One of the important factors about being a Canadian driver is insurance is mandatory. In a lot of cases, drivers will buy extra insurance as they find appropriate. There can be circumstances that arise where one can no longer afford their insurance. When one is in this situation, there are some positive steps that they can take.
Do Not Ignore the Insurance Payments
While there are some things that are workable there are also things that should not take place. One should not be missing an insurance payment. By doing this it is going to make it difficult to get insurance in the future. Plus, it can make insurance much more expensive. Also, is important to deal with the issue at hand immediately.
It is always a good idea for individuals to try and pay their insurance ahead for the year. Then if something comes up financially that affects them it won’t affect their insurance. But a lot of people pay their insurance by installments, or some even pay monthly.
The financial situation may be temporary. It might be worth trying to borrow the money for the next payment. It would be particularly useful if this is for quarterly payments. But if the insurance is paid monthly then perhaps a few months coverage ahead would be more appropriate. If this is not possible, then other steps need looking at.
Look at Policy Reductions
One should contact their insurance company immediately. It should be before the payment is due. So the insurance company has a bit of time to maybe come up with a workable solution. The insured can take a look at the type of insurance they have. There may be an opportunity to reduce some of the coverage. For the time being, it may be that the comprehensive insurance needs dropping. Or the collision insurance reduced somewhat.
It is important to discuss the financial situation with the insurance agent. They may be able to give some suggestions. They may be able to determine what areas could be reduced. Yet, still, keep the individual in financial difficulty protected. At the very least the basic insurance must be in place for the driver to legally drive.
Some individuals when buying insurance go for low deductibles. It tends to help increase the premiums somewhat. An insured may want to raise their deductibles. To see how much of a difference this would make on the insurance costs.
Look at the Metrics Used for the Premiums
Every insurance company uses different metrics to help set their premiums. The insured should try and take a close look at these. This will help to determine if any of the metrics could be adjusted in their favour. Sometimes it may take dramatic steps to help with this, but on a temporary basis, it might be worth it.
The insurance premiums may be high because of the type of vehicle that the insured has. Perhaps when they were in a better financial position, they had invested in a more expensive vehicle. If the financial difficulty appears to be one that is going to be for a longer period a change in the vehicle may be an option. It may be possible to downsize to a smaller vehicle that comes into the cheapest to insure category.
Here are a few examples of the cheapest cars to insure in the province of entire aerial for the 2018 year.
2018 Toyota Prius C hybrid automatic 2WD
The insurance costs estimated just based on the vehicle metrics is about $504 a year. A driver has to have a good driving record. Plus all the other metrics have to be favourable. The ones that the insurance company looks at. There could be a dramatic decrease in the insurance.
The 2018 Chevrolet Cruze LS automatic 2WD
It is another vehicle considered to be one of the least expensive to insurers in Ontario. Costing about $576 Canadian per year for insurance.
These are just two of several examples. Of how one can use the vehicle they drive to decrease their insurance costs.
Look at the Discounts
Another option to help lower insurance costs is to look at the discounts. It is not unusual for those that are in a good financial situation to ignore insurance discounts. They do this because they don’t need them. When financial problems arise now is an excellent time to take advantage of those offered. There are some simple discounts that can be taken advantage of. One of these is by having snow tire usage in the wintertime for their vehicle. Another is by reduced mileage which may be an option. It may be that the individual in financial difficulty needs to cut down the usage of their vehicle. Which would result in a discount. They can restrict themselves to the amount of time they use the vehicle. It could make a big difference in their insurance.
Try Shopping Around
One of the other major most important steps that can be taken is to do some insurance shopping. Many times individuals grab the first insurance deal that appeals to them that comes along. Sometimes this is based on the premium other times it is for convenience. A lot of people don’t like to take the time to shop for insurance. It is because they don’t understand it. Plus they think that all insurance companies are going to offer the same thing. It is not true that they are all the same. What they offer and the premiums can differ greatly. It is not difficult to shop for insurance when one has access to the Internet. All it means is using a quality site to get a good list of insurance quotes based on the driver’s needs. Then these quotes can be compared. They need further looking into. As a result, there could be some significant savings.
It is possible to combine many of these options. There is a good chance an individual will find a solution.