Sensible use of vehicle insurance includes filing claims for large repairs when there is an accident. For smaller things, like a small dent in a door from a careless driver at the mall parking lot, it will be best if you just let it go. This is a costly repair, mostly cosmetic, that does not affect the safety or driving ability of the vehicle. A less costly repair such as a broken windshield should be done because it does affect the safety of the vehicle. That is the criteria. How much will the repair correct a safety or operational factor or the vehicle? The second thing to consider is, if you can fix it on your own for less than the deductible then do not file a claim. Take the long view here. You will probably drive for 50 years, owning one or more vehicles at a time all during those years. A little common sense here could save you a small fortune.

The premium charged semi-annually for vehicle insurance ranges from $300 to $1200 depending on several factors, like driving history. This is a considerable amount of money to most people. The thinking here is to file a claim for every incident, no matter how minor, if the amount to be paid exceeds the deductible. What can happen is that 2 or 3 small claims are filed that seem to get back part or most of the premium paid and then there is a large claim for a serious accident. When it comes time for the renewal notice of the insurance, the driver gets a cancellation notice instead.

Insurance companies continually look at their own financial risk. If it appears that the vehicle and driver insured by them is going to cost more than they are willing to risk, they can simply cancel the policy. One of the questions most insurance companies ask when deciding to insure a new customer is if their insurance has ever been cancelled. Many times they will refuse to insure the vehicle without asking the circumstances of the previous cancellation if any.

If the insurance company has decided to renew the policy for another six months, the premium may well be doubled. The insured may also find the deductible increased and coverage decreased. These factors are all legally available to the insurance company if they believe the insurance is being abused. In effect, the driver is on a kind of probation.

So what good is the insurance? First, consider that if you have a serious accident where damages amount to half the value of the vehicle, having insurance is a wonderful thing. With vehicles costing anywhere from $10,000 to $30,000 on average for a middle of the road car, repairs could equal the cost of the insurance premium for 5 to 10 years. If you have been sensible in your use of the insurance, the premium will probably not increase.

Second, having insurance on the vehicle is required by law and you do not want to break this law. The penalties for doing so are huge, including fines and possibly jail time.