Money Management

Car insurance has become a big, painful monthly expense for many Americans. See how drivers can save money on car insurance. [[{“value”:”

For millions of Americans in the past few years, car insurance has gone from a low-cost afterthought to a bafflingly expensive and stressful monthly bill. It’s exhausting to contemplate just how much the price of car insurance has skyrocketed. But let’s look at the numbers: according to Bloomberg analysis, from January 2020-January 2024, car insurance rates went up by 37%.

Car insurance can be a painful part of the monthly budget, because unlike a car payment, it never goes away. And many drivers don’t feel as if car insurance premiums are fairly priced. Even for drivers who follow the speed limit and don’t get in car crashes, car insurance rates might still have gone up in the past few years.

For anyone who’s tired of feeling overcharged and helpless about car insurance premiums, here are a few ideas for how to take back control.

1. Shop around for car insurance

It’s surprising how many people just stay with the same auto insurance company year after year, even though better deals might be out there. Research from The Motley Fool Ascent found that 75% of drivers do not shop for car insurance quotes every year, and 20% of drivers have never shopped for price quotes on car insurance.

This is a huge missed opportunity. When drivers don’t shop for price quotes, they end up just accepting the first (higher) price that their current car insurance company offers. But the magic of the free market could potentially help drivers reduce their costs. By embracing competition, and making auto insurance companies work harder for their business, drivers can potentially get cheaper car insurance.

2. Raise deductibles and change coverages

Car insurance is intended to protect drivers from worst-case scenarios and disastrous costs that they can’t afford. But what about drivers who have a healthy emergency fund? People who have some cash in the bank should reconsider whether they really need a $500 or $1,000 deductible. How necessary are optional coverages like roadside assistance or rental car reimbursement?

Drivers who have decent financial stability should consider re-evaluating their car insurance policies, and be willing to cover some of their own financial risks from a car crash, instead of expecting car insurance to cover every little thing. When drivers accept a higher deductible, and agree to take the risk of paying for their own rental cars if their car is in the shop after a crash, this can help drive down the cost of car insurance premiums.

3. Get a safe driver discount plan

A common refrain among car insurance customers is: “My car insurance premium isn’t fair, because I am a safe driver!” Now drivers have a chance to prove it. Many of the best car insurance companies now offer special programs, called “usage-based insurance” or “telematics car insurance,” to reward safe drivers with discounts.

If drivers sign up for these special plans and agree to share some driving data with the car insurance company, they can be rewarded for demonstrating safe driving behaviors like safe stops and starts, following the speed limit, and avoiding driving during higher-risk times of day. Some of the best safe driver rewards plans offer savings up to 30%-40%.

Bottom line

Drivers should not get discouraged by high prices of car insurance. People still have options and can take action to get a better deal — by shopping around, changing their auto policies, or using special car insurance with safe driver discounts.

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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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One way to fight inflation is to purchase everyday items at a dollar store. Keep reading to learn about 10 purchases you don’t want to miss. [[{“value”:”

According to Consumer Reports, shopping at Dollar General, Dollar Tree, Family Dollar, or 99¢ Only can save you an average of 29% over national brands. These savings help explain why Dollar General’s fastest-growing group of new customers earn $70,000 or more. Everyone wants to save money. While it’s true that dollar stores don’t always offer the lowest prices, here are 10 purchases you can count on to save you money.

1. School (and office) supplies

Whether you’re constantly buying school supplies for the kids or have a home office, you know how quickly you can burn through pens, pencils, crayons, notebook paper, tape, glue, and other similar supplies. Fortunately, many dollar stores have an entire aisle dedicated to all things school and office. You may even want to turn to a dollar store for larger items, like book bags and lunch boxes.

2. Cleaning supplies

It’s possible to clean your home for a fraction of the price by purchasing cleaning supplies at one of the 22,000-plus discount dollar stores nationwide. Whether you’re looking for toilet bowl cleaner, cleaning rags, or a mopping solution, dollar stores have you covered.

3. Candy

If you haven’t been in a dollar store recently, you might not know that most stores have a shockingly large selection of candy. So next time you bribe the kids or indulge your sweet tooth, you can pay less by checking out a dollar store.

4. Greeting cards

If you’re keeping an eye on your checking account and are shocked by the sky-high prices on today’s greeting cards, you’ll be glad to know that dollar stores offer a great selection. Instead of paying up to $10 for a single card, you can pick up a perfectly lovely card for $1.

5. Gift bags

If you pick up a 13″ Hallmark gift bag at Kohl’s, you’ll pay $6. Fortunately, you can still find a great selection for $1 each at most dollar stores. Even at “dollar” stores that don’t strictly stick with $1 price tags, you can still purchase gift bags for less than one-third the price you would pay elsewhere.

6. Party supplies

If you’re throwing a party, you know that nearly everything you buy — including crepe paper streamers, paper plates, paper cups, and candles — will only be used once before they’re tossed in a bin somewhere. Why pay more than necessary for one-time-use products, especially when you can purchase them at a dollar store?

7. Storage containers

Whether you’ve always been into organizing or are planning to give your entire home a makeover, you’ll want to check out the prices on storage containers at a dollar store. For example, Dollar General sells woven plastic storage bins for $1, making it easy — and inexpensive — to organize small toys, under-sink kitchen supplies, or personal care items.

8. Vases and flower pots

While many of the best deals at dollar stores involve one-time-use products like wrapping paper and party supplies, more permanent products available at many dollar stores are vases and flower pots. Whether you’re looking for a vase for your kitchen or flower pots for your patio, checking a dollar store first could pay off nicely.

9. Toiletries for guests

If you’re one of those hosts who works hard to make guests feel comfortable, you can put an impressive basket of supplies together for a song at a dollar store. Pick up a wicker basket or small container on one aisle and fill it with a spare toothbrush, floss, small shampoo and conditioner, and other everyday items a guest to your home may forget to bring. It’s an easy way to impress people without spending more than $10.

10. Deodorant

If you or a partner are into sports or you have teenagers at home, you know how much deodorant your household goes through in one year. Deodorant is another product most dollar stores stock at a deep discount. If you’re going to pay more for something, it probably ought to be something fun. When was the last time you heard someone describe deodorant as fun?

Whether you’re trying to put more money in savings or working hard to pay off debt, discounts are just one of the reasons to visit a dollar store. In most stores, there’s a constant turnover of products, meaning you always have something new to look at. After all, you never know when you’ll need a cute pair of reading glasses or a holiday-themed serving platter.

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. It 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.

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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Costco gift cards can help you save money at your favorite stores. Check out which five gift card bundles are among its best. [[{“value”:”

Costco members can save money by buying gift cards to their favorite retail stores and restaurants through Costco. It’s one of the easiest ways to make your $60 Costco membership pay for itself.

Whether you shop for gift cards online or in-store, Costco will add about 10% to 30% of value on its gift card bundles.

Although there are some limitations on how many gift cards you can buy for certain brands (more on that below), this Costco hack could help you save on things you’re already buying, like groceries, airfare, and coffee.

With that in mind, here are the seven best gift card deals at Costco right now.

1. Peet’s Coffee

Price: $79.99

Total value: $100

Fans of Peet’s Coffee can save $20 at Peet’s when they buy $100 worth of gift cards at Costco for about $80. The gift cards come five to a pack and are delivered electronically to your email. While you can upload gift cards to your Peet’s account, you can’t have more than $200 in value on your account at one time.

2. Uber

Price: $79.99

Total value: $100

Here’s an exciting new addition to the gift card offerings. Costco is now selling two $50 Uber gift cards for about $80. These cards can be used for Uber rides and Uber Eats orders. Since Uber and Costco are now partners, this gift card bundle could save you $20 on your next Costco order through Uber.

But note the limitations. Members can purchase two units ($200 of value), but are limited to one transaction. In other words, you can’t buy one gift card today and another tomorrow in separate transactions. If you want the full $200 value, you have to buy them both in one transaction. Otherwise, this opportunity is no longer available.

3. Topgolf

Price: $79.99

Total value: $100

Two $50 e-gift cards to Topgolf are yours for $79.99. The cards can be used at any U.S. Topgolf locations and toward most Topgolf purchases, excluding payments for parties, events, or Platinum memberships. Gift cards don’t expire, and Costco members can purchase five units per membership with no transaction limitations.

4. Instacart

Price: $79.99

Value: $100

If Instacart is your grocery delivery app, you’re in luck: Costco members can buy a $100 Instacart gift card at $79.99 apiece. That’s $20 of Instacart savings just by buying your gift card through Costco. You can buy a maximum of two units, and unlike the Uber gift cards, you don’t have to buy them both at once.

There is, however, one condition that’s worth noting: “The value of your card may only be credited to one account and will be fully redeemed upon use.” That last part is important. If your Instacart order isn’t above the value of your gift card (say, $100), there’s a chance the full amount won’t be applied. To avoid potentially losing money, save this gift card for when you have an Instacart order above $100.

5. Subway

Price: $79.99

Total value: $100

Subway eaters can buy $75 worth of sandwiches, chips, and chocolate chip cookies for about $60 when they purchase Subway gift cards at Costco. Gift cards come as a bundle of five e-gift cards worth $15 apiece. Although the gift cards are virtual, you can upload them to your Subway mobile app, or scan the QR code at checkout.

All in all, buying gift cards at Costco could save you money instantly. But that’s only if you have a plan to use the gift card. Otherwise, you’re trading something that can be used universally — cash! — for something that has limited uses. It might be best to keep a running list of gift cards that Costco sells, then when the time is right, buy your gift card at Costco to take advantage of the savings.

Top credit card to use at Costco (and everywhere else!)

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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. The Motley Fool has a disclosure policy.

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Are your credit cards serving your needs? Read on to see why a downgrade could make sense if they’re not. [[{“value”:”

It’s not uncommon for credit card companies to charge users an annual fee. Sometimes, that fee is $95. Other times, it can be a lot more. Some credit cards, for example, charge hundreds of dollars per year.

You may reach a point when you no longer want to pay a given card’s annual fee. Rather than close your account, you could downgrade your card instead.

When you downgrade a credit card, you switch to a card that’s offered by the same issuer that costs less. You may, for example, be able to downgrade from one credit card with a $95 annual fee to another with no fee at all. Here are some reasons it makes sense to downgrade a credit card rather than cancel.

1. You’re not getting good value out of your annual fee but still want most of the card’s benefits

Annual credit card fees are often worth paying. A credit card with a costly fee could give you perks like hotel credits and free checked bags that put that money back into your pocket, and then some.

Rather, downgrading a credit card makes sense when you’ve stopped getting good value out of your annual fee. Simply put, if you’re not using your credit card often enough or you’re not scoring enough cash back to recoup your annual fee, then it’s not worth paying.

But there may be a lower-cost or free version of the card at hand that gives you access to the perks you need without having to spend anything just to have the card. That way, you may be able to keep most of the card’s benefits.

2. You want to maintain your credit card limit

If you have a credit card that’s no longer serving your needs, you could always cancel it. But that might result in a hit to your credit score.

One factor that goes into calculating that number is your credit utilization ratio, or the amount of available revolving credit you’re using at once. If you cancel a credit card completely, you’ll lower your total spending limit across your various cards. That could push your utilization into unfavorable territory.

If you opt to downgrade your credit card instead, you may be able to keep your credit limit intact. That could help you avoid a hit to your credit score.

Say you have a $10,000 credit limit across your various cards and you owe $2,000 in total. That puts you at 20% utilization, which isn’t bad (staying at 30% or below is generally good for your score).

But if you cancel one of your credit cards with a $4,000 limit, suddenly, your total spending limit is $6,000. If you owe $2,000, that puts you at 33% utilization, which isn’t as good for your credit score. If you downgrade to a lower tier of that same card, you might keep that $4,000 spending limit.

3. You want to avoid a hard inquiry on your credit report

If you have a credit card with an annual fee that you no longer want to pay, you could cancel it and apply for a new card with no fee attached to it. But applying for that new card will result in a hard inquiry on your credit report. And that usually means seeing your credit score drop by a few points.

A minor dip in your credit score generally won’t be an issue if your score is in great shape to begin with. But if you’re on the cusp of being able to qualify for a loan, the minor drop that comes with a hard inquiry could push you below where you need to be for approval. The benefit of downgrading your credit card is that it generally doesn’t require another hard inquiry on your credit report, since you’re already an approved cardholder.

It doesn’t make sense to keep paying an annual fee on a credit card you don’t use a lot — or don’t use enough to make your fee back. But before you cancel and close that account, consider downgrading it instead for the reasons above.

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. It 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.

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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