If you have ever been involved in a car accident, you likely remember being extremely grateful to have automobile insurance. Even the most minor incident can result in hundreds or even thousands of dollars worth of damage to a vehicle, not to mention any medical bills that have to be covered as well. Car insurance is most definitely something you don't want to do without, but if your income has changed or your rate has increased, you might be struggling to figure out how to pay the premium. Listed below are two tips you can use to reduce the cost of your vehicle coverage so you can keep your car protected at an affordable price.
Raise Your Deductible
When you initially took out your auto policy you may have opted for all of the standard coverages. Perhaps you have the state minimum limits for your liability protection and went with a $500 dollar deductible, which is quite common for many motorists. The rate you received may have been satisfactory at the time, but if you need to find some way to save money without necessarily cutting corners, you might want to take a close look at your deductible.
You can actually save money by raising your deductible. Switching to a $1000 dollar deductible might bring your premium down to a level you can afford. A representative at your insurance company will likely be happy to give you a quote so you can see what the difference will be before you make the switch.
If the price is right and you decide to raise the deductible, make sure the amount isn't so high you won't be able to produce it in a pinch. Keep the deductible at a level where you can quickly withdraw the sum from a credit card or take it out of an emergency savings account if you need to.
Check Your Usage
Your usage could also be the culprit behind the spike in your insurance premium. It's important to always update your mileage so the rate you are given truly represents the risk you present. If you now work from home and no longer have an extensive commute, you may be able to save by changing the usage to reflect your current status.
Little changes can make a big difference in your insurance premium. Give these suggestions a try to see if they help you get the rate drop you're looking for.
For more information, contact an auto insurance provider.
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