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The Hidden Value of Keeping Extra Coverage

October 30, 2024 When we refinanced our family car, it was a moment of excitement, reflection and celebration. It felt like we were taking a big step forward in our financial journey, finding new ways to save. But life had other plans. Not long after, the engine light came on. At first, we weren’t too worried—after all, we’d just bought the (used) car in December, and it had decent mileage. We made an appointment for a diagnostic, expecting a fee but hoping it would be a minor issue.Unfortunately, our hopes were quickly dashed. The diagnosis revealed a significant problem with a part in the engine, and the estimated repair cost came to around $4,000. Panic set in immediately. We weren’t sure how we would handle such an unexpected expense. But then, the service technician checked our records and found that we still had an extended warranty we purchased from when we first bought the car. Suddenly, that $4,000 bill was reduced to just a deductible. What a relief!As I (Je’Lisa) talked with Cory, I reflected on a conversation we’d had during the refinancing process. We had considered canceling the warranty and gap insurance to get a refund, thinking it could save us a bit more money. But Cory decided to keep the coverage, and I am so grateful we did! It turned out to be one of those decisions that felt like an unnecessary expense at the time but saved us big in the long run. Sometimes, it’s worth investing in a little peace of mind. You might also be interested in As we wrap up our Project Money experience, we want to take a moment to reflect on how far we’ve come—emotionally and financially—and share our journey... This past week, our family participated in a door and patio decorating contest hosted by our apartment management company. The grand prize? A $200 gift... Over the past year, my family has been making deliberate choices to save money and focus on our financial goals. One of those decisions recently involved... As we approach the end of our journey with the Project Money program, Cory and I (Je’Lisa) took some time to reflect on how we can apply the financial... Every now and then, life throws a financial curveball—in this case, it was a pleasant surprise. We received a refund from our gap insurance since our car... This week, we faced an unexpected hiccup with our insurance: A doctor charged us for a 2023 appointment because they had outdated information. It was frustrating... Thanksgiving is a time for gratitude, family and of course, a feast. But let’s be honest, hosting a traditional Thanksgiving can come with a hefty price... This weekend, we decided to take a quick overnight trip to Minnesota. It was to record some music and spend time with friends, but we were determined to... This month marked a milestone for our family: It was our first month without a car payment after refinancing our vehicle through Summit Credit Union. With...