How Do You Choose The Best Low Cost Car Insurance?

By Sharon Gibson Posted in Car Insurance News

Car insurance can be an especially costly asset, but going without it can be even worse. The best low cost insurance is not necessarily the lowest premium, but the lowest cost over all.

The first place to look in a policy is the covered individuals. The lowest cost car insurance covers only the other driver, so safe drivers without health insurance aren’t put in bad situations by unsafe drivers. Beyond that, each covered individual will cost more. Choosing the best low cost car insurance in this area means determining who will be driving the car and how often. Some companies offer lower rates for drivers who are not behind the wheel very often.

How Much Should My Deductible Be

High deductibles mean low premiums. Though some companies waive deductibles for safe drivers, this is not always the case. The deductible is how much must be paid by the driver before the insurer begins to pay. When choosing a deductible, consider how much you will be willing to pay if anything were to happen and how much work on your car might cost. Something as simple as a bumper replacement can cost $500 or more on certain cars.

The frequency of deductible will also affect premiums. If the deductible is annual, there is a greater chance it will be used each term, increasing the cost of insurance. If the deductible is per incident, this reduces the cost to the insurer and the cost of premiums as a result.

Exclusions And Limitations

Anything that reduces the chance of cost to an insurer reduces the cost of insurance. If the insurance is valid on a limited set of cars or areas, or it is invalid under certain conditions, this will reduce the cost. In the end: insure what needs to be insured, as over-insurance will not pay out!

What Needs To Be Insured

The last consideration is what is actually insured. Over-insuring a car for more than its worth will not result in a profit. Instead, it can result in reduced payout and even fraud charges. In the end, the lowest cost car insurance is the one that insures exactly what you need insured, no more and no less. Saving a few hundred dollars a year will not be worth it after you pay fully for the first fender bender.

Related posts:

  1. What Is Third Party Car Insurance?
  2. How Do I Evaluate Multiple Zero Deductible Car Or Auto Insurance Quotes?
  3. How Do I Determine What Is The Best Car Insurance Price Quote?
  4. What Is A Car Insurance Deductible?
  5. How Old Do You Have To Be To Purchase Auto Insurance?

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