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Auto Insurance – Yikes!

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When I had my 1997 Honda Civic, and with an excess of points from my “wild and crazy” days that I’m waiting to drop off my record, my auto insurance premium was already high. I don’t have the policy in front of me, but it was around $3,400 per year. In June, I purchased a new 2004 Honda Civic, and for a while had two cars on my policy which resulted in a slight increase. Since selling the 1997 Civic and dropping it from my policy, my premium shot up to about $4,500. (Again, I don’t have the numbers handy.)

Due to their strange way of managing their insurance year, I now have due two payments of about $1,000 over the next two months. This is quite a bit of a disappointment, but I have little choice other than to pay. So, I’m dipping into my cash reserve, which is what it’s there for, I suppose. I had assumed that with the insurance company’s payment plan, I’d have a full twelve months to pay what is due in a year. I planned for the increase — I just didn’t plan for their strange way of billing.

Forgive me if I’m financially unhappy for the rest of the year. I’ll try to focus on the positive: I convinced my landlord not to raise my rent when I renew at the end of this month. There was a planned increase of $34 that I managed to wipe out. Unfortunately it’s not a full $1,000 per month savings to counteract the effect of the car insurance increase.

Updated March 5, 2014 and originally published October 6, 2004. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

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