I’ve decided to cancel collision and comprehensive coverage on my car. This move reduces 6-month premium from ~$620 to ~$450.

Even though having the insurance made me feel safe, the real purpose of insurance is to protect me against costs I cannot shoulder. My cash reserves, coupled with the actual cash value of my car, meant that comprehensive/collison coverage didn’t make much sense. I already had a high deductible of $1,000.

I can get a reasonably reliable late-90s Honda for $5,000 to $6,000, so I think I’ll be okay.

As for liability coverage, I am maintaining 50/100/50 coverage ($50k per person, $100k per accident, $50k property). Here’s hoping that I’ll never have to use it.

Edit: Car repairs cost ~$400. Still a major expense but it’s lower than the initial $500 estimate. I am grateful.

Two words: car repair.

My trusted mechanic had informed me of this expense a couple months ago, so while I’m not panicked about this expense, it’s still a big chunk of change. This repair isn’t urgent, so I can probably put it off for a couple of months, but I know that it’s important to take care of my car properly.

At least this bout of repairs will get me into 2009.

This repair, however, does raise the question:

1. At what point should I consider buying another car? The KKB value of my current vehicle is at around $3,500-$4,000. In my first year of ownership, I’ve spent over $1,000 (or 1/3 to 1/4 of the car’s value) on repairs and routine maintenance. I won’t buy a new car as long as this one continues to run reliably. After all, Mom is driving a 1993 Civic with no air conditioning (granted, she never takes it on the freeway). I’m not as frugal as Mom, but still.

2. Should I continue to pay for collision and comprehensive coverage (with a $1,000 deductible) on this car? By only having liability insurance, I can save around $500 a year.

So much to think about.

Non-car-related tip: Sephora is having their Annual Friends & Family Sale online, where you can get 20% off everything by using the code FF2008. Unfortunately, today’s the last day. So hurry if you have something you wanted from the Mecca of All Beauty Products. Hat tip to C.C.

Never thought I’d see the day.

I think the most I’ve paid for gas is around $4.59 / gallon, and the cheapest is around… $2-something a couple years back?

Are you seeing some relief at the pump?

Filled up the tank today for $4.47 / gallon. Was very, very pleased.

How are gas prices in your neck of the woods?

I just filled up the Old Faithful this weekend for $3.40/gallon. Regular Unleaded. Two weekends ago it was $3.07 a gallon. Prices are now $3.50+.

WHY?

This gas price is really a pain in the you-know-where… I have $150 for gas/parking, and so now my plan is to minimize ALL parking expenses (which is difficult, given that most of the places near my home require valet parking or paid parking***) and devote the full force of the $150 towards gasoline purchase.

To be honest, I have NOT made any dramatic changes to my driving habits in response to the rapid upswing in gas prices. On the weekdays I commute to work & back (~12 miles round-trip). On the weekends I drive more (~100 to ~200 miles) to see CB, volunteer, etc. Now, one thing I really dislike is feeling like I can’t go somewhere because it’s too expensive to drive. If gas prices keep rising (til $4+), however, I’d have to make some adjustments.

Have you made any changes to your routine because of the gas prices? Would you rather cut back in other areas or would you reduce your driving?

***Does PAYING to park at a mall where you’d be spending $$$ anyway bother you? (At least give me validated parking!) ‘Cause it’s always bugged me a little. Isn’t it enough that I’m buying things from your store? Why do I still have to pay $3?

***I once paid $10 to park for a not-so-good play. Never doing that again.