How To: Budget for the Cost of Auto Insurance

budget for auto insurance la habra caPlanning for an auto insurance premium allows you determine your desired coverage!

Sometimes unique circumstances, such as owning an expensive car or having a high number of accidents or tickets on your driving record, requires you to pay more money to insure your car. If this is the case, remember one thing: you always have options! Whether you’re experiencing high premiums or looking to insure your new car, searching for correct coverage with affordable auto insurance can be a challenge – but it’s not impossible!

Just because you need auto insurance doesn’t mean that it has to cost you an arm and a leg, or break the bank, or *insert financial hardship metaphor*. Determining your budget for car insurance means that you have a financial number to work with rather than looking at quotes blind sighted.

Use these tips to create a budget and prepare for the cost of auto insurance!

  • Create a budget: Write (or type) out your budget of incomings, outgoings, and desired amount to spend on your insurance policies. A visual representation will mean that you can focus on your finances precisely.
  • Add up expenses: Include rent, mortgage, car payments, insurance premiums, utilities, cellphone, credit card, gas, food, and any other monthly outgoings. Totaling recurring expenses allow a good insight into how much extra money you’re spending that you should be saving instead.
  • If the sum of all of your expenses adds up to more than what you’re bringing in, consider some cuts. Go down your list and eliminate any unnecessary expenditures. After securing enough funds to pay for the roof over your head, your car and insurance, food, utilities, and medical expenses, leave a small percentage for “fun” and put the rest into savings!
  • Consider paying your six-month car insurance premium in one lump sum: Although this sounds counterintuitive, you may save you money! In many cases, opting to spread the coverage out to monthly payments increases the cost by a small but amount.
  • Look for discounts within your insurance: In school? Bag the Good Student Discount. Safe driver? Get the Good Driver Discount. Enquire with your insurer to see if there are any discounts that apply to you – it doesn’t hurt to ask!

Save the search of trolling through the internet looking for affordable car insurance. Contact Martplan Insurance Agency in La Habra, California to get started on your tailored auto insurance policy today!