How to Buy Cheap Car Insurance That Works

Being able to buy cheap car insurance helps a motorist save money. Inexpensive auto insurance should provide you with the general protection and coverage that you would expect with a higher premium insurance policy. The following steps are a “how-to” guide for buying affordable car insurance that protects you in the case of an emergency.

Step 1: Choose a High Deductible

Like health insurance based on a high deductible, which uses a side account to meet medical expenses such as a health savings accounts or HSA, you can set the level of deductible for your car insurance higher in order to reduce the premium cost. A deductible of $5,000 to $10,000 will result in insurance premiums that are much lower than a comparable policy with a lower deductible.

In order to meet the expense of the deductible, you can put the deductible amount in an interest-bearing account. The account will be taxed, but can provide you a small savings that will earn interest.

Step 2: Seek a Plan with Discounts and Benefits

With the high deductible, purchase a policy that provides benefits for good drivers and other incentives that work to lower your premium or deductible over time. These benefits and discounts work to reward good driving habits such as wearing a seat belt, not accumulating moving violations such as speeding and avoiding accidents.

Take advantage of an insurance plan that also gives you driver’s forgiveness as well. Even with a high deductible,an accident can remove all benefits. Forgiveness programs help alleviate the cost, even with accidents, in the long run.

Step 3: Review Policy and Ask for Periodic Ratings

After choosing the policy plan that has a high deductible, meet the agent every 6 to 12 months to review your driving history and request the policy be reviewed periodically. This proactive step will demonstrate to the insurance company the importance you place on the relationship and the responsibilities you assumed in order to hold down costs and reduce risk.

Work with a reputable and top rated insurance company to develop an auto insurance plan that meets your needs. These needs include low cost, good protection and the benefit of lowering your costs down the road based on a good driving record and the reduction or elimination of claims. The less liable the insurance company is, the better the coverage will work for you in future reduction and benefits.

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