Everyone is trying to cut costs to save during COVID-19. Whether you’re facing job loss or cut hours, your checking account might not have a lot of money in it. Most debt relief options focus on things like credit cards and erasing personal loans on which you’ve defaulted. However, with car insurance, you can get better deals.
Shop and Negotiate
Consider financial budgeting before you do anything else. Know how much money you have come in and the bills you must pay. Ask your current company if they can lower prices or offer a discount when you use low-interest credit cards. Often, you can pay with debit or credit. Even if you can’t get a better deal, you can use balance transfer credit cards to shift the payment over to a low-interest option, saving you money.
One way to protect your bank accounts is to bundle your car and home insurance together. Often, you pay both simultaneously, but you may get a discount by doing this.
Consider a Higher Deductible
The deductible is what you pay on the damages before the insurance kicks in. When you request a higher deductible, premiums are lower. However, if you get into an accident, you’ve got to pay more.
When that happens, you may have to take out a reverse mortgage, home loans (equity), or a personal loan to cover the expense.
Fix Your Credit
Credit repair can also help you get lower premiums. If you’ve got a lot of credit card debt, consider a debt consolidation program to lump all those small bills into a large one. This can save money and help you realize where everything is going.
Cut Payments Elsewhere
Sometimes, lowering your tax on income returns can help you save for later expenses. Tax relief comes in many forms, such as donating an older vehicle to charity. Those who have trouble paying a bill and can’t get a loan because of bad credit, consider getting a money transfer from a friend/family member.
These are all great ways to lower car insurance payments during these uncertain times.