The average lifespan of a mattress is about 10 years.

With a new mattress running anywhere from a few hundred to a few thousand dollars, replacing your mattress can be an expensive proposition.

But if you’re due for an upgrade, it might be a necessary expense.

We’ve rounded up the four best mattress financing options that fit a variety of budgets and financial situations to help you find a way to get a new mattress — and hopefully a better night’s rest.

• Best for special offers: Retailer financing
• Best for installment payments: Buy-now, pay-later apps
• Best for no interest: 0% APR introductory offer credit cards
• Best for not adding debt: Paying cash
• What to watch out for with mattress financing
• How we picked these mattress financing options

Best for special offers: Retailer financing

Why retailer financing stands out: Making your mattress purchase at a brick-and-mortar retailer or purchasing the mattress on a retailers’ website might unlock opportunities for special financing deals.

Here are a few things to know about retailer financing.

• Some stores may offer exclusive promotions, such as 0% financing, discounts or gift cards with a purchase. Look for savings, especially around the holidays, and be sure to shop around for the best deal before committing to a specific store.
• Brick-and-mortar retailers often provide a range of payment options, including store credit cards, installment plans and lease-to-own payment plans.
• If you want to test and buy an online or direct-to-consumer mattress brand, such as Purple, you might be able to find it in person at a local store instead of purchasing it online.

Thinking about using a store card? Here are six things to watch out for.

Best for installment payments: Buy-now, pay-later apps

Why buy-now, pay-later apps stand out: Buy-now, pay-later apps can help you split up the cost of a large purchase, like a mattress, over time. You’ll typically be able to make equal monthly payments and might be able to select the number of months, depending on your purchase price and credit profile among other factors.

Here are a few other things to keep in mind if you’re planning to use a buy-now, pay-later app to finance a mattress.

• Some mattress companies have direct partnerships with buy-now, pay-later apps, allowing you to select the app as payment during checkout.
• Some buy-now, pay-later apps let you choose where you want to make your purchase, so you’re not limited to a certain retailer, online site or product.
• Rates might be as low as 0% if you qualify.
• You might be able to get prequalified without an impact to you credit.

Read our full roundup of the five best buy-now, pay-later apps to learn more.

Best for no interest: 0% APR introductory offer credit cards

Why 0% APR introductory offer credit cards stand out: Using a 0% APR intro credit card might be a consideration if you want to purchase a mattress interest free. But to benefit fully from the introductory rate, you’ll have to be sure to repay the amount you borrowed in full within a specified amount of time. Otherwise, interest kicks in.

Here are a few more things to know about using a 0% APR intro credit card.

• You’ll have to apply for the credit card, which will result in a hard inquiry on your credit history even if you initially prequalified.
• To avoid losing the 0% introductory purchase APR, you’ll likely have to make at least the minimum monthly payments due on your statement each month. 
• It’s important to read the fine print before applying for any credit card. You’ll also want to make sure you understand what the post-introductory interest rate is and how long you have before you lose the intro deal. 

Learn more about 0% APR offers.

Best for not adding debt: Paying cash

Why paying cash stands out: If you’re not looking to take on any more debt, you can’t go wrong with paying cash for your mattress. And you can choose to buy a mattress that fits your personal financial situation and budget.

If you’re thinking about using cash to pay for a mattress, here are a few more things to keep in mind.

• If you’re on a budget, opting for a mattress that costs only a few hundred dollars might be a better option than a luxury mattress.
• While online retailers can’t accept paper cash, you still might be able to pay with a debit card, so the funds will be taken out of your account immediately.
• Even if you don’t have cash on hand to purchase a mattress right now, you can always save up. Think about what you can afford to spend and then set a plan to put money aside until you’ve reached your goal.

Learn how to create a budget to help you save for big purchases.

What to watch out for with mattress financing

If you plan to use financing to pay for your next mattress, you might be able to spread the cost out over time, but it’s important to understand the total cost of financing — including interest and fees. Be sure to read the fine print before opening a store credit card, leasing-to-own or agreeing to an installment plan.

And remember, while you may be able to prequalify for a loan offer, completing the application usually triggers a hard credit pull that may lower your credit scores by a few points. You may also want to consider getting a personal loan.

How we picked these mattress financing options

When looking at the best ways to pay for your next mattress, we looked at several factors, including ability to prequalify, interest rates and convenience.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.

If you see information belonging to someone else on your credit report, you could have a mixed credit file.

Did you know that there are more than 2.4 million people in the U.S. who share the last name Smith? Sharing a name with someone is just one of the reasons you might have a mixed credit file.

Let’s look at why you might have a mixed credit file, what you can do if you discover someone else’s information on your credit report and how you can prevent it from happening in the future.

• What does it mean to have a mixed credit file?
• Why do I have a mixed credit file?
• How do I fix a mixed credit file?

What does it mean to have a mixed credit file?

If your credit report shows someone else’s information or credit accounts, you may have what’s called a mixed credit file.

Having information on your credit report that doesn’t belong to you can affect your credit scores in a negative way. Another person’s delinquent accounts could affect your payment history. Or if they’re maxing out their credit cards and it’s showing up on your report, your credit utilization rate could increase, which may lower your scores. Lower scores can make it difficult to get approved for a loan or credit. And if you do get approved, you’ll likely have higher interest rates.

But sometimes having accounts that don’t belong to you on your credit history could actually give your credit score a boost — especially if they’re in good standing or round out your credit mix.

But even if having a mixed credit file is helping your credit scores, it’s still not a good idea to have other people’s information on your account since more errors will likely appear on your credit file over time. Additionally, if that person’s credit scores dropped, yours would too.

Why do I have a mixed credit file?

Not sure why you have a mixed credit file? Here are some reasons people’s credit histories might get mixed up.

Data entry errors

With the amount of information handled by creditors and the credit bureaus, mistakes are bound to happen. They might result from a simple typo, such as mixing up the digit on a Social Security number, a misspelled first name or swapping a first and middle name.

Sometimes issuers might make other mistakes, such as accidentally assigning an authorized user ownership to an account, failing to update records or change records after a dispute, or assigning payment to a wrong account.

Family member with the same name

If you share a name with a family member, you may end up with a mixed credit file. For example, if you’re John Smith Jr. and your father is John Smith Sr., you might end up with a commingled file, especially if you live at the same address. This can also happen if you have a name that’s similar to someone else’s — even if you’re not related.

Different ways of spelling your name

Staying consistent with how you enter your name on credit applications is important, especially if you use a shortened version of your name or go by your middle name. For example, if your name is Elizabeth Garcia, using the names Liz Garcia or Beth Garcia when applying for credit could create errors on your credit file that may lead to a mixed credit report.

Name changes

Have you legally changed your name after a marriage, divorce or any other reason? If the credit bureau isn’t able to match your new name to your maiden name or other existing information, you could end up with missing information or even two different credit files.

Identity fraud

If someone creates an account using your name, Social Security number or birthdate — or takes over one of your existing accounts by, say, making purchases online with your information — you could be a victim of identity theft. But since the account is in your name, it’ll still show up on your credit report.

How do I fix a mixed credit file?

The good news is that if you discover you have a mixed credit file, it can be fixed.

In 2015, the three major credit bureaus — Equifax, Experian and TransUnion — came together to launch the National Consumer Assistance Plan, which makes it easier for people to correct errors on their credit reports and help make credit reports more accurate.

Contact the credit bureaus

If you find credit information on one or more of your reports that belongs to someone else, you’ll need to report it to all of the credit bureaus where you have a mixed credit file. Under the Fair Credit Reporting Act, the credit bureaus must investigate and correct any mistakes.

To file a dispute, start by identifying any information that doesn’t belong to you, including names, addresses, accounts or any other identifying information. To verify your identity, the credit bureaus will also ask for details such as your name, date of birth, Social Security number and your address.

If you believe that the incorrect information belongs to a relative or someone you know, be sure to inform the credit bureau as this may help your dispute get resolved more quickly.

Contact the creditors

In addition to filing a dispute with each of the credit bureaus where you may have a mixed credit report, it’s important to also contact the creditors that reported the incorrect information and let them know there’s been a mistake.

Like the credit bureaus, by law, they have to conduct a free investigation to verify the information and correct a mistake, if they find one.

What’s next?

Checking your credit reports regularly or enrolling in credit monitoring can help you make sure that all of your information is correct and allow you to catch a mixed file early. Credit-monitoring services will send alerts any time there’s an important change to an account on your credit reports.

As a consumer, you can request your free credit reports from the bureaus once each year at annualcreditreport.com. You can also sign up for Credit Karma for free to see your Equifax and TransUnion credit reports and VantageScore 3.0 credit scores as well as get free credit monitoring.

If you use a bank account to pay your bills and day-to-day expenses, you already have a demand deposit account.

“Demand deposit account” may sound mysterious, but a DDA is really just another term for an ordinary checking account.

Let’s explore what a demand deposit account is, how it works and how it compares to other types of bank accounts.

• What is a demand deposit account?
• How do demand deposit accounts work?
• Why are demand deposit accounts important?
• What are some examples of demand deposit accounts?
• What are the advantages and disadvantages of demand deposit accounts?
• Next steps: Deciding which bank account is right for you

What is a demand deposit account?

Demand deposit accounts are spending accounts that let you withdraw your cash whenever you need access to it. DDAs are just one of many types of accounts you may find at a financial institution, such as a bank or credit union, where bank accounts are typically designed to either help you save, spend or grow your money.

How do demand deposit accounts work?

Demand deposit accounts aren’t overly complicated. They’re what the Federal Reserve calls “transaction accounts” and let the account holder deposit money in an account and withdraw the cash at any time. Depending on the financial institution, demand deposit accounts may come with their own unique features, including interest, fees or minimum balance requirements.

Let’s take a closer look at how DDAs operate.

• Depositing money — You can fund your DDA in a few different ways, including making a cash deposit at the bank or ATM, depositing a check directly at your bank or through a mobile deposit app, or adding a direct deposit to your account (like your paycheck).
• Withdrawing money — You typically have several ways to take money out of your DDA, and you’re generally able to access your cash whenever it’s convenient for you. With many DDAs, you can write a check, use online bill pay, pay with a debit card or make a withdrawal at an ATM.
• Interest, fees and minimum balances — While some DDAs may offer the ability to earn interest on the money in your account, not all do. You may also have to pay fees to have a DDA or checking account. But even when this is the case, your bank may waive fees if you meet certain requirements, such as maintaining a minimum balance or having your paycheck directly deposited into the account.

Why are demand deposit accounts important?

As with other types of deposit accounts, the FDIC insures demand deposit accounts (up to $250,000, depending on different variables). Because they’re FDIC insured, DDAs can help keep your money safe until you’re ready to spend it. You can also conveniently access your cash whenever you need it in a few different ways, including checks, ATM withdrawals and taking cash out at the bank.

While most DDAs allow you to get your money whenever you want, some accounts may require you to give up to seven days’ notice.

What are some examples of demand deposit accounts?

Banks and credit unions offer different types of demand deposit accounts. Here are a couple of examples.

• Traditional checking accounts — With a checking account, you can access your money using a check, debit card or electronic payment. You can also withdraw money at your bank in person or at an ATM.
• Savings accounts — You can take cash out of your savings account without having to notify the bank that you’re doing it, so technically savings accounts can be considered DDAs. But note that the law limits withdrawals to just six per month — though the Federal Reserve is currently allowing financial institutions to suspend this limit to help people have easier access to their cash during the pandemic. Keep in mind that while the Fed is allowing this, not all banks are waiving the limit, so you’ll want to check with your institution to see what the current limit is.

What types of accounts aren’t considered demand deposit accounts?

Here are some types of accounts offered by banks and credit unions aren’t DDAs.

• Deposit accounts — Also known as “time deposit accounts,” these accounts require you to keep your money in the account for a certain amount of time before you can take it back out. They include Christmas club accounts and certificate of deposit accounts.
• Money market accounts — Though they typically have some features of both checking and savings accounts, money market accounts generally aren’t DDAs because of the limits on transfers and withdrawals from the accounts.
• NOW accounts — NOW accounts are similar to checking accounts, but they let you earn interest on your cash. And though your bank or credit union has the right to require you to get permission in writing before making a withdrawal, most banks don’t usually enforce this as a rule.
• Accounts tied to credit — You might get checks to access loan money or a credit line from a bank or credit card company where you may have a personal loan, HELOC or other type of credit. But these types of accounts aren’t DDAs — they’re credit products.

What are the advantages and disadvantages of demand deposit accounts?

Not sure if a demand deposit account is the best place to keep your money? Consider these pros and cons.

Pros

• Easy access to cash withdrawals.
• Safely store your money with the confidence of FDIC insurance or National Credit Union Administration protection if your account is with a credit union.
• Grow your cash with an account that may pay interest on your balance.

Cons

• Some banks charge overdraft fees, monthly maintenance fees or nonsufficient funds fees.
• There might be a required minimum or maximum balance on your account.
• The number of withdrawals from a savings account may be limited.  

Next steps: Deciding which bank account is right for you

Banks and credit unions offer many different types of accounts, including DDAs. Each type of account can be useful, depending on your financial needs and goals.

If you want a reliable, easily accessible account in which to store your money until you need it for everyday expenses, a checking account can do those things. For money that you don’t need to access regularly, and that you’re counting on for some growth, consider a savings account or certificate of deposit since both earn interest. A savings account is also a good place to build an emergency fund.

And if you’re saving for retirement or want to grow your wealth, investment accounts like IRAs and mutual funds can help.

If you like the idea of a one-stop-shop account that can handle your checking, savings and investment needs, you might consider a cash management account.

CMAs are generally offered by investment brokerages. They typically offer banking-style features like checks, debit cards and the ability to easily move money into your investing accounts. Plus, CMAs have features such as higher interest rates, so they might appeal to you if you’re looking for an account to safely park large amounts of cash until you’re ready to invest or use it.

But cash management accounts may not be for everyone since they can come with high minimum balance requirements and monthly maintenance fees. Let’s take a look at how cash management accounts work and the pros and cons of opening one.

• What is a cash management account?
• How do cash management accounts work?
• How much does a cash management account cost?
• What are the pros and cons of cash management accounts?
• Where can I find a cash management account?

What is a cash management account?

A cash management account is a financial account where you can safely store your money (even large amounts), access it as you would with a checking account, earn interest like a high-yield savings account and easily move funds into investments when you want to.

Generally, banks and credit unions don’t offer CMAs. Instead, you can usually find one through a brokerage.

How do cash management accounts work?

Brokerages that offer cash management accounts typically partner with traditional banks to provide banking services, including traditional checking account services, higher interest and FDIC insurance coverage.

Any uninvested money in your cash management account is regularly swept into accounts at traditional banks that partner with the brokerage holding your CMA. This process typically happens overnight, and once your funds are in a partner bank account, they will be insured by the Federal Deposit Insurance Corporation. During this transition process, your cash won’t be FDIC-insured, but your money could still be protected by the Securities Investor Protection Corporation, as long as your brokerage is a member.

CMAs typically offer the following features:

• Check writing
• Debit cards
• Ability to earn interest (annual percentage yields may be higher)
• FDIC insurance through partner banks (often more than $250,000)
• Option to move cash into investments (offered by the CMA brokerage)

Though cash management accounts aren’t bank accounts, they have many of the same services you’d find with checking accounts, such as bill pay and a debit card that you can use to make purchases or withdraw money from an ATM. Like a savings account, you’ll also have the ability to earn interest on the cash you keep in your CMA — often at higher-than-average rates. If you also want to invest your money, CMAs make it easy to move cash directly into the investment accounts the brokerage offers. Investment options may include certificates of deposit, brokerage accounts or crypto currency.

How does FDIC insurance work with cash management accounts?

Unlike a bank or credit union, the money in your cash management account isn’t directly insured by the FDIC. But because CMAs typically sweep uninvested cash into multiple accounts at multiple partner banks every day, coverage limits often exceed the FDIC insurance limit of $250,000. Some CMAs may offer FDIC coverage on $1 million or more.

Who regulates cash management accounts?

FINRA, an organization that works with the Securities and Exchange Commission to monitor the activities of U.S. brokers, oversees the compliance of U.S. cash management accounts. FINRA ensures that brokerages offer complete transparency to cash management accountholders, including information about FDIC coverage, account structures and risk.

How much does a cash management account cost?

The costs associated with cash management accounts can vary depending on the brokerage. Types of fees may include monthly fees, and you may have to keep a minimum balance in your account.

To avoid surprises, check the fine print for your account to see which fees you may be responsible for and what services are free. There may even be some reimbursable costs, like ATM fees. But note that some cash management accounts may require minimum account balances, which can be quite high.

What are the pros and cons of cash management accounts?

Like any financial product, cash management accounts have their advantages and disadvantages. Here’s a closer look at some pros and cons of a cash management account.

Pros

• Investment options — Auto investing and other investment features make it easy to invest your cash.
• High interest rates — Some cash management accounts let you earn interest on your account balances.
• Similar to checking or savings accounts — Easily pay bills, send checks, make deposits and use a debit card.
• FDIC insurance available through partner banks — Your cash is insured by the FDIC through partner banks, and you typically get protection on amounts higher than $250,000.

Cons

• Minimum balances — Some CMAs require a minimum balance in your account.
• Monthly maintenance fees — You might have to pay a fee each month for your account.
• Not directly FDIC insured — Since your cash is FDIC-insured only when it’s swept into a partner bank account, it may not be protected unless the CMA is insured with the Securities Investor Protection Corporation.

Where can I find a cash management account?

Generally, traditional banks and credit unions don’t offer cash management accounts. Instead, if you want to open a cash management account, look to nonfinancial institutions, such brokerage accounts or online-only financial service providers.

What’s next?

If you’re interested in opening a cash management account, do your homework first. Consider comparing several different cash management accounts from different providers to see how they stack up to your needs and financial planning goals.

Research their interest rates, fees, add-ons, ATM networks and any interest options that may come with the account. Consider the types of investments that may be available with a CMA, such as mutual funds, stocks or certificates of deposit. It may also be helpful to consider the program banks the CMA partners with.

When you’re ready to apply for a cash management account, check to see if the cash management account you’re interested in has an online application process or if it requires you to be an existing brokerage customer to apply.

Editors’ take: NJM auto insurance comes with high claims satisfaction, a good indicator if customer service tops your priority list. But you’ll sacrifice options. NJM offers standard types of coverage and run-of-the-mill discounts that you’ll find with other insurers.

NJM auto insurance at a glance

Pros

• High claims satisfaction rating
• Some extras included with comprehensive and collision coverage
• Ability to get rate discount if you track your driving

Cons

• Not available in every state
• Standard discount and coverage options

What you need to know about NJM auto insurance

New Jersey Manufacturers Insurance Co. has been around for more than 100 years, and it offers auto insurance to Connecticut, New Jersey, Ohio and Pennsylvania residents only. The company also offers protection for ATVs, boats, classic and collector cars, and motorcycles along with condo, homeowners, renters, personal umbrella insurance and business insurance.

High claims satisfaction

NJM ranked No. 2 for customer satisfaction with its auto claims experience in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study. NJM makes it easy to file a claim through your online account or by calling its 24/7 hotline. And if you need repairs, you can take advantage of NJM’s Premier Car Care Network, a network of repair shops that will guarantee your repairs for two years.

Policy extras

Policies with comprehensive and collision coverage automatically come with extras, including limited pet coverage, transportation expense reimbursement and new-car replacement coverage. Transportation expense reimbursement pays policyholders for out-of-pocket transportation costs while their vehicle is being repaired.

Ability to save if you track your driving

NJM SafeDrive is a usage-based insurance program that uses a mobile app on your smartphone to monitor your driving habits and provide feedback. The app tracks how you accelerate, brake, and maneuver corners along with how fast you’re driving and whether you’re distracted.

When you participate in the program, you’ll receive a discount on your policy premium. Just keep in mind that you must enroll in the SafeDrive program when you purchase your auto insurance policy.

Auto coverage offered by NJM

NJM’s auto insurance coverage options are pretty standard and include property damage and bodily injury liability, uninsured motorist coverage, collision insurance, comprehensive insurance and medical expenses coverage.

Optional add-on coverage is pretty common and includes …

• Gap insurance: If your car is totaled, this protection can cover the difference between the amount you’ll receive for your vehicle and the amount you still owe in financing.
• Coverage for trailer/camper body: This coverage can be purchased to help protect your trailer or camper’s body and necessary equipment such as awnings, plumbing and refrigeration systems in the event of an accident.
• Rideshare delivery service coverage: Gig workers driving for rideshare companies like Uber or a delivery service like Amazon Flex may be able to get added protection from NJM while using their personal vehicle on the job.
• Roadside assistance: This coverage includes towing, lockout service, jump starts, flat tire changes and fuel delivery if your vehicle runs out of gas.

Auto insurance discounts offered by NJM

The discounts available from NJM are similar to what you’ll see offered by other insurers.

• Good student discount: High school and college students who have at least a B average or have made the honor roll or Dean’s list may qualify for reduced rates.
• Mature driver: Adult drivers who pass a safe driving course and meet certain age requirements might be able to get a discount.
• Driver training: Drivers in Connecticut, New Jersey and Pennsylvania who’ve completed driver training may get a break on their auto policy rates.
• Defensive driving discount: Drivers in New Jersey who complete a defensive driving course can get a discount on liability, personal injury protection and collision premiums for up to three years.
• Electronic payment discount: You may be able to receive a discount for enrolling in NJM’s auto pay plan.
• Full coverage discount: This discount is automatically applied if you add collision and comprehensive coverage to your policy.
• Home and auto bundle: You may be able to save for bundling home and auto policies.
• Multi-vehicle discount: If you insure two or more vehicles with NJM, a multi-car discount will apply to each vehicle.
• New-car discount: You’ll get an automatic discount if your car is no more than two model years old.
• Paperless discount: If you choose e-delivery of policy documents, you can get a discount in Connecticut, Ohio and Pennsylvania.
• Vehicle safety equipment discount: If your vehicle has anti-theft devices, anti-lock brakes or passive restraints, you may be able to get a discount.

Is NJM a good insurance company?

NJM auto insurance may be ideal if you live in a state where it’s available and want standard coverage and discount options. It could also be good if customer service is really important to you, since NJM ranked highly in customer satisfaction in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study.

Be sure to compare car insurance quotes from several insurance companies to help identify the best insurer and policy for your needs.

Can anyone get NJM auto insurance?

If you’re a resident of Connecticut, New Jersey, Ohio or Pennsylvania, you’ll be able to get a quote for NJM auto insurance. A range of factors will affect your car insurance rate, including previous auto insurance claims, driving violations, vehicle history, insurance history and insurance scores.

Not sure if NJM auto insurance is right for you? Consider these alternatives.

• Geico: This insurance company may be ideal if you’re looking for a wide range of discount opportunities.
• Farmers Insurance: Farmers could be a good option if you want a lot of coverage options to choose from or have specific coverage needs.

Freshness is important — and not just when it comes to cuisine.

A “stale” check — one that hasn’t been cashed within six months of the original issue date — can cause you problems and cost you in bank fees. It’s important to know that when you get a check it may not be valid forever. Checks can become “stale dated” and may be harder, or even impossible, to cash.

Let’s look at what to know about stale-dated checks and what you can do if you’re holding onto one.

• What is a stale-dated check?
• How do I know if a check has gone stale?
• Are stale-dated checks valid?
• Can I cash or deposit a stale-dated check?
• What should I do with a stale-dated check?
• Next steps: Ways to avoid a check going stale

What is a stale-dated check?

Generally, a “stale check” (also called a “stale-dated check”) is an uncashed check that’s more than six months old. Although banks, credit unions or other financial institutions might let you cash or deposit an outdated check into your account, the law doesn’t require them to do so.

What types of checks can ‘go stale’?

The six-month time frame generally applies to personal and business checks — including payroll checks. But that time can vary for other types of checks.

Checks from the U.S. Treasury (a federal tax refund, for example) are good for 12 months after the date they’re issued. A check from a state government is generally valid for six months to a year, though that can vary by state.

The length of time for a cashier’s check to go stale can also vary — from 60 days to never — depending on multiple factors. In some cases, the issuing bank may specify an expiration date on the check itself. The only exception to stale-dating may be a certified check, which must be honored, even after 180 days.

How do I know if a check has gone stale?

There are a few ways you can determine if a check is stale-dated, whether you received the check or have concerns about a check you’ve written.

• Check the date on the front of the check. If the date on the check is more than 180 days old, the check is stale.
• Look for an issuer time limit. The bank that issued the check might have preprinted language on the check stating how long it’s valid. For example, some business checks might say, “Not valid after 60 days.” It’s worth noting that even if the specified time limit implies the check has expired, the bank may still cash it. 
• Keep an eye on the checks you write. Double check your checking account to make sure that you don’t have any outstanding checks that you’ve written. If a check older than six months hasn’t been cashed, your bank might consider it to be stale.

Are stale-dated checks valid?

A personal or business check that’s older than six months is technically considered stale, but that doesn’t mean it’s void, a bad check or that your bank won’t honor it. It simply means the financial institution has the option to refuse the check.

Can I cash or deposit a stale-dated check?

Possibly. While a bank does have the right to refuse an old check — and even return it to the original issuer — it also might decide to honor it. Before trying to cash a stale-dated check, it might be a good idea to contact the bank that holds the account the check is drawn against to see what its policy is.

Image: mned_stalechecks

What are the risks of cashing a stale-dated check?

If you try to cash a stale check or someone tries to deposit a stale-dated check that you’ve written, here are a few things to look out for.

• The check could be rejected after being accepted. Your bank may let you deposit the check, regardless of the issue date, but the issuing bank could still reject it. If this happens, the funds might be withdrawn from your account and you might have to pay a fee.   
• The check could bounce. Even if both your bank and the issuing bank accept the stale check, it could still be returned for lack of funds. If the check writer has closed the account or no longer has sufficient money in their account to cover the stale check, the check could bounce — and you’ll be on the hook for the check amount and any applicable fees.  
• Your account might go into the negative. If someone tries to cash or deposit a stale check from your checking account, your bank might still deduct the funds from your account — even if you don’t have the funds to cover the amount. This could cause your account to be overdrawn, and you might also have to pay a fee unless you issue a stop-payment order.

What should I do with a stale-dated check?

If you forgot to deposit a check and it’s been more than six months since you received it, it might be considered stale. You can try and deposit or cash it, but you risk the check being rejected by your bank or possibly returned from the issuing bank. Before trying to cash or deposit an outdated check, consider reaching out to the check writer and ask for a replacement check. If you’ve issued a check that has yet to be cashed, you can contact the recipient to see if they still have the check and intend to cash it. If they still want to cash the check, offer to write them a new one — just make sure you get the old check back first, or put a stop payment order on it. This could help you avoid any surprise fees because of negative balances.

Next steps: Ways to avoid a check going stale

If you want to avoid the potential headaches that can come with trying to clear a stale check, it’s a good idea to do the following:

• Cash or deposit any checks you receive as soon as you receive them.
• Consider using an electronic payment method instead of a check.

Make sure to review your bank statement to ensure no checks you’ve written go stale. If a check you wrote is approaching the six-month mark but still hasn’t been cashed, you’ll be able to spot it so that you can get in touch with the recipient.

If you’ve ever set up direct deposit, made an electronic transfer, paid a bill online or deposited a check via mobile deposit, you’ve probably had to provide your bank’s ABA transit routing number.

But where does an ABA number come from? How do you find yours? And what does it do?

We’ll answer those questions and more in this article.

• What is an ABA transit number?
• How does an ABA transit number work?
• Why do we need bank transit numbers?
• How do I find my bank’s ABA number?

What is an ABA transit number?

An ABA transit number, also known as a routing number, is a nine-digit number used to identify U.S. banks. This unique combination of digits makes it possible for specific financial institutions to easily transfer money to and from accounts. It’s typically used for common types of electronic transactions, such as direct deposits and online bill paying, along with paper check transactions.    

Who issues a routing number?

Routing numbers can only be issued to a bank by a company called Accuity, which serves as the official routing number registrar for the American Bankers Association, or ABA. In order to be eligible for a routing number, a bank must be chartered by the federal government or a state government and have an account with a Federal Reserve bank.

History of the routing number

Routing numbers were originally created by the ABA in 1910. Over the years, the purpose of transit numbers has evolved to adapt to modern-day needs related to the Federal Reserve System, electronic funds transfers, the advent of Magnetic Ink Character Recognition technology (or MICR), interstate banking and the Expedited Funds Availability Act.

How does an ABA transit number work?

ABA transit numbers act like an address and make it easy for banks to electronically transfer money between one another. Chances are that if you receive your paycheck through ACH direct deposit or you pay your bills online or over the phone, you’ve been asked to provide your routing number.

The numbers mean something

Nine digits make up your bank’s unique routing number. Each digit identifies something specific to your bank. Here’s how the digits break down.

• Digits 1–4: Assigned by the Federal Reserve Routing System, the first four numbers in a routing number indicate the city and state where a bank is physically located.
• Digits 5 and 6: These two numbers indicate the Federal Reserve bank that the bank’s electronic and wire transfers route through.  
• Digit 7: This is the Federal Reserve check processing center that the bank was initially assigned.
• Digit 8: This number indicates the bank’s Federal Reserve district.
• Digit 9: The last digit in a routing number is used to verify that the routing number is valid.

Why do we need bank transit numbers?

Routing numbers are an essential part of modern banking. Whenever a check or electronic transaction happens between banks, the ABA transfer number is used to identify the banks responsible for paying or receiving the funds. Without routing numbers, you wouldn’t be able to enjoy banking features like mobile deposits, online bill pay or direct deposit. And it would be much harder for financial institutions to make sure money was moving between the right accounts.

Can a bank have more than one routing number?

Yes. The initial routing number that’s assigned to a financial institution corresponds with the Federal Reserve district and territory where the bank’s physical, principal office is located. If there’s more than one location, a bank may have up to nine extra routing numbers and can request more if needed.

Routing numbers can change due to bank mergers or acquisitions. New numbers might be assigned and old ABA transit numbers sometimes also get retired if a bank closes.

What happens if I use the wrong number?

Since a bank might have multiple routing numbers, it’s a good idea to always make sure you’re using the right number for the specific type of transaction you need to make. For example, your bank might have different routing numbers for branches located in different states or separate routing numbers for electronic payments, ordering checks, or domestic and international wire transfers.

How do I find my bank’s ABA transit number?

You can easily find your bank’s routing number, or ABA transit number, in a few different places.  

How to find it on a check

A check from your bank account features three key numbers along the bottom: the bank’s routing number, your account number and the check number. You’ll find your bank’s routing number in the lower left-hand corner of the check. It’s the first set of numbers when you read from left to right. The middle number is your checking account number, and your check number is last on the right.

Other places to find it

If you don’t have any checks to reference, you can contact your bank, check its website or log into your bank’s mobile app. Or, you can use the ABA’s online lookup. There are also other online databases you can check, but the ABA cautions users to steer clear, as these sites might not always have the most up-to-date information.

What’s next?

Now that you know more about what an ABA transit number is and how it works, you can start taking advantage of some convenient ways to use it. If you’re not already getting your paycheck deposited directly into your account, consider signing up with your employer.

Choosing which savings account is the best option to grow your money might seem overwhelming. If you want to get an idea of just how much your money can grow in an interest-bearing account, the rule of 72 can help.

People generally use the rule of 72 to estimate how an investment will grow over time — it’s also a handy way to determine how long it will take to save a certain amount of money via interest alone. Let’s review how the rule of 72 can help you make a plan to save a specific amount or save for a particular goal over time.

• What is the rule of 72?
• How to use the rule of 72
• How can I apply the rule of 72 to my savings account?

What is the rule of 72?

The rule of 72 is a quick “back-of-the-envelope” calculation that can help you estimate how long it’ll take to double your money at an expected rate of return. The rule of 72 is a rough estimate — for an exact calculation, check out Credit Karma’s compound interest calculator.

How to use the rule of 72

To see how long it will take to double your funds using the rule of 72, simply divide the number 72 by the expected rate of return of your investment.

Let’s look at an example. Say you’ve got $1,000 deposited in an account that’s earning an annual interest rate of 3%.

72 ÷ 3 = 24

According to the rule of 72, it’ll take about 24 years for your initial investment of $1,000 to double to $2,000 at an expected annual growth rate of 3%. If you wanted to double your cash faster, you’d have to either continue depositing money into the account or find another account or other investment product with a higher interest rate — heads-up though, even high-yield savings accounts rarely earn interest at rates of 3% or higher.

The rule of 72 can also help you work backward to determine what interest rate you need if your goal is to double your money within a certain amount of time.

Let’s look at a calculation of what interest rate you’d need to double your money in 35 years.

72 ÷ 35 = 2.06

According to the rule of 72, you’d need an interest rate of 2.06% in order to double your money every 35 years.

Here’s a table with some more examples.

Take note: If you’re putting your money in a savings account, you likely won’t find rates higher than 3%. But if you decide to invest your money, you might find higher annual rates of return (though at higher risk to your invested funds).

How can I apply the rule of 72 to my savings account?

For a savings account, interest is the money that a financial institution pays you as an incentive to keep your funds deposited in its account. Called an annual percentage yield, or APY, it’s expressed as a percentage.

Financial institutions calculate interest as either compound interest or simple interest. Compound interest is the amount you earn on your original investment (and any additional deposits you make) plus an amount earned on any existing accrued interest. Calculating interest this way can help power-charge your savings, helping to grow your money faster.

Simple interest, on the other hand, only accrues on your deposits and not on earned interest. Simple interest is rare.

The rule of 72 can give you a rough calculation of how long it will take to double your initial deposit into a savings account with compound interest — or what interest rate you need to double your money within a certain amount of time.

For example, if you’re saving with a specific goal in mind, like building up your emergency fund or saving for a large purchase, putting your money in a savings account rather than leaving it in a no-interest checking account may help you grow your money faster.

How to compare interest rates using the rule of 72

Using the rule of 72, you can compare interest rates from different lenders to determine which bank offers the best return on your deposit.

If you want to double your money within a certain amount of time — let’s say 30 years — you’ll want to look for a savings account that yields at least 2.4% interest. Here’s the math.

72 ÷ 30 = 2.4%

This means that whether you invest $1,000 or $10,000 into an account with a 2.4% APY, your investment will double in 30 years, thanks to compound interest.

If you’re weighing out savings account offers from different banks, you can also use the rule of 72 to roughly calculate how quickly your savings would double on interest alone at the banks’ advertised rates. The higher the interest rate, the faster your money will grow — but it’s a good idea to consider other factors, like ATM network and online tools, when choosing a bank as well.

What’s next?

Now that you understand how the rule of 72 works, you can use it to quickly calculate the time it will take to double your savings or figure out what interest rate you’ll need to meet your savings goals fastest.

Remember to shop around for a savings account that will yield the best return on your deposit, while also considering how accessible your funds are.

Calculate your savings

Use our savings calculator to find out how much you may be able to grow your savings and how long it could take.

Updated April 17, 2023

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Sarah Archambault

Pros

• Ability to compare multiple quotes quickly 
• Referral program
• Licensed in all 50 states and Washington, D.C.

Cons

• Quoted rate may change

What you need to know about Gabi auto insurance

Founded in 2016 and headquartered in San Francisco, Gabi is an online insurance broker that helps customers compare auto insurance rates from top insurance companies at no charge. 

Gabi partners with insurers to help drivers get multiple quotes for coverage and rates. In addition to auto insurance, companies in Gabi’s network offer quotes for landlord, renters, condo, umbrella and home insurance. 

Ability to compare multiple quotes quickly

Gabi’s technology uses your account credentials for your current insurance policy or a PDF of your policy declaration page to access details on your existing insurance coverage. It then compares your current policy to quotes from its insurance company network to find the lowest rate. And if the companies in Gabi’s network can’t offer a cheaper policy, Gabi will let you know.

Gabi says it can do all of this in less than two minutes — unless its technology isn’t able to verify information about your current coverage automatically. If that happens, the process could take up to two days. But the wait could be worth it — Gabi states on its website that it’s typically able to save two-thirds of its customers money, with an average of $961 a year. 

Quoted rates might change

The quotes you initially receive are based on the information you provide when you sign up with Gabi. If the insurance provider you choose finds any discrepancies when it checks your driving record and insurance history, your quote might change. But before you buy a policy, you’ll have a chance to review the final quoted rate. 

Referral program

For every friend you refer to Gabi who signs up and gets a quote, Gabi will send you a $25 Amazon gift card (if you live in Maryland, you can’t get more than two gift cards). In order to qualify, your friend must be signing up with Gabi for the first time, can’t be a member of your household or on your insurance policy, and have proof of existing insurance. 

A closer look at Gabi auto insurance

If you’re trying to decide if Gabi auto insurance is right for you, here are a few more things to consider.

• Licensed in all 50 states — Gabi is a licensed broker in all 50 states and Washington, D.C. 
• Offers motorcycle and RV insurance quotes — Gabi also offers motorcycle and RV insurance quotes, but you’ll need to contact a Gabi insurance agent for more info. 
• Credit check might be required — Gabi doesn’t check credit scores during the quoting process, but some of the company’s insurance partners may do a soft credit pull as part of their approval process (this won’t affect your credit scores, though). 

Is an auto insurance policy through Gabi the right fit for you?

Gabi could be a good option if you’re short on time but want to shop around and see if you can get a better rate than what you’re currently paying for car insurance. It may also be ideal if you’re shopping for several types of insurance at once and want help identifying the best rates and potential discounts for bundling policies.

How to get an auto insurance quote through Gabi

To get quotes through Gabi, you’ll need to sign up for an account at gabi.com, enter some information about your current auto insurance policy and connect your insurance account. Gabi will then provide multiple quotes that you can compare. 

Even though Gabi compares rates from different insurance providers, you may still want to do some insurance shopping with other carriers before you decide to switch to a policy through Gabi. This can help you make sure you’re buying the best possible policy for your insurance needs within your budget. Read our article on understanding car insurance quotes to learn more about quotes and comparing rates.

Not sure if an auto insurance policy through Gabi is right for you? Consider these alternatives.

If you aren’t sure if Gabi auto insurance is right for you, here are a couple of other insurance companies to consider. 

• Metromile: Metromile may be ideal for someone who wants their insurance rates based largely on how many miles they drive.
• Farmers Insurance: Auto insurance from Farmers could be good if you’re looking for a wide range of coverage options.

Updated March 29, 2022

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Sarah Archambault

Pros

• Ranked highest in customer satisfaction for its claims process
• May be able to get back some of your annual premium with a dividend policy
• Auto policies come with free perks

Cons

• Not available in Hawaii
• Availability of discounts and dividend policies varies by state

What you need to know about Amica auto insurance

Headquartered in Rhode Island, Amica Mutual Insurance Company has been in business for more than 100 years and is the oldest mutual insurer of cars in the U.S. In addition to auto insurance, Amica offers a range of other insurance products, including homeowners, marine, personal umbrella liability and life insurance.

High customer satisfaction

Amica received top ranking for customer satisfaction throughout the auto claim process in the J.D. Power 2019 U.S. Auto Claims Satisfaction Study. Historically, the company has also scored better than most for customer satisfaction with its shopping experience. The company earned high marks for policy offerings, price, service from a call center representative and overall satisfaction in the J.D. Power 2019 Auto Insurance Shopping Study. But notably, it ranked below average for mid-size insurers in the J.D. Power 2020 Auto Insurance Shopping Study.

Amica also had fewer customer complaints than other insurance companies of its size in the market in 2018, according to the latest data available from the National Association of Insurance Commissioners.

Potential to get some of your premium back with a dividend policy

In addition to traditional auto insurance policies, Amica also offers dividend policies. While both policies provide the same coverage, you might pay a little more out of pocket for a dividend policy. But in return, you could get back up to 20% of your annual premium.

If you’re eligible for a dividend payment, you can choose to receive your returned premium via check or direct deposit or apply the money toward a future policy premium. But take note that dividend policies aren’t available to residents of California, Florida, Hawaii, Massachusetts, Missouri, New Jersey, North Carolina or Texas.

Auto policies come with free perks

Amica auto policies come with some free extras not commonly offered by other carriers, including …

• Free lock replacement for lost keys
• Free repair if your airbag is deployed
• Lost wage reimbursement if you have to appear in court
• $1,000 for bail bonds
• Free auto glass repairs if the glass doesn’t need to be replaced
• Reimbursement for the value of a new car — versus the depreciated value — if your car is totaled within your first year of ownership

You can also upgrade to Amica’s premium policy package — Platinum Choice Auto — or buy coverage from this package a la carte in states where it’s offered. With Platinum Choice Auto’s Good Driving Rewards coverage, you can earn points that can be used to lower or eliminate your deductible or prevent your rates from going up after a claim.

The Platinum Choice Auto policy also includes full glass coverage (meaning you won’t pay a deductible for damaged glass), identity fraud monitoring and robust rental coverage. If you need a rental car while your vehicle is in the repair shop after a claim, Amica will give you $5,000 toward a similar rental, with no daily limit. This is unusual — some insurers set daily limits.

A closer look at Amica auto insurance

If you’re trying to decide if Amica auto insurance is right for you, here are a few more things to consider.

• Availability — Amica doesn’t offer auto insurance in Hawaii.
• Coverage options — In addition to the unique coverage options noted above, Amica provides standard types of insurance coverage, including property damage and bodily injury liability, medical payments, personal injury protection, uninsured/underinsured motorist, collision, comprehensive, rental reimbursement and roadside assistance, or towing and labor coverage.
• Standard discounts — Depending on where you live, Amica offers standard auto policy discounts, including discounts for bundling, loyalty, autopay, paying your entire premium in full and multiple vehicles. You may also qualify for discounts if your car is equipped with certain safety features, such as electronic stability or adaptive headlights, or an approved anti-theft device. Full-time students who maintain a B average, or young drivers who complete a driver training program, may also get a discount.
• Claims process — Claims can be submitted online, through Amica’s mobile app or by phone. If you submit a claim online, you’ll be able to track your claim and upload and view related documents when you sign into your account.

Is an Amica auto insurance policy the right fit for you?

Car insurance from Amica might be a good option for safe drivers who are looking for ways to reduce their insurance rates. For example, you could qualify for a discount if you remain claim-free for three years (glass and towing don’t count). And if you have more than one car or other insurance policies to bundle — such as renters or home insurance or a personal umbrella liability policy — you could save even more.

Amica also might be a good fit if you want to add a student to your policy. If they’re willing to take a driver training course and keep their grades up, you could save.

But if you live in Hawaii, don’t have the best driving record or don’t qualify for any policy discounts, you might want to look elsewhere for car insurance.

How to get an auto insurance quote from Amica

To get a quote from Amica, you can call or go online to amica.com.

Before you decide to get a policy with Amica, be sure to shop around. Gather and compare quotes from multiple insurance companies to help find the best coverage for your needs. Read our article on understanding car insurance quotes to learn more.

Not sure if an Amica auto insurance policy is right for you? Consider these alternatives.

If you aren’t sure whether Amica auto insurance is right for you, here are some other car insurance companies to consider.

• The General: This insurance company may be ideal if you have a less-than-perfect driving record.
• Liberty Mutual: Liberty Mutual may be good for someone who wants to lower their deductible over time.

Updated March 29, 2022

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Sarah Archambault

Pros

• Ability to save based on how much you drive
• Offers coverage for rideshare drivers
• Guaranteed repair program

Cons

• Not much more than standard coverage options
• Available in only 11 states
• Low customer satisfaction

What you need to know about Mercury auto insurance

Founded in 1962 and headquartered in California, Mercury General Corporation focuses on providing its range of insurance products — including home insurance, condo insurance, renters insurance, personal umbrella coverage, commercial business insurance and business auto coverage — at low rates. Mercury serves customers in 11 states through its network of independent agents and brokers.

Coverage options are pretty basic

Mercury doesn’t offer much more than basic coverage options like liability, collision, comprehensive, medical payments, personal injury protection and uninsured/underinsured motorists insurance, roadside assistance and rental car reimbursement coverage.

The only beyond-basic coverage Mercury offers is ridesharing insurance. This coverage is aimed at protecting Lyft, Uber or other rideshare drivers during times when their ride-hailing app is on, but before they pick up a customer (coverage by the ride-hailing company usually kicks in once there’s a pickup). A number of other insurers offer this type of coverage.

Low customer satisfaction

When it comes to customer satisfaction, Mercury scored below average in almost every category in the J.D. Power 2019 U.S. Auto Claims Satisfaction Study. And in 2019, Mercury Insurance Company had a higher number of customer complaints than usual for insurance companies of its size in the market, according to the National Association of Insurance Commissioners.

Potential to save based on how much you drive

Mercury’s RealDrive program offers the ability to save based on the number of miles you drive. You’ll get a 5% policy discount just for signing up for the program and you may be able to reduce your premium by even more after you verify your miles. The fewer miles you drive, the more you could save on your insurance rate.

A closer look at Mercury auto insurance

If you’re trying to decide if Mercury auto insurance is right for you, here are some more things to consider.

• Limited availability — Mercury offers auto insurance only in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia.
• Mechanical protection option — Mercury offers several mechanical breakdown plans to help protect your vehicle after its warranty expires. Regular wear and tear aren’t covered, but each plan comes with extras such as rental vehicle assistance, 24-hour roadside assistance and the ability to use any licensed U.S. repair facility.  
• Standard discounts — Mercury offers standard discounts, including a multi-car discount, good student and good driver discount, discounts for policy bundling, using e-signatures, having an anti-theft device and paying your policy in full.
• Claims — You can file a claim at any time, online or over the phone.
• Guaranteed repair program — After you file a claim, if you choose one of Mercury’s authorized repair shops, Mercury will guarantee all repairs for as long as you own your vehicle.

Is a Mercury auto insurance policy the right fit for you?

Mercury might be a good option for drivers who want basic auto insurance coverage options, or those who have short commutes or just don’t drive often.

Mercury may also be good for rideshare drivers looking for extra protection while “on the clock” but in between fares.

But if you don’t live in a state where Mercury offers auto insurance, want the ability to file claims online, or want less-common types of coverage or a wide range of discount options, you’ll need to consider other auto insurers.

How to get an auto insurance quote from Mercury

To get a quote from Mercury, you can go to mercuryinsurance.com, call 1-800-956-3728 or visit a local agent.

But before you decide to get a policy with Mercury, be sure to shop around. Gather and compare quotes from multiple insurance companies to help find the best coverage for your needs. Read our article on understanding car insurance quotes to learn more.

Not sure if an auto insurance policy from Mercury is right for you? Consider these alternatives.

If you aren’t sure Mercury auto insurance is right for you, here are a couple of other car insurance companies to consider.

• Amica Mutual: Amica could be a good option for drivers who prefer an insurer with top customer satisfaction ratings.
• Allstate: Allstate might be a fit for someone with an excellent driving record who’s looking for safe-driver discounts.

Updated August 14, 2023

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Sarah Archambault

Pros

• Option to lower your deductible over time
• Ability to get a newer car if yours is totaled
• Accident forgiveness available to those who qualify

Cons

• Discounts vary and may not be available at all, depending on the state you live in
• Customer satisfaction is average when it comes to shopping and claims process

What you need to know about Liberty Mutual auto insurance

Headquartered in Boston and founded in 1912, Liberty Mutual Insurance is the fifth-largest global property and casualty insurer. The company offers a range of insurance products, including home, auto, renters and property-casualty insurance as well as commercial and specialty insurance.

Average customer satisfaction

Liberty Mutual scored about average in the J.D. Power 2019 Insurance Shopping Study and U.S. Auto Claims Satisfaction Study. But the insurer also had fewer customer complaints than usual for insurance companies of its size in the market in 2019, according to the National Association of Insurance Commissioners.

Ability to lower your deductible over time

Liberty Mutual helps members save in the event of an unexpected accident with its Liberty Mutual Deductible Fund. In certain states, for $30 per year, you can lower your deductible by $100 each year.

Some other insurance companies, such as Nationwide and Allstate, offer the ability to reduce your deductible, but you need to maintain a safe driving record.

Better car replacement

Liberty Mutual offers optional Better Car Replacement coverage. If your car is declared a total loss, Liberty Mutual will not only replace it, but also give you the money for a vehicle that’s one model year newer and has 15,000 fewer miles than your current car. For example, if you total a 2016 model with 55,000 miles on it, you’ll be reimbursed for a replacement 2017 model with just 40,000. But, again, keep in mind the availability of this program varies by state.

In some states, Liberty Mutual also offers optional new-car replacement, which will reimburse you for a new car if yours is totaled.

Accident forgiveness

Liberty Mutual’s Accident Forgiveness protects your rate from going up after your first accident. In order to qualify, you need to be accident-free for five years and have no moving violations. And if you’re under 25, you need to have five consecutive years with no accidents or violations before Liberty Mutual will forgive your first accident. Keep in mind that this optional coverage isn’t available to California residents.

A closer look at Liberty Mutual auto insurance

If you’re trying to decide if Liberty Mutual auto insurance is right for you, here are a few more things to consider.

• Special car insurance coverage for teachers. In some states, teachers can get free add-on coverage that provides protection if their vehicle is vandalized on school property or damaged while being driven on school business along with coverage for stolen teaching materials or school-owned property.
• Coverage options. Beyond special car insurance for teachers, Liberty Mutual offers typical auto insurance coverage options, such as liability, collision, comprehensive, roadside assistance, uninsured motorist, medical payments, personal injury protection, rental car reimbursement and towing and labor coverage. Liberty Mutual also offers lifetime repair guarantee and original parts replacement coverage.
• Save with safe driving. In states where this program is available, safe drivers can save up to 30% off their premium with Liberty Mutual’s RightTrack® program. Along with your smartphone, Liberty Mutual will use a device to track your driving habits, rewarding safe drivers in this usage-based insurance program.
• Range of discounts. Liberty Mutual offers a bunch of possible discounts that vary in availability by state, including discounts for having advanced safety features and anti-theft devices, driving hybrid or electric cars, remaining accident- or violation-free, policy bundling, being a good student and even buying your policy online.
• Claims. You can file a claim and manage it online. If your car is drivable, you can use the Liberty Mutual mobile app to send photos of the damage and get a quick estimate.

Is a Liberty Mutual auto insurance policy the right fit for you?

With Accident Forgiveness, safe-driving discounts and the RightTrack program, Liberty Mutual might be a good option for safe drivers who are looking for ways to save money on their car insurance premium.

It could also be a good option for teachers looking for extra protection when on school grounds or driving for school-related business.

How to get an auto insurance quote from Liberty Mutual

To get a quote from Liberty Mutual, you can go online, call or visit a local agent — though applying through libertymutual.com can help you save 12% or more if you’re in a state where that program applies.

But before you take that step, it’s a good idea to gather and compare car insurance quotes from other insurers. Shopping around can help you find the best policy for your needs and budget. Read our article on how to compare car insurance rates to learn more about the process.

Not sure if an auto insurance policy from Liberty Mutual is right for you? Consider these alternatives.

Here are some other lenders to think about if you aren’t sure about Liberty Mutual.

• The General: This insurance company may work if you have a history of driving violations or accidents or lapsed insurance coverage.
• USAA: USAA could be good for someone who’s currently serving in the military or a veteran.