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Wednesday, December 22, 2010

Make Insurance Affordable: Pay in Installments

Tough economic times makes for tougher financial times. The big lump-sum premiums are a big part of the epidemic of the uninsured-something sweeping the nation. Fortunately, it may be possible to pay in installments.

Economic Hardship Creates Uninsured Drivers
In the United States, about 1 in 7 drivers are uninsured. This varies state to state. In some, like California, 1 in 4 are uninsured. This makes for a dangerous situation.
Despite the fact that the law requires drivers to be insured, many motorists simply cannot afford insurance. They also cannot afford not to drive, because transportation is necessary to work at all.
Analysts say that this situation is the result economic downturn. The recession in the United States is a major factor, but so is the global economic downturn. Global financial markets have led to more pressure being put on insurers.
Recently, however, there has been a reversal of the trend. In the last year, the number of insured motorists has increased.
Some of this is due to economic recovery, some to government programs, and some credit goes to insurance companies stepping up their efforts.
A larger reason may be the new ability to pay for insurance in installments.
How to Get Insured Affordably
There are such things as policies with no down payment-it's not a myth! However, these are extremely rare. It is best to use the internet to for cheap rates and insurance rate quotes.
It is easier, but not easy, to locate decent quality insurance with a monthly plan and small upfront costs. Again, getting free quotes online is key.
Paying in Installments
Some companies offer this voluntarily. However, some states require payment plans by law. Texas is one such state protecting consumers.
Florida goes the opposite direction. They require at least two months premium as a down payment by law-sorry Floridians! In Florida, you cannot cancel your insurance during the first two months. (They have their reasons: 1. Financial responsibility, and 2. Making sure people don't cancel their insurance after registering.)
Even if your state says nothing about installment plans, it is worthwhile to ask local insurance providers if they will give you a monthly premium plan. Chances are, if you have a good driving record and decent credit, you will be able to find something affordable.
You may have to pay a bit more each month to make up for the insurer's loss of security due to the low upfront costs. Still, it's better than driving uninsured.
How to Protect Yourself against Uninsured Drivers
Uninsured Motorist coverage protects you in the event that you are in a collision caused by an uninsured motorist. It is one of the common types of auto insurance.
Your policy sets a maximum dollar-amount of coverage. If you are hit by an uninsured driver-or if it is a hit-and-run situation-this coverage will pay the medical costs and personal damages for you and your passengers.
The best thing about Uninsured Motorist coverage?
It's pretty cheap!
If you already have Comprehensive Collision coverage on your car insurance policy, you may not need Uninsured Motorist coverage.
Want to really make the roads safer? Consider contacting your state government about making it less expensive to get car insurance.


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