Self car insurance is one of the methods adapted by most people now days. This doesn’t mean that your car is not insured or do not have insurance coverage. Self car insurance only means that you have an action plan already made for retaining the losses that might occur in future to your car due to accident or some other event. In self car insurance you are ensuring the losses that are unpredictable as if in any other insurance methods.
You can in a way describe self car insurance as a method by which a risk management policy which is creative along with the ability to retain risk and managing it being managed by yourself. In self car insurance policy an amount is retained by the owner of the car itself for retaining of any predictable losses. This also ensures potential as well as unpredictable losses too. In self car insurance you are keeping aside some amount for any losses that might occur in future. In this method you won’t be purchasing any insurance coverage and is keeping aside some cash for insurance needs.
First and foremost thing to do for self car insurance is to create some fund after assessing fund limit for losses. Thus, a pool of sum will be kept aside for adjusting with the losses that occurs unexpectedly. If you are purchasing insurance you will have to pay premium amount every month or year as per the terms and conditions. But in self car insurance method you will be keeping an amount towards losses that are likely to happen in future. Only thing you need to do is to keep aside an amount that is worth enough to cover any potential losses in future. We can say that the method used in both common car insurance and self car insurance are same and the only difference is in a self car insurance method there is no premium payment to any insurance company or there is no insurer or there is no financial provision for payment.
You must have a clear understanding about the life of your car and how worth it is. Make an assessment as to whether insuring your car towards losses and third party claims is necessary and affordable. If your car needs to be insured for large amount or if you can repair any damages that occur. You have to also make sure whether complete risk coverage is necessary or partial risk coverage will be enough. After clear assessment you can plan a fund management system whereby the amount for self car insurance need to be fixed. After fixing the amount keep aside the amount that you feel is necessary for incurring future losses likely to occur to your car. But in any case you cannot have self car insurance for events like earthquake or hurricane that will cause large amount towards losses.
Thus self car insurance is a well planned insurance to cover your predictable losses. If chosen properly, everyone can benefit out of it.