Some people view vehicle insurance as a necessary evil. Others prefer to view it as an investment. You may not have thought of it that way.
When you insure your vehicle what you’re really doing is protecting yourself in the case of an accident. It’s not cheap to fix a car that’s been an accident. It’s even more expensive if you have to go to the hospital and pay for medical bills.
You can quickly eat up your savings account if you have to pay to have your automobile fixed and you don’t have enough coverage to do it. You don’t really realize how much you miss having a car until it’s in the shop and you do not have enough money to get it out.
Today it is extremely expensive to spend time in the hospital. This in itself may make your vehicle insurance the most important investment you have.
Your return on investment is actually calculated by analyzing your premium versus the savings it brings you. Hopefully you’ll never have to make this calculation, but it is comforting to know that when you have vehicle insurance it is working for you when you need it.
So what can you do to make your vehicle insurance investment even more worth it?
The first thing to look at is how you pay your premium. Most companies will offer you the opportunity to save money by paying for a full year’s premium at one time.
If this is too affordable you can save money by making two payments a year. Another option is to pay the premiums on a monthly basis, but there’s generally a monthly fee for this option.
Whenever possible you want to pay as much upfront as you can to save money. However, the option is there and you never want to be without vehicle insurance because you can’t afford the yearly or semi-yearly option.
If you have a teenage driver there may be some discounts you can take advantage of. Stress the value of having a good driving record to your teenager.
Make sure they take a teenage driving course and your insurance company knows they passed it. Also stress the value of keeping their grades up as some companies will provide discounts to students with good grades.
Keep your driving record clean as well. If you’re avoiding accidents and tickets you can expect your vehicle insurance premiums to go down. Just think about all the money you’re saving when you drive responsibly.
The next time you pay your monthly premium think about how your vehicle insurance is really an investment you may need some day.