My budget isn’t big but I don’t want to not have car insurance in case I do get into a car accident. How can I get affordable car insurance without losing vital coverage?

Beverly

Chicago, IL

You are wise not to skip car insurance coverage, even if you’re budget is a little tight (like almost everyone else these days). Often times not having car insurance during a major car accident can really put you in real financial trouble. So here are some tips to get yourself a more affordable car insurance policy without sacrificing important coverage:

1. Streamline Your Policy – Remove unnecessary/redundant coverage items. A classic example is Personal Injury Protection which works the same way as a reliable medical insurance. If you drive an old clunker then you may not need to have much (or any) comprehensive insurance on it at all.

2. Get Some Discounts – Ask your current insurer about discount options, especially if you’re not sure you’re getting one. There are so much discount offers available that there’s a good chance you’ll qualify for at least one.

3. Get a Higher Deductible – A bigger deductible will lower the premiums you pay. Just don’t overdo it or you might not afford to file a claim should you really need one.

4. Go on an Annual Payment Plan – This can actually reduce the amount you pay on your coverage in the long-run. Most companies today either offer lowered rates or discounts for customers who agree to pay a year in advanced and in full.

5. Take a Defensive Driving Class – You will learn to better avoid accidents while on the road and get the added perk of qualifying for a defensive driver discount.

6. Shop Around for Rates – If all else fails, it wouldn’t hurt to look at what other insurers are offering. Use car insurance quote comparison websites and get a free quote. You can compare offers coming from a wide-variety of insurers quickly and easily, maximizing your ability to get the best rates and coverage.