Changing Car Insurances – Again!

 

Sometimes I feel like it costs a lot to save a lot.

In this case I mean the high cost of insurance to negate the high cost of a potential car incident claim.  To be specific, that is a cost of $1,100 for six months.

If you read an earlier post where I was ridiculously pleased with myself for changing insurance companies to get a better rate, then this post should seem a bit odd.  For me, finding out my insurance increased by about $300 in one period, I found it very odd.  Not accidents.  No claims. Just an increase.

When I finally realized the extreme increase, I called Progressive and said “huh wha?”  The response was that the elimination of a one time $75 discount and the rest was a general rate increase.  There is nothing general about a $300 rate increase.

Thank goodness for the creation of the modern interweb and insurance comparison sites. After checking several – including Esurance, State Farm and Geico –  I signed up with Geico for about $115 per month.  That is about $70 less per month I would have paid with Progressive had I stayed and the policies are comparable.

My guess is that going forward, I will need to shop yearly for insurance.  The companies are resetting rates quicker and higher than I have experienced in the past and I am unwilling to keep paying higher just because of “general rate increases” that have nothing to do with my personal driving record.

The good news is, getting a discount on what I was paying will make room for the new added Allowance line item in the budget.

Question – at what point do you decide to forego Comprehensive coverage form your policy?  Age of car?  Kelly Blue Book value of car?  Amount in savings account to replace the car with cash? I am curious.

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Changes!

Gimme my money, mommy!

Some changes have come and are continuing to come to the Thrifty Image household.  And that’s a good thing!  How boring would it be if everything were to stay to same?

One change?  My little one is not so little anymore.  She turned 13 last week!  THIRTEEN!  She is growing into a lovely, smart, frisky and expensive young lady.  Who am I kidding?  She has always been expensive.  Kids bring their own set of fiscal allocations plus, she eats more than any kid I have personally known!  I have had the pleasure of learning to cook for her very healthy appetite and we are both healthy and better for it!

And with that change to THIRTEEN, comes an allowance or Change (with a capital C).

Just a random insert – whenever I think of allowance, I think of these awesome and somewhat dated but moral of the story relevant videos:

My kiddo knew this was the year we were planning to start giving her an allowance.  I was very clear with her, she needed to prove she could handle it.  No falling down on the job, so to speak. No forgetting chores…no school work issues…Well, she was ready!

I had to get ready, too.  What would go in order to add an Allowance line item to the budget?  How and when would she be paid?  What would the expectations be?  Total freedom with ‘her’ money? Financial lessons on giving?

Well, I thought the best thing to do was to teach her how I spend my salary and how I manage my income.  I created a simple budget that showed her my salary in yearly, monthly and weekly amounts.

I then broke down the taxes and tax sheltered deductions giving the net amounts.  I also shared with her how I broke down the take home pay into church giving, non-variable (mortgage, savings, insurance and gasoline) and variable (food, pet expenses and power) amounts.

I shared with her my money goals and my money woes.  Yep, laid it all right there on the coffee table.  She wasn’t exactly surprised.  She has ask me my salary before and she knows that it costs to live so, not really a huge reveal.  That was to come…

Then I revealed her budget.  A Whopping $20 per month! or $10 every 2 weeks! or $5 per week!  20 crisp dollar bills also laid out on the coffee table.

I let it be her choice when she received he allowance and she chose weekly.  That proves she’s a smart cookie because in all my planning, I totally forgot about the months with the extra week.  If she had gone with monthly, she would have lost out on $10 for the year.

Her budget looks like this:

  1. Income
    • $5 per week
  2. Expenses
    • Church giving $1 per week
    • Long term savings $1 per week

I shared with her that she should consider her savings ‘gone’ and that she could save even more if she wanted to but $1 was the minimum.  She says she wants to be an aggressive saver so, we will see.

I am excited to see this next chapter in her life.  I am hopeful that she accepts this opportunity to become a smart money manager, frugal and a strong saver.  I am very hopeful she doesn’t just by cheap crap and junk food.

I don’t have a fully thought out plan on raises yet but I will get there.  It took me a long time to decide on the $20 per month.  I wanted it to be high enough to ‘mean’ something to her but not so much that it would be a distraction or something that she brags about.

She said “thank you” when I gave it to her so maybe it was the right amount after all.

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