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.
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.
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.
Your car driving habits has a significant influence on your insurance expenses. For a safe driver, increasing deductible will be beneficial as he can stay long periods without an accident and the opposite is with an unsafe driver who meets with accident often, it does not worth raising the deductible. Also getting an accident just after raising your deductible ends up in loss like in the following example.
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.
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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