The Ever Increasing Car Insurance Rates
Auto insurance rates continue to rise adding pressure to cash-strapped consumers. Some drivers choose to let their car insurance policies lapse, by not renewing on time or not paying their bills. Companies urge drivers to explore savings opportunities and payment options rather than go without car insurance.
Not only is this dangerous, but it can end up costing drivers with lapsed policies thousands of dollars when they go to buy car insurance again. A lapsed policy is like a red flag for insurance companies. So here are some tips to protect your rates and credit.
Driving without car insurance is against the law and you will be personally liable for all costs if you have an accident. A short-term decision like letting your policy lapse will have big and long-term consequences; your rates may be 25 to 50% higher.
Many car insurance companies offer discounts of up to 15% if you pay your bill all at once. If you cannot afford that lump sum payment for car insurance, ask your company about monthly payment plans. There may be a small fee for a payment plan, but some carriers will waive that fee if you elect to pay by Electronic Funds Transfer.