It’s pretty much common knowledge that everybody who drives needs to have car insurance. It’s also understandable with how often people get into car accidents. If you don’t have car insurance, then you’ll be forced to pay out-of-pocket if something happens. Depending on what happened, that could mean having to pay a small amount, or a huge amount. Many people don’t have a ton of money sitting aside to cover a large car accident. Even if you have an emergency fund, it still might not be enough to cover all the potential expenses. So in short, if you drive…car insurance is a must have.

I don’t know a lot about car insurance, so far I’ve only posted 1 tip for saving on your car insurance. So, I thought I’d throw out another tip to help you move closer to having cheap car insurance. This might seem like common knowledge, but I’ll share it anyway for the people who haven’t already heard it.

One of the easiest ways to lower your car insurance premiums is to increase your deductible. The lower your deductible is, the higher your rates will be and vice versa. Sure if something does happen, you’ll have to pay a higher deductible than before. On the flip side, if nothing happens, you’ll be pocketing that extra money you would have been paying on your premiums.

Is this the best course for everybody? Definitely not. If you file claims often, you’re probably safer paying for the lower deductible. For people like me, who’ve never had any kind of accident—it just makes sense. It all comes down to what you’re comfortable doing, if knowing that if something happened you wouldn’t have to pay much helps you sleep at night, then maybe that’s the way to go. One option to help cover the higher deductible would be to put the money you are saving into a separate account just for paying your deductible.

Image Credit: http://www.flickr.com/photos/jasoneppink/2895885518/