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| Saving at the Pump |
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 aking ends meet in the household budget just got harder as gas prices shot above $2.00 per gallon. Many assume that they should go out and buy a more economical automobile, but that isn't always practical or possible. So, here are some tips on how to lower your fuel costs with the car you already have. |
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| It is important to understand some basics about how a car engine attains optimal performance. A car engine runs most efficiently when it is warm, and doesn't perform well when standing still. If you must stop for any period of time, shut the engine off. It may seem like idling won't use much gas, but idling is not "engine efficient," so it will use more gas than normal driving. Since the engine works better when it is warm, plan your driving to include various stops in one trip rather than making many trips. This prevents the engine from cooling down too much between uses, thus giving better gas mileage. Moreover, keeping the engine maintained can boost fuel economy by 20% and a clean air filter can add 10% to your car's efficiency. |
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| A car will not deliver its best fuel economy at rapid changes of speed. Hard acceleration or braking will waste a lot of fuel. Be smooth starting out and stopping, and try to keep a steady speed. Your car will operate most efficiently at around 60 miles per hour or less. Higher speeds cut down on fuel economy drastically. |
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| To further stretch your gasoline dollars, think about the load your auto is carrying. If you are hauling a few hundred pounds of tools or other gear in your trunk, it will cut into your car's efficiency. Ski racks, roof cargo containers, and bike racks affect the aerodynamic drag on your vehicle and increase fuel consumption. Running the air conditioner places an additional load on the engine and should be off whenever you don't need it. |
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| Make sure that you use the correct fuel in your auto as specified by the manufacturer. There is no benefit to using a different grade of fuel than what is recommended. Often the price of gasoline is cheaper at a filling station that is not a major brand name. The gasoline usually is identical regardless of the brand and often comes from the same supplier. |
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One of the easiest ways to help cut fuel costs is to keep your tires properly inflated. If they are under inflated, they will use more energy and cut efficiency by 1 percent for every 2 pounds of pressure the tires are low. Refer to your owner's manual for proper tire pressure and check it once a month when the tires are cold. These tips will help preserve the life of your car and will definitely save you money.  |
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 hen money is tight, the pressure often causes many of us to start a serious household budget for the first time. Usually, it is more practical to find ways to reduce spending than to try to increase income. When searching for money leaks, you should examine your insurance and determine if you are buying the right insurance for your situation. Often this will reveal that you are paying for hidden insurance you don't really need. |
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| Here are some insurance insights that could help you save a significant amount of money. |
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| First of all, insurance should do no more than cover those losses that you could not otherwise handle on your own. You should have term life insurance in an amount that would replace the portion of your income that your family depends on. You should have health insurance or a managed care plan for medical expenses. You should also have disability coverage in case you can't work. Beyond these essentials, you really only need auto insurance and a homeowner's policy. Many people are surprised at how many other policies they buy, almost without realizing it. Many of these policies can be an unnecessary drain on your budget.
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| One of the main culprits is mortgage life insurance. It can be expensive - sometimes by as much as five times more than term life insurance, which may provide the same benefit. If you elect to purchase mortgage life insurance, remember, the amount of coverage can be reduced as the loan principal is reduced, so the cost of the insurance can be lowered with time. |
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| Another nearly hidden insurance cost is on credit card loss. You may feel frightened into accepting this coverage. However, once you report the loss or theft of your credit card, you have no further responsibility for unauthorized charges. Furthermore, you will only be responsible for $50 per stolen card. So, this is one type of insurance to decline, as is insurance for identity theft. Identity theft insurance generally covers only the expenses and legal costs to repair your credit but not the actual losses due to the theft. If you do not want to pay for this insurance, it is best to check your credit report as maintained by the three main reporting agencies often so that you can detect anything that is unauthorized or that may be occurring without your knowledge. |
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| Another insurance that is probably unnecessary is car rental insurance. Most often your auto policy or your credit cards provide this coverage. Be sure and check with your insurance provider to make sure, but you can almost always decline this coverage. |
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| Another travel-related insurance waste is flight insurance. Your term life covers this if you die and your health insurance covers any medical costs. This type of insurance is very similar to accidental death insurance, which pays your beneficiaries only if you die in an accident. Since only 5 percent of all deaths are accidental, it is far wiser to depend on term life insurance which pays regardless of the cause of death. |
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| It is common for specialty companies to try to sell extra insurance that is already covered by other policies. Cancer insurance is one example. Your health insurance probably already covers the costs of this care and may even cover outpatient care that is not included in most cancer insurance policies. |
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| When you get a loan, you are usually offered a life insurance policy to guarantee the re-payment of the loan. Before accepting this insurance, it is wise to compare its cost to the same amount of additional term life insurance necessary to pay off the loan. The cost of term life is typically far cheaper. Another loan-related insurance is offered to cover loan installments if you become disabled and unable to make your loan payments. You may be able to increase your disability insurance to include this coverage for a lower cost than that offered by the lending institution. |
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| Lenders may also suggest unemployment insurance on credit card balances. These policies typically make minimum payments for 6 months to a year if you lose your job, but generally provide no such benefit if you quit your job. If you have the extra resources, you may be able to obtain the same level of comfort by building a savings account to cover up to 6 months of minimum credit card and other loan payments. That way, even if you never lose your job, you still have your money in the bank! |
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