Yes. Besides you HAVE to have it and “if theres’s an accident”, are there any other benefits I’m missing a not taking advantage of?
Our car insurance is about $300 a month and it just feels like a huge black hole. Of course we want the security to be covered in the event of an accident, but 25+ years of driving and no accidents… prices of everything rising what seems like everyday… it just hurts more and more to dish out a chunk of money into the abyss.
Can it somehow cover maintenance and regular repairs? Which would certainly reduce the number of accidents.
Are there any monthly benefits to car insurance?
byu/Astrolaelle inFrugal
Posted by Astrolaelle
7 Comments
Not to my knowledge. It’s there for when you look at the pretty spring flowers and run into a pedestrian, another car, and then a cafe full of people.
Nope. it’s there if you hit someone/something or if someone hits you.
checkpoint b92983
Maybe look into further discounts available if you have an alarm system or a dash cam or something. Also you might want to shop around if you haven’t already. Sometimes there’s a significant deal, and sometimes not. It’s just the unfortunate reality of insurance these days that costs to repair, replace a car or to make an injured person whole again have risen to exorbitant levels. Also fraud and litigation. Fraud causes billions of dollars of additional costs to insureds. People are also getting more money from litigation. There’s also litigation fraud where law firms partner with medical facilities who over treat.
It’s not only really security that covers you if you get in an accident, but if you are at fault it covers the other party(s). That’s why it’s legally required, the majority of the US cannot pay for other people’s damages when they are legally entitled to compensation.
With that being said, insurance works by weighing the chances of you getting into an accident and charging more for you so on average with premiums they come out on top. If you have the savings to cover totaling your car, then you should switch to “liability” insurance. It is much cheaper, but if *you* are found at fault (or no one is), you will not be compensated by your insurance. If you are not at fault the other parties insurance would still compensate you. Just make sure you have a dash cam.
The big benefit is that someone else will pay to replace your car when it is stolen or destroyed regardless of whether that’s your fault.
If you’re accident free and paying $300 a month for car insurance, and that’s the best rate you can get, you’re putting like a $150K asset at risk every day. Kinda silly to spend that much on something and then complain that the insurance is expensive.
Just for reference, the average cost of insuring the average car in the U.S. is like $850 a year.
I don’t think so, but compare your car insurance again, a lot of people overpay for theirs