What's more important , Insurance payment or Car payment?

Question

My car is soon going into repossesion.
they gave me a dead line 23rd , and i am desperately looking for a job . anyway , i have 200 dollars in my acct. I was thinking of paying the 200 dollars for my insurance. which i was lever late for paying . and then hope that i get a job and pay the 425 dollars which i am 30 days past due , payment on the 23rd..

do you think I should just not pay the insurance this month , and
let them bill me for a fine , than let my car go into repossesment ?

if i dn't pay for it , i will have atleast 200 in my bank and then I could hopefully ask my mom ( which i dn't wanna do ) for the rest ( another 225 , total 425 for the CAR ) till i get a paycheck .

Answer 1

Car gets repossessed if you don't pay car payment. If you don't pay your insurance at least you'll still have a car. Just don't drive it until you can afford to insure it again.

Answer 2

If your insurance company drops you your rates will automatically go up because any record of non-payment puts you into a risk category.

You can call them and ask if you can pay a 3 month payment (if you're on a 6 month schedule) which will reduce the cost down and then pay again in 3 months. If you're paying monthy, do the monthly payment. Insurance companies have variable billing--you can set it up to be monthly, every two months, three, etc. so there's some leeway here if you can get them to accept it that way.

Call your car payment place and ask if you can do a lower payment or have an extension, then stick to it so you don't get a black mark there. It may or may not go on your credit report, but one late payment will be far less of a problem than no payment to the insurance company!

Answer 3

I would put the $200 toward the car payment. Yes, you'll be late with your car insurance, and you'll have to pay a late fee, but at least you'll still have the car.

Considering we are already at the 10th, I don't see you getting a job and a paycheck in order to have the payment to the company that you financed your car through by the 23rd. Even if you've got to put your pride in your pocket, I suggest asking your mom and let her know that you'll pay her from your first pay. Work hard on landing a job. You need that car in order to open up more doors to finding a job.

You can also look into whatever quick fix you can think of to make the money quickly. Do you have anything of value that you can sell? Try temporary agencies and stress the importance of finding a temp job ASAP.

Good Luck.

Answer 4

Be brave, ask your mom. Then pay her back as soon as possible and with interest if you can. This will be a nice way to say "thank you". Or take her out to a nice restaurant when you have more money.

I'm a mother and I would help out my child. I might fuss a little bit, but I would help.

Both are important. You need the insurance.

If you miss a payment on your car it will mess up your credit rating for years to come. You will have a hard time buying another car, house, get credit cards, or etc.

Answer 5

I have never heard of a 30 day repossesment. I have been 3 months behind and the company was happy to work with me. Did you ask if you can skip a payment and add it to the end of the loan? Mine let me skip 2 payments(more of an extension)they added them to the length of the loan. Insurance..$200 a month is high...Are you high risk? You can usually skip a month...you receive a notice in the mail when you policy is going to expire. The only thing with insurance is if you allow it to expire, when you go to get another policy..you are considered high risk
and your rates skyrocket. How long is your car loan for? Is it a new car? By any chance is the loan with
GMAC? Anyway, if you need any more tips email me.
But, check into putting a payment on the end of the loan...if they reposess the car they will lose money. They stand to make more money if you can put a payment or two on the end of the loan.
Good luck finding work.

Answer 6

Goodness! You have a $425 car payment and $200 for insurance! I think you need to get current on your payments and find a less expensive car. If you need to ask for help, you shouldn't be owning this car.

Answer 7

That's a tough decision. ON the one hand if you don't pay your car payment, you won't have a car and no need for the insurance. But if you don't pay your insurance, then most companies will reposess the car anyway. I guess the best thing to do is whichever is the furtherest behind.

Answer 8

If you don't pay your insurance, they will drop your coverage immediately, and may not insure you again. Also if you get into an accident or are caught driving without the insurance, you're in deep dog dodo. Pay your insurance, and put anything else you can toward your car. If you talk to them and tell them you are sending something and are hoping to get a pay check soon, they may back off a bit longer. If your mom will help now and let you pay her back when you can, go for that instead of loosing your car or ins.

Answer 9

Car payment

Answer 10

What your friend is doing is illegal. He has a legal obligation to keep his financed car in his possession until the loan is paid in full and the lender releases the title. No verbal or written agreement can override his obligation, so any agreement between the two of you is invalid and unenforceable. You do not own the car and cannot insure it, the insurance would have to remain in his name. If you got in a wreck and his insurance found out that the car wasn't in his possession then most likely the coverage would be void. If the lender finds out he sublet his car, they can repossess it and you have no recourse. This is a bad idea all around. The correct way to do this is for you to get a loan in an amount sufficient to pay off his loan and you buy the car from him.