Today, people are heavily dependent on their automobiles to go to work, take kids to school and get around for shopping and social life. It may be easier to get around in cities using public transport but it isn’t frequently available in rural areas and small towns. And the premiums can be quite expensive. But there are several things you can do if you can’t afford auto insurance payments.
First of all, State laws require that you must have vehicle insurance before you can drive. Not being able to afford the premium isn’t an acceptable excuse and therefore you cannot drive until you buy insurance. If you do you will be breaking the law and face serious consequences. However, you only need basic liability coverage to comply with the laws. These types of policies are usually cheaper but you are only free to choose if you own your auto outright.
When you have an outstanding car loan you are probably required to buy comprehensive and collision coverage along with the minimum state required liability cover. Otherwise, your lender will force insure your car and add the costs onto your premium when they find out you don’t have coverage. They can do this because it is in your loan agreement and the car is the only security they have for the loan.
What to Do If Auto Insurance Isn’t Affordable
So here the things that can help you find budget vehicle insurance or lower your costs to a manageable level.
- Consider buying liability only coverage. You don’t have to buy full coverage if you don’t have a loan and expensive car. Then, you can consider dropping collision and comprehensive coverage to save money. This can work well if you own a cheap car and your finances will not be ruined if it gets totaled. When you own an expensive automobile you’d better insure it fully.
If you are a young person you will probably have to pay pretty high premium. So, you might want to plan ahead and get yourself an older vehicle for the first couple of years to be able to follow this strategy. Your premium would drop a lot after couple of years of good driving history with no accidents. Then, you can get the car you want.
- Pay as you drive insurance policies with monitoring devices can be a cheap solution, especially for young, inexperienced and high risk drivers. These policies are based on your driving history gathered by a little device that is fitted by the insurer in your car. They are usually cheaper if you are comfortable with monitoring.
- Third option is to increase deductibles as high as you can afford and see if it will reduce your premium enough without dropping collision and comprehensive cover. This would mean that you will have to pay more out of pocket if you ever need to make a claim. Keep that in mind.
- Look into Low Cost Auto Insurance Programs. Some states have special programs to help low income motorists with cheaper policies but they usually have income and other qualification requirements. You can do a quick search to find out if your state offer such policies or ask the state insurance department.
- Find out why your auto insurance is high. Your carrier should answer this question. It may be that your credit score is bad or you have a high-risk driver in the household. See if you can address these issues and lower your costs. For example, your insurer and state may allow you to exclude a high risk driver on your policy that could reduce the premium.
- If an older and more experienced driver will drive your car occasionally, adding such person onto your policy can reduce your costs. Drivers don’t have to live with you to be included in your policy.
- Consider spreading the costs with installments. Most companies have installment plans that can help you manage the premium over time, providing you are creditworthy.
- Lower mileage can reduce your costs. Find out roughly how many miles a year you drive and see if you can qualify for lower mileage discount. Usually you can save if you drive less than 7000 miles a year.
- If you already have insurance and cannot make the next payment, you should talk to your insurer to see if they could give you a little bit more time and don’t cancel your policy. This would avoid a lapse in coverage that could further increase the quotes when you need to re-insure after a cancellation.
- But the best and easiest solution may yet be shopping around. You can save a lot of money by shopping for car insurance especially if you live in a high premium neighborhood. Click on the link and find out how much people save in your state on average by just getting a few more quotes.
You must do everything you can before giving up or worse taking a chance driving without insurance. Hopefully you will find a good solution even if it means looking hard and long. Perhaps our quote form above can help you line up a few quotes to compare.