Choosing A Raise In Deductibles
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.
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.
A small working example will enable you to understand and decide. Suppose you increase your car insurance deductible from $500 to $1000 and you get a reduction in your monthly car insurance premium @ $12.50. This savings of $12.50 per month works out to a period of 40 months to sum up to that increased $500. You are bound to keep off from any accident for all these 40 months. A longer period indeed, to practice a safe driving. Look back to your previous history of your driving habit. If the record is clean your choice will be wise. Otherwise try to change yourself while on the wheels.
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 provides cover for all car insurance types.
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