Folks purchasing auto insurance often feel like there's a conflict between finding a policy that's cheap and one that's good. When searching for an auto insurance company to draft your policy, it's important to strike a balance. Everyone wants cheap car insurance, but you have to consider a few other factors. This article looks at 4 things you should consider when trying to get the best car insurance for your dollar.
Your Ability to Take a Financial Hit
Generally, if you can afford to take a bigger hit when something happens, there's a lot to be said for having a higher deductible on the policy. This is the portion of the damage to the vehicle that you'd pay for if an accident occurred. For example, someone with a $500 deductible would pay $500 if an accident led to $2,500 in damage. The auto insurance company would pay the balance of $2,000.
The argument for a higher deductible is simple. You pay less in premiums for a high deductible, but then you have to put back money to cover the deductible in case something happens. Never set up a deductible that's higher than what you can immediately afford to pay out of your own money. If that means paying a slightly higher premium, it may be worth it.
If you have a good record as a driver, bring it to the agent's attention when drafting the auto insurance plan. You deserve cheap car insurance if you've proven to be a safe driver. If the companies you're looking at aren't cutting you a good enough deal, don't be afraid to take your business elsewhere.
Type of Vehicle
Insuring a more expensive car will be costlier than insuring a cheaper one. Someone driving a supercar might need $250,000 or more to replace it. The auto insurance company has to collect enough in premiums to justify issuing the policy.
That means a good way to get cheap car insurance is to find the least expensive and safest vehicle available. It might not be the sexiest way to drive, but you'll have a better chance of getting the best car insurance at a price you can afford if the insurance company isn't sweating what happens if you wreck it.
It's worth considering how little coverage you might want on a cheap policy. Comprehensive coverage is better for many people because it covers things like theft, weather damage, and collisions with animals. Sometimes it's better to pay a little more and know you'll be covered in all circumstances.
Reach out to an auto insurance provider to learn more.