January 22, 2012

Changing Insurance Options To Get A Cheap Car Insurance Policy

In a slow economy, everyone is looking to save money whenever and wherever he can. Cheap car insurance is a way to save a few dollars each month on premiums. While comparison shopping can help get lower rates, sometimes it is more about changing options within the policy than it is about changing companies. A high deductible and removing some other insurance can reduce the premium dramatically.

A lot of people focus their energy on trying to get cheap car insurance ineffectively. Looking at different companies can alter the price of a monthly premium; however, if a person isn't changing out the options, the premium could still be more expensive than it needs to be.

A high deductible is one of the most effective ways to reduce the cost of car insurance. A higher deductible means that the policyholder is paying more money out of pocket if and when they are involved in an accident and they make a claim with the insurance company. If a person is a relatively safe driver and makes very few claims, it can be a great way to save money.

A deductible can go anywhere from about $250 to over $1000. By dramatically raising the deductible, it can dramatically lower the monthly premium. By making a few adjustments in online quotes, it can be easy to view the full impact of cost savings.

Other options can also be changed in order to impact a car insurance policy. Many insurance companies will automatically add in a few different things into a policy that increases the cost of the premium. If a driver doesn't know to take them out, they may be paying for things that they don't actually need.

Personal injury protection (PIP) is often one of these items. This covers personal injuries that are sustained in a car accident. If a person has health insurance, however, it can be a way to skip over these costs without being impacted. Another type of coverage is uninsured motorist. If a person lives in a no-fault state, this could be a waste of money entirely.

Another option to remove is that of rental car insurance. Many drivers opt for this because it sounds like a good idea at the time and then never use it. If a person isn't anticipating a rental car, then the savings can be tucked aside and used on the monthly premium.

Learning what is optional within the car insurance premium can be a great way to save money and get a cheap policy. Often the auto insurance premiums can be dramatically reduced by removing optional coverage, increasing deductibles and carefully shopping around for the right company.