Money Management

A recent J.D. Power report shows almost 7% of drivers in South Dakota are uninsured. Find out what you can do about higher insurance costs. [[{“value”:”

There are more and more uninsured drivers on America’s roads. Recent research from J.D. Power shows a sharp uptick in the number of people driving without insurance. It’s more pronounced in certain states, particularly South Dakota — which now has double the number of uninsured drivers than it did six months ago.

South Dakota’s dramatic increase in uninsured drivers

In the second half of 2022, 3.3% of people on South Dakota’s roads were uninsured. That jumped to 6.8% by the first half of 2023. The data company doesn’t break down the numbers, but some back-of-the-envelope calculations show that translates to around 44,000 uninsured drivers in the state. (The U.S. Department of Transportation says there are around 650,000 licensed drivers in the state.)

What’s driving the change? Essentially, it’s a combination of skyrocketing auto insurance premiums and budgets that are already stretched to breaking. Sadly, as J.D. Power points out, “American insurance customers have had to make the difficult choice between their monthly budget and peace of mind on the road.”

Research by The Ascent shows the average cost of auto insurance nationwide was around $3,000 last year, which works out at about $250 a month. The average annual car insurance premium in South Dakota was $3,217. That’s a good chunk of a lot of people’s budgets.

The rising cost of auto insurance

I don’t know about you, but I’m tired of news about how much living costs have risen. It’s not news — we all live and breathe the higher prices every time we go to the store. Even so, auto insurance costs have gone to the moon.

According to the Bureau of Labor Statistics’ Consumer Price Index, car insurance in December 2023 was over 20% higher than the year before. That’s on top of a 14% jump from 2021 to 2022. So if your annual auto insurance cost $1,500 in 2021, it might have risen to $1,710 in 2022 and $2,052 in 2023.

What’s worse is that J.D. Power says auto insurance companies still paid out more than they brought in through premiums last year. Cars are increasingly high-tech, which makes repairs more expensive. Throw in climate change, inflation, and labor shortages, and the soaring premiums start to make sense. It doesn’t make them any less painful though.

The risks of driving without auto insurance

If you’ve thought about skipping car insurance because of the high costs, J.D. Power’s report shows you’re not alone. The trouble is that driving without insurance can prove costly too. If you are in an accident, StormWise estimates the average auto repair costs at between $50 and $2,500 or more. A more serious collision could run to $10,000 or more in damages.

There’s also a risk of getting caught. For example, drivers in South Dakota need to show proof of financial responsibility, which most people do through car insurance. According to the South Dakota Department of Public Safety, you could be fined $100 and/or face 30 days in jail if you fail to do so. Your driver’s license may also be suspended.

How you can reduce your auto insurance premiums

If you’re worried you can’t afford your auto insurance bill, take these steps to reduce your premiums:

Increase your deductible: Your deductible is the amount you pay before the insurance money kicks in. Raising your deductible means you’d have to pay more out of pocket if you do make a claim, but it can also lower your monthly rate. Consumer Reports estimates that you can lower your annual premiums by $400 to $500 this way.Shop around for a lower rate: Every insurance company is different, so it’s worth rate shopping each year to see if you can get a better deal. You might also try to negotiate with your current insurer to see if you can reduce your bill. Check out our ranking of car insurance companies with the best rates today.Bundle your home and car insurance: If you buy more than one type of insurance from the same company, you can score significant discounts. For example, Allstate’s website says customers can save up to 25% by bundling their home and auto insurance together.Show your insurer how well you drive: Many insurers will give you a discount if you sign up to their telematics or usage-based car insurance. The company will monitor your driving via a mobile app or device that’s installed in your car, and reward you financially for safe behaviors. For example, USAA offers a 10% discount when you enroll in its SafePilot program, and up to 30% off for drivers the program shows to be lower-risk.

Key takeaway

When money’s tight, it might be tempting to roll the dice and save money by driving without insurance. Unfortunately there can be significant legal and financial consequences to driving uninsured. Don’t take that risk. Instead, look for ways to reduce your auto insurance and see if you can bring in extra cash or save money elsewhere.

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When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

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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.Emma Newbery 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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If you lose your job, quit your job, or have other big life changes, you can sign up for new health insurance. See how to get a Special Enrollment Period. [[{“value”:”

Changing your health insurance doesn’t always happen in a neat, orderly manner. In an ideal world, you’d give two weeks’ notice at your old job, start a new job two weeks later, and have new employer-sponsored health insurance from day one. But that’s not how it works in reality for everyone.

If you lose your job, quit your job, or are between jobs, you might need a different way to get health insurance. This is called a “Special Enrollment Period,” and it’s a federal rule that can let you sign up for health insurance even if you’re outside of the usual time limits for annual enrollment.

Anyone who loses their job-based health insurance, or has certain other events happen in their life, is allowed to get new health insurance anytime with a Special Enrollment Period. This can be a great way to make sure you have the coverage you need, whether you have a new job lined up or not.

Let’s look at what a Special Enrollment Period is, and how it can help you get health insurance — anytime you need it — in 2024.

Special Enrollment Period: What it is and how it works

You’ve probably heard of open enrollment or “annual enrollment” at work, right? It’s a wonderful time of year, usually starting in October or November, when employees can change their health insurance or enroll in other workplace benefits. Open enrollment is important, because — assuming you stay at your current employer for the next 12 months — it’s your one chance each year to make changes in your insurance and other employee benefits.

The whole health insurance system is set up to assume that everyone stays at their job and can keep using the same health insurance for the next full year. But reality is more complicated. Not everyone stays at their job forever; some people unfortunately get laid off, and other people decide to quit their jobs.

If you leave your job or lose your job, a Special Enrollment Period is your chance to get new health insurance on HealthCare.gov. This can help you save big money on monthly health insurance costs, compared to the price of COBRA premiums.

A Special Enrollment Period is like “Christmas in July” for healthcare. Instead of being limited to just one time of year, it lets people have the flexibility to get health insurance coverage when they need it most.

Who can use a Special Enrollment Period in 2024?

Not everyone is allowed to use a Special Enrollment Period. To be able to use this flexible enrollment opportunity, you need to have what the U.S. government defines as a “qualifying life event.” A typical example would be losing your job-based health insurance (by quitting a job or losing a job), changes in your home residence, or changes to your family or household.

Here are a few common qualifying life events that let you get new health insurance with a Special Enrollment Period:

Change in marital status: Getting married; or getting divorced or legally separated (and losing health insurance as a result)Welcoming a new child: Having a baby, adopting a child, or placing a new foster childDeath of someone in your household who was responsible for your health insuranceChange of residence: Moving to a new home in a different ZIP code or county, or moving to or from the place you attend school (as a student)Loss of health insurance: Whether it’s job-based coverage, individual coverage, or eligibility for Medicaid, state Children’s Health Insurance Program insurance, or premium-free Medicare Part A.

Some of these qualifying life events can happen within the past 60 days or in the next 60 days. So don’t assume it’s too late — you might still be able to get health insurance. There are a few other events and rare circumstances not on the list above that can also help you qualify. If you have a special situation and need to get health insurance, start by going to HealthCare.gov, and click the button that says “Check to see if you can enroll/change.”

One extra financial move you should make

If you qualify for a Special Enrollment Period, as you’re looking through the list of health insurance plans, try to get an HSA-eligible plan if you can. A health savings account (HSA) is a great way to pay for healthcare costs and save for future healthcare costs with tax-deductible dollars.

Bottom line: Changing health insurance mid-year can be a little stressful and complicated, but don’t worry. A Special Enrollment Period can give you peace of mind and protect your personal finances. If you lose your job, quit your job, or are between jobs, and don’t want to shell out big money for COBRA, you could get a lower-premium plan on HealthCare.gov. You might qualify for premium tax credits, depending on your income. Choosing an HSA-eligible plan can help you save money on taxes.

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When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

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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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There’s a reason Trader Joe’s won’t deliver groceries to your door. Read on to find out why. [[{“value”:”

During the pandemic, a lot of people started having their groceries delivered because they were afraid to shop in stores and potentially contract COVID-19. Back then, the added cost of delivery was generally more than worth it for those who could afford it.

These days, grocery delivery isn’t quite as common. But it’s still fairly prevalent. And several major retailers, from Walmart to Target, offer grocery delivery as part of their business model. Even Costco, which is a completely different type of store, has a same-day delivery service powered by Instacart.

But there’s one popular grocery chain that’s a holdout on the delivery front — Trader Joe’s.

Trader Joe’s offered delivery in New York City for many years. But the chain ended the program in 2019 due to factors like high costs and limited space. And at this point, Trader Joe’s has no plans to bring delivery back.

That may be a bummer to you if you love Trader Joe’s and don’t live particularly close to a store. But actually, shopping for your groceries in person has its perks. And it might be a good thing for your personal finances.

The downside of grocery delivery

There’s a clear benefit to having your supermarket haul delivered to your door — you don’t have to spend time shopping yourself. If you’re a busy person, that’s a huge convenience. And if you’re self-employed with a full load, paying a higher credit card tab to have your groceries delivered could free up many hours during the week for additional work. The result? Extra income.

But for the typical consumer, it can be beneficial to shop in person rather than order grocery delivery. For one thing, there are always extra fees involved when food is brought to you. And while you technically don’t have to tip your delivery driver, it’s wrong not to. So that’s yet another expense.

Also, chances are, you’re going to do a more thorough job picking your groceries than a random shopper who’s assigned to you and wants to load a cart quickly to move on to their next job. If your shopper selects fruit that’s on the verge of going bad or buys you milk with an expiration date that’s 48 hours away, you might end up wasting money on food — and, worse yet, having to make a quick trip to the supermarket anyway.

Don’t expect changes anytime soon

Many supermarkets do indeed have delivery services available — either their own or through partnerships with services like Instacart. But Trader Joe’s has never been the type of chain to follow the pack. So chances are, if it decided that grocery delivery doesn’t work, it’s not going to change course just because it’s one of the only supermarkets to not offer that service.

Most supermarkets, for example, vary their prices based on geographic region. Costco does that, too. But Trader Joe’s makes a point to publish prices on its website and have them apply to pretty much all stores. If it’s not afraid to do that, it’s probably not afraid to hold firm on its delivery stance.

But remember, visiting Trader Joe’s can be a fun experience. Not only might you get a chance to sample some food or coffee when you visit, but you also get the benefit of some of the friendliest employees around. So while you may prefer to have the option to have your groceries delivered, you’re not exactly getting a raw deal by doing your shopping in person.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 6, 2024

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.Maurie Backman has positions in Target. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.

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A higher car insurance deductible can save you money. But it isn’t the best move for everyone. Here’s what you need to know. [[{“value”:”

When you sign up for auto insurance, you typically have to maintain a minimum amount of coverage designated by the state where you live. And in most cases, the minimum amount of coverage isn’t nearly enough to make sure you’re truly protected in the event you’re found responsible for an accident or are hit by an underinsured motorist. Plus, the minimum coverage doesn’t typically cover damage to your own vehicle, and this is something that most drivers should have.

While it’s usually not a good idea to skimp on insurance coverage, one area where you have some flexibility with your car insurance is your deductible on collision and comprehensive insurance.

If you aren’t familiar with the term, your deductible is the amount you’ll need to pay before your insurance company pays for a claim. As an example, if you’re found to be at fault for an accident with $5,000 in property damage and you have a $500 deductible, you’ll have to pay $500, and your insurer will pay the remaining $4,500.

In simple terms, a higher deductible gives you more skin in the game, and it reduces the likelihood your auto insurance company will need to make a big payout on your behalf. Common deductibles in auto insurance policies are $250, $500, and $1,000, although others are certainly possible.

Reasons you might want a higher deductible

The most obvious reason to consider a higher deductible is to save money on your auto insurance costs. According to insurance giant Progressive, switching your collision deductible from $500 to $1,000 can lower your premium by about 28%.

Beyond the cost savings, a higher deductible can make sense if you have a particularly safe driving record. An accident-free past doesn’t guarantee the same in the future, however, and of course you can’t predict when someone will hit your car, when a tree branch will fall on it, etc.

Reasons to think twice

There are a couple of key considerations that could make a higher deductible a less-than-ideal way to save some money. If you’re a newer driver, or don’t exactly have an excellent driver safety record, you might be better off leaving your deductible where it is.

Financially, you want to make sure that (at a minimum) you have enough money in an emergency fund to cover your entire deductible if you get in an accident. You certainly don’t want to have to tap into retirement savings or charge your credit card if you are on the hook financially for an accident.

If you choose to raise your deductible, you’re always rolling the dice to one extent or another. Taking the chance doesn’t make a whole lot of sense if you aren’t prepared for the potential impact if things don’t work out in your favor.

There’s no way to know for sure what the best move will be

Of course, nobody has a crystal ball that can tell you if and when you’re going to get into an accident, and what the financial implications will be. Therefore, there’s no way to know which decision will be the best one.

Think of it this way — if you decide to keep your deductible low and end up with no accidents for years, you might feel as if it was a wasted opportunity to save some money. On the other hand, if you raise your deductible from $500 to $1,000 and cause an accident, you’ll wish you hadn’t done that.

The bottom line is that there are several factors you should consider when assessing your car insurance deductible. If you have a safe driving record, want to minimize your monthly expenses, and (most importantly) would be able to absorb a higher cost in the event of an accident, raising your deductible could be a smart idea. But if all those things aren’t true, it could be a better idea to leave it alone.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 6, 2024

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.Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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Tax season is underway, but you don’t have to file your return on your own. Here are a few tips to help you find the right tax professional to do yours. [[{“value”:”

I’ve yet to meet anyone who gets excited about taxes. Unfortunately, pretty much everyone needs to file a return to avoid fines and jail time. But the government doesn’t require that you file your returns personally.

Every year, millions of Americans hire tax professionals to do their returns for them. If you’re thinking about going this route for your 2023 taxes, take the following three steps first to make sure you’re working with the right person.

1. Check their credentials

This step is essential because tax season is also an identity thief’s favorite time of year. Many pose as tax preparers — and they will file your returns for you. But instead of doing it properly, they claim a load of deductions you don’t qualify for and then have the refund checks sent to themselves. And if you’ve handed over your Social Security number and other personal information, they could gain access to your bank accounts as well.

The easiest way to make sure you’re dealing with a reputable tax preparer is to use the IRS’s Directory of Federal Tax Return Preparers. All you need to do is enter your ZIP code and a mile radius you’re comfortable searching within. Then, you’ll be able to view all credentialed tax professionals in your area.

This tool is also useful if you want to look up a specific individual. But don’t assume they’re a scammer if their name doesn’t show up. That just means they don’t have any special credentials. In this case, you may want to do more digging into that person online and by asking around in your local area. Or you could just choose a different, credentialed provider.

2. Inquire about their experience

Traditionally employed workers who receive a W-2 form generally have straightforward tax returns, and there are many preparers who can assist them in filing theirs. But those with more complicated taxes may have to do some more research to find the right tax professional.

If you own your own business, for example, you want a tax preparer who understands the tax rules for your type of business, whether that’s a sole proprietorship, an LLC, or a corporation. Come up with a list of questions you have about your specific needs and contact the tax preparer you’re considering to ask them about their expertise in certain areas that matter to you.

Compare a few tax preparers in your area if you don’t like the answers you’re getting. Your taxes aren’t due until April 15th, so you still have time to look around before you have to commit to one.

3. Ask about their fees

Tax preparers generally charge a flat rate to file your taxes, but this can vary depending on the complexity of your tax return, the credentials of the tax preparer, and even the time of year. You’ll probably pay $100 at a minimum, and some charge a lot more.

It’s important to make sure the fees fit into your budget. If not, you might be better off searching for another tax preparer or filing your own taxes with tax-filing software. It doesn’t hurt to price out all your options before deciding which is right for you.

Be wary of any tax providers that charge a percentage of your refund check. Not only could this cost you more, but it could also incentivize them to claim deductions you don’t qualify for to inflate the refund — and their check. This could land you in hot water with the IRS if it turns out you don’t actually qualify for some of the deductions.

Now’s a great time to start gathering your tax documents together if you haven’t already and start researching tax preparers in your area. Keep in mind that some tax professionals stop taking clients as it gets closer to the April 15th deadline. So don’t put off your return for too long.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 6, 2024

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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Want to save over $1,500 in 2024? If you have the average big carrier cellphone plan, that’s what you’d save by switching to a low-cost plan like Mint Mobile. [[{“value”:”

Smartphones have become the center of most people’s everyday lives, but you know what’s not so smart? Paying too much money for cellphone service! If you want to save money in 2024, cutting back on your cellphone bill could be a great place to start.

Cellphone service can be shockingly expensive. Research from WhistleOut found that the average American spends $160 per month on cellphone service from major carriers like AT&T, T-Mobile, and Verizon. This is too much! If you’re spending that much on cellphone service, you really should stop. Better deals are out there.

Let’s take a look at how you can save surprisingly big money by cutting your cellphone bills in 2024.

Get smart about your smartphone’s cellular data

You might be surprised at how much you’re spending on cellular data that you don’t actually use. If you have home internet service, work from home, or spend a lot of time in places with public wifi, you might only be using a small percentage of the high-priced cellular data that you’re paying for each month.

Do you have more cellular data than you need? Think about it: when was the last time you ran out of cellular data, or had to pay an excess data charge? Unless you have an especially active, outdoorsy, on-the-go lifestyle where you’re never in range of wifi, you probably aren’t using your cellular data every minute of the day.

Especially now that most cellular service providers offer unlimited talk and text, cellphone service is no longer a scarce, precious, expensive resource like it was in the 1990s. (Remember the days of “free talk and text after 9 p.m.”? Sigh. I’m so old.)

But the point is: your cellphone plan might be causing unnecessary damage to your personal finances. The WhistleOut study found that:

83% of Americans have an unlimited cellular data plan, but 72% of Americans use under 15GB of data per month.Only 13% of Americans use cellular data at home (most use home internet wifi)18% of Americans don’t know how to check their cellular data usage (On an iPhone, go to: Settings > Cellular > Usage)

The lesson: consider cutting back on your data plan. Instead of unlimited data, see if you can switch to a lower-cost plan with a fixed amount of data per month. Stop sending all that money to a mobile phone company, and keep more money in your bank account.

Switch to a lower-cost MVNO cellphone provider

If you can’t get a good enough deal from a major carrier, you can reduce your cellphone bill by switching to a lower-cost option. There are several low-cost mobile phone companies called “mobile virtual network operators,” or MVNOs, that offer the same network coverage as the big carriers, but at a much lower price.

Here are a few prominent MVNO cellphone companies, and the networks they offer:

Boost Infinite (AT&T and T-Mobile networks)Cricket Wireless (AT&T network)Mint Mobile (T-Mobile network)Tello (T-Mobile network)US Mobile (Verizon and T-Mobile networks)Visible by Verizon (Verizon network)

If you want to switch to a low-cost MVNO service provider, start by looking for coverage. For example, if you are currently a T-Mobile customer, see which MVNOs offer coverage on the T-Mobile network. Mint Mobile, for example, offers plans starting at $15 per month for three months (with 5GB of data per month).

Drawbacks of a low-cost MVNO cellphone plan

Low-cost MVNO cellphone plans like Mint Mobile can help save big money on your monthly bills. But depending on how you use your phone, there might be a few downsides.

Data deprioritization

This is a technical term that means “your data might be slower during busy times on the network.” Because your MVNO cellphone plan is cheaper, prepaid, and bought in bulk, you might get second-class access to the cellular data network during peak times. MVNO cellphone service is like a “basic economy” airline ticket: You’re still on the plane, but you don’t get VIP frequent flyer treatment.

Fewer “free phone” offers

Do you love getting special deals on a new smartphone every few years from your cellular service provider? If so, a cheaper MVNO plan might not be right for you. These low-cost plans tend to offer fewer (if any) special phone deals.

Fewer perks

Some major cellphone companies offer free perks like international coverage, free streaming video subscriptions, free in-flight wifi, and other benefits. You won’t get all the freebies with a low-cost MVNO cellphone plan. (But with the money you save, maybe you can afford to pay for your own streaming subscriptions.)

How much you can save with low-cost cellphone service

Assuming you spend $160 per month on your current cellphone plan, let’s see how much you could save by switching to a lower-cost MVNO cellphone service.

Bottom line: It’s not the 1990s anymore. Switching to a lower-cost cellphone service, even with unlimited data, could save you over $1,500 per year! Your savings might be a lot less; not everyone is paying $160 a month for cellphone service. For example, my current (major carrier) cellphone plan is $75 per month. But I could save $480 per year (or more) by switching to one of these lower-cost services. Before you switch, check the carrier’s network coverage where you live.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 6, 2024

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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