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Mint Alternatives: The Best Alternatives to Mint.com

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Mint Alternatives help you track your finances in one place. Mint is one of the oldest and biggest online personal finance tracking apps. Founded in 2006, Mint made waves in the personal finance software world thanks to its powerful interface and ability to add transactions from thousands of financial institutions.

The company was acquired in 2009, and since then many users believe the site's functionality and support have gone downhill, sending them looking for Mint alternatives. If you want an alternative to Mint.com, here is a list of options. I have tried many of them myself so I could give you an in-depth, honest review.

About Mint.com

Mint is the original and most popular online account tracking software. For no charge, you are able to link all of your bank, credit, loan, and investment accounts into one interface. The site helps you automatically track your budgets, financial goals, and all of your transactions through one login and an intuitive interface.

The site was acquired by personal finance powerhouse Intuit in 2009, and the site has undergone many changes. While some new features like credit score reporting have been added, long-time features have slipped and the switch from an outsourced account data system to the in-house system built for Quicken have caused data errors and headaches for some users who are now in search of Mint alternatives. Mint.com is free.

Mint Alternatives Summary

Mint AlternativesFeatures/Best For
Personal CapitalBest Overall
Lunch MoneyMoney and tech-savvy
Power WalletBill Reminders and insights
QuickenTraditional desktop tracker
You Need a BudgetTracking every dollar
Yodlee Money CenterTracking everything
LearnvestFinancial advising

Best Mint Alternative: Personal Capital

This site is my go-to resource for tracking my investments across all of my investment accounts. I track my individual stock holdings, Roth IRA, Rollover IRA, special investment accounts, and employer 401(k) account through Personal Capital, and it has been useful and has saved me a bunch of money.

I used the investment analysis tools at Personal Capital to bring my portfolio in-line with my goals and save over $300 per year on mutual fund fees. If you have $25,000 or more in cash and investments, you will also qualify for a free consulting session with a Personal Capital advisor. Personal Capital is free, but if you choose to hire your advisor to manage your investments for you, there is a fee based on your portfolio size.

Detailed Comparison: Mint Alternative: Personal Capital »

Try Personal Capital for Free

Lunch Money

Lunch Money is a newer app from a solo developer. She has done an awesome job building a tool for those who are doing well with their money and want more insights and control. It isn't quite as robust as Mint, but everything I tried worked flawlessly with Lunch Money, which I can't say about the larger competitor. The site has an active roadmap with new features added regularly.

Lunch Money is focused primarily on tracking your budget categories. It works well for both the United States and international users in foreign currencies. It also supports tracking cryptocurrency accounts and wallets, something most competitors have yet to touch. I've been using it myself for a little bit, and have been very impressed. The biggest downside is that it isn't free. It costs $10 per month or $100 per year, but there are no advertisements and your information is never sold. Some may call that a small cost for better privacy.

Lunch Money »

Power Wallet

Power Wallet aggregates your finances in one view, and helps you track all of your financial account data in one central place. The site has a big focus on adding budgets by spending category and tracking your spending habits against your budget automatically.

Power Wallet also offers bill reminders to help you avoid missing bills and paying those pesky late charges. The insights from this site are geared toward helping you meet your own personal finance goals. Power Wallet is free.

PowerWallet »

Quicken

Made by Intuit, the owner of Mint, Quicken is the long-time leader in desktop based financial tracking. Quicken offers most of what you get for free at Mint.com, but featured in desktop software that you download and install on your computer.

Because the program is desktop based, the web and mobile access lack compared to Mint, but the software allows you to own and control all of your data on your own PC. More expensive versions of the program also include tracking for small business, rental real estate, and investments. Quicken is paid software.

Quicken »

YNAB

You Need a Budget, known by its loyal army of users as YNAB, is a desktop and mobile based budgeting software with a major difference from everything else on this list: it does not automatically link to your bank accounts.

YNAB founder Jesse Mecham believes that manually adding each transaction creates the best habits, and automatic tracking does not form any habits. When you make a purchase with cash or credit, you enter the purchase into your budget and get an update right away. This is proactive budgeting, not retroactive reacting.

YNAB is software that you purchase and download. Version 4.0 is currently available for $60, or you can sign up for the free trial.

YNAB »

Yodlee MoneyCenter

Yodlee was the original data aggregation provider for Mint.com, and while that site switched over to the Intuit engine, Yodlee is still a top provider of account aggregation for some of the sites in this list.

Yodlee MoneyCenter is their in-house personal finance tracking tool, and it is powerful and useful in its own right. The tools provided in MoneyCenter are focused on tracking account balances and transactions, reaching finance goals, and tracking your spending by category.

Yodlee MoneyCenter also allows you to track your airline miles, your net worth, and understand your investment asset allocation. Yodlee MoneyCenter is free.

Yodlee MoneyCenter »

LearnVest

LearnVest is the account tracking program created by actual personal finance advisors, so the tools are focused on how you interact with your money and the psychology behind personal finance management.

Rather than honing in on small budget categories, LearnVest breaks your money down into income, fixed expenses, goals, and flex spending money for you to do what you want. They have a major focus on getting debt free as well. The software is free, but a paid experience is available where you are assigned a personal financial advisor to give you extra help.

LearnVest »

Mint Alternatives Graveyard

Clarity Money

Clarity Money is a simple personal finance and budget tracker that was merged into Marcus by Goldman Sachs, a consumer bank, in March 2021 under the name Marcus Insights. This app doesn't offer the deep budgeting or investment tools of Mint and Personal Capital. Instead, it focuses on giving you your current account details in an easy-to-understand view with details on the most recent transactions.

In either case, if you want a simple snapshot of all of your money, Clarity Money delivers. But an account with Marcus by Goldman Sachs is required.

Clarity Money »

Adaptu

Adaptu was a site with a focus on connecting your personal finance tracking with community support. Adaptu was one of the first personal finance tracking tools to offer a mobile wallet app.

The site shut down in February, 2013.

Mint Alternative: Adaptu »

Adaptu Alternatives »

Thrive

Thrive was an early Mint alternative with a focus on budgeting based on your behavior. The tools looked at your average spending in each category, and told you how many times you could do things like go to a restaurant or bar without going into debt.

The site was owned by Lending Tree and shut down in June, 2011.

Mint Alternative: Thrive »

PageOnce

PageOnce was built to be a dashboard for all of your account balances, but didn't focus on transactions as much as the high level. It eventually re-branded as Check, a tool focused on bill payments. PageOnce was purchased by Intuit in May, 2014.

In December, 2014, the tools was added to Mint.com under the name Mint Bills, which is available for signup today.

Mint Alternative: PageOnce »

Mint Bills Review »

Manilla

Manilla provided account balances in one place, but its best feature was acting as your full service digital filing cabinet. The site automatically downloaded all statements for bank accounts, credit cards, and even utility and other bills.

Manilla shut down in July, 2014. See the link below for my favorite digital file cabinet replacement options.

Mint Alternative: Manilla »

Manilla Alternatives »

Wesabe

Wesabe was another of the original Mint alternatives. In fact, it was older than Mint.com. The site featured both personal finance tracking and a community feature. For those afraid to keep their finances on a server owned by sites like Mint, Wesabe had an online/desktop link that was used to update your transactions.

Wesabe shut down in July, 2010.

RIP Wesabe »

This post was originally published on January 12, 2015 and updated on March 30, 2021.

Never Underestimate the Power of Refinancing Your Mortgage

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This post comes to you in partnership with Refily. This post is by me (Eric) and features my own opinions.

There were several significant milestones where I felt like a real grown-up, and one of them was getting my first mortgage. But I felt like a financially savvy grown-up after refinancing that mortgage, and another one more recently. Those were both big financial wins that set me up to save tens of thousands of dollars over time.

I recently teamed up with Refily, a free-to-use platform that does the hard work for you of shopping around for a lender, allowing you to compare rates to help you pick the right provider for your needs. Here’s a look at how refinancing saved me money and how Refily can put you on track to finding a lender who could help you see if you could save by refinancing.

Secret Insights Into the Mortgage and Refi Process

My first home was a condo in Denver, which I refinanced and eventually sold for a significant profit. My second home was a single-family home in Portland, Oregon, where I only had the home a little more than a year but still managed to come out way ahead when selling.

I’m writing this article in a home office in the third home I’ve owned with a mortgage. When mortgage rates dropped at the start of the COVID-19 pandemic, I jumped to refinance to a lower rate. In total, including this house, I’ve had five mortgage loans.

But before I ever had my first mortgage, I sat on the other side of the desk at the bank. My responsibilities as a bank manager included reviewing and approving mortgage and refinance loans that came into my branch. Having been on both sides of the mortgage process, I know what to look for when refinancing and how to refinance for the maximum financial benefit.

My Latest Home Refinance Saved Me Thousands

I’ve never met anyone who refinanced their mortgage for the fun of it. Refinancing takes a bit of legwork, so you’ll only want to go through the process if it will lead to major financial savings. It’s always worth running the numbers if you’re considering a refinance.

I bought my current home with a 30-year fixed mortgage originated in May 2017. The loan came with a 4.25% interest rate, which was competitive for the time, particularly for someone who was newly self-employed as I was at the time.’

I refinanced just a few years later in March 2020, which you may recognize as the start of the COVID-19 pandemic. When the Federal Reserve lowered rates in response to the pending economic challenges, I jumped and refinanced with a new 25-year fixed loan with a 3.25% rate.

The refinance lowered my payoff period by a few years and lowered my payment by about $100 per month. But most importantly, I should save about $12,000 in just the first five years, thanks to a lower interest rate. If I keep the loan through the payoff date, I’ll save more than $50,000. That’s serious money! The amount you may be able to save depends on your original loan and new finance loan terms.

When You’re Most Likely to Save Money with a Refi

Most people would jump at a chance to save tens of thousands of dollars. If you have a mortgage and any of these apply, you may be able to save by refinancing:

  • Improved credit: If your credit has significantly improved since buying your home, it would be worth checking with a lender to see if you could qualify for a loan with better terms. Those with the best credit scores tend to qualify for the lowest interest rates.
  • Rates have fallen: When interest rates fall, as they did at the start of COVID-19, mortgage interest rates go down for the entire market. Those lower rates spurred me to refinance. If rates are down since you took out your mortgage, you may be able to save even if your credit score hasn’t changed.
  • Shorter payoff period: When you trim from a 30-year loan to a 15-year loan, your interest rate may go down, as shorter loans are considered a lower risk by the lender. Your monthly payment may go up, but your total interest cost should decrease when shortening your term with a lower rate.

It’s usually not a great long-term idea to refinance for a lower monthly payment. While it can take off financial stress in the short term, you’ll typically end up paying more interest over time. In addition to mortgage calculators, the best way to compare the cost of a mortgage is the annual percentage rate (APR), which gives an all-in, apples-to-apples cost comparison between two loans.

Situations Where You May Not Want to Refinance

Just because you can refinance doesn’t mean you should refinance. If you’re on the fence, focus on the numbers behind the loan. These situations should lead you to think twice before pulling the trigger:

  • Higher interest rate: The interest rate determines the cost per dollar borrowed. You should avoid a higher interest rate for a mortgage in nearly all circumstances. The only time to consider a higher rate seriously would be if refinancing to a lower monthly payment can help you avoid foreclosure and losing your home.
  • Longer mortgage term: Extending your mortgage term means more monthly payments. In most cases, that also means a higher interest rate and higher total costs.
  • High cost for points: You may be able to get a lower mortgage rate by paying “points” to your lender upfront. You should definitely do the math to verify that paying for points makes sense for you. Paying too much for points cuts into your savings from a lower interest rate.
  • You plan to move soon: If you’re going to stay in the home for less than five to seven years, you may not live in the home long enough to cover closing costs. Again, look at the dollars and cents behind your current and prospective loans to guide your decision.

Shopping Around For the Best Deal

When you type “best interest rates” into Google, you’ll get 1.2 billion results. Odds are you don’t have time to shop around at dozens of different banks and other lenders to find your best rate. But if you don’t shop around, you could wind up overpaying significantly.

That’s where Refily comes in. Refily is a home refinance lender comparison tool. It takes less than five minutes to enter your information (Social Security number not required), and Refily will show you a recommended lender and comparisons with other lenders.

The comparison includes interest rates, estimated monthly payments, lender fees, recommended credit scores, and other key details to help you choose the best provider for your needs and budget.

It All Comes Down to the Dollars and Cents

Mortgages and refinancing are some of the most significant financial decisions you’ll ever make. A slight difference in interest rates could help you retire early, pay for a dream vacation, or treat yourself to of benefits of having more money to spend the way you want instead of handing it over to a lender.

If you’ve done the math and the dollars and cents say it’s time to refinance, don’t hesitate to get connected with a lender now.

This post is sponsored by Refily. If you’re looking to refinance your mortgage or want to compare rates, Refily uses custom matching technology to help you compare lenders and make the right refinance decision. Refily provides transparent, tailored lender choices designed to fit each borrowers’ needs—all without giving an SSN. (NMLS# 167283)

Is Pay Per Mile Right for Me?

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If you had told me four years ago that my car insurance was about to go down by half, I might not have believed you. But that’s exactly what happened when I dropped my traditional car insurance and switched to Metromile.

Here’s a look at exactly how pay per mile insurance works, when it makes sense, and how it saves me money every single month compared to my old insurance policy.

How pay per mile is different from traditional auto insurance

With old-school car insurance, you pay a fixed amount every month to insure your car. While it’s important to have comprehensive coverage that meets your needs, with traditional insurance policies, you have to pay the same amount whether your car is sitting around at home or driving back and forth to work and running regular errands around town.

Pay per mile insurers realized that you probably will not get into a car accident when your car is sitting still, so you shouldn’t have to pay as much if your car is parked.

With pay per mile, you unbundle the cost of insuring your car while sitting around and insuring it while driving it around. This means people who drive less will save a lot. People who put a lot of miles on their cars might do better with traditional insurance. Your driving habits are the main factor in which type of insurance makes the most sense for your unique needs.

When pay per mile car insurance makes sense

With traditional insurance, you always know exactly what you’re going to pay for coverage each month, but you won’t save anything if you drive a lot less, as many of us are since the start of the COVID-19 pandemic. Even many people who drive to the office five days per week could save with pay per mile, but those who now work from home full-time or part-time may be more likely to find significant savings.

With pay per mile, you pay a much lower fixed rate every month and pay a few cents for every mile you drive. If you drive more, you pay more. If you drive less, you pay less. Anyone who drives less than 10,000 per year may be able to save money with pay-per-mile. During COVID and beyond, there’s a very good chance that includes you.

This kind of insurance isn’t right for everyone, but for many people, particularly those who work from home or have very short commutes, pay per mile could save you a small fortune compared to traditional insurance. College students, seniors, public transit riders, and anyone who drives less than 30 miles a day on average will save.

For me, switching to pay per mile insurance with Metromile led to huge savings. Honestly, my only regret is that I didn’t switch sooner!

How I saved half with pay per mile insurance

The welcome email I received from Metromile when I signed up on August 10, 2016.


As a personal finance writer, I’m a big fan of saving money – but who isn’t? One of my favorite parts of getting married was saving money every month on my car insurance. But even having tied the knot and proven that I was a low-risk driver, my wife and I still had to pay what felt like an arm and a leg to stay insured.

It was actually a bad customer service experience that led us to shop around and discover Metromile. While bundling and “saving” with our previous insurer, we paid $155 per month for our two cars and two drivers with perfect records for about a decade.

Our original Metromile quote from 2016 led to a rate of less than $1 per day per car

We both drove old, paid-off cars, and neither had (or have) a regular commute. That means we didn’t rack up a lot of per-mile charges regularly. However, if we do decide to take a road trip, there’s a limit to how many miles we pay for per day. If you go over 250 miles in a day (or 150 if you live in New Jersey), any additional miles are free.

For October 2016, our first full-month bill with Metromile, we paid just $87. That’s a fairly average bill for us. However, we have some months where we’ve paid less than $60. Assuming an average bill of $85 per month, which we generally paid our first year at Metromile, that’s a 45% savings, or nearly half!

The Metromile app has all of our billing details. We can see how many miles we drove and even maps of past trips. It also includes useful features like gas mileage tracking and information about any engine error lights from your car’s computer.

Our costs have crept up very slowly over time, and we got a new car, so now we pay around $100 per month to insure both cars. But our most expensive month ever with Metromile when we’ve taken long road trips have always been less than what we paid to our old insurer.

Over the four years we’ve been with Metromile, I estimate that we’ve saved about $3,000 so far, and that would be assuming our old car insurance company wouldn’t have raised their rates, and they almost certainly would have. Thanks to dumping our traditional car insurance, we can add more to our savings every month.

Are you living the pay per mile lifestyle?

You may already be living the pay per mile lifestyle and not even realize it! We saved money driving an average of around 700-800 miles per month between the two of us. That’s about 25 miles per day. But even if we had driven quite a bit more, we still would have saved.

Take a look at how much you really drive in a typical month. You may be able to save hundreds of dollars per year. Pay per mile can make it work. You decide what to do with the savings.

(This post was written by me and includes my own opinions, but was coordinated with Metromile.)

Tips for Improving Your Budget Management

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This post comes from a Personal Profitability partner.

Do you often find yourself wondering where your money went? Has it been proving to be such a struggle for you to truly save up and improve your financial situation? Have you been racking your brain trying to determine where the leak in your finances is and how to plug it? 

Budgeting finances can understandably be complex, but it doesn’t have to be. There are many different techniques and apps you can use to help improve your financial management know-how and skills. 

Here are a few simple tips that can get you one step closer to financial maturity. 

Make a Financial Audit

Before you jump into a brand new game plan, you should first try to have a clear understanding of your financial situation. What expenses do you have exactly, and are they recurring? It would help to make a list of all your expected bills and dues on a monthly basis, so you can have a base standard of how much you should have in your account at any given time. 

For credit or loans, make sure to account for the interest rate, and especially the due date. Missing payment deadlines do impact the amount due, so you should do your best not to miss out on any of them. If the option is available, it’s always better to enroll in autopay, which means money will automatically be debit from your linked account to pay your credit or loan through their preferred platform. 

Separate Your Savings

Anything that you will need to pay your monthly dues should be on its own account, and separate from your savings. You can either make the monthly deposit manually or enroll it as an auto-debit with your bank as well. 

The trick is to remove a set amount from your expenses account and your mind. Don’t even think that you have that money to spend–you don’t because it should be sitting nicely in your savings account instead. 

You may start small, but over time, you’d be surprised at how much your savings have already grown, for as long as you don’t keep dipping your hands into it. With an active, growing savings account, you can then look forward to the next step to financial freedom, which is investing. After all, you should only invest money that you can afford to lose. 

Identify Miscellaneous Expenses

It’s easy to overlook miscellaneous expenses as the leak because they don’t seem that much, to begin with. However, it turns out that these “small” expenses do eventually add up. Dining out, for example, can instantly bump up your expenses without you noticing it. The same goes for deliveries and online shopping.

Transportation through cabs and ride-sharing apps also do end up being very expensive, especially since the charges can fluctuate depending on a variety of factors, such as distance and traffic. 

Make a detailed note of all these types of expenses that you usually have. It should be easy to trace back based on your credit card transactions, anyway. Ultimately, the point is for you to see how much these add up to, and how much they actually impact your finances.

Use Technology

At this point, there’s no reason for you not to get the help you need from technology. Once you’re done doing your audit, and since you already have an idea where the financial leak is coming from, it’s time to rectify the situation by staying on top of things. Using budget management apps like Simplifi by Quicken can help you avoid overspending by keeping track of your finances in real-time. 

Budgeting apps only take a simple installation on your phone, so you can check the status of your finances wherever you are. You can even get budget management tips and ideas to further improve your financial literacy. Hopefully, you can finally achieve your savings goals.

This post comes from a Personal Profitability partner.

What is a PPP Loan?

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Many people have heard of the term “PPP loan” before, but they aren't entirely sure what it actually is or who can apply for one. Fortunately, some banks and financial institutions can help you determine whether you qualify and assist you will filing out your PPP loan application when the time comes. Before you begin, however, it's helpful to have more background knowledge on what PPP loans are, who they can help, and when you can apply for PPP loan forgiveness. 

Note: This post comes to you in conjunction with a Personal Profitability partner.

What is a PPP Loan? 

PPP loans, or Paycheck Protection Program loans, are money provided by the government to encourage to keep their employees on the payroll. Nobody wants to lay off employees or cut their pay, but when times are tough, many small businesses have to do just that. With a PPP loan, however, you are given funds to continue paying your employees, including their benefits, and they can also be used to help with rent, utilities, and property damage or theft. 

Is There Interest on PPP Loans?

Yes, there is a small 1% interest rate on PPP loans. Fortunately, if you follow strict criteria, you can get your loan payments forgiven, though this is never guaranteed. Either way, the small 1% interest rate helps prevent small businesses from getting in too deep, as interest accumulates much slower than it would from a private lender that may charge several times more interest. 

Who Qualifies for a PPP Loan?

It can be a bit tricky to determine who actually may qualify for a PPP loan but enlisting the help of a trusted banker or financial consultant can help you understand if it's an option for you. Generally, people who apply for PPP loans are those who own small businesses that adhere to the Small Business Association's size standards, sole proprietors, independent contractors, and those who are self-employed. 

Non-profit organizations may also be eligible for a PPP loan, depending upon their size and specific codes. 

Can I Apply More Than Once?

Yes, some small businesses may qualify for more than one PPP loan, depending upon their own unique set of circumstances, or they may qualify for an increase in the loan they originally received. Receiving another PPP loan is called a Second Draw PPP loan, though the terms are substantially more strict than First Draw PPP loans. 

When Can I Apply for Forgiveness?

Businesses or individuals can apply for loan forgiveness after they have used all of the money, and before the maturity date of the loan passes. In many cases, the loan maturity date is about 10 months after the last date of the covered period, so it's in your best interest to apply for forgiveness as soon as possible if you qualify. 

Nobody likes filling out paperwork, and accepting help from an institution can be hard for many business owners and independent contractors. At the same time, you don't have to face this alone, and getting help in these matters from an expert can make the whole process much easier. 

This post comes to you in conjunction with a Personal Profitability partner.

How High-Mileage Drivers Can Lower Their Insurance Rate

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Driving can cost a lot of money. Between car payments, maintenance, fuel costs, and insurance, driving expenses add up quickly. It pays to look for ways to save on your transportation costs however you can, especially if you happen to drive a lot — because even your insurance rates can see an impact if you happen to qualify as a high-mileage driver.

What Qualifies as High Mileage Driving?

First, let's take a quick look at why high-mileage driving could result in higher insurance rates.

Simply put, mileage influences car insurance premiums because more time spent on the road means a higher risk of accident or damage. After all, if your car spends most of the time in the garage, it's not very likely to be the source of an insurance claim. If you're making a long commute every day, your accident risks are objectively higher — thus the higher premiums.

So are you a high-mileage driver? According to statistics, the average American motorist drives around 13,000 miles per year. If you fall in the range of 10,000 to 15,000 miles yearly, your premiums are unlikely to see a hike. If you drive over 15,000 miles in a year, you may qualify as a high-mileage driver. Similarly, if you drive somewhere between 5,000 and 8,000 miles a year, you may qualify for a discount as a low-mileage driver.

How Much More Do High-mileage Drivers Pay?

How much more will you pay if it turns out you are a high-mileage driver? Let's look at some average statistics from The Zebra:

Average six-month premium, by mileage:
10,000 – 15,000 miles: $965
15,000 – 20,000 miles: $972
20,000 – 25,000 miles: $974
25,000 – 30,000 miles: $976

While this is a fairly marginal change in premiums, you should also be aware that premiums can vary by state. For example, in California, rate hikes for high-mileage drivers could go up to 30% (as compared to 1-3% for high-mileage drivers in other states).

How Can High-mileage Drivers Lower Their Insurance Car Rate?

  • Find a cheaper insurer. It always pays to shop around for a better deal, regardless of how many miles you drive in a year. Online tools have made it easier than ever to compare insurance rates between companies and hopefully find a better rate than you have now.
  • Maintain a clean driving record. A driving record free of accidents and traffic violations is one of the most dependable ways to keep your rates low (or at least them from getting any higher). Do your best to stay out of trouble when it comes to your driving.
  • Take advantage of discounts. There are almost always more discounts available to drivers than they might guess at first glance. Insurers commonly offer discounts and other perks for a variety of criteria: student discounts, good driver discounts, discounts for bundling your insurance policies or paying ahead. Get in touch with your insurance company and find out what's available to you.
  • Change your coverage. If your car is fully paid off and worth less than $4,000, consider dumping your collision and comprehensive coverage. Your liability insurance should be sufficient for your needs — the rest is unlikely to do you any good until you get a newer vehicle.
  • By a cheaper used vehicle. Older cars tend to attract lower rates as their value depreciates. Now might be a good time to trade down!
  • Take a defensive driving course. Some insurance companies will lower your insurance if you can prove you completed a defensive driving course, which will reduce your risk of accident on the road regardless of how much you drive. Contact your insurer and see if this is a program they offer (or shop around for an insurance provider who does).
  • Try to drive less and lower your mileage. While this one might seem like a no-brainer, it might be worth looking into how you could drive less often. If public transportation or biking is an option, consider giving that a try — or see about working from home more often.

Should I Install a Telematics System?

One of the major ways car insurance companies are now offering their customers lower rates: telematics. A driving tracker installed in your car will collect usage data telling the insurer how much you drive, what time of days you drive most, and what your driving behavior is like (such as force of braking, speeding, etc.)

If the data collected shows you drive safely, you can use that data to negotiate a lower rate — and many insurers will give you a discount simply for letting them collect that data in the first place. For some, this might be a privacy concern — but if you are looking for another way to save money, this might be just the thing.

How Your Insurance Rates Are Calculated

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Recently I was on the hunt for car insurance. Many people do not understand the factors that impact their insurance rates, and my research brought out some important things to know in the unknown world of insurance premiums.

Health Insurance Rates

Health insurance is a beast of an industry. While I am a big proponent of public healthcare, that is not the world we live in (if you are in the United States). Health insurance rates can be calculated using one of two methods.

If you work for a big company, your employer will negotiate a blanket rate for everyone at the company. This is based on factors such as the average age of employees, fitness levels, and so on. Your employer will generally pay a portion of your premium every month and you pay the rest. Every company is different, and you have little, if any, control over how this is handled.

If you need to find your own health insurance, a formula is used to determine your individual plan rates. The major inputs are your age, weight, family health history, your health history and pre-existing conditions, tobacco and alcohol use, past surgeries, and other major risk factors for health care costs.

Auto Insurance Rates

The auto insurance industry has done extensive research to find correlations between people and driving safety. It turns out that the statistics are pretty solid, and the industry prices insurance based on your risk factors.

The major factors for auto coverage are your age, gender, driving history, marital status, credit score, home zip code, and your car’s make, model, and color. If you are a seventeen year old boy that has had several accidents, lives in a dangerous neighborhood, and drives a cherry red Mustang convertible, your rates are going to be higher than a fifty year old married woman driving a 1980s station wagon. It makes sense.

The down side is that you could be a really safe seventeen year old boy and still get hit with high rates because other seventeen year old boys get into lots of accidents.

Renter Insurance Rates

I have renter’s insurance. I highly recommend all renters get a policy to cover your belongings. Landlords have insurance to cover the property, but your stuff is not covered by that policy. If there is a floor or fire and your possessions are destroyed, a renter’s policy pays to replace your stuff.

Renter’s policies are rated based on the location of the property, construction and building style, size of the property, type of property (apartment or single family home), and certain policy exceptions. Discuss this in detail with your insurance agent to make sure your coverage meets your needs.

Homeowner Insurance Rates

Homeowner’s policies cover the building and the contents of the building. The factors are very similar to renter’s policies, but the premiums are higher because you are covering the building and the contents.

Generally homeowner policies are bundled into mortgage payments so you just make one payment per month for your house. Property taxes are often included as well.

If you live in a neighborhood with high crime rates, your insurance is going to be higher than a safe suburb. If you live in a wood frame house, your policy will cost more than a brick or steel constructed building. These risk factors take into account the likelihood of a loss or claim.

Complex, But You Have to Understand It

The insurance world is complex. While your agent might seem like your friend today, the idea of an insurance company is to make a profit. To make a profit, they try to maximize what you pay in and minimize what they pay out.

Make sure you find a trustworthy, highly rated, well regarded insurance company. All insurers are not alike. Some people have horror stories where companies would not pay out for a claim. Others have stories about helpful agents walking them through the entire process. Read a lot about the company when you are making a selection.

This post was originally published on April 27, 2011 and updated on March 23, 2021.

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