Virtually every state requires minimum car insurance coverage 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. Basic state required coverage is reasonably priced in most states but you may not be free to choose if you have an auto loan. When you have an outstanding car loan, you are probably required to buy comprehensive and collision along with liability coverage. Otherwise, your lender may force insure your car and add the costs onto your loan payments.
Remember that keeping your auto insured is crucial for both legal compliance and financial protection in case of accidents or other unforeseen events. If you’re unable to afford auto insurance premiums, it’s important to explore possible solutions that can help you address the situation promptly. Here are a few suggestions to consider as to what to do to lower your premium if you cannot afford car insurance;
- Take a closer look at your expenses to identify areas where you can potentially reduce spending or reallocate funds towards automobile insurance. Prioritize essential expenses and cut back on non-essential spending.
- Pay as you drive policies with monitoring devices can be a cheap solution, especially for young, inexperienced and high risk drivers. These policies are based on driving history gathered by a little device that is fitted in the car. They also monitor your mileage so driving only when you have to can reduce costs.
- Even if you don’t choose policies that require a monitoring device, you may still find out roughly how many miles a year you travel and see if you can qualify for a lower mileage discount. Usually, you can save if it is less than 7,500 miles a year. Companies like State Farm may offer discounts for low mileage on condition that you submit regular odometer readings.
- Assess your current coverage to see if there are any adjustments you can make to lower your vehicle insurance premium. For example, you might consider raising your deductible, reducing coverage levels, or removing optional extras. However, it’s important to carefully evaluate the potential risks and consequences before making any changes.
- Look into low-cost 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 offers them or ask the state department.
- Find out why your automobile insurance is high. 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 costs. For example, you may be able to exclude a high-risk driver from your policy that could reduce the premium.
- Consider spreading the costs with installments. Most companies have installment plans that can help you manage payments over time. Monthly automobile insurance payment plans with low initial down payment can get you covered and make it easier to pay the costs.
- If you already have a policy 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 it. This would avoid a lapse in coverage that could further increase the quotes when you need to re-insure after a cancellation.
- Shop around for the cheapest rates. Get multiple car insurance quotes and compare prices. Often people are discouraged when the first quote they get is expensive but they may find better quotes if they persist. Also, they should contact agents, explain their situation and see if agents can help them find affordable vehicle insurance.
- If the cost of insuring your automobile remains unmanageable, it might be worth exploring alternative transportation options. Public transportation, carpooling, biking, walking or even remote working could be viable alternatives, depending on your location and circumstances.
Driving without car insurance is illegal in nearly all jurisdictions and can result in severe consequences, such as fines, license suspension, or even legal trouble in the event of an accident. Besides, you will have to pay for damages and injuries out of pocket if you are at-fault in an accident. Prioritizing auto insurance as a necessary expense for your financial security and compliance with the law is highly recommended.