$300 in my pocket today

With one phone call today, I put $300 back into our family finances. With our do we / don't we purchase a new to us car, I also took a look at our car insurance. (By the way, we are going to wait another year before the car purchase.)

Since both our cars are 1998's, don't laugh, they have both been paid for for years now. I called and asked our insurance agent what would happen to our premium if we went with liability coverage only. End result, $150 per car savings. I pulled the trigger right there. Why did I do this and carry the extra risk?

First, we have to be involved in an accident that is our fault. This has not happened in over 6 years. Second, the book value on our cars is less than what it would take to repair the car in most cases. If the book value is $3,000 and the cost to repair is $5,000, the insurance company declares the car totaled and pay you the $3,000. After my $1,000 deductible, that's only $2,000 in my pocket and increased insurance premiums to go with it.

So, I'm going to take that $300 savings and put it in our new car fund. The goal this time next year is we'll own 1 1998 vehicle and 1 2004 or '05 or '06 vehicle. Whatever we can get for the cash we have saved.