Every car owner is required to have car insurance. It isn’t an option so for most people it is important to find the right policy that is meeting their needs when it comes to coverage but also works for their budget. There are many pros and cons to consider but the main thing people look at are the deductible and premium amounts. It is very important to make sure you have the right deductible in your car insurance policy so you know you are covered in the event of an accident, but it is also important you can afford it. Below are some things to consider when choosing your car insurance policy.
You have to look at your current situation. This means your driving record and history as well as your wallet. If you haven’t been in many accidents and don’t live in an area where you commonly get knicked or bumped, then it may be best to take the risk with a high deductible. If you are one who often gets into fender benders or hits neighbors cars than you may want a deductible that is lower because it is most likely you will end up having to pay it. The lower the deductible, the higher the monthly/quarterly/annual premium.
What Funds Do You Have Available
If you are someone who has money saved up or someone who lives paycheck to paycheck. Your policy’s may differ. If you have money to front in the event of an accident or incident, then it is best to have a higher deductible and lower monthly payment. If you are someone who has no savings and has no disposable income to throw at a mechanic bill, than you may want to pay the higher monthly premium. This is when you realize that you must make sure you have the right deductible in your car insurance policy.
What Kind of Car Do You Have
The policy you chose can also be dependent on the type of car you own. If you own a old beat up car, you may not want to have much coverage because the car isn’t even worth that much. However, if you have a brand new car or a leased car, you need to be sure that your coverage is good because you want to keep it nice and replacements will be pricey. The money spent on a policy would be worth it in this case.
Be sure to analyze your situation when shopping for car insurance. These factors discussed above are all important and can save you major money.