Car insurance is often seen as a necessary expense. There are over 200 million registered vehicles in the United States today, all of which need some sort of insurance in order to drive legally. But what do you do if you can't afford car insurance? Do you simply go without?
First, never drive without insurance. If you're caught driving without insurance, you could lose your license or face heavy fines. You could even face jail time if you were involved in an accident without car insurance.
Reasons Your Car Insurance Is Expensive
Car insurance isn't automatically expensive. There are many factors that influence the cost of your car insurance:
- Age
- Gender
- Location
- Vehicle make, model and value
- Credit score
- Driving record
- Deductible
- Coverage limits
Obviously, you can't control your age or gender. If you are under the age of 25, you will pay higher premiums for car insurance. Your location can also be out of your control. But it's important to focus on the things you can control in order to lower your car insurance rates.
Vehicle Make, Model And Value
Sports cars and vehicles modified for speed will cost more to insure, as they're statistically more likely to be involved in an accident. Some vehicles are more likely to be stolen, which can also make insurance costlier. In general, try to purchase a cheaper vehicle with a high safety rating in order to save money on car insurance.
Credit Score
Your credit score has a heavy influence on your car insurance rates, as the insurance agency sees it as proof of your financial responsibility. In order to save on insurance, raise your credit score by paying off debts and loans, as well as paying bills on time.
Driving Record
Perhaps the most important influence on your car insurance rates is your driving record. A poor driving record with multiple violations can cause you to pay hundreds more a year in car insurance. Drive defensively and follow traffic laws in order to avoid filing a claim.
Deductible and Coverage Limits
The amount of coverage you carry matters. You must carry a certain amount of insurance as dictated by your state, but you can change your coverage and deductible in order to save money.
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