Insure Your Future

How To Minimize Car Insurance Claims

6 June 2023 by Sue Palmer

Car insurance claims, especially claims arising from your mistakes, can affect your auto insurance rates. Thus, minimizing claims is one way of keeping your insurance rates low. Below are three main ways to reduce claims.

Prevent Accidents 

Auto accidents are the common reasons people file insurance claims. Thus, reducing your involvement in accidents can help you avoid claims. Here are tips that can help:

• Practice defensive driving by anticipating and avoiding dangerous situations.
• Respect all road rules at all times.
• Don't drive after drinking, even if you think you can safely drive.
• Maintain a safe speed minding the prevailing conditions. For example, slow down on damaged road sections or during poor visibility.
• Maintain your car, especially safety-related parts, such as tires, brake system, and lights.
• Yield to other drivers.
• Watch out for non-motorized road users.

Consider defensive driving classes if it has been a long time since you learned to drive.

Protect the Car

Apart from accidents, car damages from other causes can also force you to file claims. For example, some people might vandalize your car, natural forces (such as storms) can damage the car, or someone might steal the car. Protect your car from such threats.

Park the car in safe places to minimize theft and weather-related damage. For example, garage parking is safer than street parking. Secure your car with anti-theft devices to reduce theft risk. Theft deterrents include car alarm systems, wheel locks, and tracking systems.

Lastly, lock the cars and windows whenever away from the car. Don't leave valuables in the car if possible. If you must leave valuables in the car, ensure they are not visible to passersby. Otherwise, the valuables might attract thieves.

Raise the Deductible

Consider raising your deductible — the amount you must pay out of pocket when filing a claim. A high deductible will encourage you to cover small losses or repairs out of pocket. For example, you are unlikely to file a $1,400 damage claim if you have a $1,000 deductible. However, you might file the same claim if you have a $500 deductible.

A high deductible also encourages avoiding accidents and incidents to avoid out-of-pocket expenses. Your insurance company may reward you with lower rates if you raise your deductible. Just ensure your emergency savings cover the deductible so you can repair your car in case of damage.

Minimizing claims is just one way of lowering your car insurance premiums. Talk to an agent for more advice on keeping your auto insurance coverage affordable.

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