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Car refinance/insurance

I'm trying to lower as many bills as I can as I will be a SAHM once I give birth in August. I planned to refinance my van but every company I have checked with, either I don't owe enough, it has too many miles or its too old. The one company that would have done it despite these things, wouldnt because I owe more than the NADA value. (Its a 2002, with 118,000 miles. I owe $5800 and the NADA value is around $3000 or so). I'm considering seeing if I can get a personal loan to pay it off. Then I could also drop my full coverage insurance, saving more money. Would it be too risky to have a vehicle I'm still paying for without having full coverage insurance? I guess if I total the car and it was my fault, I'm stuck paying for a vehicle that is no more. Is it worth the cost savings?

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TanyaR1024

Asked by TanyaR1024 at 10:57 PM on Apr. 25, 2010 in Money & Work

Level 3 (26 Credits)
Answers (6)
  • If your financing a car you have to have full coverage. I really think it's stupid to not have full coverage if your a mom. If you don't, you will have to pay for all thing related to accidents (like medical care if your kid gets hurt). Also, refinancing will cost you more in the long run with interest. You want to save money? My advice is to pay off your car as soon as possible and not worry about it.
    SaraP1989

    Answer by SaraP1989 at 11:03 PM on Apr. 25, 2010

  • I never want to have a car and not full coverage. It is a ton in savings but if there is an accident and something happens then you're screwed. Sure, you saved a bit for a couple of months but not enough to pay off the vehicle and get a loan for another. I'm also big on having gap insurance, just in case.
    Pishyah

    Answer by Pishyah at 11:04 PM on Apr. 25, 2010

  • Like the other ladies, I would keep full coverage. We continue with full coverage even when we pay off a vehicle. The benefits outweigh the costs.
    FL2AK

    Answer by FL2AK at 12:28 AM on Apr. 26, 2010

  • My family vehicle will ALWAYS have full coverage, no matter what. We're very hard-up for money, but I refuse to lower my coverage. DH's work truck is the same - we have too much at stake to not have full coverage.
    Anonymous

    Answer by Anonymous at 12:34 AM on Apr. 26, 2010

  • Go see your local credit union about refinancing or getting a debt reduction loan. Credit Union is more likely to work with you to come up with a doable solution.
    motherofhope98

    Answer by motherofhope98 at 7:30 AM on Apr. 26, 2010

  • You don't have to keep full coverage if you are financing it through a personal loan. And medical care from an accident would still be covered (thats what a friend told me who works in car ins). And I know it would make the car cost more in the long run but my main goal is to cover the bills. I never kept full coverage on other vehicles that I owned outright.... Thanks for the advice! Keep it coming!
    TanyaR1024

    Answer by TanyaR1024 at 9:11 AM on Apr. 26, 2010

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