Your car insurance company can be a huge help if you’re in an accident and are suddenly faced with gigantic bills for car repair and maybe even medical bills. However, make no mistake about it – when you choose a coverage plan, you’re placing a bet against your insurance company. If you know anything about gambling, you know that the house, even if it doesn’t always win, statistically comes out on top in the end.
Your auto insurance company knows that when they agree to insure you, they’re placing a bet of their own. They’re betting that you will pay more in premiums than they will have to shell out in your behalf. Basically they’re taking a gamble that you won’t be in any devastating accidents while you are covered under their coverage plans. While it’s somewhat comforting that your insurance provider wishes you the best of health and an accident-free life, it’s still annoying to some people that statistically they will end up the “losers” in the insurance game.
Since most states require all car owners to have at least the minimum amount of coverage from a certified insurance provider, you can pretty much tack on auto insurance to the list of life’s inevitables: death, taxes, and car insurance. The sooner you accept this fact the better.
But how can you make sure that you don’t end up feeling cheated in the auto insurance game? First off, having insurance is smart. Even though you might never be involved in a car accident that leaves you liable for two totaled cars and never-ending medical bills, it’s very wise to be covered in the event the unthinkable happens. And even if you’re the safest driver on the road, you never know what weather conditions and other drivers will throw at you. Even though paying insurance bills is about as fun as a traffic jam, it should give you peace of mind that you are insured against circumstances both in and out of your control.
Once you’ve resigned yourself to both the inevitability of paying insurance and the importance of protecting yourself from utter financial ruin, it’s time to do some number crunching. If you go with a good company that has competitive rates and a good track record of protecting their customers, you can expect that the more you pay in monthly premiums, the more coverage you will have. If you take an honest look at your finances, you can decide on an affordable plan that will offer you the right amount of coverage for your circumstances.
One important consideration you should take into account is how much your car is worth, especially if you’re still making payments on it. You want a plan that will cover the amount of your car so that if it gets totaled you aren’t stuck making car payments for a car that now resides in a scrap yard.
If you can figure out how much you can afford per month, and how much you have in savings to pay for damages on your own, you can come to a clever compromise that will leave you feeling like a winner. When you think of it in that way, more expensive insurance is actually less important for someone with plenty of money than it is for a person with only limited finances.
So talk to your insurance agent and make sure to look at various scenarios. If you can find the minimum coverage that will protect you even in a worst-case scenario, you can strategically pick out the plan that will leave you feeling like a winner in the auto insurance game.