Four Moves to Curb Your Car Insurance

You buy any kind of insurance to cover those costs you could not cover out of pocket. But there’s no need to pay more for it than necessary. Here are four ways to curb car coverage.

Comparison shop and pump discounts—It’s easy to let your current policy ride but you likely are missing better deals. Once a year shop your policy around and see if a different insurer offers the same coverage for lower premiums. Be sure to ask about and use any discounts you might be eligible for: safe driver, low mileage, good student/s, multiple cars, use of safety equipment like antilock brakes. And of course, it will cost less if you bundle car coverage with your homeowner policy, too.

Boost deductibles—Share some of the insurance burden by keeping a pot in your savings account to cover increased deductibles. This is a one-time expense versus a recurring expense as you make claims. And it underpins your general emergency fund at the same time.

Choose safe vehicles—Make safety features part of your buying decision when you buy a vehicle. It will protect you and yours and also contribute to a lower car insurance premium.

Park unneeded coverage—It makes no sense to pay for collision coverage on a vehicle too old to make it pay. One guideline: Drop it once the premium for collision coverage is one-tenth the car’s market value, which you can find from Kelley Blue Book (kbb.com) or Edmund’s Automotive Buyer’s Guide (Edmunds.com).

Another way to save money on your vehicles is to finance for less at Hopewell Federal Credit Union. Talk to one of our lenders for help valuing your current car to determine insurance coverage or to see what your options might be for a new car loan.

Step Up Your Savings During America Saves Week

Current economic events are making it harder to save, even for high-wage earners, self-employed professionals, and business owners just one paycheck away from disaster. Those who struggled to save before are finding it even harder now.

Join tens of thousands of other Americans during America Saves Week–February 25 through March 2, 2013–and step up your savings. America Saves is a nationwide campaign focusing on the way Americans save money. The program was created in 2001 by the Consumer Federation of America, Washington, D.C., in response to the nation’s negative personal savings rate.

America Saves Week encourages individuals to evaluate their savings progress and take action to save more.

No matter your financial situation or how much you earn, you can save. Even the smallest amount tucked away regularly will accumulate into a nice savings cushion.

Start small. Think big. Make the dream of saving a reality. Visit americasavesweek.org to find out how to join the campaign.

Streamline Your Finances—Automatically

Putting your money on auto-pilot saves time, money, and the environment. Step one is to find out if your employer offers direct deposit; most do. Signing up is usually as simple as taking a voided check to your human resources department. You’ll see your first paycheck appear automatically in your Hopewell Federal Credit Union account within a few weeks.

Step two is to set up electronic payments. There are a few ways to do this, and you can use them all:

* Authorize a biller to take money directly from your checking account. These ACH payments can take a bit of effort to stop, so use them for regular, uniform payments that will continue for a long time—mortgage payments are a no-brainer.

* Pay bills online using a credit card. Paying with your credit card is ideal for bills that only pop up twice a year—like car insurance. It’s also a good option for bills that change in amount, such as your cellphone bill. Be sure to pay off the card balance each month to minimize interest charges.

* Use Hopewell Federal’s online bill pay service to pay bills by electronic transfer to a vendor or service provider. Or, if the merchant isn’t set up to accept these, the credit union will issue a paper check debiting your account. You can set up payments 24/7, adjust payment dates to jibe with your paydays, and make optional extra payments when you can—say to your credit card.

With these three automated options, you can pay every bill you have.

Don’t overlook automating routine savings, too. Set up automated transfers from checking to your credit union savings account(s), and you’ll always be financially ready for an unexpected car repair and for infrequent but larger bills like insurance premiums.

Streamlining your finances with online tools is about more than just saving time. By helping you to avoid late fees and overdraft fees, automatic services save you money. To make sure you’re never penalized for overdrawing your checking account, for example, set up an overdraft protection savings account or line of credit at Hopewell Federal Credit Union.

Once you’ve automated your finances, use our website to track your accounts and transfer money between them. Check accounts frequently to make sure your automated system is working smoothly, and to monitor for attempted fraud or ID theft.

Car Buyers’ Worst Mistakes

How much money do you think educated car buyers can save over uneducated buyers when buying the same car? Would $5,000 get your attention?

While you may not save as much as $5,000, you’ll save a bunch if you avoid these classic car-buying errors.

1. Showing enthusiasm. If you act excited, the sellers know they have a unique product you want. The price goes up instantly. Keep that enthusiasm in check until you’ve driven home. Sneer a little if you like the car.

2. Buying in a hurry. If you buy on your first visit to a dealership, you don’t have time to compare. Take your time. Be willing to walk away. The price at most dealerships falls quickly if you move slowly.

3. Giving deposits before the dealer approves your offer on a vehicle. Feel free to give a deposit, if you really want a vehicle. But don’t give it until the boss has said “yes.” Some dealerships use deposits to keep you there while they try to convince you to pay more. And you can’t leave if they have your deposit–money, a credit card, a driver’s license, or your kids.

4. Being switched to leasing without doing your homework. Because dealerships make a much larger profit if they lease rather than sell, even the best dealership is going to try to “switch” you. They’ll try to convince you leasing is cheaper than buying. In most instances, it isn’t. If you want to lease, fine. Just don’t do it on the spur of the moment.

5. Trading in your old car without knowing its value in advance. A dealership has the right to give you the least you will take for your old car. But you have a right to get the most your car is worth. To know that value, simply clean it up, and try to sell it to several used car departments. The highest amount you’re offered for it is your car’s real value right now. Don’t accept less than that in trade.

6. Financing automatically at the dealership. Dealerships may be the cheapest place to finance. To find out, simply bring a copy of the filled-out dealer contract to your credit union and compare contracts. If the dealership won’t give you a copy, they’re probably telling you they’re not really the cheapest.

Big mistakes, big bucks out the window. We like to help you preserve your money–that’s what credit unions are all about. Avoid these mistakes, and put that money to work rather than throwing it away.

Copyright 2008 Credit Union National Association Inc. Information subject to change without notice. For use with members of a single credit union. All other rights reserved.