What to Do if You Can’t Afford To Pay Your Car Insurance
From choosing basic rates to finding discounts, there are plenty of ways to reduce your car insurance payments if you can’t afford your current premium. Car insurance is an essential part of auto ownership, a necessity required by law in the state of Illinois and most states across the US. The ability to drive and own a car brings freedom and opportunity, but car ownership can also be expensive. Insure on the Spot is here to help you find the best insurance rates and provide advice on staying covered. Avoid cancellation or non-renewal, read on to find out more.
What Will Happen if I Can’t Pay My Premium?
Many people choose to pay their car insurance monthly, as it can be easier to budget for payments. However, missing a single payment is likely to result in your policy being cancelled, meaning you will effectively have lapsed your coverage. If you are caught driving with lapsed car insurance, the severity of punishment may vary. It is likely that you would be fined, resulting in further financial hardship, and you may be suspended from driving. This could also lead to an increase in auto insurance rates in the future.
Therefore, it is best to do all you can to keep up with payments, and minimize payments to make them more affordable.
If you’re unable to afford your current premium, or foresee financial hardship that might mean difficulty paying in the future, avoid lapsing in payments and take a look at our money-saving tips below.
Top Tips for Anyone Who Can’t Pay their Car Insurance Premium
Call Your Provider
Your first call should be to your car insurance provider. Explain your concerns and see what they can do for you. If you have an answer to your financial hardship in sight, for example a new job you’re about to start, your provider may allow you to pay late for a single month, or there may be an agreement you can come to.
Choose Lesser Coverage
Look into what sort of coverage you currently have. There are usually a range of options available, depending on what would be covered should an accident occur. If you’re paying more than the minimum, now may be the time to lessen your coverage. Raising your deductibles is one option that can result in lesser coverage. Ask for the most basic rate and remove any optional coverages to minimize payments.
Change Provider
If your current provider can’t reduce your rate, it may be time to shop around. Look into changing providers if you can get cheaper car insurance elsewhere. Car insurance quotes may vary considerably between providers so it’s worth getting a few quotes if you can’t pay your current premium. If you’re not a current Insure on the Spot customer, we may be able to help. Insure on the Spot compares a network of insurance companies to get you the lowest rate for your vehicle.
Cut Other Expenses
Slightly reducing other living costs can make all the difference. Think about other areas where you can cut costs to continue making your car insurance payments. Choose to take lunch to work rather than buy it out, see if you can reduce your cell phone bill or cut other subscriptions you perhaps don’t need, such as cable. Minor changes can go a long way when money is tight.
Ask About Discounts
Many insurance providers offer customer discounts, for example you may get a discount for being a good driver, a low risk driver, for taking a defensive driving course, or combining auto and renters insurance.
For Future Drivers
Choose a Car You Can Afford to Insure
If you’re a new driver and unsure how affordable car ownership will be for you, choose a car that will be inexpensive to insure. Size of engine, size and age of car, driving history, habits and experience can all impact the cost of car insurance. Choose a car with a smaller engine and drive safely to benefit from cheaper auto insurance rates.
Budget
Before you buy a car, create a budget that includes car payments, cost of gas, and cost of insurance. Look into whether you can afford to buy an older car outright, or if you are getting a car loan, minimize unnecessary accessories or optional features to reduce payments. When choosing a car, pick one that will require insurance you know you won’t struggle to pay.
Seek Advice from Our Team
If you’re struggling to pay your car insurance, whether you’re insured by Insure on the Spot or another provider, get in touch with our Chicago car insurance team today to see how we can help. Our customers save an average of $300, and our rates are as low as $35 per month – we may have the answer to more affordable car ownership for you.