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Step 1
Determine the amount of deductible you want. Deductibles start at $100 and go up. Remember that when your car is damaged either from an accident, parking or vandalism, you have to pay the deductible amount while your insurance company picks up the rest. For example, if you had $1,000 worth of damage to your car and you had $250 deductible, you would have to pay $250 then your insurance company would pay $750.
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Step 2
Select a higher deductible but one that you can afford. Many insurance companies suggest a higher deductible, which makes for cheaper premiums. In most cases premiums are reduced by 10 to 20 percent.
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Step 3
Calculate the best deductible for you by using this simple approach. Determine what is the amount of cash you have available through a savings account, what amount of credit you have available, how much money you have left over after you pay the bills and what the current cash value of your car is. If you answer any or all of these questions $500 and under you should choose a lower deductible. If you have any or all of the amounts on the high side, then you can afford a higher deductible.
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Step 4
Get several quotes with various amounts, and see which one works best for you.
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Step 5
Calculate the deductible you can afford by going to insurance companies that will assist you in determining the deductible. Some ask a series of questions and allow you to ask questions. You can talk with an insurance agent who specializes in auto insurance, but be careful because some of them will charge you for a quote--especially if you do not choose their insurance company.
