By raising your deductible as high as you can afford, your direct car insurance premiums will go down significantly. You can save right now and take care of the small things your self, leaving the dependence for major expenses in the event of an accident to the insurance company.
While we love the idea of being secure, knowing that the direct car insurance will take care of it all, we must remember that they are not in the business of protecting you, really. They are in the business of making money and one way is to make sure their risk is lower that yours, meaning that it is more likely that they will not have to pay out. That is what your insurance rate depends on the most.
Not Your Rich Daddy
This is not a bad thing, it is actually beneficial to you. They are betting that you will not have an accident. So to help them help you, take the small things out of their hair so they can base your risk factor on the most unlikely to happen things – the things we call accidents. Those are the events we really need to be protected from, and that was the point of insurance in the first place. For some reason, we came to believe that the direct car insurance company has become our rich daddy that we can go to with any kind of pickle we get our selves into. They are only there to pay for the most unfortunate major situations that we, by our selves, would not be able to take care of, things that would have an enormous negative impact on our life, destroyed a car, crazy hospital bills, ruined other people’s property.
What’s A Deductible Anyway?
Let’s take a look at what deductible really is. It is the first chunk of the cost of an accident. This is the amount of money we, our selves, are going to be paying for before the insurance company needs to get involved. If we are willing to take care of the small fender benders and scratches, the car insurance will cost less and that difference that we save can be put in our own savings account to pay for those small things, if they ever happen. Having the money in our own bank account gives us the power and access to that money for any other situation we may need to attend to. Putting it into the car insurance company’s pocket makes no sense at all.
So with that in mind, assess your situation, call your direct car insurance company and tell them you want your deductible raised. While you are at it, get as many other quotes as you can from other companies too, so you can make the most informed decision.
Source by Valik Rudd