With the economy not showing any concrete signs of recovery despite the Obama administration’s subtle claims, many Americans are digging deeper into their pockets, searching for more money. For the rest of the nation with pockets that don’t go as deep, however, cutting back on expenses is the way to go.
In desperation, some drivers are resorting to dropping their insurance policies to save some money. Not a wise move, experts say. Statistically speaking, the nation’s unemployment rate is closely followed by the number of uninsured drivers on the road. With the number of jobless Americans rising every day and expected to reach the 10 percent mark by next year, motorists should see more uninsured drivers on the nation’s highways.
This is bad news, according to many industry analysts. Getting into an accident with an uninsured driver can result in thousands of dollars in added costs even if a motorist is fully insured. To avoid shelling out more dough, experts recommend pulling all stops on insurance crimping to save money.
Policyholders can increase their deductibles to get lower premiums. Insurance providers can cut 15 percent from annual premiums if drivers increase their deductibles by $250, $500, and even $1,000. The main principle of buying insurance is to be prepared for any eventuality in which a policyholder may need coverage or protection. Increasing deductibles means that a driver accepts to shoulder any repairs or bills arising from an accident up to a certain amount.
In this time and economic situation, it doesn’t pay to be humble. Experts also suggest that motorists take the courage to ask for discounts and drop some names while there at it. Some companies give special rates for policyholders who are affiliated with certain groups. Generally speaking, members of the armed forces, federal employees, and even professionals can get great discounts. Providers consider some professionals as low risk motorists and are often entitled to discounts.
Driving like an old lady can also shave some extra dollars off insurance costs. Companies love to scrutinize driving records for signs of irresponsible driving. Bad driving decisions in the past can mean higher premiums for many policyholders. Some insurers even slap on per-ticket surcharges. Driving cautiously and safely can slash premiums instantly.
Taking defensive driving classes can also show companies the sincerity of a policyholder to become a better driver. Enrolling in a DMV-approved driving school should get motorists some brownie points for cheaper insurance, experts add.