Struggling with High Auto Insurance Costs
I’m currently searching for auto insurance for my 2019 Jeep Compass, but I’ve encountered several challenges that categorize me as a high-risk customer:
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I owe $1,600 to a previous insurance company due to missed payments while I was incarcerated, which led to my account being closed.
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My insurance policy has lapsed for over 9 months, meaning my vehicle hasn’t been covered during that time (and I haven’t been driving it).
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I experienced an accident in 2021, and my prior accident was in 2017.
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My credit is less than ideal at the moment.
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I live in a densely populated area in the Long Island, NY suburbs.
I’ve contacted several high-risk insurance providers and received a lowest quote of $1,627 down and $793 monthly. That’s simply unaffordable for me; it’s actually cheaper to rely on public transportation and Ubers right now. Plus, since my vehicle is financed, selling it isn’t an option.
Does anyone have any suggestions or advice?
I’m sorry to hear about your situation—it sounds really tough. Here are some suggestions that might help you find more affordable auto insurance or options to consider:
Shop Around: Continue to get quotes from multiple insurers, including both traditional companies and those that specialize in high-risk insurance. Each company has different underwriting guidelines, so you might find a better quote by comparing several.
Consider a CIC: Some insurance companies offer “Continuous Insurance Coverage” (CIC), which may consider you for better rates after a period of consistent payments without lapses.
Increase Your Deductible: If you can afford to pay a higher deductible in the event of a claim, you could potentially lower your monthly premium. Just make sure it’s an amount you can manage in case of an accident.
Look for Discounts: Some insurers offer discounts for completing defensive driving courses, insuring multiple vehicles, or even just having a clean driving record over a certain period.
Consider Non-Standard Insurance: Some companies specialize in high-risk insurance but may offer more competitive rates. Look for non-standard insurers that can provide coverage tailored to your situation.
Seek Financial Assistance: Depending on your financial situation, there may be local organizations or state programs that offer assistance for those who struggle with auto insurance costs.
Check with Credit Unions: If you’re a member of a credit union, they often partner with insurance companies to provide their members with lower rates.
Consult an Insurance Broker: A broker can help you navigate through the different options available and could potentially find a policy that fits your budget better.
Reevaluate Your Coverage Needs: If you’re not driving extensively, consider whether you need full coverage or if liability coverage would suffice until you can get your finances in order.
Stay Informed: Keep track of your credit score and work on improving it over time, as a better credit score can lead to lower insurance rates.
While public transportation may seem like a more cost-effective option right now, it’s essential to have coverage, especially since the Jeep is financed. I hope some of these suggestions help you find a more manageable solution. Good luck!