There is a lot of advice on how to get cheaper car insurance like reducing your insurance coverage, not adding an inexperience driver to the list of named drivers in the policy, adding to your deductible and or giving up some of the coverages provided by a car insurance policy. All these kinds of recommendations are not to your advantage nor will you be able to benefit fully from these kinds of cheap car insurance policies. The whole point of having insurance is for you to be secured and to recover the correct amount for the loss.
If you will omit the name of the inexperienced driver from the insurance policy that is not good as the fact is, the risk of the car being damage and having an insurance claim is higher when the person who is driving is a newbie. What you would have done was throw away the premium payments that you have made and losing the chance to make a claim in case the inexperienced driver is involved in an accident. The deductible or what is known as your participation amount in case of an claim might be high and if you will look at it closely and study it, this is the amount you have to pay in case of an accident which when you add it to the premium, you might have been able to save money by not getting the car insured anyway as you would have to shell out the a large amount if your deductible was high. Always keep in mind that the amount of the deductible might be so high that all minor damages would have to be paid by you.
An understanding of car insurance terms might be helpful but if you don’t have the time to study these things, always ask the insurance agent who is offering you cheap car insurance, “Aside from the money I save, how will agreeing to this clause benefit me?” Being fully covered is a better option than scrimping on your insurance premium than regretting the savings you had made when paying car insurance premium as when you do get a claim, you will not get enough money to pay for the actual losses.
There are 3 things that you would have to look at when you are getting cheap car insurance:
The first thing is the rate that is used to compute the premium amount. The taxes may vary but these are standard and there is no haggling that can be done. Car insurance rates are different for the various insurance companies and if you own a collectible car, you may even get to avail of a very low car insurance rate by being issued special collectible car insurance.
The second thing would be the deductible. If the premium payments go up but the deductible gets lower, you might be at an advantage when you have to file for a claim. Keep in mind that you will be paying for the deductible anyway if an accident happens so it might not be worth the savings.
The third thing to look at is the policy term. How long will the policy coverage last? If you are planning to sell the car, you might want to take out short term car insurance which will make it cheaper for you. You can get cheap car insurance on monthly terms or for short term and the flexibility of these cheap car insurance options can help you save money and allow you to make staggered payments on your car insurance.
If you have more than five cars, try to ask the insurance agency for group policy insurance so that you can be able to avail of a discount. Always bear in mind that insurance is supposed to help you recover your losses and you have to understand what the actual coverage is and what your benefits are from the policy that will be issued before paying for premium for a cheap car insurance policy.