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The cheapest car insurance should still be adequate

Author: Ashley Peter
by Ashley Peter
Posted: Nov 03, 2013

We all want to get the things we need at an affordable price. No matter how much you earn, getting something cheaper is always pleasant, especially if it’s something you’re not very eager to buy. Car insurance is definitely one of these things, as there are many people who even choose to break the law and go off without it just not to pay anything for it. And even if you’re a law-abiding car owner, insurance can really get on your nerves when you are charged with a substantial yearly premium that you are obliged to meet in order to drive your car legally in most states of the US. So what are the options for staying within the boundaries of the law without paying too much for insurance?

Getting the cheapest car insurance isn’t that hard

As strange as it may sound, getting the cheapest car insurance isn’t such a big of a challenge like most car insurance buyers tend to think. There are different ways for lowering your premiums, and one of them is buying as little coverage as possible. It’s an obvious fact that the cost of insurance is directly affected by the coverage limits and options you’ve chosen with the policy. So the less you buy the less you have to pay. Of course, the amount of coverage isn’t the only factor affecting your rates, but it’s certainly an important one. Besides getting less coverage, you can also try switching to a less expensive car, looking for discounts and shopping around. In ideal circumstances combining all of these approaches is the best way to get the cheapest car insurance you can get in the market. But is it really worth it?

Getting too little coverage is dangerous

Just think for a moment, what is the average insurance claim payout in case of an average accident? Say, there are two cars with serious body damage, but nothing beyond repair, and there’s a single person moderately injured. A rough estimate would result in a four-five digit figure depending on local repair and medical costs. So what happens if you get the cheapest insurance with the least coverage possible? You will typically end up paying the entire difference between the coverage limit provided by the policy and the actual bills, which can actually be the bigger part of the bill. So, as a result you’re paying both the premium and the excess liability, which is certainly more expensive than paying a bit extra for a car insurance policy with higher coverage limits. Does this mean that getting the cheapest car insurance out there has no practical sense? Well, not quite.

Cheap should also be relevant

Of course, the first thing we pay attention to when buying something is the price. And it’s much easier to shop around for things like insurance judging only by how much it will cost you. However, that’s not the smartest way to shop for car insurance, since there’s way more to it than just the price. First of all, the policy has to be relevant to your needs and able to protect you fully in specific situations you feel are the most likely to take place on the road with you. The most obvious reason to have car insurance is the potential car crash, but there are many other situations when insurance coverage can also be applied. And the choice of the respective coverage options and limits is what makes a policy relevant or irrelevant to your needs. Quite obviously, when looking for the cheapest car insurance policy out there making the right choice becomes even a harder task to fulfill. But not an impossible one.

Get smart to make the right choices

Making the right choices when looking for a relevant and affordable car insurance policy always depends on how well educated you are in the field of insurance. Of course, becoming an insurance expert is not a part of the plan (though, it may be a good choice of career for some readers) but becoming insurance-savvy is a must for being able to pick both affordable and relevant insurance policies. This means that you will have to spend some time reading various articles online and researching the questions you feel are important. But as a result finding the cheapest car insurancewon’t be an impossible task for you and you will be able to save a lot of money while still having an adequate policy on your hands.

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Author: Ashley Peter

Ashley Peter

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United States

Member since: Oct 12, 2013
Total live articles: 2

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