While price is important to many people, you might also want to consider other factors when choosing an auto insurance company. The best car insurance policy looks different for everyone and will depend on your needs, lifestyle and financial responsibilities. To see which car insurance company might provide the best fit and options for you, here are some steps you can take.
Consider minimum insurance requirements in California
California requires drivers to carry at least minimum levels of liability insurance coverage on their vehicles to drive legally in the state. This includes the required minimum amounts of bodily injury liability and property damage liability coverage. According to the California Department of Motor Vehicles, all California motorists must carry at least:
$15,000 in bodily injury liability coverage per person
$30,000 in bodily injury liability coverage per accident
$5,000 in property damage liability per accident
California also requires that insurance companies offer you uninsured and underinsured motorist bodily injury coverage, along with uninsured motorist property damage, but you can decline in writing if you do not want to have them. Understanding California’s car insurance laws can help you understand if you need additional coverage or higher limits.
Consider lender requirements
If you finance or lease your vehicle, you may need to purchase a car insurance policy that complies with your financial institution’s requirements. For example, collision and comprehensive insurance are typically optional coverage types, but if your car is financed, most lenders will require you to purchase them. This is commonly known as a “full coverage” policy. Your financial institution may also require you to purchase higher liability limits, especially if you lease your vehicle. You might also want to consider gap insurance, which is designed to pay the difference between your vehicle’s actual cash value and the loan or lease amount if your car is totaled or stolen. According to the Insurance Information Institute (Triple-I), it is typically cheaper to purchase gap insurance from your insurer instead of from an auto dealer.
Consider your individual needs
Every driver has a different set of auto insurance considerations. You might live in an area where traffic and tourism are heavy, like Los Angeles or San Francisco, have a teen driver to insure or maybe have a few accidents or moving violations on your driving record. Based on your unique needs, it could make sense to have collision coverage and comprehensive coverage, uninsured motorist coverage or towing and rental reimbursement. Understanding your individual coverage needs might help you narrow down the companies you request quotes from. Households with teen drivers might look for companies with specialized young driver discounts, for example.
The average cost of car insurance in New Jersey is $1,754 per year for full coverage, according to 2022 data obtained from Quadrant Information Services. Minimum coverage costs an average of $782 each year. This means that New Jersey’s minimum coverage is above the national average of $622, while full coverage is well below the national average of $2,014. The higher minimum rate may be related to the high number of urban areas there are in the state, where you will often see elevated rates to reflect the increased possibility of accidents. Additionally, New Jersey has just implemented Phase I of a two-phased approach to raising the minimum levels of liability coverage required to drive legally in the state. You should keep in mind that your rates will likely differ from the averages based on your individual rating factors.
Also, compared to the rates of nearby states, New Jersey’s premiums come in below average. Take Pennsylvania, for instance. Although Pennsylvania and New Jersey are neighbors, the average cost for a full coverage policy in Pennsylvania is $2,040 per year, more than $200 higher than New Jersey. New York, one of the most expensive states for car insurance in the country, is even higher, averaging a whopping $3,139 annually for full coverage.
How to find the best car insurance in New Jersey
Drivers in New Jersey must maintain continuous coverage to avoid potential hefty fines and suspensions to their driver’s licenses and vehicle registrations. In addition to complying with the law, a sufficient car insurance policy could provide essential financial protection if you are involved in a car accident. Since every driver has their own needs when it comes to auto insurance, no one company will be best for all. For this reason, it may be a good idea to shop around and request quotes from multiple companies. We’ve compiled some things you might want to keep in mind while you’re shopping so that you can find auto insurance in New Jersey that fits your needs.
Consider minimum insurance requirements in New Jersey
New Jersey car insurance laws are unique, and it is a no-fault state. There are two options for minimum required coverage: the basic policy and the standard policy. Basic policies include just a required level of property damage liability per accident and personal injury protection (PIP) coverage and come with the option to purchase bodily injury liability coverage. If you choose a basic policy, your ability to add other coverage types could be limited.
Standard policies include bodily injury liability, property damage liability and PIP, and also come with a broader range of optional endorsements to choose from. Understanding New Jersey’s car insurance laws could help you decide if you need to purchase more coverage than just the minimum required. In 2023 and again in 2026, the minimum liability levels required to drive legally are increasing, which will likely mean a corresponding increase in your premium if you opt for minimum coverage car insurance.
Consider lender requirements
Drivers with loans or leases may have additional car insurance requirements to consider. Financing and leasing companies want financial protection for their asset (your vehicle) until it is paid off and in your name. They often do this by imposing insurance requirements that you must meet to comply with your financing or leasing agreement. To satisfy lender requirements, you may need to have full coverage insurance, which includes comprehensive coverage and collision coverage on your car insurance. Although not required, you could also consider gap insurance, which helps pay the difference between your loan balance and your vehicle’s cash value if your car is totaled.
Consider your individual needs
Auto insurance is a highly personalized product. Each driver has their own needs, but you might find that not every company offers what you are looking for. If you have a youthful driver in your home, you may need to tailor your search toward companies that offer cheap car insurance rates for teens. Those who work remotely may find savings by purchasing pay-per-mile insurance. If you drive for a ridesharing company like Uber or Lyft, you may need to find a company that offers rideshare insurance. Before you shop, it can be helpful to list your priorities and use this as a guide while requesting car insurance quotes.
Feel like you missed the boat buying a house? Homes are now about as affordable as they were last year — here’s why ‘homebuyers are acclimating’ at last
Despite the Fed pushing its policy rate above 5% for the first time since 2007, average mortgage rates ticked down this past week.
Nadia Evangelou notes the gap between this year and last year’s affordability is narrowing, with mortgage rates just one percentage point higher than they were this time a year ago.
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“Home prices are modestly lower, while American family income is about 6% higher than a year ago,” writes the senior economist at the National Association of Realtors (NAR).
“After putting 20% down, current buyers need to spend about 25% of their income on their mortgage payments compared to 24% a year ago.”
30-year fixed-rate mortgages
The average 30-year fixed rate declined to 6.39% this week, compared to last week’s average of 6.43%.
A year ago at this time, America’s most popular home loan averaged 5.27%.
“Spring is typically the busiest season for the residential housing market and, despite rates hovering in the mid-6% range, this year is no different,” says Freddie Mac chief economist Sam Khater.
“Interested homebuyers are acclimating to the current rate environment, but the lack of inventory remains a primary obstacle to affordability.”
15-year fixed-rate mortgages
The average rate on a 15-year home loan moved up from 5.71% to 5.76% this week.
This time a year ago, a 15-year fixed-rate mortgage averaged 4.52%.
The top concern for sellers in this market is being able to buy a new property before selling their old one, according to a recent Realtor.com survey.
“Financial challenges due to high home prices, high mortgage rates and high inflation have been cutting deep into their budgets,” economist Jiayi Xu writes.
“To succeed in this market, they may need to put larger down payments to manage the size of their mortgage loans, which may require a significant amount of existing savings.”
Read more: This janitor in Vermont built an $8M fortune without anyone around him knowing. Here are the 2 simple techniques that made Ronald Read rich — and can do the same for you
Price growth is decelerating
While “affordability headwinds persist,” listing prices aren’t growing as fast as they were last year, reports Realtor.com.
The national median list price increased 2.85% from $424,000 in March to $430,000 in April. This is not only lower than March’s 6.3% growth rate, it marks the lowest rate of growth since April 2020.
“For buyers, decelerating and potentially declining listing prices could be a welcome reprieve, but higher interest rates continue to challenge affordability,” says chief economist Danielle Hale and economic data manager Sabrina Speianu.
“Meanwhile, sellers who have built up home equity are better positioned to find their next home in a cooling market, but may need to temper expectations for the sale of their current home.”
Mortgage applications decline despite lower rates
Demand for mortgages dipped 1.2% from last week, according to the Mortgage Bankers Association (MBA).
Refinance activity increased slightly by 1% — but remains 51% lower than the same week a year ago.
“Elevated rates continue to both impact homebuyer affordability and weaken demand for refinancing,” says Joel Kan, vice president and deputy chief economist at the MBA.
“Home purchase activity has been very sensitive to rates and local market trends, including the very low supply of existing-home inventory. However, newly constructed homes account for a growing share of inventory, giving more options for prospective buyers.”
What to read next
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
I write a lot about saving money. Like many of you, I’ve found frugality an excellent way to widen the gap between what I earn and what I spend. Frugality helped me get out of debt, increase my monthly cash flow, and ultimately begin to build savings. Thrift is a key component to personal finance.
But to be successful, to build wealth, you must also increase your income. You might do this by changing careers, or by obtaining for a promotion, or by asking for a raise. You might invest in real estate. Or you might start your own business.
I recently interviewed Timothy Ferris, author of The 4-Hour Workweek. I’ve already shared parts of our conversation:
In this final excerpt, Ferriss and I briefly discuss the power of entrepreneurship. Entrepreneurial skills are valuable whether you own your own business or you have a traditional job. At Soul Shelter, Tim Clark recently provided an overview of entrepreneurship. “I’m a firm believer that our fortunes in life are closely bound to entrepreneurship skills, whether we’re self-employed or choose to work for someone else,” Clark writes. “Studying entrepreneurship means examining the many ways one can earn a living.”
Here then is the final part of my conversation with Tim Ferris:
J.D. My father was a serial entrepreneur. When I was a boy, he was always starting businesses. As a result, I have the entrepreneurship bug, as do both of my brothers. In many ways, Get Rich Slowly is a testament to his entrepreneurial spirit. I view it as a business. It seems to me that you are very much about entrepreneurship. Did entrepreneurship run in your family?
Tim My father has been in various types of construction and development, and also real estate — buying, selling, investing. He’s been an entrepreneur for as long as I can remember, in that respect. He’s always owned his own business. My mother, on the other hand, has worked for Suffolk County, which is part of Long Island, in health services doing physical therapy for geriatrics for the last thirty years.
I feel like I’ve seen the best and worst of both of those worlds — the highly institutionalized employment and then self-employment. There’s certainly dangers and benefits to both, and I think I’ve had a pretty good [chance] to see both up close and personal. But entrepreneurship in the sense of starting businesses really wasn’t something that was recommended to me.
Part of what sparked my interest was Donald Trump’s The Art of the Deal. I think most of his books are a waste of time, but that book is extremely good. It’s all about the art of the deal and negotiating and so forth. There’s a lot of really good material, especially the dissection of his schedule. He basically walks through a typical day. Very, very interesting stuff.
When I was doing my undergrad and working in the library for $8 an hour — with no air conditioning and no ventilation in the middle of late spring — I really began to question just how scalable that approach was, even if it were $20, $30, $40, $50 an hour.
I was dyslexic at a young age, and developed coping mechanisms. I ended up being able to read extremely quickly, and to prepare for tests in some unique ways. I had friends saying, “Dude, when do you study?” There was a lot of classroom reading, and I did it, but very few people ever saw me spending more than a half hour on any given day, whereas a lot of students are spending three or four hours.
After a few people asked me this, I put together a seminar. I did the first seminar with guarantees and so forth. I had very low expectations for it, but I ended up walking out three hours later with $20 bills and checks spilling out of my pockets. When I ran the numbers, I realized that this was definitely a better model, but it was still not scalable because I had to be there teaching the seminars. I became very bored of it. After that, I started fantasizing about the different formats that a scalable business could take.
There’s a book by Entrepreneur Press called The Young Millionaires. It’s a really good book. Some of the business models are outdated now, but it basically has two to three page profiles of dozens of late twenty-something and thirty-something millionaires. It really inspired me to brainstorm different options.
J.D. So how do you come up with money-making ideas — or “muses” — that can supply supplemental income and be easy to maintain and sustainable in the four-hour workweek lifestyle? It seems to me there’s no one right answer. It depends on the individual. The Young Millionaires book sounds like it might be a sort of cookbook, or an idea factory.
Tim [I recently had the chance to ask Warren Buffet a question about investing.] If I had asked, “How should I invest my money?” I wouldn’t have received [a good answer]. I had to be very specific: “no dependents, thirtysoemthing, I can cover my expenses with other income or savings, etc.” There were a lot of qualifiers. Just like when somebody asks “How should I invest my money?”, there’s no way you can answer that in a meaningful way. The same is true with muses.
But in general, I would say studying case studies that you’ll find like mine, or The Young Millionaires would be another example, and then reading books like eBoys. I see my book as a valuable starting point so that you don’t focus on the wrong types of businesses, but it requires an analysis of your risk tolerance.
J.D. Do you have any recommendations for people who aren’t entrepreneurial, who don’t have the ability or the interest in creating “muses”? These people might prefer to save and invest instead, but are still interested in the four-hour workweek lifestyle. They’re interested in lifestyle design.
Tim I think one of the misconceptions with the book is that you have to use everything in the book. It’s really designed to be more of a menu of options for people to pick and choose from. I may go to a restaurant that I love, but I may hate half of their dishes. The fact of the matter is there’s no requirement to use “muses” whatsoever to apply the principles in the book. They’re principle-based and not tactical.
The rules in the book are really for increasing output and optimizing results regardless of whether you’re in someone else’s office or your own. That also applies to stocks. If you study The Intelligent Investor, you’ll find that the principles and concepts and the rational deconstruction of things that are made complex — because the croupiers and other people can make money by making it complex — it reads very similarly to The 4-Hour Workweek.
By focusing within an organization on using the proper metrics to measure your own performance, improving those metrics, doing 80-20 analysis, then you can increase your value within the company, and document it in such a way that you can then have more leverage to do things like take mini-retirements or work remotely one or two days a week or have a four-day work week (which many people have done) or simply to eliminate work on the evenings and weekends.
Then [one can] apply the same rational framework to investment. They’re completely applicable and adaptable to someone who has no interest whatsoever in starting a business. I’d say that the vast majority of the people who have used the book work within organizations.
Timothy Ferriss, nominated as one of Fast Company’s “Most Innovative Business People of 2007,” is author of the #1 New York Times, Wall Street Journal, and BusinessWeek bestseller, The 4-Hour Workweek.
Despite that I don’t own it, I like my apartment. It’s got a mountainous view, it’s comfortable, and my neighbors are few but friendly. Sure, I’d like to own a home someday. But, unless I move to another city, that probably isn’t going to happen in the next few years. I’m fine with that. Like my neighbor said, I’d rather live here than anywhere else, at least for now.
If you sense a wee bit of defensiveness in my tone, you’re not imagining it. Part of me is trying to justify something.
After my upstairs neighbor moved out a few months ago, our management company began gutting their apartment. We found out they were completely updating it and tearing down walls to put in central air, a dishwasher and an entirely different floor plan.
It didn’t take long for me to notice all the stuff I hate about our apartment: doing the dishes by hand — what are we, cavemen? — and no central air. Life shouldn’t be this hard.
In case there’s any doubt, I’m joking. My point is: I never really noticed these things until I learned about the amenities that will be enjoyed by the Future Joneses in Apartment 9.
“We should move into that apartment,” my boyfriend and I have been joking over the past few months. “Wouldn’t that be funny? To move up one flight of stairs?”
But at some point, we got kind of serious about it. “Well, the rent will only be $240 more per month,” he pointed out. In our area, that’s not a huge jump. Plus, we split rent, so we’d each only pay an extra $120 a month. “If we moved, we’d still be living below our means,” I conceded. “But I don’t know.”
It’s pure lifestyle inflation. And in recent weeks, I admit that I’ve started to mull over the question of whether lifestyle inflation is ever okay and, if so, how do you decide when it is okay? Here’s how I’m sorting out my thoughts on the matter.
(Warning: This is another one of those “First World problem” posts. I’m really grateful to be debating over something like this.)
How will this affect my budget?
It’s the first, and most important, question. Our spending will automatically change, monthly, with this expense. It’s not something we buy once and get to enjoy it. It will truly inflate our lifestyle and our budget. To be honest, I don’t really use a strict budget. I make savings goals each year, and simply aim to reach those goals.
I crunched the numbers to see what our spending looks like, using the 50/30/20 paradigm (50 percent bills/30 percent spending/20 percent savings goals) as reference. If we were still trying to get out of debt, it would change my perspective quite a bit, but here’s how my spending stacks up in any event, generally speaking.
I was surprised that spending was my highest percentage, because I consider myself a frugal person. But I guess it makes sense — my fixed expenses are pretty low, compared to the 50/30/20 method, and that’s because I am so frugal with those expenses. I cut back on the things I don’t care about so I can spend more money on the things I love, like travel and dining out.
If we moved to the new apartment, the bills and rent percentage would jump to almost 30 percent.
“That’s still great compared to most people’s budgets,” my boyfriend argued. Which is true, but I’d rather compare my spending to my own goals, not other people’s expenses.
So back to the question: How will this affect our budget? I’m not going to budge on my savings goals.
I guess I could always take on extra work to make up the difference. That would keep my spending and income gap in tact. But dammit, I don’t want to work more.
In that case, the extra money would have to come out of our spending. That means less dining out or less travel. I have to ask myself, Is the apartment worth giving up a bit on those things? And, in that case, is it truly lifestyle inflation, or just a trade-off?
(Note: My boyfriend and I haven’t fully merged our finances yet, so I’m only calculating my own budgetary changes.)
What is the opportunity cost?
The extra amount I’d pay each month, $120, equates to $1,440 a year. And I could be losing even more than that, if you consider the opportunity cost. What additional opportunities are we giving up by spending that money?
For example, let’s say we choose to invest that money instead. If I invest $140 a month, in a year, that’s almost $1,500 (assuming a return of 7 percent). And in three years, that would be $4,800. If we combined our savings, that amount will jump to about $9,500.
Suddenly, I wonder if I really hate doing the dishes that much. Is a more comfortable lifestyle worth the opportunity cost?
And what is that cost in terms of my goals?
Let’s say my goal is to save up for a down payment for a home in L.A. If I save that money instead, I could buy a home sooner. But how much sooner? Homes here are expensive, and, unfortunately, $9,500 would be about a tenth of what our down payment might cost. I might rather live it up in this apartment for the next three to five years at the risk of pushing back my homeownership goal a bit. In that time, maybe I’ll pick a cheaper place to live, anyhow.
What am I getting in return?
I showed my boyfriend that figure.
“But it’s not like we’re not getting anything in return for our money,” he said. “Plus, we’ll cut back on spending, not our savings.”
Even though I defended renting a while back, I couldn’t help but argue:
“But we’re spending more money on a place we don’t even own. It’s like throwing money away.”
“With that logic,” he said, “Why don’t we just move into the cheapest apartment we can find?”
He has a point. Renting is just our reality. I’d love to buy a home someday; but if I stay where I’m at, it’ll be a while before that happens. Isn’t it okay to enjoy my income a little in the meantime?
Still, there’s a part of me that feels we’re spending more money on something, and, when it’s all said and done, we have nothing to show for it, because we don’t own it.
“When we travel, we don’t own anything, either,” he said. “Except the memories. It’s more of an experience purchase. In this case, we’re paying for comfort.”
And here’s the comfort we’d be getting in return:
A bit more free time: We’d save time doing the dishes. Also, when both of us have a busy week, we sometimes order out too much and avoid cooking. Cooking equals dishes, and I know neither of us will have time to do those dishes the next day, so it’s just easier to order out. I’m not arguing that this dishwasher will save us money, but it might make it easier to avoid stress spending.
Brand new stuff: This is a rarity when you rent. It’d be really nice to use a tub and toilet that a hundred other people haven’t used on a regular basis.
More space: The apartment is slightly bigger, which is nice, though it’s not that big of a deal to me. I don’t mind small spaces. But it would be nice to have more room for my home office.
Better aesthetics: The layout, lighting and amenities are better, making our day-to-day environment more comfortable and pleasant.
How frequently will I enjoy this?
Another important consideration in mulling over my lifestyle upgrade: Is this upgrade something I will enjoy often? It makes sense to spend your money where you spend your time.
A couple of years ago, we splurged on an expensive mattress, part of the justification being that we spend 8 hours a day on the thing. My back and I have zero regrets about that decision.
On the other hand, I once bought an expensive pair of heels. I work from home and rarely go to fancy places, so these shoes mostly just collect dust in my closet. Every now and then, I look at them and wonder if I should just try to sell them.
The apartment splurge is something I would enjoy on a daily basis, especially since I work from home. Also, I’d have more room for my home office, which would be nice.
I like being frugal. But, as we’ve discussed before, frugality isn’t just about saving money. It mostly seems to be about optimizing value. I’m not saying that this move would be a frugal choice; I just wonder if it’s inherently un-frugal. I’ll admit, I’m leaning on the side of moving, because I have no real concrete goals, I’m just saving to save, and, hell, I want to live a little. I’m into personal finance for the financial freedom, flexibility and options. What’s the point of managing my money so well if, when I finally get to the third stage of finance, I hesitate to spend it on day-to-day comfort and convenience?
It all sounds very rational, but the cautious side of me worries that I’m only justifying things. After all, I didn’t get to the third stage by giving into lifestyle inflation.
Still, it sure would be nice to move into what now seems like the perfect apartment.
What do you think? Is moving into a better apartment a bad personal finance decision? How do you decide on lifestyle upgrades? Is there something else to consider?
While home prices continue to fall on an annual basis, new data from Black Knight indicates that the trend may not continue beyond the short term. The company’s March Mortgage Monitor shows its seasonally adjusted Home Price Index (HPI) rose 0.45 percent in March (the largest increase since last May) and was up 1.38 percent before adjustment. The latter number is roughly on par with the 10-year March average of 1.43 percent, typically the strongest monthly uptick each year. Further, revisions to the January and February HPI numbers show monthly gains of 0.13 percent and 0.43 percent making March the third consecutive month of gains. The company warns that these monthly increases would annualize to gains of more than 10 percent and make it important to watch for further heating in coming months.
Black Knight’s Vice President for Research Strategy, Andy Walden, says, “Despite the home price strengthening of these past couple of months, the backward-looking annual growth rate continued to cool as the influence of the red-hot spring 2022 market fades in the rearview mirror. Prices are now up just 1.0 percent year over year, with the annual growth rate on track to fall to roughly 0 percent by April.” That annual metric has been falling by 1.3-1.4 percent each month since the start of 2023.
The only markets in the top 50 by population where seasonally adjusted prices are still shrinking are Austin, Salt Lake City, and San Antonio. Phoenix and Dallas were effectively flat month-over-month. The largest price gains have occurred in the Midwest and Northeast.
Driving the recent price gains is the inventory shortage that’s been plaguing the housing market for some time. Walden said, “A modest bump in homebuyer demand ran headlong into falling for-sale supply. Just five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92 percent of all major U.S. markets. Fast forward to March, and the situation has done a literal 180, with prices now rising in 92 percent of markets from February.
“Our Collateral Analytics data showed the supply of active listings fell for the sixth straight month, to the lowest level since April 2022. On top of that, March saw deterioration in supply among 90 percent of major markets. New listings aren’t filling the gap either – 30 percent fewer properties hit the market in March as compared to pre-pandemic norms. That deficit has now increased in each of the last six months and is up from -27 percent in February and -25 percent the month before. Given the modest rise in sales volumes, current available inventory represents just 2.6 months of supply on a seasonally adjusted basis, tipping the scale back toward sellers in a tightly constricted market.”
The Monitor said interest rates remained volatile – from a high of 6.85 percent in early March, to 6.21 percent by early April, then back up above 6.5 percent. by the middle of the month. Despite the pullback in rates and that the heart of the home buying season is here, purchase rate locks are 18 percent (unadjusted) from their late March highs. Likewise, refinance volumes are down 17 percent among cash-outs and 24 percent among rate-term refis since mid- to late March. Walden said, “This trend is worth watching closely in coming weeks given the delicate balance of supply and demand in today’s market. Granular, timely data has become ever more essential as the market continues to sift through each new shred of economic news in hopes of predicting how the Federal Reserve and broader economy will react.”
Inflation does not yet appear to be hurting mortgage performance. The national delinquency rate dropped 53 BPS to 2.92 percent in March. This is the first time in Black Knight’s 23-year records that the rate has been below 3 percent. March’s 15.2 percent decrease was broad-based, with 30, 60 and 90-days past due buckets all improving.
The CARES Act’s mortgage protections will expire at the end of May, so Black Knight provided a snapshot of the current status of forbearance plans. Only 422,000 first mortgages remain in plans, down by 22,700 over the course of the month. Just over 200,000 loans remain in loss mitigation. There are 105,000 loans in post-forbearance foreclosure, the majority of which were delinquent pre-pandemic.
The share of borrowers who have trouble making payments after exiting plans appears to have stabilized below 20 percent.
Inside: Do you want to make quick money? If so, you’ll love this collection of ways to make cash in one day. Start these tasks and start making extra cash fast.
In today’s world, there are many ways to make quick money in one day.
The internet and technology have created opportunities that were non-existent just a few years ago. You can now make money in your PJs from the comfort of your own home! I do!
We all have those times when we need cash fast. Maybe it’s for an emergency car repair, an unexpected medical bill, or a last-minute plane ticket home.
Whatever the reason, there are plenty of ways to make quick money in one day.
We will include some of my personal favorites as well as methods I researched.
In today’s blog post, we will outline the best ways to make quick money in one day.
How can I make immediate money?
If you need immediate money, you need to look for ways to get cash in your hand quickly.
This would be by selling your possessions, participating in focus groups, find a gig job that pays cash tips.
These ideas will get cash in your hand within 24 hours.
How much money can I make in one day?
Many people wonder, “How much money can I make in one day?”
The amount of money you can make in a day depends on a variety of factors, such as your job, side hustles, and financial opportunities.
With a bit of hustle, creativity, and smart financial decisions, it is possible to make up to $1,000 a day.
However, you need to develop a smart strategy for achieving this goal. Investing in education will help you put that money to work growing for you.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
50 best ways to make quick money in one day
Making money quickly is possible with some time and effort.
There are a lot of ways to make quick money in one day. In fact, many ideas center around how to make money online for beginners.
Here are 50 of the best methods that you can use to make some extra cash.
1. Work on freelance projects
Working on freelance projects can help you make quick money in one day by providing you with one-off jobs that can benefit from your skill set.
With the percentage of freelance workers in the workforce climbing steadily, there are many online marketplaces that make it easy to connect with businesses and individuals who need your services.
Sites like Upwork, Fiverr, and Toptal allow you to create a profile and showcase your work, making it easy for you to set your own rates and decide on the length of the project.
Additionally, the more experience you get, the more you can charge and the higher your demand will be, potentially leading to full-time work.
2. Sell items on consignment
Selling items on consignment can help you make quick money by providing an easy, fast way to earn a profit from gently used items.
With consignment shops, you can take your clothes, electronics, jewelry, musical instruments, or even your car to be sold without having to take an active role.
For a cut of the profits, your items will be placed in front of buyers, allowing you to make quick cash.
3. Take on odd jobs
If you’re looking for ways to make money quickly, odd jobs are a great way to do so.
Think of day laborer types of jobs. You can use an app like TaskRabbit to find work in your area.
Some of the common odd jobs you can consider include:
Gardening – you can offer to do gardening work such as weeding, planting, mowing, and trimming.
Furniture Assembly – if you have experience in assembling furniture, you can offer your services to people who need help.
Cleaning – you can offer cleaning services to keep homes and offices tidy.
Painting – you can offer your painting services to those who need help with their walls.
General Handyman Work – if you are good with your hands and have experience in repairing and fixing things, you can offer your services to people who need help.
Moving Gig – people are always looking for help with moving.
4. Trade Options
If done correctly, trading in options can help you make quick money and generate substantial returns in a relatively short period of time.
However, trading options come from experience and should not be taken as a get-rich scheme. Personally, I trade options for a living.
You can make quick money trading options if you know what you’re doing. The key is to identify when the market is going to move in a certain direction and then make the right trades to capitalize on the profits.
Here is the one and only investing course I recommend.
5. Become a rideshare driver
Becoming a rideshare driver can be an easy and convenient way to make money quickly.
All you need to get started is a valid license, active insurance coverage, and an approved vehicle. With Uber and Lyft, you can set your own hours and receive a base rate plus tips and distance or time-based bonuses.
From one of our rideshare drivers, we learned some tricks of the trade such as working in peak hours or in areas with popular nightlife scenes or active airports.
6. Offer house cleaning services
Nowadays, people don’t want to learn their own house, so starting a house cleaning service is a great way to make quick money.
With countless opportunities available online or on local job boards, you can easily find a job that works for you. There are even ways to market yourself so potential customers can find you!
If you have a background in cleaning and don’t mind physical labor, you can make up to $25 an hour or more.
Becoming a housecleaner is a great way to make extra money on the side and you can even make up to $200+ per weekend.
With a bit of effort, you could have a great side-hustle in no time!
7. Rent out your parking spot
If you live in a busy area and have a spot that’s in high demand, you can easily rent out the space for a premium price.
This can be especially profitable if you live near an event center and can offer parking to visitors who don’t want to pay a premium to park in a lot or parking structure. You can put your parking spot to work with services like Just Park or Neighbor.com and earn up to $300 per month.
Renting out your parking spot offers a great way to make extra money while utilizing unused resources or space.
8. Proofread documents
Whether you are a stay-at-home parent, a teacher looking for extra income during summer vacation, or someone with a passion for grammar and punctuation, you can make up to $65,000 a year by proofreading documents.
Make sure to take a Free Training Course: Caitlin Pyle offers a free workshop on how to use the most popular proofreading tool and how to become a work-from-home proofreader.
With some hard work and dedication, you can start earning quick money as a proofreader. Good luck!
9. Walk dogs
Walking dogs can be a great way to make some quick money.
Apps like Rover provide pet owners with a platform to find dog walkers in their area and pay for their services.
A dog walker can make $15-18 per 30 minute walk, with occasional bonuses for boarding or pet-sitting. This is a simple way to get your exercise and make cash.
10. Take an online survey
Companies and websites are always looking for consumer feedback in order to improve their products and services, and offer incentives such as cash, rewards, and gift cards for filling out surveys that can take as little as a few minutes.
Popular survey sites like Survey Junkie and Swagbucks offer these incentives, enabling individuals to make a few quid in just a few minutes of form filling.
Most surveys will only take a few minutes, so you will have to do a bunch to add up to serious cash for your feedback.
Here are the top legit survey platforms:
11. Sell your old junk
Are you looking for an easy way to make some extra money? Why not start by looking around your house and attic/basement for things you no longer use?
You can turn those things into cash by selling them online or having a yard sale.
With a little effort, you can easily make hundreds of dollars by selling your old stuff. It’s a great way to declutter your home and make some extra cash in the process.
Make sure to list your items with attractive descriptions and photos to draw in potential buyers.
12. House sitting
House sitting is a great way to make quick money. It allows you to watch someone’s home while they are away and take care of tasks such as feeding pets, watering plants, and taking out the trash.
You can usually make between $25 to $50 per day depending on the market demand in your area. It’s easy to start, with most sites having a minimum age requirement and a sign-up process that takes only minutes. Payment is typically made when the job is completed.
More importantly, beyond making good money, you are able to housesit in beautiful locations that you may not be able to do otherwise. Personally, this is something I want to start doing.
Build your profile on Trusted Housesitters now.
13. Babysit
Babysitting is a great way to make extra money, especially for those who are looking for flexible jobs that match their availability.
Whether you’re an experienced babysitter or a novice looking to give it a try, there’s no doubt that you’ll find plenty of opportunities available. With a little bit of effort and a lot of dedication, you can make a great living out of babysitting.
Most babysitters earn way more than minimum wage making this a great gig.
14. Deliver food orders
Delivering food orders can make you money quickly by taking advantage of the increasing trend in the popularity of food delivery apps.
With driver-friendly apps like Instacart, DoorDash, and Uber Eats, all you need is an insured vehicle and a smartphone to start delivering food to customers in need.
The pay per delivery can go even further if you work on busier nights like Friday or Saturday. With many apps, you can also choose your own hours and the flexibility to work as much or as little as you’d like. This can be a great way to make some fast cash on the side.
15. Earn money with eBay
eBay is an amazing platform for anyone looking to make some extra money by selling items they don’t use. Whether you’re looking to get rid of an old phone, clothes, or books, eBay is an easy and accessible way to do so.
You can start by selling items you don’t need or don’t use anymore.
You can also consider buying items at a low price with the intention of selling them at a higher price.
If you’re looking to make a full-time income from home, selling items on eBay could be a perfect way. You can start small by buying a thrifty item for a low price and selling it at a much higher price.
With the right knowledge and resources, you can make money on eBay easily. So get started today and watch your earnings grow!
16. Write articles for websites
Writing articles for websites can be a great way to make quick money in one day.
With the increasing amount of new content created daily, business owners often don’t have the time to create content for their websites themselves.
Freelance writers can fill this gap by providing quality content for clients in exchange for payment. Depending on the complexity and length of the article, writers can make anywhere from $25 to $500+ in a single day.
By specializing in a niche, writers can showcase their work as samples to potential clients. Furthermore, writers can establish relationships with other bloggers in their niche, guest blogging, and approach websites in their niche with their writing services to further increase their chances of finding work.
17. Become a pet sitter
Personally, I have a friend who makes money by being a pet sitter and has help from her kids.
With Rover, pet owners in your area can easily find and hire pet sitters for their pets. Dog sitting is the most popular pet sitting activity, and it can earn you around $20-35 for overnight stays.
Plus, you get to decide when and how you want to work, and you can fit it around your own schedule. With the right amount of communication and excellent service, pet owners may even offer you recurring gigs.
18. Participate in focus groups
Participating in a focus group can be a great way to make quick money in one day.
Focus groups are usually based on interesting products or services, and they can pay participants anywhere from $50 to $400 for their time. Not only is it a great way to make money quickly, I have found many focus groups can also be a lot of fun.
The hardest part with focus groups is it is not a steady stream of income as you may not qualify for each opportunity.
19. Do yard work
Just like housecleaning, this is a popular job to be hired out.
Yard work such as basic gardening and landscaping, shoveling snow or salting walkways, and even cleaning gutters can all be done for a fee. Advertising your services through flyers, door knocking, or posting on local job boards can help you find potential customers.
By doing quality work, you can turn this into a weekly gig for quick money.
20. Shop at thrift stores and buy low and sell high
You buy items for a fraction of the cost and resell them for a higher price. For example, you can find brand-name clothing, electronics, antiques, and children’s toys at thrift stores that you can resell on online platforms such as eBay, and Facebook Marketplace.
You can also look for items marked as “free” on the side of the road and spruce them up to sell for a profit.
Shopping at thrift stores can help you make quick money in one day, and with time and experience, you’ll discover which items sell the fastest and for the most money.
To make money flipping items, you must do your research upfront and know how much you can pay for something while still turning a profit. With time and experience, you will learn which items sell the fastest and for the most money.
21. Photography gigs
You can make money with photography in two ways:
Turn your photographs into cash by selling them through stock image websites such as Shutterstock or iStock.
Offer your photography services for family sessions, birthday cake smashes, and even weddings.
Either way, you are able to turn your passionate hobby into a way to easily make a decent income in one day.
22. Participate in sweepstakes
Participating in sweepstakes can help you make quick money in one day by giving you a chance to win big.
Yet, this option comes with a lot of RISK!
There are a variety of competitions and prizes available, ranging from online product giveaways and gift vouchers to big-money TV game shows. You want to look for sweepstakes that are free to participate in and not pay money.
This one ranks up there with the left hand itching principle.
23. Use your Writing Skills
Are you looking to make money with your writing skills? There are lots of opportunities available that pay you to write. From blogging to freelance writing, to reviewing music, you can find the perfect job that allows you to utilize your writing skills and get paid.
You can also make money by helping people refine their writing. If you have a good grasp of grammar and can help people write in a more engaging and structured way, then you can charge for your services.
Publications often hire freelance writers, so that’s another avenue to explore.
No matter what you decide to do, there are plenty of ways to make money with your writing skills – all you have to do is find the right opportunity for you.
24. Become a home staging stylist
Becoming a stylist can help make quick money in one day by offering services to those who are in need of help staging their homes for sale.
Realtors often hire outside help to ensure that the home is presented in an attractive and appealing way, and these services can be provided for an hourly or flat fee.
This is a great part-time gig.
25. Donate plasma
You can make money quickly by donating plasma.
Plasma is the liquid part of the blood that contains antibodies. It can be used to create medications and other medical products. Plasma donation is a safe procedure that can help people in need.
Typically, you walk out with cash immediately.
Check with your local blood bank or hospital to learn more.
26. Host workshops
Hosting workshops can be a great way to make money in a short period of time. There are endless webinar ideas you can try, such as live-at-home fitness classes, cooking, a writing workshop, an Excel class, nutrition coaching, or even a first-time homebuyer class.
With the rise of video conferencing, it’s easy to set up webinars to teach people your skills and knowledge.
Typically, you will need to build an online presence with a social media following to hold successful workshops.
27. Trade Stocks
Trading stocks can be a lucrative way to make quick money, but it is essential to understand the risks involved.
With the help of online market trading platforms, anyone can start to trade stocks with a minimum amount of money.
Learning how fast you make money with stocks, but realizing you need to learn to trade stocks is like going back to school for a stock trading education.
Although trading stocks has the potential to generate quick money, it is important to note that all trading involves risk and that you should only invest what you can afford.
28. Become a courier
Being a courier is a great option for flexible income, as they allow you to set your own hours and work as much or as little as you’d like.
Think outside the box of UberEats or Instacart. This would likely be for a local business that needs to move documents from location to location.
You will need to be reliable and trustworthy.
29. Deliver Pizza
Even today, this is a classic gig to make quick money by delivering pizza!
Businesses are desperate for workers, so finding a job should be fairly easy. However, be prepared to work more than one day.
30. Repurpose your skills
Those skilled in writing, graphic design, coding, bookkeeping, or any other number of computer-based skills, can use these sites to find freelance jobs that require their skills.
Additionally, those with knowledge or experience in a particular field can create and sell an online course via a platform like Teachable or Podia.
Too often, we overlook the things that we are the best at, yet repurposing your skills us a great wat to make money.
31. Dog groomer
The income potential as a dog groomer is considerable.
According to the American Pet Products Association (APPA), pet owners spent $136.8 billion on their pets in 2022.
Dog grooming is a easy way to make money.
Over to pick up dog poop and you can double how much money you make.
32. Sell your unwanted items
Selling unwanted items on eBay and Amazon can be a great way to make quick money.
By scouring online retailers, local thrift stores, and yard sales for hidden treasures, individuals can find consumer goods for cheap and then resell them for extra profit.
Selling on Amazon also provides an opportunity to source products for fulfillment.
Additionally, apps like LetGo, OfferUp, and Facebook Marketplace make it even easier to make extra money, as people jump on items quickly.
For those with a strong entrepreneurial spirit, buying items at a low price and then reselling them at a higher price can generate a decent side income.
33. Sell Printables
If you’re creative, you can create and sell digital products like ebooks, courses, templates, and graphics.
Digital downloads are also becoming increasingly popular, as they require no shipping or fulfillment costs and you can easily make them once and sell them hundreds of times over. Depending on the craft and the demand, your potential earning potential can be quite high.
In fact, selling printables is a popular summer jobs for teachers!
So why not give it a shot? With the right strategies, you could start making a few hundred dollars a month with very little effort.
34. Crafts and handmade goods
One of the best ways to make money quickly is by selling crafts and handmade goods on websites like Etsy.
From jewelry and candles to sourdough bread to quilts and custom T-shirts, there is a huge variety of items that you can make and sell. You can also design and sell custom stationery, pillows, tote bags, coasters, cosmetics, and more.
35. Dropshipping
Dropshipping is an online business model that allows entrepreneurs to start an online shop without having to keep a product in stock. Instead, a business makes a sale and then passes the order along to a third party, known as the dropshipper, who ships the product directly to the buyer.
Dropshipping is a great way to make money quickly, as it requires minimal upfront investment and overhead.
With dropshipping, you can add products to your store without having to buy them in bulk, and you don’t need to worry about shipping or fulfilling orders.
36. Affiliate Marketing
Renting out your property can help you make quick money in one day by taking advantage of the services offered by websites like Airbnb.
Affiliate marketing is a way to earn money by promoting other companies’ products or services. You can do this without a website, by sharing affiliate links on social media, a blog, online forums, post comments, and with friends or family.
When someone buys a product or service via unique affiliate link you provide, you get paid a commission.
It is possible to make money quickly if you have a social media following or a website, as you can start promoting all sorts of companies, products, services and offers online.
37. Work for tips
Making money quickly by working for tips may sound intimidating, but it is actually very achievable with a bit of hard work and determination.
Tips are normally paid in cash, which is exactly what you need.
Jobs that pay tips:
Waitstaff
Bartender
Bellman
Drivers
Casino dealer
Golf caddy
Babysitters
Also, many jobs that pay weekly work for tips.
38. Rent out your property
These services allow you to rent out a room, a condo, or your own home if you’re away on vacation.
Airbnb has revolutionized the hotel industry by allowing everyday property owners to lease their place to travelers. By creating an account and listing your property, you can immediately start earning passive income.
With the right location, you can create a steady stream of income that can help you make quick money in one day.
39. Join a MLM
Joining a Multi-Level Marketing (MLM) company is one of the most popular ways to make money these days. With an MLM, you can potentially make a lot of money by building a team and earning commissions from their sales.
But you need to be careful and do your research to make sure it’s an opportunity worth pursuing.
MLMs can be profitable, but it can take a lot of time and effort to get them off the ground and make them successful. You need to be prepared to take the time to build your team, train and support them, and provide them with the resources they need to succeed.
Personally, I have tried making money with an MLM and found out that it was not worth the time or effort.
40. Collect and sell scrap metal
Collecting metal items such as old swing set parts, metal toys, and other bits of metal can be sold at scrap yards or redemption centers for a small sum of money.
Iron, steel, aluminum, brass, and copper are the most commonly traded types of scrap metal, and the prices vary depending on the type and amount of metal.
This is a simple way to make money if you put in the resources. Just don’t steal metal because that can get you in severe trouble.
41. Deliver for Food Delivery Apps
This industry is booming with no signs of slowing down. You can easily make $100 a shift by delivering food!
Sign up for driver-friendly apps such as Instacart, DoorDash, and Uber Eats. These apps allow you to set your own hours and work as much or as little as you’d like.
Make sure you have an insured car, truck, bike, scooter, or motorcycle. Depending on what you choose to use, certain apps may have different requirements.
Go to the restaurant and pick up the order. You’ll be paid a flat delivery fee, an additional fee per item ordered, and 100% of the tips customers choose to give you.
Deliver the food to the customer.
Get paid instantly, usually within the same day.
Maximize your earnings by delivering for multiple apps at once. This will give you access to more orders, and a larger area to deliver in.
42. Become A Virtual Assistant
Virtual assistants are in demand right now.
Consider becoming a virtual assistant with no experience to help small businesses with tasks like scheduling appointments and managing emails.
Typically, small businesses are looking for someone to take a short-term 3-month stint or a long-term relationship.
If you have marketable skills, you will make an outstanding virtual assistant.
43. Cook and deliver food
Cooking and delivering food can make you money in one day, especially since the demand for convenient delivery is increasing.
If you are cooking food on your own, you need to check with your local state and city regulations to see if you are allowed to sell food from a home kitchen. These food regulations are tough, so make sure you comply with these regulations.
However, many busy families are looking for a personal chef and are willing to pay for the service.
44. Trade-In Programs
Trade-in programs are a way for people to get quick money by selling their old phones, tablets, and other electronics. These programs give customers the opportunity to receive cash or gift cards in exchange for their unwanted devices.
You can trade in your own unused or unwanted electronics or for neighbors who don’t want to deal with the hassle themselves.
When selling through a trade-in program, customers are usually asked to provide a description of the device and its condition. The amount of money received depends on the device and its condition.
Plus you are helping the environment by keeping old devices out of landfills.
45. Become a social media influencer
If you have a large following on social media, you can make money by becoming a social media influencer and promoting products or services.
There are a number of ways to make quick money as an influencer. You can promote products or services by posting about them on your social media account.
Obviously, you must thrive using social media.
46. Flipping items on Poshmark
Making money on Poshmark by flipping items can be a great way to make cash.
You can find items to resell from big box retailers, online retailers, local thrift stores, yard sales, flea markets, eBay, Facebook Marketplace, and Craigslist. Potential items you can flip for profit include brand-name sneakers, clothing, and purses.
You should also figure out which items sell the quickest and for the most money.
Poshmark also has a “bundling” function which allows you to group similar items together for a discounted amount. This is a great way to make more money as you can sell multiple items in one go.
This platform allows followers, so it is easy to build return buyers.
47. Start a small business or side hustle
Small businesses and side hustles can be a great way to make money quickly. Consider your skills and interests and start something that can help you turn a profit.
No matter how you do it, starting a business can be a great way to make money and meet new people.
Building your side hustle to a full-time income will not happen overnight, but you will make progress with hard work and dedication.
48. Take advantage of Swagbucks
Swagbucks is an online rewards and survey platform that provides numerous opportunities to make money.
With Swagbucks, you can earn money by completing surveys, watching videos, playing games, and even shopping online. With each task, you can earn anywhere from $0.40 to $2.00 in SB points which can be redeemed for cash back or gift cards.
Plus, when you sign up, you get a $10 bonus and can even get 500 SBs for referring a friend.
49. Tutoring
Tutoring is a great way to make quick money while using your knowledge and expertise to help others. It involves providing instruction to an individual or a small group on a particular subject, usually to help them improve their understanding.
Tutors can work with students in person or online, depending on the subject and their availability.
No matter your educational background, you can make money tutoring as long as you have a deep knowledge of a subject. With the right resources and platform, you can find tutoring gigs in your area and start making quick money today.
50. Make money with your phone
Making money with your phone is possible with a little bit of effort. You can sign up for apps to complete small tasks and earn money quickly.
Alternatively, there are plenty of mobile apps such as Ibotta, Rakuten, Shopkick, Swagucks, or Receipt Hog which can help you make some extra money with simple tasks.
You can also take on odd jobs through apps like TaskRabbit to make cash.
Finally, you can trade stocks on your phone.
There are so many ways to make money with your phone today.
FAQ
Yes, it is possible to make passive income. This type of income is earned with little effort or direct work.
It can come from investments such as returns and dividends, as well as from sources like stocks, rental properties, and online businesses.
With some creativity and diligence, anyone can create multiple sources of passive income. It may take months or even years to build up these streams of income, but the potential rewards are worth the effort.
Many of the statistics are leaning on the fact that you need a side hustle to make ends meet or get ahead financially.
I started a side hustle to make money to afford what we wanted to do. Personally, my side hustles are blogging and day trading stocks.
The best side hustles are the ones that you are passionate about. More than likely, you will be spending time on them in your free time, so you want to enjoy them.
Regardless of what type of side hustle you choose, you can make extra money on the side. To maximize your earnings, you can even combine several different side hustles together to create multiple income streams.
I always say, if I can make $100 a day, then I am making $3000 a month. That will make a difference in my personal finance situation.
Before you can make $100 a day, you need to find out how you will make money. Look for opportunities that match your skills and interests. Some examples of this include driving for Uber, selling your skills on freelancing sites, creating an online store, or even starting your own blog.
Learn how to invest 100 to make 1000 a day.
When looking to make $1000 fast, you need to up your game – specifically, the time and energy to make your goal happen.
You could start by looking for high-paying side hustles such as trading stocks or options, becoming a freelance writer, setting off as a virtual assistant, or by selling products online.
The key is to make $1k a day consistently. Then, you will be working on how to turn 10k into 100k.
Which Quickest Way to Make Money in a Day Will You Choose?
There are many ways that you can make quick money in one day.
Whether you want to start a side hustle, do some odd jobs, or make money online, which option is best for you?
Whichever option you choose, make sure that you choose something you will enjoy doing as well as the quickest way to make money.
We covered fifty options to make cash and start making extra money today!
Which one is your favorite?
Mine are trading and writing. Comment below on which method you will choose.
Know someone else that needs this, too? Then, please share!!
If you’ve been to the doctor in the past 20 years (or even), then you probably know how expensive those trips can be. There is nothing that you can do about the rising cost of health care, but there are several ways that you can protect yourself from those massive expenses.
Thanks to Medicare, there are millions of seniors that are getting the health care coverage that they wouldn’t be able to afford otherwise. While it’s a great way to get health care, but it doesn’t cover everything. There are dozens of holes in the coverage that could leave you with a massive bill. Those bills can drain your bank account and turn your retirement daydream into a nightmare.
The two best ways to protect yourself is to purchase supplemental coverage, either through a Medigap plan or a Medicare Advantage policy. Both of them are excellent options for additional protection, but this article is going to focus specifically on Medicare Supplement Plan N.
What is a Medigap Policy?
Medicare Supplement Plans are sold by private insurance companies, and they help fill in the holes that your Medicare Part A and Part B doesn’t pay for. There are ten different policies, all of them are denoted by a letter of the alphabet, A through N. Each of them pays for different expenses or a portion of those expenses. Before you apply for one of these policies, it’s important that you compare all of the Medigap plans to decide which one is going to give you the protection that you need.
All ten plans are standardized by the government, which means that all the plans are going to have identical coverage, regardless of which company that you choose. The only difference between the companies is how much they are going to charge you every month. Some companies have higher premiums, while others are going to be more affordable.
After you purchase one of these plans, you will pay the monthly premiums to the insurance company. With a Medigap plan, you will still have to pay your traditional Part A and Part B premiums. Some people have confusion about who they pay the premiums to, or they assume that a Medigap plan replaces their original Medicare coverage. Even if you have a Medigap plan, you are still responsible for your Medicare payments. Not paying those premiums can lead to some serious fees.
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Medigap Plan N Coverage
As we mentioned, there are ten different policies, and all of them are different. There is no “one plan fits all” that will work well for every applicant. In this article, I’m going to detail the pros and cons of a Plan N, which is one of the popular options for supplemental coverage.
Plan N is one of the larger policies, which means it’s going to cover more of the holes left behind. There are several key coverage categories that you should be aware of if you are going to purchase this option. One of the first things that you should realize is that 100% of your Part B coinsurance fees are paid for, except for a $20 co-payment fee for a doctor’s visit and a $50 fee for emergency room visits. These are relatively small fees, as long as you don’t go to the emergency room a dozen times every year.
One of the key components of a Plan N is that it will pay for skilled nursing facility coinsurance and Part B coinsurance. Both of these coverage groups can save you thousands of dollars every year. If you end up needing any skilled nursing facility assistance, it can quickly become costly, but having the coinsurance coverage can keep more money in your pocket.
Another area that Plan N pays for is the first three pints of blood if you need it. Additionally, it will pay for hospital coinsurance and costs for an additional 365 days after you traditional Medicare coverage ends.
One of the most notable pitfalls of a Plan N is that the policy doesn’t cover any Part B excess charges, which can be a devastating coverage gap. When you go to the doctor or visit the hospital for any treatments or services, there is a pre-approved amount that Part B will pay. Legally, those doctors and hospitals are allowed to charge 15% above that amount. In most cases, those excess charges won’t break your bank, but depending on the procedure or service that you get, it could put a strain on your bank.
Deciding Which Policy is Best for You
When you’re trying to decide which plan is best for you, there are several factors that you will need to consider. Each plan has pros and cons, and getting the best supplemental coverage is one of the best decisions that you can make.
The first factor (and the most important) that you should consider is your finances. The purpose of the Medigap plan is to ensure that your family isn’t drained by medical expenses, but your supplemental coverage shouldn’t stretch your finances too thin either. Before you apply for any coverage, take a long and hard look at your budget and determine how much extra that you can spend. Everyone would love to have a Plan F, which fills in all of the left over expenses, but that coverage comes at an additional cost.
The next factor that you should take a look at is your health. If you’re in poor health and you have several pre-existing conditions, then a Medigap plan that is comprehensive is going to be a better investment. The worse that your health is, the more money that you’re going to spend on medical bills and other health care costs. On the other hand, if you’re in good health with a clean bill of health, then you can consider taking the risk to purchase a small Medigap plan that leaves more holes and saves you money every month.
These are only some of the different factors that you will need to consider. You will need to look at each plan in light of your specific circumstances. Every Medicare enrollee is different, and all of them are going to need a different supplemental plan.
Enrolling in a Medigap Plan
After you’ve decided which Medigap plan is going to work best for you, the next step is to enroll in a supplemental plan. Thankfully, it’s easier than you might think. After you have found the insurance coverage that you’re going to purchase the plan through, all you have to do is contact a Medigap insurance agent. The agent will walk you through the process.
It’s important that you take note of the Medigap open enrollment period. That’s a 6-month timeframe that beings the month that you’re going to turn 65. This 6-month window is one of the most important factors that you should take advantage of when you’re shopping for additional health care protection.
During your open enrollment period, the insurance company can’t decline your application, regardless of how poor your health is or any pre-existing health conditions that you have. Depending on your health, this might be your only chance to get accepted for Medigap protection.
Another advantage of the open enrollment date is that you’ll get the lowest available premiums for your Medigap plan, even if you aren’t in the best health. During the 6-month window, the insurance company can’t raise your premiums, even if you have a severe health problem. After that window is over, then your application is going to be treated like any other application, and they can jack up your rates based on your health. Applying during the open enrollment can save you thousands and thousands of dollars every year.
If you’ve already missed your open enrollment period, don’t worry, there is still a chance of getting affordable coverage. You might be more expensive, but you can’t put a price on the peace of mind that additional health care coverage will bring you.
Want More Coverage?
If a Plan N doesn’t give you all of the additional coverage that you need, then there are other options. If you want to get the most comprehensive coverage, a Plan F is going to be the best choice. Plan F covers every possible gap that is left by original Medicare. If you want to ensure that you have all the coverage possible, then you should consider buying a Plan F policy.
One of the worst things that you can do is not have enough insurance coverage. If you have subpar coverage, you could be responsible for, but having the proper Medigap plan will ensure that it doesn’t happen. The older that you get, the more that you’re going to spend on health care every year, and all of those bills could ruin your retirement savings account.
Questions or Concerns?
I know that shopping for Medicare supplemental coverage can be difficult. There are dozens of confusing terms and options that you will need to navigate. If you have any questions, you can read some of my other articles and hopefully, they will answer those questions. If you need help applying for coverage or need assistance picking a plan, you can contact Medicare directly using their official site (Medicare.gov), or you can call a local Medicare supplemental insurance company.
The best way to get an affordable Medigap plan is to work with an independent insurance agent. Unlike a traditional Medigap agent, independent brokers work with dozens and dozens of Medicare supplemental insurance agencies across the country. These agents can bring a personalized set of quotes directly to you.
Not only will working with an independent insurance broker save you money, but they will also save you time. If you tried to get all of those Medigap quotes by yourself, you could spend hours and hours calling agents. They can connect you with the best companies to meet your supplemental coverage needs. Additionally, they can give you unbiased advice on which policy is going to meet your needs.
You’ve worked for years and years to reach this stage of your life. Retirement is a special time of life when you can kick back and enjoy all of that hard work. Don’t let those increasing medical bills and hospital fees keep you from fulfilling your retirement dreams.
Hopefully, this explanation of Medigap Plan N has given you the information that you need to make an educated decision about your supplemental coverage. If you’ve decided that the broad coverage of Plan N is not the perfect policy, there are nine other options. If you want more information about the other Medigap plans, I’ve also detailed the pros and cons of the other policies as well.
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