Owning a car today can be extremely expensive, far beyond the actual cost of the vehicle. In addition to the monthly car payment, the expense of gas, oil,

tires, tolls and of course insurance can really put a dent in many family budgets. While it’s not possible to escape all of the monthly costs of owning a car, here are some great tips on reducing your insurance expense for people who find themselves on a tight budget.

Liability Coverage Only

Many auto insurance companies allow you to carry what is known as liability only coverage on your car. This type of policy will cover you for any bodily injury caused in an accident to people outside of your vehicle, as well as their property. Unlike full coverage, that will also pay for damage to your car and

injuries to its passengers, a liability only policy essentially leaves you uninsured for the costs involved in repairing your own vehicle. Having liability only coverage on your car will save you quite a bit of money each year and as long as you are comfortable paying out of pocket for damage to your car should an accident occur, this kind of policy might be a great option.

State Minimum Policy– A Cost Saving Idea

One option that most insurance companies offer that can save a lot of money is to have a policy with just enough coverage to meet what is required by law. In Illinois, the state requires all drivers to have the following levels of coverage:

• $25,000 – injury or death of one person in an accident
• $50,000 – injury or death of more than one person in an accident
• $20,000 – damage to property of another person

Many motorists are completely comfortable with this kind of policy. While state minimum requirement coverage can certainly save you money on your insurance bill, it’s very important to keep in mind that injured parties may try to go after other assets as a way to additionally compensate them for damages done in an accident. If you own a home or have other valuable possessions, this kind of policy may not be the right one for you. When talking to your agent, be sure to give them the full picture of your financial situation.

Flexible Payment Options

Most people who live on a tight budget are unable to pay upfront for the full year’s cost of their car insurance. Looking for an insurance company who can offer you flexible payment terms can be a real help in making monthly expenditures more reasonable. Many auto carriers offer options when it comes to  your premium, such as paying every 6 months, quarterly or even monthly. You might pay a little bit more for the option of monthly installments, but the peace of mind that it offers you will be well worth it. Talk to your insurance agent to see what payment options are available under your policy. Changing your terms might give you some much needed breathing room in your budget.

Safe Driving Can Save Big Dollars

Are you a safe driver? Do you always obey the speed limit and do a good job of following the rules of the road? If you haven’t had any tickets or accidents for a number of years, you might be eligible for a safe driving discount that many insurance carriers offer. The cost of auto insurance is all based on risk – a calculation of the likelihood of your having an accident. If the insurance company can see that you have a consistently safe driving record, they should be able to offer you a discount off of the premium that they normally charge. Check with your agent to see what they can do to lower your monthly costs given your stellar driving habits.

Contact Insure on the Spot today for Savings

For people on a tight monthly budget, it’s not always easy to make ends meet. While most of us can’t be without our cars, it’s difficult to keep up with the expense of owning a vehicle. By doing a bit of research, there are some great ways to change your auto insurance or to reduce the cost. For more information or for a free auto insurance quote in the Chicagoland area, visit Insure on the Spot today. We can help keep your wallet happy 🙂 !