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Owning a car gets expensive: gas, regular maintenance, unexpected repairs, and insurance payments really add up. There isn’t much you can do to reduce costs on the first three expenses but you can reduce insurance costs with these 7 simple ways to get cheaper car insurance.

Car Insurance Is Super Expensive

I’ll admit that I don’t own a car, I’ve spent most of my life living in cities where a car wasn’t a necessity or even a convenience but an additional expense and a hassle. Anyone who has ever tried to understand alternate side parking rules in New York City or dodged potholes in New Orleans will understand. So I was shocked to learn that the average cost of car insurance is $3,717 per year which works out to $309.75 per month.

Apart from my rent, that’s more per month than any of my bills. If car insurance is one of your biggest monthly expenses, it’s time you found cheaper car insurance.

Why You Need Car Insurance

Well, you have to have car insurance in most states because it’s mandatory because of liability, your responsibility for any damage you cause while behind the wheel. Drivers can choose to buy comprehensive and collision coverage as well to cover your own car but the liability coverage most states require cover bodily injury and property damage. This coverage pays out to any victim of a car accident that you caused.

In order to legally register and drive your car, you are required to maintain at least the minimum level of liability insurance your state requires. If you have leased or financed your car, you may be required to carry additional coverage by the dealership or bank, similar to a mortgage company’s requirement that you have home owner’s insurance. That car doesn’t really belong to you, the entity it does belong to want to make sure it’s protected.

Getting cheap car insurance can be done right from your computer in just a few minutes. These insurers can give you a quote instantly. Check your rates now.

• Liberty Mutual: It offers consumers standard car insurance policies and several different types of additional optional coverage as well including accident forgiveness, new car replacement, better car replacement, and a deductible fund. If you’re a teacher, Liberty Mutual may be the best choice for your cheap car insurance needs. More on that later!

Using the right car insurance provider is only one way to get cheaper car insurance. Here are 7 more.

1. Buy the Right Car

Car insurance premiums are partly based on the cost of a car, the cost of repairs, the safety record, and how popular it is with car thieves. For the record, the Honda Civic often tops the list of most stolen cars, sorry Civic drivers. To help you choose a car that will cost less to insure you can go to the website Insurance Institute for Highway Safety at iihs.org.

2. Opt for a Higher Deductible

Just like with your health insurance policy, the deductible on your car insurance is the amount you pay out of pocket before insurance kicks in. The higher your deductible, the cheaper your car insurance premium will be. Opting for a $1,000 deductible can lower your car insurance cost by 40% or more. If you choose this method of getting cheaper car insurance, make sure you have the deductible amount set aside in your emergency fund.

3. Mind Your Credit Score

You probably already know that having a high credit score means that borrowing money for a home or taking out a personal loan is cheaper because it gets you a better interest rate but did you know that having a high credit score can mean you get cheaper car insurance?

Just as having a high credit score shows potential lenders that you’re a good risk, responsible with money, it shows car insurers that you’re a good risk because you’re responsible. And responsible people are more likely to do things like paying their bills on time and less likely to do things like drive while intoxicated or leave valuables in full view inside their unlocked car.

If your credit score could use some work, there are ways to improve it.

4. Lower Coverage on Your Old Beater

If you get a ding in your 17-year-old Toyota Camry it’s not like getting a ding in your 2019 Ferarri. You likely won’t even notice a ding in your Camry and wouldn’t care or bother to get it repaired if you did so you can consider dropping collision and or comprehensive coverage on an older car.

What’s the threshold? A good rule of thumb is that if your car is worth less than 10 times your car insurance premium, the additional coverage isn’t worth the additional cost. You can look up the current value of your car at Kelley’s Blue Book, kbb.com.

5. Everyone Loves a Discount

Many insurance companies offer discounts for a variety of things. If you’ve not had an accident or gotten any driving tickets for a certain number of years, if you complete a defensive driving course, your car is equipped with anti-theft devices, you’ve been a loyal customer for many years, or your high school-aged driver who is on your policy makes good grades.

When shopping for cheap car insurance, ask the insurer what discounts they offer.

6. Pay Up Front

A lot of companies offer products and services at a reduced price when you pay upfront for an entire year rather than paying each month. It’s easier and cheaper for the company to process a single yearly payment rather than a dozen monthly payments.

You should get into the habit of working large, expected, yearly expenses like car insurance and property taxes into your budget so they don’t come as a surprise and so that you can pay the full amount in order to get the discount if that is an option.

7. And On Time

If you forget to pay your car insurance bill, not only are you playing with fire (you’re breaking the law and would be forced to pay out of pocket for any damage your car sustained or any damage your car did) but a lapse in coverage can disqualify you from any discounts you were getting on your premium.

The easiest way to make sure you always pay your car insurance bill and any other bills on time is to set up auto-pay either through the vendor or through your bank. Late payments may result in additional fees and can sometimes hurt your credit score.

Where to Get Cheap Car Insurance

Liberty Mutual:

Liberty Mutual allows consumers to buy standard car insurance and additional coverage. Accident Forgiveness means your premium won’t be raised after your first accident. New Car Replacement means if your car is totaled within the first year and first 15,000 miles, you’ll get reimbursed for the cost of a new car, not the depreciated value of your now un-drivable car. Better Car Replacement means if your car is totaled, no matter the age or number of miles on it, you’ll be reimbursed for a car one year newer and with 15,000 fewer miles than the car you have to replace. The Deductible Fund lowers your collision deductible. Liberty Mutual contributes $70 per year while you contribute just $30.

Liberty Mutual offers Teacher’s Auto Insurance and comes at no additional cost. It includes vandalism loss protection, personal property coverage, and collision coverage. If you’re a teacher looking for cheap car insurance, look no further!

A Necessary Expense

As a non-driver, I’ve always felt sorry for those who don’t live in a place with reliable, or any, public transportation. Having a car is so expensive but I understand for many people it’s a necessary expense.

So why not make that necessary expense a little less costly? Use these tips and the recommended companies to get cheaper car insurance and put more money back in your pocket.

The post 7 Simple Ways To Get Cheaper Car Insurance appeared first on Wall Street Insanity.

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The motto “always be prepared” isn’t just for Boy Scouts. Preparing for death is a responsible way to make sure your spouse and children are taken care of once you’ve passed away. It’s not a topic that anyone likes to talk about, but here are six reasons why every parent should have life insurance.

1. Debt & the cost of raising children.

Something parents should think about is the amount of debt and financial obligations they’ll be leaving behind when they pass away. Major expenses include mortgage payments, car payments, monthly utilities, and credit card debt.

For parents, the day-to-day costs of raising children – providing them with food, clothing, and other necessities – should also be considered. Perhaps you also have school tuition costs to pay. Other expenses such as extracurricular activities should also be taken into consideration. And of course, those figures should be multiplied by the number of children you have.

Needless to say, those costs can be a significant burden for the surviving parent, particularly if the main breadwinner is the person who passes away. A life insurance policy can help ease that burden, providing your family with financial security.

If you’re in need of a life insurance policy, getting one has never been easier.

• High-quality and trustworthy companies like Ladder can generate a term life insurance quote in minutes with a price-lock guarantee. People love Ladder because there are no commissioned brokers, no upselling, no policy fees and you can cancel anytime.
• There is also policy comparison site Policygenius which allows you to quickly compare and buy life insurance from dozens of companies.

2. Covering the value of the stay-at-home parent.

It’s a common misconception that a stay-at-home parent doesn’t need life insurance. That couldn’t be further from the truth. Imagine if the sole earner of the family passes away. The surviving stay-at-home parent will likely find themselves in need of a job. And at that point, they’ll probably be forced to pay someone else for childcare and other duties.

A newly released survey found that being a stay-at-home parent was equivalent to having 2.5 full-time jobs. Combine that with a 2016 study which found that a stay-at-home parent’s annual worth was around $143,102 and you’ll quickly see why a life insurance policy is a good idea for both parents – not just the one who goes to an office every day.

3. College costs.

The annual cost of a four-year education at an in-state public college is $9,970, according to CollegeBoard data. And that’s just for one year. A four-year education would set you back $39,880 if your child was going to college today and rising costs weren’t practically guaranteed. That’s also before you factor in books, room, board, and miscellaneous costs (and before you multiply those costs by each child).

Life insurance is a great way to make sure your children receive a quality education and won’t graduate with tons of student loan debt.

4. Immediate expenses.

The very first immediate expense to take place after a person’s death is the cost of the funeral. Those who have a life insurance policy can rest assured that their family will be taken care of, while those without a policy will be leaving their loved ones to foot the bill. This can add unnecessary stress during an already tragic time, and can leave your family members in debt.

The average cost of a funeral in the United States is currently hovering between $8,000 and $10,000, according to funeral home comparison website Parting. With a number like that, it’s easy to see why some people are left with a huge financial burden when a loved one passes away.

5. It supplements your workplace policy.

If you have life insurance through your employer, that’s great. However, it’s probably not enough. The payout on group life insurance is generally lower than if you take out an individual policy. In fact, it’s typically only 2.6 times your annual income, according to a 2016 study by the Life Insurance and Market Research Association (LIMRA). The industry recommendation is to have a policy that is more than double that amount, and some experts recommend having even more. Another thing to consider is that a work policy will be canceled once you leave your current employer, whereas a whole life individual policy will stay with you forever.

6. It’s not expensive.

Most people tend to think that life insurance policies cost a lot of money, and that misconception often stops them from getting one. However, a healthy 30-year-old male pays an average of just $21 a month for a 20-year policy. You probably spend more than that on lattes. Buying a policy at a young age and when you’re healthy can also save you tons of money in the long run, so there’s no reason to put it off.

The perfect policy for you will vary based on a number of factors, from your personal health to the number of dependents you have. Luckily, technology has made comparing policies easier than ever before, with life insurance comparison sites like Policygenius laying out all of your options in a matter of minutes.

There are standout life insurance providers that are designed with the modern policyholder in mind: online solutions that are easy and quick to apply for.

Ladder:

Ladder offers a quick three-step process — get a quote, complete the application in about five minutes and get an instant decision on coverage. There are no commissioned brokers, which means no upselling. Ladder makes it super simple for policyholders to apply to increase or decrease their coverage with the click of a button, all online with no hidden fees. There are no policy fees, and you’ll benefit from a price lock guarantee. You can also cancel your policy whenever you want.

➼ Get an instant life insurance quote from Ladder.

Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers – for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.

The post 6 Reasons Every Parent Should Have Life Insurance appeared first on Wall Street Insanity.