My Insurance Renewal, interest free remedy to paying up front.

Discussion in 'Ask An Owner Operator' started by bigguns, Apr 25, 2019.

  1. bigguns

    bigguns Road Train Member

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    My first year premium as a new entrant was close to $17k. This year it came in at $14k. If I opted to
    pay in full, the premium would be $12k. I could borrow a big portion through the bank and still save large of the amount of the discount. Next I called the credit card company that I primarily use. I explained the situation. They gave me 0% for 12 months on my card. No matter how much I use the card, so long as it is paid off in full by the 4th of Jun. 2020 I won’t pay any interest. So I got to beat the insurance company at one of their own games. If everything went south tomorrow I have the money to pay off the card. So no interest on 12 grand, I’ll take it.
     
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  3. PE_T

    PE_T Road Train Member

    The problem with 0% interest credit cards is that they have very clear statistics that this technique will turn out to their favor overall whether in this credit card or in a future business transaction. So it’s all good if you can really say for sure that you will have the money to repay it.

    I personally do not like consolidating loans even though it looks like a lower payment in paper. My approach is to grab my most expensive loan based on a daily interest rate charge and tackle it. That’s how I save money. There is also another approach that some know as the snowball method. You grab your lowest loan, say $500, and pay that one first. Then you go onto the next one, say, $2,000, and so on.
     
  4. Rideandrepair

    Rideandrepair Road Train Member

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    Good for you, using the 0 %, My Truck Ins. Is 25% dn and 10 pymts. No pymt in Dec or Jan, which works well, till renewel time, Lol, then it’s a bill for 25% plus 1 pymt. Either way it’s always a tight time of year, this yr especially. Credit cards can be a good tool especially at 0%. I’ve done some things that on the surface sound crazy with 0 % cards. But cheap money is hard to find. And it doesn’t get any cheaper than free. Smart move.
     
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  5. AlexanderK

    AlexanderK Light Load Member

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    Many credit cards offer 0% for 12-18 months when you open them. I’m not exactly sure how would they benefit from it, however I’ve got out of financial difficulties couple times with their promotional offers such as 0% APR and/or balance transfers and by paying remaining balance in last days. That’s would mean I’ve used quick free loan for 12-18 months. It will lower your credit score overall though. Trucking has great cash flow potential. If you know for sure you’ll be driving in next 12 months go for it. Even you not sure, insurance company suppose to refund you unused portion in case you decide to stop.
     
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  6. Ridgeline

    Ridgeline Road Train Member

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    You need to borrow money to pay for your next insurance cycle?
     
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  7. bigguns

    bigguns Road Train Member

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    I don't know of anyone who pays their insurance up front. Anyone who can, I would be happy for.

    I pay for my insurance through the year, every year. I expect to do the same this year but without any interest. I will let you know how I made out next April or May.

    My credit score doesn't concern me at this point as it is very high for an O/O or anyone for that matter.

    I use credit cards as a business tool. I don't let them get a strangle hold on me. All my fuel goes on one card. I pay it all with one payment at the end of the cycle. The same for parts.

    I do not use credit cards for personal expenses.
     
  8. Ridgeline

    Ridgeline Road Train Member

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    I get where YOU are coming from but the hard truth is most people are not disciplined enough to pay the card off. This is why owners need to pay their little funds first, then themselves.p but most have it backwards.
     
  9. bigguns

    bigguns Road Train Member

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    Believe I am highly disciplined. For most people what I do would not work. In 2016-2017 I was out of work for 3 1/2 months. It was a kick in the seat of my pants but I stayed paid up on everything.
     
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  10. TallJoe

    TallJoe Road Train Member

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    Not every insurance carrier necessarily charges interests. For example, Northland, a very good insurance carrier rated A+, has only 5 dol fee for paying each installment - $50 dol total more vs not paying it up front. Maybe that depends on an agent too. My first year insurance was at least 2K higher due to financing - a different agent.
     
  11. bigguns

    bigguns Road Train Member

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    I can assure you Northland has interest built in. At least it was through the agency we had.
     
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