Cars Archives — Beating Broke

Our Experience Bypassing Auto Insurance

April 4, 2022 By MelissaB Leave a Comment

A few years ago, my husband and I decided to travel with our then three-year-old to visit my alma mater. We were driving around, seeing the sites when we were rear-ended. The driver, a man in his thirties like us, was apologetic and gave us his license, name, and number. And then he said that he wanted to pay for the damages himself, bypassing auto insurance.

Our Experience Bypassing Auto Insurance

I don’t know the details of why this man wanted to bypass auto insurance. I assumed he already had some claims on his insurance and didn’t want to add more. Not only would that raise the price of his insurance, but if he had several claims on his insurance in a short time, his insurance company might drop his coverage.

My husband and I lived five hours from my alma mater, so all communication was done via phone.

Getting an Estimate

I went to a local repair shop and got an estimate for the damage. The total came to $1,462. I got a copy of the receipt and sent it to the man who hit us.

He didn’t ask for a second opinion. He accepted the quote and promptly sent me a check. However, when I received the payment, he had transversed his numbers and sent us $1,642, $180 more than the estimate.

I notified him about the overpayment, but he didn’t want to hassle with anything. He told me to keep the extra money. At this point, I think he just wanted to get the repair done.

We Were Lucky

Looking back, the man who rear-ended us was lucky because my husband and I are honest. I knew that the man was trusting us, so I went to a shop we had used for repairs before and that I trusted. I didn’t try to milk the man for more money.

We were lucky because the man who hit us was motivated to keep this accident off his insurance record and get the process over and done with. He paid us promptly.

Would I Do It Again?

Would I bypass auto insurance again? It depends. I recognize that I could have had an issue with the man not paying, but I didn’t. He was honest.

Still, when you bypass auto insurance, you take a risk. If I just had a minor fender bender, I may take that risk again. However, I would write down the other driver’s auto insurance company and policy number, so I would have recourse if he failed to pay.

If the accident was more than a fender bender, no, I would not bypass auto insurance. The repair cost would likely be higher than a thousand dollars, and I wouldn’t want to risk losing that much money. Also, a more significant accident would require calling the police. Then an insurance claim would need to be filed.

Have you ever bypassed auto insurance? If so, what was your experience?

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MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in Arizona where she dislikes the summer heat but loves the natural beauty of the area.

www.momsplans.com/

6 Items You Should Never Pay Full Price For

December 6, 2021 By MelissaB Leave a Comment

When I graduated from college and came back to live at home for a few years, I went with my mom to the furniture store to buy a bed, dresser, and desk set. We found one that I loved. However, I was embarrassed when my mom started haggling with the salesperson. She haggled for about 10 minutes, and in the end, she got 15% off the set. Turns out my mom knew something I, as a young person in my 20s, didn’t—there are certain items you should never pay full price for.

New Furniture

As per my experience, you should never pay full price for furniture. To save money on furniture, use these tactics:

Shop in Winter or the End of Summer

Furniture stores get their inventory in the spring and fall, so they will be looking to get rid of older pieces and be more willing to negotiate. (I bought my furniture in January.)

Go to Smaller Furniture Stores

You won’t be able to negotiate at a big store like Ikea. However, if you visit a small, local furniture store or chain, the salesperson will likely negotiate with you.

Shop Clearance Items

Most furniture stores have a clearance section. They want to get rid of those items, so you may have even more negotiating power if you shop clearance.

Buy Used Furniture

Of course, buying new furniture isn’t the only way to go. You can save much more if you’re open to buying used furniture. For instance, I was driving through a neighborhood one day when I saw a dining room table as part of a garage sale. That table was only $50 and included the table, leaves, and four chairs. It has lasted us for 10 years, though we’re due to replace it sometime soon.

In addition to garage sales, you can find good used furniture advertised on Craigslist and at second-hand shops. You’ll pay only a fraction of the new price.

Hotel Rooms

You can save on hotel rooms in a variety of ways.

Use Online Tools

Many online tools can help you pay less for a hotel room. Consider using Kayak, Expedia, or Priceline.

Use Your Membership

Do you belong to AARP, AAA, or the military? If so, mention that when you check in, and you will likely get a discount.

Avoid Hotel Rooms

Another option is to bypass hotel rooms altogether. You may find that vacation rentals are cheaper than hotel rooms, especially if you have a large family.

Rental Cars

Rental cars are a necessity, but the price can add up quickly, especially when you add optional insurance coverage. Luckily, you can use these strategies to save.

Book in Advance

The earlier you can reserve your rental car, the less you’ll pay. Our family had to rent a minivan for a trip, and we booked three months in advance. As the day got closer to our day to pick up the van, I was astonished to see how much the price went up. We easily saved 20% by booking in advance. Most reservations are non-binding, so booking in advance is a low-risk proposition.

Use Your Costco Membership

If you have a Costco membership, use their travel tab online and make your reservation through Costco’s website. You’ll pay the least amount of money with your Costco card. That’s the only way we book rental cars now.

Don’t Rent at the Airport

Most people get off the plane and go right to the airport rental car desk. Sure, doing so is convenient, but you’re paying extra for that perk. You’ll likely save more if you take an Uber or Lyft to a rental car location a few miles from the airport.

Use Your Credit Card for Insurance

One of the costly fees when renting a car is to pay for the daily insurance. Before you rent the car, call your credit card company and see if they offer primary insurance on rental cars when you use their card to pay for the rental. If so, you could save a bundle by opting out of insurance.

Vehicles

In the market for a new car? Get ready to haggle because you don’t want to pay full price for a vehicle. The car will likely be listed with the MSRP (Manufacturer’s Retail Sales Price). However, to negotiate successfully, you’ll also need to know roughly how much the dealer paid for the vehicle. Then, you’re ready to negotiate. Consumer Reports has an excellent tutorial on how to negotiate with a car dealership.

One caveat: the used and new car markets are strained due to the pandemic, so we’re in a seller’s market. You may not be able to negotiate as successfully as if there wasn’t a supply chain shortage and an increase in demand.

School Supplies

Items You Should Never Pay Full Price For — Photo by Kelly Sikkema on Unsplash

Our family never pays full price for school supplies. Instead, we buy an excess of school supplies in July and August when they’re dirt cheap. Then, when we need glue, or scissors, or paper, or a notebook some other time in the year, we just reach into our stockpile. By shopping like this, you can easily get school supplies for 90% off the retail price.

Mattresses

Look to buy a mattress during the major holidays and Black Friday. They will often be offered for 10 to 20% off. Also, just like furniture, you can save a bundle if you buy right as the new season’s mattresses arrive. That means if you buy last season’s model in April, you should save a significant percentage because the store wants to make room for the new models. You can also try to negotiate with the salesperson to save a bit more.

Final Thoughts

If you’re in the market for these items you should never pay full price for, I hope you can use these tactics to save money. Many of these items are big-ticket items, so the more you can save, the better.

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MelissaB

www.momsplans.com/

Car Buying Tips for New Parents

May 30, 2021 By Justin Weinger Leave a Comment

Whether you’re expecting for the very first time or already have your newborn in your arms, moms and dads are super busy all of the time. From preparing the baby’s room to making sure you have enough diapers and getting into a routine as new parents to childproofing the house for the day your newborn becomes a toddler, a lot is going on.

Now you need to purchase a new car and want to make sure that it’s safe and secure for your bundle of joy. Now that you have your credit union car loan in your hand, it’s time to determine what the safest car out there is for your family.

Check Safety Ratings

As a parent, it’s your responsibility to keep your child safe, in and out of the car. Make sure that you check car safety ratings through NHTSA and IIHS before deciding which is the best family car for you. These sites can help you compile a list of the safest vehicles on the market today, and then you can narrow it down and choose from that list. It’s also essential to determine which safety features are the most important for you, such as Onstar. Check the safety ratings of cars just as you check reviews and the durability of the car seat you choose to transport your child in; both are important.

Choose the Right Interior Design

When selecting a new or used car to drive your baby around town in, interior design is extremely important. For example, when you have a newborn, you need enough clearance between the front and back seats to install the rear-facing car seat that is required by law. It’s also important for whoever is riding in the backseat with your child to have enough room to maneuver and still be able to properly fasten and wear their seatbelt. In other words, a sports car and a baby really don’t mix if you want room and safety.

Always Check for Trunk Space

When you have a newborn, you have a ton of stuff to take with you everywhere you go. Whether you’re traveling to your parent’s house in another town or just going to the grocery store, babies need lots of things. That’s why it’s vital for any car you choose to have plenty of cargo and trunk space.

The last thing you want is to head out on a six-hour ride with everything crammed into the backseat of the car and a cranky newborn in tow. A good rule of thumb to follow is if the stroller refuses to fit in the trunk, it’s not the right family car for you and your expanding family. You don’t want to stack things in the car because it makes it hard to see out of the back window, and if something falls, it could easily injure your baby or cause an accident.

Overall Value

Of course, as a new parent, you have to purchase a car that fits into your budget. However, you don’t want to sacrifice safety for a lower price. Concentrate on safety first, then your budget afterward. Make sure to check the mileage on the car and determine if it’s good on gas or a gas hog to begin with, then go from there when making your final decision.

These are just a few tips to help you find the right vehicle for your family when you have a newborn or a baby on the way. Safety is a top priority, and then you can start looking for something you can drive for years to come.