Car Insurance: What Is a Moral Hazard?

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You can lower your deductible in many cases, but you end up paying more on your insurance premium if you do so. Deductibles are also put in place to all but eliminate small claims for minor damage, such as a slight scratch. This helps keep premiums more affordable for everyone.
When it comes to larger repairs, a deductible helps alleviate some of the burden on the insurance companies and places some of that burden back on the at-fault driver. By charging higher-risk drivers a higher overall premium, the insurance companies can keep their rates lower for safer drivers.
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How can you lower your car insurance premiums?

Driving safely and staying out of wrecks is the best way to keep your insurance premiums low. But there are a number of other ways you can lower your insurance rate, including:
  • Replacing your car: The type of car you have can affect how much you pay for car insurance. Frequently stolen car types will cost you more, as well as a car that is more costly to repair. If you buy a new car, look for one with more safety features for a slight discount.
  • Changing your policy: You can also change the car-insurance policy you have. If you have an older car and no longer require full coverage, you can reduce what you have to lower your costs.
  • Switching insurance companies: Shopping around for more affordable insurance with a different company is another option. In fact, many experts feel you should shop around every six to 12 months.
  • Improving your driving record: You can also work to get any traffic tickets removed from your driving record. A violation should only stay on your record for a certain amount of time, and you can even get them removed in some states by meeting certain prerequisites.

Getting the best deal on car insurance

A good way to mitigate moral hazards is to ensure that you have an appropriate car insurance package. For the best deal, try Jerry. A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
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