Car Insurance for the Savvy and Frugal

The purpose of insurance is to protect your finances in the event that an emergency befalls you, threatening to put you in considerable debt. Insurance defeats its own purpose if you’re already overspending beyond your means just to keep hold of your policy. Many people make a variety of mistakes in selecting or finding their car insurance policies, which make it particularly likely that they’ll find themselves in this predicament down the road where insurance is the bane of their finances. It’s best to be both savvy and frugal about how you approach car insurance.

Model

First of all, our capitalist society incentivizes a high rate of consumption, and there is an incredible degree of sign value or brand value associated with having the latest, newest thing. That’s why people love to be able to say that they just bought the brand new whatever. You want the model of your vehicle to correlate with the current year, yet you also want your insurance premiums to be lower. These two things cannot simultaneously be, which is one of the main reasons why it is actually never a smart consumer decision to buy a legitimately brand new car. If you own a brand new car, you can expect the most expensive insurance policy to be the only one that covers it even if you opt for liability-only. Insurers view the newest vehicles to be the ones most likely to be driven irresponsibly, and damages to those vehicles can also be more expensive to repair.

Ownership

In addition to buying a dated model, which doesn’t necessarily have to be all that old, you should also actually buy the thing rather than just leasing it. When you lease a vehicle, the company that sold you the lease still owns the vehicle, and they determine what types of insurance policies you’re allowed to acquire for the vehicle, which is to your disadvantage most often because they tend to be frugal themselves. In other words, they want to guarantee that they are never the ones liable for any of your damages, yet they’ll require you to get a very comprehensive insurance policy that covers everything they want covered, which will cost you way more money.

Minimize Coverage

When selecting car insurance, you’re choosing either a liability-only policy or a comprehensive policy. The latter potentially covers every conceivable damage you or others sustain, and the former only covers damage you cause to other people’s vehicles, which is the bare minimum insurance you can legally acquire. Truth be told, comprehensive insurance is tantamount to the scam that many people often consider insurance to be; the only reason to have comprehensive insurance is if you genuinely can’t afford your vehicle, which is your own fault because you should’ve purchased a vehicle you could own outright. Buy a dated model you can own with your own disposable income so that you can choose a liability-only policy. This policy needs to be the anti-bells-and-whistles policy; its premiums will be a fraction of the premiums you’d pay for comprehensive insurance.

Get the Highest Deductible

You can’t beat the big risk industry. The best you can do is pay as little as possible for the legally required coverage. One of the reasons you should be able to do this is because your health insurance policy, which you’re still legally obligated to have while Obama care remains law, should include auto accidents. With this in mind, there’s no reason your auto insurance policy should also cover accidents; that’s redundant and unnecessarily costly. That covers harm to you, and you don’t have to worry about what happens if you hurt someone else either because even the minimum liability covers the most common injuries another person is likely to sustain in a car accident of just about any kind.

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