November 21, 2011

Managing Your Deductible When Buying Auto Insurance Online

Auto insurance online can save individuals a lot of money since it gives you the opportunity to compare rates and shop for the most affordable policy. You need to manage your deductible so that you don't pay too much. A high deductible can save you money, but it might not be the most effective way for you to lower your premium. There are several things that you will need to complete for any quote for auto insurance online. You will need to provide the year, make and model of your car. You will also need your birth date so the system can determine your age as well as your zip code for geographic purposes.

Once the quote factors all of this in, you can start telling the system exactly what type of coverage you want. The system will know your state minimums for liability, but the rest is up to you - including calculating the deductible. Your deductible is one of the most important factors to buying your auto insurance over the internet. This is the money that you will need to pay if your car is involved in an accident. The insurance company won't pay anything towards the repairs until you've satisfied the deductible. A high deductible can seem like a great idea because it will lower your monthly premium. When you get quotes online, you can continuously adjust the deductible higher and higher until you see the premium price fall in line with what you can afford.

If you get into an accident, this money needs to come out of your own pocket. If you've been involved in accidents frequently, you may not want to put the deductible so high that you can't come up with the money. Paying a low monthly payment is great, but if you can't afford to have your car repaired, it's not really saving you all that much money.

Getting your car back on the road is one of the most important things. If you don't have your car in commission, you're still paying your auto insurance. Don't let the deductible trick you into getting the very cheapest policy premium if you can't actually afford the deductible.

Spend the time doing some comparison shopping so that you can get a manageable deductible. This way you can buy auto insurance online without wasting your money. When you take the time to think about the deductible, you will ensure that you have a way of paying that amount of money should your car ever get involved in an accident. It may take a little more time, but that knowledge can be a money saver.