Special Reports

Paul Schwend

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Insurance Insider Reveals Little-Known Secrets: 12 Ways You Can Save Money on Your Auto Insurance And Provide Better Protection for Yourself and the People You Love!

Your car is one of your most valuable assets. It is also one of your most dangerous, in terms of the harm it can cause. An accident, particularly if it’s your fault, can put a dent -- or worse -- in your financial security.

For most people, insurance is a mystery. They know they should have insurance for their automobiles (most states require it), but they don’t understand the various coverages in the policy. And they don’t know which insurance companies offer the best -- the best! -- prices. Because they don’t understand the product, many people think insurance is a rip-off, and it is -- if you pay too much or buy coverage you don’t need.

All auto insurance is not created equal. In fact, almost none of it is. There are thousands of different products out there, from hundreds of insurance companies. How do you find the insurance and the insurance company that are best for you? You read this special report and tap into my vast knowledge of the products and the companies that offer them.

I am an insurance "insider." A licensed member of the "club." I’ve sold the product. I know what insurance companies sell this kind of insurance at the best -- lowest! -- price. Because I’ve specialized in the insurance needs of automobile owners and their families, I have decided to dedicate myself to solving for you some of the mysteries of auto insurance.

Ten Coverages in One Policy

First, let’s look at the typical auto policy. It is not just one kind of insurance, but ten different coverages, all rolled into one policy. Here is a quick overview of the ten kinds of coverage in an auto insurance policy. Please understand that what follows here is not legal definitions of any policy. Also, it is not a substitute for reading and understanding your own policy.

1. Bodily Injury Liability -- It pays the medical and other expenses of those people injured or even killed in accidents you cause.
2. Property Damage Liability -- It covers the damage your car causes to property. Usually, that’s the other car or cars involved in the accident, but it also covers damage you do to any object you hit. Garages, buildings, lamp posts, fences, whatever.
3. Collision -- This is for damage done to your car when it collides with other vehicles or other objects.
4. Comprehensive -- This covers damage to your car that results from something other than a collision with another vehicle. As examples, damages caused by hitting a dear or a rock hitting the windshield of your car. It also includes coverage for theft.
5. Medical Payments -- It pays medical, and even funeral expenses, for you as well as members of your family and passengers in your car if it is involved in a collision, regardless of who caused the accident. It also covers you as a pedestrian if you are hit by a vehicle.
6. Uninsured Motorist Coverage-- It pays for injuries if you're hit by a driver who doesn't have insurance.  Even in Florida where insurance is mandatory, there are lots of drivers on the road who don't have insurance.  
7. Personal Injury Protection -- It is also known as "P.I.P." or "NoFault" insurance.  It is mandatory in Florida and allows for you to collect lost wages, medical & funeral benefits up to a maximum of $10,000 per family member or other passengers, regardless of fault.  
8. Additional Equipment -- Should you add additional equipment to your car (Different Car Stereo system...Big Rims or Monster tires on your truck)...Anything added to your car after it has left the factory needs to be added to the Additional equipment of your policy.  If it is not added...you will NOT have coverage for that/those items added to your vehicle.  
9. Rental Car Reimbursement -- It reimburses you for your rental car when your car has been damaged in an accident.  
10. Towing -- It reimburses you for towing charges when your car breaks down.

So that's a quick overview of the ten kinds of insurance you'll usually find in an auto policy.  (Please be aware, this information is offered for general information,  It is not a legal definition of any policy, many of which vary slightly -- and is not a substitute for reading and understanding your policy!)

Now Let's. Look At 12 Ways You Can Save Money On Your Automobile insurance!

          Money Saving Tip #I) Mathematically choose your deductible.  Your "deductible" is the amount you pay when you make a claim before your insurance "kicks in". You need to look at the savings available by raising your deductible. For example, raising from $500 to $1,000 will only increase your out-of-pocket by $500. If your savings is $100 or more, do it. Look at it this way  - If I offered to sell you a policy with a maximum benefit of $500 but asked you to pay $100 per year, every year, what would you say? Most people would say "You've got to be kidding". Raising your deductible will lower your premium. You need to ask how much.

          Money Saving Tip #2) Drop your collision and/or comprehensive insurance on older vehicles.  When considering whether or not to buy comprehensive and collision for your older car, you need to consider what you win "NET" out of a total loss. What I mean by "net" is, add the cost of insurance, plus your deductible, and subtract that from the value of your car . That is your net. Example" let's say your car is worth $2,500. Your Comp and Collision premium is $1,000 per year and your deductible is $500. Obviously, you can see that it will cost you $1,500 (premium + deductible) to get $2,500 (the value of your car), for a "net" of $1,000 (the value of your car minus the premium and your deductible) in your first policy year . However, the second year you will need to add another $1,000 for the second premium year. You will now break even. Using this formula, you can quickly decide if it's worth insuring. An auto dealer can help you determine the value of your vehicle.

          Money Saving Tip #3) Buy a "lower profile" vehicle.  Part of what determines the cost of insurance is the kind of car you own. Some cars are favorite cars for thieves. Some cars are more expensive to repair. Generally, these cars will cost more to insure. To get detailed information on your car -- or a car you're thinking of buying -- write to the Insurance Institute for Highway Safety, 1005 North Glebe Road, Arlington, V A 22201 and ask for the Highway Loss Data Chart.

          Money Saving Tip #4) Know when to Ask for a "Driver Exclusion Endorsement".  Most Florida Insurance Companies charge for every licensed driver that resides at the same address as you. They ALWAYS charge for the highest rated driver . If you have residents at home that will NEVER driver your vehicle, ask your agent to place you with a company that will exclude those drivers. ONLY do this when: 1 ) The driver in question will NEVER drive your vehicle and 2) The driver in question causes your premium to be increased. Example: Youthful operator or driver that has traffic violations that raise your premiums. The savings can be as high as $500 or more. Downside, if excluded, there is NO COVERAGE if they are driving.

          Money Saving Tip #5) Don't ever let your policy lapse. Most companies will only give their best rates to customers who have "prior insurance" with no lapse in coverage. If you have a lapse in coverage, you start in a higher priced tier (as you lose the safe driver discount) and have to work yourself up one year at a time.

          Money Saving Tip #6) Check out automatic seat belt and air bag discounts. You may save money on your insurance if you have automatic seat belts and/or air bags.

          Money Saving Tip #7) Check out anti-lock brake discounts. Anti-lock brakes improve steering and stability when you try to stop your car. Call us to see if we can apply this discount to your car .

          Money Saving Tip #8) Choose a Company that Promises Future Savings. Very few Insurance Companies will reward drivers for timely payments and improved driving records. Your agent should discuss placing you with a company that has the capability to move you to a lower cost tier as your driving record improves. Since auto insurance is a commodity that you will pay for every year for the rest of your life, doesn't it make sense to position yourself with a Company that provides for future savings? Most agents will quote you the lowest price "today" and never discuss tomorrow with you. Don't fall into that trap. Don't assume the lowest price this year is the best deal for you. Believe it or not, most of the time it's not. You need to ask your agent, what price reductions are available from your company over the next two years. You will be surprised. By positioning yourself with the right Company, you can save hundreds, even thousands over the next few years.

          Money Saving Tip #9) The Truth about the "LOWEST QUOTE" Revealed. I'm sure you have heard the cliché "You get what you pay for". When dealing with the lowest bidder in our business, quite often "You pay for more than you get". In most cases, you never really know "all" the costs. For example, when asking for minimum coverage, most often your phone quote will not include the finance charges that are added to your account when paying by installments". This additional cost usually amounts to 10% or more of your premium. In addition, many times your quote will not include the "add ons" added when you actually buy the policy . Many agencies practice another scam by intentionally under quoting the price over the phone, also known as "LOWBALLING". After they write your policy (because they provided the lowest bid) it comes in with a surprise, an "additional premium". They know you will just pay the additional down payment and add the balance to your payments because the alternative is to go somewhere else and start all over . The agent gets the business, and you get the shaft. The other truth about the Lowest Quote is, quite often the price is quoted with a LOW rated or NO rated company that may not be here tomorrow to pay your claim. HOW CAN YOU AVOID THESE PITFALLS? lf you ASK the following FOUR questions, they should eliminate most of these scams from happening to you. 

1. Is my Premium Financed and what are the additional costs to make payments? (You should stay away from Premium Financing on your Auto Insurance. It involves a third party and is very expensive. You should look for a company that bills YOU DIRECT and charges less that $3 to $5 per payment). Don't make your auto Insurance premium to a "Premium Finance Company"
2. DOES THIS PRICE INCLUDE ANY "ADD-ONS" or ANCILLARY PRODUCTS? In other words, are they writing additional coverage you didn't ask or such as "motor clubs" "Accidental death" or "Travel Clubs" Some of these products are legitimate but many are extremely overpriced and commission heavy.
3. ARE YOU (Agent) willing to guarantee the quote so long as the information I gave you is correct? (If their answer is no, keep shopping!)
4. What is the rating of the Insurance Company? (Look for a :MINIMUM rating of B+ or Preferably A+. If the agent doesn't know or worse yet, won't tell you, you should hang up and keep shopping. Stay away from any agent who won't divulge this information.

          Money Saving Tip #10) The "MINIMUM COVERAGE" scam revealed: There are thousands of insurance agencies in Florida that sell nothing but Auto Insurance. Although most are honest, there are those that are not. Scenario: You call and get the "Lowest quote" on the phone. You drive to the agent's office to write the policy. No one really explains the benefits, they just ask you to "sign here, and we'll get you going". What you don't know is you have just bought the minimum coverage PLUS $100 or more in additional products ( or "add-ons") and probably wouldn't have bought if you knew. How do you avoid this trap? First of all deal with a reputable agency. Get referrals from your friends. Ask co-workers who they use and then check them out. How long have they been in business? Do they write Home Insurance, Business Insurance or Life Insurance? Deal with an Agency with a good reputation that writes all lines of insurance, not just auto. If you feel you've like you've been ripped off, contact the Florida Department of Insurance Fraud Division at Jacksonville, (904)727-5505!

          Money Saving Tip #11) There are some Insurance Companies that make you pay a ":MEMBERSHIP FEE" to buy their Insurance. YOU NEVER WILL WITH OUR AGENCY. . JUST SAY "NO TO MEMBERSHIP FEES".

          Money Saving Tip #12.) Use an Insurance Agent who is going to be around for a long time. I'll be blunt about this. We don't have a "revolving door" when it comes to our agents. My Dad has served our area since 1967, and I'm starting on my 21^st- year! You want someone who' s going to be there for you, when you need them the most. Someone who knows you, has ties in the community, who will be there today, "And tomorrow" when you need them the most.

Is Your Coverage Adequate?

I won't kid you. There's more to this insurance game than saving money. In fact, while it's nice to lower your insurance costs, it's probably even more important to make sure you, your loved ones and your assets are covered adequately. It's not a pleasant thought, but insurance is about worst-case scenarios. It's also about peace of mind -- knowing that you have the worst-case scenarios covered.

Because I know peace of mind is so important, I am willing -- actually, I'm excited -- to reveal to you the secrets about insurance. Secrets that ensure you have all the protection you need.

Why would I just give these secrets away? Because it's just as good for my business as it is for you. I want to let you in on the knowledge I have accumulated as an insurance industry professional and insider. I want to do this because I have found, time and time again, that generosity and the willingness to provide really great service come back to me. Tenfold. In fact, that's how I have built my business.

Three Steps to Protection

There are three basic steps you can take to protect your and your family’s financial well-being:

1. Have an insurance specialist conduct a risk analysis of your car, home and family. How can you adequately address your risks with insurance if you don’t even know what these risks are? I’ve found that most people face more risk than they know. Because everyone is different, it’s not like you can ask a friend or relative to assess your insurance needs unless they are insiders in this business.
2. Use an independent agent. There are several ways auto insurance is sold in this country. Some people buy it by calling a toll-free number and talking to an employee of an insurance company. Others take advantage of direct mail offers. And some buy from agents who represent just one insurance company. You need someone who’s going to work for you. And you need someone who can offer you several options. Someone who can go to numerous insurance companies and compare their products and prices. Someone who, if necessary, can place parts of your insurance program with more than one company. Do you want a good price? Do you want options and flexibility? And do you want protection against worst-case scenarios? There’s only one option here: Use an independent agent.
3. Don’t trust the financial protection of you, your family and your assets to an insurance agent who is not an auto insurance specialist. A specialist? Absolutely. Look, insurance is a huge industry. There’s insurance for everything. And nobody can specialize in all of it. In fact, a professional independent agent can specialize in only a few niches -- and really understand them. And I do. I’ve studied the auto insurance market in our community for years.

I know:

• Which auto insurers have the best rates.
• Which give the most discounts.
• And which provide the best claim service.

I will give you this information for FREE. No charge. No obligation. I do this because I’ve built my business on my reputation. I never hard-sell insurance. I’m in the service business. The better service I provide, the better it is for all of us.

My clients stay with me because of my service - and they refer me to their family and friends.

I believe I serve families in our community better than anyone in this area -- in any profession.

So if you want to protect yourself, your family and your assets from a crisis or catastrophe or just see if you can save money on your insurance, call my office. My staff and I will be glad to help.

Paul Schwend SchwendInsurance@aol.com

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