With the current economy crisis, many families are forced to cut policies and coverage in various areas to leave more finances available for everyday living. The same is true for my family. The first aspect that I looked at in my budget was my car insurance. I live in Massachusetts which requires car insurance to be able to operate a motor vehicle. Because of this, eliminating the policy completely was not an option. I was looking for ways to decrease my monthly payment and found some interesting and typically overlooked aspects to get decreased rates.
First, I added rental insurance to the current insurance company that I have. This allowed for a drastic decrease in rates that lowered my monthly payment by twenty percent even with adding new coverage to my policy. It was amazing that the payment was able to be lowered by actually adding more coverage. By adding an extra policy, it allows for a higher level of coverage with a decreased percentage payment. This combined policies is available through most insurance carriers.
Second, I was able to configure a different payment plan with my insurance company. Most individuals, like myself, do not pay their insurance policy in full. Because of this, interest is added and compiled monthly which forces you to pay more for your insurance. Typically insurance companies will split your payment over a ten to twelve month time span. I spoke with my insurance company and explained that I was a long term customer looking for a different payment plan. I was able to configure a 7 month payment plan for less than I was paying a month. This allows for a drastic decrease in interest and a 5 month gap in which my car insurance is paid in full.
These two aspects allowed me to lower my car insurance payments drastically without changing my coverage. This allows for peace of mind and added finances in the family budget for other aspects of everyday living.