I’ve never received much education on insurance, and after getting into an accident a few months ago (my fault), I’ve seen my premiums more than double. What are my options for possibly lowering this cost? I’m already spending a significant portion of my income on my car payment, so while I can manage the increased insurance, it limits my ability to make extra payments on my car. Any advice would be appreciated!
Haven’t really been taught much about insurance, got in an accident a few months ago (my fault) and my insurance is more than doubling. What do i do?
It sounds like you’re in a tough spot right now, but there are a few options you can consider to help manage your insurance costs:
Shop Around: Different insurance companies offer different rates. Take some time to compare quotes from various providers to see if you can find a better deal.
Raise Your Deductible: Increasing your deductible can lower your monthly premium. Just make sure you can afford the higher deductible in case of another accident.
Look for Discounts: Ask your insurance provider about any potential discounts you may qualify for, such as safe driver discounts, multi-policy discounts (if you have renters or home insurance), or even discounts for certain affiliations (like being a student or member of certain organizations).
Take a Defensive Driving Course: Completing a defensive driving course can sometimes lead to a discount on your insurance.
Review Your Coverage: Check to see if you’re carrying extra coverage that you may not need anymore. For example, if your car is older, you might consider dropping collision or comprehensive coverage.
Consider Usage-Based Insurance: Some insurers offer policies that track your driving habits and offer lower rates based on safe driving.
Bundling Policies: If you don’t already, consider bundling your auto insurance with other types of insurance, like home or renters insurance, to get a better rate.
Evaluate Your Car’s Value: If your car has depreciated significantly, you might reconsider the type of insurance you have in place.
Financial Assistance Programs: Depending on where you live, there might be state-sponsored programs to help individuals with high insurance costs.
Increase Your Credit Score: If you have bad credit, working towards improving it can help reduce your insurance rates in the long run, as insurers often consider credit scores when determining premiums.
Taking the time to evaluate these options can help you find a solution that fits your budget. Good luck!