I just saved $24 on my car insurance! Okay, that really isn’t very exciting, but I always wanted to write about saving money on my car insurance. 

We actually didn’t change insurance companies or change our current coverage. Instead, we got smart about managing our money and stopped paying a stupid tax.

In the past, a semi-annual car insurance premium was a surprise event that we never had the money to pay for. Yeah, it wasn’t really a surprise, we were just so bad with our money that we couldn’t save enough to prepare for expenses like this. To solve that problem we switched to a monthly payment plan, but that cost us an extra $2 per month.

Now that we actually have the ability to look 6 months into the future (amazing isn’t it) we have changed to a  semi annual payment plan (saving $2 per month) and I set up an automatic transfer to a savings account with ING, which will be used to make the premium payment when it is due. Not only are we saving the $2 each month, but we will now be earning interest on our money. We are actually getting paid to plan ahead and pay our insurance now!

I know this isn’t a novel concept for most people, but for people who were completely out of control with money and unable to plan ahead, we are entering new territory. I’m sure there is someone else out there who can benefit from our mistakes.

Think about your insurance or any other irregular payments for the year and start setting aside the cash now. You won’t regret it!

By Eden, Tue 5 Feb 2008, 1 Comment, Categories: Finance, Frugality