How to Make it Easier to Pay Back Your Loan and Insurance at the Same Time

You dont have to choose between paying off a car and having insurance. There are ways to pay for both simultaneously and enjoy your car, knowing that its safe from accident damage and theft. If you want to know how to put a few hundred dollars back into your pocket each month, here are some financial strategies that can help you pay your insurance and your car loan without compromising on either of them.

Dont Be Tempted to Compromise on Insurance

The thing about taking out a car loan is that you will have to make those monthly payments whether youre driving the car or not. This means that should your car get stolen or written off in an accident, you will still be held responsible for the payments. This is why car insurance is non-negotiable when youre paying off a car, because you dont want to be paying for something you cant use.

Bundle Your Insurance Payments

Communication with your insurance holder is a must! Insurance companies want to retain their customers at all costs, so negotiating with them is always an open option if you need some advice or relief. One way to do this is to consolidate your insurance payments. Bundle your auto and renters insurance to save money and relieve your monthly expenses.

Find an insurance company that can take on all of your insurance obligations and combine them all in one easy payment thats lower than the accumulative payments of separate policies. Whether it's renters insurance, pet insurance, car insurance, or home insurance, you can potentially save hundreds of dollars by having one insurer for all.

Budget Well

Its so important to track your spending when youve obligated yourself to pay off a car loan. Living within your means based on how much income youre bringing in each month is an important life skill that many lack, so dont fall into the trap of just spending without taking a long and regular look at where your money is going.

There are plenty of apps that can help you budget well if youre a stranger to drawing up your own budget. Here are some tips to keep in mind when you budget.

• Be strict about disposable income. If youre paying off a loan and your insurance, see these two payments as priorities and lower your entertainment spending if necessary.
• Use bonuses wisely. If you get a cash gift or a work bonus, put it away for tough months instead of spending it frivolously.
• Be honest about your income. If youre simply not earning enough to pay your expenses, either renegotiate what those expenses are or find a way to earn more.

Be a Proactive Saver

Saving is a great way to ensure that you can meet your financial obligations when times get tough. Surprise expenses happen all throughout the year, and having some funds to meet these expenses will set you up for financial success.

Always set aside as much as you can and put that money away for car maintenance so that your insurance premiums arent affected. Replacing your tires, taking your car in for a service, or having to replace a crucial car part is all part of owning a car. So keep some money aside, because chances are you will need it sooner or later.

Shop Around - Change Your Insurer

Insurance companies in the US are highly competitive, and most will happily negotiate your premiums to retain you as a paying customer. Sometimes, its worth shopping around for a new insurer to make sure youre paying the best premium. But to do this, you also need to bear in mind the benefits youre getting for the payments youre making.

Call a few competing insurance companies and ask them to send you a quote. If you find thatrelative to the benefits and coverageother insurance companies are offering you a much lower premium than what youre paying, call your policyholder and ask them to re-quote you based on your cars current age, condition, and mileage.

If necessary, change your insurance company to one that offers you a better deal. More often than not, your current insurer will try their best to retain your business, but if not, dont be shy about switching.

Final Thoughts

These tips are basic financial lessons that everyone needs to learn at some point. The question is, will you learn the hard way, or will you be proactive in how you manage your money? Remember, having car insurance is a priority, and you should never drive yours unless youre covered. Having the financial knowledge to pay for that insurance will keep your investment safe and allow you to do life without having to break the bank when the unexpected does happen.