Cars can be expensive. First, you pay for the vehicle itself. Then, you have to shell out cash for fuel, repairs, AND car insurance. While car insurance is mandatory in most states, you shouldn’t have to start a side hustle to pay for it. Instead, make your car insurance payments feel easier—and cheaper—with these four tips from your friends at Direct Auto Insurance.
1. Lower your overall payment.
What’s one of the best ways to make car insurance easier on your wallet? Shop for a lower car insurance rate! Direct Auto has plenty of ideas for ways to get cheaper car insurance. For instance, you could become eligible for more car insurance discounts and potentially save up to 25% with a company like Direct. As life changes, so could your discount eligibility.
Another great way to lower car insurance payments is to reject optional coverage. While you’ll need to meet your state’s minimum requirements, certain coverages are optional and may not make sense for your situation. But, be sure to do your research and work alongside your insurance company or agent to identify the coverage you’re required to have and the coverage you can choose to have. Keep in mind that opting out of some coverage means losing protection in certain situations. For example, rejecting uninsured motorist coverage could mean you’ll need to shell out a good chunk of your own money if you’re hit by a driver who doesn’t have insurance.
Ask yourself, “Can I afford the consequences of not having this coverage when I need it?” If the answer is no, play it safe—even if it means paying a little more.
2. Split the payment.
Once you’ve lowered your overall insurance premium, help lighten the load on your own wallet by dividing the bill between other drivers in your household. Can your newly-licensed son or daughter help out? Consider having them pay their share of the insurance bill. Not only will you save money, but you’ll also be teaching them valuable financial skills that can benefit them long-term. Get them started on a path toward financial independence with these seven apps for earning extra money.
3. Make early (or at least on-time) payments.
Surprise parties, surprise sales, and surprise gifts—some surprises are great! But being in a car accident only to find out you don’t have car insurance is not a good surprise. Your car insurance policy can get canceled for non-payment.
Paying late or having to Reinstate your canceled policy can result in additional fees, and that’s without considering the legal and financial costs of being pulled over or having an accident while driving uninsured. Help avoid these risks by making payments on time and paying attention to any emails or letters you receive from your insurance company.
If remembering to pay bills isn’t a strength of yours, try these scheduling tips:
- Ask one of your more organized loved ones for a monthly reminder.
- Schedule automatic bill pay through your financial institution.
- Put a calendar alert on your phone or in a paper planner.
4. Pay in full.
If you can afford to pay for your policy upfront, it could save you serious cash. Not only could you avoid an accidental policy cancelation, but you may also be able to sidestep the monthly installment and service fees charged by many insurance companies when you stretch your payments out over time.
Direct Auto makes it easy to customize your payment schedule if you want to pay upfront or wish to change your monthly due date. Customizing your payment schedule means you can ensure your paycheck comes before your payment due date and not the other way around!
5. Ask for help.
Staying on top of your auto insurance payments is an essential part of owning a car. Your local Direct Auto team can help, whether you need to renew a policy, start a new one, or reinstate a canceled car insurance policy. We believe in second chances and getting you back on the road, wherever you are in your journey. Call 1-877-GO-DIRECT or come in today to learn more!
*Not all products, discounts or payment plans are available in all states or distribution channels
*Payment plans are subject to terms and conditions and may not be available in all locations.