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.
A popular means to reduce your monthly car insurance premium amount is to raise the insurance deductible. Let us explain the deductible. Suppose you had met with an accident and the fault lies on you. You are shelling some money from your pocket at the time of insurance claim. This amount is said to be a deductible.
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.
So a good driving habit ensures a reduced car insurance expense. Two alternate modes are put before you. Drive safely as long as you can and have the confidence of raising the deductible. If otherwise you get into some accident, raising the deductible prove to be costlier.
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.
Considering that it is possible to keep driving without any accident for 3years and 4months, but there are others on the road who are less efficient which naturally raises chances of involving you in an accident. Again, city dwellers are very much familiar with traffic, rush and reckless driving. Therefore if you are driving mostly in urban area, your chances of getting an accident is very high and so you have to reconsider raising the car insurance premium deductible.
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 Insurance portal.
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