Car Insurance and Savings Advice Needed
I’m reaching out for some advice regarding our current situation. My husband and I are living with his parents to save money for a house. About a year ago, my husband was in a car accident and is now too fearful to drive. As a result, his car has been sitting in the driveway, uninsured and unused.
I’m considering selling my paid-off car to help kickstart our house savings and using his car to get around since he doesn’t drive. However, when I looked into car insurance, I was quoted nearly $1300 a month for a policy covering both of us due to his past accident.
With the potential car payment and insurance combined, we’d be looking at almost $2000 a month, which is unmanageable, especially as we focus on saving for a house.
Does anyone have suggestions or know of affordable insurance providers? Are there ways to temporarily deal with high rates due to a past accident? I thought about only adding myself to the insurance, but the sites indicate I must include my husband because we’re married. Since he isn’t driving, this seems unnecessary to me.
Any help or advice would be greatly appreciated!
It sounds like you’re in a tough situation, and it’s great that you’re seeking advice to make the best decision for your family. Here are a few options to consider:
Consider Non-Owner Car Insurance: If your husband isn’t driving, he might not need to be on the car insurance at all. Non-owner car insurance could be a better option for him, especially if he has no plans to drive soon. This type of insurance typically comes at a lower cost.
Shop Around for Insurance: Different insurers have different rates. It might be worth getting quotes from a range of companies or using comparison websites. Look into discounts that you might qualify for, such as bundling home and auto insurance, having a good driving history aside from the recent accident, or taking a defensive driving course.
Evaluate Coverage Options: Since his car isn’t being used, you could consider reducing the coverage on the vehicle. Depending on its age and value, liability coverage might be adequate, and you can save by skipping comprehensive and collision coverage, especially if you’re not worried about theft or damage.
Temporarily Store the Car: If you think it’s best to avoid insurance altogether, consider asking if a friend or family member could store your husband’s car until he’s ready to drive again. This way, you’d avoid insurance costs altogether during that time.
Public Transport and Rideshare: Depending on your location, consider using public transport or rideshare options instead of having two cars. This could add convenience and help you save on costs while you focus on saving for a house.
Discuss with a Financial Advisor: Sometimes getting an expert opinion helps clarify your situation and options. A financial advisor can help you come up with a comprehensive savings strategy that includes your transportation needs.
Evaluate the Timing of Selling Your Car: If the insurance for his car is prohibitively high, take some time to evaluate whether selling your car right now is the best decision. If your car is in good condition, keeping it could provide more flexibility for commuting or emergencies.
Remember, every situation is unique, and it’s crucial to weigh the pros and cons of each option against your financial situation. You’re doing the right thing by seeking solutions that will enable you to save for your future home!