Cheap Monthly Car Insurance

Questions and Answers

Your Questions About Cheap Monthly Car Insurance Payments

June 8, 2013

George asks…

Is there a fee for canceling a safe auto insurance policy?

I got a car, and got it insured through safe auto. 2 days later I totaled my car. Now I’m obviously poor (I mean c’mon.. I have safe auto lol) so I’m basically wasting money that I don’t even have to pay my damn insurance bill. So if I were to cancel out the policy, what would the repercussions be?

Administrator answers:

You do not have to continue to pay for insurance after your car has been totaled……Unless, you have one of those “rip-off” deals where the insurance company “loans” you a years insurance premiums and then allows you to pay it back to them by the month. If you have one of those goofy set ups, then you have to keep paying until the “loan” is paid off.

It is always cheaper and better to buy and pay for your insurance in advance with either a 6 month or 12 month premium. Stay away from monthly insurance payments…

Chris asks…

Help to choose the best way for commuting?

I need to go to cleveland every ONE month from Fortwane, IN. The average driving hours between two cities might be 6 hrs.

Other than this, I don’t need a car for any other purpose.

The average flight cost, I guess, is $350 for round trip each time, plus other transportation fee.

I heard there is a lot of money in maintaining a car.

Should I: buy a second hand car; rent car; or go by flight?

Administrator answers:

I think it depends on how long you’re going to be in Cleveland each time, and how many times you have to go there.

I used to travel all the time for work (2 to 3 times a week), and I always figured that unless I could get a non-stop flight, a six hour drive was as fast as flying, once you figured in getting to the airport early, layovers, actually getting where you want to go once you get to the airport, etc.

One-way car rentals can be expensive, so if you’re only going to be in Cleveland for less than a week, it will probably be cheaper to rent the car in Ft. Wayne, park it for a couple of days in Cleveland, and then drive it back. You’ll need to talk to the rental companies directly to see about the cost (including insurance-I’m assuming you don’t have insurance, and will need to buy it from the rental company).

Buying a car just for this probably doesn’t make a lot of sense, unless it looks like this monthly trip is going to be pretty much a permanent part of your life. You’ll have either a big outlay of cash, or monthly payments, plus insurance, plus you’d be on the hook for any repairs that need to be done.

What I would probably do, if I could get flights for $350 round trip, would be to fly in the winter (I’d rather be stuck in the Cincinnati airport than out on the interstate if the weather gets bad), and rent a car once it gets to be springtime.

Linda asks…

What has your family done to try to curve expenditures or increase savings?

I’m looking for collective participation unless you are a family of one.
Your efforts may be what someone else is looking for to solve a problem.
Thanks on word change but typing error more than anything.

Administrator answers:

Not much changed… But then again I have been living within my means for a very long time.

Cars…. Never buy new. Sorry… It does not make any sense to me to have a monthly car payment, huge insurance payment and on top of that have to keep up with dictated maintenance to keep the warranty in good standing.

Instead I buy used… But am careful on the “how used”. Always have a designated savings account to cover car repairs and start saving for the next used car. Drive my used cars until they can’t be smogged anymore. The last one was a 1989 Ford Taurus… He just passed smog last year but then was totaled by another car. (Parked on side of the road, parked car above me popped out of gear, rolled backwards and obliterated my front end). Financially…. No harm done. I bought the Taurus in 2000 for $1500 and still got $1300 from the other guys insurance company.

Credit Cards… They are a means to establish credit and get a high credit score. Meaning: I don’t ever use more than 10% of my credit card limit and then pay off. I really don’t need a credit card… But in the game of credit the revolving credit account, if handled right, brings in the highest score on your credit rating.

Loans… Unless it is a mortgage there is no need for them. Start paying to yourself and save up for large purchases.
I have been watching the “entitlement philosophy” for years and am shaking my head. The “I have to have it now….” attitude is what got us into this mess.

More than 10% of my net income goes into savings automatically. I have learned to live with the rest for a long time.
Of course I contribute to 401K but that doesn’t mean I am totally oblivious to what goes on on the financial market. I have cashed out IRA’s last year before the market crashed. The way I look at it: I can either pay taxes or watch my money disintegrate. I chose to pay the taxes and put the money in savings accounts and CD’s.
The 401K is only 2 years old… It is accumulating stocks at a cheap price and I am not worried about how much it is losing in dollar value..
I can wait it out, see it go up again and sell the stocks and move everything into money market accounts before the next 7 year crash).

Do we live any different? Yes… We spend more time at home and on the internet instead of going out and spending money.
Grocery shopping is done with a list and only once a week.

Do I really need to do this? No… But I am trying to have an extensive emergency fund and that fund is growing. Nobody is safe from losing their job… But I can at least make sure that my family will be able to pay the bills for a very long time… This way I can have the needed time to find a new job if I had to.

I propably won’t have to look for a new job. The way to secure my current one… Is by taking on new duties and not being afraid to step out of my job and into somebody elses. The most valuable employee is the one that can do more than one job and isn’t afraid to take on new responsibilities…

But never think that you are safe… The only thing you can control is your own affairs. Be prepared for the unimaginable and you will sleep well at night knowing that you have the funds to cover a job loss.

Robert asks…

What is your fixed budget for a month?

If you lost your job, how much money would you need to make to survive and pay all your fixed bills and expenses?

I am talking about food, rent, utilities, fixed bills, car payment, etc.

If unemployment paid 50% of you income, how short would you be?

Administrator answers:

Rent – $250
power – $40 to $150 (depending on the season)
town – $25
groceries – at least $250/month
car payment & ins – $300

right now, i am making $800/month at one job,

enough to cover health insurance at another ($35/wk),

and i am also a personal fitness trainer and i train clients when the gym opens at 7:00am until i go in at 9:00am and again when i get off work at 4:00 until my last client (mind you, i don’t ALWAYS have clients during these times; right now i only have 4).

I average $125 – $200 extra a month with my training.

So, that’s $800 + about $200 = apporox $1000/month

my bills come out to about $950 – $975/month

so, no. Even if unemployment paid 50% of my income, i would definately not be able to make it.

I barely make it now.

But i am prayin for better days ahead; i am putting in for a job as a jailer, paying double what i make now, and will still try to maintain some openings for clients if i get the job.

Other than that, there are no other jobs around here in the small town where i live. Job closings left and right.

Wish me luck!!

Oh, and an answerer above said something about a prepaid phone plan being “cheaper”, but they aren’t cheaper. I know b/c i am a us cellular employee, and these packages are mainly for people with poor credit or have had a plan with that particular company before and failed to pay the monthly phone bills on time or at all. You actually come out better with a contract plan with the least minutes than you do a prepaid plan. Just wanted to throw that in for ya!!

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