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.
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.
Before raising your car insurance premium deductible you must consider carefully your financial condition, your driving habits, the area you reside and the area you work. Only after making sure the above factors you must go for increasing your car insurance premium deductible.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za, a leading South African Car Insurance portal, which helps people save on their Car Insurance.
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