One of the key decisions in deciding what car to buy is assessing how much all the other costs are that come with ownership. The purchase price and/or the car payments are just the most obvious of costs.
There are two main ownership costs to consider: maintenance and insurance.
For new cars, maintenance costs are quite minimal, unless you have a lemon and have to waste all your time going to and from the dealer. For used cars, maintenance costs are a much bigger issue that can quickly eat into any savings you’ve made from not buying new. We can talk about maintenance costs in more detail in another post. For now, let’s talk about car insurance costs.
I received my semi-annual car insurance premium bill the other day, and I was pleasantly surprised to discover it only costs $285 every 6 months to cover Moose.
However, by not telling you the full details of what $285 gets, it’s hard to understand whether $285 really is good value. Let’s breakdown the line-items to better understand what car insurance options I get for my money.