Our car insurance for May through November will cost $366.30. That’s a lot lower than I thought it would be, and about $65 less than last time. I’m pretty happy about that, and I hope it will continue to go down as time goes on.
Anyway, we had to decide how many payments we wanted to make. For every additional payment, we’d have to pay about $4 more.
Two payments: $187.15 each for a total of $8 more
Three payments: $150.52, $113.89, $113.89 or $12 more
Four payments: $95.58 each, or $16 more
Five payments: Not an option, for some reason
Six payments: $65.05 each, or $24 more
We had to decide: Should we pay it off and just get it over with and save the most money, or make installment payments, and not have to tie up $366 all at once?
We opted to make a one-time payment. We have the money to do that right now, and it’ll be nice not to think about it again until October or so. One less payment each month means that money can go toward other goals.
And, if we do need to tap into the emergency fund from now until our next car insurance payment, we won’t have to worry about making the car insurance payment, since that’s already taken care of. So, one less thing to have to worry about.
The money isn’t due until early May, so I’m going to put it in our ING account, where it’ll grow like $1 in interest while we wait to pay it.