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Auto Insurance for those with Low Income

By on June 29, 2011 in Auto Insurance, Insurance

Auto insurance is a must for everyone who intends to drive. However, this is easier said than done when high insurance premiums and low overall wages are taken into consideration. For this reason, there are a lot of uninsured motorists on the road these days. For some people, it’s a choice between motoring, health and home insurance, although none of these should be neglected.

Even though there is the perception that auto insurance premiums are prohibitively expensive, there are still ways and means that a low-earning individual can go about obtaining low income car insurance. Many people may not be aware that, in order to attract more clients and to undercut their competition, more insurance companies nowadays actually offer insurance policies without demanding up-front deposits.

For some people, the lack of a deposit can make the difference between being able to pay the rent and sleeping in the streets in the coming months. With this arrangement, monthly insurance premiums are paid but with a slightly higher interest rate compared to a policy for which there is a deposit. This allows the agency to recoup the ‘loss’ made by forgoing the deposit. With this in view, a savvy consumer should compare payments for premiums when deciding whether to buy such policies.

Going online is a greatly convenient method for completing your Christmas shopping. An individual can also search for cheap auto insurance in this manner as well. In fact, it’s extremely convenient because you can compare insurance policies from several agencies all in the same site. All that is needed is some time to key in some personal information, based on which the system will determine what policy is most suitable for your income group, age, address, driving record and even vehicle type. You should remember that younger drivers and those with sports vehicles tend to be charged higher premiums than other drivers.

Policy enquiries can also be made over the phone, and that is the time to ask if you qualify for any discounts that will see you pay lower insurance premiums. Insurance agencies looking to retain low income car insurance buyers rarely say no outright, as they would prefer to gain less profit from you than none at all. Even signing up for a policy online may entitle you to a discount, with some agencies even willing to arrange affordable rates for senior citizens or those with a good driving record.

If you already have an auto insurance policy but are looking to reduce the premiums paid, choosing higher deductibles will see much lower insurance premiums being charged. If you have comprehensive insurance coverage, you stand to gain a 12-35 percent reduction on your rates if you raise your deductibles.

It can be very tempting to do without auto insurance when you barely earn a living. Even so, driving without insurance actually puts you at greater personal risk than anything else. With the right amount of legwork, insurance can be affordable even for individuals who have limited financial means.

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