Are you covered?
Financial challenges have forced many consumers to make lifestyle changes to adapt to the current economy. From changing jobs to moving to a different house to downsizing vehicles, Americans have made decisions that impact unexpected areas of their life – like car insurance.
Check out these factors to see if you’ve made any decisions that could affect your auto coverage.
Economic choices that may affect your auto insurance costs
- YOU MOVED – Whether by choice or necessity, many consumers relocated because of the economy.
- Where you live could impact your premium, depending on a number of factors about the area.
- Moving to another state can affect costs as states vary in their coverage requirements.
- CHANGED CARS – If you chose to purchase a less expensive car or pay off a current vehicle, expect car insurance rate changes.
- The make and model of your car affects your premium. Be sure to get quotes from your insurance company before signing the paperwork.
- If you pay off a current vehicle, you may be able to select a higher deductible or eliminate your collision coverage.
- SWAPPED JOBS – Many consumers have been impacted by a job loss while some have created flexible work situations or relocated for a new position.
- Perhaps you now have a shorter commute after turning to an occupation you can do from home. A shorter commute could mean lower insurance payments.
- Stopping payment or canceling car insurance could have devastating financial consequences if you are in an accident. Additionally, this decision will likely result in higher costs if insurance is reinstated in the future.
- DRIVING LESS – According to the NAIC survey, almost 40 percent of consumers are driving less, choosing instead to carpool, walk or take public transportation more frequently.
- Check with your insurance carrier for a low mileage discount.
- Some companies also offer pay-as-you-drive pricing in select states.
- DAMAGED CREDIT SCORE – Whether consumers have fallen behind on bills or made a purchase they could not afford later, financial decisions that affect your credit score may impact insurance rates.
- Having poor credit can result in higher premiums or, in some cases, the inability to secure insurance through some