[LiteraryLark]

I am saving up for a relatively new car and my AAA insurance renewal is coming up in March. I've saved up enough money to be able to pay for the insurance renewal this year in full. Some say it is better to pay in full if you can afford it. I know that if I pay in full I will not have to pay for another year, so I don't have to calculate anything out of my paycheck each month and I can focus solely on saving up for my new car. However, I will be taking out of the car fund savings and it would feel like starting over to save, and then I'd have to reconsider paying the insurance in full all over again next year, and then what would have I saved for my car fund? I am wondering what are the pros and cons of paying in full?

Also, a side question, I am considering changing my phone plan with ATT for the bare minimum as well as paying off the iphone that had been stolen from me (but sticking to ATT). What should I consider when altering my payment plan? I mostly use my phone to surf the internet as well as texting and phone calls and I know I need a smartphone but do not want to pay for a pricey phone down the road, instead, I will buy a used smartphone instead of buying a new one with costly monthly payments.

Thank you!

Not sure about the phone dilemma as that has entirely to do with the area you live.

However, about the insurance.... Do you get a reduction in total cost of it if you pay in full in advance. If the cost of insurance is the same whether you pay in full or installments I would choose the installments. If you get a discount for paying for the year and you can afford to do so then take advantage of that discount.

[LiteraryLark]

Good point. I will ask aaa tomorrow if they are open

[Baker#88]

If I have the money, I try to make sure everything is paid in full but that has not been the case recently. We are always at least a month behind on everything but the house and then, it is always at least a week late. My wifes car payment was due the 13th and I forgot all about it, so we did not have enough money in the bank. We didn`t have it to begin with, since her hours at work since Christmas have been cut drastically. She will work 8 hours one week, 16 another, then 8, then maybe 24. You can`t survive like that. My big whopping disability payment from MetLife, is gone when it gets put in the bank at the first of the month. But, I always preferred to pay everything in full, when I was able. Now we are in a hole with no bottom.

My rent, cell phone, and utilities come out of my bank account automatically. I take out a sum of cash with which to make all other purchases I have budgeted for which is basically medication and groceries. I have 5 jars. I split the cash amongst the jars so I know exactly the weekly budget.

I also get a "discount" if I pay in full on my insurance but it is rather lame. Like $25. If you are calling your agent anyway make sure you are getting all the possible discounts you can. Such as "low milage"; using public transport; age etc. On the back of your "coverage selections page" it should list any discounts available. One of the big bonuses of paying in full is that if you miss a payment they cancel your insurance and it can be a hassle to get it reinstated. So I like to pay mine in full.

With regard to the phone not sure. One thing I have that is important to me is using the phone like a router. I insist on having that in case my internet service dies.

[LiteraryLark]

I got a great deal with my cell phone plan. I shaved off $35 without altering my plan at all. I paid off the iphone that was stolen from me in full which dropped my payments from $85 to $55, then I accepted a deal where if I purchased a tablet for 99c and stay locked in to this deal for two years it would bring my cell phone plan from $55 to $51 and then if I cancel the tablet at the end of the two years then it will bring my cell phone bill to $41 and after much interrogation the guy practically swore under oath that it will stay at $41 until I change my cell phone plan and that there were absolutely no catches and he was even nice enough to wave the tablet activation fee for me (-$45) and all I had to pay for was the 99c and the sales tax. So I striked a killer deal to lower my cell phone bill and I get a tablet for two years! I truly think the only "catch" they have is I buy this tablet now and decide that I love it so much I want to keep paying for it (hahaha NO), and the only other catch I have to be aware of is canceling it on time or I'll get sucked back into paying for it again.

But when he looked at my cell phone plan he told me I had the most basic plan, and the tablet promotion was the only bargain we could get to lower it.

[lizardlady]

Lark, I pay my car insurance in full. The company I'm with doesn't give a discount for paying in full, but they add a surcharge for paying in installments. Works out to be the same thing. It also means I don't have to remember to make payments. I would check to see if you save any money by paying in full.

[LiteraryLark]

I went in to AAA. I was a week early to renew my insurance, but I'll be saving $77 by paying in full, $150 total with other discounts.

[lizardlady]

Originally Posted by LiteraryLark

I went in to AAA. I was a week early to renew my insurance, but I'll be saving $77 by paying in full, $150 total with other discounts.

WOOHOO!!!!

[LiteraryLark]

Originally Posted by lizardlady

WOOHOO!!!!

SERIOUSLY AM I RiGHT? Heck of a good deal! My other discounts were my turning 25 discount, 9 years of driving discount, and a safe driver's discount.

[Baker#88]

I remember when I got married at age 20, my car insurance dropped around a $1000 bucks a year! But I was the typical 18-19 year old, had a very fast car and the insurance company did not like it. they sure changed their tune when I got married. Never understood.