If im a broke college student with $200 car payment is it good or bad idea to also pay for car insurance?

by ray on May 27, 2009

im am a broke college student, with a monthly car payment of $200, my insurance cost monthly $240. So each month i pay about $450 for a car plus full coverage, with a deductible of $500. I have found that if i choose a deductible of $1000 or more i can save over 100 dollars a month on auto insurance, is this a good or bad idea?

You need to make sure that you can pay $1000 in case of a car accident. If you can save $100 dollars per month you just need to 5 months without any incident to break even. After that time you will be saving money.

Just make sure that you set aside $1000 dollars to pay your deductible in case of an accident.

Be sure to also ask your company for additional student discounts and compare quotes from different companies.

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