8 things you can do if you can no longer afford your car insurance in the USA

What to do if you can't pay for your car insurance in the USA
What to do if you can’t pay for your car insurance in the USA

It’s a somewhat expensive time to be a driver these days considering the rising gasoline prices plus the car repairsand of course, the Car insurance is not an exception. And while it stands to reason that you can’t control issues like labor or supply chain shortages, you can take steps to lower your insurance bill. Here are some tips on how to reduce your insurance premium and What to do if you can no longer pay the car insurance in USA.

DO NOT cancel your policy

First of all, the first thing to be clear about is NOT to cancel your policy. While it may be tempting to stop having insurance altogether, this decision could have long term consequences. And with all states except New Hampshire and Virginia requiring drivers to carry a certain amount of auto insurance, being caught driving without insurance could lapse the insurance on your record and affect your future insurance costs. . Janet Ruiz, director of strategic communications for the Insurance Information Institute, said via email that “starting a new policy is often more expensive than staying insured continuously.”

What to do if you can’t pay for your car insurance in the USA

On the other hand, a lapse in insurance could result in your state requiring you to file a SR-22 form, legal proof that you have purchased the required minimum amount of auto insurance from your state. A SR-22 it can stay on your record for several years and some insurers won’t cover a driver with one.

Ride no insurance in USA It can also have other repercussions, such as having to pay out-of-pocket for any costs resulting from an accident you cause, having your license suspended, fines, or even losing your car if you have a car loan or lease.

What to do if you can’t pay for your car insurance in the USA

With that said, dropping your insurance should be out of the question, but you still have other options to have a cheapest car insurance in usa. We show you some of the most effective options so that you can reduce some of your insurance costs.

1. Contact your insurance company

Contact your agent or insurance company quickly if you know you can’t pay an upcoming bill. Ethan Warren, managing director of Goosehead Insurance Agency, in an email said he may be allowed to delay it or combine it with future payments. “It’s always better to be proactive than reactive,” Warren said.

If you haven’t made a payment, insurers often provide a grace period in which you can still make one without risking cancellation of the policy. Grace periods can vary by state and company, so you should contact your insurer quickly to find out how much time you have.

What to do if you can't pay for your car insurance in the USA
What to do if you can’t pay for your car insurance in the USA

2. Ask about discounts

You can also check with your insurance company about the discounts offered. Although these vary by insurer, you could see savings for a variety of reasons, such as having a student with good grades, bundling your auto insurance with another policy, or signing up for automatic payments and paperless billing, for example.

3. Increase your deductible

Increasing your deductible is a guaranteed way to reduce car insurance costs. If he’s an always-safe driver who hasn’t filed a claim in the past, or doesn’t drive often, he might feel more comfortable accepting a higher deductible than those who drive more or have a history of violations. We recommend that you only consider this option if you can afford the larger deductible in the event of a claim.

4. Change coverage

If you drive a vintage car and your policy includes comprehensive and collision coverage, you may be able to cancel both, since they only pay up to the market value of your vehicle, less your deductible. For example, if you drive a car worth $1,000 and your deductible is also $1,000, you will not receive a cash payment from a comprehensive or collision claim.

To get the cheapest auto insurance possible, carry only your state’s minimum required amount. According to a recent NerdWalle analysis, good drivers with minimal coverage pay an average of $561 per year compared to $1,630 for full coverage. However, it is important to note that in many states, the minimum coverage only includes liability insurance, which pays the bills and medical expenses of others after a car accident you cause, up to the limits of your policy. You must bear for any damage done to your car.

5. Consider pay-per-mile insurance

As its name implies, it is paid according to the miles i drive. Specifically, the price of pay-per-mile insurance is quoted by combining a monthly basis and a mileage rate, which takes into account the number of miles you drive. Mileage is usually tracked via a mobile app or a device that plugs into your car’s diagnostic port.

If you drive infrequently, use public transportation, or need to insure a second car that you rarely use, pay-per-mile insurance may be an option. cheapest option than a standard policy. You should be aware that your driving behavior may be tracked and bad driving habits, such as harsh braking and driving late at night, may increase your premium.

What to do if you can't pay for your car insurance in the USA
What to do if you can’t pay for your car insurance in the USA

6. Buy a new policy

Buying new insurance often turns out to be the best way to get the cheaper rates. Sometimes you can even get a discount for being a new customer. You can compare quotes from at least three different insurance companies at least once a year to make sure you get the best possible rate.

7. Work on your credit

Most states except California, Hawaii, Massachusetts, and Michigan use credit to calculate auto insurance premiums, and drivers with bad credit often pay higher rates. While improving your credit cannot be achieved overnight, in the long run, it can have a major impact on your lowering your insurance costs.

To improve your credit, pay bills before they are due and keep credit card balances well below your card limit.

8. Use alternate transportation temporarily

If after trying the options above, you still can’t bring your bill down to an affordable amount, you should consider transportation alternatives. Many cities provide cost-effective public transportation, ride-sharing services, and ridesharing that you can use until you have room in your budget to pay a monthly premium. Also, if you can, you could walk or ride a bike to cover short distances.

On the other hand, if you have access to someone else’s vehicle, consider obtaining a auto insurance policy for non-owners, which is usually cheaper than a standard one. It will pay for any injuries or damages you cause in an accident, as well as prevent insurance lapses, which can help you save on your premium after you switch back to a standard policy.

What to do if you can’t pay for your car insurance in the USA


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Font: MarketWatch

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