My friend’s cousin had her car stolen. It was all decked out with TVs and DVD players. When she got it back, all of that was gone and the paint job was messed up. She didn’t have insurance on her car so nothing was able to be replaced. If you don’t think you need insurance, just look up how many car accidents and stolen cars there are every year.
Usually it is by increasing the deductibles that reduction in insurance premium in gained. Deductible is that amount paid from your hand when a car insurance claim arises.
In an anxiety to reduce your monthly car insurance premium payment you accept for an increase in car insurance deductible. Think before you decide. In case you go for an option of double the deductible, you must have a reserve equivalent to the agreed amount with you in the event of an accident and a subsequent claim. By any chance you have the sufficient reserve with you, in order to hold the money with you need to do a careful driving, keeping away the risk of a car accident. It is for sure in your economic conditions, you may have the reserve and hence cannot opt for this deductible.
The coverage you need also varies. I actually found cheaper insurance by raising the coverage on my auto insurance with one company. Make sure you are getting the coverage you need. If someone without insurance hit your car, are you covered? Does it cover personal property that is damage, like the DVD players? If you are in an accident, will they pay for a rental car? When you are talking to your insurance agent, make sure you get the coverage you want.
By increasing the deductible from $1000 to $2000 a decrease in monthly car premium of $25 is gained, after that a period of 40 months (from the month of increasing the deductible) will be needed for reach the $1000 increase in deductible which means having an accident during this period will end up in loss. As per this example you must you must keep off accident for 3years and 4months with increased deductible on car insurance premium or don’t go for a raise.
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.
Knowing you are a safe driver doesn’t mean you don’t need insurance. You can’t control others or mother nature. So answer this question, do you need your car? If the answer is yes, then you need car insurance. So if you are trying to save money, shop around for discounts, but don’t cut your insurance.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za, a leading South African Car Insurance portal.
Tags: auto insurance, automotive, car insurance, cars, finance, insurance, money, vechile insurance