Canceling car insurance to save money may not be a good option

Understand better in this article why canceling car insurance to save money may not be a good option.

The country is experiencing a time of crisis, and many people have been looking for ways to save, evaluating in their budgets what can be cut or changed, in order to spend less. At these times, life, home or even car insurance can become a cut-off option.

But canceling your car insurance to save money may not be a good option! Why? Follow this article and understand.

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What is car insurance for?

Car insurance is a service provision contract made between a customer and a company, in which the customer pays a certain amount so that if an accident such as flood, collision, fire and theft occurs, the insurance company will pay the costs. costs for repair or compensation for the lost vehicle.

Without car insurance you will be taking on the risk alone.

When you choose to cancel your insurance, you are choosing to assume the risks yourself, which means that in the event of a natural accident, a collision or even a robbery, the losses will be yours alone.

When we have a low budget, it is normal to look for ways to reduce expenses, to avoid debt, and in these cases canceling insurance may seem like a good deal, as this is not considered a basic need, like food and family budget. .

There are those who believe that insurance is the purchase of a service that will not be used, but the truth is that you cannot predict tomorrow, you can pay insurance for years and never have an accident, cancel it and the next week have a serious accident and lose the vehicle.

Therefore, it must be said that it is not worth canceling your car insurance to save money, even in times of crisis, in addition to being subject to assuming the risk alone, you will not have the entire amount paid for the policy fully refunded.

Only part of the payment will be returned, a percentage that will vary according to the month in which the service was contracted and the month in which it is cancelled, that is, in addition to losing coverage, you will also lose a lot of money.

When you cancel your car insurance you lose a lot

When you cancel your car insurance, it is not just the coverage for accidents like those mentioned above that you lose, you also lose the right to compensation from third parties, and you start to assume this risk alone, and lose all the benefits that the service can provide. provide you, such as the 24-hour assistance that most companies offer, which in addition to not requiring the payment of a deductible, covers simpler and more common occurrences such as:

• Winch 24: to tow your car in case of a mechanical problem;
• Dry breakdown: if you run out of fuel, just call your insurance and they will bring the fuel to you;
• Mechanical breakdown: if your car stops working in the middle of nowhere, they send a mechanic;
• Changing tires;
• Keychain;
• And much more.

In other words, in addition to being subject to losing your car, you will also not have assistance in minor situations that happen more frequently. In addition to all these benefits, you will also lose a lot in the psychological factor, since when we have car insurance, we are much more at ease when parking the car anywhere.

What to do to save then?

Definitely, canceling car insurance is not a good solution for those looking to save money, especially if the vehicle is essential in everyday life or is part of your source of income, as a work tool, since, if you lose it, your work will be harmed.

However, if you feel that the value is too high for your budget, it is worth renegotiating your policy, perhaps canceling some of the coverage, one that does not pose a major risk, would be a good solution.

Another good way to save on insurance is by installing a tracker and/or blocker in the vehicle, if it doesn't already have one. In most insurance companies, policy values ​​drop by up to 20% with the installation of this equipment.