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Low Income Car Insurance Options to Consider
Not everyone can afford the conventional car insurance policies that are used to protect a vehicle investment, but for those with less cash to put up each month, there are low income auto insurance options available from insurance companies across America. Here are some of the strategies for lowering auto insurance bills and getting the cheapest solutions from providers that will help get you legally covered in case of accidents.
Basic Liability Policies
Those who have less income are probably driving vehicles with less Blue Book value. One way to drastically reduce auto insurance rates is to decline the categories of comprehensive and collision coverage. Comprehensive coverage insures your vehicle against theft, vandalism, flooding and a host of other issues. Collision coverage provides for claim payments for your car’s value in the case of a total wreck. If your car doesn’t have much value left in it, it may not be worth insuring against these contingencies. Drivers who choose to take their chances will pay much lower premiums.
Longer-Term Policies
Buying auto insurance in longer time frames, such as a year, may lead to more savings for monthly payments. The cost of temporary auto insurance policies can be much higher than your standard annual term policy. Look at ways to save with up front payments, long-term signing and other concessions to your auto insurance company.
Adding Safety Gear
Proving that you have taken precautions in adding safety and security equipment to your vehicle can also get you some dollars off of an auto insurance policy. Items like air bags and antilock brakes, or simple aftermarket additions like a steering wheel lock or security system, can save you money on insurance by lowering the risks for the company.
Skip the Extra Services
Items like roadside assistance and rental cost coverage may just be padding your monthly premiums. If you can get along without them, this can be another way to bring down the total cost of auto insurance for low income policyholders.
Pay-as-You-Drive Insurance
Auto insurance companies have started to offer another big option for those who don’t have a lot of money to pay in order to keep their vehicle legally on the road. If you are not commuting a long distance, or otherwise not putting very many miles on a vehicle, choosing a pay as you drive insurance policy could save you a lot of money. Insurers calculate these policies differently according to the actual mileage. They require drivers to prove that the mileage used was less than the stated maximum.
Use State Programs
Some states, like California, have some specific programs for low income drivers to get affordable car insurance. Drivers often have to meet specific eligibility guidelines and sign up for programs to help them manage their costs of auto insurance.
All of the above are ways consumers can manage the cost of auto insurance. This necessary part of a household budget can get extremely high, and it’s critical for families and individuals to look at specific ways they can bring costs down without resorting to dropping their insurance policies, which leaves drivers open to suspension of licenses and other negative consequences.
