Money Management

Driving underinsured is risky because it could be a violation of the law and leave motorists vulnerable to substantial financial loss. Find out more. 

Auto insurance is definitely not the most fun purchase to put on your credit card. But, every driver should make sure they not only have the coverage required of them but that they have a sufficient amount of insurance coverage to protect their checking account balance if something goes wrong.

While it may be tempting to purchase as little insurance as possible, be sure to consider what can actually happen to drivers with too little coverage.

Inadequate insurance coverage could be a violation of state law

In most states, a certain minimum amount of liability insurance is required. Driving without that required coverage could have serious legal consequences. Penalties for driving without insurance can include fines, license suspension, suspension of a vehicle registration, and even potential jail time.

There is absolutely no situation in which any driver should allow themselves to get behind the wheel of a vehicle without state minimum required insurance coverage. The consequences are just too great.

Drivers with too little insurance could face huge out-of-pocket losses

Drivers who do not have the required liability insurance could be held personally liable for any damage they cause others. For example, if a motorist causes a crash and doesn’t have insurance and does $10,000 in damage to someone’s property, the property owner could sue the at-fault driver who caused the incident. If the owner gets a judgment against the driver, the owner could take action to collect, such as getting a court order to garnish the driver’s wages.

In many states, drivers who cause crashes are responsible for not just property damage but also for injuries or deaths they cause. Pain and suffering, emotional distress, medical bills, and lost wages resulting from injuries or from a fatal accident can come at a cost of tens of thousands or even millions of dollars. Drivers without liability insurance can be sued for this money and have collections actions taken against them.

Drivers can also face losses even if they have the state minimum required liability insurance. If the damage a driver does to others exceeds the amount of liability coverage they have, they could be personally sued for any money their insurer won’t pay. There’s a very real chance of this happening, since state liability coverage requirements are usually pretty limited. Many states only require $25,000 per person and $50,000 per accident or less in liability coverage and even relatively minor injuries can end up costing more than that amount.

Without the right insurance, a driver may not be able to afford to repair their own car

A motorist who only has liability coverage would also have no protection for their own vehicle if something went wrong that wasn’t caused by someone else. Without comprehensive and collision coverage, that driver would have to pay the out-of-pocket costs to repair or replace their vehicle and cover any resulting additional losses from the crash. Most states don’t require these kinds of insurance, but a driver without them could still face financial disaster.

No driver should risk losing tens of thousands of dollars — or more — by driving without the right insurance. Be sure to get plenty of liability coverage, and also a policy that will replace a vehicle owned by the policyholder if something goes wrong. It’s the only way to avoid potential financial disaster.

Our best car insurance companies for 2022

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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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Extreme couponing allows you to get items for very little money by using coupons. Read on to learn which stores were one extreme couponer’s go-tos. 

For many years, I was an extreme coupon shopper.

This meant I was one of those people at the register with a handful of coupons who paid pennies on the dollar to buy carts full of stuff. While I was in school, this habit was great for my bank account because I got a ton of stuff for free. It helped me avoid giving my credit cards a workout so I could use my money for other things.

There were certain stores that were far better for couponing than others. Here are three of my favorites that I used to frequent all the time during my extreme couponing days.

1. CVS

CVS was my absolute favorite store as an extreme couponer, and I generally purchased multiple items there every week.

It was a great store because I could combine manufacturer coupons with CVS savings opportunities. CVS allows multiple coupons to be used on items, and it was often possible to get things for free by combining a manufacturer and store coupon.

Plus, CVS used to regularly provide deals like $5 off a $25 purchase. I would “buy” $25 worth of items that ended up costing almost nothing with the manufacturer and store coupons, and then purchase something I wanted — like milk or other groceries — with that $5 so I would end up spending a dollar or two for $25 worth of products.

CVS ExtraBucks could also be earned on transactions and reused week after week, so by making sure I put together deals that allowed me to earn ExtraBucks, I could spend those instead of money and get carts full of items with literally no cash required.

2. Walmart

Walmart has a very favorable couponing policy that’s really great for extreme couponing. The store accepts manufacturer coupons as well as internet coupons that you can print at home, as long as those coupons scan on the store’s registers and are not for free products with no purchase required.

One of the best things about Walmart’s coupon policy is that it allows for overages. That means if I have a coupon for an item that costs less than the coupon is for, the remaining value of the coupon will be applied to my transaction.

Say, for example, I had a coupon for $1.50 off a particular brand of toothpaste that cost $2 and that Walmart put it on sale to buy one, get one free. If I bought two toothpastes and used two coupons, the two toothpastes would cost $2 but I would have $3 in coupons. Under Walmart’s policies, I could get an extra $1 off my transaction so I could reduce the cost of other items I was buying.

3. Walgreens

Walgreens was another great store for extreme couponing because it allows coupons to be used on clearance items, and it allows you to combine manufacturer coupons with store coupons, including Register Rewards. Being able to stack coupons often made it possible to get deep discounts on items that Walgreens put on sale at the same time as a manufacturer offered a discount.

Walgreens also allowed up to four identical coupons per day, which made it possible to score multiple deals and stockpile free items if I had a bunch of different manufacturer coupons during a good sale.

While Walgreens doesn’t accept coupons for items that are greater than the value of the item being purchased, it was still possible to get many items for free or close to it by being strategic about pairing bargains from the store and the product manufacturers.

Whether you want to get into extreme couponing or you simply want to use coupons to save a few bucks, you should consider looking at the deals these stores offer as they present great opportunities to save if you can use coupons wisely in accordance with their favorable policies.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.

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After a motor vehicle accident, it’s important drivers take steps to comply with the law and protect their rights. Here’s what to keep in mind in this situation. 

When a car accident occurs, the crash can have a big impact on the driver’s checking account and physical health. It is important to try to minimize the damage that can result from a crash.

There are five steps motorists need to take in order to try to limit their potential loss and protect their rights. Here’s what they are.

1. Stop at the crash scene

After an accident, it’s critical to stop at the scene of the collision. Doing so is required by law and, of course, it’s important to make sure no one has been hurt and to provide assistance if someone has been harmed by the accident. If you leave the scene, your actions could constitute a hit and run, and many states even consider hitting a parked car and driving away without leaving contact information as one, too.

2. Obtain the contact information of the other driver and witnesses

Any drivers involved in a collision should exchange contact information and provide details about their auto insurance policy. This is important because, in most cases, the driver at fault for the crash will be responsible for paying for damages sustained by other parties. Exchanging information allows for the insurance claims process to unfold properly.

If there were witnesses to the crash, it’s a good idea to obtain their contact details as well. Sometimes, when a dispute arises over who is at fault and whose insurance must pay, those witnesses can be called upon to provide invaluable evidence.

3. Report the accident to the police if required

Reporting accidents to the police is required in certain circumstances. State rules can differ on exactly when a crash must be reported. In general, though, an accident must be reported when anyone is hurt or killed or when a vehicle is damaged so severely it cannot be driven.

When in doubt, it’s usually best to contact the police to report the crash. Not only will this help to ensure that motorists are in full compliance with state laws, but if police come to the crash scene, they will also gather evidence that could be helpful in proving who is at fault for an accident.

If police make a report at the crash scene, this can be used to show who caused the accident and whose insurance should pick up the tab for damages. Police may also issue a ticket, which can serve as additional evidence the driver who was ticketed should be held liable. In some circumstances, such as when a motorist was impaired, police may also be able to gather additional details relevant to the determination of fault and any resulting insurance claims.

4. Contact your auto insurance company

All drivers involved in an accident should contact their insurers, even if they think the other motorist’s coverage will pay the bills. Insurers help drivers navigate the claims process and recover funds even when someone else is to blame. If the at-fault driver has no insurance or too little coverage, crash victims may also rely on their own insurer to pay if they have uninsured or underinsured motorist coverage.

5. Get medical attention if there could be an issue

Finally, the last crucial step is to get medical attention if there’s a chance the crash caused injury.

Doctors can diagnose any issues that may be more serious than they initially seem. They can provide treatment for problems that do exist. And they can document injuries related to the collision, so those who were hurt have evidence needed to obtain proper compensation from the other motorists who harmed them.

Taking these five steps is crucial for any motorist who wants to protect their rights and make sure they minimize their losses following a motor vehicle accident.

Our best car insurance companies for 2022

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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It’s important to be timely with estimated tax payments. Read on to see why. 

One nice perk of being a salaried employee is having taxes withheld from your earnings every pay period. In other words, if a $2,000 paycheck hits your checking account, that $2,000 is yours to spend. You don’t have to allocate a portion of it for tax purposes because your taxes have already been covered for that pay period.

When you’re self-employed, things work differently. You’re required to pay the IRS taxes as you earn money, but those taxes won’t be deducted from your wages off the bat. Rather, you’ll have to pay them on a quarterly basis.

As an example, let’s say you receive a $2,000 check for doing work for a given client. That $2,000 isn’t all yours to keep, because the IRS is entitled to a portion of it. Only you don’t have to send money to the IRS every single time you get paid. That could end up being cumbersome. Instead, you have to send the IRS a payment every quarter.

If you don’t make estimated tax payments, you could face penalties from the IRS. So it’s important to mark the due dates of those payments on your calendar.

When are estimated quarterly tax payments due in 2023?

For the 2023 tax year, estimated tax payments are due on:

April 18 (which was the annual tax-filing deadline)June 15Sept. 15Jan. 15, 2024

The reason your final payment for the year is due in mid-January of next year, as opposed to Dec. 31, is that you might get paid for some of the work you do in 2023 on Dec. 31. From there, you’ll need to calculate your income for the quarter and year to see what your estimated tax payment amounts to. And it may not be reasonable to do that within a day. As such, the IRS gives you more time to make your payment.

You might also notice that there’s only a two-month gap between when the first quarterly tax payment is due this year and when the second needs to be submitted. The IRS could conceivably make it so that second quarter taxes are due in mid-July and third quarter taxes are due in mid-October — but it doesn’t. Keep these dates in mind so you don’t get confused.

Aim to make each payment on time

Skipping an estimated quarterly tax payment could cost you money in the form of a penalty, so it’s best to be timely with your payments. The IRS even says on its website that you “may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.”

Now if you don’t remember to make an estimated tax payment on time, your best bet is to send it in as soon as you remember. The IRS will accept a payment from you at any time — you don’t need to wait until the next quarter’s deadline. Paying your estimated taxes sooner rather than later could help keep your penalties to a minimum if you miss the official deadline.

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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.

 Read More