Insuring your automobile can be a financial burden. In America, insurance is the third-biggest expense associated with car ownership, as illustrated in the Carsurance’s infographic.
Actually, it can set you back more than maintenance. Allotting a larger slice of your budget for auto insurance, a product you may never use, than for regular vehicle upkeep, which is of utmost importance, can be a hard pill to swallow.
Even worse, many non-driving qualities can inflate your car insurance premium. The younger you are, the higher your payment will be. Although it goes down incrementally as you mature as a person and gain more experience as a driver, it is likely to increase again after your mid-50s.
Apart from your age, your gender may be a liability too. Being a male can place you at a disadvantage, for men in general are more reckless on the road than women.
Your place of residence or work may play its role in driving your auto insurance premium up. Commuting in a location with high traffic volume or with crime rate does not give your insurer incentive to charge you less.
If you are like many private vehicle owners, you probably buy auto insurance with minimum liability coverage in hopes of saving money. Doing so does not break any law, but it can render you underinsured since your insurance may be not comprehensive enough to pay for all of your financial obligations in case of an accident.
While being underinsured can shrink your insurance payment, the benefit may be short-term only. If you get involved in a car crash, your insufficient insurance coverage will force you to pay the remaining expenses out of your pocket.
This gamble may not be worth the trouble. Considering the prospect of financial distress in the event of a collision, especially when you are found culpable for the incident, increase your coverage limits and raise your deductible to get more value for your money instead of risking being underinsured. This way, you can get more reliable coverage and receive a discount at the same time.
To learn more ways to save money on your auto insurance properly and effectively, check out the infographic below!
