If your credit card debt is causing you to fall behind on bills, you need to either spend less or make more money. Saving money on car insurance can help you reduce the total amount of your monthly bills. However, you may also need to update your budget to see where you can make other changes to improve your finances.
Key Points:
- Saving on car insurance is a good way to find extra money to pay down your credit card debt.
- A monthly budget can help you to determine where you can spend less or how much more income you need in order to cover your bills.
- There are many ways to save on car insurance to help balance your monthly budget.
Using a monthly budget as a financial strategy can be helpful in identifying where to easily cut bills while also seeing how much you can afford to put toward paying down credit card debt each month. If possible, try to allow yourself enough of your income to pay more than just the minimum payment each month.
Basics of Saving on Car Insurance
Cutting back on expenses like car insurance is one of the best ways to help balance your monthly budget. Here are some tried-and-true methods for saving money on car insurance.
- Shop around for the best rate available. Don’t just settle for what you have or what car insurance company is easiest. Do your research into what company can give you the best deal.
- Get rid of coverage you may not need. If you have car insurance coverage that you no longer need, get rid of it. Make sure to update your coverage with any life changes to ensure you’re not overpaying.
- Take advantage of all discounts for which you qualify. Even if you have discounts on your policy, the insurance company may have additional discounts that were not available when you originally applied for the car insurance. Talk to your insurance agent or do research on your own to ensure you are getting the best deal possible.
- Driving safely can help you avoid premium increases but may also allow you to qualify for additional discounts, depending on your insurance company.
Creative Ways to Save on Car Insurance
If you’ve already tried the basics and you still are looking to save more, it may be time to get creative ways to save on car insurance.
- Raise your deductible, which can lower your premiums. Just keep in mind that you will pay more out of pocket should you get into an accident or otherwise damage your car or someone else’s.
- Consider taking a driving refresher course to save on your car insurance premiums, especially if you have points on your license. Some car insurance companies provide discounts to those who take certain kinds of defensive driving, accident prevention, or any other related course. If you have points on your license, one of these courses may be able to eliminate or reduce them, lowering your premiums.
- If you don’t drive your car consistently, consider looking into usage-based car insurance. You may also be able to get reduced insurance rates if you don’t drive your car for long-lengths of time. For example, if you only drive your 4-wheel drive vehicle in the snowy months, you may qualify for lower premiums on that vehicle during the summer.
- If your monthly budget allows for it, trade your car in for something smaller. A bigger car can sometimes come with higher car insurance premiums. Consult with your car insurance company before doing so to see how much you would save.
Lowering your other bills and expenses, essential or non-essential, may also be able to help you pay down your credit card debt, but saving on large monthly expenses like car insurance can have a big impact toward balancing your budget.
If cutting back on your car insurance premium isn’t enough to help you manage your credit card debt, a ClearOne Advantage debt settlement program may be able to help. Contact a ClearOne Certified Debt Specialist at 866-481-1597 today to discuss your situation, explore your best debt relief options, and get a free savings estimate.
The information provided is for informational purposes only and is not intended to provide insurance advice. ClearOne Advantage does not provide financial or insurance advice. Please consult a licensed insurance agent or insurance company to discuss your insurance needs.
