Cheap Monthly Car Insurance

Questions and Answers

Your Questions About Cheap Monthly Car Insurance Payments

April 24, 2013

Paul asks…

What are some things you are doing differently now that the economy is doing really bad?

I need some ideas on how to make my money stretch. The price hike on necessary expenses is forcing me to cut into my savings. I’m already cutting down on the use of my car and I’m coupon clipping for groceries. What else can you think of that will help me save more?

Administrator answers:

Actually, I’ve been living beneath my means for a couple of years now, and saving the difference. Higher costs mean I’m not saving as much, but little else has changed.

But that doesn’t really help you. So here’s a suggestion that will. Go through each bill that comes in and ask yourself these questions. Do I really need this? Do I need it at this level? Can I get this cheaper somewhere else?

I did this a couple of years ago and shaved $150 off of my monthly expenses.

I shopped my auto insurance around and shaved $500 off my annual bill for identical coverage. If you are a Costco member, go to their site and get a quote. Phenomenal savings!

I ditched my monthly cell phone plan for a prepaid one. If you use less than 200 minutes a month, you can get it much cheaper by prepaying. I pay 10 cents a minute with T-Mobile, vs $40 per month like most people. For me that’s $10 a month in usage.

Get rid of the frills on your home phone. Call waiting and caller ID cost a fortune. So you miss a call every now and then and the caller gets a busy signal. Oh well. And while your doing that, shop for a better long distance plan. I get long distance for 3.9 cents a minute with no monthly minimums or fees. Far better then the my monopoly phone company gives me. A basic phone line and 3rd party long distance is far cheaper then these all you can eat plans from Vonage or cable or the monopoly phone company. My monthly phone bill is now usually under $20.

And speaking of cable, or satellite. Do you really need to pay for all those channels, most of which you don’t watch? Reduce the plan, or switch to their “special” for a while, and then do it again in 3 or 6 months.

If you have cable internet, look at DSL. Mine was less then half the cost so I made the switch.

Do you bank with a monster megabank? Ditch them in favor of a credit union. Credit unions provide far cheaper banking services and really shine on auto loans, and they don’t Fee you to death. If you are still making payments on a car, maybe you can refinance that loan with them and save there too.

You get the idea. Also, if you can spare the time, start listening to the Clark Howard radio show. He’s a syndicated radio consumer advocate, and he’s available as a podcast on iTunes. He’s really full of good ideas on saving money, spending wisely.

Good luck.

Lizzie asks…

How can i purchase a fairly new vehicle if my credit is not so perfect?

I’ve been looking at buying a used vehicle on credit,but i’m not having much luck.I’ve been on disability for about 10 or more years,so i really haven’t made any major purchases in a while.I now have a part time job and i have paid off a lot of my old creditors.I keep getting turned down when i go to the dealership to buy a car.I have a few children,so you can understand i don’t have a lot of money for a big down payment.What are my options?I prefer to deal with a legitimate car dealer and not these high apr dealers,that take advantage of people with bad credit,or low incomes.What are my reasonable options with my situation?

Administrator answers:

For once in my life I am NOT being a smarta$$ when I say this — save up some money and just BUY yourself a cheap, ugly car that will be dependable for a long time. Bad/slow credit deals are going to slice you up and leave you for dead. You will be paying top dollar for an average car and at least four times the going interest rate. Forget a down payment, save some bucks and find a decent car in the burbs parked in front of a house that the owner wants to move because it gets lousy gas mileage. (now think about this… You can buy lots and LOTS of gas for less than a monthly payment. Your insurance rates will also be rock bottom).
The day will come when you can buy any kind of car you desire, but only if you are out of debt.

Donna asks…

How old were you when you could afford your own first new car?

I want to get a 2012 honda civic si because I really like the interior but I feel like its a dumb move for a younger person like me to put money up like that and pay monthly bills for it. Im 17 and about to be 18 and a little after 18 I would really like to have one.
Thank you guys for the mature answers

Administrator answers:

Well, I could afford a new car anytime I wanted as they are frankly cheaper than what I used to spend on booze or coffee in a month. However, I chose to get a used car when I was 18 and i still have it 7 years later ( i bought a 1998 lincoln mark 8 with black interior/exterior for 5 thousand with 55,000 miles on it)

So if I were you then I would honestly think about a used car, you get everywhere the same and you dont have to make monthly payments. Less money for car payments = more partying and money for fun stuff.

Insurance is going to love you, when I first got my license I was paying 4-500 a month for me alone.

George asks…

How much is insurance on a golf?

Hi
Was wondering how much the insurance on a VW Golf 1.4 (59 plate) would be, I’m 17 and want to learn to drive.

Administrator answers:

Minimum £4000 a year but -
There are many factors which are used by the insurer to calculate the risk and so the premium they charge for car insurance – these are mainly;
1 Age and sex of the policyholder (who must be the Main driver, and registered keeper) and that of any additional drivers.
2. The cars age, mileage, value, insurance group, security and the companies own claims history for that vehicle
3. The occupation of the policyholder and any named drivers
4. The claims history of any drivers
5. The licence details of drivers (endorsements, length of time held)
6. Where the car is normally kept overnight (is it the policyholders address? On road is more expensive than on a drive which is more expensive than in a locked garage.
7. What use will the car be insured for, social and domestic is the minimum but if commuting and use for the policyholders business or their employers business is added the price increases. If used to commute where is the car to be parked when there – on road or in a car park.
8. Does the car have any modifications from the standard factory fresh condition like alloy wheels or performance enhancements – some insurers will refuse to cover modified cars, some will increase the price and some will cover them but only for return to standard.
You need to tell the full truth about everything asked and inform them of any changes to any of the details disclosed as the policy goes on – failing to do that can render it null and void.

Some younger drivers consider putting the car and insurance in a parents name with the parent as a fraudulent main driver and them as an occasional named driver to cut the premiums. This common scam is called “Fronting” and is an illegal act which can get parent and son/daughter into a lot of long lasting expensive troubles.

Most insurers offer a monthly payment scheme and most need about 15% up front to start the cover. The scheme is usually in the form of a loan and so interest is charged – this can be as much as 25% APR. This is usually at rate which is higher than most credit cards even charge so look at other ways to borrow the money to spread the cost if possible as it will be cheaper.

With a few minor differences these are the questions you will be asked before being given a quote. Not having supplied these details on Yahoo Answers, and who would, it is impossible to give a guess of a price for you to within even £1000 for a younger newly qualified driver.

Joseph asks…

What is a good car for a 17 year old lad?

Needs to be cheap insurance.

Administrator answers:

There is loads more to it that goes to make the price that you will pay. If the circumstances are not wroking for you then it could still be £3000 a year for the cheapest possible car to insure

There are many factors which are used by the insurer to calculate the risk and so the premium they charge for car insurance – these are mainly;
1 Age and sex of the policyholder (who must be the Main driver, and registered keeper) and that of any additional drivers.
2. The cars age, mileage, value, insurance group, security and the companies own claims history for that vehicle
3. The occupation of the policyholder and any named drivers
4. The claims history of any drivers
5. The licence details of drivers (endorsements, length of time held)
6. Where the car is normally kept overnight (is it the policyholders address? On road is more expensive than on a drive which is more expensive than in a locked garage.
7. What use will the car be insured for, social and domestic is the minimum but if commuting and use for the policyholders business or their employers business is added the price increases. If used to commute where is the car to be parked when there – on road or in a car park.
8. Does the car have any modifications from the standard factory fresh condition like alloy wheels or performance enhancements – some insurers will refuse to cover modified cars, some will increase the price and some will cover them but only for return to standard.
You need to tell the full truth about everything asked and inform them of any changes to any of the details disclosed as the policy goes on – failing to do that can render it null and void.

Some younger drivers consider putting the car and insurance in a parents name with the parent as a fraudulent main driver and them as an occasional named driver to cut the premiums. This common scam is called “Fronting” and is an illegal act which can get parent and son/daughter into a lot of long lasting expensive troubles.

Most insurers offer a monthly payment scheme and most need about 15% up front to start the cover. The scheme is usually in the form of a loan and so interest is charged – this can be as much as 25% APR. This is usually at rate which is higher than most credit cards even charge so look at other ways to borrow the money to spread the cost if possible as it will be cheaper.

Carol asks…

Can somebody give me some estimates as to how much of my monthly income to spend?

I am about to start graduate school, pretty soon i will be in the “real world”. I was just wonder, what percentage of your income should you spend on certain monthly costs?

Things like student loan repayments, mortgage, insurance.

What gets lumped together? Is a mortgage in it’s own separate “spend ~20% of your monthly income” and school loan repayment, car loan repayment and insurance lumped into another “~35% of your monthly income”?

Administrator answers:

Well there’s a lot of leeway here and a lot of adjustments you can make based on where you live and what kind of tradeoffs you’re willing to make. Here are some good budgeting rules of thumb.

Your rent/mortgage should be about 25% of your monthly income after taxes. That’s a great rule of thumb. If you live in LA or NY then you’re going to spend more of your monthly income on rent. Don’t spend more than like a third of it though, that’s retarded.

Your student loans should be locked in unless you refinance. If you refinance you’ll pay longer, the total amount will be higher, but your monthly payment will be less. Considering the fact that your loans will be forgiven no matter what the balance is after 20 years, under this new legislation, i’d just take whatever the locked in rates are. (i’m also assuming you have just stafford and perkins loans to pay, not any private ones.)

You should be saving about 10% of what you earn, too. This is above and beyond a 401K contribution. You need to have a safety net fund of about 6 months after tax income, in case something horrible happens.

Car insurance. Get the cheapest plan you can get. I’d say 100/300 is a good solid safe coverage. If you have a newer vehicle, I’d get comprehensive collision on it too. I’d get some deductable you could pay in one pay check and still cover your mortgage, utilities, loans and food for the week (so basically if you crash your car, you can pay for it in one paycheck, but you won’t be having any fun that week)

You’re going to spend money on food. You’re going to spend a lot, and that’s okay because you need food. Spend it wisely though. Go to the grocery store, get stuff that’s on sale. If you’re spending more than 33% of your after tax income on food, you’re being stupid (or your fat).

Health insurance. I hope you get it where you work if you’ve got a masters. If you’re self employed this is a whole new ball of wax. Spend as little as you can on your policy. High deductable, with a corresponding HSA is the most cost effective way to go.

Also, use your credit card for what it’s for. It’s not for buying things you can’t afford, it’s for paying for stuff between pay periods. If you get paid 2000 bucks a pay period lets say, and you run an 1800 dollar credit car balance for those two weeks, and then pay it off with your check, that’s fine.
Don’t run a balance though, that’s retarded. Credit card debt is for people who don’t make money. You’re in grad school, you’re going to make money. Spend it like a smart person!

All the best. I hope the real world turns out well for you.

Steven asks…

Why is maintaing a car so expensive?

I have never owned a car, but really, what are some of the main reasons why maintaing and owning a car is really expensive? I want to consider all the facts and what not before buying a car. Thanks for all your help!

Administrator answers:

The first 2 main cost factors are (1) monthly payments (2) insurance payment.

I’m 45 and I figure even at my age my car cost me $5k (per year) just to own and insure.
===

Then there is the cost of repair, gas, etc. The repair can be cheaper if you do much of it on your own. There are 4 most important maintenance items in your engine

(1) engine oil (3k – 5K miles)
(2) tranny oil (30K miles)
(3) coolant (3 years)
(4) timing belt (60K miles)

Just keep those maintenance and your engine and tranny will be mostly problem free. Other things will break but they can be fixed AS they are needed.

I have a 94 Civic with 187K miles and the engine + tranny + suspension runs like new. I get 41 MPG (doing 72 MPH). I can get even better MPG doing 55.

Good maintenance pays off.

Good Luck…

Thomas asks…

How much would the insurance be on a VW Beetle?

I am 17 and intrested in getting my first car a Classic VW Beelte, does any one know the price range for the insurance on one?
Many thanks

Administrator answers:

There are many factors which are used by the insurer to calculate the risk and so the premium they charge for car insurance – these are mainly;
1 Age and sex of the policyholder (who must be the Main driver, and registered keeper) and that of any additional drivers.
2. The cars age, mileage, value, insurance group, security and the companies own claims history for that vehicle
3. The occupation of the policyholder and any named drivers
4. The claims history of any drivers
5. The licence details of drivers (endorsements, length of time held)
6. Where the car is normally kept overnight (is it the policyholders address? On road is more expensive than on a drive which is more expensive than in a locked garage.
7. What use will the car be insured for, social and domestic is the minimum but if commuting and use for the policyholders business or their employers business is added the price increases. If used to commute where is the car to be parked when there – on road or in a car park.
8. Does the car have any modifications from the standard factory fresh condition like alloy wheels or performance enhancements – some insurers will refuse to cover modified cars, some will increase the price and some will cover them but only for return to standard.
You need to tell the full truth about everything asked and inform them of any changes to any of the details disclosed as the policy goes on – failing to do that can render it null and void.

Some younger drivers consider putting the car and insurance in a parents name with the parent as a fraudulent main driver and them as an occasional named driver to cut the premiums. This common scam is called “Fronting” and is an illegal act which can get parent and son/daughter into a lot of long lasting expensive troubles.

Most insurers offer a monthly payment scheme and most need about 15% up front to start the cover. The scheme is usually in the form of a loan and so interest is charged – this can be as much as 25% APR. This is usually at rate which is higher than most credit cards even charge so look at other ways to borrow the money to spread the cost if possible as it will be cheaper.

With a few minor differences these are the questions you will be asked before being given a quote. Not having supplied ALL of these details on Yahoo Answers, and who would, it is impossible to give a guess of a price for you to within even £1000 for a younger newly qualified driver.

EDIT – at 17 you will not be able to get Classic and cheap insurance and it will be insured as any other newer car would be.

Robert asks…

How much do I donate to a health clinic for their services?

I’m a college student and I needed my annual check up to get another prescription for my birth control pills. I usually just pay the enormous amount at my normal doctors, but I don’t have health insurance and wanted other (cheaper) options. I found a clinic that is income based, and they said since I was a college student with student loans, that just a donation would be fine. I really don’t know how much I should donate. Can anyone help? Like $10? or $20? More? Ugh I just don’t know.

Administrator answers:

Hello i am Mrs Janet Anderson from NYC, I SAW YOUR QUESTION ON YAHOO ANSWER AND I WANT TO GIVE YOU A FRIENDLY ADVICE OF THE KIND OF LOAN COMPANY YOU SHOULD CONTACT FOR HELP, I AND MY MUM WAS SEARCHING FOR A LOAN TO BUY A CAR AND A HOUSE ,WE HAVE TRY SO MANY PRIVATE LENDER IN AND OUTSIDE THE COUNTRY BUT NO LUCK UNTIL A FRIEND OF MY MUM LINK US UP WITH SAVILLIS PRIVATE FINANCE COMPANY(savillis.financier@live.com) they offer all kinds of loan, They also offer long Term and short term loan. They also offer to help refinance your home mortgage. If your credit is in the good to excellent range and your looking to get out of your current program they could refinance your mortgage into a fixed rate. And their interest rate is very low and you will enjoy their service because they are the only international loan company that help me and my mum with a loan to buy and house and car now will are payment back monthly , just apply with them now and you we enjoy it. (savillis.financier@live.com)Thanks.

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