Auto insurance is a must if you're going to be driving on the roads. Without it, not only are you putting yourself in financial danger, but you're also putting yourself in legal danger. It's not uncommon for someone to go through a financial hardship and the first thing that they sacrifice is the auto insurance that protects them — don't do this. Here, you'll find a few things that you can do to decrease the cost of your auto insurance policy at least until you get back on your financial feet again.
Increase the Deductibles
Before you drop all coverage, contact your agent and discuss raising the deductibles to the maximum allowed. If you have an auto loan on the car, chances are pretty good that you'll have to maintain collision, comprehensive, and liability coverage on the car. However, if you're not driving the car and the car will be parked for a while, you may be able to drop the liability coverage until the car is repaired and back on the road.
Before you increase the deductibles, contact your lender to find out what the maximum deductibles are allowed to be on the vehicle. There will be limits to follow to maintain the contract that you've agreed to when you took out the loan.
Drop the Extras
Do you know what extra coverages you have on your policy? Some policies start you off with towing, roadside assistance, and car rental coverage. These coverages don't cost very much, but when every cent matters, you might be able to drop them and decrease the cost of your premiums. Usually, it'll only save you about $5 or $10 a month, but it does add up by the end of the year.
Get Quotes from Competitors
Another option at this point is to get insurance quotes from competitors. Not every insurance company charges the same amount for coverage through them. If you don't like what you're paying now or aren't able to pay it, consider calling around to get quotes on the same level of policy — just make sure that you're comparing the same policies and that you aren't going to be left unprotected entirely when you need it.
Things will get easier — they have to. Just take this one step at a time and eventually, things will begin to settle and fall into place and your life will return to what it should be. Hopefully, the above tips will help you pinch the pennies that you need to get through.
Share15 October 2019
I have always been someone who loves to work hard for what they have, which is why I started paying attention to how I was protecting my investments. I realized that although I had great medical and dental insurance, my car needed a little extra protection. I started working hard to find an insurance policy that would work well for my needs, and before I knew it, I was able to sign up for a new policy. This blog is all about choosing a car insurance policy that works well for you and your family, so that you don't have to worry about falling short.