Do you really need car insurance? Answer these questions and find out

Car insurance is compulsory in most states in the U.S, and the chances are that you already have a cover. But if you don’t, you’ve certainly thought about it. One way to decide if you need car insurance is to ask yourself these basic questions. They cover topics like how you pay premiums and how many cars you insure.

How often do you drive?

Your driving frequency says a lot about your insurance needs. If you’re rarely behind the wheel and are instead driven by a designated driver or family member, you may not need car insurance. That’s assuming that the vehicle isn’t yours.

If you drive every day, auto insurance can be a safety net against unexpected events. Accidents tend to happen, and the more often you’re on the road, the greater the chances. It’s best to be covered.

What driving lessons have you taken?

The amount of driving education you’ve received can affect both your need for insurance and the premiums you get on a policy. Beyond the fundamental driver’s education required for a licence, there are other courses, like defensive driving and driving in stressful situations. These can make you a better driver.

Better driving skills equal lower risk of an accident. It’s the same reason why insurance companies will offer you lower premiums. They know you’re less likely to claim your policy, and they make it as enticing as possible. 

What does it cost to fix your vehicle?

The cost of your car can affect your need for insurance. If you drive an affordable model with cheap parts, you may not need insurance. Additionally, if you’re financially buoyant enough to handle all possible costs, including a complete replacement, you may be fine.

But if you’re like most people, you need extra input. You’d rather pay yearly premiums and get a fat check in the case of an accident. If you own a luxury vehicle, you need insurance even more. High-end models can be costly to fix, and you don’t want to get stuck with the whole bill.

Are you a risk-taker?

Most of life involves one risk or another. Insurance policies offer to soften or even completely absorb the blow from these uncertainties. Most people feel safer knowing that they have protection from situations like a sudden loss of income or a house fire. 

But if you prefer to live on the edge without knowing what comes next, you may not need insurance. Granted, it’s a dangerous way to live, and you’ll probably lose more than you’ll gain. The alternative, of course, is to get a policy that protects you from the possible dangers. And for small yearly premiums, you can make it happen.

How are you at due diligence?

Due diligence is another requisite for taking out an insurance policy. Most providers have terms and conditions embedded in the fine print. These aren’t to cheat you out of your claims, but to clarify the exact circumstances surrounding your insurance. Unfortunately, many people never read these in detail.

If you’re good with due diligence, you’ll be able to find the right auto insurance quite easily. You can investigate which insurers offer discounts, deductions, and even cashback rewards. Due diligence can also help you avoid common traps that most insurance seekers fall into.

How many vehicles do you have?

Many insurance providers offer discounts for people insuring multiple vehicles. The discounts can be so significant that many individuals buy insurance just to enjoy them, as some providers offer up to 25% This is one of the most considerable premium discounts you can get, followed by negotiating as best you can.

If your vehicles will be driven at some point by other family members, discuss it with your policy provider. As mentioned under due diligence, all the terms don’t always come up at the beginning. You need to discuss them explicitly to get a clear picture.

Can you afford high premiums?

If your answer is no, don’t worry because most policy seekers have the same answer. We all have financial obligations, and the last thing anyone wants is to pile more on top of that. If you can’t afford high premiums from auto insurance, you can use several resources to seek out a better deal.

For example, this source offers price comparisons from 100 different insurance companies in the U.S. Checking them out means you’ll find the best possible premiums with the most favorable terms. And that’s really how all insurance should be.

How to get the best possible rates

Once you decide to get insurance, the next natural concern is how to get the lowest possible rates. This next section addresses the same issue by giving you three helpful tips.

Negotiation for higher deductibles

We’ve already established that your insurance premiums depend on many factors within and outside your control. One of those within your control is your deductible amount. Deductibles are what you pay before your policy kicks in. 

Higher deductibles mean you’ll have to pay more upfront for fixing your vehicle before your insurer issues a check. Raising your deductibles can get you lower premiums by a significant margin. This is because it reduces the chances that your insurer will have to pay up.

Buy your insurance from the same provider

Buying in bulk has always been a great way to lower costs and earn discounts. Depending on what your provider offers, you can buy your homeowner and auto insurance from them. If you plan to get multiple policies, it may also be a good idea to find the insurer with the widest range of offers.

You can also earn a similar discount when you stick with a provider for a long time. These are called loyalty discounts, and you get a little more every time you renew your policy.

The bottom line

If you’ve been uncertain about your car insurance needs, hopefully, these questions give you answers. The truth is, unless you’re financially buoyant enough to absorb the costs, you’ll need car insurance. Luckily, we also have two solid tips to help you get the best possible rates. 

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