- 05
- Nov
Due to the uncertainty in the current economic condition, most consumers tend to reduce household expenses. While on look out for cutting expenses the premium paid on car insurance gets the first place. Car insurance is in fact an evil but very much necessary. A car insurance premium is nothing but a regular amount paid (may be monthly) to the insurance provider by which in the case of an accident the insurance provider takes charge of fixing the damages to your car. It is something no one is pleased to pay basically because, though you have to pay it even at times when don’t want it yet at last when you need, it becomes a heck of work to get your money from the insurance providing company to repair your damaged car.
There are over 6 million car accidents in the United States every year and a car is stolen about every 35 seconds. Knowing that, why wouldn’t you want car insurance.
When looking for car insurance, shop around. One company could quote you $600/ 6 months and the next could say $1000/ 6 months. Also look for companies that give discounts. You career could give you a discount, when I was a teacher, I paid $800/ 1 year. I haven’t found insurance that cheap since. If you have kids that drive, encourage them to get good grades. If you need home insurance, get it from the same company ad your auto insurance for a discount.
Your car driving habits has a significant influence on your insurance expenses. For a safe driver, increasing deductible will be beneficial as he can stay long periods without an accident and the opposite is with an unsafe driver who meets with accident often, it does not worth raising the deductible. Also getting an accident just after raising your deductible ends up in loss like in the following example.
As long as you return home with your car without involving in any accident, the money reserved is safe in your hands. Immediately after raising the deductible you are hit, all reserves will go in drain.
The deductible for you insurance is another variable. You want a deductible you can afford. I know that if I was in a car accident, I would only be able to afford $500 to fix my car, but everyone is different. Make sure the deductible is something you can afford. The higher your deductible, the lower the insurance is, but if you can’t afford to get the car fix so you can get to work, you will not be able to afford to pay your bills either.
Now you have the full confidence to sit on the wheels for 3 long continuous years without any incident. Be sure that you are not alone on the road and you have to face a lot of reckless drivers unmindful of other vehicles. Increase in number of vehicles in the years ahead of your insurance signing, shall also to be made note of. Also if you are not in a country side, reconsider your decision to go for higher deductibles, as you need to plough through the congested urban roads.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za, a leading South African car and vechile portal.
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