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Car insurance is mandatory in most states, so it’s usually illegal to drive without coverage. If you can’t afford car insurance, it’s best not to drive until you have the money to purchase coverage. Here are some ways you can reduce the cost of car insurance.
Change Coverage Limits and Deductibles
If you’re worried about the price of your auto policy, you should be extra careful that you aren’t paying for more coverage than you need. When you purchase car insurance, you get to choose your coverage limits for liability coverage and uninsured motorist coverage. This is the max amount your policy will pay you out in any claim.
If you have high coverage limits, your car insurance will be more expensive. Therefore, it’s best to determine exactly how much coverage you need, then adjust your coverage limits based on that. This will save you significant money over time.
Though, keep in mind that lower coverage limits can leave you liable for any expenses that exceed your limit. This is a riskier strategy to take, but it beats having no insurance. Talk to an insurance agent to find out how much coverage you need based on how much driving you do. They’ll help you ensure that you have the minimum necessary coverage.
Usage-based Car Insurance
If all of the quotes you are getting for car insurance are excessively high, consider usage-based car insurance. These plans are great for people who get quoted high due to poor credit scores or vicinity to a large city.
A usage-based car insurance policy is a type of car insurance that decides premium prices based on your driving habits. This often results in cheaper premiums if you drive safely or don’t drive often.
Drive a Cheaper Car
If you drive a car that is expensive to insure, it may make sense to trade it in for a cheaper one. Better yet, if you haven’t bought a car yet, make sure to check the price of insurance before making any purchase. When calculating the cost of the car, be sure to include monthly insurance premiums.
State-Subsidized Car Insurance
Some states offer state-subsidized car insurance programs. If you live somewhere like California or New Jersey, you can get help accessing affordable car insurance. This insurance will allow you to drive legally. In order to qualify for these programs, you must meet certain requirements. These requirements vary from state to state. In some cases, you must be below a certain income level or enrolled in Medicaid.
Get Insured
Don’t drive without insurance. The legal risk is bad, but the financial risk is equally troublesome. Get insured today by calling Insured For Life. You can reach us at 888-989-0079.
