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Can I Afford Car Insurance? How to Lower Your Monthly Premium


Paying for car insurance can put quite a dent in your budget. The average car insurance premium around the country is around $125 a month.

Of course, there are a lot of different factors that can affect your rate including your state, age, type of car, your driving history, and how many miles you drive.

Are you wondering, “can I afford car insurance?” If you are worried about paying your car insurance, there are ways to save.

Let’s find out ways to help you lower your monthly payments, so you can afford car insurance.

What If I Don’t Pay My Car Insurance?

If you are thinking about not paying your insurance, don’t. You will face penalties and lose your license if you are pulled over. The consequences are devasting since you are driving illegally.

You will end up paying more in the long run if you skip out on insurance. There are about 6 million car accidents each year in the country, and the last thing you want to happen is not having insurance to cover the costs.

If you don’t have car insurance, you could face time in jail, losing your vehicle, getting points on your license, getting your license suspended, and paying license reinstatement fees. Not to mention, you will be liable for any vehicle damages if you are in an accident.

How Can I Afford Car Insurance? Find Ways to Save

From shopping around to raising your deductible, there are ways you can save money. Let’s take a look at how to get car insurance at a lower rate.

Shop Around

Don’t assume that all car insurance companies have the same rate. You shopped around for the best deal on your vehicle, so it only makes sense that you shop for the best auto insurance rate.

You can compare rates online or work with a couple insurance agents. Independent agents can quote multiple companies at once. Make sure you shop the same insurance coverages to see which rate is the lowest.

You don’t have to stick with the large insurance companies either. Look at local or regional companies to see how their rates compare.

Check Out Discounts

There are discounts available to help you lower your rates. These discounts include:

  • Having safety or anti-theft features on your car
  • Paying your premium annually or every six months versus monthly
  • Insuring multiple cars
  • Bundling your auto policy with your home or renter’s insurance
  • Signing up for paperless billing
  • Being a member of an affiliate group or professional organization
  • Having good credit or a clean driving record
  • Being in the military

These are just a few of the discounts available. Some insurance companies also offer a discount if you take and pass a defensive driver course.

Check multiple insurers to see if there are any other discounts available.

Having Good Credit

We mentioned above that having good credit can lower your rates. It’s important to pay your bills on time because your credit score is one of the major factors that determine your car insurance rate.

Look for ways to improve your credit by paying your bills on time and reducing your debt when possible.

Pick the Right Coverage for Your Vehicle

If you have an older car, you may be able to pass on comprehensive and collision coverage. Comprehensive coverage pays for damage to your car from floods, fire, vandalism, weather, animals, and fire. It also covers theft.

The maximum payout for this coverage is determined by the value of your car. If your car is older and its market value is low, it may make sense to skip this coverage and focus on the other types of insurance such as liability.

Increase Your Deductible

Another way to save money is to opt for a higher deductible. You need to have comprehensive and collision coverage to opt for this option because there is no deductible for liability insurance.

Your deductible is the amount you pay after a claim before your insurance company will pay. This lowers your rate because you are less likely to file a claim unless you have a larger claim.

Drive Less

If possible, try to drive less by either taking the bus occasionally, walking, or carpooling. You can save up to 15 percent from some insurance companies with a low-mileage discount.

Automatic Payments

Some companies offer discounts if you sign up for automatic payments. The insurance company will automatically deduct your premium from your checking account each month, so you will have to be sure you have adequate funds.

Car Insurance Is a Necessity

If you are still looking for ways to save, you should look at other items you don’t need. For example, you can cut cable, eat out less, or look for energy savings with your heat and air conditioning.

Take a look at your budget to see where you can make cuts so you can afford your car insurance premium.

Final Thoughts on How to Get Cheap Car Insurance

The bottom line is you should find a way to have auto insurance. It’s illegal, for one, to drive without it. If you are worried and thinking “can I afford car insurance,” you need to start shopping.

Take the time to research possible discounts and get multiple quotes. Consider raising your deductible. If you are buying a new car, take into account the insurance rates before you purchase a sports car.

Interested in other, similar topics? Check out some of our other blogs for more information!

So, what do you think ?