Chances are if you own a car you are paying for some unnecessary “extra options”. For example, if you already have health insurance, why do you need the “medical coverage” under car insurance? Have you ever asked your car insurance company what this means? What if you get into a car accident and you get injured? Will your current health insurance wait for your auto insurance to go into effect because you have this “medical coverage” delaying claims? How long will this be delayed and will it affect your health insurance coverage due to a “prolonged delay”, which will increase your out-of-pocket medical expenses because you missed the filing day? It all sounds familiar, right? But if you don’t have health insurance and you’re injured in a car accident, this “medical coverage” can help you pay some of your medical bills (it did for me).
In general, this “medical portion” of your auto insurance policy MAY cover the following, but ask your auto insurance representative for an explanation:
- Some funeral expenses
- Passengers who could be injured while you or a family member is driving
- If you are an injured passenger in someone else’s car
- If you are hit by a car while walking or cycling
- If you need dental care after an accident
- If you require extensive nursing or hospitalization during your rehabilitation
- If you need prosthetics
So if you’re doing some “summer cleaning” and you’re trying to uncover some cost savings because you’re worried about that mysterious rising premium on your health insurance policy, call your car insurance company and start asking questions (and be sure to document the answers).
Start with these warm-up questions: Do you really need the rental car option if you have a new car? How does this loss of income actually help you and in what situation? When does that physical injury actually start, and which part of your body?
If you’re feeling warmed to the point where the auto insurance rep is sweating, start asking about the “medical expense payments.” What is the bare minimum requirement required in your state? What does it cover? How does this compare to your current health insurance policy? When does it take effect?
In addition, don’t be afraid to ask for more discounts, including any new discounts for which you may be eligible. Eventually, you might find that you’ve saved a few hundred dollars on your car insurance; enough to pay for your new health insurance premiums… I know 🙂