There are plenty of people who have the minimum amount of car insurance their state will allow. While it makes sense that people would choose to keep insurance costs down as much as possible, unfortunately, it also means that many people may not have enough coverage when they do get in accidents. If you find yourself in this situation, there are a few things you can do to reduce your costs.
Work with a Local Shop
Your first step is to shop around and figure out if a local shop or dealer will cut you a deal on repairs. You might be able to save money by using used parts or by taking advantage of specific discounts. This will still end up costing you more than it would if you had better insurance, but your out of pocket costs will be reduced if you’re willing to do a little bit of negotiation.
Hire an Attorney
One of your big goals is going to be to avoid fault. If you are found at fault for injuring another person or damaging their cars, you could be looking at paying significantly more money than most are prepared to spend. As such, the cost you pay for hiring an auto accident attorney may be the best money you can spend. Work with your attorney to ensure that you aren’t found at fault so that you can shift the financial cost of repairs off of yourself and back on to the other party’s insurance carrier.
Don’t File Small Claims
If you’re like most people with cheap auto insurance, you probably have a high deductible. If you have a claim that’s less than four figures, you’re almost always better off paying out of pocket. Not only will you probably end up spending about the same amount of money, but you’re at far less of a risk of having your insurance premiums rise. If you want to save over the long run, you’ll need to spend cash on your car repairs.
Keep an Emergency Budget
Finally, it’s a good idea to keep an emergency budget for your car repairs. A good practice is to take about half of what you saved on getting cheaper insurance and to put it directly in a savings account. You can leave this money alone until you get in an accident, safe in the knowledge that you have a safety net available if something happens.
While it won’t be pleasant, you can make it through an accident with minimal insurance. Make sure to spend money when needed and do what you can to save. If you’re willing to negotiate and take certain matters seriously, you can get back on the road without ruining your finances.
You might also like:
