Here's what to do if your car insurance costs have become unmanageable, as well as suggestions for lowering your premium.

Don’t cancel your policy

While it may be tempting to forego insurance altogether, doing so can have long-term consequences. Because every state, with the exception of New Hampshire and Virginia, requires drivers to carry some level of car insurance, being caught driving uninsured can result in an insurance lapse on your record and affect your future insurance costs. In an email, Janet Ruiz, director of strategic communications for the Insurance Information Institute, wrote, "Starting a new policy is usually more expensive than staying continuously insured."

If your insurance lapses, your state may require you to file an SR-22 form, which is legal proof that you have purchased the state's required minimum amount of auto insurance. An SR-22 can stay on your record for several years, and some insurers will refuse to insure a driver who has one.

Driving without insurance can have additional consequences, such as:

• Having to pay for any costs incurred as a result of an accident you caused.
• Suspension of your license.
• Heavy fines
• If you have an auto loan or lease, you may lose your car through repossession.

Try these options

Dropping your insurance should be avoided, but there are other options for saving money on car insurance. Here are a few of the most powerful.

Contact your insurance company

If you know you won't be able to pay an upcoming bill, contact your insurance agent or company as soon as possible. You may be able to postpone it or combine it with future payments, according to Ethan Warren, managing director at Goosehead Insurance Agency, in an email. "It is always preferable to be proactive rather than reactive," Warren stated.

If you miss a payment, insurers usually provide a grace period during which you can still pay without risking policy cancellation. Grace periods vary by state and company, so contact your insurer as soon as possible to find out how much time you have.

Ask for discounts

Check with your insurance company to see what discounts they offer. While savings vary by insurer, you could save money by having a student with good grades, bundling your car insurance with another policy, or signing up for automatic payments and paperless billing.

Increase your deductible.

Increasing your deductible is a sure way to save money on car insurance. If you're a consistently safe driver who hasn't filed a claim in the past or simply don't drive frequently, you might be more comfortable with a higher deductible than those who drive more or have a history of traffic violations. Consider this option only if you can afford to pay a higher deductible in the event of a claim.

Change your coverage

If you drive an older vehicle and your policy includes comprehensive and collision coverage, you can probably drop both because they only pay out up to the market value of your vehicle, less your deductible. For example, if you have a $1,000 car and a $1,000 deductible, you will not receive a cash payout from a comprehensive or collision claim.

Carry only the bare minimum of car insurance required by your state to save money. According to a recent InsuredCircle analysis, good drivers with minimum coverage pay an average of $561 per year, compared to $1,630 for full coverage. It's important to note, however, that in many states, the minimum coverage only includes liability insurance, which pays for other people's medical bills and expenses if you cause a crash, up to your policy limits. You will be held liable for any damage to your vehicle.

Consider pay-per-mile insurance

Pay-per-mile insurance is calculated by combining a monthly base rate and a mileage rate that takes into account the number of miles you drive. Mileage is typically recorded using a smartphone app or a device plugged into your vehicle's diagnostic port. Pay-per-mile insurance may be a cheaper option than a standard policy if you drive infrequently, take public transportation, or need to insure a rarely used second vehicle. Keep in mind that your driving habits may be monitored, and bad driving habits, such as hard braking and driving late at night, may result in an increase in your premium.

Shop for a new policy

Shopping around for new insurance is usually the best way to find the best deals. You may even be eligible for a discount if you are a new customer. At least once a year, compare quotes from at least three different insurance companies to ensure you're getting the best rate possible.

Work on your credit

Except for California, Hawaii, Massachusetts, and Michigan, most states use credit to calculate car insurance premiums, and drivers with poor credit typically pay higher rates. While improving your credit won't happen overnight, it can have a significant impact on lowering your insurance costs over time.

Focus on paying bills on time and keeping credit card balances well below the card limit to improve your credit.

Use alternative transportation temporarily

If you've exhausted all of the above options and are still unable to reduce your bill to an affordable level, consider transportation alternatives. Many cities provide low-cost public transportation, rideshare services, and carpooling that you can use until your budget allows for a monthly premium. You can also walk or ride a bike to cover short distances if you are able.

If you have access to someone else's vehicle, consider purchasing a non-owner car insurance policy, which is usually less expensive than a standard one. It will pay for any injuries or property damage you cause in an accident, as well as prevent an insurance lapse, which can help you save money on your premium once you return to a standard policy.