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The Importance Of Auto Insurance
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.
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.
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.
About the Author 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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