So earlier this year one of my savings goals was to save up the money so that I could pay for my plates (insurance) all in one shot rather than doing the monthly payments. I haven't done a once a year in forever...probably since they started offering the auto monthly payment option.
I wanted to do the once yearly as they offer a significant reduction in rate to do that, or so I thought.
I had called in the spring to see how much the yearly amount would be and got an 'oh no dear we couldnt' possibly know how much it would be this early'
I really hate being 'oh no dear'd' LOL
So I saved up $1000 as that was approximately what it was last year.
This week the renewal statement came. To pay monthly, as I have done before, the cost is $86.32 (or $1035.84 over the year). To pay in one shot it is $996 (or $83 a month).
I am not sure how much I was thinking I'd 'save' doing it this way but I guess, deep down, I expected it to be more. By paying once I am saving $3.32 a month or $39.84 over the year.
If I had realized this, would I have worked to save up ahead of time? honestly, probably not.
What is the 'savings point' where it would have seemed worthwhile to me? lol no clue honesetly.
Ah well. It was a good learning lesson and I do love those!
Not Much Working Out Monday
2 hours ago
6 comments:
I am a big fan of every little bit helps. That's forty bucks that you're not wasting this year!
I am hoping to do the same thing for my insurance next year. Partly for the savings but mostly so that I can just pay it off and be done with it instead of having it show up and hating it everytime. So there's that bright side too...at least it's over and done with!
You only save what the interest would be...so usually like 3-6 percent or something like that.
I supposed if you need the money for something else you could put it there (like rrsps or something), but it doesn't hurt to pay insurance ahead.
I would if I could...but my insurance costs way to much!
$39.84 is better in your pocket then the insurance companies. As long as saving the $ to pay it all as once was not an issue for you, why not do it this way.
I have always paid my car insurance monthly, simply because I never had the full amount put aside, but now that I am getting my finances in order and putting the money away it will now be paid annually in a one off payment.
You still saved which is always a good thing. I'd try to do it again for next year. Less hassle and a little bit of savings.
I definittely think it's worth it; better in your pocket than the insurance companies :-)
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