When you’re young and broke, it’s easy to want to skimp on things like car insurance. But there are some expenses that could end up costing you big time in the long run.
So if you’re looking to save money in the short term without paying an arm and a leg in the event of an accident, this post is for you.
Here are some tips for getting the right inexpensive coverage, so you don’t end up paying thousands during a car accident.
1. Consider your risk
When you’re a young driver, most insurance companies will automatically consider you as a risk. The reason for this is twofold. First, and most importantly, a young driver is an inexperienced driver. And inexperienced drivers are more likely to have accidents.
But insurance companies are also likely to consider you high-risk without a driving record because they don’t yet know whether you’re a safe driver.
If you have no driving history, look for a company that will allow you to add a device to monitor your driving habits. Root and Progressive are two examples, but more and more companies are doing this. It won’t always save you money immediately, but you can save a good chunk of change once you have some driving history recorded.
And if you’ve already had an accident, you’re going to want to look for an insurance company that focuses on high-risk drivers.
2. Choose the right deductible
You can save money by choosing high-deductible coverage, but the problem comes when you have to pay that deductible.
Think about what will happen if you have a high deductible and can’t pay it. The insurance company won’t pay out until you do, so try to strike the right balance.
Generally speaking, a higher deductible plan works well if you’re able to keep enough money in an emergency fund consistently.
You’ll pay less in the long run by choosing a higher deductible, so it’s a perfect choice if you can manage the deductible.
3. Involve an attorney
You might think that having an attorney would cost you more in this case, but the reverse is actually true. Auto accident lawyers typically get paid from the insurance company’s settlement, so nothing comes out of your pocket.
And, they are experienced in dealing with car insurance companies. So they can help ensure the insurance company pays for everything they are liable for after the accident.
You might think that the insurance company works for you, but if you get into a serious accident, you’ll soon find that this simply isn’t the case.
Insurance companies are for-profit businesses, which means they are looking to keep costs down and profits up. And that means paying out as little money as possible.
This is why a car insurance attorney is not only helpful but necessary in cases where there is personal injury or considerable property damage.
You could easily end up spending thousands more without an attorney, regardless of coverage.
No one wants to plan for the worst, but it’s important to be prepared in the event that the worst happens. Follow these tips to help ensure that a car accident won’t leave you bankrupt.