With prices of consumer goods, fuel, groceries and services going up continuously and salary remaining the same, more and more people are feeling the financial crunch. In hopes of cutting back on expenses and saving as much money as possible, a lot of people are giving up some of the things that they feel they can afford to live without.

One of the things you might be considering on cutting back on is your auto insurance in order to make ends meet. But this is a very bad and very risky move! You should never consider driving without auto insurance ever! Yes, if you drop your auto insurance, you will save some money because you don’t have insurance premiums to pay for monthly but the cost of doing so may be more serious than you ever thought. Number one reason why you shouldn’t drive without auto insurance is because it is a legal necessity – you are not allowed to drive your car anywhere without auto insurance because if you got caught without it, you may end up in jail.

If you also get into a serious accident, you won’t only suffer from financial ruin but you can also wreck your credit history and in turn say goodbye to cheap auto insurance for a very long time if you got caught driving uninsured.

According to the Insurance Information Institute, a person with below-average credit standing’s average cost of claim is $918 which is 53% higher than the average claim while those with an above-average credit score’s average claim cost is $558, which is 23% lower than the average claim.

Auto insurance is a good thing to have because it will give you financial protection. If you don’t want to pay expensive insurance premiums, there are many ways you can be able to cut down on your insurance cost. For instance, you should know how to shop around for cheap auto insurance as there are many insurance providers out there. Take advantage of the Internet to get online cheap auto insurance quotes. Aside from this, there are a whole lot of other tips that you can follow in order to save money from your auto insurance.

 

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