December 18, 2011

Finding Cheap Car Insurance Without A High Deductible

Finding cheap car insurance can be difficult, especially for drivers who have been classified as high-risk by their auto insurance providers due to a few traffic tickets or accidents. A common tactic for getting lower rates is to raise insurance limits or to look for a plan with higher deductibles. As a policy's deductible is the amount of money that the driver must cover before money is paid out in an auto insurance claim, high deductibles lead to lower car insurance rates. However, raising the car insurance deductible on a policy is not always a safe move.

The problem with a high car insurance deductible is it limits the value of coverage. If a driver has a $1,000 collision deductible, he or she will have to cover $1,000 of the damages to a vehicle after an accident. Many insurance companies also have separate deductibles for different types of coverage. An accident could end up costing a driver a large amount of money if every deductible is set high, and in some cases, this can mean that the driver's insurance policy is close to worthless, even if the driver has an extremely high coverage limit. While raising deductibles can lower insurance costs, there are much better ways to find cheap car insurance premiums.

One of the most effective ways to cut down on costs is to compare insurance coverage options and to switch to another insurer. As insurance companies use very different techniques when evaluating drivers, rates can vary from one company to the next. Drivers can often save a 30% or more off of the monthly cost of their insurance policies by simply looking for car insurance quotes online and comparing coverage options. Dozens of insurance companies offer an easy way to find quotes online, and there are special car insurance comparison websites that can effectively show drivers their best options in a matter of minutes.

Other ways to avoid a high car insurance deductible include insurance discounts, which are usually easy to find. Discounts can seriously decrease the overall cost of a policy and most car insurance companies offer dozens of discounts, although some states restrict the types of discounts that insurance companies can offer. Drivers can also decrease their risks, which will lead to a much less expensive car insurance policy. Driving a relatively safe vehicle can make a big difference. Drivers can also take state-sponsored driving courses to stop traffic tickets from affecting their records, which will stop rates from rising after a violation. In any case, raising deductibles or coverage limits should only be considered as a last resort, as it's one of the riskiest ways to get cheap car insurance.