-consuming However, getting multiple quotes from different insurance companies will only benefit you.
  • Insurance prices can vary greatly between companies. You can shop around to make sure you get the most affordable rate, and you’re not paying too much.
  • Cover will get you an auto-quote within five minutes. Just answer a few simple questions and you’ll get an auto quote in a matter of minutes.

Additional Resource: