Money Management

There are two big reasons it’s really important to review car insurance right now. Find out what they are to make sure the right coverage is in place. [[{“value”:”

Most people have a lot of fun plans for the upcoming year — and reviewing car insurance coverage probably isn’t on that list. It should be, though.

While taking a close look at auto policies sounds about as exciting as watching paint dry, it is something absolutely every motorist should do this year. Here are two big reasons why that’s the case.

1. Car insurance prices have skyrocketed

The single biggest reason every driver needs to review their auto insurance coverage is because prices are through the roof.

The cost of auto insurance rose six times faster than overall consumer prices last year, far outpacing inflation and leaving many consumers facing much higher bills. With prices on premiums for a full-coverage policy up as much as 24%, many people will see premiums in 2024 that are hundreds of dollars higher than they were paying in recent years.

Paying so much for car insurance is not fun. And it’s especially important not to overpay when prices are so expensive already. To make sure that coverage is as affordable as possible, some key steps to take include:

Shop around for coverage. Insurers actually charge higher premiums for customers who they think won’t shop around. So those who are being loyal to an insurer could pay a price for it. Get at least three online quotes to find the best deals.Ask about discounts. Insurers offer discounts for a whole variety of different things, from having safety devices installed on a vehicle to good grades for teens to being a member of certain organizations or working for certain employers. Be sure to ask to get all of the available discounts.Take a defensive driving course. Insurers offer discounts ranging from around 5% to as high as 20% for those who complete a defensive driving class. It’s worth looking into how much it’s possible to save for a few hours taking a course learning to be a better driver.Keep your insurer updated on life changes. Things like getting married or switching to a job with a shorter commute could result in lower premiums.

Reviewing a policy to explore these options — and getting several quotes on coverage — could help drivers to keep costs down despite the surge in insurance prices.

2. Used car values are falling

After skyrocketing during the post-pandemic years, the price of used cars is starting to come down, with the average list price 3% lower than it was last year.

While this is good news for consumers shopping for vehicles, the falling prices increase the chances that those who own cars may not be able to sell them for the full amount necessary to pay off any outstanding auto loan balance. This is especially an issue for people who bought at the peak of the market when there was a vehicle shortage and people were paying above sticker price for cars.

Those who owe more than their car is worth could find themselves having to pay off their loan out of pocket if their car is stolen or is declared a total loss in an accident. That’s why it’s important to review a policy to make sure gap insurance coverage is included. Gap insurance doesn’t cost a lot — around $20 to $60 per year for most people — and it pays off any balance that remains in a loan once the insurer pays the fair market value of the vehicle.

Drivers need to review their insurance policies to make certain they have gap coverage if there is a chance their car is worth less than they paid to avoid huge losses out of their bank account in the event of an accident.

So, those who want to avoid huge premiums or high out-of-pocket losses should take a close look at their car insurance coverage this year. Do it now, before any money is lost and it’s too late to get it back.

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.

“}]] Read More 

Not everything at the Happiest Place on Earth is expensive. Read on to learn about my favorite free things to do at Disney World. [[{“value”:”

The average five-night vacation to Walt Disney World costs over $6,300 including accommodations, park tickets, dining, and flights for a family of four, according to Disney travel site MouseHacking.com. It’s fair to say that the lively Orlando-area resort isn’t exactly budget-friendly in many ways.

However, there’s a lot that you can do for free at Disney World, and while you’ll still probably want to spend a lot of time in the theme parks, you can incorporate some of these free activities into your schedule to make the overall trip more affordable. My family has been Walt Disney World annual passholders for several years. We make frequent trips to the resort and have learned a lot of tips and tricks along the way. Here are four of our favorite things to do at Disney World that won’t cost you a dime.

1. Disney Springs

Disney Springs is the Walt Disney World resort’s main shopping and dining district. It features the largest Disney Store in the world, some fantastic restaurants, and many other popular shops (and some you’ve likely never heard of).

To be honest, I’m a Disney World annual passholder, and I’ve never made a visit to Disney Springs without spending money. But there is no cost to get in, there are plenty of things to do, and there are often free live entertainment options, especially in the evenings, at several locations throughout the property.

2. Go resort-hopping, especially on the monorail or Skyliner

There are more than 25 Disney World resort hotels, and each of them has a specific theme. They range from budget-friendly hotels to extravagant luxury resorts. And while they can certainly be expensive to stay at, you can visit any of them for free. Some have breathtaking displays in their lobbies (especially around the holidays), some have character experiences, and many of the resorts contain some of the best restaurants on Disney property. As a personal example, my family loves having breakfast at Ohana, which is in Disney’s Polynesian Village Resort.

Many Disney resorts offer nightly campfires (some with characters) where you and your family can roast marshmallows, as well as nighttime “Movies Under the Stars,” where Disney film favorites are shown outdoors. Both of these activities are completely free.

Some of the resorts are accessible via Disney’s monorail system, while a few others can be reached by the free (and very scenic) Skyliner transportation system.

Many of the resorts, such as Disney’s Boardwalk Resort, often have live entertainment to check out. And Disney’s Animal Kingdom Lodge has some excellent views of the savannahs of the Animal Kingdom theme park from its public areas.

3. Disney’s BoardWalk

Disney’s BoardWalk is a publicly accessible area, located just outside the back entrance to Epcot, and adjacent to the BoardWalk Resort. It offers a quarter mile stretch that is modeled after turn-of-the-century boardwalks, complete with live entertainment, classic arcade games, dining, shopping, and more.

4. Watch the fireworks

On most nights, there are fireworks shows that take place in the Magic Kingdom and Epcot theme parks. But what many people don’t realize is that there are some very clear views to be had outside the parks.

For the Magic Kingdom’s fireworks, which usually start at 9 p.m., there are excellent views from the three resorts in the Magic Kingdom area — Disney’s Polynesian Village Resort, Disney’s Grand Floridian Resort & Spa, and Disney’s Contemporary Resort (you can get to all three by riding the monorail). When it comes to the Epcot fireworks show, the nearby Disney’s Boardwalk Resort provides excellent views.

This tip isn’t just about saving money. Even if you’re spending the day at the parks, it could be worth it to leave and watch the fireworks elsewhere, as there is typically a massive rush to exit as soon as they’re done. I can tell you firsthand that trying to leave the park after Epcot’s fireworks is similar to leaving a concert as soon as the band finishes.

Not an exhaustive list

This is just a small list of things you can do at the Walt Disney World resort completely free of charge, and there are many others. The key takeaway is that while a Walt Disney World vacation isn’t likely to fit anyone’s definition of “cheap,” if you get a little creative, you can have a lot of fun for less of an impact to your personal finances than you expect.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. This card features a 0% intro APR for 15 months, 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.

Read our free review

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.

“}]] Read More 

Is this the year you should pay for an accountant to do your taxes? Read on to find out when hiring tax help is most beneficial. [[{“value”:”

Taxes are due this year on April 15, which means you still have plenty of time to get your paperwork in order and finish your return ahead of the deadline. But who’s going to be the one handling your return? Is it you, or an accountant?

You may be inclined to tackle your taxes solo. And if your return is truly simple, then you might as well save yourself the money a professional would charge you.

Let’s say you’re a salaried worker and you need to report W-2 wages. Let’s also say you have to report $120 of interest income from your savings account and $700 in gains from your brokerage account. That’s pretty easy. You simply copy over those numbers from your tax forms and call it a day.

But not everyone’s taxes are as simple as that. So ask yourself these four questions to see if hiring tax help makes sense this year.

1. Am I itemizing?

Once you make the decision to itemize on your taxes, you automatically take on extra steps in the filing process. Those steps may be worth taking, but it’s additional work nonetheless. In that situation, it could be helpful to hire an accountant so you don’t accidentally skip over deductions you’re allowed to claim.

Also, a tax professional might spare you from claiming an erroneous deduction. Let’s say you donated furniture to a charity. You can’t deduct the full cost of those items — only their fair market value. An accountant can work with you to figure out what that entails so your return is less likely to raise a red flag with the IRS.

2. Am I self-employed?

There are many tax benefits to being self-employed. Unlike salaried workers, you can deduct certain expenses related to doing your job, like a home office or travel. But you may miss out on some of those deductions if you attempt to file your taxes on your own, which is why it could, in your situation, make sense to get help.

Also, claiming the wrong deductions is a good way to get your tax return audited — even if you do so not to be deceptive, but because you made a mistake. A tax professional is apt to know the rules better than you do, so hiring one could help you avoid a headache.

3. Am I filing a state tax return in more than one state?

It’s not just a federal tax return you have to worry about filing in 2024. You also have to file a return in your state of residence. But depending on your situation, you may be looking at two state tax returns, such as if you split your time evenly between two states or if you live in one state but work in another.

In a situation like this, it’s a good idea to get some help with your taxes. You want to make sure you’re not accidentally being taxed twice on your income.

4. Has my tax situation changed?

Maybe you got married in 2023 and therefore have a new filing status to contend with. Or maybe you had a baby last year and have a whole new set of potential credits you can claim.

Any time your tax situation changes in a meaningful way, it’s a good idea to enlist some help. Spending a little money might help you avoid a scenario where you miss out on a tax break you’re entitled to.

It never hurts to hire help

Remember, the only real drawback to hiring an accountant for tax help is the fee at hand. But you may be surprised at how reasonable that fee is. And the tax savings you reap by virtue of getting help might more than make up for the fee you pay.

Mark Steber, Chief Tax Information Officer at Jackson Hewitt Tax Services, says, “I almost always recommend people work with a tax professional rather than risk filing a tax return by themselves.” And that’s advice you may want to take to heart in the coming weeks.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. This card features a 0% intro APR for 15 months, 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.

Read our free review

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.

“}]] Read More