How do I get the best out of my car insurance coverage?


For most insurance policy consumers, the Insurance world may seem like a different dimension altogether. Sure, insurance jargons may be overwhelming but even an average insurance consumer can actually do something to maximize their insurance coverage.

  1. Think like an insurance policy provider
    • Fact: Car insurance companies operate on the principle that consumer demands must be met with the least possible expenses and the biggest possible gains.
    • Example: So, if you were insuring a flashy car at a high risk of being stolen, the insurance company would demand a higher premium – the fee you pay yearly in to avail of the insurance policy.
    • Solution: Something as simple as installing a car alarm can go a long way in helping you lower that car insurance premium.
  2. Know how much you are willing to pay
    • Fact: Another way by which you bring out money in an insurance coverage is through the Deductible, a set amount of money you agree to pay in cases of accidents before your company will expend for the remaining expenses.
    • Example: The total damages in an accident amounted to $ 5,000, and you have set a Deductible of $1,000.  In here, you will have to pay for an amount of $1,000 before your company will cover the remaining $4,000.
    • Solution: Note that the higher your Deductible, the lower your premium. So, if you are a prudent driver who rarely really needs that $1,000, it would be best to settle for a higher Deductible and a lower premium. However, if you’re the other kind of driver, a high Deductible might not be such a good idea.
  3. Learn to “Trick” your rates
    • Fact: Insurance companies look into various things when deciding your premium rates. They look into your driving history, your mileage or frequency of car usage, the kind of car you drive and a lot more.
    • Example: The larger your list of traffic violations or accidents, the higher the car insurance company would demand from you. The longer your mileage and the more you use your car, the greater your chance of meeting an accident and thus, the greater your premium. And the more at-risk of being stolen you car is, then the higher your premium will be.
    • Solution: Keep your driving record as impeccable as possible. The better your driving history, then the lower your premium rates. Find ways to minimize your mileage or car usage. If commute during weekdays is possible, then you’ll be amazed at how much this effort can deduct from your rates. Also, choose a car that will scream less of ‘steal me!’ every time you use it. And finally, discounts do exists so do ask for them from your car insurance provider.