Avoid Driving Costs and Risks

Cars are an expensive item to own and operate.

 

The everyday costs of driving and car ownership can have a serious impact on finances, and you should look at whatever you can do to reduce them.

 

However, cars also come with some inherent risk, and these risks can drive you right into debt if you’re not prepared to handle them. Here are some major sources of risk, and what you can do to protect your finances.

 

Get Multiple Insurance Quotes

Find a business that can provide insurance quotes from multiple vendors. For example, One Sure provides an easy way to compare van insurance quotes for more than 20 insurers in the UK. Because the company works directly with underwriters, you pay lower premiums. Try their online quote system to lower your costs.

Are You Covered?

 

When you hear phrases like: “save money on your car insurance”, or “cheaper rates on auto coverage”, be careful.

 

There’s really no such thing as cheap car insurance. If insurance is cheaper, it doesn’t offer the same level of coverage.

 

Here’s why:

 

• Insurance is math: Insurance is based largely on math, specifically the likelihood that you’ll have an accident, and the cost of that particular insurance claim. Every firm uses the same type of assumptions, which are calculated by actuaries- math majors.

 

• Regulation: The insurance industry is one of the most heavily regulated industries in the world. No insurance company has a magic pill that allows them to offer a higher level of insurance coverage at far cheaper rates, because all insurance companies play by the same basic set of regulatory rules.

 

When you hear about “cheap” insurance, check out the coverage offered, because it’s probably less attractive.

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Policies that have lower premiums may have a much larger deductible, which means you pay much more out of pocket, should you get into an accident. Learn more about the common auto insurance traps that you need to avoid. You might even want to consider using an insurance broker to make sure that you’re not getting a deal that works against you.

Legal Concerns

 

Some drivers get into situations that create legal liability.

 

Driving under the influence could cost you big. Besides doing what you can to prevent it, having legal help like AndrewAlpert.com can be crucial in protecting yourself from allegations of a DUI.

Knowing to handle accidents is essential, too. Make sure that you have a lawyer to help as soon as possible, and collect any evidence or witnesses that can help you make your case. Don’t forget to contact the insurance company and the police in the event of an accident.

What About Repairs?

 

Repairs can end up costing you a lot more if you’re not careful. As WiseBread.com shows, neglecting to invest in routine maintenance, quality replacement parts, and repairs will increase your car’s cost over time.

To deal with the costs of repairs, it’s wise to set up a budget. Base this on how much you spent on repairs in the past year, and build a savings balance to cover the cost. That way, when it comes time to pay for a major repair, you don’t have rely on credit quite as much.

Besides investing in the right protections, the best way to stop your car costs from going through the roof is to drive safely. Learn defensive driving, take measures to prevent driving under the influence or drowsy driving, and consider investing in additional safety features for your car. Your life could depend on it, not just your budget.

This post is for educational purposes only.

 

Ken Boyd

Less search time, more answers, better content

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

 

Image:

Maciej Lewandowski, Vintage Cars, (CC By SA-2.0)