Beware Of The Money Pit Under Your Hood

Car Insurance Box — By Shopping Blogs on December 27, 2009 8:50 am

Before you buy your first car, there are many things to consider beyond the price listed on the sticker in the window or classified ad. A car may be a necessity to keep your job and take care of your family, but it is not an investment that will pay off in the long term.

Most likely, your car will end up costing you more that you will sell it for when the time comes to trade it in. This is a necessary cost that most of our families live with, and while the return on you dollar may not be a profit, a car will offer many other benefits that can enhance your lifestyle.

You should weigh the pros and cons carefully.

Some of the hidden costs of car ownership include the cost for car insurance coverage . This is a mandatory cost for any registered vehicle, so if you must buy a car, make sure you are eligible for insurance and can afford the rate.

If this is your first car, it is a good idea to shop around for the lowest car insurance rate before you walk onto the lot of a dealership. If you are younger than 25 years old, you should be prepared to pay a higher premium than a more experienced driver.

If this is not your first car, but you have had driving trouble in the past such as DWIs, DUIs or excessive speeding tickets, then you must make sure you have a current drivers license. You will certainly be charged for high risk car insurance rates , so you should definitely talk with a few providers about what class or model of vehicle you can afford to insure.

Car insurance is not optional in the United States. However, the level and deductible you pay for is somewhat optional.

If you are buying a car and taking a lein against it, the lending institution may require you to keep full coverage on your vehicle .

If you own the car outright, you may elect to only hold liability on your car, meaning damage done to another vehicle or party will be covered by your insurance provider . This is usually the minimum level of car insurance required by most states.

Beyond carrying insurance on your car, there are other maintenance fees you will have to pay to own your car. This includes routine oil changes and minor fixes. These costs can range anywhere from 30 to 50 dollars every 3 months or so.

Of course, you can lower your cost by learning to change your own oil and learning a few basics about car maintenance.

Tires, body work, parts replacement and more can all be unexpected expenses. If you prepare for that ahead of time by setting a little money aside or knowing you have a credit card balance to use for these fixes, your car ownership experience will be less stressful.

The obvious cost associated with owning a car is filling the tank with gas. These days, the cost of gasoline may be a major concern of yours, and rightly so. It may cost more on the front end of a purchase to buy a car with better gas mileage, but over time the cost of purchase may be recovered and even let you come out ahead.

So, before you purchase a new hot rod or mini van, consider your lifestyle and budget for the maintenance of your new car.

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