Need Help with High Auto Insurance Costs
I’m currently looking for auto insurance for my 2019 Jeep Compass, but I’m facing some challenges that classify me as a high-risk driver:
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I owe $1600 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 auto policy has lapsed for over 9 months, meaning my vehicle hasn’t been insured during that time (I haven’t been driving it).
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I had an accident in 2021, with my previous accident occurring in 2017.
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My credit score isn’t in great shape at the moment.
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I reside in a densely populated area in the Long Island suburbs.
I’ve reached out to high-risk insurance companies, and the lowest quote I’ve received is $1627 down and $793 monthly. This is unfortunately way too high for me—taking public transportation or using Ubers is currently more affordable. Plus, since my vehicle is financed, selling it isn’t an option.
Do any of you have recommendations or suggestions for alternative solutions? Thanks!
It sounds like you’re in a tough situation with your auto insurance. Here are some steps you can consider to help lower your costs and improve your situation:
Improve Credit Score: While it may take time, working on improving your credit score can help reduce your insurance premiums in the long run. Make payments on time, reduce outstanding debts, and check your credit report for errors.
Shop Around: Sometimes, rates can vary significantly from one insurer to another. Use online comparison tools and reach out to different insurance companies to see if you can find a lower quote.
Consider State Programs: In New York, there are programs like the New York Auto Insurance Plan (NYAIP) for high-risk drivers. This could potentially help you find more affordable coverage.
Increase Deductibles: If you think you can handle a higher out-of-pocket expense in case of an accident, consider raising your deductibles. This usually lowers your monthly premium.
Look for Discounts: Ask about any possible discounts you may qualify for, such as bundling policies, good student discounts, or low mileage discounts.
Usage-Based Insurance: Some companies offer usage-based or pay-per-mile insurance. If you don’t drive much, this could be a more affordable option.
Temporary Non-Owner Policy: If you’re not using your vehicle and want to avoid high premiums for now, you may also look into a temporary non-owner policy, which can sometimes be cheaper than a traditional auto policy.
Consult an Insurance Broker: An experienced broker may have access to special programs or discounts that you wouldn’t find on your own.
It may be challenging, but exploring different options and improving your financial situation can help you find a more affordable insurance solution. Good luck!