The first thing to consider is whether or not you really need to buy auto insurance. You can avoid this by purchasing state minimum liability insurance. If you’re financially strapped, you may be tempted to opt out of coverage. Nevertheless, there are several reasons to get it. Here are a few. Keeping in mind that you’ll need the vehicle to make ends meet, you can’t drive it recklessly and risk an accident.
The second reason to buy auto insurance is that it protects you from unexpected costs. If you’ve never been in an accident, it’s crucial to have insurance. Accidents cost you a lot of money and can even ruin your car’s value. In addition to accident forgiveness, many insurers offer discounts for safe drivers. This can reduce the cost of insurance by up to 9 percent.
Finally, if you don’t have a credit history, you’ll likely pay more for car insurance than if you had perfect credit. Insurers often use credit scores to predict the likelihood that someone will file a claim. However, these methods are illegal in many states, including California, Massachusetts, and Michigan. While the price of car insurance depends on the type of coverage you’ll need, don’t skimp on it. Don’t buy just the state minimum requirements; you can end up with a catastrophic situation.
Another method to reduce car insurance costs is raising your deductible. Most drivers opt for low deductibles because they can afford to pay them out of pocket. However, it doesn’t mean that you can’t have an accident and avoid paying auto insurance. By raising your deductible, you reduce your risk of having an accident and thereby reduce your premium. This method is not ideal for all drivers, but it is certainly worth trying.