What I Learned About Car Insurance From Getting in Lots of Car Crashes

A lot of people don't know this about me, and I'm not "proud" of this, but: I have been in lots of car crashes. I'm not a reckless, unsafe driver. I have never had my driver's license suspended or revoked. I do not have to participate in a high-risk car insurance program. But somehow, for several years in a row, my wife and I got into car crashes almost every 12 to 18 months. The crashes included:

• A nearly head-on collision while turning left at an intersection
• A rear-end collision at a stoplight
• Getting my car door nearly ripped off by another car
• Totaling a vehicle on the freeway

The most important thing, of course, is that no one was hurt in any of our crashes. We were lucky that our car crashes weren't even worse! But getting in so many car crashes so often was a humbling experience. I learned important life lessons about car insurance deductibles, car insurance premium hikes, accident forgiveness, rental car prices, tow trucks, body shops, and salvage yards.

These are things you never want to think about when you're just happily driving down the road in your fully intact car, listening to a podcast, not colliding with any other vehicles. But it's best to be prepared! Let's look at a few of my favorite lessons learned from dealing with car insurance companies after getting in a crash. (Again and again and again!)

Lesson 1: Don't raise your car insurance deductible too high

One popular strategy for saving money on car insurance is to raise your deductible so your monthly premium will be lower. Raising your deductible can save you money in the short term, but it can be a problem if you get into lots of car crashes.

One year, we had to pay our $1,000 deductible twice, for two separate crashes in two separate vehicles. That was not fun! Fortunately, we had enough money in our emergency fund to pay it off. But there are thousands of things that I would've rather spent that money on instead of a deductible.

There's no single right answer for "how much of a car insurance deductible" you should have. Some people feel comfortable with a $1,000 deductible or higher, while other people want a lower $500 deductible. Do whatever gives you peace of mind.

Lesson 2: Your car insurance company will raise your premium

Unless you have some kind of fancy accident forgiveness car insurance, you're probably going to have to pay a higher price for car insurance after being in an accident. And for me, that feels totally fair! I actually love my car insurance company and I have no ill will toward it for raising my premiums -- because I deserved it!

After my most recent car crash, I was on the phone with the insurance company's customer service person to file a claim. And I said, "I'm so sorry that we keep getting in crashes. Just raise our premiums. You've paid out so many thousands of dollars for us over the years, you are never gonna get that money back. I'm the least-profitable car insurance customer ever."

Lesson 3: Car insurance subrogation -- sometimes the crash is still your fault

One of my car crashes happened while I wasn't even driving. I was in a parking space, and I was opening my car door to get out. Suddenly I heard a hideous wrenching of metal and a shattering of glass; another car was there, right where my car door used to be! Another driver had pulled into my parking space right as I was opening my car door. And now both of our cars were badly damaged.

I called my insurance company and in my shakey, adrenaline-addled voice, tried to explain what happened. I didn't think I was "at-fault" for the accident, because I wasn't even driving. But I must not have explained my side of the story very well, because my claim went to subrogation.

Subrogation is a process where insurers try to figure out which driver is "at-fault" for an accident and battle behind the scenes to decide which insurance company has to pay. After a few days, it was determined that I was at-fault for the crash, because I had not "opened my car door with care" while getting out of the car. So let that be a lesson to the rest of you! You can still be at fault for a car crash even while you're not driving, even while your car is parked and the engine is off!

Lesson 4: Don't be too quick to cancel rental car reimbursement coverage

Another way to save money on car insurance is to cancel extra coverages, like roadside assistance (free towing) or reimbursement for a rental car. It's tempting to save a few dollars a month.

But I once had a bad crash where our car was nearly totaled, but not quite -- and the car ended up in the body shop for an entire month. During that month, we had to rent a car, and we had to pay for it ourselves (about $1,000 -- in addition to our $1,000 deductible). We also paid out of pocket to get the car towed to the body shop.

Fortunately, we had enough money in our savings account to cover this unglamorous, unexpected expense. But many Americans don't have $500 of emergency savings. Keeping some of your car insurance "extras" might help save you money when you need it most.

Bottom line: Car crashes are stressful, but they don't have to be financially devastating. The best car insurance companies can help you find the right blend of affordable premiums and adequate coverage, without draining your savings.