Here’s what to do if your auto insurance costs have become unmanageable, plus tips on how to lower your premium.
Between rising gas and car-repair prices, it’s an expensive time to be a driver. And car insurance is no exception. But while you can’t control problems like labor shortages and supply chain issues, there are steps you can take to lower your insurance bill.
Don’t cancel your policy While you may be tempted to skip having insurance altogether, this decision can have long-term consequences. Since every state, except New Hampshire and Virginia, requires drivers to carry some amount of car insurance, getting caught driving uninsured can result in an insurance lapse on your record and can impact your future insurance costs.
Contact your insurance company Get in touch with your insurance agent or company as soon as possible if you know you can’t afford an upcoming bill. You may be allowed to delay it or have it combined into future payments, wrote Ethan Warren, managing director at Goosehead Insurance Agency, in an email. “It is always better to be proactive than reactive,” Warren said.
Change your coverage If you drive an older car and your policy includes comprehensive and collision coverage, you can likely drop both as they only pay out up to your car’s market value, minus your deductible. For example, if you drive a car worth $1,000 and your deductible is also $1,000, you won’t receive a cash payout from a comprehensive or collision claim.