What to Do if You Can’t Pay for Your Car Insurance in IL

What to Do if You Can't Pay for Your Car Insurance

You need to pay for your car insurance and get your vehicle to work, but you can hardly pay for your food and utilities. So what can you do in this case? Do not be upset – we will suggest several options.

How to Afford Your Car Insurance Payments in Illinois

Car insurance payments often fall down on you when you have a few weeks until you get your next paycheck. When you need extra cash for auto insurance in Illinois, you have a few options to choose from:

1. Borrow Money from Family or Friends

Asking for financial assistance from family or friends may help you get the money you need, but borrowing money from close people can ruin your relatipship. Make sure you both agree to the terms of lending.

2. Apply for an Installment Loan

An installment loan is a type of loan where you borrow a set amount of money all at one time. Such a loan may give you the desired cash flow to pay emergency bills. Installment loans can be used for many purposes, including for paying for car insurance and getting out of debt. Remember that you must pay the installment loan back on time. The advantages of installment loans include flexible terms and lower interest rates. Although the schedule is fixed, you have an opportunity to pay off your debt more quickly.

3. Take a Fast Payday Loan

If you need to pay for your car insurance within 24 hours and cannot wait any longer, we suggest that you pay close attention to payday loans IL. They are also known as cash advance loans. They can ease your mind about your vehicle while you plan out repayment. Payday loans are small-dollar and short-term. You can use the money for anything. The entire process is fast and involves no credit check. Online payday loans are a great way of dealing with unannounced financial troubles in Illinois and all across the United States. ·

Why Taking a Payday Loan to Cover Car Insurance is a Good Idea?

More and more consumers in Illinois prefer payday lending. Compared to banks, payday lenders can offer their clients a number of advantages:

  • Loyal requirements. Bad credit history, unofficial income, outstanding debts and other problems make it almost impossible to get a loan from a bank. Payday lenders are ready to “close their eyes” to some of the shortcomings of potential clients;
  • Fast funding. Sometimes you need money to pay for car insurance urgently. In this case, payday lenders are ready to issue a loan in an hour or even faster. For comparison, a bank loan processing takes on average 1-3 days, and sometimes up to a week or more;
  • No paperwork. You only need some kind of identity verification. 99% of companies do not require proof of income;
  • No need to go anywhere. Many payday lenders issue short-term loans online without meeting the borrower in person. At the same time, the contract is concluded electronically, and the company transfers the money to the borrower’s bank account immediately;
  • Flexible terms and amounts. You can borrow money for a week or a month without any problems. Loan amounts usually range between $100 and $1,000. For comparison, banks do not consider applications for small loans for an amount less than $2,000;
  • Promotions and discounts. To attract borrowers, many payday lenders in IL offer generous bonuses and discounts; they also launch loyalty programs for regular borrowers.

How to Lower Your Car Insurance Rates

Are you sure that your insurance rate is as low as it could be? Below are some tips to consider before you contact your car insurance agent.

1. Discover Discounts

Some insurance companies offer discounts to clients who drive under a limited number of miles annually or have a driving record with no moving violations, accidents, or driving-related convictions. Contact your insurance company to find out what discounts you may be eligible for.

2. Raise your Deductible

If you cannot afford monthly payments, then it may make sense to increase your deductible. Of course, that means you will have to pay more if you have a car accident.

3. Compare Policies

Are you sure your policy is as competitive as possible? You don’t need to change an insurance company right away; simply let your current insurer know that you found their competitor who offers a more attractive rate may lead them to lower yours. Talk to your insurer to find out where you can cut costs.

What Happens if You Don’t Pay Your Car Insurance?

If you decide to drive without car insurance in Illinois, you can expect penalties including:

  1. a fine for driving without insurance coverage ($500-$1,000 or even higher);
  2. your driving license may be suspended;
  3. a license reinstatement fee of $100;
  4. an additional $1,000 fine if a previous violation means your license plates are already suspended;
  5. requirement of an SR-22 for up to three years, or more.

Is it Illegal to Drive without Car Insurance in Illinois?

Yes, it is illegal to drive without car insurance in Illinois. In two states — New Hampshire and Virginia — it’s legal to drive without insurance. The cost of an accident is likely to be sky-high, and most people are unable to cover it themselves – just think of the medical bills + cost of car repairs. Car insurance is required to ensure that all drivers in the state can cover damages caused by an accident, via their insurance policy. So you’d better pay for your car insurance in a timely manner even if it’s still a few days left until your get your next paycheck. For this, you can use a payday loan or another option suggested above.

Category: General

Tags: car insurance, finance, insurance, loans, money, payday