our car is an indispensable part of your life. It takes you to work, helps you get around town, allows you the freedom to travel around the country, and provides the means of taking your children safely to school. Because your car is indispensable (and also probably expensive), car insurance is a must for your vehicle. But all car insurance is not created equal. In addition, many people do not have enough car insurance or have too much insurance for their needs. Here’s how to make sure you are not spending too much money on your car insurance or, the reverse, spending too little.

Know Your Risk

Understanding what may negatively affect your car and you will help you decide how much insurance you need to take out. For example, know the risks that commonly affect drivers such as collision and other auto accidents, theft of the vehicle and also of items from the vehicle, fire, and hi-jacking. In addition, recognize that there is an increasing risk from drunk drivers, for example, that can result in damage to your vehicle or injury to yourself. Knowing about all the risks that can affect your car makes it easier to decide what level of protection you actually need.

Use a Car Insurance Calculator

The best way to find out how much your vehicle is worth and what you need to insure it for is to use an online car insurance calculator. For example, using the car calculator from santam allows you to input details about your car including make and model, year, value and the value of accessories and other factors in order to arrive at a realistic estimate of premiums associated with the vehicle.

Control Your Risk

The next step to getting the right level of insurance is to speak to an insurance adviser or simply apply for insurance using the information you get from the car insurance calculator. There are other ways you can reduce your risk of getting into an accident or having your car stolen, which can reduce the premiums associated with your insurance. For example, the LiveTrack system is a vehicle tracking system that rewards good driving behaviour by lowering premiums. The service also acts as a car tracking and recovery service. In addition, check that your vehicle is correctly protected against all normal security risks. For example, fit a tracking device and fit a gear lock. This can reduce your premiums. Make sure that your car is well-maintained and in good condition to help reduce the amount you spend.

By doing some basic research and looking into the details of car insurance you can help yourself to a policy that fits your needs. Check your insurance – if you are under-insured you risk getting into financial trouble and if you’re paying too much, you are wasting money. If in doubt, ask an insurance expert to find out exactly where you need coverage.

Image courtesy of Bill Longshaw / FreeDigitalPhotos.net

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