If you want to own a car outright — and to enjoy some time without a dreaded car payment — buying a car is the obvious choice. If you don’t care about car ownership, leasing a car is more prevalent than some drivers realize. 

According to Experian’s Q4 2022 State of the Auto Finance Market study, 26.45% of all new vehicles were leased last year, with Hondas and Toyotas being the most popular car makers.

While leasing is still a popular option, the percentage has dropped significantly – over 17% since its high during the pandemic. Leasing a car can also mean a more affordable monthly payment, depending on your scenario.

Before deciding whether to purchase or lease a car, think about your finances and your lifestyle. This guide can help you decide what to consider before buying or leasing a car, along with the pros and cons of either option.

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How Does Buying a Car Work?

You can purchase a car outright if you have the cash, yet most consumers use auto loan financing to facilitate their purchase.

In fact, the same Experian report found that 81.12% of new vehicles were purchased with a car loan last year, and 34.59% of used vehicles were purchased through financing. 

Car Financing Today

The prevalence of financing has to do with the high cost of cars and trucks, and especially new vehicles.

Experian revealed that consumers purchasing a new car financed an average of $41,445  in 2022, compared to $35,228 in 2021. That brings the average new car payment to $716 in Q4 of last year — a new record high. 

The fact consumers are borrowing higher amounts also leads to new car loans with significantly longer terms.

In fact, 42.13% of new car loans were for 61 to 72 months in Q4 of 2022, and 30.21% opted for loans that lasted 73 to 84 months. A very small percentage (1.41%) even opted for auto loan terms longer than that. 

Whatever payment route you decide on, there are several ways to purchase a car. You can buy your new ride from an auto dealership, but can also opt for a private sale or an auction purchase.

If you don’t have the cash to pay for your car outright, you can see if you qualify for in-house dealer financing or look for a third-party auto loan.

You can use marketplaces to compare auto loan rates for new and used cars. For example, a few marketplaces we recommend are Auto Approve, AUTOPAY, myAutoloan, or RateGenius. These sites can help you find the lowest auto loan rate you qualify for.

How to Find the Best Car Purchase Deals

Thanks to technology, finding the best car purchase deal is easier than ever. Consider these tips as you look for a new or used car to buy:

Decide on the Type of Vehicle That Fits Your Lifestyle

Consider the type of vehicle you want the most. If you have a family in tow, you might consider a minivan or an SUV for the extra space.

If you want fuel economy, consider a smaller, fuel-efficient car or even an electric model. According to Experian, more than 55% of new vehicles purchased in the last quarter of 2022 were SUVs. 

Determine How Much You Can Afford

Make sure the cars you’re considering come with a monthly payment that fits in your budget. An auto loan calculator can help you determine the monthly payment for cars in your price range. 

Look for New and Used Cars in Your Area Using Autotrader

Once you decide on the type of vehicle you plan to purchase, search for options using Autotrader. This website lets you compare pricing, and features and upgrades among new and used cars.

Gauge New or Used Car Pricing Using Kelley Blue Book

Once you’re serious about a specific car make and model, it’s helpful to know its fair market value. Kelley Blue Book lets you enter a car model and its features and tells you the average value you should expect to pay with a dealership or through a private sale. 

Research Auto Insurance Requirements

See how much car insurance costs for the vehicle. You can visit any online national insurer, like Progressive, to get a quote.

Line Up Your Own Auto Financing (If Required)

Finally, keep in mind that you don’t have to use dealership financing to buy a car. You can get a quote for an auto loan online and then head to the dealership to negotiate for the best possible deal. 

How Does Leasing a Car Work?

When leasing a car, you’re borrowing it for a specific term. You won’t build any equity in the vehicle at all, but you’re generally off the hook for repairs during your lease term since the car is most likely under warranty. 

Although leasing comes with downsides, it’s still a popular option for people who want to drive a new car most of the time. Leasing lets you get into a new car, drive it for a few years, and then upgrade to a new lease and start the process all over again.

You’ll never have to worry about selling a car so you can move on to a newer one, nor worry about having negative equity in your trade-in.

According to Experian, the average lease term worked out to a little over 36 months (36.46 months) in Q4 of 2022. Meanwhile, the average monthly payment for leases was $460 per month. 

How to Find the Best Car Lease Deals

If you’ve decided to lease a vehicle instead of buying one, you’ll want to start your search at major car dealerships that offer new vehicles. Here are some tips that can help you find the best lease deal.

• Decide on the Type of Vehicle You Want to Lease: Compare car options you might be interested in leasing. Do you want to lease a luxury car you can’t necessarily afford to purchase outright? Do you need a reliable car to get to work?

• Search for Lease Deals Online: Once you know the type of car you want to lease, check the websites of local dealerships in your area. Most will have lease deals prominently displayed on their websites so you can search and compare with ease.

• Look for the Lowest Possible Monthly Payment: Since leasing means you never own the vehicle, your main goal should be finding the lowest monthly payment you can. Also, make sure the lease timeline is ideal for your needs, whether you want to lease for a year, 24 months, or longer.

• Consider the Down Payment: Check down payment requirements for leases, keeping in mind that luxury leases often require a down payment of several thousand dollars upfront. This down payment might lower the monthly payment on your lease, but you won’t really “get” anything for it in return.

Pros and Cons of Buying a Car

Buying a car can be a better option if you plan on keeping a car for multiple years. That’s because driving for several years lets you build equity in a vehicle, which you can use for trade-in value down the line. 

If you keep your car long enough, you could even own it outright and enjoy not having a car payment for as long as you can. Meanwhile, owning a car also means you can drive your car as many miles as you want and deck it out with the latest accessories.

Just remember that owning a car means you’re responsible for maintenance and repairs, at least, once your warranty period expires. 

Who Should Buy a Car?

• Consumers with excellent credit who can get the best auto loan rates

• People who plan to drive a vehicle for at least three to four years

• Drivers who want total control of their vehicle, including mileage

• People who want to build equity with each monthly payment they make

Pros and Cons of Leasing a Car

Leasing a car can be a better choice if you love regularly driving a new car. It might be an option for those who want to avoid having negative equity in a car or going through the hassle of selling an older vehicle.

Since leasing typically requires a lower monthly payment, you might be able to afford a lease for a car with more equipment or upgrades than you could with a new car purchase. Just remember that leasing means you never really own the car, and you’ll always have a car payment.

Leasing also comes with mileage limits that can be cumbersome depending on how much you drive, and you won’t be able to accessorize your car in any permanent way.

Who Should Lease a Car?

• People who enjoy driving a new car every few years

• Drivers who want the lowest monthly payment for the best car they can afford

• People who don’t care about building equity in a car

• Anyone who wants a car that’s always covered under warranty

Questions to Ask When Deciding Between Buying vs. Leasing a Car

If your primary objective is saving money over the long-term, then buy a car and drive it into the ground! Conversely, you can also drive a new or used car until the repair costs signal that it’s time to upgrade. 

If you prefer driving a new car all of the time, leasing is easily the better choice. This is especially true if you’re not bothered by having a car payment indefinitely.

Before buying or leasing a car, ask yourself the following questions:

• How long do I want to keep my next vehicle?

• Do I want a lower monthly payment or the chance to build equity?

• What’s my budget?

• How much do I drive, and can I live with mileage limits on a lease?

• How is my credit score? What’s the best auto loan rate I can get?

• How will buying or leasing affect my auto insurance rates?

The Bottom Line – Buy or Lease a Car

When it comes to making a decision about whether to buy or lease a car, there is no one-size-fits-all answer. Both options come with advantages and disadvantages that need to be weighed before choosing the best one for your individual situation.

Ultimately, you’ll want to consider factors such as budget size, how much use you plan on getting out of the car, your driving habits, and credit score.

By taking the time to evaluate all aspects of the decision-making process carefully, you’ll be better prepared to make an informed choice that fits your own unique needs.

The post Is It Better to Lease or Buy a Car? appeared first on Good Financial Cents®.

That said, the best car insurance for young drivers offers quality protection for the entire household without breaking the bank. If you’re looking for the best cheap car insurance for young adults, however, you’ll need to compare policies and plans while also checking for discounts you might qualify for.

In the meantime, you’ll want to see which types of auto insurance you really need and which ones you can go without.

We compared more than 20 of the best auto insurance companies to help you find the best car insurance for young drivers in 2024. If you’re ready to buy a policy or begin comparing all your options, you can stop looking and start your search here.

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Our Picks for Best Car Insurance for Younger Drivers

• Nationwide: Best for Teen Drivers

• American Family: Best for Usage-Based Discounts

• Allstate: Best for Good Students

• State Farm: Best for Safe Vehicle Discounts

• Geico: Best Discounts Overall

• USAA: Best for Military

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The reviews below can help you learn more about the best car insurance companies that made our ranking, including the policy options and special programs for young drivers they offer.

Nationwide offers an array of coverage options for teenagers and young drivers, as well as discounts that can make coverage considerably more affordable. Young drivers can purchase insurance with liability-only coverage, but they can also opt for collision coverage, comprehensive coverage, and even rental car reimbursement coverage that kicks in when a car is in the shop getting repairs after an accident occurs.

Accident forgiveness is another optional feature for young drivers. This add-on coverage ensures that a teen or young driver’s car insurance premiums won’t surge right away after their first at-fault automobile accident occurs.

Major discounts available from Nationwide for teens and young drivers include:

• Good Student Discount: If you’re a full-time student and a Nationwide customer, you can get a discount on your premiums if you maintain a grade point average of ‘B’ or better.

• Employer-Sponsored Plan Discount: If you work for an employer who participates in a Nationwide discount plan, you can get a break there.

• Multi-Policy Discount: You can also get a discount by bundling your auto insurance with other policies, such as renter’s insurance.

• SmartRide Discount: Nationwide also offers a discount if you meet safe driver criteria as determined by the use of a plug-in device. It’s a usage-based insurance program that enables you to earn a discount for safe driving.

American Family Insurance is another highly-rated insurance company that extends coverage to young drivers and teenagers who are being added to a family plan. This company offers all the basic insurance coverage you would expect, from liability coverage to collision, comprehensive coverage, uninsured and underinsured motorist coverage, and rental car reimbursement. They also offer optional emergency roadside coverage, which can be accessed with ease using the MyAmFam mobile app.

This company also offers a Safe Driver Discount Program for Teens, which monitors your teen’s driving habits with the help of a mobile app. Once a teenager drives at least 3,000 miles with the app on, families can qualify for a 10% discount on their car insurance premiums.

Other notable discounts for young drivers include:

• Away at School Discount: This discount can apply when a young driver is away at college or university and their vehicle remains parked at home.

• Good Student Discount: Students with good grades can pay less for auto insurance premiums overall.

• Multi-Product Discount: Pay less for car insurance premiums when you bundle multiple policies with American Family.

• Young Volunteer Discount: This discount can apply when a driver under the age of 25 completes 40 hours of volunteer work per year for a non-profit.

Allstate is another insurer that is known for its Accident Forgiveness program. While joining this program doesn’t help you lower your premium at first, you won’t see your monthly auto insurance costs surge after your first accident. In the meantime, Allstate also has a Safe Driving Bonus program. If you add this feature to your policy, you get a check in the mail every six months if you don’t have an accident. This is Allstate’s way of incentivizing safe driving habits.

Also, note that Allstate extends good student discounts for drivers who are under the age of 25. This means high school students and teenagers with good grades can help their parents secure lower car insurance rates, but it also means young adults in college can get a discount on their own policies.

Allstate’s best car insurance discounts for young drivers include the following:

• Allstate Drivewise Discount: Young drivers who install a device on their vehicle and let Allstate monitor their driving habits can pay less for auto insurance overall.

• Multi-Policy Discount: A multi-policy discount can apply when young drivers purchase multiple policies from Allstate, such as car insurance bundled with a renter’s insurance policy.

• Responsible Payer Discount: If you pay your premiums on time for an entire year, you can get a responsible payer discount the next year you purchase coverage.

• Smart Student Discount: This discount applies to drivers under the age of 25 who meet one of three options, including getting good grades or completing a teen driver education program.

State Farm offers a program for young drivers under the age of 25, which is called Steer Clear. This program requires drivers to use a mobile app that monitors their driving, and it is only available to young drivers who don’t have any at-fault accidents or moving violations within the last three years. Those who qualify for this program can save up to 20% off their auto insurance premiums when they avoid accidents and drive safely over the long run.

Not only does State Farm make it easy to add a young driver to a household car insurance policy, but they also offer affordable premiums for young drivers who are out on their own. Additionally, this company offers an array of discounts that relate to vehicle safety instead of the age of the driver, including passive restraint discounts and discounts for having an eligible anti-theft device installed on a vehicle.

Other discounts for young drivers offered by State Farm include:

• Drive Safe & Save Discount: This program uses information from your smartphone or your vehicle’s OnStar or SYNC communication service to calculate your discount.

• Defensive Driving Course Discount: Young drivers who complete a defensive driving course can receive 10% to 15% off their annual car insurance premiums.

• Student Away at School Discount: If you are a student under the age of 25 and you are living away from home while enrolled in school, you might qualify for this discount.

• Good Student Discount: This discount can cut your auto insurance premiums by as much as 25%, but you do have to post good grades to qualify.

Geico is one of the most price-competitive auto insurers on the market, and it offers quite a few discounts and programs for young drivers. For starters, this provider offers a family pricing program that lets young drivers get the same policy rates as experienced drivers within the same family. This means young drivers get the chance to establish a good driving record without paying high premiums that are typical for new drivers.

Geico also offers an Accident Forgiveness Program for drivers of all ages. This discount applies to only one member of the family on a single policy, but it helps prevent surging premiums in the event of an at-fault accident.

Other popular discounts from GEICO include the following:

• Good Driver Program: Young drivers can save up to 22% off car insurance premiums with the Five-Year Accident-Free Good Driver Discount.

• Government Employee Discount: This discount is valid with participating employers, yet it’s also available to federal employees. It can reduce your premium by up to 12%.

• Military Discount: Save up to 15% off your premiums if you’re a member of the military.

• Good Student Discount: This discount is available to drivers between the ages of 16 and 24 who are full-time students with a “B” average or better.

If you’re a member of the military or an eligible family member, you may also qualify for auto insurance through USAA. This company is one of the highest-rated insurance companies across the board, and they offer an array of programs and discounts for young drivers and teenage drivers alike.

As an example, USAA offers a program called SafePilot that can help anyone save up to 30% off their car insurance premiums if they complete a safe driving program and live in an eligible state. Families who have a teen on their policy can also help their kids save when they leave the next. In fact, adult children of USAA car insurance customers qualify for a 10% family discount.

Other USAA discounts for young drivers are listed below:

• Driver Training Discount: It’s possible to save on car insurance premiums if you are under the age of 21 and willing to complete a driver training or defensive driving course.

• Safe Driving Discount: You can reduce your premiums by maintaining a good driving record for at least five years.

• Good Student Discount: Young drivers get a discount with good grades at school, and students from ages 16 to 25 may be eligible.

• Family Discount: Pay less for auto insurance when you add a teenager or young adult to an existing family policy.

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Car Insurance Guide

Before you settle on a new car insurance policy, you should understand the ins and outs of auto insurance for young drivers. For example, you’ll want to research the different types of car insurance, as well as the average cost of car insurance based on the policy you buy, where you live, and other factors.

How Does Car Insurance for Younger Drivers Work?

Car insurance for young drivers works the same as coverage for anyone else, yet this kind of insurance protection tends to be more expensive overall. The fact is, young drivers have considerably less experience on the road, and they consistently have accidents at a much higher rate as a result. According to the CDC on average 18 teens die every day in fatal car crashes. The Insurance Institute for Highway Safety reports that teens aged 16-19 are 3x more likely to get in a crash compared to those 20 years or older.

To account for this increased level of risk, car insurance companies charge higher premiums for the same types of coverage.

Generally speaking, however, car insurance rates tend to go down once individuals turn at least 25 with a safe driving record. Getting married can also help lower car insurance premiums considerably, as can becoming a homeowner, having a good credit score, and achieving other important life milestones.

As we noted already, the average premium for young drivers varies depending on where you live, whether you remain on a parent’s policy and other factors. However, a recent report from The Zebra shows that some age groups tend to pay much higher premiums overall, including some specific age groups below 25.

According to 2023 figures released in the study, drivers in the “teen” age group pay the most, with a typical 16-year-old driver paying an average of $6,034 per year for their own car insurance policy. Meanwhile, the average annual cost for all teenagers works out to $4,796 annually.

From there, each age group gets a better deal on auto insurance premiums until drivers reach their 60s and prices begin to tick up. The chart below shows the average car insurance premium by age group in 2023:

How to Lower Car Insurance Costs

Whether you decide to lease or buy a car or you’re currently driving an old beater while you wait for the best time to buy a new car, there are plenty of steps you can take to score more affordable car insurance premiums. Some of the best strategies you can use to save money are detailed below:

• Avoid accidents and moving violations. Getting into an accident or getting a ticket (or several) can cause your car insurance rates to surge higher than they already are. To get the cheapest car insurance possible, you’ll need to maintain a safe driving record for the long haul.

• Be willing to take driving courses. You may be able to save money on car insurance if you complete a teen driver education course or a defensive driving course. Make sure to check with your car insurance company to see which of these options can help you score a discount.

• Check for all possible discounts. You may qualify for car insurance discounts you don’t even know about, but you’ll never know unless you check. See whether your insurance company offers vehicle safety discounts, bundled policy discounts, loyalty discounts, or other discounts that can help you save money.

• Get good grades. If you’re a college student and you can maintain a good grade point average, chances are good you can score a discount on your car insurance premiums. For the most part, good grade discounts go to those who can maintain a GPA of 3.0 or better (or equivalent).

• Stay on your parent’s car insurance plan as much as possible. Generally speaking, car insurance rates for young adults are lower when they’re added to an existing policy. With that in mind, it can help to put off buying your own car insurance policy for as long as you can.

These are just some of the auto insurance discounts for students, but there might be others depending on the company you choose for coverage. When you shop around for your auto insurance policy, make sure to ask which discounts you might be eligible for.

How We Found the Best Car Insurance for Younger Drivers

To find the best car insurance companies on the market today, we looked for providers who have an ‘A’ rating or better for financial strength from A.M. Best.

We also looked for companies that offer highly-rated mobile apps, as well as those that advertise special programs and discounts for teen drivers.

Finally, we only considered car insurance companies that have an ‘A’ rating or better with the Better Business Bureau (BBB).

Summary of the Best Car Insurance for Younger Drivers November 2024

• Nationwide: Best for Teen Drivers

• American Family: Best for Usage-Based Discounts

• Allstate: Best for Good Students

• State Farm: Best for Safe Vehicle Discounts

• Geico: Best Discounts Overall

• USAA: Best for Military

The post Best Car Insurance for Young Drivers in 2024 appeared first on Good Financial Cents®.

Not only do they have smart and streamlined processes in place to make the entire process hassle-free, but they offer plenty of loan options, competitive interest rates, and flexible closings.

If you’re in the market for a mortgage refinance, it helps to know which lenders offer the lowest mortgage rates and the best shopping experience.

We compared all the major mortgage refinance lenders available today to find options with low rates and fair terms. Keep reading to see how they stack up.

Company Reviews for Best Mortgage Refinance

The mortgage refinance process requires some upfront legwork, but the effort can be worth it if you wind up with a better loan. The companies we chose for our ranking of mortgage lenders can help you save money, pay off your loan faster, or both. 

Read over the basic information for each home loan company to find the best option for your needs.

Quicken Loans

Also referred to as Rocket Mortgage, Quicken Loans is known for its seamless online mortgage refinancing process and how easy it is to get started.

Through Quicken’s dynamic online platform, a borrower can upload all the required paperwork, oversee their process, and finish the bulk of the refinance process online.

The company also boasts excellent reviews from past users, and it earned the second spot in J.D. Power’s U.S. Primary Mortgage Origination Satisfaction Study.

Quicken Loans offers origination loans, traditional refinancing, cash-out refinancing, and more through its online portal. Customers can also lean on this lender for help with conventional home loans, VA home loans, FHA loans, USDA loans, and more.

Better

Better promises mortgage refinancing with no lender fees or commissions, and it has streamlined the entire process with modern-day technology. Better applicants get instant mortgage rates after answering just a few questions, and the process is visible and transparent all along the way. 

Although the company has only been in operation since 2016, Better has already funded over $1.7 billion in loans. Applying for a mortgage refinance can be done entirely online, and you’ll get a quote immediately without having to speak with a mortgage officer.

AmeriSave

AmeriSave is an online mortgage lender that offers new home loans as well as mortgage refinance products. This company lets you qualify for lower rates than many brick-and-mortar banks, and you can even wrap your loan closing costs into your new loan if you agree to a slightly higher APR.

AmeriSave also lets you get a free quote for your new loan online. From there, you can complete the entire loan application process using their website and online portal to upload documents.

When it comes to closing on your new loan, they’ll complete the closing anywhere you want — even in your home.

loanDepot

If you’re wondering how to get a mortgage and hoping to complete the bulk of the process from the comfort of your own home, look no further than loanDepot.

This online lender promises refinance products with lower interest rates and/or lower monthly payments than you have now, and with a seamless application process, you can complete entirely online.

After you refinance with loanDepot once, they’ll also waive all the lender fees the next time you use them to refinance a mortgage.

While newer in the industry than some of the other refinance companies out there, loanDepot has funded more than $100 billion in loans since 2010. It’s also important to note that loanDepot scored higher than average in J.D. Power’s U.S. Primary Mortgage Origination Satisfaction Study.

Bank of America

Bank of America promises consumers who want to refinance a “digital mortgage experience” that makes the process more convenient. You can apply for a refinance online, over the phone, or in person, and you can choose from a wide range of mortgage products to suit your needs.

Online preapproval is also offered, and Bank of America offers competitive interest rates and low down payment options.

Bank of America Preferred Rewards clients can also qualify for a $200 to $600 reduction in their loan origination fee. This makes Bank of America an especially lucrative option for consumers who already have a working relationship with them.

Veterans United Home Loans

Veterans United Home Loans is a premier mortgage company for veterans and active-duty military who meet “the basic service requirements set by the Department of Veterans Affairs (VA), have a valid Certificate of Eligibility (COE), and satisfy the lender’s credit and income requirements.”

This means you must have a qualifying military affiliation to refinance your mortgage with this lender.

Veterans United can help connect you with the best VA home loans today — often with lower closing costs and the most competitive rates out there today. Veterans United has also received excellent reviews with an average star rating of 4.9 out of 5 stars across more than 10,000 reviews on Trustpilot. 

Chase

While Chase Bank is popular for its banking products and rewards credit cards, it also offers home loans and mortgage refinancing.

Their mortgage refinancing product lets you replace your home loan with a new one that offers better rates and terms, and you can likely complete the bulk of the mortgage refinance process online. 

Chase promises some of the lowest rates available, and you can even begin the mortgage refinancing process online. The bank also offers a closing costs guarantee that promises you’ll close on time in as little as three weeks, or you’ll get a check for $5,000.

Loans offered: Traditional home loans, adjustable-rate mortgages, jumbo loans, VA loans, FHA loans, USDA loans.

LowerMyBills.com

LowerMyBills.com is not a mortgage lender, but it is a marketplace that lets you compare multiple home loans in one place.

This platform lets you enter basic information about your current mortgage, your monthly payment, and your credit score range to get an idea of the new loan term you could qualify for.

If you decide to move forward and apply, you can enter your information once and get quotes from multiple lenders on the same day. LowerMyBills.com also offers a nifty mortgage refinance tool that lets you see how much you could save with a new home loan.

Mortgage Refinance Guide

If you’re wondering what to do before refinancing, when to refinance, or how to begin the process, you’re in the right place. Read on to learn more about what goes into refinancing your mortgage, why refinance rates are higher than purchase rates, and the paperwork and forms you’ll need to get started.

Benefits of Refinancing a Mortgage

The benefits of a mortgage refinance depend on the homeowner and their specific situation. For example, many consumers refinance in order to decrease the length of their loan term or lower their monthly mortgage payments.

Due to the fact that you get the chance to change up your loan term, refinancing is also one of the best ways to pay off a mortgage early.

If interest rates are considerably lower than they were years ago, refinancing to secure a lower interest rate can also help consumers save money on interest over the life of their loan.

Another benefit of refinancing right now could come into play if the value of your home has increased but you’re still paying private mortgage insurance (PMI) on your original home loan.

By comparing mortgage options, applying for a refinance, and seeking out an appraisal, homeowners with considerable home equity can get the PMI removed from their mortgage.

Cost to Refinance

According to ClosingCorp, the average cost of refinancing worked out to $6,837 nationally including taxes and $3,836 excluding taxes in 2021. Further, closing costs as a percentage of purchase prices declined in 2021 to 1.03% when compared to the 1.06% average in 2020.

That said, your personal closing costs will depend on a broad range of factors including your current income, your debt-to-income ratio, your credit history and credit score, the type of loan you choose, the loan amount, and your loan term.

Potential costs to watch out for and compare include closing costs, loan origination fees, points, and more.

Best Time to Refinance 

Generally speaking, there are a handful of times it makes sense to trade your current home loan for a new one. Should you refinance your mortgage, one of the scenarios below will likely come into play:

• Securing a lower monthly mortgage payment

• Getting a lower interest rate

• Reducing the loan term on your mortgage

• Switching loan products from a 15 vs. 30-year mortgage

• Refinancing to remove PMI

• Switching from a variable rate to a fixed rate (or vice versa)

Any of these situations can create a prime opportunity for mortgage refinancing, but you should still run the numbers to make sure you’ll still end up ahead.

A mortgage calculator can help you compare your future monthly payment to your current one, as well as see how much you could save on interest based on current mortgage rates.

Requesting for Refinancing a Mortgage

After you compare loan offers and decide on a mortgage lender, you’ll need to gather some documentation to begin the refinancing process. Documents you’ll need to have ready can include:

• Proof of income, including W2s or pay stubs

• Homeowners insurance information

• Documents relating to other debts you have

• Statement of assets

• Tax returns

According to Quicken Loans, you may also need to present other documentation based on your situation.

For example, you may need to prepare letters of explanation for past credit issues or employment gaps, documentation that shows child support or alimony payments, or documentation related to bankruptcy on your credit history.

While knowing what you need and gathering this documentation may feel overwhelming, remember that the best mortgage lenders can help walk you through the process. The majority also lets you upload required documentation online and from the comfort of your own home.

Different Kinds of Refinancing Products

When it comes to refinancing your home mortgage, you get to choose from nearly any type of mortgage out there. Generally speaking, your options can include the following:

Adjustable-Rate Mortgage

• Adjustable-Rate Mortgage: An adjustable-rate mortgage comes with a fixed rate for a fixed timeline followed by a variable interest rate for the duration of the loan. With a 7/1 ARM, for example, consumers pay a low fixed rate for seven years followed by a variable rate that changes based on market conditions.

Cash-Out Refinance

• Cash-Out Refinance: While you can refinance your mortgage to secure a lower monthly payment, a lower interest rate, or both, you may also be able to take cash out based on how much equity you have.

FHA Loan

• FHA Loan: FHA loans come with low closing costs, down payment requirements as low as 3.5%, and easy credit requirements.

Fixed-Rate Mortgage

• Fixed-Rate Mortgage: Fixed-rate mortgages come with competitive fixed rates, fixed monthly mortgage payments, and a fixed repayment timeline.

Jumbo Loan

• Jumbo Loan: Jumbo loans are mortgages for homes that cost more than $647,200, and they have stricter qualification requirements as a result.

USDA Home Loan

• USDA Home Loan: USDA loans are zero down payment mortgages that are aimed at buyers in rural areas of the United States.

How We Found the Best Mortgage Refinance Companies

To find the best mortgage lenders of 2024, we looked for mortgage companies that offer transparency when it comes to their mortgage rates, their loan processes, and their loan options.

We compared mortgage lenders based on their ratings from third-party agencies like the Better Business Bureau (BBB) and J.D. Power, and we sought out companies that let consumers complete their refinance process online or over the phone with the help of a mortgage broker. 

Ultimately, we chose the top home mortgage companies that offer mostly positive reviews, a broad range of mortgage options, competitive mortgage rates, and plenty of educational content for their customers.

We also gave preference to lenders who let consumers get a rate quote online without a hard inquiry on their credit report.

Bottomline – Best Mortgage Finance Companies

In 2024, for those on the hunt to refinance their mortgage, the landscape is rife with promising options. With companies like Quicken Loans leading in customer service and Better offering competitive rates, homeowners have a robust selection. 

Whether you prioritize online processes, loan comparisons, or specific discounts, there’s a lender tailored to meet those needs. Before diving into the decision, it’s worth exploring these top contenders to ensure a smooth refinancing experience.

The post Best Mortgage Refinance Companies of 2024 appeared first on Good Financial Cents®.

Fortunately, there are standard steps to take if you want to keep your credit score in good shape. For example, paying all your bills on time and keeping your credit utilization in check can go a long way toward helping you build the credit you’ll need later in life. In the meantime, you’ll also want to check your credit reports for incorrect reporting and false information, all of which can negatively impact your score without you even knowing.

Just remember that having negative items removed from your credit reports only works if they are actually untrue. The CFPB points this out very specifically on their website:

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How Credit Scores Are Calculated

In addition to checking your credit reports for errors, you should have a general idea of how credit scores are calculated. You probably have additional questions you want answered as well.

For example, what is a good credit score? And what is a bad credit score?

First off, you should know that the most important credit scoring model is the FICO scoring. Meanwhile, VantageScore is the second most commonly used credit scoring model.

Since FICO credit scores are used by 90% of top lenders, we’ll focus on this type of credit score for the purpose of this guide. Like VantageScore, FICO credit scores fall between 300 and 850, with higher scores being superior to lower credit scores.

According to myFICO.com, FICO credit scores are also separated into the following ranges:

• Exceptional: 800+

• Very Good: 740 to 799

• Good: 670 to 739

• Fair: 580 to 559

• Poor: 580 or less

If you’re wondering where you stand, you should know that Experian reported that the average FICO score came in at 714 in 2022. This means that, for the time being, most American consumers have what is considered a “good” credit score.

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What to Do If You Find Something Wrong in Your Reports

To keep your credit score in the best possible shape, you should make sure you read over your credit reports from all three credit bureaus — Experian, Equifax, and TransUnion — at least a few times each year. Doing so can help you spot inconsistencies in your credit reports and even false reporting or mistakes. 

To get a look at your credit reports from all three bureaus, you should use the website AnnualCreditReport.com. This portal lets you check all of your credit reports for free up to once per week, and you can complete the entire process online.

How to Dispute Negative Items on Your Credit Reports

If you find any errors on your credit reports, especially errors that may be hurting your score, you should take steps to have them removed. Just remember that you will only have success having negative reporting removed from your reports if the information is actually incorrect.

The FTC notes that you’ll need to dispute any incorrect reporting with both the credit bureaus that report the information and the company that supplied the data. If your Experian credit report shows a late payment on your Wells Fargo car payment, for example, you would need to dispute the information with both Experian and Wells Fargo. 

If the false information was on all three of your credit reports, on the other hand, you would need to send the same information to Experian, Equifax, TransUnion, and Wells Fargo.

Steps you’ll need to take to dispute information on your credit reports include:

• Step 1: Explain in writing what you think is wrong on your credit reports, along with the reason the information is incorrect.

• Step 2: Send printed copies of your credit reports with your letter, and make sure to highlight or circle the incorrect information.

• Step 3: Include any proof you have that the information is wrong, such as a bill that shows your balances have been paid or an account closure statement.

• Step 4: Request in writing that the incorrect information you’re writing about is removed or updated.

• Step 5: Make sure to include up-to-date contact information for yourself when you contact each company, such as your name, address, and phone number.

Note that you can put together a single packet of this information and send it to the credit bureaus and the company that reported the information. In some cases, however, credit bureaus also have their own dispute form you can send along.

If you’re not disputing information on your credit reports online, make sure to send the information for your dispute via certified mail.

Either way, you’ll want to send the information to the appropriate credit bureau using the information below, and you can send the information to the reporting company using the address listed on your credit report.

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Credit Bureau Dispute Information

If all of this sounds overwhelming, it’s also worth mentioning that the best credit repair companies can take on this work for you. Not only can these companies pore over your credit reports to check for errors, but they can dispute errors and misreporting on your behalf.

For example, Lexington Law charges reasonable fees in exchange for handling all aspects of credit repair ranging from disputing incorrect information on your credit reports to bankruptcies, collections, foreclosures, and more. The company also lets you complete the entire process online and over the phone, so you won’t have to drive to a credit repair office or spend time meeting with someone in person.

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Common Credit Report Errors and Entries That Hurt the Most

While it’s possible almost anything on your credit report could be a mistake, the Consumer Financial Protection Bureau (CFPB) says the following credit report errors are some of the most common:

• Wrong name or contact information

• Incorrect accounts that exist due to identity theft

• Closed accounts that are reported as open

• Accounts that are falsely reported as late or delinquent

• Incorrect dates for last payments

• Debts listed more than once

• Incorrect balances

• Incorrect credit reports

• Accounts with an incorrect credit limit

Any of these errors could be hurting your credit score in some way, which is totally avoidable if you take steps to dispute incorrect data. If you’ve been wondering how to build your credit score, this is one move you’ll want to make at least a few times per year.

Related: How to Raise Your Credit in 5 Months

Final Thoughts on Removing Negative Items From Your Credit

If you want to improve your credit score so you can qualify for a mortgage, a car loan, or the best personal loans and credit cards, you should make sure you check your credit reports every few months. Doing so can help you discover errors before they cause too much damage, and you can also spot the early signs of identity theft.

Simply put, there are no downsides that come with checking your credit reports for free and disputing false items. If you fail to do so, however, you could live to regret it.

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FAQs on Removing Negative Items on Credit Reports

The post How to Remove Negative Items From Your Credit Reports appeared first on Good Financial Cents®.

You need to keep your cash liquid so it’s easily accessible when you need it, which means you also need to invest in a way that doesn’t put you at too much risk of losing capital.

You will likely achieve a lower return than the best long-term investments offer as a result, yet that’s the price you pay for keeping your investment “safe.”

But, what are the best short-term investments out there right now?

In this article, we’ll break down the absolute best investment options for people with the following timelines:

• Best investments for up to three years

• Best investments for up to five years

If you have some cash to invest for up to five years and you’re wondering where to stash it, read on to learn about our top picks and how they stack up in terms of risk vs. reward.

Best Ways to Invest for the Short-Term: Comparison Table

Best Investments for Timelines of Less Than 3 Years

When you know you’ll need access to your money in the next three years, you have to choose from low-risk investments that keep your cash liquid and easy to access.

The best short-term investments for up to three years can help you do exactly that, although some offer more liquidity than others.

High-Yield Savings Accounts

High-yield savings accounts offer a risk-free way to invest your money for the short term, albeit with a much lower guaranteed return than you can get elsewhere.

The best high-yield savings accounts come with yields of well over 4% APY, and many charge minimal account fees or no fees at all.

Even more importantly, the best high-yield savings accounts come with FDIC insurance, so your investment of up to $250,000 per account is fully protected if your bank defaults or closes its doors.

If you’re looking for the best high-yield savings account to open online, we suggest checking out offers from CIT Bank and, Discover, and Save Better.

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• Stability: High

• Liquidity: High

• Transactional Costs: Low

Money Market Accounts

The best money market accounts pay a little more than the best online savings accounts, and they also provide depositors with ATM cards, checks, and deposit slips.

Also note that money market accounts are based on the account balance, not the length of time you invest your money.

This makes money market accounts a good option for people who need a place to park their excess cash for the short term with the option to access their funds at any time.

Like other deposit accounts, you can also rest assured that your money market funds will be protected with FDIC insurance.

If you’re looking for a money market account that offers the highest potential return, you should check out options from banks like CIT Bank and Save Better.

• Stability: High

• Liquidity: High

• Transactional Costs: Low

Crypto Savings Accounts

Crypto savings accounts also make it possible to earn interest on your crypto deposits, but it’s important to note the changing landscape in this industry.

For example, the amount of interest earned in these accounts can fluctuate wildly, and some crypto savings accounts are only available to investors who meet specific requirements.

The best crypto exchanges to check out include Gemini and others. At the moment, Gemini is offering up to 8.05% APY on crypto deposits, which are loaned out to other crypto investors similar to the way traditional banks loan out their funds.

That said, it’s worth noting that having a cryptocurrency savings account is not the same as having a savings account at your bank.

Not only do crypto savings accounts come without the protection of FDIC insurance, but there are ongoing concerns about digital theft.

Also, be aware that you may have to pay fees to sell your crypto and get your money out.

• Stability: Risky

• Liquidity: Medium

• Transactional Costs: Varies

Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) offer another way to invest for the short term with less risk than the best long-term investments. This type of investment is made up of companies that own income-producing real estate that may be commercial, residential, or industrial in nature.

Investing in REITs lets you get exposure to returns from the real estate market without the added stress or gruntwork of being a landlord. REITs also let you invest in real estate with a lot less capital than you need to invest in physical property.

For example, a company called Fundrise sells private equity REITs, and investors can open an account and start building a real estate portfolio with as little as $10.

Just keep in mind that returns are not guaranteed with REITs and that you have the potential to lose money in the short term. However, Fundrise has performed well since the company’s inception in 2010.

After achieving average investment returns of 7.31% for their customers in 2020. It then backed those returns with 22.99% in 2021 and 1.5% in 2022.

1.5% might not seem like a good return but compared to the Public REIT sector which lost -25.10% that’s a good year. You can see my personal Fundrise returns here.

Invest in Real Estate

• Low minimum investment – $10
• Diversified real estate portfolio
• Portfolio Transparency

It’s also important to note that some REITs are more liquid than others. In fact, funds invested with Fundrise may be difficult to liquidate if you need your money quickly.

• Stability: Medium

• Liquidity: Low to Medium

• Transactional Costs: Varies

Short-Term Notes

If you’re an accredited investor, you can invest in short-term notes through a company called Yieldstreet. The minimum investment starts at just $500, and short-term notes from Yieldstreet come with no hidden fees or expenses.

You can also choose among short-term notes that offer liquidity in as little as six months, so your investment will be somewhat liquid if you have a general idea of when you’ll need to access your money.

When you open an account with Yieldstreet, your monthly interest payments will be paid directly into your Yieldstreet wallet. Getting started with this platform is a breeze as well.

All you have to do is open an account, prove your accredited investor status, and then link a bank account online in order to transfer your funds. 

• Stability: Medium

• Liquidity: Medium

• Transactional Costs: Low

• Access to wide array of alternative asset classes
• Access to ultra-wealthy investments
• Can invest for income or growth

Learn More Now

Best Short-Term Investment Options for 3 Years or Less

Best Investments for Up to 5 Years

If you want a place to park your investment for up to five years, you may feel comfortable taking on slightly more risk in exchange for the chance at higher returns.

The best short-term investments for up to five years tend to fit that criteria, although they may also offer less liquidity as a result.

Roth IRA

A Roth IRA is a type of retirement account that can be funded with after-tax income. As a result, you are free to withdraw the contributions you made at any time. However, you cannot withdraw your earnings without a penalty before you reach retirement age, or at least 59 ½.

Once you open a Roth IRA, you can invest in any number of options from mutual funds to index funds, exchange-traded funds (ETFs), or bonds.

This money will grow regardless, and perhaps even until you retire. However, the fact you can access your contributions at any time makes the Roth IRA a smart place to invest over a short period of time, even up to five years.

If you’re looking for the best places to open a Roth IRA, you’ll want to check out M1 Finance, Betterment, and E*TRADE.

• Stability: Varies

• Liquidity: High

• Transactional Costs: Varies depending on which online brokerage firm you use to fund your account

Short-Term Bond Funds

Short-term bond funds are products that are usually only managed by a professional financial advisor. Bonds are not as stable as money market accounts or high-yield savings accounts either, but they do offer the potential to earn a higher yield.

Short-term bonds usually mature in terms within 2 years or less, which can make them an ideal choice for investors with that type of timeline.

Where to buy bonds? Some of the best options for buying short-term bonds include M1 Finance and E*TRADE.

• Stability: High

• Liquidity: Low to Medium

• Transactional Costs: Varies

Exchange-traded Funds (ETFs)

Exchange-traded funds (ETFs) are a type of pooled investment that are built to match a specific index, such as the S&P 500.

This makes ETFs somewhat similar to index funds, although ETFs can be traded throughout the day while index funds can only be traded at the end of the trading day.

Generally speaking, ETFs also tend to come with lower minimum investment amounts, and they can be more tax-efficient than index funds.

In addition to ETFs that track a specific index, investors can also choose among ETFs that track specific sectors of the economy or a specific commodity.

Trading fees for ETFs also tend to be on the low end, so they’re a good option for beginning investors who want to diversify their portfolio while also keeping costs down.

The good news about ETFs is the fact you can sell your investment and access your money at any time. On the flip side, you do have the potential to lose money in the short term.

• Stability: Varies

• Liquidity: High

• Transactional Costs: Varies

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Short-Term Corporate and Municipal Bond Funds

Where a corporate bond is a debt instrument used to raise capital, a municipal bond is issued by a city, a town, or a state in order to raise money for various public projects.

Generally speaking, municipal bonds remain popular because they come with certain tax exemptions, and they are always deemed “safer” since they are issued by local or state governments.

In the meantime, corporate bonds are not backed by any government resources, so they’re deemed riskier as a result. On the flipside, corporate bonds may offer the potential for a higher return.

Either way, you’ll need a brokerage account with a firm like E*Trade to be able to trade individual bonds, bond mutual funds, and bond ETFs. Likewise, you can buy municipal bonds through bond dealers, banks, and brokerage firms.

• Stability: Varies

• Liquidity: Medium

• Transactional Costs: Varies

Series I Savings Bonds

Series I Savings Bonds are government-backed bonds that earn interest based on a fixed rate and a variable rate that is updated twice per year. For bonds issued now through April of 2023, the rate is 6.89%.

This type of bond doesn’t require you to pay any state income taxes, although federal income taxes apply. Just remember that Series I Savings Bonds aren’t quite as liquid as some other investments.

For example, you can only cash them out after you have had them for at least one year. If you cash out your Series I Savings Bonds before five years, you’ll also lose three months of interest.

It’s also worth noting that each individual can only purchase up to $10,000 in Series I Savings Bonds each year. That makes these bonds a poor option if you need to invest $20,000 or you have $50,000 to invest right away.

• Stability: High

• Liquidity: Medium

• Transactional Costs: Low

Bonus Idea: Real Estate Hard Money Loans

Real estate hard money loans work differently than traditional mortgage lending, mostly because the borrowing requirements are looser than a traditional home loan.

This means the investor buying a property can get their hands on their loan funds considerably faster (usually a matter of days instead of weeks or months),  yet they pay a higher interest rate and have a much higher down payment requirement.

Investors who put their money into real estate hard money loans take on considerably more risk as a result. That said, the returns can be exceptional for investments that pay off.

Also note that real estate hard money loans usually last for just a few years, which makes them unique from traditional home loans that last 15 to 30 years.

That said, investors who take on these loans won’t get their money back until the borrower pays their loan off, so they’re not nearly as liquid as other investment options.

• Stability: Low

• Liquidity: Low

• Transactional Costs: Varies

Best Investment Options for Short-Term Gains (Up to 5 Years)

What I Look for In a Short-Term Investment November 2024

There are all kinds of ways to invest your money for the short term, but you should definitely be picky when it comes to money you may need in the next few years.

After all, you want to make sure you aren’t taking on too much risk, especially when it comes to risking substantial loss of capital. Yet, you also need to ensure your money will be somewhat easy to access when you need it.

The main factors I look for when comparing short-term investments include:

• Stability: The best short-term investment options tend to have a low risk of losing money over the short term, or at least not over any period of three to five years.

• Liquidity: Short-term investments should also be somewhat liquid, or at least accessible within a one to five-year timeline.

• Low Transaction Costs: Short-term investments shouldn’t require you to pay exorbitant fees to access your money or to invest in the first place.

All the short-term investments we have outlined in this guide fit this criteria to a certain extent, although there are certainly some pros and cons to consider with each option we recommend.

For example, investing in Series I Savings Bonds gets you a guaranteed return of 4.3%, yet you won’t be able to access your money for a least one year and you’ll give up three months in interest if you cash out your bonds within the first five years.

On the flip side, a high-yield savings account offers considerably less interest than that, but your money is protected with FDIC insurance and easy to access at any time.

With this in mind, you should remember that achieving a higher yield typically means taking on slightly more risk or giving up some liquidity. The best short-term investment for your money will offer a balance of these factors you can live with.

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The post Best Way to Invest Your Money Right Now (Short-Term Options) appeared first on Good Financial Cents®.

The thing is, the best pet insurance can actually make being a pet owner considerably more affordable — particularly if your pet winds up needing surgery or being diagnosed with a chronic medical condition.

The key to getting ahead with pet insurance is choosing from the best pet insurance companies and selecting a plan with the deductible, waiting periods, and reimbursement levels that make sense for your pet.

Pet Insurance Cost Comparison

The chart below shows how much pet insurance costs from a few different pet insurance companies we recommend. After that, we’ll go over all the intricacies of pet insurance plans and how pet insurance works.

Pet Insurance Guide

The best pet insurance can help you cover mounting costs that rack up when your pet needs surgery or gets diagnosed with a chronic medical condition. After all, there are an array of pet care expenses you may have to cover, some of which you cannot predict ahead of time.

Many costs associated with owning a pet can add up to thousands of dollars during the course of a single year. Without a pet insurance policy, pet owners have no choice but to cover these expenses themselves.

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As an example, CareCredit lists the following amounts for complex and emergency care costs for dogs and cats:

Common Pet Expenses for Emergencies and Chronic Conditions

What Does Pet Insurance Cover?

Just like monthly premiums, deductibles, and waiting periods that apply, the coverage options included in a pet insurance policy vary from company to company.

However, there are some general rules of thumb that come into play when it comes to what most pet insurance plans cover, as well as what they do not cover or rarely cover without an uptick in premiums.

What does pet insurance cover? While plans vary, most pet insurance plans provide some level of protection for the following:

• Accidents that occur, such as a broken bone during play or your dog or cat swallowing a foreign object

• Illnesses your pet is diagnosed with, such as cancer, arthritis, hypothyroidism, ear infections, and urinary tract infections (UTIs)

• Hereditary and congenital conditions, such as eye disorders, hip dysplasia, and heart disease

• Behavioral therapy that helps pets overcome behaviors such as excessive licking, fur pulling, and destructive chewing

• Exam fees can add up quickly if your pet has frequent vet visits

• Chronic conditions your pet may be diagnosed with, such as diabetes

• Prescription medication coverage, which can help your pet get the medicines it needs

• Preventative care for pets, such as vaccinations, exam fees, flea and tick medication, and more

Note that some of the above may be included in pet insurance plans automatically, whereas other types of coverage are typically offered as an optional add-on.

At the end of the day, you’ll need to compare pet insurance companies based on these inclusions, as well as on factors like your deductible, any waiting periods that apply, reimbursement levels, and more.

Understanding Common Exclusions in Pet Insurance

Pet insurance plans tend to have long lists of excluded items, and many do not provide coverage for older pets.

Common pet insurance exclusions include the following:

• Most pre-existing conditions your pet has, although pre-existing conditions are sometimes covered after waiting periods pass

• Cosmetic procedures, such as tail docking or ear cropping

• Expenses associated with breeding your pet

• Coverage for exotic pets

• Dental illnesses that occur unless you have specific coverage for pet dental care

• Costs associated with spaying and neutering your pet

• Alternative treatments for your pet, such as acupuncture, chiropractic care, rehabilitative therapy, and hydrotherapy

• Microchip implantation, which can help you find your pet if it gets lost or stolen

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How Much Does Pet Insurance Cost?

The cost of pet insurance varies widely, so you’ll need to shop around and compare pet insurance quotes to find the best deal. That said, you should know that some factors that impact pet insurance costs are within your control, whereas others are not.

How much is pet insurance? Monthly or annual premiums are based on the following:

• Whether You Have a Cat or a Dog

• Age of Your Pet

• Breed of Your Pet

• Pet Insurance Discounts You May Be Eligible For

• Your State of Residence

• The Deductible You Choose for Your Pet Insurance Plan

• Reimbursement Levels for Your Plan

• Coverage Options Included

• Optional Add-on Coverage You Select

• Lifetime, Annual, or Per-Incident Maximums for Your Pet Insurance Policy

How Does Pet Insurance Work?

Pet insurance plans can work differently depending on the company you buy from. That said, most have similar features and several different tiers of coverage you can select from ahead of time.

For example, you can shop around for bare-bones pet insurance policies that provide limited coverage for catastrophic conditions after large deductibles are met and all waiting periods have passed.

However, you’ll also find premium pet insurance plans that provide generous coverage and include wellness coverage and a high reimbursement percentage for most conditions.

Consider the following example policy from TrustedPals pet insurance, which we received for a large (51 to 110 pounds) female dog named Madge, who is five years old.

As you can see, TrustedPals pet insurance offers three tiers of dog insurance coverage that range from budget-friendly to comprehensive.

Note how the budget-friendly and mid-tier plans have a higher deductible as well as annual coverage limits that apply.

In the meantime, the comprehensive plan comes with a lower monthly premium, a higher reimbursement rate, and no annual limit on payouts.

Let’s say your dog Madge swallows a foreign object, and you rack up $5,000 in vet bills as a result. The chart below shows how much each tier of this coverage could cost you for a single year, plus how much your coverage could save you in vet bills.

Pros and Cons of Pet Insurance

How to Find the Best Pet Insurance Policy

To find the best pet insurance policy for your pet and your budget, you’ll want to compare quotes from at least four or five different pet insurance companies.

Factors to consider and compare include:

• Monthly or Annual Premiums

• Reimbursement Levels

• Annual Limits on Payouts

• Pet Insurance Deductible Options

• Waiting Periods That Can Apply Before Coverage Kicks In

• Included Coverage Options

• Available Add-Ons, Such as Wellness Coverage, Dental Care, and Vaccinations

The best pet insurance for you depends on how much coverage you want, the reimbursement percentage you prefer, and the level of deductible you’re comfortable with.

In the meantime, you should check for plans that include the level of coverage you want for your pet’s preventative care needs, including coverage for wellness care, dental care, and more.

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Bottom Line – Is Pet Insurance Worth It?

However, the intangible benefits, while harder to quantify, are equally compelling. The peace of mind that comes with knowing you won’t have to make a heart-wrenching decision based solely on financial constraints is invaluable to many pet owners.

Pet emergencies are unpredictable. The suddenness with which accidents or illnesses can strike means that without insurance, you might find yourself facing immediate, steep veterinary bills that you hadn’t budgeted for.

Insurance can alleviate much of this financial stress, allowing you to focus solely on the recovery of your pet.

Furthermore, advances in veterinary medicine have made treatments once reserved for humans now available to our pets. While these treatments can significantly improve the quality of life and lifespan of our pets, they can also be expensive.

Pet insurance can make these advanced treatments more accessible to the average pet owner.

However, as with all insurance products, pet insurance isn’t a one-size-fits-all solution. The premiums, coverage options, exclusions, and deductibles vary widely among providers.

Therefore, it’s crucial to do your homework. If you are on the fence about buying pet insurance, it’s advisable to take a proactive approach. Begin by comparing policies, reading reviews, and even speaking to other pet owners about their experiences.

Look for a policy that aligns with both the specific needs of your pet and your financial situation.

The post Is Pet Insurance Worth It? appeared first on Good Financial Cents®.

While most borrowers should focus on federal student loans first, private student lenders can help you fill in funding gaps so you can get through school and graduate on time. If you’re in the market for a student loan from a private lender, read on to learn which seven companies we recommend, the type of student loans they offer, and details on who can qualify.

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Our Picks for Best Student Loans

• College Ave Student Loans: Best for Flexibility
• Splash Financial: Best for Student Loan Refinancing
• Sallie Mae: Best Career Training Loans
• Discover: Best Student Loans for Great Rates
• SoFi: Best Student Loans for No Fees

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Best Student Loans – Lender Reviews

The following reviews explain how the best student loans work, which companies and online lenders offer them, and their main features and benefits.

College Ave offers private student loans for undergraduate and graduate students as well as parents who want to take out loans to help their kids get through college. Interest rates are highly competitive, and its student loans come with no origination fees, no prepayment penalties, and no hidden fees of any kind.

If the student attends a qualifying institution, they can apply for $1K or up to the total cost of attendance. Undergrads who need a larger amount can apply to the Multi-Year Peace of Mind loan program.

This student loan company also makes it possible for borrowers to complete their entire student loan application online, and it offers an array of helpful tools that can help you figure out how much you can afford to borrow, what your monthly payment will be, and more. Most College Ave student loans also come with multiple repayment options that can last for five years, eight years, 10 years, or 15 years.

Finally, students can decide when to begin making payments on their private student loans through College Ave. They can choose to make full interest and principal payments right away, but they can also opt to make interest payments, flat payments, or defer loan payments altogether during a grace period until after they graduate.

Splash Financial is a loan comparison site that makes it easy to shop around and compare rates for in-school student loans and the best student loan refinance products. Its interest rates and terms are highly competitive, and applicants can even check their rates online without any impact on their credit score.

If you have 100k in student debt or more, it’s worth noting that refinancing with a company like Splash Financial could help you save thousands of dollars on interest, get out of debt faster, or both.

This company focuses on student loan refinancing products specifically, including refinancing offers for medical school debt. Once you enter some basic information online, you’ll be shown an array of loan offers that have the potential to work for your needs.

Note that the lowest rates from Splash Financial include a .25% discount for auto-pay. Since it’s not a direct lender, you’ll need to research individual lenders offered through the platform before you move forward.

Sallie Mae offers student loans for undergraduate students, graduate students, and individuals participating in career training programs. Its career training student loans are especially unique because they work well for students taking professional training or certificate courses in fields such as culinary arts and aviation, yet it still offers highly competitive rates and terms.

Sallie Mae student loans don’t require any origination fees, and they don’t have hidden fees. Sallie Mae even extends its loan products to students who are enrolled in college for less than half-time, which is not the case with many other lenders in this niche.

Discover offers undergraduate student loans, graduate school loans, student loans for parents, and student loan refinancing to eligible borrowers. Its rates and terms are some of the best on the market today, and applicants can complete the full loan application online and from the comfort of their homes.

Student loans from Discover also come with an auto-pay discount, and you can qualify for a one-time cash reward of 1% of the loan amount when you can prove a minimum 3.0 GPA (or equivalent). Also, note that multiple loan repayment plans are offered and that students can choose to begin payments during school or defer them until they graduate.

SoFi is a financial technology company that offers banking and investing products, personal loans, and student loans. Its student loan offerings, in particular, are rather broad, considering borrowers can take out undergraduate loans, graduate school loans, parent loans, or student refinance loans.

SoFi members gain access to a number of benefits, including six months of Best of Evernote and a rewards program. To add up points, members must use the app to manage their bank accounts, credit cards, loan payments, or investments.

Note that SoFi offers its own unemployment protection program that makes it possible to skip payments temporarily when you are experiencing financial hardship. Auto-pay discounts are available, and borrowers can choose to repay their student loans over five, seven, 10, or 15 years.

SoFi also lets potential borrowers check their rates online without any impact on their credit scores. If they decide to apply, the entire application process takes place online. Be aware that international students (even if they’re permanent residents) aren’t eligible to apply for a cosigner.

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Student Loan Guide

Direct subsidized, unsubsidized loans, parent plus loans, fixed or variable interest rates… the sheer variety of types of loans and related information can be overwhelming, and with the total cost of attendance to college so expensive, odds are you’ll need help. Whether you’re wondering how student loans work or you’re just trying to avoid student loan scams, your best bet is to arm yourself with as much information as you can.

Our student loan guide will help you figure out what you need to know about the best private student loans and federal student loans, how they’re different, and the steps you should take before you decide which student loan option makes the most sense for you.

Federal vs Private Student Loans

Federal student loans are backed by the federal government, whereas private student loans are offered independently through private student loan companies. Generally speaking, federal student loans should be used first since they come with federal protections like deferment and forbearance, as well as the chance to participate in income-driven repayment plans and other forgiveness programs.

Federal student loans limit the amount each student can borrow each year (and over their academic career) depending on the academic year, type of loan, whether it’s an undergraduate or graduate student loan, and whether the borrower is a dependent or independent student.

Private student loans are typically used by student loan borrowers who have tapped out all the available federal financial aid available to them, including federal student loans. Many borrowers also refinance federal student loans with private lenders or credit unions in order to secure lower interest rates, better loan terms in line with their financial needs, or even for debt consolidation. 

However, it’s important to note that refinancing federal loans with a private lender means giving up all the federal protections afforded to you.

How to Choose a Student Loan

Before you choose a student loan, there are an array of factors to consider. Keep the following details in mind as you compare lenders and offers.

• Fill Out the FAFSA: Since students should take advantage of federal student loans first, the first best step is filling out the Free Application for Federal Student Aid (FAFSA). This form will let you know details of the federal student loans you’re eligible for, plus how much you can borrow.

• Compare Interest Rates and Terms: Once you begin shopping for private student loans, make sure to compare lenders based on their interest rates and loan fees. 
  
  If you have been wondering how to pay off student loans as quickly as possible, scoring a loan with a low rate and no fees can help. Check whether the lender has any disbursement or prepayment penalties as well. 

• Check for Flexible Repayment Plans: Make sure you’re satisfied with the payment schedules being offered to you. If you need a lower monthly payment, look for student loan companies that let you repay your loans over 15 to 20 years.

• Check for Eligibility Requirements: Check whether lenders you’re considering have a minimum credit score or minimum income requirement. If your credit score is in really poor shape and you don’t have a cosigner, the best credit repair companies may be able to help.

• Use a Loan Calculator to See Your Monthly Payment: Use a student loan calculator to see how much your payment might be with different lenders. This metric will be impacted by the interest rates you’re offered as well as the payment plans you get to choose from.

• Check Your Rate Without a Hard Inquiry: Finally, look for student loan companies that let you gauge your ability to qualify and check your rate without any impact on your credit score.

What Is Student Loan Deferment?

In March of 2020, the U.S. Department of Education announced the decision to pause payments on eligible federal student loans while fixing interest rates at 0%. The emergency measure, which was put into action to help deal with the fallout of the COVID-19 pandemic, also brought all collections activity on federal student loans to a halt.

This emergency measure was originally intended to last several months, but the expiration date has been extended six times so far. The emergency deferment period expired on August 31, 2022. This is not to be confused with student loan forgiveness plans, which propose the federal government waive a fixed amount from federal education loans.

How We Found the Best Student Loans

To find the best student loans on the market today, we compared lenders based on factors including the interest rates and annual percentage rates they offer, their loan fees and rate discounts, and the ease of their application process. We focused on lenders that offer student loans with no origination fees and no hidden fees, and we gave preference to companies that let borrowers check their rates without a hard inquiry. 

We also looked for companies that have reasonable qualification requirements many consumers can meet.

Summary of the Best Student Loans for 2024

• College Ave Student Loans: Best for Flexibility
• Splash Financial: Best for Student Loan Refinancing
• Sallie Mae: Best Career Training Loans
• Discover: Best Student Loans for Great Rates
• SoFi: Best Student Loans for No Fees

Final Thoughts – Best Student Loans

Selecting the right student loan for 2024 involves considering key factors such as competitive interest rates, repayment terms, and flexible payments. While federal student loans should be prioritized, private lenders like College Ave, Splash Financial, Sallie Mae, Discover, SoFi, Ascent, and Credible offer valuable options to bridge funding gaps. 

Each lender caters to specific needs, from flexibility and refinancing to career training and favorable rates. Careful assessment of eligibility requirements, repayment plans, and loan features will empower students to make informed choices in managing their education finances.

The post The 7 Best Student Loans for 2024 appeared first on Good Financial Cents®.

Fortunately, a variety of the best budget apps are absolutely free to use, although upgrading to a paid plan is often worth it. If you’re wondering how to budget and hoping a mobile app can help, read on to learn about the best apps for budgeting, how they compare, and who they’re best for.

Our Picks for the Best Budgeting Apps

• Personal Capital: Best for Building Wealth

• YNAB (You Need a Budget): Best Zero-Sum Budgeting App

• EveryDollar: Best for Dave Ramsey Followers

• Honeydue: Best for Couples

• PocketGuard: Best for Simplified Budgeting

• Goodbudget: Best for Virtual Envelope Budgeting

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Best Budgeting Apps – Reviews

Like it or not, creating a spending plan is the best way to minimize financial waste so you can pay down debt, save more money, and work toward various personal finance goals. The following mobile apps can help you create a budget that works.

Mint is an online budgeting tool and expense tracker that automatically categorizes your transactions and helps you track your spending so you can work toward various financial goals. You can link your financial accounts — savings, checking, credit cards — to Mint. By doing so, the budgeting app lets you get a holistic view of your finances, as well as where all your extra money is going each month. 

Mint also helps you track your progress toward retirement goals, and you can use the app to create and track a debt payoff plan to boot. Visual tools, including graphs and reports, clearly illustrate your situation and help you chart a course.

The best part about Mint is that it’s absolutely free to use since it’s supported by ads and offers. If you want to get into budgeting but you’re not ready to pay for the privilege, you should definitely consider giving Mint a try.

Personal Capital is actually a robo-advisor, meaning this company is an online financial advisor of sorts that offers wealth management and portfolio management services. That said, the Personal Capital app also offers an array of free money management tools you can sign up for, including budgeting tools and software, a 401(k) fee analyzer tool, retirement planning calculators, and more.

For those who want to add tracking to various aspects of their monthly budget, Personal Capital is worth considering. Your financial dashboard allows you to see everything that is going on in your financial life, from your monthly spending habits to how your net worth changes over time.

On top of that, you can track your investment portfolio, and even receive objective investment advice if you want to pay an annual fee of 0.89% and you have a minimum account balance of at least $100,000. However, the regular service is free, and you can manage your finances — and investments — with the help of this budgeting tool. Check out our Personal Capital Video Review to learn how this app works and who it’s best for.

YNAB (You Need a Budget) is a budgeting app that uses the zero-sum budgeting method — a type of budgeting that requires you to “spend” every dollar you earn on paper to eliminate waste. By giving each dollar you earn a job, you can ensure all your bill payments are on time while also working toward financial goals, whether that means saving up an emergency fund, paying off high-interest debt, or both.

This budgeting app syncs with all your financial accounts, making it easy to track spending and bank balances in real time. You also get access to an array of financial tools, including spending and net worth reports, loan calculators, goal-setting tools, and more.

While YNAB doesn’t offer a free plan for the long term, they do offer a free trial for 34 days. This may be enough time to try YNAB to see if it’s worth it, but make sure you’re fine with paying for this app after the first month is up. If you decide to keep YNAB beyond the free trial, you’ll need to fork over $14.99 per month or $98.99 per year in membership fees.

EveryDollar is a free budgeting app offered by Dave Ramsey and Ramsey Solutions. This app also uses the zero-sum budgeting system to help users pay off debt and save toward various goals.

One of the benefits of EveryDollar is the fact you get to personalize your budget and categories to fit with your lifestyle and how you normally spend. You can also set up individual savings buckets for various goals you are working toward, whether you are saving up an emergency fund or setting aside some money from each paycheck for a family vacation.

The EveryDollar app also lets you set due dates for nearly anything from upcoming bills to milestones you want to remember. The app also offers budget insights, regular spending reports, and debt-tracking tools. Finally, the paid version of this app is actually part of the Ramsey+ membership. This membership also comes with educational resources such as Financial Peace University, as well as various tools and financial content from Ramsey Solutions.

If you decide to sign up for the paid version of EveryDollar, you should know that you’ll have to commit for at least three months and that membership fees vary depending on the length of the program you sign up for. Membership options will set you back $19.99 per month for three months, $16.66 per month for six months, or $10.83 per month for one year.

Honeydue is a budgeting app that was created with couples in mind. This app syncs with more than 20,000 different financial institutions, so couples can see all their transactions and bank balances in one place. They can also chat with one another within the app, whether they want to send a supportive message or ask about a charge. 

Honeydue also makes it easy to coordinate the payment of household bills and expenses with both parties knowing exactly where they stand all along.

This app also offers the chance to upgrade to a free joint checking account called a Joint Cash account. This account is free of fees and account minimums, and it even offers access to 55,000 free ATMs nationwide. The checking component of this app will also have a bill pay feature in the future, which means users may be able to track their spending and pay their bills all in one place.

PocketGuard is another budgeting app to consider if you want to get a complete look at your finances using your mobile device. This app lets you see your bills and expenses, as well as your savings accounts, all in one place. You can set up savings goals and track them with the app, and you can use expense tracking and basic budgeting tools to figure out what you need to do to save more each month. You can even customize categories and create expense reports with the paid version of the app.

This app also helps you negotiate better rates on your cable bill, your cell phone bill, and other regular expenses you have. A referral program even lets you earn up to 12 free months with PocketGuard when you refer your friends.

If you decide to pay for PocketGuard, membership fees will cost you $7.99 per month or $79.99 per year. You can also purchase a lifetime membership for $99.99.

Goodbudget helps you work toward your financial goals with the help of a digital envelope system. Basically, you use the app to set up various spending categories and set a cap for each one. From there, you manually input transactions in your Goodbudget with the goal of staying within the boundaries you have set while avoiding overspending.

Goodbudget also offers debt payoff tools and the ability to track your progress over time. You can also use the app to set up savings goals and keep stock of where you’re at.

There are two versions of the Goodbudget app — the free version and the paid version. Where the free version lets you track 10 or more budgeting categories or “envelopes” and works on two devices, the paid version includes unlimited envelopes and up to five devices. Note that the paid version of Goodbudget will set you back either $8 per month or $70 per year.

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Budgeting Apps Guide

Whether you’re wondering how to get out of debt or trying to figure out where your money actually goes each month, the best budget apps can help. While you can always go old-school, with Excel spreadsheets and dedicated envelopes for each part of your budget, an app can simplify the work for you and offer many more features and tools. Read on to learn how budgeting apps work and why giving one a try may be well worth it in the end.

What Is a Budgeting App?

A budgeting app is a mobile app that lets you track your spending, your bank balances, and various goals you set up on your mobile device. That said, many apps have different budgeting features and tools, so you’ll need to do some research before you decide on the best app for your needs.

For example, some budgeting apps focus on helping consumers out of debt, so they use tracking tools and debt repayment tools to help you hatch a plan. From there, they help you figure out how much you can pay toward your credit card accounts and personal loans each month so you can become debt-free.

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Other budget apps focus on setting spending limits so you can save more money over time. These apps help you set aside cash in financial products, such as the best high-yield savings accounts, so you can grow your savings over time. They can even help you build a stash of money you can move into the best short-term investments once you’re ready.

Some budgeting apps also come with wealth-tracking tools, retirement calculators, and other features (such as roundup tools) that are meant to help you improve your finances for decades to come.

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How to Compare Budgeting Apps

If you’re looking for ways to save money and you believe an app can help, there are a range of factors you should consider. Before you choose from the best apps for budgeting, look at each one closely to see how they compare based on the following:

• Free Trial: Budgeting apps that offer a free trial let you give them a chance without making a financial commitment. With a few weeks or a month to try out an app, you’ll be able to decide if it’s the right option for your needs.

• Ongoing Pricing: If you’re considering budgeting apps with paid plans, make sure to look at their monthly and annual pricing to see how they compare. Only try out apps with fees you can afford, and make sure the paid plans you’re considering have fees that justify their costs.

• App Features: Check whether apps have the functions you want most, whether you are focusing on debt repayment or looking for ways to get on track with your bills so you can improve your credit score.

• Number of Devices: If you want to budget with your spouse or partner, make sure any app you’re considering allows multiple devices on the same account.

Syncing capability: Finally, decide whether you want to sync your financial accounts or input transactions manually. Most budgeting apps let you sync accounts so you can track your budget and spending in real time, but not all of them do.

Reasons to Consider a Budgeting App 

If you have tried budgeting in the past but it never seems to work, the best apps for budgeting may be the answer you’re looking for. Here are the main reasons to try a budgeting app if you haven’t already.

• Find Out Where Your Money Goes: One of the biggest benefits of budgeting apps is the fact they let you see where your money is actually going without having to track your expenses manually: And when you know where your money is going, you can check for waste and look for areas of your budget to cut back.

• Get a Bird’s Eye View of Your Finances: Budgeting apps offer a holistic view of your finances, including how much you actually save and spend each month.

• Pay Down Debt: Most budgeting apps let you create debt repayment plans and then track your progress over time. Without this kind of help, it can be difficult to create a realistic plan and stick with it, let alone know where you’re at along the way.

• Free Up More Cash for Savings: Because budgeting apps track your spending and expenses on your behalf, they force you to look at yourself and your habits. Very often, the act of tracking your expenses and cash flow makes it easier to save more money each month.

• Simplify the Budgeting Process: Finally, budgeting apps do the budgeting grunt work for you (i.e. tracking expenses, monitoring your savings goals, etc.) so you can spend your time on other projects.

How We Found the Best Budgeting Apps

In our efforts to find the best budgeting apps of 2043, we looked for Apple- and Android-compatible apps that have a 3.8-star rating or better through both Google Play and the App Store. We also looked for budget apps that offer a free version or a free trial period, although we included apps that only offer paid versions if their perks and features were well worth it.

Other factors we considered include affordability, budgeting tools, and the presence of goal-setting tools and financial planning features. We also focused on apps that sync with your financial accounts for ultimate convenience and accuracy. 

Finally, we only included apps that offer 256-bit encryption or better, enhanced security features such as two-factor authentication, and a satisfactory history of keeping your personal financial information safe from hackers and thieves.

Summary of the Best Budgeting Apps

In 2024, the best budgeting apps offer advanced financial management. These apps, like Personal Capital, YNAB, EveryDollar, Honeydue, PocketGuard, and Goodbudget, employ technology to track income, expenses, and goals. Mint provides holistic financial views and free tracking, while Personal Capital offers wealth management. 

YNAB’s zero-sum approach ensures each dollar is used efficiently, while EveryDollar fits Dave Ramsey’s followers. Honeydue aids couples in managing finances, and PocketGuard simplifies budgeting. Goodbudget employs a digital envelope system. Consider app features, pricing, syncing, and security when choosing. Such apps help track spending, save money, and achieve financial goals.

• Personal Capital: Best for Building Wealth

• YNAB (You Need a Budget): Best Zero-Sum Budgeting App

• EveryDollar: Best for Dave Ramsey Followers

• Honeydue: Best for Couples

• PocketGuard: Best for Simplified Budgeting

• Goodbudget: Best for Virtual Envelope Budgeting

The post The 7 Best Budgeting Apps of 2024 appeared first on Good Financial Cents®.

Not only should you compare the best auto insurance companies based on their customer service scores and ratings, but you should also look at the coverage options they offer and their record of paying out claims.

In order to choose the best car insurance company for you, you’ll also want to consider your unique needs and preferences and weigh factors like financial strength and availability in your state.

With all this in mind, we took the time to compare more than 20 of the best car insurance providers based on the factors that matter most. As you search for a new policy, consider getting a free quote from some of our top picks below.

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Our Top Picks for the Best Car Insurance of November 2024

• Progressive: Best for Discounts
• Allstate: Best Overall User Experience
• GEICO: Best Mobile App
• Esurance: Best for Ridesharing
• State Farm: Best for Teen Drivers
• Liberty Mutual: Best for Customization
• USAA: Best for Military
• Amica Mutual: Best for Gap Insurance
• Auto-Owners Insurance: Best Agent Experience
• The Hartford: Best for Claims Satisfaction

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Best Car Insurance – Company Reviews

While the table above shows how the best car insurance companies compare based on some popular metrics, you should know more about each of these providers and how they work.

The car insurance reviews below explain the pros and cons of each auto insurance company as well as some basic information about their coverage options.

Progressive Insurance

Originally founded in 1937, Progressive Insurance has been offering an array of insurance options for nearly 100 years. This company is also listed as the third-largest in terms of auto insurance premiums written in 2020, with a total market share of 13.3% that year.

When it comes to Progressive auto insurance coverage, the company claims that customers who switch save an average of $700 right off the bat.

This is due to its affordable premiums, but it’s also due to the variety of discounts it offers for being a good student, bundling your renters, home insurance, or life insurance policies, paying your premiums in full, and more.

Progressive also offers “Name Your Price” and Snapshot tools (which help Progressive base your rate on your actual driving habits), which means almost everyone will qualify for at least one discount.

Need motorcycle coverage? Progressive tops our list for that, too!

Allstate

Allstate has been in operation since 1931, so this provider also has a long and storied history. This company is also listed as the fourth largest in auto insurance premiums written in 2022, per the Insurance Information Institute (III), with a total market share of 10.4% that year.

Allstate makes it incredibly easy for potential customers to get a free quote online, and its seamless online claims process makes it popular with customers.

It also offers many different discounts, including a DriveWise program that lets users qualify for lower premiums based on their driving history.

Finally, Allstate rewards safe drivers with a Safe Driving Bonus every six months that they remain accident-free.

GEICO

GEICO is one of the most popular car insurance companies out there today, and it’s partly due to its robust online presence. The GEICO website has a range of useful tools and features, including the ability to start a claim and monitor policies and payments online.

The company’s mobile app also boasts some of the best ratings out there, including 4.7 out of 5 stars on Google Play and 4.8 out of 5 stars in the App Store.

In addition to its online features, GEICO is also known for the many discounts it offers. For example, GEICO lets customers save on premiums based on their employment, whether they’re military members, their safe driving history, good student status, and more.

GEICO also says that new customers save an average of $500 when they switch.

Esurance

Esurance was one of the first companies to start selling directly to customers instead of going through an agent. While Esurance is now part of the Allstate Insurance family, it still focuses on its online presence without using local agents to sell or service their policies.

That said, the company does offer a smooth digital experience that makes it easy to customize a plan, receive quotes, manage your policy, and file claims.

One of the primary advantages of buying auto insurance through Esurance is that you have the control and flexibility to build a personalized policy specific to your unique needs.

Esurance also offers rideshare insurance for individuals who drive for Uber or Lyft to earn some cash on the side. This coverage can help fill in the gaps when someone uses their personal vehicle for their side hustle.

State Farm Insurance

Founded in 1922, State Farm Insurance has a history of financial stability and customer service satisfaction.

According to the Insurance Information Institute, State Farm is the largest provider of private passenger auto insurance, with its total premiums written earning a 16.9% market share at last count.

Although State Farm offers online quotes and a mobile app, it’s differentiated by its ability to offer individual, personal service through its robust network of physical offices and insurance agents.

So, unlike Geico and Esurance, which target the technology-savvy, hands-off type of consumer, State Farm is perfect for those who would rather drive to a local office and have their questions answered and their hands held through the process without having to navigate an app or website.

This could be part of the reason State Farm earned the fourth-highest rating in J.D. Power’s 2023 U.S. Insurance Shopping Study.

State Farm also offers the best car insurance for young adults and teenagers by far. While most companies charge notoriously high rates for this riskier demographic, State Farm offers both a good student discount and its Steer Clear feature. 

Steer Clear is an app-based program for drivers under 25 that tracks driving behavior and offers mini-safety courses. After “graduating” from the program, drivers earn a substantial discount that lasts until they’re 25.

Liberty Mutual

Founded in 1912, Liberty Mutual is currently the sixth-largest insurer based on market share. Due to their robust online shopping tools and easy quote system, the company earned the highest rating in J.D.Power’s 2022 U.S. Insurance Shopping Study.

The company claims that new customers can save 12% off their car insurance premiums by shopping for a policy online. Liberty Mutual also offers a seamless online claims process that lets customers submit and monitor their claims from the comfort of their homes.

Most importantly, Liberty Mutual lets customers choose the coverage options they want and skip the rest. This can lead to more customized car insurance coverage and premium savings to boot.

USAA

If you’re fortunate enough to be a USAA member (members or former members of the United States military and their close family members), then USAA should be your first stop for auto insurance. This is partly due to their flexible coverage options and myriad discounts available, but it’s also due to the fact that USAA is known for offering affordable premiums.

This insurance provider also earned the highest rating in J.D. Power’s 2022 U.S. Insurance Shopping Study.

As if that wasn’t enough, USAA has the highest possible rating for financial strength from A.M. Best, as well as top-tier ratings from J.D. Power for claims satisfaction and overall customer satisfaction. USAA also makes it easy for car insurance shoppers to get a free quote and compare coverage options online.

Amica Mutual

Amica Mutual is consistently rated as one of the best auto insurance companies in industry awards and by its customers. In fact, it was near the top of this year’s J.D.

Power Claims Satisfaction Survey, and the company earned the second-highest ranking among mid-size insurance companies in J.D. Power’s 2021 U.S. Insurance Shopping Study.

While the insurer’s basic coverage insurance products include personal injury protection, underinsured or uninsured motorists, property damage, and bodily injury liability, its policies include features that most competitors do not, such as no restrictions on your body shop choice as well as interior vehicle coverage.

Amica Mutual also offers the chance to purchase gap insurance, which is a type of insurance coverage many of the best car insurance companies do not offer. Other options include roadside assistance, rental reimbursement, comprehensive coverage, and collision coverage. 

Finally, young drivers who complete a training program, have good grades, or are full-time students away at school can also gain access to additional discounts.

Auto-Owners Insurance

While Auto-Owners Insurance keeps a fairly low profile, they receive extremely high marks across the board. In fact, J.D. Power gave this car insurance company excellent ratings for claims satisfaction as well as shopping experience in 2021.

The fact that Auto-Owners Insurance has been around since 1916 should also put your mind at ease. During that time, it has consistently exhibited financial stability, with the highest possible A++ rating from A.M. Best this year.

Auto-Owners Insurance operates on an agent-only model, favoring relationships and local businesses over faceless technology. In fact, it has 6,300 agents, despite only being available in 26 states. So if you’re in one of those states, there are likely multiple offices for you to choose from in your city alone.

Founded in 1810, this insurance company has built an excellent reputation in the insurance space for more than 200 years. Its car insurance coverage caters specifically to AARP members, offering several features that uniquely accommodate this group.

The Hartford

For example, car insurance from The Hartford comes with a lifetime renewability feature, 12-month auto insurance rate protection, and personalized assistance after an accident.

The Hartford has also received the highest possible ratings for claim satisfaction, which is a crucial factor for shoppers to consider. This provider also offers optional new car replacement coverage that will replace your new car with one of the same make, model, and equipment in the event of a total loss.

Car Insurance Guide

As you shop for a new insurance policy, it’s crucial to understand the inner workings of the auto insurance industry. Read on to learn more about factors that influence car insurance rates, the different types of car insurance available, how to save money on car insurance premiums, and more.

What Does Car Insurance Cover?

Auto insurance companies provide three main types of coverage to their customers:

• Property coverage that protects in the event of damage to your property (e.g., damage to or theft of your car)
• Liability coverage that can protect you financially based on your legal responsibility to others for bodily injury or property damage
• Medical coverage that can kick in to cover the cost of treating injuries, rehabilitation, lost wages, and funeral expenses

While some types of car insurance are mandatory, others are optional. Different states set their own minimum coverage options, yet the majority require a combination of bodily injury liability coverage and property damage liability coverage.

Some states also require drivers to have a minimum level of uninsured or underinsured motorist coverage within their auto insurance policy.

Types of Car Insurance

If you’re curious about the types of auto insurance out there, here’s a quick rundown of the most common coverage levels:

• Liability Insurance: This type of auto insurance protection covers the other person’s expenses if you cause a car accident. There are two types of liability coverage: bodily injury and property damage.
• Personal Injury Protection (PIP): Personal injury protection pays the medical bills for you and your passengers after an accident. It also extends to times when you’re a passenger in someone else’s car or if you’re hit by a car while walking or biking.
• Collision Insurance: Collision insurance helps pay to repair or replace your vehicle after an accident. This can be damage caused by another car or an object, like a tree or fence.
• Comprehensive Insurance: Comprehensive insurance coverage reimburses for the repair or replacement of your vehicle after an incident that doesn’t involve another car.
• Uninsured/Underinsured Motorist Insurance: This type of protection covers you in instances where the driver who caused the accident doesn’t have car insurance, or at least doesn’t have enough of it.
• Gap Insurance: This optional insurance covers the difference between the amount your car is worth and the amount you still owe after a total loss.

How Much Car Insurance Do I Need?

Whether you already own a car or you’re still trying to decide how much car you can afford, it’s equally important to know how much car insurance you need.

You’re legally required to purchase coverage that meets your state’s minimum insurance requirements, yet you will likely want to purchase more insurance than your state requires.

After all, you may have sufficient assets to protect, and you will want to make sure your policy limits are enough to handle any accident or situation that comes your way.

You’ll also want to make sure you have sufficient coverage if you purchase a new vehicle, including gap insurance that can make you whole if you owe more than your car is worth.

Only you can decide how many car insurance coverages to purchase (and how many add-ons to include), but you should think long and hard about the consequences of having insufficient coverage.

After all, many states require bodily injury liability limits as low as $25,000, and we all know that bodily injury resulting from a car accident can cost many times that much.

If you’re a high-net-worth individual who wants additional protection, you can also look into purchasing an umbrella insurance policy. This type of insurance can protect you against liability claims after you exhaust the limits on your other insurance policies.

How to Find Cheaper Car Insurance Rates

The average car insurance policy costs over $2,542 a year in 2024. While there are many ways to secure the best cheap car insurance out there today, the most important step involves shopping around for a policy.

By comparing car insurance rates across multiple providers, you can see which company charges lower premiums for a similar amount of coverage.

Other steps you can take to lower the average cost of car insurance include:

• Check for Car Insurance Discounts: Some of the best car insurance companies offer driver discounts on anything from bundled policies to good credit, zero claims, theft protection devices, pay-in-full, a clean driving record, and more.
• Drive Less: The less your vehicle is on the road, the less likely you are to have an accident. Car insurance companies recognize this, and many offer discounts or overall cheaper rates for low-mileage drivers as a result. Some companies also offer policyholders discounts for being a good driver or have the option of choosing pay-how-you-drive insurance.
• Raise Your Deductible: Choosing a car insurance policy with a higher deductible can help you pay lower premiums throughout the year.
• Reduce Coverage on Older Cars: Where full coverage is smart for newer cars, liability insurance coverage may be a smarter move for older, paid-off models.
• Increase Your Credit Score: If you have poor credit (or even average credit), increasing your credit score can help you secure lower car insurance rates. Good credit can also help you avoid having to choose from the best bad credit car loans.
• Keep Insurance Costs in Mind as You Shop: While now may not be the best time to buy a car, you should keep car insurance premiums in mind as you look for a new vehicle.

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Factors That Influence Car Insurance Premiums

If you’re hoping to save on car insurance, you should find out which areas you have some control over. With that in mind, here are some of the major factors that can lead to higher or lower average rates overall.

• Driving Habits and Record: Your driving history will impact your car insurance rates more than almost anything else. You can take some proactive steps here, such as a defensive driving course.
• The Car You Drive: As we all know, some cars (and especially new cars) cost a lot more to insure. Whether you decide to lease or buy a car, the automobile you select can impact your premiums substantially.
• Age and Gender: Car insurance companies also formulate their rates based on the age and gender of covered drivers. Teens, for instance, are usually considered high-risk drivers.
• Credit History: Generally speaking, car insurance premiums are lower for drivers with good or excellent credit.
• Where You Live: Some states have higher car insurance premiums overall, and factors like the neighborhood you live in can also impact your rates.
• Mileage Driven: Many car insurance companies offer discounts for low-mileage drivers. Meanwhile, high-mileage drivers often have to pay more for coverage.
• Marital Status: Drivers who are married typically qualify for lower car insurance rates than single drivers.

How We Found the Best Car Insurance Companies

For the purpose of this ranking, we only selected car insurance companies with an ‘A’ or better for financial strength rating from A.M. Best. We also looked at providers who scored the best with J.D. Power for customer satisfaction, claims satisfaction, and their overall shopping experience. Other factors we considered include mobile app access, online quote processes, full coverage options, and insurance discounts offered.

Summary of the Best Car Insurance Companies November 2024

• Progressive: Best for Discounts
• Allstate: Best Overall User Experience
• GEICO: Best Mobile App
• Esurance: Best for Ridesharing
• State Farm: Best for Teen Drivers
• Liberty Mutual: Best for Customization
• USAA: Best for Military
• Amica Mutual: Best for Gap Insurance
• Auto-Owners Insurance: Best Agent Experience
• The Hartford: Best for Claims Satisfaction

Final Thoughts – 10 Best Car Insurance Companies of 2024

Selecting the right car insurance company involves careful consideration of multiple factors beyond just premiums. The top auto insurance providers of 2024 offer not only competitive pricing but also exceptional customer service, coverage options, and claims handling. 

While evaluating companies like Progressive, Allstate, GEICO, Esurance, State Farm, Liberty Mutual, USAA, Amica Mutual, Auto-Owners Insurance, and The Hartford, it’s essential to align their offerings with your unique needs and preferences. 

Factors like financial strength, discounts, coverage customization, and technology integration should guide your decision-making process as you aim to secure reliable and comprehensive car insurance.

The post 10 Best Car Insurance Companies of 2024 appeared first on Good Financial Cents®.

Those days were long gone. BUT… they are making a comeback!

According to the FDIC, the national average savings rate is paltry 0.43%. That means that the best high-interest savings accounts today are paying close to 20 times the national average!

Thanks to the low-rate environment, it’s not a surprise that for the past several years, my clients have been griping about how their savings accounts pay next to nothing, even from the best high-interest banks.

As painful as the interest situation is, switching to a top high-interest savings account to stash away some cash for a future financial goal or an unexpected emergency is a high-leverage money move you should make today.

Sneak Peek: Our Top 2 Best Online High Yield Savings Accounts

There are plenty of online banks that offer excellent terms. Don’t let your money sit in a savings account that’s going to be eaten by annual fees. You shouldn’t have to pay to let your money sit.

All the banks on my list are great places to stash your cash. Each can provide different benefits, covered below.

Ready to see current rates? Use our “live rates” tool for the absolute best rates in your area.

The 7 Best High-Interest Savings Accounts in 2024

1. Discover  – Best Overall

2. CIT Bank Savings – Great Ongoing Rates

3. Ally Bank – Best User Experience

4. BBVA Bank – Best Variety of Products

5. HSBC – Consistently High Rates

6. USAA – Best for Military

7. Capital One 360 – Best for Trustworthiness

8. Honorable Mentions

1. Discover Savings – Best Overall (Member, FDIC)

Get Started

• APY: 3.90% 
• Initial Deposit Minimum: $0

Turn Your Savings Into Something

If you’re looking for a bank to invest your savings in to earn very high interest rates, check out Discover Bank, Member, FDIC. The account requires no minimum balance to open and charges no monthly maintenance fees.

It also comes with 24/7 online access to your funds, online transfers to and from other banks, and direct deposits.

As is the case with savings accounts and money markets with all banks, withdrawals and outgoing transfers are limited to no more than six per monthly statement cycle.

2. CIT Bank Savings – Great Ongoing Interest Rates

Get Started

• Interest Rate: Up to 5.05%
• Initial Deposit Minimum: $100

Make The Smart Choice For Your Savings

CIT Bank is a great choice if you are looking for a bank to store some of your cash for a rainy day.

CIT Bank is in the upper tier of interest rates and is currently ahead of just about everyone else.

On top of their high-interest rate, they also offer a bonus rate tier for customers that have more than $5,000 saved with them.

CIT is also great because of its easy deposits. You can fund your account or add additional deposits via easy online transfer from your current bank, mailing in a check, or wire transfer. Read our full review.

3. Ally Bank – Best User Experience

Get Started

• APY: 4.25%
• Initial Deposit Minimum: $0

Save Smarter, Faster Than Ever

Ally Bank was built on the premise of getting rid of all the crazy fees that normal banks charge while giving customers great rates and great customer service.

I mean, seriously? How can you not love that? A bank that is fighting to end banks gouging customers will get my vote every time.

Ally also offers a robust set of products ranging from checking and savings to CDs, IRAs, and other investment options.

4. PNC Bank – Best Variety of Products

Get Started

• Interest Rate: 3.01%
• Initial Deposit Minimum: $25

Creating Opportunities

PNC (formerly BBVA) offers a wide variety of products and services, everything from small business loans to online savings accounts (because that’s why you are here, right?).

BBVA isn’t the most well-known bank on our list; however, they are one of the largest U.S. commercial banks based on deposit market share.

If you haven’t heard of PNC, you should take the time to familiarize yourself with their variety of products.

5. HSBC – High-Interest Rates, Low Minimums

Get Started

• Interest Rate: 3.45%
• Initial Account minimum: $1

The World’s Local Bank

HSBC offers consistently high-interest rates on its savings accounts. They also offer checking accounts,  loans and mortgages, investment and retirement accounts, and insurance.

Here’s what you get with an HSBC high-yield online savings account:

• High Interest. HSBC is dedicated to being competitive on interest rates to attract new clients.

• Low Minimums. $1 to open an online account for all savings, $1 minimum balance to receive APY on Everyday Savings.

• Easy Access. Many of the online banks only let you do transfers.

6. USAA – Best for Military

Get Started

• Initial Minimum Deposit: $25

We Know What It Means To Serve

*You must have a family member who is serving/has served in a branch of the military.

Aside from being an exceptionally reputable organization, as an online savings account, USAA offers several unique benefits that the other banks on this list don’t. You can get a HUGE variety of different products with USAA.

They offer just about any financial or insurance product you could ever need, and having all of your accounts and products in one place is an impressive advantage.

Here’s what you get with a USAA online savings account:

• Free Access to Virtually Any ATM. No fees for withdrawals at more than 60,000 “USAA-preferred” ATMs. They will also refund you the fees of any ATM that isn’t one of the preferred machines.

• Low Initial Deposit. Similar to some of the other accounts, USAA does require an initial deposit, but it’s only $25.

• No Fees. With a USAA savings account, you will not have any service fees or any fees if you transfer money to another bank.

If you have a family member who has ever served in the military, it’s worth checking out an online savings account with USAA.

7. Capital One 360 Savings Account – Trustworthy

Get Started

• Initial Minimum Deposit: $1

What’s In Your Wallet?

I’ve had an account with Capital One 360 Savings longer than I have with Ally. That’s because Capital One 360 (formerly ING Direct) was one of the first reputable online banks to exist.

Capital One 360 is easy to use and secure, and you can connect your account to your other accounts, including your Capital One Investing account.

Here’s What You Get With Capital One 360:

• Extremely Competitive Interest Rates.

• No Minimums. Like Ally, you won’t be hit with any minimum balance fees, and you can open an account with as little as $1.

• Easy Deposit Options. Opening an account is easy — you just link a checking account from another institution like you would with any national bank.

• Easy Access and Management. Capital One 360’s user interface is one of the best around. One of the unique things Capital One 360 offers is “sub-accounts,” where you can open up mini-accounts to hold your saving goal money.
  
  So you can have a main Savings Account but have mini-accounts for Vacation Fund, Emergency Fund, and so on.

• Other Account Options. They offer a robust set of accounts ranging from checking to savings to CDs, mortgages, and investing.

High-Interest Online Savings Accounts – Honorable Mentions

Oportun (Formerly Digit.co) – A New Option

Another interesting savings option is Digit.co (Digit.co was acquired by Oportun in 2021)

This is a bank that uses an algorithm to determine how much money to transfer from your checking account into savings every few days. By tracking your income and spending habits, Oportun can determine how much extra money should be going into savings.

Oportun promises that its automatic transfers won’t overdraw your account. The interest paid is very small, but it does exist. This is an account for people who want to save without needing to think about it.

Getting access to your money is easy; it’s all done through text. You text simple commands to change how much you save, to check your balance, and to withdraw to your own account.

American Express High-Yield Savings Account

Get Started

• Minimum Balance: $0

Do Not Live Life Without It

American Express, the credit card company that offers fantastic cashback, now has a banking arm that offers great interest on your account.

Rates are currently very competitive with some of the larger, well-known online banks. Account access is not as sophisticated as you see with other banks, but you don’t need that sophistication if you are just looking for a solid place to keep some of your cash.

If American Express Savings offered a full suite of financial products like mortgages and checking accounts on top of the savings account and CD, I would be more concerned about the website.

But this is a pretty basic product: deposit money, earn interest, and watch it grow.

AMEX also has a 36-month CD that you can drop your money into to earn a slightly higher rate of return. However, the difference is so small that I can’t recommend locking your funds up for 3 years.

Here’s what you get with AMEX’s High Yield Savings Account:

• Great Interest. To attract customers, American Express often has some of the highest interest rates available.

• Simple Options. You have two account options: high-yield savings and a certificate of deposit. Two simple choices rather than an array of confusing options.

• No Minimums. You don’t have a minimum balance requirement, and you don’t get hit with a fee for letting your balance get too low.

TIAA Bank – Great First-Year Interest Rates

TIAA Bank is one of the longest-standing online banks and consistently has some of the best introductory interest rates. Currently, their money market account is offering 4.75% for the first year. This gives them one of the strongest savings rates in the industry.

Here’s what you get with a TIAA online high-yield savings account:

• $5,000 Minimum Initial Deposit

• No Monthly Fees

• Basic Savings, CDs, and Checking Accounts Available

If you are looking for a solution to get competitive one-year interest rates, then TIAA Bank will be a good option for your needs.

Why You Need a High-Interest Savings Account

With so many options for storing your money and the low interest rates, a lot of my clients ask, “Why do I even need a savings account?” and honestly, that’s a great question.

The first reason is the obvious one – you get a slightly higher interest rate, and earning a little interest is better than no interest, right? But the interest you earn isn’t the only reason to find a good online savings account.

The other reason is a little more obvious: it forces you to save that money. Federal regulations limit the number of times that you can withdraw money from your account. If you can’t keep taking money out of the account, it’s going to encourage you to save.

There are hundreds of thousands of places where you can open up a savings account, but all of them basically break down into three categories: traditional savings accounts, online savings accounts, and kids savings accounts.

Many of these also offer a money market. If the MMA account offers a higher interest rate, then we will list that instead of the savings account option.

Saving for future purchases and expenses is one of the best things you can do to stabilize your financial situation.

Rather than using credit spending (and winding up in debt if you don’t pay off the balance each month), identifying your spending goals and saving up can help you buy the things you want — without ruining your financial future.

You should also understand that keeping an emergency fund available for a rainy day can be a good idea. What happens when the car needs repairs, or you need to replace the dryer? An emergency fund can protect you from the need to borrow in order to meet these unexpected expenses.

While a high-yield account would be nice, it’s important to recognize that your savings account isn’t meant to help you build wealth so you can fund your retirement (learn more about investing for retirement through a Roth IRA).

Rather than expecting high yields from your savings account, here’s how to think about it:

Liquidity

One of the biggest advantages of a savings account is liquidity. Because it’s cash, it’s instantly available for you to use. You don’t have to sell shares and what for the proceeds of the sale or jump through hoops to get your money. It’s available immediately.

This is what makes savings accounts ideal for an emergency fund. You know you can get to the money immediately if you need it. The liquidity also makes it great for accessing your money for a short-term investment goal.

You know that you will be able to pay with your savings account when you need to, or you can use the money to instantly pay off your credit card after you’ve used it to book your vacation (and earn points).

Safety

The other reason to incorporate a savings account into your financial strategy is so that you can keep the money safe. You don’t have to worry about losing your vacation money in the stock market when you keep it in a savings account.

You know the money is there when you need it for an emergency with your savings account. Plus, if your account is with a federally insured institution, you don’t have to worry about losing your money if the bank fails.

You can also think of your savings account as a way to help you save for short-term goals. As long as you incorporate a savings strategy along with an investing strategy that allows you to build wealth over time, you should have a balanced approach to your overall financial plan.

Whether you are saving up an emergency fund or just preparing to spend money on a nice vacation next year, you need a great savings account to hold your money.

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What to Look For in an Online Savings Account

There’s no need to let your money sit in an account that doesn’t pay any interest at all. That’s one of the worst things you can do with your money because the value of your money will slowly go down due to inflation.

You need to generate some interest to combat inflation just to maintain the spending power of the money you have. However, even a high-yield savings account is unlikely to beat inflation.

Then again, interest isn’t everything. There are other considerations as well when choosing from among the top savings accounts.

Interest – High Yield

For me, interest comes first. Generating interest helps protect your money from inflation. Even if inflation is really low, getting some small interest on the side will help you bolster your account over time.

Interest isn’t the only important factor, but it never hurts to have someone paying you to store your cash with them.

Don’t get too caught up in chasing yields, however. Most of the time, the difference between accounts isn’t enough to prompt you to move your money every time a bank comes out with a newer, higher yield.

Customer Service

Having great customer service is another key aspect of a great savings account. If you earn a little bit more interest at one bank, but the customer service is awful, you will probably regret it. I like to stick to firms that have solid reputations or that I’ve had previous experience with.

The accounts on this list all offer good customer service and a good user experience.

Access

You want easy access to your funds. If you have to jump through a lot of hoops to pull money out of your emergency fund during an unexpected setback, it defeats the purpose. Other considerations when you look at savings account access:

Do you have to go to a physical branch? Or can you transfer funds online using your smartphone? What about ATM access?

Can you withdraw money at ATMs across the country for free, or at least get reimbursed for the fees you do pay? Access can be a tiebreaker when you are comparing two very similar banks.

Types of Savings Accounts

There are a few different types of savings accounts, but don’t worry; the main idea is still the same.

Bank Savings Accounts

This is the traditional idea of a savings account at a physical bank. You can walk into any local branch of a bank and open up one of these savings accounts. Normally, these accounts have maintenance fees and low-interest rates.

Online Savings Accounts

These accounts work almost identically to a traditional savings account, except you manage the whole account strictly online. In most cases, online savings accounts offer slightly better interest rates because they have lower overhead costs.

Savings Account for the Kids

Maybe you want to open up a savings account for your kids; that’s a very good idea! Some banks have savings accounts specifically designed for kids, but don’t worry; you’ll have control over the account. It’s a great way to teach your children about managing money.

The Bottom Line – Finding the Best High-Interest Savings Accounts

What’s more exciting than online savings accounts these days? Not much, as online banking has revolutionized the market and brings convenience, security, and higher rates of interest.

Gone are the days when leaving your money in a passbook account was the only real viable option – now you can find some of the best high-yield savings accounts online, meaning you could be well on your way to achieving your financial goals in no time at all.

Researching online has never been easier or more rewarding!

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