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.
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:
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.
Purchasing insurance — the right insurance — is one of the smartest things you will ever do. While there are definitely differences between homeowners, car, life, and health insurance policies, they all serve the same purpose when it comes down to it. Insurance protects you against financial ruin should a tragedy happen in your life. In the case of homeowners insurance, that tragedy could be a fire or a flood. In the case of life insurance, that tragedy would be your death. The more you learn about insurance, the better the decisions you'll make when purchasing it. So dive into the articles here, and start reading.