Car insurance is a necessity that can be expensive. Everyone needs car insurance in order to drive legally on the road. But what happens if you can't afford car insurance?
Unfortunately, driving without insurance isn't a viable option. Going without insurance can actually land you in even more trouble — both financially and legally. Driving without insurance can result in fines, a suspended license and even jail time when accidents and injuries are involved. Just because you need insurance doesn’t mean you have to pay a ridiculous amount for it, however.
Understanding Car Insurance Coverage
First, it's crucial to understand car insurance coverage options so that you don't end up paying too much for coverage you don't need. While insurance agents want you to have the proper coverage, they can also push coverages that you don't necessarily need.
Each state has different car insurance requirements. Research the car insurance requirements in your state. In Missouri, drivers must have:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $10,000 in property damage liability
- $25,000 in uninsured motorist bodily injury per person*
- $50,000 in uninsured motorist bodily injury per accident*
And in Kansas, drivers must have:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $25,000 in property damage liability
- $4,500 in Personal Injury Protection per person
- $25,000 in uninsured motorist bodily injury per person*
- $50,000 in uninsured motorist bodily injury per accident*
*Uninsured/underinsured motorist coverage requirements can sometimes be denied in person when filling out paperwork for your car insurance policy.
For the most part, liability insurance is the only car insurance that is legally required (aside from the Personal Injury Protection requirement in Kansas). Having less insurance can save you money on car insurance premiums, but it also leaves you at higher risk for having to pay for damages and medical bills out of pocket if you get into an accident. Common optional coverages include:
- Comprehensive Coverage covers damages to the vehicle due to wind, hail, fire, lightning, theft, vandalism and other incidents not involving collision.
- Collision Coverage covers damages to the vehicle due to collision with another vehicle or object.
- Medical Payments covers medical expenses for the driver and their passengers after an accident.
Consider your vehicle's specific coverage needs. If you have an older vehicle that would cost more to insure with comprehensive and collision coverage than to replace, you may just want the basic liability and medical payments coverage.
You can also choose to raise your deductible. Your deductible is how much you pay out of pocket when you must file a claim before the insurance company will provide compensation. Raising the deductible can lower your car insurance premiums. But it also means you must pay more out of pocket after an accident.
Saving Money On Car Insurance
If your current policy is too expensive, shop for another policy by comparing prices from multiple insurers. Insurance premiums are calculated based on a variety of factors, some of which are out of your control including your age, gender and location. Other factors can be used to lower your car insurance rates. Your Auto Insurance Discounters agent can help you find the coverage you need.
Ask About Discounts
Many drivers qualify for discounts that they aren't aware about. Make sure to ask your Auto Insurance Discounters agent about possible discounts, such as:
- Mature Driver Discounts
- Good Student Discounts
- Low Mileage Discounts
- Military Discounts
- Senior Discounts
- Paid in Full Discounts
- E-Bill Discounts
- Loyalty Discounts
You may also receive discounts by bundling car insurance with other policies under the same insurer, such as home insurance.
Build Your Credit Score
Your credit score may influence your car insurance rates. Build credit by scheduling bills for auto-draft. That way, you never miss payments. It also helps to pay off debts and credit cards, if possible.
Drive Defensively
Not only can you receive discounts for having a good driving record, but you can also save money by not filing car insurance claims. A single crash can raise your rates by 30 percent or more.
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