Money Management

Sick of overpaying for car insurance? You’re not alone. Find out how to combat rising insurance costs with these three strategies. 

Near the end of 2023, I got a renewal notice from my car insurance company. Since I was on a pay-per-mile plan, which had previously saved me about $480 a year, I was shocked to find my per-mile rate had increased from $0.047 to $0.055 per mile. Not only that but my base rate, which I pay every month in addition to the miles I drive, also increased by about $15 a month. All in all, my premium was going to be significantly higher, thus erasing a lot of the savings I had enjoyed during my first year.

For many Americans, this story is all too familiar. Car insurance rates have increased over 19% since 2023, which puts the average annual premium in the U.S. at over $2,500, according to research by Bankrate. Meanwhile, car insurance companies, whose premiums are influenced by the rising costs of repairing cars and the increased frequency of car accidents, seem unlikely to lower insurance rates anytime soon.

That puts Americans in a tight spot. How much are we willing to pay to protect ourselves from the unexpected? Sometimes, even the minimum coverage mandated in most states can be more expensive than what you can afford.

If you’ve been struggling to pay your car insurance premiums, let’s look at some strategies to cut your rate in 2024.

1. Raise your deductible

In general, the higher your deductible, the lower your car insurance premium.

Recall that your deductible is the amount you pay for an insurance claim. If you have a $500 deductible, for instance, you would pay $500 when you have an accident, even if the total claim is $5,000.

Since a lower deductible means your insurance company is responsible for more of the total costs, you pay a higher monthly premium as compensation. Likewise, a higher deductible would mean you’re sharing more of the costs, thus resulting in a lower car insurance rate.

Of course, sometimes a lower deductible is necessary, such as when you don’t have enough savings to cover a high deductible, like $1,000. That said, for those who can cover a high deductible, doing so can result in more savings for you, especially if you don’t get into accidents frequently.

2. Make sure you’re getting all your discounts

Car insurance companies offer discounts to policyholders to reward them for safety, loyalty, or actions associated with safer driving, like getting good grades or driving less often.

While most car insurance companies apply these discounts automatically, some may fall between the cracks, thus robbing you of savings. Similarly, some companies may not offer the same discounts as others, which can be a missed opportunity if you’re eligible for them.

To give you an idea of what’s out there, here are the most common car insurance discounts:

Accident-free drivingDriver training and education coursesDefensive driving courseLow-mileageClean recordGood studentLoyaltyBundled insurance policiesMulti-car policyContinuous coverageVehicle safetyDriver affiliationMilitaryPay-in-fullPaperless statement

3. Work with an independent insurance agent

Independent insurance agents take the hassle out of shopping for car insurance. They don’t work for one company (hence “independent”), but rather act as a go-between for numerous car insurance companies and drivers. Working with an agent can help you save money, as they can take your information and match it with the company that offers you the lowest premium.

Working with an independent insurance agent is free, but there is one caveat: They don’t work with every insurance company. So, while they can point you to the cheapest policy of companies within their network, they might exclude smaller, lesser-known companies that are a better fit for you.

It’s worth connecting with an agent, however, if it means saving money on car insurance this year. With premiums skyrocketing, you need all the help you can get. Reach out to some insurance agents in your area (a Google search is sufficient to find them) and see how much they could help you save on insurance in 2024.

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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Who cares about credit scores? Well, you should, actually. Learn why your credit score matters and how to keep yours in tip-top shape. 

Let’s be honest: For the average person, credit scores aren’t exactly a compelling topic. It’s likely that you don’t think about yours too often, unless you happen to be gearing up to borrow money in the form of a loan or a new credit card.

Unfortunately, a recent study by Bread Financial found that 1 in 3 millennials and Gen Zers have been told by someone in their life that their credit score is irrelevant. And this couldn’t be further from the truth. Let’s take a closer look at how credit scores work and why they matter — as well as a few ways to boost yours.

How do credit scores work?

When we talk about credit scores, we’re usually referring to FICO® Scores — this is the one used by 90% of lenders. A FICO® Score is based on five factors:

Payment history (35%): Your history of paying back borrowed money on-time and in full is the biggest piece of the FICO® Score pie.Amounts owed (30%): This is the amount of borrowed money you owe your creditors (like credit card companies and mortgage lenders).Length of credit history (15%): Having a long credit history is important because it shows lenders that you’re a known quantity.Credit mix (10%): Having a mix of credit types (like credit cards, auto loans, and personal loans) is good for your credit score.New credit (10%): If you open new accounts frequently, you could lose credit score points. It’s good to maintain old accounts in good standing.

Why do credit scores matter?

Your credit score has a major impact on the interest rates you’re charged for borrowing money in any form — whether it’s a personal loan, auto loan, or even a mortgage loan. And having a higher credit score means you’re more likely to be approved for the best credit cards available. But your credit score matters in other ways, too.

In some states, employers can check your credit report (not your exact credit score) as part of a general background check to decide whether to hire you. And having a lower credit score can result in a higher cost for auto insurance. If you apply to rent an apartment, your potential landlord might also run a credit check, and if your credit score is low, you might not be approved as a tenant. Your credit score is important for many aspects of your personal finances. It’s no wonder that the Financial Feminist herself, Tori Dunlap, called them our “adulting GPA.”

How can you improve your credit score?

Thankfully, it’s fairly straightforward to improve your credit score, once you know how they work. Here are a few key areas to focus on.

Make on-time payments: This is the most impactful way to increase your credit score. Payment history makes up the biggest percentage of your FICO® Score, after all. And you can commit to pay on time, every time, right now.Pore over your credit report: Another easy way to improve your score is to get a copy of your credit report (go to AnnualCreditReport.com to do this for free) and check it for errors. If you spot one (such as a delinquent account that was never yours), you can dispute it with the credit bureau and have it removed.Pay down debt: This may not be possible for you immediately, but if you can work toward a higher income or cut your monthly spending (perhaps by switching auto insurers or cellphone service providers?), this is a worthy goal. I boosted my credit score by 100 points in less than a year by paying off debt. Paying down debt improves your credit utilization ratio, which factors into the “amounts owed” part of your score.

Ultimately, your credit score is more important than you may have realized. Take your newfound knowledge and make the moves necessary to keep your credit score in tip-top shape. Your future self will thank you when they need to borrow money, rent an apartment, or find a new job.

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Want to travel within New York state this winter without going broke? Don’t miss this Amtrak BOGO ticket deal. Find out what dates and routes are eligible. 

If you need an escape this winter but want to stay on budget, you may want to consider alternate forms of transportation when making your travel plans. Air travel can be costly, making it harder to stretch your vacation budget. But other options like traveling by train can be a great solution if you don’t want to deplete the funds in your bank account.

Amtrak runs sales throughout the year that can help travelers see more of the country while honoring their budgets. This January and February, Amtrak is selling buy one, get one free tickets for train travel within New York State. This deal is valid when traveling on Tuesdays, Wednesdays, or Thursdays. Here’s what you need to know about this offer.

Buy one adult coach ticket, get one free this winter

If you’ve been hoping to travel more in 2024, Amtrak has a midweek getaway deal that might interest you. Through Feb. 29, travelers who purchase one full-fare adult coach ticket for travel within New York State can score a second adult ticket for free.

To be eligible for a free ticket, you must travel on Tuesdays, Wednesdays, or Thursdays, and tickets must be purchased at least one day before departure. There are no blackout dates. This deal is only available on select trains, dates, and departures.

This BOGO ticket offer is valid for the following routes:

AdirondackEmpire StateEthan AllenMaple Leaf and Associated Thruways

This promotion offers an excellent opportunity to explore The Empire State with your partner, best friend, or family member. Even better, because of the savings provided, you can plan an exciting adventure without negatively impacting your personal finances.

Before finalizing your travel plans, review the terms and conditions of this offer to avoid any surprises. When purchasing your tickets, consider paying with one of the best travel credit cards to earn rewards on your spending.

Four additional ways to save on winter travel getaway costs

If this deal isn’t for you, there are other ways to save money while planning an exciting winter getaway. By being strategic when making your plans, you can stay on budget.

These tips could help you keep more money in your pocket:

Stay close to home: You don’t have to travel far to have fun and get a much-needed break. Consider taking a nearby road trip to keep your travel costs low. Check to see if some interesting nearby towns or cities are a reasonable drive away.Don’t ignore deals: Winter travel sales like the one mentioned above can be a win for your wallet. Pay attention to email newsletters from airlines, hotels, and other travel brands in your inbox so you don’t miss deals that could make your next trip cheaper.Be flexible with your dates: Flexibility is vital if you’re looking to score the best deal. Consider planning a midweek getaway to avoid paying more than necessary. Since weekends are a popular travel time, costs can be higher, and there may be crowds.Use your credit card rewards: If you’ve been hoarding miles or points, now may be an excellent time to put them to use to save money on a winter getaway. You may be able to redeem your rewards credit card rewards for free or nearly-free travel.

If you want to see New York without the added stress of driving in snowy conditions, why not travel by train? With Amtrak’s winter deal, you can take a short break from everyday life and keep your trip on a budget. Deals like this prove that a vacation can be fun and affordable.

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Airlines have frequent flyer programs to reward their most loyal passengers. Discover a rarely mentioned downside of these programs before you sign up. 

Frequent flyer programs are generally considered a good deal for travelers. For starters, they’re free to join. Once you do, you can earn miles every time you fly with that airline, and then use those miles to pay for your flights.

If you travel and spend enough, you could also reach the program’s elite status tiers. Passengers in these tiers get complimentary extras. And the benefits get better the higher you make it in the program. Know how airlines always call passengers in those special platinum and diamond tiers for early boarding? Work your way up in the frequent flyer program, and that could be you!

It may seem worthwhile for those who often travel with the same airline. Everyone likes to feel special. But this is actually one of the drawbacks to frequent flyer programs that doesn’t get talked about enough.

Elite status isn’t that special

Perks of elite status depend on the frequent flyer program and the status tier. But most airlines aren’t exactly reinventing the wheel here. At higher tiers, here’s a rundown of many typical perks you can expect:

Complimentary checked baggagePriority check-in, security screening, and boardingComplimentary upgrades when availableBonus miles on reservationsA complimentary or discounted membership to the airline’s lounge program

These benefits probably look great, and they can be. It’s nice to check a bag without a fee, board early, and maybe score a free seat upgrade.

Here’s the problem: You can already get many of these same benefits with airline credit cards. Priority boarding, free checked baggage, and even a membership to the airline’s lounge program — these are all perks airlines offer through their credit cards, too.

Many of the airline cards with these benefits have annual fees, to be fair. But airline status isn’t free, either. You usually need to spend quite a bit of money with an airline to move up in its frequent flyer program. For example, with Delta SkyMiles, you need to earn Medallion Qualification Dollars (MQDs) to get elite status in 2025. Here’s how many MQDs you need in 2024 for each status tier:

Silver: 5,000Gold: 10,000Platinum: 15,000Diamond: 28,000

For the higher, more valuable tiers, you’re looking at $15,000 to $28,000 in Delta spending. Would you rather do that, or just open one of the Delta credit cards? Even the most expensive Delta card is currently $550 per year — a bargain in comparison.

Don’t overdo it trying to get elite status

Joining frequent flyer programs makes sense so you can earn miles with the airlines you use most. And if you have a carrier you like, you might want to make it your main airline and fly with it whenever possible. You’ll earn more miles with it this way, and you could potentially reach its elite status tiers.

There are also some ways to boost your frequent flyer status more quickly. Getting an airline credit card is one of the best options, because many of them allow you to earn extra points toward elite status.

But some people take chasing elite status to an extreme. They may ignore better flight deals and spend twice as much, just to make sure they earn those status points. There are even those who do mileage runs, taking flights and immediately going home so they can earn extra points (yes, it’s a real thing people do).

Having elite status is nice, but it’s not that nice. The truth is that most people don’t travel enough to get it naturally, and that’s fine. If you can qualify for it without putting in extra time and effort, that’s great. But it’s not necessary, and if you really want extra perks when you fly, travel credit cards are a much easier option.

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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.Lyle Daly 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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Visiting a museum is a great way to learn history, art, or science in a fun way. Read on for money-saving tips from an ex-museum professional. 

Before I became a personal finance writer and editor, I spent over a decade as a museum collections specialist, curator, and executive director. The museums I worked for usually had a set admission fee or a suggested donation for visitors to pay. Museum admission costs vary, but I’ve visited (or opted not to visit, in some cases) museums that charged more than I was hoping to pay.

Luckily, there are ways to get around a hefty credit card charge for a museum visit. Here are a few of my favorite tips.

1. Look for relationship deals

It’s wonderful when separate museums develop friendly relationships — especially because it can save you money as a visitor. One of the museums I worked for several years ago had a ticket deal with another local museum that saved visitors $5 on tickets to both — it was a great buy for out-of-town visitors, many of whom were already expecting to check out both museums.

If you’re visiting a new city for a vacation and intend to see some museums, look at their websites ahead of time to see if such a deal exists. Or give them a call.

2. Lean on your affiliations

Got a AAA membership? Or a Bank of America credit card or bank account? You could be eligible for free or reduced-cost museum admission. If you’re receiving SNAP benefits, you could visit museums for free or for cheap via the IMLS Museums for All program. If you’re active-duty military, you and your family can visit Blue Star Museums for free every summer (this program runs from Armed Forces Day to Labor Day).

You might also be eligible for free or discounted admission based on where you live — some museums love to save locals money. It’s worth listening to the ticket clerk at the museum you’re visiting to see if they rattle off a list of potential discounts based on affiliation. You can also ask if you qualify for any kind of discount — now is not the time to shy away from a senior discount!

3. Check out small museums for cheap

This tip is near and dear to my heart, because most of the museums I worked for were of the small (and sometimes tiny) variety. Small museums do a lot with very little money, and the staff is truly dedicated — it actually matters when you visit these museums. And you’ll save money to boot!

You can often expect admission to cost under $10 per person, and in some cases, you’ll get free admission for kids. Plus, some small museums have nice outdoor spaces or even indoor play areas for kids to enjoy.

4. Go to your library

Libraries and museums share a lot of connective tissue, and often work together for the benefit of their local communities. This extends to free or discounted museum admission.

Head to your library to see if it offers passes you can borrow to visit nearby museums. You might even get to see museum exhibits right at the library, for free — on multiple occasions, I curated photography and artifact exhibits for libraries.

5. DC Smithsonian museums are FREE

OK, this one only applies to people visiting or living near our nation’s capital. If you’re planning a trip to Washington, D.C., and haven’t added some of the local Smithsonian museums to your to-do list, rethink that.

The Smithsonian museums, galleries, and the National Zoo in Washington, D.C., are all free to visit. In a few cases, you have to get timed entry tickets ahead of time, but that only costs you in planning time, not money. And the variety of museums means there’s something for just about everyone — as a lifelong history buff (and Washington, D.C.–area native), my favorite has always been the American History Museum.

While I highly recommend SI museums, I don’t suggest trying to drive (and park) in Washington, D.C. Instead, use the excellent public transportation available and don’t worry about having to find a spot for your car or absorb a hit to your checking account for parking charges.

6. If you go often, become a member

If you’re always taking your kids to that small local history museum with the amazing indoor play area and paying an admission fee on every visit, consider becoming a member and paying an annual fee instead. Most museums include free admission as a perk for members, and if you visit often enough, you can easily justify the higher upfront cost. If the admission fee is $5 per person, and you can buy a family membership for you, a partner, and your two kids for $100 a year, it’ll pay for itself in just five visits.

Plus, you’ll likely also be privy to other membership benefits. You might get 10% off on gift shop purchases, discounted rates on special event tickets, or even a lower price to rent a space for a birthday party, wedding, or family reunion. And you get the warm feeling that comes from supporting an institution you love. For extra credit (and more chances to visit museums for free or cheaper), consider becoming a member of a broader arts and culture organization.

I might not do museums as a career anymore, but I still love them and visit them whenever I can (in fact, I visited 18 new-to-me museums in four countries in 2023). Museums are worth your time — and if you use these tips, you can lessen the impact on your personal finances.

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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.Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

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