Have You Checked On Your Car Insurance Lately?

Car insurance is one of those necessary evils. We all hate to pay it, but you've got to do what you've got to do. 

Now, everyone knows that your driving history effects your premiums. If you have a ticket or an accident on your record, you'll be paying more every month. However, those only last for three years. So if you've ever had a speeding violation or a traffic incident, make sure that you know the date that they will be coming off your record. 

Why is this important? Because if it comes off before your insurance policy gets renewed, you won't automatically get those savings until the next term. But, if you call them and ask them, they can adjust your policy. 

I have joint insurance with my husband, and we both have small violations coming off our record in the next two months. If I call and check in with my insurance company, I will likely be able to knock 10% or more off the cost of our premiums. 

So, if you know you've had an infraction, give your insurance company a quick call and see when it's due to come off your policy. Every little helps!

A Happy Day at the Pump

Image by Bitzcelt

Since I bought my car, I have had the hardest time dealing with the price of gas. Going from using a gallon every two weeks to ten gallons every week has made it hard to deal with tighter finances. Today, though, I was pleasantly surprised. Today I filled up my car for $26. 

Gas is now about $1.20 a gallon cheaper than it was three weeks ago. This means that everyone is probably breathing a little sigh of relief. We're also coming to the end of hurricane season (November 1st), which means that technically, things will ease up. However, it's started getting cold, which means the demand for heating oil will start to go up. 

So what does this mean? Well, it means that although we are seeing a bit of slack on gas prices, it's unlikely to hold. 

Now, if I had more money, and if I were better at keeping track of things, I would take that $10.80 that I didn't spend on gas and put it in a savings account or earmark it somehow for the future. That way, I'm still acting like I'm spending $4 a gallon on gas, but I'm putting that extra money away for when it either goes higher, or to use it when I really can't afford to fill up. 

I hope this price holds for a little longer, though, because I know that everyone could really use a break.

Patience is a Virtue

I'm being patient right now. very patient because I have two checks that are "on the way" to me. Once I have received them, I can write and mail the final car payment, and I'll have $200 a month off my minimum payment list.. reducing it by about 47%. I want those checks so badly. I can't wait. I'm so antsy.
It's hard being patient when you are so close that you can practically smell it. It's also difficult because I have absolutely zero control about when these checks will arrive. One is a week overdue and one is two days overdue. I know they will probably both come at the same time and there will be much rejoicing.
I'm also excited because yesterday my husband and I agreed to work on some joint savings, something which we have not done yet. We're putting away money for future travel, and eventually for a house. It's a big step for him since he has never been much of a saver. I'm really proud of him for deciding to do this. I know that this will make me feel very good when I see us working towards a financial goal together.
And so I will remain patient, and I will continue to check my mail obsessively until those checks come!

The Atlanta Gas "Crisis"

Image by Cindy47452

As far as I know, this has been going on in other places in the country too. 

Right now, Atlanta is out of gas. There are a few gas stations here and there that have some, and then it runs out while people are lined up. 

This is a very frustrating situation for everyone because you have to drive around looking for gas, and then you have to wait in line. 

Last week, we had a day where I had no gas, but he had some, so that day we took the gas can out, found gas, put it in the can, took it to my car, put it in my car, then I went and filled up the car. 

Today, I was almost out, he has no gas in his car and very little in his scooter. So, we went and did the same thing again. We drove part way across town to a gas station, got in line, waited for twenty minutes, and the station ran out while we were there. 

So we then went, on fumes of course, a few more miles until we found another station, waited in line again, and filled up my car all the way and the gas can too. So we have a gallon for his scooter and he'll just keep his car parked for now. 

So here are my issues:

- We wasted probably a gallon of gas getting the gas

- I had to fill my car up all the way, which is very expensive and makes my car heavy

- There are hundreds of people in the city idling their cars while they wait for gas, which is bad for the environment. 

- Supply is completely unreliable and there is no apparent system for distribution

- We are way too dependent on gas

It's this last one that drives me nuts. When I had my scooter, I got around on a gallon of gas every two weeks. Now with me car, I am dependent on filling up with gas every week or two. My gas consumption has increased tenfold. I wish so much that I was ready to get back on a scooter again, or that I was at least financially capable of purchasing one. 

I also wish that SUV's didn't exist. I know that is harsh, and they have their uses, but I bet that most of the people that are driving them really don't need to, and they waste so much fuel with their size. I look forward to the day when there is some kind of regulation about new cars being required to get a certain mpg. I know that I will always drive small cars. 

What are your thoughts? Does this situation drive you nuts, too? 

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Why I Won't Buy a Hybrid.... Yet

There was a really fantastic article on Yahoo! today by Noah Buhayar and Bryan Palmintier outlining the savings gained by Hybrid cars now that gas is over $4 a gallon. 

Ever since I got rid of my car and bought a scooter, I have been fine with us being a one car family. Our old Volkswagen Golf is on it's last legs and if we were to buy a car, a Hybrid would definitely be at the top of the list because of the efficiency. There are a few reasons why I am a little reluctant to take the plunge, though. 

One of the arguments for Hybrids is the tax credit that comes with it. Back in 2005 an energy act was passed which gave purchasers substantial tax credits for buying a Hybrid car. However, these were only valid for the first 60,000 cars sold by each manufacturer. The highest performing Hybrid right now is the Toyota Prius. All the tax credits for this car are gone. If you looking for a tax credit, you are left with Hybrids from General Motors and Nissan.

Hybrid cars are not appearing on the market as used cars frequently, and when they do the resale value for these cars is very high. This isn't entirely surprising, as it makes sense that people would choose to keep these cars and that they would hold their value, but as the cost of a new Hybrid is normally around $20,000 it is likely that purchasing one would involve taking out an interest bearing loan. 

Now the math for my family. We drive, on average, no more than 15 miles in a day. That is our maximum. Add in a couple of road trips a year that might tack on an extra 400 miles makes our mileage total about 5,875 miles per year. This is much less than the national average, which is over 12,000 miles per year. 

Our current car gets approximately 26mpg according to the internet, and the Toyota Prius gets an average of 46mpg. 

Golf - 226 gallons of gas a year

Prius - 128 gallons of gas per year. 

Thats a saving of 98 gallons. At an average of $4 a gallon, we would save $392 per year.

If we took out a loan for a $23,000 car at 7% interest, we would be paying over $1,000 in interest per year. Unless we bought the car with cash, then for my family we would be paying more in interest on a new car than we would be saving in gas. If we started driving a lot more, it would be a more viable option, but as we both work within five miles of our job this is unlikely. 

It's important to really crunch the numbers for your family before making the decision to buy any new car and particularly a Hybrid. They are great cars and I am hoping that their new sales price will drop significantly over time. I'm a "Green" person and I like the idea of being more fuel efficient, but I am also a financially analytical person. I have a scooter that has much better fuel efficiency than a car, as does my husband. So for now, we'll drive our car less, our scooters more, and wait for the prices to drop.