Finding the right discounts, increasing the deductible and improving credit scores help consumers find affordable insurance coverage, states Edmunds.com. Affordable insurance coverage is necessary during financial hardships such as unexpected retirement, job loss and bankruptcy.
Consumers may qualify for good student discounts, defensive driver discounts and multiple car discounts, explains 21st Century insurance. Discounts reduce the amount a driver pays in terms of premium, making the insurance coverage more affordable.
A deductible is the amount of cash paid out of pocket for repairs before the insurance provider chips in, according to DMV.org. The insurance company typically covers for damages equal to the policy limit. The deductible a consumer pays depends on his premium and the terms of the policy. Increasing the deductible slightly reduces the premium, making the coverage affordable.
Several states allow insurance providers to consider credit history when determining an insurance credit score, claims Edmunds.com. These companies use this credit score to come up with what an individual pays as the monthly premium. Having a poor credit score makes an individual a high-risk customer, which means he may end up paying more for auto insurance. Drivers should improve their score by clearing outstanding debts and monitoring credit reports to weed out any issues that affect credit scores negatively.