June 22nd, 2010
Most people who visit CoverHound are looking to save money. Makes sense – car insurance is one of life's biggest expenses and if you drive a car the law requires you to have it. At CoverHound though, we believe that what's most important isn't just finding the cheapest car insurance policy but finding the cheapest car insurance policy that bests meets your needs and offers the financial protection that you need.
The first step in finding the finding the cheapest car insurance that meets your needs is to determine what your needs are. Here are some important questions to ask:
- - How much would it cost to replace your car if you totaled it in an accident? Could you afford that today? This will help determine whether to buy comprehensive coverage.
- - If you got in a minor “fender-bender” what's the most that you could pay out-of-pocket to fix your car without causing any strain on your finances? - This will help determine your deductibles.
- - What are your total assets (cash, stocks, your home, etc.) that would be at risk it you caused a major accident? - If you were to cause a fatal accident a court could come after everything that you have if it determines that you owe the victims more than your insurance covers. So the more you're worth, the more coverage you'll want.
There are a lot more important things to consider when trying to find the cheapest car insurance policy that still leaves you with a good level of financial protection and it's always a good idea to speak with a car insurance professional (either over the phone or in person) to discuss your individual needs. All of CoverHound's partners can help you find the cheapest car insurance that meets your needs.
If paying $500 out of pocket to fix your car in the event that you cause a minor accident wouldn't put you in a bad financial position then you should set your comprehensive deductible to $500. However, if you want the cheapest car insurance, you could consider raising your car insurance deductible to $1,000 assuming that paying $1,000 wouldn't break the bank. In general, to get the cheapest car insurance it's a good idea to raise your deductible before lowering your limits.
Another thing to keep in mind is that you should always make sure that you're getting all of the discounts that you deserve too. Car insurance companies offer all sorts of discounts from good drivers discounts to discounts for higher education and anti-theft devices. An expensive car insurance policy can get a lot cheaper once discounts are applied.
Finally, it's important to note that finding the cheapest car insurance means shopping around to find the best deal. Some car insurance companies are going to have the cheapest rate for good drivers but be way more expensive than others for high risk drivers or drivers with less experience. Some car insurance companies specialize in insuring older drivers and have the cheapest car insurance for retirees but aren't the most competitive for younger drivers.