Talking With Insurance Companies

If you are among the many that live paycheck to paycheck, you're probably looking for ways to cut your monthly expenses. One thing that you can adjust is your auto insurance policy. Here, you'll find a few ways to reduce the premiums on your auto insurance for this year.

Auto-Pay Discount

Some insurance companies offer a discount for payments that are set up to automatically be paid. Each month, the payment will be automatically withdrawn from your checking account. Usually, this discount isn't substantial, but when you live paycheck to paycheck, every penny counts.

Keep an eye on your checking account balance. If the payment comes out and you don't have the funds, you'll face an overdraft fee from the bank which will undo any savings you would have enjoyed.

Increase Deductibles

The deductibles are the amounts that you'll have to pay if you file a claim. If you have an auto loan on the vehicle, you'll likely need to maintain a certain level of deductible. Oftentimes, lenders don't allow the deductibles to exceed $1,000, while others may have the limit set at $500.

Before contacting the auto insurance company to increase the deductible, contact the lender that is carrying the loan. Ask what the maximum deductibles are for the vehicle and use that information to get some quotes on the existing policy and through other agencies.

Remember, you'll have to pay that deductible if anything should happen, so be prepared to foot the bill in the event of an accident.

Remove Add-On Services

There are add-on services that you may not even know that you have on the auto policy. These add-ons include rental insurance, towing coverage, roadside assistance and travel protection.

Rental insurance is a nice feature to have if you're in an accident because you won't be left without a vehicle, but for now, you can drop it to reduce the monthly expense.

Towing and roadside assistance are other features that comes in handy when you need it, but how often do you use them? If you don't use them, consider removing them.

The best thing for you do to right now is to find out how high you can set your deductibles and begin contacting agencies for quotes. Once you find the best price, look over the policy to ensure that it will protect you well-enough and then, you can begin enjoying having that little bit of extra money when you need it most. Use these tips to lower your car insurance rates as you look into companies like Angel Auto Insurance.