The lagging economy has left many Americans no choice but to cut back on certain expenses, car insurance included. To save money, many drivers are choosing to raise their deductibles in an effort to cut insurance costs. Worse still, some motorists have opted to drop their policies altogether.
Industry analysts say that in most states, as many as one out of every five drivers has no insurance. This presents problems for many motorists who have to deal with the recession as well as uninsured drivers on the road.
Auto insurance is mandatory in 48 states. Wisconsin is set to be the 49th state that requires car insurance by next year. New Hampshire is the lone state where having car insurance is optional. Having valid coverage is crucial for any driver, experts say. Not only does having insurance protect against out-of-pocket expenses, having proper coverage can also save policyholders thousands of dollars in the long run.
Despite the bad economy, industry experts say that affordable car insurance is still a possibility for Americans looking to forward to saving money. They add that drivers need to be careful when choosing insurance providers to avoid any costly mistakes in the future.
Insurance shopping can yield different products and services offered by various insurance companies. Using online comparison sites, drivers can compare several providers and their products to choose the best policy suited for their needs. With the tough economic situation, many insurers are becoming more competitive with each other. As a result, special rates and promos are not unheard of.
Saving money does not stop there, experts contend. Motorists can also inquire about discounts from their providers. Most insurance companies give out discounts to policyholders who have remained loyal customers for a certain period. Other providers are keen on acquiring new customers and are more than willing to offer discounts to entice them.
Teen drivers can also avail of “good student” discounts by performing well in school and attending driving classes. Most insurers recognize the efforts of students trying to become good drivers and usually reward them with lower premiums. Doing well in school can also earn young motorists points for discounts.
Americans fond of carpooling and taking public transportation can also see a dramatic cut in their insurance expenses. Taking the bus every once in a while can help cut premiums, experts add. Gas sipping economy cars also cost less to insure as well as fill up with gas.