Mar 28 2008

Saving on car insurance: We’re making a one-time payment


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.

4 Responses to “Saving on car insurance: We’re making a one-time payment”

  1. It’s always best to pay it off all at once if you can afford to. I haven’t been able to do that for a while. However, my car insurance (GEICO), cuts the installment fees if you sign up for autodebit from your bank account. It saves me about $24 a year and I don’t ever miss a payment because it’s debited automatically.

  2. I just wanted to tell you that I just signed up for e-bates and put your as my referal e-mail. I hope that gets you a bonus or something. I really appreciate the tip, with a sweet but active toddler and the price of gas it is so much cheaper to shop online for lclothes and shoes.

  3. You should’ve contact as many car insurance companies as possible in order to see who has the best deals for you. In addition, you should ask them and see what kinds of discounts they offer to you. For example, many insurance companies with web sites give discounts to anyone who signs up for insurance with them online. This is because they save money, time, and effort, which is important to any business. In addition, many insurance companies give out discounts for things such as having an excellent driving record or having safety features in your car.

  4. Hi Carly-

    I definitely did shop around for multiple quotes. Some were twice as much as my current quote; others were even three times as much!

    I’m also getting all of the discounts for which I’m eligible.

    It’s definitely worth shopping around.

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Hey! I'm Kacie, wife and mother of 3. I write about my family's finance: how we save money, improve our spending, and plan for the future.

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