When you purchase auto insurance, you want to get the best value for your money. You want to get the coverage that fits nicely in your budget, but also protects you while you are on the road. One way to get the best coverage for an affordable price is to leverage deductibles.

With any insurance contract, you are a partner with your insurance company. As such, you are responsible for paying a portion of your insurance policy. Beyond your premiums, your deductible is the portion of your insurance you pay before your insurance company will help you cover your remaining liability. In essence, it’s a threshold. Once you’ve reached your insurance threshold, your insurance helps offset the costs you incur.

Insurance companies offer a number of different options for deductibles. Typically, auto insurance companies give you the option of choosing between deductibles of $250, $500, $1,000 and $1,500. With each deductible option, you are agreeing to pay the deductible if you experience a loss. With a financial commitment to your insurance company, it’s important that you choose a deductible that fits your lifestyle.

Another important aspect of your deductible is the fact that it directly affects your monthly premium for auto insurance. If you choose a smaller deductible, then your monthly premium will typically be higher than the same insurance coverage with a $1,000 deductible. So, how do you get lower car insurance? You purchase the insurance coverage you need, but you choose a higher deductible.

If you are like most people, you may be a little hesitant to purchase an insurance policy with a $1,000 deductible because you have to pay your deductible before you could get your car fixed after being involved in a wreck. Not everyone has a thousand dollars in their savings, so having a plan is essential to ensuring that you get lower insurance premiums.

When you consider the fact that the average driver makes a claim on their auto insurance about every 18 years, then you realize you have time to save your deductible. Additionally, you can keep your deductible in a savings account or a money market account for years until you need it.

You don’t have to settle for a higher insurance premium, even if you have a bad driving record. By choosing a higher insurance deductible, you can lower your insurance cost.