Seeking Advice on Car Insurance and Savings
Hi everyone! I could really use some advice regarding our current situation. My husband and I are living with his parents to save for a house. Last year, my husband was in a car accident, and he hasn’t driven since due to his fear of getting behind the wheel. As a result, his car has been sitting uninsured in the driveway.
I was considering selling my paid-off car to help jumpstart our house savings and using his car instead, since he doesn’t use it. However, when I looked into car insurance, we were quoted nearly $1,300 per month for both of us because of his past accident.
With the car payment and insurance combined, our expenses would be close to $2,000 a month, which is just not feasible for us while we’re trying to save for a home. I’m reaching out to see if anyone has advice on cutting down on insurance costs or finding more affordable providers. Also, is there a way to exclude him from the policy since he doesn’t drive? The insurance sites state that I must include him because we’re married.
Any suggestions or insights would be greatly appreciated! Thank you!
It sounds like you’re in a tough spot, but there are definitely some strategies you can consider to help manage your situation.
Contact Insurance Providers Directly: Instead of relying solely on online quotes, reach out to insurance providers directly. Sometimes, they can offer customized options or find discounts that aren’t reflected in online quotes.
Get Multiple Quotes: Don’t settle for one company. Shopping around is key—different insurers have varying rates, especially when it comes to accidents. Consider speaking with a local insurance broker who can provide several quotes tailored to your specific situation.
Consider Minimum Coverage: If your husband’s car is not being driven and you’re considering just a liability or minimum coverage for your vehicle, that could be a more affordable option while you save.
Look into Usage-Based Insurance: Some insurance companies offer usage-based plans where your rates are based on how much you drive. If you’re primarily using your husband’s car and keeping mileage low, this might save you some money.
Explore Temporary Alternatives: If possible, consider using public transportation, carpooling, or rideshare options while you’re saving up for a house. This could give you some financial relief until you’re able to make a more permanent decision about the vehicles.
Keep the Cars Insured: Even if it’s costly, it may be worthwhile to keep the vehicles insured to avoid penalties in case of an accident or theft. This could also help maintain your credit score, which will be important for your mortgage application down the line.
Add Him as a Non-Driving Spouse: While many insurance companies require you to add your spouse, some may allow you to list him as a non-driver or excluded driver on your policy. This could potentially lower your rates.
Consult with a Financial Advisor: They can provide personalized advice and might help identify additional ways to streamline your budget or increase savings for your home.
Plan for Incremental Steps: Consider if selling your car outright is the best choice right now. Instead, it might be helpful to just reduce your driving costs temporarily while you figure out a long-term plan.
I hope some of these suggestions help guide you towards a solution that works for your family! Good luck with your house-saving journey!