The Importance Of Auto Insurance

Written By: Graham McKenzie on November 5, 2009 No Comment

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.

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.

In an anxiety to reduce your monthly car insurance premium payment you accept for an increase in car insurance deductible. Think before you decide. In case you go for an option of double the deductible, you must have a reserve equivalent to the agreed amount with you in the event of an accident and a subsequent claim. By any chance you have the sufficient reserve with you, in order to hold the money with you need to do a careful driving, keeping away the risk of a car accident. It is for sure in your economic conditions, you may have the reserve and hence cannot opt for this deductible.

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.

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.

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.

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 and vechile portal.