Effective Utilization Of Car Insurance Premium Deductible

The severe impact on economy drives everyone to find a source for cutting down any of his personal or home expenses. Though it may be true or not it is told that car insurance happens to be first victim as it has become a regular monthly expense, whether or not you use your car. Many people pay for car insurance, only because of compulsion. However at times of an accident claim, the car insurance companies make your life a hell, before paying you, to set right your 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.

Though one might be tempted to increase the deductible for getting a lesser monthly premium, you must be able to set aside an amount equal to deductible to be used in the event of an accident else you must wait till you raise that amount. Once you have set aside the necessary amount equal to the deductible, there are other things you have to consider like your driving habits and the chances of a car accident.

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.

Safe drivers can also get a discount. I had a car accident, my car was hit while parked, but my insurance went up, even though it wasn’t my fault. For the next 3 to 5 years after the accident, I still had to claim it every time I shopped for insurance. Speeding tickets and DUIs need to be claimed also so improve you driving habits and lower your insurance premium.

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, which helps people save on their car insurance.