# Cheap Car Insurance Quotes: Deductibles Evaluation Method Can Be of Help

Everyone knows that every driver must have minimum coverage. However, most drivers don’t realize how much they spend on insurance. Drivers must pay attention to the rising cost of insurance premiums in order to find affordable options.

This article will discuss the best way to save money on car insurance. This is dependent on the deductible you choose.

The deductible is the amount you pay each month in addition to your monthly premium fees in the event that there is an accident or a claim against your policy. Many people are unaware of the relationship between deductibles, monthly premiums, and other costs. Understanding this relationship will help you make the best decision about which car insurance to purchase.

The deductible costs range from \$250 to \$1000 in most cases. The deductibles that are lower cost tend to be more expensive than the deductibles with higher limits. You can show this by using a simple calculation (which is what I’m going do) that uses the insurance quotes you have from your insurer. Let’s say, for example, that the quotes are these:

1. \$200 per month with a \$250 deductible

2. \$150 per month with a \$500 deductible

3. \$100 per month with a deductible \$700

4. \$60 per month, a \$900 deductible

The monthly premiums for quotes with higher deductibles are lower, as you can see from the above quotes. This is because insurance companies with lower deductibles are required to take on more financial risk in the event that an accident occurs. However, they will be less responsible for higher deductibles. Let’s say that A and B are registered with the same insurance company who owns the above quotes. Let’s say A chose the first option while B selected the last option. Both policies are 6 months. If there is an accident during these six months, the total cost of both policies will be as follows:

Total cost = [(Monthly Premium) x (Term Of Policy)] + Deductible.

Then;

The total cost of A’s services = [\$200×6] + \$350 = \$1.450

The total cost of B is [\$60 x 6,] + \$900 = \$1.240.

It may not sound appealing enough. These quotes aren’t typical of any insurance company, but were randomly chosen from my mind. The general idea is that insurance quotes with a higher deductible usually have a lower total cost. However, suppose that there is no accident during the 6 month period. This is because the chances of an accident occurring in the United States are very low. They can vary between 2% to 5% depending on the state. In this instance, the total cost will be:

Total cost = (Monthly premium) x (Terme of policy).

The total cost of;

A = \$200 x 6, = \$1,200

B = \$60 x 6 = 360