4. Auto Collision Insurance
Auto collision insurance covers repairs to your car when you get into an accident. Sounds good, right? Except for one thing: this type of insurance usually comes with a deductible, which means you will have to pay out of pocket (up to $1,000) anyway for at least some of the damage to your vehicle.
That being said, if you have enough money in your emergency fund to cover these out-of-pocket expenses, there’s no need to shell out money for auto collision insurance.
If you live in an area where you can walk, bike or take public transportation to wherever you need to go, it might be a good idea to sell your car.
“The average person spends anywhere from $7,000 to $11,000 a year on their car! Getting rid of your car can be an easy way to cut your budget and household expenses significantly,” Making Sense of Cents wrote on its blog.
“You can save money on your car’s monthly payment, fuel, maintenance, repairs, insurance, property taxes and vehicle registration.”