Between auto insurance premiums, loan payments, maintenance, and repairs, owning a vehicle can cost many drivers thousands of dollars every year. Fortunately, your tax refund allows you to reduce those expenses, potentially saving you even more money than you received through your return in the first place. If you’re looking for a way to maximize the financial impact of your refund, below are a few tips for tackling your vehicle-related expenses.

4 Ways to Use Your Tax Refund to Lower Your Auto Expenses

1. Prepay Your Auto Insurance

Most auto insurance companies give generous discounts to drivers who pay their entire policy upfront instead of making monthly payments. Over the course of the year, this investment could save hundreds of dollars that you can put toward your other debts or save for a rainy day.

2. Pay Down Your Loan

Most auto loans have interest rates of 6% to 9%, spread over three to five years. If your tax refund is around $2,000, putting it all toward your car loan could shave a year or two off the term and save you thousands of dollars in interest.

3. Pay Off Traffic Tickets

Unpaid traffic tickets can have serious consequences, both financially and legally. In Ohio, you may not even be able to renew your registration if you have a single unpaid speeding ticket, so using your refund to pay fines and penalties can be an excellent long-term investment.

4. Take Care of Maintenance Issues

Minor car problems often turn into serious, expensive issues. Taking care of these concerns early saves a lot of money in the long run. Using your tax refund on engine work or a new set of tires can prevent accidents and subsequent repair bills that you might not be able to afford in the future.

For over 40 years, Ohio Insurance Center Agency has helped drivers throughout Hamilton, Butler, and Warren counties get the coverage they need at the best possible rates. As an independent agency, they work with a variety of the industry’s best auto insurance providers and pride themselves on covering everyone, regardless of your age or driving record. To request a free insurance quote, visit their website or call (513) 522-6300 today, and follow their Facebook for more tips and advice.