You can save payday cash by looking for new auto insurance
Car insurance costs
When it comes to having more payday cash, it’s important to look thoroughly at your monthly bills. One area where people frequently find savings is in the area of car insurance. Everyone needs car insurance, but the cost varies greatly among companies. When making the decision of whether or not to look elsewhere, there are some key things to look at.
What to look at before jumping ship
For those who have changes in their lives, shopping around for new auto insurance can be a sure-fire way to lower monthly payments. Here are some reasons why you should look for new quotes:
- You were laid off or are self-employed. If the miles on your vehicle are significantly changed, that could mean a drop in premium. Many rates are based on to-and-fro miles of commuting from home to work. Those who are laid off or work out of their homes can find rates cut down due to the slashed mileage.
- Your credit score has changed. Many auto insurance providers base your premium on your credit score. If yours has improved over the past few months, you may be eligible for a break when it comes to payments. On the other hand, if your credit score has declined, there are insurance companies that weigh other things, like driving records, more heavily when deciding on a premium.
- You have a long-term car lease or loan. One of the repercussions of lowered credit scores and higher payments is lenders extending loans’ life spans. It’s not uncommon for car leases and loans to extend out 72 or even 96 months. Although the payments are lowered, the consumer ends up having to finance most of the vehicle’s cost. As time goes by, the vehicle’s value declines and many owners end up with an “upside down” loan, which means they owe more than the car is worth. One accident could mean the insurance company pays out the car’s market value and the owner owes more than that to the finance company. That could mean all payday cash has to go directly to the lender. A good solution is for consumers to look into getting gap insurance. This bridges the gap between the insurance company payout and what is owed on the loan.
- Children start driving. An insurance company that has traditionally offered reasonable rates can increase the premium once an additional driver is added to the policy. If your children have reached the driving age, it’s a good time to search around and find some insurance options. You may not switch, but you may find a better price elsewhere.
- You become a homeowner. Buying a home makes you more responsible in the eyes of many insurers. If you buy, be sure to talk to your agent and find out if they have different rates once you move from the renter to owner classification. You could end up saving money not only due to a lowered auto insurance premium, but also due to combining premiums for home and auto, for example.
It’s the little things that add up to savings for consumers these days. Having more payday cash comes from examining small expenses. For example, it is more likely to be able to cut down on an automobile insurance bill than it is to totally refinance a home loan. Consumers looking for more money at the end of the month should start small and hope for the best.