Reader’s Question:

I do not have the budget for continuing my auto insurance. Can I just be safe on the road and will not get car insurance?

Jane

Detroit, MI

No. First of all its illegal to drive without proof of financial responsibility. People want to reduce anything that makes us painfully spend more, including car insurance. Read on and learn ways to save on car insurance.

When shopping for car insurance, always compare, compare, compare. The technology today has afforded us ways on easier insurance shopping. Use your favorite search engine and be on the hunt for car insurance deals that doesn’t make you cringe. Compare at least three or four insurance companies. Cheap doesn’t mean substandard. Don’t let your quest for a good deal be waylaid by shady insurance companies. Do background checks. Does the company have numerous consumer complaints? How is the credit rating looking?

Consider getting all the available discounts. Bear in mind that discounts differ from one insurance company from the other. State laws also differ. Take defensive driving classes, and a 10% is taken from your premiums. Installing safety measures on your car merit discounts as well. Bottom line is, do your homework well. Know your basic state laws; you’ll be surprised how much discount you can avail.

Increasing your deductibles helps. A deductible is the flat amount an insured incurs before the companies make benefit payments. Since insurance is meant to pay the bigger amounts you can’t handle, it is wise to increase your deductibles. This drastically lowers your premium.

Purchasing the right vehicle counts a lot. Check the car reputation before buying anything. Do thieves prefer this car model over the other? How are the repair costs? Should you buy a brand new vehicle? Has a second hand vehicle crossed your mind? There are “safe” cars. The web is a rich source of information. Let your fingers do the work. Research and compare.