Almost every state in the U.S. requires drivers to carry liability insurance, at the very least.

Liability insurance, as you probably know, covers damage or injuries that you cause to someone in an auto accident for which you are responsible.

 If you drive without insurance, you could face hefty fines and even jail time. So, car insurance is an expense that you need to pay.

 But what if you are broke? How do you afford car insurance then? 

 Let us explore your options.

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Compare Different Insurance Companies

You cannot drive without paying for auto insurance. Nor can you obtain “no money down” car insurance.

However, that does not mean you cannot find affordable auto insurance.

One of the best ways of finding the cheapest coverage is to use a reputable online comparison site.

 You can then quickly and easily compare different rates and contact insurance companies to get quotes. 

Adjust Your Coverage

You can also reduce the amount you pay on car insurance by adjusting your coverage.

You may not need all of the coverage that is offered in auto insurance policies. 

For example, if you have comprehensive and collision coverage but you have an old car that is not worth much, you could decide to drop that coverage. 

By only getting the coverage you need, you might find your insurance is much more affordable than you first thought.

Ask Your Insurer About Discounts

Whether you have an existing insurer or you find a new insurance company, you should ask about the discounts that are offered.

Many insurers provide discounts for things like being accident-free and staying clear of traffic violations for a certain number of years.

Change Your Car

Some cars are more expensive than others. If you currently have a high-cost car, you could save money on your insurance by switching to a model that costs less to insure.

And by trading in your old car, you could afford to buy a cheap car and even have some money left over to pay towards your insurance coverage. 

If you are already broke, you may not have a high-worth car in the first place. But if you do, changing your vehicle can make a lot of financial sense. 

Consider Pay-per-mile Insurance if You Do Not Use Your Car Much

If you do not drive a lot, you could benefit from pay-per-mile insurance.

The cost fluctuates depending on how much you use your vehicle.

So, by only using your car when absolutely necessary, such as getting to and from work, you could potentially make significant savings. 

It could be worth cutting down on your car usage just so you can save money on your auto insurance.

Once you are in a better financial position, you can always begin using your car more or switch your insurance policy.

Improve Your Credit Score

Insurance companies consider various factors when determining the cost of your car insurance.

One key factor that insurers look at is your credit score.

So, if you are able to improve your credit score before you take out coverage, your car insurance could be much more affordable.

Get a Handle on Your Financial Situation

If you are really broke and the above suggestions are not suitable for your financial position, you should focus on other ways of improving your financial situation before you get car insurance.

You could always get public transport until your situation improves.

To get a handle on your finances, you could seek help from a non-profit certified credit counselor, pursue debt consolidation options, or take on an additional part-time job to gain additional income.

If you do something like the latter, it does not have to be forever.

But by taking active steps to improve your financial position, you will be in a better place to afford car insurance.

Published by HOLR Magazine.