Like Dorothy Parker, every day we wake up and wonder, “What fresh hell is this?” Ukraine, monkeypox, Roe v. Wade, the lingering effect of COVID’s mutations, mass shootings, extreme weather events…not only is 2022 taking a toll on your mental health, but it’s also taking a toll on your wallet.
In a good economy your car is a major expense. It’s even more so during the inflation we’re experiencing right now. Hopefully, the situation is temporary. While we wait to find out, here are some things you can do right now to save money on driving.
One
Can you get by with one car? How about no car? If you live in a walking city and work remotely, think about what you use a car for. If all you can come up with is the occasional weekend away or driving for holiday visits across a state or two, you could rent a car for those occasions. Selling your car pays off your loan if you have one. It also saves you money on fuel, maintenance, repairs, and insurance.
Insurance
- Speaking of insurance, if you used to commute to work and are now working remotely, contact your insurance company and ask for a discount. Insurance premiums are based on risk. The fewer miles you spend on the road, the less risk you have of getting into an insurable accident. Find out if your provider offers a low-mileage discount and if you qualify for it. Not all insurance companies have the same parameters, so if you don’t qualify for your current insurance company’s low-mileage discount, comparison shop.
- Do you own both a house and a car? Do you rent your residence and own a car? Do you have life insurance? Do you own a boat and/or a motorcycle? Ask your insurance provider about discounts for bundling multiple policies.
- Do you have more insurance than you need? Everyone’s situation is different, so here are some guidelines. If you are carrying too much, right-size your policy.
- Keep your FICO score high Some banks let you check it without negatively impacting it and even notify you when it changes. A higher credit score can lower your auto insurance premium.
Wait
If you can put off purchasing a new vehicle until 2023, do. The usual advice on saving transportation money is to sell your car and buy a used, late-model, economy car, but right now, finding those is difficult. Even If your car needs a major repair, if you can maintain your ride another year, it’s still likely to cost less than buying another one.
Gas
- Carpool with a coworker
- Sign up for your favorite grocery’s fuel rewards program
- Download and use a fuel comparison app
- Drive the speed limit
- Make sure your tires are properly inflated
- Use cruise control
- Remove items that inhibit the aerodynamics of your vehicle (e.g., roof racks, bike racks)
- Don’t drive if you don’t have to. For example, combine multiple errands into one trip, use your grocery’s delivery service, etc.
What are you doing to save money on transportation costs? Please share in the comments.