You’ve probably always been interested in lowering your monthly payments, but it may have taken on a new urgency recently. The good news is that there are a number of ways that you might be able to save money every month. Here are some tips on cutting the costs of payments related to your car.
It’s required that most drivers carry auto insurance, but it can result in a high monthly or annual premium. Because many people are driving less these days, some auto insurance companies have announced reductions in premiums, or even rebates to customers. The amounts can vary from state to state, and from person to person, so you may need to contact the company or your agent in order to find out how much you might be able to save.
Those only represent temporary discounts, though. If you’re looking for a more long-lasting reduction, you can often find a lower premium by switching to a different insurance company, with the help of a site that compares rate quotes from a variety of carriers. It’s also a good idea to review your policy and make sure you’re not paying for coverage that you don’t need — your insurance agent, or an online tool, can help you with this.
Refinancing Your Auto Loan
Refinancing a loan isn’t just for mortgages. If your existing auto loan is at a high interest rate, it might make sense to refinance. Refinancing your loan could allow you to pay a lower interest rate, alter the length of your loan, or both. This may result in a lower monthly payment, or in being able to pay off your loan sooner. A qualified loan agent will be able to look at your current situation and discuss your refinancing options.
When your car breaks down, it’s often a major unexpected expense. Your car’s factory warranty doesn’t last forever, and once it expires, you’re on your own for the cost of most repairs. Extended auto warranties are available for most cars, even older models. For a fixed monthly fee, if you have a breakdown, the auto warranty company will refer you to a qualified mechanic, and you will usually have no out-of-pocket expense for the covered repair.