Money Management

Getting into an accident is likely to impact your auto insurance rates. But what if you weren’t to blame for it? Read on to find out. [[{“value”:”

Getting into a car accident that you caused doesn’t automatically make you a reckless driver. We’re all human, and sometimes, a split second of poor judgment could result in a collision that causes damage and, unfortunately, injuries.

Now as you might imagine, if you cause a car accident, it’s likely to lead to an uptick in your auto insurance rates. But what if you’re involved in an accident that you very clearly didn’t cause?

Imagine you’re stopped at a red light and another driver fails to hit the brake and plows into you. In that case, there’s really no question about which driver is to blame.

But unfair as it may seem, when you’re in an accident you didn’t cause and are forced to file an auto insurance claim, you might still see your premium rates rise following that incident. So it’s important to brace for that possibility — but also, to shop for auto insurance that may lessen the blow in situations like those.

When you’re simply a victim

Some car accidents aren’t cut and dry when it comes to assigning blame. But in certain situations, it can be abundantly clear that one driver was at fault and the other was simply a victim. But even in that situation, you could end up paying more for auto insurance as the victim.

Now the good news is that you shouldn’t see the same sort of rate increase as you would for an accident you did cause. But still, any increase in your auto insurance costs can be brutal, especially at a time when other expenses of yours may be elevated due to lingering inflation.

In fact, Forbes Advisor puts the average cost of full-coverage auto insurance at $2,150 per year. There are different factors that go into calculating car insurance rates, like location, age, driving history, and vehicle model and condition at the time of purchase. But if you’re paying $2,150 at present for insurance and your costs increase to $2,200 following an accident you didn’t cause, that’s a pretty harsh blow.

Can you avoid an auto insurance increase?

You can’t always avoid being in an accident. But one thing you may be able to do is sign up with an auto insurer that offers an accident forgiveness program. Under these programs, insured parties can often avoid a rate increase in certain situations, such as minor accidents or when it’s their first accident on record.

To be clear, you’re not guaranteed to see your auto insurance costs rise following an accident you didn’t cause. Rather, it’s something that might happen. But don’t let your fear of higher car insurance costs prevent you from filing a claim with your auto insurer after an accident. That’s what your policy is there for.

Furthermore, if you decide to pay for your car’s damage out of pocket rather than risk an increase to your auto insurance premiums, the amount you shell out might far exceed the uptick in premium costs you’re hit with. You could, for example, be forced to take a few thousand dollars out of your savings account to pay for accident-related damage to prevent a scenario where your auto insurance rises by just $40 a year.

So don’t hide the fact that you were in an accident from your insurer. And if your premium rates do go up a lot after an accident you didn’t cause, you can use that as a reason to shop around for new coverage.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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You may need to move quickly if you’re without a necessary tax document at this point. Read on for the right steps to take. [[{“value”:”

The April 15 tax-filing deadline will be here before you know it. At this point, you’ve hopefully either submitted your taxes or are gearing up to do so.

But what if you haven’t filed your taxes yet not due to procrastination, but because you’re still missing some key tax forms? If you’re missing a 1099 form reporting income from a freelance gig, for example, that could prove problematic.

Similarly, for some investments, you need a K-1 form to file your taxes. And those tend to be notoriously late, often coming in well past their March 15 deadline.

If you’re missing a tax form, it’s important to take action. Here’s what to do.

Step 1: Log into your account

It’s not a given that every tax form you need will arrive in the mail. Don’t assume that your missing tax document hasn’t been issued just because it didn’t show up in an envelope. You may find that if you log into your bank or brokerage account and check the “documents” or “messages” tabs, your form is there waiting for you.

Step 2: Call the issuer

If you’ve logged into your account and still don’t see your tax form, it’s time to call the issuer to dig deeper. Perhaps your form wasn’t generated due to an error. If so, ask the institution or company in question to generate your tax form ASAP and email it to you right away.

Step 3: See if you can forgo the missing form

There may be certain tax forms you think you need to file your return that you can do without. Let’s say you did freelance work for a given company and were paid $1,000 in a single payment. The company should issue a 1099 form summarizing that income. But if it doesn’t, you can still report the income and file a tax return.

Now, be advised that you may run into an issue if that company later generates a 1099 form and it shows a different amount than the one you reported. But in the case of a single payment or transaction, there’s unlikely to be a discrepancy.

Step 4: Request an extension if all else fails

If, despite your best efforts, you really can’t get your hands on the tax documents you need to file your return by April 15, request an extension. The IRS won’t even make you give a reason for wanting more time. Just submit your request by April 15 and you’ll get six extra months off the bat.

It’s important to request an extension if you won’t get your taxes done on time in case you end up owing the IRS money from 2023. In that case, there can be steep penalties for failing to file a return on time — and those are on top of the interest and penalties you might incur for not paying your tax bill by April 15.

To be clear, a tax extension will not give you more time to pay a tax bill. If you think you owe money but aren’t sure of the exact amount due to your missing tax document, do an estimate and pay the IRS that sum by April 15.

Let’s say you run the numbers and think you owe $1,100, when in reality, you owe $1,140. If you send the IRS $1,110 by April 15 and you’re a month late paying that $40 because it took that long to track down the right information, you’ll incur interest and penalties on $40 — not your entire $1,140.

It can be extremely frustrating to be up against the tax-filing deadline without the right documents in hand. Take these steps immediately if that’s the situation you’re faced with.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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If you’re looking for low prices on tires, Costco may offer the overall best value. Find out how much you could save at Costco for a new set of tires. [[{“value”:”

If you haven’t gotten tires in a while, you might be shocked at the price. In fact, between February 2020 and February 2024, the price index for tires inflated by roughly 22%, according to data by the Federal Reserve. And while tire prices deflated by about 1.18% in 2023, the price for a set of four tires can still cause some sticker shock.

Thankfully, if you’re a Costco member, the warehouse retailer’s low tire prices and frequent discounts could give your budget some breathing room. If you’re looking for new tires in advance of summer, here’s how Costco could help you save.

1. Installation is free

Last year, Costco eliminated its $19.99 tire installation fees. Now, whenever you buy a set of four tires from the Costco Tire Center, you can have them installed for free. Installation includes rotation, balancing, and nitrogen tire inflation, as well as free inflation checks and flat repairs for the life of your tires.

To underscore the significance of these savings, just consider that Sam’s Club still charges an installation fee of $20 per tire, while Walmart has an à la carte menu of fees, including $11 for tire mounting, $15 for lifetime balance and rotations, and $5 for tire rotations (prices can vary by location). If you plan on having your tires installed when you buy them, Costco can save you more than $80 off the bat.

2. Free roadside hazard warranty

Costco throws in a free five-year roadside warranty for most vehicles and sets of tires. This warranty protects you financially from tire failures or wear damage incurred through a normal day of driving. If your tires end up failing, Costco will give you a credit equaling the remaining tread at the time of failure. This gives you some peace of mind, knowing you can be compensated if you get non-repairable cuts or punctures while driving.

3. Tire promotions

Every now and then, Costco will run promotions on select tire brands. For example, right now, you can save $100 on a set of four Bridgestone tires priced at $900 or above (you’ll save $60 if the price falls below that amount). This offer expires on April 9, 2024, but Costco runs these promotions frequently enough that you’ll likely see a similar savings opportunity in the future.

These promotions are usually offered by the brand itself, not Costco, which means you might find similar discounts at other tire shops as well. But what I like about Costco is that it applies the promotion directly to the price, effectively lowering it. In contrast, other tire shops will give you rebates or prepaid cards.

For example, Tire Rack is also offering up to $100 back on a set of four Bridgestone tires. But the money will come to you as a Bridgestone Visa® Prepaid Card. What’s more, you’ll get $70 for purchasing the tires, plus $30 for using an eligible credit card (like the Bridgestone Tire Rack Credit Card). In short, other tire shops make it more complicated to save money.

All things considered, Costco’s tire prices are tough to beat. While you should also compare its prices with other tire shops (like Discount Tire), it’s very likely you’ll find a better value at Costco. This is even more true if you’re an Executive Costco member, as you can earn cash back on your Costco tire purchases. To get started, check out prices for Costco tires on its website, then schedule an appointment at your local Costco.

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This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale, Visa, and Walmart. The Motley Fool has a disclosure policy.

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Prescription drugs can get expensive quickly, especially for those without insurance. Check out one quick and easy way to save. [[{“value”:”

More than 6 in 10 Americans take prescription drugs, according to a recent Kaiser Family Foundation survey, and roughly 28% of them say they have trouble affording their medications. Unsurprisingly, those on several medications and those with household incomes under $40,000 have the most difficulty.

Health insurance goes a long way toward reducing prescription drug costs for many Americans. But not everyone has a policy. Even with insurance, I often run into copays when I need a prescription. So I use another strategy to keep my costs as low as possible.

Don’t pass up easy savings

You’re probably familiar with grocery coupons in newspapers or online codes you can use to save money at your favorite stores. But not everyone knows that prescription drugs can have coupons, too.

Tracking them down is pretty easy. Sites like GoodRx and SingleCare maintain lists of coupon codes for a variety of medications. All you have to do is search your medication, choose your pharmacy, and show the coupon when you get there. It’ll automatically reduce your out-of-pocket costs, sometimes by 90% or more.

The best part is, these programs are totally free and you don’t even need an account to use them. Getting one only takes a couple of minutes. You could even pull it up on your phone while you’re waiting in line at the pharmacy counter.

These coupons could also help you find better savings at different pharmacies. For example, if you see that a prescription at Walgreens is $21 with a coupon, but only $19 at CVS, you might choose to have your prescription transferred to CVS so you can save a few bucks.

Bonus savings for members

The easy accessibility of these prescription drug coupons is one of their most valuable perks. But many of these programs have a membership option as well. Members usually qualify for special savings beyond what the free coupons provide.

Each program works a little differently. For example, SingleCare’s program is free to join and just requires a simple sign up. Every time you use a coupon to buy your prescription, you earn bonus savings you can apply to future prescription drug purchases.

GoodRx’s program has a monthly fee, though it comes with a 30-day free trial. And in addition to extra savings, it also gives members access to free home delivery and affordable telehealth services.

Joining one of these programs could be worth it for those who are on several medications and require frequent refills. But those who only need prescription drugs occasionally may prefer to stick to the free services.

Other ways to save on prescription medications

Having health insurance and using prescription drug coupons isn’t the only way you can save on your medications. Many states have programs designed to help their residents with prescription drug costs. Some of these are aimed specifically at individuals with HIV/AIDs or seniors, while others are open to low-income individuals of all ages and health statuses.

Prescription drug companies can run savings programs on their own. To qualify for one of these, you typically must have a prescription for that drug and have a household income below certain thresholds. You also need to reach out to the manufacturer to request the savings. It’s possible you could receive a discounted rate or even get your medication for free.

It might take a little shopping around to figure out which strategy offers you the best savings. But the difference to your bank account is worth it. And remember, it might be possible to use several strategies, like health insurance, state or pharmaceutical company assistance programs, and a coupon. If you have any questions about valid payment methods, ask your pharmacy for clarification.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Your physical location could impact your auto insurance rates. Read on to learn more. [[{“value”:”

The average annual auto insurance premium in the U.S. is $1,547, according to U.S. News & World Report. But there are different factors that will determine how much you pay for car insurance.

Your driving record, for example, will go into your premium rate calculations. And the cleaner it is, the less you might pay for coverage.

Your physical location will also determine what auto insurance costs you. If you’re making a move from a city to a suburb, there’s a chance you might be happy with the impact that move has on your car insurance rates.

You may be in for some relief

Auto insurance rates are partially based on the area you live — specifically, its crime rate as well as its accident and claims history. If you move to an area with a statistically high rate of crime, that alone could cause your auto insurance costs to soar. But if you move from a crime-ridden ZIP code to one that’s considered safer, your costs might drop.

Similarly, when you move from a city to the suburbs — a trend that’s taken off in the wake of the pandemic — you may find that auto insurance starts to cost less. The reason? It may be that the likelihood of your vehicle being stolen or damaged is lower in a suburb than in a city, or that the suburb in question has a lower crime rate than the city you’ve leaving.

Think about it this way. It’s often (though not always) the case that people who have a car in a city, park it on the street. Since cities tend to be pretty accessible, someone could, conceivably, walk down the block, snatch your car, and drive away with it with relative ease if they have the skills to break into a vehicle.

But now let’s imagine you live in a suburb that’s really only accessible by car. How would a criminal with a need to steal a car get to your home to steal your car in the first place?

What’s more, let’s say you’ve moved to a house and have a garage to park your car in. The likelihood of your vehicle getting damaged or broken into may be lower than if your car is out on the street. So that, too, could be a reason your auto insurance rates go down.

Always let your insurer know if you’re moving

Whether you’re moving from a city to a suburb, a city to another city, or a suburb to another suburb, it’s important to keep your auto insurance company in the loop. It may decide to adjust your premium rates based on your new location.

In some cases, a move might result in lower auto insurance costs. In other cases, not. But either way, once you move, it’s a good idea to shop around for auto insurance to make sure you’re getting a good deal.

Perhaps your current insurer does, in fact, have the best rates to offer. But you won’t know for sure until you make calls to different insurance companies and get the data you need to make an informed decision.

Plus, if you’re moving from a city to the suburbs and are buying a home, you’ll need a homeowners policy, too. It could pay to look into bundling your auto and homeowners insurance policies to see if that results in a lower cost for both.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Balance transfer cards can help you pay down credit card debt faster. But they’re not risk-free. Read on for a few reasons why. [[{“value”:”

A balance transfer involves moving debt from one credit card or loan to another, usually to get a lower interest rate. A balance transfer credit card is a card designed to receive the balance transfer. Many of these credit cards come with a low or 0% introductory APR period, during which your interest payments could be greatly reduced. In theory, this can help you pay off credit card debt, as you can apply the money you save on interest toward your principal.

To be sure, balance transfer credit cards can play a vital role in paying off debt. But it’s important to understand how they work, as they also come with risks that could work against your debt repayment strategy. If you’re considering one of these cards for your personal finances, here are some common risks to watch for.

1. Balance transfer fees

Balance transfers aren’t free. You’ll pay a fee, usually equal to 3% to 5% of the amount you’re transferring. For example, if you’re transferring $6,000 of debt to a 0% intro APR card with a 5% balance transfer fee, you’d pay $300 in fees.

More often than not, the balance transfer fee will be significantly cheaper than what you’d owe on monthly interest. Say, for instance, that your original card has an APR of 21.47%, which is the average credit card interest rate according to the Federal Reserve. And let’s also assume that you’re going to put $500 toward your $6,000 credit card debt each month. Plugging some numbers into our credit card payoff calculator, we’ll see that you would pay $814 in interest over 14 months. Transferring the same amount to a balance transfer card with a 5% transfer fee could mean saving over $500.

But it’s important to do the math, because it doesn’t always work out. For example, if you had $1,000 in credit card debt, you would pay $50 on a card with a 5% transfer fee. If you were paying $250 each month on the original card with a 21.47% APR, you’d pay $47 in interest by the time you paid off the balance. Run the figures for yourself, and don’t assume the balance transfer will always be the savviest economic choice.

2. New purchases might not fall under the 0% APR promotion

The best 0% intro APR credit cards have promotional APR periods for both balance transfers and new purchases. This means you won’t pay interest for purchases you make with the credit card during the promotional period. But it’s important to clarify this before you apply, because not all balance transfer credit cards will defer interest for new purchases.

Even if your balance transfer card does offer a 0% APR period for new purchases, it might be shorter than the period offered for balance transfers. For example, a card may offer a long 0% APR period of 18 months for balance transfers, but for new purchases, the 0% APR period may be six months. Once this intro 0% APR period ends, the card’s regular APR will kick in, after which you’ll accrue for unpaid balances.

Of course, if you’re only using the card for balance transfers, this shouldn’t concern you. But if you’re also planning to use the credit card for new purchases while paying off debt, keep this in mind.

3. Credit limits may not allow for a full transfer

Finally, be aware that you can only transfer up to the credit limits on your new balance transfer credit card, which might prevent you from transferring the full amount owed on your original card. So if your credit card company gives you $5,000 for a credit limit, you cannot transfer a balance above that amount.

What’s more, your card issuer will also charge the balance transfer fee to your new card, which could reduce how much you can transfer. So if you owe $5,000 in credit card debt and you have a balance transfer card with a credit limit of $5,000 and a 5% transfer fee, you can’t transfer the full $5,000. Instead, you could transfer about $4,761.90, which would result in a $238.10 balance transfer fee.

All told, balance transfer credit cards are a popular way to pay off credit card debt. As long as you heed these risks, they could stop debt from snowballing out of control, especially if you get a long 0% intro APR period. Take a look at our list of best balance transfer cards and see if one could help you pay off your credit card faster.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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