How to Get Help Paying Your Car Insurance

When the cost of living keeps rising, necessities like car insurance can become more difficult to manage. Fortunately, there may be ways to reduce your auto insurance or get a little help when money 's tight.

Should I cancel my car insurance policy? 

No, don 't cancel your car insurance. Every state in the U.S. requires drivers to have auto insurance, so no matter where you live, driving without insurance has consequences. You could lose your driver 's license and registration, get hit with hefty fines, or even face jail time. Plus, being caught as an uninsured driver often results in higher, high-risk rates when you try to get a new policy. 

If you 're involved in an accident without insurance, the situation could get even worse. You could be held personally responsible for damages even if you weren 't at fault, leaving you vulnerable to lawsuits and financial strain. 

What happens if you miss a car insurance payment?

Falling behind on premium payments isn 't a good option either. Late payments can lead to higher rates, with some insurers doubling the amount you have to pay. Your provider may also report late payments to credit bureaus, which could hurt your credit score. 

In a worst-case scenario, your policy could lapse entirely, putting you at risk of losing your vehicle if you 're leasing or financing it. 

The best move? If you can 't afford to make a payment, look for temporary assistance to keep your policy active. 

5 ways to get help paying your car insurance 

1. Call your insurance company 

Your insurer may offer discounts or hardship programs to help you keep your car insurance current. They may even recommend something as simple as switching from bi-annual to monthly payments to spread out the premium cost in smaller amounts. 

💡Tip: Contact your insurance company as soon as you realize you might miss an upcoming payment.

2. Make budget cuts 

A good budget is flexible and can be adjusted when necessary. You should be able to quickly identify non-essential expenses you can reduce or cut entirely, like dining out, entertainment, coffee shops, hobbies, and online/streaming services. By eliminating extra “wants,” you 'll free up money to cover the “need” of paying for car insurance. 

➢RELATED: Need Money Now? 6 Ways to Find Cash

3. Look for an emergency short-term loan 

There are multiple options for borrowing money in a pinch: 

• Installment Loans can help cover bills, including your car insurance. Just be sure to have a repayment strategy built into your budget so you aren 't borrowing more than you can afford to repay. 
• A Cash Advance could give you the money you need between paychecks, allowing you to keep your auto coverage current. 
• Opening a Line of Credit could be another solution when you need help paying car insurance and like the idea of having a financial safety net.

At Advance America, we work with borrowers of all credit types to find an emergency loan option suited to your unique situation.

4. Use a credit card 

While not ideal, making a car insurance payment with a credit card ensures you won 't lose coverage.

You 'll still owe that amount (plus interest) in credit card payments — but when you consider that added cost is often less than the risk of late payments, it can be a smart move.

5. Borrow from friends or family 

Asking for help isn 't easy, but loved ones might be willing to lend or gift the money to make your car insurance payment. If you enter into a repayment agreement, make sure to put everything in writing to avoid any misunderstandings or hard feelings.

More on getting help paying bills 

• Get Help Paying Your Electric Bill
• Get Help Paying Your Utility Bill
• Get Help Paying Rent
• Emergency Money for Paying Bills

7 tips to lower your car insurance 

1. Raise your deductible 

One of the easiest ways to lower your car insurance payment is to increase how much you 'd end up paying if you got into an accident. Your insurance agent can help you determine the deductible amount that 's right for you. 

2. Reduce your coverage 

If you have an older vehicle, dropping collision or comprehensive coverage might make sense based on your car 's actual value. 

Consider opting for the minimum liability coverage required by your state or skipping extras like windshield replacement, roadside assistance, and rental reimbursement. Again, speak with an agent to make sure you 're saving money, but still financially protected by your policy. 

3. Take a defensive driving course 

Setting aside a few hours to complete a defensive driving course could lower your car insurance premiums. Why? It shows your insurance company that you 're committed to being a safe driver. 

4. Compare insurance companies 

Auto insurance is a competitive industry, and many companies offer discounts for bundling policies, good driving records, or low annual mileage. It's worth checking with multiple insurers to find the best rate.

You don 't always need to switch insurers to improve your rates; simply letting your current insurer know a competitor offers a lower rate may persuade them to lower yours. 

5. Explore state insurance programs 

Some states offer low-cost insurance programs for low-income individuals (like California 's Low-Cost Auto Insurance program). Check if your state has a similar program. 

6. Improve your credit score 

Your credit affects the rate you 'll receive from an insurance provider. The higher your score, the better rate the provider will offer.

Take steps to improve your credit and ask your provider to review your policy and factor in your new, boosted credit score. 

7. Change your vehicle 

Did you know the kind of vehicle you insure affects how much you 'll pay for insurance? High repair and replacement costs, poor safety ratings, and high claim statistics drive up premiums. Alternative fuel systems, good safety ratings, and anti-theft technology can lower them. If you 're currently driving a make/model that typically has high insurance rates, consider trading it in for one that will get a lower rate.