Good or Bad Idea about car insurance: I am a broke college student with a $200 car payment a month.........?

Question

I am a broke college student with a $200 a month car payment. My monthly insurance is $240. So every month I am paying almost $450 for a car plus full coverage.And that is with a deductible of $500. NOW....i found online that if a pick a deductible of $1,000 or higher I can save over a hundred dollars a month on car insurance. Is this a good or bad idea????????

Answer 1

As long as you're prepared to fork over $1000 when you are in an accident, its a good idea.  If you can save $100 per month, you just have to go for five months without an accident and you'll break even.  Go longer without an accident, and you're saving money.

BE SURE that you have $1000 to pay for your deductible, though, if you get in an accident.

Answer 2

You are paying to much.

Try this one instead - http://carinsurance.enacre.net - I personally have their car insurance, cause it is the cheapest for my family in our area.

As I know they have lowest rates for young drivers.

Answer 3

Yes, your premium will be lower if you choose a higher deductible.  You have to decide whether to take the risk of a higher deductible in return for the premium saving.  Since your car is financed, make sure you check your lender's insurance requirements first.

Answer 4

the best idea for you would be to buy a $600 car for cash then you would be NOT a  broke college student  with a $200 car payment a month

Answer 5

I would say if you have $1,000 that you COULD spend if you do get in an accident than have the lower deductible if you don't than you need to keep your insurance,  as soon as you get rid of it you will be in an accident,  "murphys law"

If you can't afford $1,000 out of your pocket at this current time then keep the higher payment

Answer 6

This may not be a good move. If you are strapped for cash now how do you plan on paying out of pocket a $1,000 to get your car fixed if you are in an accident?

A better alternative or at least something I would try first is comparison shopping.  Rates can vary hundreds of dollars per year from one company to the next.  By spending a half hour on the computer filling out 5 or 6 free quote requests you can easily request quotes from hundreds of companies.

There are many free quoting services available that make it easy to get quotes.  One of the better ones is http://www.InsuranceEasy.org they provide multiple links to free quoting services and links direct to companies that will provide you quotes.

It will only take you about 30 or 40 mins to request quotes through each of their links. If you can't find a better rate then as a last resort I would consider increasing the deductible.

Answer 7

Here are two pieces of advice.

First, you better check those numbers again. I have worked in the insurance industry for many years and I can tell you that I've never seen a $500 shift in deductible translate to a $100 savings per month. It is typically around $10 per month which translates to $120 per YEAR.

Second, car payments like that will blow your chances of financial success. Watch this video, follow the advice and succeed. Then you can drive whatever you want! :-)