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What If You Cannot Afford Car Insurance Premiums?
You should know that every US state requires proof of financial responsibility mandatory in order to operate a vehicle. For most of us this means we must carry, at least, the minimum required auto liability policy in order to be a legal driver. As far as your state is concerned, if you cannot afford this policy, you cannot afford to drive.
If you carry a car loan, you probably have to carry more than the required minimum. Your lender also wants to be sure that you can pay off our car note in case the car is wrecked! So add collision and comprehensive insurance to your liability policy. If you do not have these, you could be breaking the terms of your loan.
So if you are in a situation where your income is less than your monthly bills, you really need to consider another alternative besides dropping an auto policy.
Reducing or Eliminating Car Insurance Premiums
Transportation Alternatives – Is it time to consider selling your car and using alternative transportation? This will not work for everybody, but many employers have car or van pools. Some cities have good public transportation systems. Imagine how much further you can stretch your budget if you eliminate car payments and car insurance premiums.
If you only need a car once in awhile, it would probably be cheaper to just rent one. Remember that you can also save money on parking, repairs, oil changes, tires, etc.
Buy A Junker – Some of us cannot live without our vehicles, but we may be able to live with a cheaper car. If you can sell the car with an outstanding loan balance and purchase an older vehicle that you can own without a loan, you could save a lot of money. You will only have to carry liability insurance, and you will not have a note.
I understand that when you get to the point where you cannot afford car payments, you also probably do not have the cash to buy any car. Perhaps you could borrow money from somebody in your family who may be willing to help you out. You will probably also have to pay them back, but you can probably arrange much friendlier terms than you could with a bank.
Find Cheaper Car Insurance – Do not make the mistake of assuming that all insurers are the same. By comparing quotes, and stripping your policy down to the minimum required, you may be able to save hundreds of dollars a year on your auto insurance premiums.
It used to be complicated and time consuming to compare insurance rates. You had to call around or set appointments with multiple insurers. These days, the internet has made this process very simple and fast. You can find a good online insurance quote form. You simply have to enter your basic information one time, and this takes about 4 minutes. Then you can sit back and relax because multiple insurers will be there to compete for your business.
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Source: http://ezinearticles.com/?What-to-Do-If-You-Cant-Afford-Car-Insurance&id=4185936
