Almost every driver wants cheap car insurance premiums. But is cheap always best? Find out when cheap is good and when you should spring for more expensive coverage. Once you learn how to compare cheap car insurance, you’ll get the best policy that fits all of your needs.
How Increasing Your Deductible Can Cut Costs
A deductible is the amount of money you pay before your claim begins its coverage. The Insurance Information Institute says that increasing your deductible from $200 to $500 can save you up to 20% in yearly insurance costs. Even if having cheap car insurance costs is your highest objective, it pays to think about the long term. If your insurance company gets to pay a lower amount in the event of a claim, they will have you pay less in your monthly premium. Isn’t that worth a couple of hundred more dollars once in a blue moon? If you’re still not convinced, think about this: If your goal is to have a cheap car insurance premium, then you’re most likely being very careful on the road. If you’re a safe driver, you’re less likely to get into an accident. If you’re not getting into a lot of accidents, then an extra couple hundred dollars won’t be quite the disaster that it would be for a motorist with horrible driving habits.
Extra Coverage: Is It Needed?
You might come across a pushy insurance agent who insists that you get additional insurance features such as collision and comprehensive coverage. Depending on the U.S. state you live in, some features such as Personal Injury Protection and Liability Coverage may be required. You should always gauge the value of additional insurance features before agreeing to a policy. For example, if you have a very old car, the damages received from a claim may not be enough to fix your vehicle or buy a new one. If your car is very old, it’s probably a good idea to say no to the comprehensive and collision coverage. Once these additional items are out of the picture, you can easily compare cheap car insurance.
Heeding Advice from Your Insurance Agent
When comparing cheap car insurance quotes, please don’t forget to consult your insurance agent! Your agent can be a great source for re-working your insurance policy so that it’s satisfactory to all involved in the process. You’ll definitely want to go to your insurance agent if you have significant life changes that will affect how you use your car. Some examples you could bring to your agent include a decision to walk to work or commute using public transportation. If your child is going to college and isn’t taking the car, this could also be a potential source for savings.
When you start to compare cheap car insurance quotes, keeping a few factors in mind such as the amount of your deductible and lifestyle issues can definitely keep costs down. If you’re doing a lot of online research, don’t forget to include your insurance agent in the process. If you have a good driving record and credit history, you’ll never know what your agent will come up with in order to keep your business.