Roadside assistance typically covers

• Towing
• Changing flat tire
• Fuel delivery services/electric charging
• Locksmith services
• Jump starts in case your battery goes down
• Winching

Where can you buy roadside assistance services?

You can buy roadside assistance through any of the following providers.

• Membership in organizations (such as AAA, Better World Club, etc.)
• Insurance companies
• Credit card companies
• Cell phone providers
• Car manufacturers and tire companies

Alternatives to AAA Roadside Assistance

Better World Club

Better World Club offers nationwide roadside assistance at competitive prices. In addition to cars, its services cover bicycles.  Better World Club will match AAA’s prices. The club’s roadside assistance services are 100% carbon neutral. The club donates to several environmental causes and advocates sustainable transportation policy.

Good Sam

Good Sam provides roadside assistance for cars and RVs. While Good Sam provides roadside assistance for all vehicles, it specializes in providing assistance to RVs. While other providers have limitations on the number of miles your vehicle will be towed, Good Sam offers unlimited towing to the nearest service center. Another perk with Good Sam is that household members are covered for free. Good Sam offers three tiers of service – Standard, Platinum, and Platinum Complete. You can check out the prices here. Good Sam offers its members discounts at AAMCO transmission centers.

Travelers

Travelers offers optional roadside assistance coverage for its insurance customers. Travelers offers two tiers of roadside assistance – basic and premier. Premier roadside assistance provides 100 miles of towing while basic roadside assistance only provides 15 miles of coverage. The Premier plan also provides trip insurance coverage and personal property coverage.

Progressive

Progressive insurance customers can add optional roadside assistance coverage. Progressive roadside assistance is provided by Agero, a well-known company that works with dealers, insurance providers, and motor clubs. If you have auto insurance through Progressive, you easily add roadside assistance services to your policy.

Allstate

Allstate offers two options to buy roadside assistance – as an add-on to the auto insurance policy and a subscription plan (Allstate Motor Club) which does not require purchasing insurance from Allstate. Allstate also offers pay-per-use roadside services irrespective of insurance provider.

Allstate offers two plans – Roadside Advantage and Roadside Elite. Both plans offer towing services, jump starts, fuel delivery, lockout service, tire change, and trip insurance. The Elite plan offers towing up $250 per tow (Advantage plan towing is $150 value per tow), 5 rescues per year (vs 3 for Advantage plan), and RV coverage.

Roadside Dispatch

If you don’t want to sign up for an annual contract, Roadside Dispatch can be a good option. You only pay for the service calls you make. It costs about $70 per service call. Service is available throughout the US. The number of services offered is limited compared to AAA but it covers towing, changing tires, winching, fuel delivery, battery jumping and lockout service.

What to look for when buying roadside assistance

Cost

• How much does the plan cost?
• Is the cost one time or do you have to pay every time you use the service?
• Is there an additional cost to add family members?

How many times a year you can use the service?

How many times you can use roadside assistance per year varies by plan.  Some plans offer service 3 times, others offer more. Choose a plan based on how old your car is and your service needs.

How long can you tow the car?

Some plans will tow your car for 10 to 15 miles while others will tow for 100 miles. Choose a plan that fits your needs.

Is it an insurance claim? (When buying roadside assistance coverage from the insurance company

Every call you make to get roadside assistance is considered a claim by the insurance company. But not all claims raise premiums. In general, roadside assistance does not increase auto insurance premiums. But there are exceptions. It’s best to keep insurance and roadside assistance separate if possible.

Here are the options you should consider when you want to get out of a car lease.

Transfer lease to a third party

You can transfer the remaining lease to a third party – a friend, a family member, or even someone you don’t know. Websites such as Swap A Lease or Lease Trader allow you to transfer the lease.

You have to provide incentives to the new leasee to take over the lease – lower payment for the new leasee than what you are paying. Depending on the mileage and how much you put down, it could cost you a few hundred to a few thousand dollars.

The person taking over the lease is responsible for making remaining lease payments.  There may be some additional costs involved with this option – lease transfer fees, new registration fees, etc. Note that in most cases, you are still on the contact and will be liable if the new leasee stops making payment.

Sell the vehicle

If you are leasing a car, you have the option to buy the car at any time. You need to tall the leasing company and ask for the payoff or buyout amount. The payoff amount will include a penalty and the remaining depreciation cost.

If you buy the car and sell it privately to a third party, you may be liable for taxes. But you can sell it to the dealer without paying taxes but the catch is that the dealer is likely to pay you less for the car.  So do the math and understand the tax implications of selling your car.

Return the vehicle and pay penalties

You can return the vehicle to the leasing company and pay the penalties. This is one of the worst options you can take. You will not only be paying penalties but also the remaining depreciation of the vehicle.

You will get the lowest value for your vehicle if you pursue this option.  The leasing company will sell the vehicle at a wholesale auction and reduce your payout by the realized value of the sale. You are better off buying the vehicle from the leasing company and selling it yourself.

Call the leasing company and ask for help

If you are unable to make lease payments, call your leasing company and explain your situation.  You may be able to get some payment relief.  You are still responsible for your payments – you can make the payments later.

If you default on your lease, the leasing company incurs extra expenses. So they may be willing to work with you.

Default on lease payments

If you go this route, you will take a big hit to your credit for 7 to 10 years. You are likely also likely to get sued for defaulting on your payments.

There are long term implications to your credit if you take this route. Exhaust all your options before defaulting on your payments.

How to find places that offer free air?

Find Places That Offer Free Air  at FreeAirPump.com

You can go to freeairpump.com, put in your zip code or address, and find the places near you that offer free air.

I have had a good experience with this website. But it is worth noting that the data on this website is user-generated, so it is not definitive but works most of the time.

Regional Gas Stations

Regional gas stations like QuikTrip and Wawa offer free gas.  Even if your gas station doesn’t offer free air, if you are a customer who purchased gas, the attendant will be happy to turn the air on for you if you ask.

Discount Tire

Discount Tire offers free air whether you have been a customer in the past or not.

Dealerships

Many dealerships also complimentary air for your tires.

Oil change places

If you regularly get oil changes at a place such as Jiffy Lube or Valvoline, they will be happy to inflate your tire for free.

Free Air in Some States By Law

California and Vermont require gas stations to offer free air. Even if the machine charges you, you can go inside and ask for a refund in those states.

Benefits of properly inflating tires

• Properly inflated tires improve gas mileage and save money
• Inflating the tires to the recommended pressure increases safety.
  • A properly inflated tire is less likely to fail at high speeds
  • Underinflated tires skid on wet surfaces and increase your stopping distance
• Properly inflated tires wear more evenly than underinflated tires and hence will last longer

Consider getting a portable air compressor and gauge

If you don’t like going to a gas station or a tire place to get air, get a digital gauge and a portable air compressor.  They will pay for themselves very quickly.

In addition to inflating your tire, the portable compressor will also come in handy when you have to inflate soccer or basketballs

Use a bike pump

You can pump air into your vehicle’s tires using a bike pump. It may take a few minutes but is a cheap way to do it.

Where to find the recommended pressure for your tire?

The recommended tire pressure for your vehicle is usually founded on the sticker in the driver’s side door job. If you don’t see it there, look for it in the glove box or in the owner’s manual.

Do not use the maximum pressure printed on the tire – that is the maximum pressure that your tire can take.  If you try to inflate your tires to that pressure, the tire may blow out.

Bottom Line

Properly inflating your tires increases the mileage of your vehicle, saves money, and keeps you safe.  There are several places that will inflate your tires for free.  But having a portable compressor and pressure gauge is an investment that will pay off easily.

Check Engine Light

When the Check Engine light comes on, it means that the vehicle’s engine has detected something wrong. It could be something simple such as a faulty gas cap or something serious such as a misfiring engine.

You can connect an OBD-II reader or scanner to a connector below the steering column to get a code.  The code tells you what the problem is.

OBD-II: On-Board Diagnostics System (Version 2)

Federal law requires all vehicles purchased in the US after 1996 to have an On-Board Diagnostic System II (II refers to version 2 of the system).  OBD – II can diagnose vehicle problems through a diagnostic computer.  Problems detected by the OBD-II include simple things like forgetting to replace the gas cap tightly to complicated problems such as powertrains, emission, or other vehicle problems.

When the “Check Engine” light comes on, you can connect a device called the OBD-II reader or scanner to read the code. You can find the list of codes for OBD-II .

Free Diagnostics at Auto Parts Stores

Honest mechanics will run a free diagnostics for you.  But those are rare to find.  In most cases, you have to pay to get your diagnostics done.

Auto parts stores like Autozone, NAPA, or Advance Auto Parts will run diagnostics for free.   These stores target DIY’ers and hope that if they diagnose the problem, the car owner will buy parts from them to fix the problem.  Most auto parts stores also rent basic tools for free.  If you are someone who can fix minor problems on your own, it can save you a lot of money.

In some states, these auto-parts stores will also clear the code for you. Clearing the code does not fix the underlying problem.  In most cases, the Check Engine light will come back on again after you drive for a few minutes.

You can even buy your own OBD-II scanner for around $20.  It will come in handy when the Check Engine light comes on in your car.  The OBD scanner pays for itself the first time you use it.

Most Common Problems

The most common problem when you see a Check Engine light is a loose gas cap.  Tighten the gas cap and in a few minutes, the light should go off.

If you didn’t have a loose gas cap, it’s best to run the OBD-II scanner to find out what’s wrong.

Bottom Line

When the check engine light comes, most people fear the worst.  Mechanics and dealerships charge around $80 just to run diagnostics.  Auto parts stores such as Autozone, NAPA, or Advance Auto Parts will run diagnostics for free saving you money.  You can also buy own OBD-II scanners and find out about the problem using the list of OBD-II codes.

Discussion

Has the Check Engine light come on in your car?  What did you learn?  How did you fix the problem?

]]> https://mymoneyplanet.com/free-check-engine-light-diagnosis/feed/ 0 https://mymoneyplanet.com/should-you-switch-to-pay-per-mile-car-insurance/ https://mymoneyplanet.com/should-you-switch-to-pay-per-mile-car-insurance/#respond Sun, 29 Mar 2020 03:21:20 +0000 https://mymoneyplanet.com/?p=475 Should You Switch To Pay-Per-Mile Car Insurance? Read More »

Though the book doesn’t provide a step by step program on becoming a millionaire, the stories in the book give the reader how he or she can become a millionaire as well.

The book shows that millionaires systematically saved and invested their way to wealth.  They don’t live in mansions or drive flashy cars but are instead frugal people who live below their means.

The millionaires don’t chase status and live in modest neighborhoods.  They rarely sell their investments, preferring to hold them for long term gain.

UAWs and PAWs

The term Under Accumulator of Wealth (UAW) is used to represent people who have low wealth relative to their income.  The authors note that the UAW style is based more on consumption than savings of income.

Prodigious Accumulators of Wealth (PAW), on the other hand, accumulate a good amount of money relative to their income.  Many millionaires the authors studied were PAWs.

The authors introduce a formula to define an Average Accumulator of Wealth (AAW).  AAW is calculated as follows:

Net Worth = (Age x Current Total Income From All Sources)/10

Let’s take a 50-year old doctor who earns $250,000.  If his net worth as calculated by the formula above is below $1.5 million, he is considered a UAW.  On the other hand, if someone making just $50,000 a year has a net worth more than $250,000, he is considered a PAW.

Critics of the authors’ formula have argued that the formula ignores the fact that older people benefit from their assets compounding whereas younger people don’t.

Here are the common traits shared by the millionaires the authors studied.

Millionaires live below their means.

This makes logical sense.  You cannot accumulate great wealth if you spend more than what you have.

They spend their time and money in ways leading to wealth.

Millionaires spent time planning their investments.  They made it a priority to invest their time in managing their investments before spending time on other things.

They do not worry about social status.  They preferred financial independence instead.

The book notes that many doctors and lawyers have low wealth relative to their income because they are trying to keep up with their peers.  Millionaires, on the other hand, don’t try to keep up with the Joneses.

They did not receive financial assistance from their parents.

They accumulated wealth on their own.  They rarely inherited large amounts of money.  This gave them the incentive to save and invest their assets over time.

They don’t financially support their children.

Not financially supporting grown-up kids frees up money for savings and investments.  This, in turn, helps them accumulate wealth to become millionaires.

They work in the right jobs. Many millionaires work for themselves

Many millionaires worked in jobs that allowed them to grow earnings over time.  Many of them owned businesses, which allowed them to minimize taxes and accumulate assets.

Conclusion

Millionaire Next Door is a classic personal finance book with interesting anecdotes from millionaires.  The book breaks down the habits that helped them accumulate wealth over the years.  It’s recommended reading for anyone looking to build good financial habits.

]]> https://mymoneyplanet.com/ideas-from-the-the-millionaire-next-door/feed/ 0 https://mymoneyplanet.com/vanpools-great-way-to-save-time-and-money-and-reduce-stress/ https://mymoneyplanet.com/vanpools-great-way-to-save-time-and-money-and-reduce-stress/#respond Wed, 19 Feb 2020 16:25:19 +0000 https://mymoneyplanet.com/?p=270 VanPools – Great Way To Save Time And Money, And Reduce Stress Read More »

But there are certain things that are within our control.  By controlling what we can, we can make the car buying process less painful.

Here are the common financial mistakes people make when buying a car.

Failing To Plan Properly

The first thing you need to be absolutely certain when buying a car is that you will own the vehicle for at least five years.  Ideally, you will own the vehicle much longer to get the most out of your investment.

You need to think ahead when we buy a vehicle.  If you are expecting to have a baby, plan ahead, and buy the vehicle you would need to safely travel with the child.  If you are unsure about your circumstances, wait until your situation clears up before committing to a car purchase.

The worst thing you can do financially is to buy a car, and sell it a few years later, only to buy another one.  First, because the car depreciates a lot in the first couple of years, your trade-in value will be fairly low relative to what you paid for the car.  And then, you would have to start the car buying process all over again to buy another vehicle.

Do you need a car or a truck? Or an SUV perhaps? Think through if the vehicle you are planning to buy will work for you in 5 years or so.

Too Much Focus On the Price

Most car buyers simply spend too much time on the purchase price.  Sure, it’s important.  Between huge markups, and shady dealer practices buyers need to do their research on the price to get a good deal on a car.  But there are several other things you should be focusing on as well.

What optional features do you need?
What financing terms will work for you?
Does the car have the safety features you need?
Have you considered the mileage of the car?  How much will you spend on gas every month?

Not Considering Total Cost of Ownership

Owning a car for 7 to 10 years involves a lot of costs.  You should consider the cost of insurance, repairs, and maintenance. You need to look into the reliability and safety of the car.

Consider reading reviews from Edmunds.com or Consumer Reports to understand the total cost of ownership of the car.  Some popular vehicles on the road have very poor reliability metrics and will be a financial pain to own and maintain beyond the initial warranty period.

Buying A New Car When A Used One Will Do

Depending on your circumstances, you may not need a new car.  A used car will do just fine for a few years.

There are some people who only buy gently used cars.  It may actually be a very good financial decision because the first owner paid for the initial depreciation of the car, and the used car will still be under warranty.

Driving a new car may be flashy.  But it wears off after a few weeks as you get used to the car. Buy a car that makes financial sense, and not the one you would like to show off.

Bottom Line

Buying a new car is an important financial decision. To get the most of your new car, you will need to own it for a long time. In addition to focusing on the price, consider other factors that are important to you when buying a car, including the total cost of ownership.  Proper planning is key to getting the right vehicle for you.

J.D Power surveyed 32,952 original owners of 2016 model-year vehicles after three years of ownership. The study measured vehicle problems across 177 areas grouped into 8 major vehicle categories. The survey measured the number of problems per hundred vehicles (PP100) during the last 12 months by original owners of three-year-old vehicles. Lower the score, the more reliable the vehicle.

Overall, the dependability of vehicles improved 6 PP100 over 2018 numbers, a lower rate of improvement compared to prior years.  In 2018, dependability improved 14 PP100 compared to 2017.

Chrysler was the most improved brand with a reduction of 65 PP100 since 2018.  MINI and Subaru also showed substantial improvements year over year.

Vehicles with strong dependability scores retain their values better.  This bodes well for the used-vehicle market where these vehicles will be in high demand.

Fiat, Land Rover, Volvo, Dodge, and Ram came in with the worst dependability ratings.  Luxury brand Acura was also close to the bottom of the pack, whereas its parent Company Honda ranked below the median of US carmakers.

The survey revealed that while dependability increased in 2019, automakers are struggling with issues related to voice recognition, transmission shifts, and battery failures. But the good news for consumers is that dependability continues to increase.

Toyota Camry topped the mid-size car category, and the BMW 5 series took the top spot in the mid-size premium category.  Volkswagen ranked first among small SUVs.