How To Prepare Your Car Insurance For A Recession
No one likes to endure an economic recession. But while you can't do anything to stave one off, you can take steps to prepare yourself and your personal finances. What about your car insurance? Here are five things you can do now to prepare for the possibility of a looming recession.
1. Shop Around for Rates
Before you make any changes to your coverage, start by ensuring that you're paying the lowest rates for the right insurance. If it's been a year or more since you shopped around for the best rates, it's time to do it again. Consider if anything has changed — such as being able to bundle policies — since you last shopped around. Any changes might give you an opportunity for savings.
2. Don't Drop Coverage
One of the most common responses to bad economic times is to skimp on insurance coverage. However, you may find that dropping comprehensive coverage in order to save money, for example, doesn't save as much as you expect. And it has the drawback of multiplying your financial risk instead. Exhaust all your alternatives before choosing this path.
3. Consider Other Insurance Methods
Did you know that there are different methods of calculating insurance coverage and premiums? Today's driver has several choices that may fit their needs better. For instance, you might switch to a per-mile premium calculation policy if you don't drive a particular vehicle much. In addition, insurers now offer discounted rates in return for being able to verify your careful driving. Either method could bring big savings.
4. Check Your Drivers and Vehicles
Have you had any changes in your household makeup lately? What about cars in your household? Do any vehicles not work or are there any that you just don't drive? Don't pay for anyone or anything that you don't actually need coverage for.
5. Separate Risky Drivers
Does anyone in your household have a poor credit rating or driving record? If so, see if you can separate them from the other partner's or family members' policy. That one individual might be driving up your rates as a whole, so removing them from the mix saves money. Then, shop around for a specialized policy to cover them individually. Just be aware of any driving restrictions included.
Where to Start
The time to plan ahead for a recession is before it impacts your finances. Start by meeting with an experienced car insurance broker in your state today. With their help and these tips, you can be confident that you aren't leaving any money on the table with your insurance plans. Contact a company like Mike Pierce Insurance for more information.
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