Cheap Monthly Car Insurance

Questions and Answers

Your Questions About Cheap Monthly Car Insurance Payments

April 30, 2013

Betty asks…

How do you manage to pay your monthly bills and also enjoy eating out and etc.?

Does anyone have any tips on saving money? How do you save your money? What do you do and not do?

Administrator answers:

I agree with aecruiser about controlling your money vs. Letting your money control you. I do something similar in that I pay myself first (through savings both to a savings account and my fully funded 401k). I have credit cards, but don’t use them. I do buy some things that I don’t need, but they are planned for in advance. (For example, I have a 52″ LCD TV that I paid cash for — watching TV and movies at home is important to me).

I look for both big and little ways to save money. I don’t have a cell phone. I pay cash for cars so that I don’t have a car payment (I drive older cars). I shop for insurance every year (companies have no loyalty to you and they don’t work to keep your business). I maintain excellent credit so that when I need it, it is both available and cheap. I don’t usually buy soft drinks or coffee at convenience stores or coffee shops (that doesn’t mean that I don’t appreciate a good cup of joe, I just make it at home). I am very, very careful about signing up for anything with a monthly payment. No payments are deducted from my accounts without me clicking a button or writing a check.

Part of our entertainment budget is for going out to dinner. I enjoy a good meal out, but I am aware of what my budget is and how often I can do it. Gift giving and charity giving is both carefully planned so that impulse decisions are not made.

Vacations are carefully planned in advance to avoid excessive spending there.

It is constant work, constant vigilance against spending money wastefully.

Paul asks…

What is the Cheapest Car Insurance For Young Driver?

18 Year Old, Male, Vauxhall Corsa 16V (1.2) Worth £1000, Full License Held for 2 Month, Access To Company Vehicle (Ex Personal Use), Mileage up to 5000 per year, No PASS PLUS, Social Use and kept on a public road.

Administrator answers:

Expect £2500 plus. There are no magic cheaper for teens companies out there. Company vehicle, on company cover at 18 – that is costing someone a hell f a lot of dosh.
There are many factors which are used by the insurer to calculate the risk and so the premium they charge for car insurance, you have given a few but not enough – 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.

Maria asks…

How well can u live at 10$ an hour in a 460$ a month appartment?

Just an estimation.
Say they have a used car already by the time they start living there, and they will only get cheap 15$ a month dsl for internet, and no cable television or satalite television.
It’ll be one person living there.

Administrator answers:

Most financial experts agree that you should spend no more than 30% of your income on rent and renters insurance (or a morgage and home insurance) and no more than 20% of your income on all transportation requirements (car payment, gas, insurance, maintenance.)
As long as you are working full time you are well within the limits, see below:
10X40(hours worked in a week)=400X52(weeks in a year)=20800/12(months in a year)=1733.33(amount made per month before taxes)
460(rent)/1733.33(monthly pay)=27%

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