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The Kansas Insurance Department reports that Kansas ranks sixth lowest in the nation for average auto insurance expenditures, according to figures released by the National Association of Insurance Commissioners (NAIC). This is the fifth consecutive year the state has been ranked as a leader in lower rates.

Information from the NAIC shows Kansans spent an average of $568 per vehicle for insurance in 2007, the last available reporting period.

That figure is down $11 from the previous survey average a year ago. Last year’s report had Kansans spending an average of $579. All figures are rounded to the nearest dollar.

The ranking assumes all insured vehicles carry liability coverage but not necessarily collision or comprehensive coverage. Consumers in Kansas aren’t required to carry collision and comprehensive, but coverage may be required by a lending institution that carries the vehicle’s loan agreement.

In the latest report, North Dakota is lowest with an average auto insurance expenditure of $512, followed by Iowa, $518; South Dakota, $534; Nebraska, $554; and Idaho, $564. Behind Kansas regionally are Oklahoma, $646; Missouri, $658; and Colorado, $738.

The national average is $795.

The average cost of a policy that contains all three types of coverage (liability, collision, comprehensive) is $713 in Kansas, according to the report. The state ranks as the 10th-least expensive in the nation in that category.

The NAIC 2006/2007 auto database report, which contains the figures listed above, is designed to provide necessary information and analysis for insurance regulators, consumers and policymakers.

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In Part 1, we detailed the first five strategies on how to cut your car insurance costs. In Part 2, we show you the second five.

STEP 6 – Review, Change or Cancel No Fault & PIP (Personal Injury Protection)

No-Fault Coverage, and it’s Twin – PIP – started out as great idea’s. Your premiums were actually going to be lowered. Then, your State Politicians got involved (at the urging of insurance policy Lobbyists, of course) and mucked it up.

You see, no-fault insurance policy coverage was originally intended to have each individual’s losses, covered by their own car insurance company – no matter who was at fault.

Today, in many States, car insurance companies are making a ton of money on no-fault because the insurance companies convinced State law-makers to make “modifications.”

Today, because of the these changes, car insurance policy companies have actually used the no-fault laws to reduce payments on a claim made by a customer, instead of reducing car insurance premiums as it was supposed to do.

So, premiums keep going up-and-up and insurance companies end up paying less for claims – Someone’s getting rich on that deal….and it’s not you.

And to make matters worse, some States (with really, really talented insurance Lobbyist’s) also require an additional premium be paid on top of the no-fault premium. This beauty is called Personal Injury Protection (PIP).

PIP is a “wide-blanket” of coverage and can leave Collision Coverage, Hospitalization, Social Security Disability, Workers Comp, Personal Disability insurance policy & Life insurance policy.

The trouble with PIP and what it covers is….

You already gave most, if not all, of these coverage’s anyway, don’t you? So, you’re paying twice!

So, you need to do a couple of things:

Google “minimum levels of required auto insurance” to see if No-Fault insurance and/or PIP Is asked in your State;

Then, check your policy. If it’s not asked by your State to have No-Fault/PIP Coverage and it’s on your policy – cancel it. If No-Fault/PIP is asked by your State….take the absolute minimum. Here’s how.

If you must have No-Fault/PIP, ask for and get a deductible from your car insurance policy company.

STEP 7 – Cancel Medical Coverage

Medical Coverage, on most car insurance policy policies, is a promise to pay “reasonable” medical expenses for anyone who is riding in your car should you have an accident…as well as anyone in your car should it get hit by someone else.

Cancel it. You don’t need it.

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How much do you pay for Car insurance every year?

Eight hundred dollars a year?  One thousand?  Two thousand?

Whatever the amount you’re paying now, you can slash that amount by more than 50% by simply following a few simple strategies.

Can you cut your car insurance costs by investing only 30 seconds of your time?  No, that can’t be done.

But if you’re willing to spend 30 minutes today, this week, or next, I’ll show you how to save up to $6,000 on your Car insurance over the next 10 years.

Okay, here we go.  Grab your Car insurance declarations page (the page in your policy that details all the coverage’s you’re paying for) and follow along.  Make sure you take some notes.  If you don’t have your policy, or can’t find it, call your car insurance company and get one – they’ll send it to you pronto.

STRATEGY 1 – Make sure you’re getting all applicable discounts for your vehicles safety features, such as:

- Front, Side or Head Curtain Air Bags;

- Automatic Seat Belts;

- Anti-Theft Alarms or Tracking;

- ABS or Traction Control….and many more.

Think about the safety features you have….and write them down.

STRATEGY 2 – Review & Change Deductibles For Comp & Collision.

Most Car insurance policies have two deductibles – one for “collision” (you hit someone or someone hits you) and one for “Comprehensive” (all other damage or loss).

For both of these, have at least a $500 deductible – preferably a $1000 deductible.

Here’s why – If you are currently paying a $100 – $250 deductible, you’ll save up to 40% per year on your monthly premiums by moving it to $500.  That implies if you’re currently spending $1,000 a year on insurance, you’re going to get to keep $400 every year.  If you jump to a $1,000 deductible, you could keep almost $600 extra a year in your pocket.

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