Everyone goes through periods of financial strain. As a consequence, one of your bills may have to take a back seat. But your auto insurance is not one of those things that can be set aside even temporarily because most companies will cancel a policy if the payment is late. If your auto insurance has become suddenly unaffordable, follow these simple tips to get it down to a comfortable amount.
Ask for a Discount
There's no way of knowing whether your company offers discounts if you don't ask. These types of perks are sometimes hidden in the fine print, but you could drop your monthly premium if one or all of the following applies to you:
Investigate a Group Policy
Your employer may offer a group insurance policy which has a lower premium. If not, ask your insurance provider if they offer discounts through other affiliations, associations, or an alumni group you may be a member of.
Carpool
A lot of insurance companies offer cheaper rates to those who don't drive their vehicle as much as the average person. If you can carpool to work with someone and keep your annual mileage down, that could get you a lower rate.
Drop Comprehensive and Collision
If you have an older car that isn't worth much, you might want to consider dropping your comprehensive and collision coverage.
Comprehensive covers damage that occurs from non-accidents, such as trees falling on the car, floods, and damage from theft. Collision covers damage from accidents. But most policies won't pay out more than the car is worth, making it less valuable to those with old cars.
While most insurance companies recommend carrying collision and comprehensive, even though it isn't legally mandated for those who own their cars outright, it will reduce your premiums. And if it's the only way you can afford to pay your bill, it's something to think about, even if it's just a temporary measure until you get back on your feet.
Trade Your Car
If it doesn't look like your financial outlook will improve in the near future, it may be time to examine how much of your premium is due to the type of car you drive.
Some of the cars that are cheaper to insure include those with exceptional safety features, minivans, and Jeeps. And those that top the list of the most expensive include pricey luxury vehicles that are costly to repair.
While it may be a tough decision, trading in your vehicle for one that has a more affordable rate can keep you from losing your auto insurance due to an inability to pay.