Time to stake a claim?
I like my money. Do you like your money? I thought so. So why do we feel what we pay for car insurance is acceptable? According to the Insurance Bureau of Canada, they pay out over 29 billion dollars a year in claims. That’s way too much, isn’t it? Essentially, this means we can control our future costs. Here’s what I mean.
Every time you or any other driver puts in a claim to your insurance company it adds to the yearly total the industry pays out. You may not believe that your $2000 claim is big, but think about this; if there are 21 million drivers in Canada and 29 billion dollars in claims, it averages out to having each driver receiving almost $1400 a year in claims. If you didn’t receive that money for a claim, than someone else used your portion and it escalates from there.
Here’s my plan to reduce the billions of dollars a year in claims. Don’t make any. Yup, that’s it. How can we do that you ask? Think about where you park. A lot of claims each year have to do with parking. If you’re parked right around the corner and a driver takes that corner too fast, they may hit your vehicle. This means you need to make a claim to the insurance company. If you park further up the street and not opposite a driveway, there is less of a chance your vehicle gets hit.
Another suggestion is to make logical decisions regarding how you drive. If the roads are slippery, begin slowing sooner. We know we can slide on slippery surfaces so why are we braking at the same distance we would on a dry surface? The sooner you apply the brake, the less pressure you need and the less chance your vehicle will slide. If you don’t slide, you will have less of a chance to crash into the driver ahead of you.
Make sure your vehicle is properly maintained. It’s difficult to stop if your brakes have worn down. It’s also difficult to see at times if your wipers are worn. How well can you accelerate out of the way of a close call if your vehicle sputters when you hit the gas? Maintaining your vehicle can help reduce claims because it will respond better to your needs.
To save some money on premiums as well as claims, increase your deductibles. If you change the deductible to $1000, say from $500, you’ll pay for the smaller problems before the insurance does. For example, a windshield costs less than $1000, so the insurance company doesn’t have a pay out. They may also reduce your annual premiums since they’ll potentially save money on minor claims.
The bottom line here is that you can help influence your future insurance premiums. If we all work together to reduce claims, we can begin saving money on car insurance. That’s the claim I’m making!