Sunday, April 10, 2016

Updates from the Frugal Workshop


This is a photo my daughter took on her Spring Break. They had just gotten off the ship in Nassau. Her grandmother took her on a Carnival cruise to the Bahamas as an early graduation present. 

My Spring Break was a little disappointing because I came down with a stomach virus, which lasted about five days, which explains my absence from my blog. 

Anyway, my daughter got her drivers license this week and we have been car shopping everyday after school. She finally settled on this one:



It is a Ford Fiesta that gets 40 miles to the gallon, which will help a great deal as she starts college this fall. I'm very happy to report that we were able to pay cash in full for the car, so she will have no car payments.


Yesterday we spent the day decluttering around the house and took off a carload of garbage to the dump and donated items to our local charity shop. Afterwards we cleaned the house, including laundry, and getting ready for the work/school week. Other than that we spent the whole day at home, which felt great after car shopping all week. 

One thing I noticed when car shopping was the fact that many cars had almost 100,000 miles on them, which to me was a sure sign of the economic times. People are holding onto their cars much longer than they used to hold onto them. I know I held onto my last car for 15 years and it had over 200,000 miles on it when I replaced it with a newer one for work. I still have the old car, which I use to haul off garbage. 

This week I will be adding another car to my auto insurance policy or getting a policy for my daughter all her own. I will do a price comparison in the office to see which one will save us the most money. I've already seen an increase in price of $200 when I added her last week after she received her driver's license. Any advice from those who have been through this already will be very welcome. 

Thank you for reading,


Belinda
~ Living within my means in Southern Tennessee ~

Earn with Swagbucks

20 comments :

  1. I live in PA so don't know if that makes a difference but our car insurance for my dd is close to $1,0000 per year on a 2012 cruz with her on our insurance. Thank God only three cars in our name with four drivers because with adding my son it would have been ugly. I also have the max insurance, probably over insured but if either kid would be in a car accident, I won't lose my home. Cheryl





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    1. Thank you for the information, Cheryl. The $1,000 you are paying sounds about right. The $200 I mentioned is for three months, so around $800 per year and that is on my car. I will find out what it will be with her car added this week. I have full coverage too as I fell like you do, I don't want to lose my home in a car accident.

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  2. My DD has her car ins bundled onto mine, BUT she has to reimburse me for it, she is also 23 y. o. As far as my experience with rates, get a quote for combined home/auto. After years with company A, and never a claim, I saved significant money by going with Progressive. Review what you are paying for: the 3rd car (the trash run one) is it really worth it? how much are you paying on taxes and ins just for the convenience of a dump run vehicle? Can you buy Weathertech mats to protect the trunk if that is the concern? use an old, plastic shower curtain to line the trunk of your newer car? How much are you declaring for usage on that vehicle? is it covered as "partial use"? Compare costs of the policy when you tweak the deductible. I carry an amount I am comfortable with, others may choose a lower deductible, paying a higher premium as a result. How many miles are on your good car? how old is it? while you can still carry a high liability rider, depending on mileage/age, you may wish to consider dropping collision. Again, this is personal to each individual's situation and comfort level.
    Awesome that you could get a car,paying cash. No loan is the way to go.

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    1. My car is a 2014 with 30K, so I feel like I need to keep full coverage on it for now. It is also paid for. I have thought about dropping the coverage on the older car we use for trash. I also have my Mom on both cars, so I may drop her as well since she has not driven in over one year. Thank you for all your advice on this Carol. You brought up several great points, which I will bring with me to the Ins. company this week.

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    2. Agree: 2014 with low miles-fully insure it. Id drop your mom off of your policy, sell the clunker and drop that off your policy of course. Good luck with whatever you decide to do!

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  3. What an exciting time in your daughter's life! It sounds like you have the right plan for insurance shopping. Look at other insurance companies for your daughter, too, if that's a possibility. Is the car in her name as owner? When my son bought his car (he was a bit older than your daughter, he was in his early 20s), he compared our company to others, and found he could get a better rate through another insurer.

    Will Bailey live at home next year, and commute? Belinda, can you believe that you will have a college student child? How time flies!

    In addition to people hanging onto their cars longer, I think cars are built to last longer, too. Our "good" car has well over 100,000 miles on it, and I would still consider driving it on a long-distance trip.

    I'm sorry you were so sick all week. At least you didn't have to miss out on work opportunities due to illness, if there is a bright side to being sick ever.

    Have a great week!

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    1. Thank you so much, Lili. We did put the car in her name since she is 18 years old now. I figured that was the best way to go. She will live at home next year and commute, so I was glad we were able to get a car with good gas mileage for that reason. I am very excited for her going to this next stage in life. It is so exciting.

      My brother in law who is a certified mechanic says the same thing about cars lasting longer. His boss has one ready to turn over to 400,000 because he has kept is so well maintained.

      I hope you have a great week too. :)

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    2. I beat you Lili, we have a 2004 Honda civic that has over 230,000 miles on it and has a few scraps and my ds even backed into a trailer hitch making a hole in the bumper. That poor car is held together by me praying and just plain luck. Cheryl

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    3. Cheryl, it's good to hear of a car lasting that long. Our's has to "make it" another 4 years, and a couple of long-distance road trips.

      Belinda, I don't know if I'm keeping our car well-maintained, but I do take care of any issue that is flagged for me when I have regular service done. And I think that does help. Your BIL's bosses car's mileage is astoundingly awesome!

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  4. If the car is her name she would need her own policy and can't be on your insurance. That being said, since she is female the rates on her own won't be as bad as a male under 25 years would be. Trust me.....I have 2 sons. lolz

    Remember too that when Obama did that "Cash for Cars" thing many used cars were taken off the market, leading to a deficit of used cars for people to choose from.

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    1. I remember that, Sluggy. My brother in law the mechanic says the used car market is lacking in cars because of that program. Good to know about putting the car in her name with the insurance company. Thank you. :)

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  5. Another thought: is she eligible for any discounted auto policies thru her college? Not that the college would be the insurer, but as a perk, some schools have discounted programs. Worth a phone call.

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    1. I will definitely check that out, Carol. Good idea.

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  6. Hi Belinda, I'm glad you are feeling better now. Some insurers do give a "good student" insurance discount. :)
    I hope you have a wonderful week.
    Ellie

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    1. Thank you, Ellie. I did ask about the good student discount, but was told that now that she is 18 years old they no longer offer those. Only to 16 and 17 year olds, but it was worth asking about.

      I hope you have wonderful week too. :)

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  7. Update: I went today and did have to get my daughter her own policy and it worked out to about $125 a month, so not too bad for an 18 year old. They would not drop my Mom since she lives with us and still has a driver's license even though she has not driven in about 4 years. I would have to get her to change the license to an ID and Mom is not ready to do that yet.

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  8. My dd always had her own auto policy. I don't play well with others, haha! We have never been on the same cell phone account either. I just felt it was easier for everyone to pay for their own and certain members in this household (not dd), get mad at a carrier and move on to a different one so I never wanted the hassle. My dd is now married anyway and she and her dh have different cell phone carriers. It all works out in the end.

    I imagine your dd had a fabulous trip and what a great graduation gift. Then a car the next week. That girl must be over the moon right about now.

    Glad you are feeling better. Stomach bugs are just the worst.

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    1. Thank you, Mary Lou. I am feeling so much better. Yes, dd is over the moon right now. She is just so thrilled to be starting this new chapter of her life. And I am with you, I put the car in her name because it's just easier that way. It's hard to separate names off of something at a later date if that makes any sense. She knows she has to get a job this summer and pay for her Insurance. It's all a part of growing up. :)

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  9. Hi Belinda,
    Sorry you caught a bug. Glad you are feeling better. I am so excited for you and your daughter. Trips and cars oh my! It looks like your savings has paid off. How wonderful to be able launch your daughter into life with a dependable,cute,shiny,fun car.
    I am really proud of you,good job.
    I hope the rest of your week is great.
    Blessings,
    Patti

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    1. Thank you, Patti. I appreciate your kind words so much. I am so tickled for my daughter to beginning this new stage in her life. I hope you have a wonderful week too. :)

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