Where does auto insurance fit in?

**Dancing Lotus** · 10-03-2008, 10:04 AM

So I have listed my bills by order of priorities.

My understanding is that they should go in this order
A. Housing
B. Food
C. utilities
D. Secured debt
E. unsecured debt

Where does my car insurance fit in? I think I should put it with utilities since it is a monthly expense I plan for.And if I don't pay it they will cancel me. OR priority speaking should it be with my secured debt. ( we don't have any actual secured debt

)

Now this is just a list to determine the order of priorities but when determining the budget I think utilities should be placed before the food. Otherwise how would I know what my food budget is?

**Greebo** · 10-03-2008, 10:15 AM

1) Food
2) Utilities
3) Shelter
4) Essential Clothing
5) Transportation
6-X) Other expenses, essential
X+1 - Y) Debt
Y+1 - Z) Non essentials

Insurance for the car goes in #5.

**Dancing Lotus** · 10-03-2008, 10:24 AM

Greebo- I think your list is for a more exstream situation. I think the morgage should be paid for before anything else. I have enough money to cover the bills so I prefer to pay them first then buy groceries and all the other stuff.

If all else fails I believe you pay the morgage, electric water and buy food. All the rest is secondary.
I am speaking from the stand point of someone who has just enough to cover the bills but nothing extra so I can't get ahead. Now if you didn't have enough income to cover the basics I would put food at the top.

**Greebo** · 10-03-2008, 11:06 AM

Originally Posted by AnnK

Greebo- I think your list is for a more exstream situation. I think the morgage should be paid for before anything else. I have enough money to cover the bills so I prefer to pay them first then buy groceries and all the other stuff.

If all else fails I believe you pay the morgage, electric water and buy food. All the rest is secondary.
I am speaking from the stand point of someone who has just enough to cover the bills but nothing extra so I can't get ahead. Now if you didn't have enough income to cover the basics I would put food at the top.

The priority list doesn't change based on extremes. It really doesn't. Priorities are determined by asking "If I had only $x dollars this month, what would I spend it on" and making X smaller and smaller till you had only one item left.

You can't persuade me you'd keep a house at the expense of starving your family for a month. If food would be #1 when you were dirt broke, then that's it. FOOD IS #1.

**Lady_V** · 10-03-2008, 11:13 AM

Ann...

I haven't read Dave R, but I lump mine with utlities. No insurance = cancelled insurance. Driving with cancelled insurance = jail, suspension, financial ruin if you hit someone else.

**Dancing Lotus** · 10-03-2008, 12:09 PM

Originally Posted by Lady_V

Ann...

I haven't read Dave R, but I lump mine with utlities. No insurance = cancelled insurance. Driving with cancelled insurance = jail, suspension, financial ruin if you hit someone else.

I think you understood my question. Thanks what I was thinking Lady-V.

Greebo you misunderstood what I was trying to say, perhaps I didn't do a good job of explaining myself.
I was doing a written budget for the season and was trying to decide what column to put my auto insurance in.
I haven't any problem feeding my family, of course the standard by which we eat depends on the budget that week. LOL

**Greebo** · 10-03-2008, 12:19 PM

In that case, Insurance is its own category under transportation. It's not a utility or any of the other categories, IMO.

**reginaastralis** · 10-04-2008, 12:53 AM

I agree with Greebo. We have a similar list to yours, however, I have a completely seperate column for auto transportation. In that, I have gas, insurance and a little "extra" ... sort of a getting ready to have a Freedom Account, but the little extra covers any maintence like oil changes.

I don't have a list of putting things in order ... honestly. I mean, I never even thought of it like that.

HTH.

**shadowfax** · 10-05-2008, 09:37 AM

Definitely do not let your auto insurance lapse for any reason. It happened to me and it was a very bad situation. Drive uninsured and you will find it really thought to get insurance again. And that is if you don't have an accident.

Yes in a situation where starvation was the only choice I'd put food first.
But I have also discovered that one can survive on a lot less money that you'd think food wise if you are willing to eat the same boring things day after day.