Chances are, if you own a car, you’re paying for some unnecessary “options.” For example, if you already have health insurance, why do you need the “medical coverage” of car insurance? Have you ever asked your auto insurance company what this means? So what happens if you get into a car accident and are injured? Will your current health insurance wait for your car insurance to kick in because you have this “medical coverage” delaying claims? How long will this take? Will this affect your health insurance coverage due to a “long delay” costing you more out-of-pocket medical expenses because you missed filing day? It all sounds familiar, right? But if you don’t have health insurance and are injured in a car accident, this “medical coverage” may help pay some of your medical bills (it did for me).

In general, this “medical portion” of your car insurance MAY cover the following, but be sure to ask your car insurance representative to explain:

  • Some funeral expenses
  • Passengers who could be injured while you or a family member are driving
  • If you are an injured passenger in someone else’s car
  • If you are hit by a car while walking or riding a bike
  • If you need dental care after an accident
  • If you need long-term nursing services or hospitalization while rehabilitating
  • If you need a prosthesis

So if you’re doing a “summer cleanup” and trying to figure out some cost savings because you’re worried about that mysterious increase in your health insurance premium, be sure to call your auto insurance and start asking questions (and be sure to document responses).

Start with these warm-up questions: Do you really need the option to rent a car if you have a new car? How does that loss of income really help you and in what situation? When does that bodily injury actually start and where on your body?

When you feel heated up to the point that the auto insurance representative is sweating, start asking about “medical bill payments.” What is the minimum requirement needed in your state? What does it cover? How does it compare to your current health insurance? When is it activated?

Also, don’t be afraid to ask for more discounts, including any new discounts you could qualify for. In the end, you may find that you’ve saved a couple hundred on your car insurance; enough to pay for her new health insurance premiums…I know I did 🙂