Auto insurance is mandatory. There are options, and with the average North American paying around $1,500 per year in auto insurance, it is something worth shopping around for - maintain what you need and save money.
How to lower rates Ask about lowering your rate. If you've received traffic tickets, it probably won't go in your favor. But if your driving record is clean and you've made payments on time, your company may be able to work with you on a better rate to keep your business. If they don't, look around. Insurance companies are competitive and you can probably find a lower rate out there somewhere. Make some calls, see if you can bundle your other insurance policies together to save.
Boost your deductible and letting collision insurance go? Consider asking your carrier about increasing your deductible. If you get in an accident you will have more out of pocket expenses - but it may be something you are willing to risk to save on your policy. If your car is older, you may no longer need collision insurance. Think about if your coverage is worth paying for depending on how much your car is worth when also deciding if you should pay for your car insurance yearly or monthly? If you are on a tight budget, monthly may be better for you if you don't have the annual cost available. You may be hit with some service fees and interest, so if you can do it, annual payments will save some money. Find out, though, before you stress on how you're going to make one giant payment, because the savings may not be worth it. If an annual payment is going to force you to put other payments on credit cards and accrue interest, it's probably not a good idea. Sometimes insurance companies will also offer discounts to those customers who pay in full. So if you are getting an initial 10-15% discount along with saving $10 or $15 a month on service rates, you may be looking at a savings of a few hundred dollars a year - that could be worth it.
About the Author: Heather Legg writes on a variety of topics, including wellness, social media and saving money.