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Going for a dip in your own backyard pool can be one of life’s greatest pleasures, but installing one requires a significant financial investment.

To avoid high prices, you might want to go the above-ground pool route. A less-expensive option to in-ground pools, above-ground pools are easier to install. According to HomeAdvisor, the average cost to install an above-ground pool runs between $1,011 and $6,011, with a typical homeowner paying around $3,452. However, the same site reports that if you want an oversized or custom above-ground pool, your total cost may be closer to $11,200.

Don’t have the cash on hand to foot the costs? Here’s a look at different above-ground pool financing options, steps to finance your above-ground pool, and tips to shore up funds for your home improvement project.

Above-Ground Pool Costs

As mentioned, the average cost to install an above-ground pool is $3,452. Swimming pool installation costs depend on a handful of factors:

•   Size: As you might expect, the larger the pool and the higher the wall, the more expensive it is.

•   Shape: The shape of the pool also impacts the price tag. According to HomeAdvisor, rectangular pools are the least costly ($820 to $2,800), followed by round pools ($1,150 to $3,000). Oval pools are the most expensive and can range from $1,290 to $4,840.

•   Material: Above-ground pools can be made of steel, resin, or aluminum. While steel pools are the cheapest, they are also susceptible to corrosion or oxidation. Aluminum pools are the costliest, but they won’t rust. If you’re looking for something in the middle, the resin is rust-resistant and less pricey than aluminum.

Recommended: The Top Home Improvements to Increase Your Home’s Value

Financing Options for Above-Ground Pools

Here are a few above-ground pool financing options to consider:

Personal Loan

A personal loan is also known as a home improvement loan. The major draw of a personal loan is that it can be used for many different kinds of expenses. So if you plan a cluster of home improvement projects to spruce up your place, a personal loan can be used to fund those projects.

Amounts for personal loans typically range from $500 to $100,000, with terms between two and seven years. As of August 2024, the average interest rate for a 24-month personal loan is 12.33%, but you can expect to find rates anywhere from 8% to 36%.

While personal loans can involve a relatively simple online application, lenders will do a hard pull of your credit, which can temporarily ding your credit score. Plus, you’ll need to look out for fees, such as an origination fee, which is an upfront, one-time cost. If you pay off your loan early, some lenders might also hit you with a prepayment penalty to offset any losses in interest.

A personal loan calculator can show you how much your monthly payments can be based on the loan amount, interest rate, and repayment terms.

Home Equity Loan or Line of Credit

As a homeowner, you can borrow against the equity in your home. A home equity loan or home equity line of credit (HELOC) usually features lower interest rates and lower fees than other types of above-ground pool financing. Plus, there are generally lower credit requirements.

A home equity loan is an installment loan in which you receive the proceeds in a lump sum upfront. A HELOC offers a credit limit and allows you to borrow as you go. The interest on a home equity loan or line of credit is tax deductible when used for home improvement projects. Plus, the application process can be simpler. That said, you should be mindful that you risk losing your home if you fall behind on your payments.

Credit Card

The main advantage of using an existing credit card to purchase an above-ground pool and cover installation costs is that you don’t have to apply for a new line of credit or loan. Plus, there is no hard pull on your credit.

The downside: Credit cards usually have higher interest rates and late payment fees. As of August 2024, the average interest rate on credit cards was 23.27%. If you consider putting your above-ground pool on a credit card, you’ll want to pay off the balance as quickly as possible.

In-Store Financing

Another option for above-ground pool loans is in-store financing or directly from the dealer. One plus of getting your pool financed from the store is that the application process can be fairly quick.

However, you’ll want to be watchful for potentially higher interest rates and fees. Plus, there might be limited financing options or no financing available for the pool you’ve had your eye on.

Savings and Cash Payment

If you can pull funds out of your savings and pay for the pool in cash, you won’t have to worry about applying for a line of credit or being responsible for monthly payments. Plus, you won’t have to pay interest, which can ramp up the total cost of your home improvement project.

However, tapping into your savings means less money for other home improvement projects, financial goals, and emergencies. Consider the opportunity cost.

Pros and Cons of Each Financing Method

Let’s look at the advantages and disadvantages of each financing option:

Personal Loan

While getting funding for a personal loan involves a reasonably simple, speedy application process, the interest rates are usually higher than a home equity loan or HELOC. You’ll likely need a higher credit score to qualify for the best interest rates and most flexible terms.

You’ll also want to be aware of fees, such as prepayment penalties, origination fees, and late fees. Depending on the lender and your unique financial situation, various repayment terms may be available.

Home Equity Loan or Line of Credit

Home equity loans and HELOCs typically have lower interest rates than credit cards and personal loans, but you’re betting on your home.

The credit score requirements are normally lower because these are essentially second mortgages secured by your home. The minimum credit score required for home equity loans is usually 680.

Home equity loans usually have fixed interest rates, so you can expect predictable payments throughout the loan’s duration.

HELOCs, on the other hand, have variable interest rates. That, coupled with the fact that you pay as you go, means your monthly payment can change. However, this financing option might be a good fit for multiple home improvement projects or when the amount is likely to change.

If you miss a payment during the draw period, there may be a grace period after the payment due date. You could be charged a late fee or other penalty if you make a payment during this time. However, the lender may not report the late payment to the credit bureaus. If you fail to make a payment after the grace period ends, the lender will likely report it to the credit bureaus, which can hurt your credit score.

Credit Card

A major advantage of a credit card is that you don’t have to apply for a new loan or line of credit. You can use your current credit card to cover the costs of your above-ground pool. Plus, you need to make only minimum payments. On the other hand, you’ll pay a lot in interest if you make only minimum payments.

In-Store Financing

In-store financing can be a convenient, easy-to-apply option. However, repayment terms might be limited, and financing might be available only for certain pools. Also, interest rates might be higher than other options.

Savings and Cash Payment

If you can fork over the money to cover the cost of installing your pool, you don’t have to fret over repayment plans, meeting lending criteria, and paying interest. However, that’s less money you’ll have stashed away for other financial goals.

Recommended: What Are the Different Types of Debt?

Steps to Finance Your Above-Ground Pool

To make for a smoother process and scoop up the best rates and terms on your financing, mind the following steps:

Determine your budget. Do your homework to determine the cost of installing an above-ground pool. This involves looking at models of different sizes, materials, and shapes. You’ll also want to get an estimate for shipping and installation costs.

Build your credit score. The better the score, the more options you’ll likely have, and the less expensive the financing. Practice good credit habits, such as making on-time payments, keeping cards you don’t use open, avoiding overspending, limiting credit applications, and keeping your credit usage low.

Research financing options. Researching the financing options for your pool installation can help you find the best loan for your needs, budget, and situation. See if you can get preapproved online from a few different lenders. That way, you can gauge how much you’ll be approved for before officially applying.

Gather the required documentation. Common documents you’ll need to gather before applying include a government-issued ID, such as a driver’s license or passport, proof of address (i.e., a past utility bill), proof of employment and steady income (i.e., a recent paycheck), your Social Security Number or individual taxpayer identification number (ITIN). Some lenders may ask to see your education history.

Apply. Once you’ve narrowed down your financing choices and lenders, it’s time to submit your application. Make sure you’ve provided all the required information and carefully review it for errors.

Tips for Saving Money on Your Above-Ground Pool

To keep your above-ground pool costs in check, look for financing options with lower interest rates, no or low fees, and flexible terms. Flexible terms help you stay on top of your payments. As with any home project, it also helps to keep track of costs to ensure you’re staying within your budget.

If affordability is at the top of your list, consider pools that are smaller in size, rectangular, and made of less expensive materials. This could potentially also lower your pool’s maintenance and energy costs.

Understanding the Long-Term Costs

Beyond the installation, you’ll want to factor in the ongoing, long-term costs of having a pool. This includes maintenance costs such as cleaning the pool, checking the pH and chlorine levels, and maintaining equipment.

And don’t forget to fold in energy costs and what you’ll need to pay for cleaning supplies such as filters. Generally, chlorine pools will bump up the cost of your overall maintenance, as the upkeep costs more than saltwater counterparts.

Apply for a Home Improvement Loan

Home improvement loans often range between $5,000 to $100,000, and you may be able to get funding on the same business day. You can get a loan from many banks, credit unions, or online lenders and, as mentioned, the funds can be used to pay for just about anything.

The Takeaway

You can go many ways to secure above-ground swimming pool financing. To narrow down the best choice for you, do your homework to figure out exactly the type of pool you’d like and the costs involved.

From there, you can explore your options. It’s important not to take on more debt than necessary. After all, that’s a financial responsibility you’ll be on the hook for. By taking the proper steps, you can figure out the best route for you.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much does an above-ground pool cost?

According to HomeAdvisor, the average cost to install an above-ground pool ranges between $1,011 and $6,011, and homeowners spend an average of $3,452. However, larger custom pools that you build from scratch can cost up to $11,200.

What credit score do you need to finance?

The credit score you need for above-ground pool financing depends on the type of financing. Generally, the minimum credit score for a home equity loan or HELOC is 620, but lenders like to see a minimum score of 680. Personal loans are usually more accessible if you have less-than-perfect credit, and the minimum credit score can be as low as 580.

How long do most people finance a pool?

It depends on the type of above-ground pool financing. Personal loan repayment terms range from two to seven years, and if you’re taking out a HELOC, the draw period is usually 10 years.

Photo credit: iStock/enigma_images

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q424-001

Maybe the asphalt on your driveway is starting to break apart and is more rocky than you’d like. Or perhaps you desire a fresh look and smoother experience going down your driveway.

Whatever the reason, giving your driveway a makeover can add to your home’s overall aesthetic and boost its functionality. Research reveals that 79% of Realtors thought a home’s curb appeal was essential to attracting potential buyers.

That said, driveway paving comes with a hefty price tag. According to estimates from HomeAdvisor, the cost depends on the size and materials, but can be anywhere from $2,000 to $10,000, with $6,000 being the average.

Can you finance a driveway if you don’t have the cash on hand to cover the costs? The good news is yes, it’s entirely possible. In order to figure out the best choice for you, you’ll want to be clued in on your options. Here, we’ll walk you through different ways to pay for a new driveway.

Understanding the Cost of Driveway Paving

Tracking home improvement costs? As mentioned, the average cost of driveway paving is $6,000. The main factors that determine how much you’ll be doling out are the size of your driveway and the type of material you’ll be using. As you might expect, different materials require a different investment of time and labor to install.

For instance, while gravel driveways are the least expensive to install, you’ll need to periodically replenish the gravel — ideally, every few years. On the flip side, driveways made of paved stone have the highest costs initially but can last the longest.

Recommended: Personal Loan Guide

Personal Loans for Driveway Financing

Personal loans can be a relatively easy route to financing a driveway paving. Most personal loan amounts range from a few hundred dollars to up to $50,000, while a few lenders have up to $100,000 available.

The terms of the loan repayment can be anywhere from one to seven years, and the APR, which is typically fixed, ranges between 8% and 36%. As of August 2024, the average interest rate on a 24-month personal loan hovered around 12.33%.

Personal loans usually have lower interest rates than credit cards, but the interest can make for an expensive way to borrow. Plus, there might be upfront fees, such as an origination fee, which is usually anywhere from 1% to 6% of your loan amount, and in some cases as high as 10%. While longer loan terms can mean lower monthly payments, you’ll be paying more interest for the loan.

Some lenders feature preapproval online and can offer a speedy application process that you can also do online. Once you’ve been approved for a personal loan, you may be able to receive the proceeds of the loan as soon as within one business day.

However, you should be aware that a personal loan for home improvement is an installment loan, which means you’ll receive the funds upfront and are responsible for making monthly payments from the start. When you apply, lenders do a hard pull on your credit, negatively impacting your credit score.

Home Equity Loans and HELOCs

If you’re a homeowner, you can borrow against the equity in your home to take out a home equity loan or home equity line of credit (HELOC) to finance a driveway paving. Both are second types of mortgage, so you’re betting against your house. Home equity loans and HELOCs can be good ways to borrow money for a relatively low interest rate and lower fees.

Currently, the average interest rate on a home equity loan is 8.35%, and the average national interest rate on a HELOC is 8.69%.

Like a personal loan, a home equity loan is an installment loan, so you’ll receive the proceeds for the loan in a single lump sum. From there, you’ll have a fixed monthly payment for which you’re on the hook.

A HELOC is a type of revolving loan. Like a credit card, you’ll be approved for a limit and borrow as you need, up to the limit, for the draw period, which usually lasts 10 years. You pay as you go, and might be able to make interest-only payments during the draw period. Because a HELOC lets you borrow funds as needed, it could be a better fit for ongoing or multiple home improvement projects with an undetermined total price tag.

Unlike unsecured forms of credit, home equity loans and HELOCs can be easier to approve. That said, both types of loans require a hard pull of your credit, which may temporarily bring down your credit score by a few points. And because you’re putting up your home as collateral, if you put a halt on your payments, you risk foreclosure and losing your home.

Recommended: The Top Home Improvements to Increase Your Home’s Value

Contractor Financing and Payment Plans

Another option for financing driveway paving is to borrow directly from a contractor. Some contractors partner with a third-party lender that provides financing options. These may include same-as-cash options (which we’ll get to in a bit) or monthly payments that you pay back over the length of the loan.

The pluses of getting financing from a contractor are that it’s convenient and straightforward. The contractor may be able to offer you a flexible plan to meet your needs in financing for driveway paving. The approval process might also be quicker.

However, minuses of contractor financing may include higher interest rates. Plus, you’re tied to the contractor should issues arise during the project.

Credit Cards and Same-as-Cash Options

You can also use a credit card. If you don’t want to jump through the hoops of applying for a new home improvement loan and have a hard pull on your credit, you could use a credit card to finance a new driveway.

That said, credit cards typically have higher interest rates than other types of financing, which ratchet up the costs of your home improvement project. Currently, the average interest rate for credit cards is 21.76%.

Contractors may also offer a “same-as-cash” option. Also known as deferred interest financing, these loans feature a no-interest period, usually between three and six months. However, interest will accrue if you don’t pay off your balance when the promotional period ends. Typical interest rates on “same-as-cash” offers range between 25% to 30%, which makes for an expensive purchase.

If you’re considering the same-as-cash option, you might also want to mull over a zero-balance transfer credit card. Interest also doesn’t accrue on purchases until the end of the promotional period, and these credit cards have zero-interest periods that are up to 20 months, so you could have more time to pay it off.

The Takeaway

Figuring out the best option for financing a driveway improvement means knowing what’s available and weighing the pros and cons of each. Before deciding, estimate how much you anticipate spending on your driveway financing and then pore over your options.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much does driveway paving typically cost?

It depends on the size of your driveway and the materials used, but driveway paving typically costs anywhere from $2,000 to $10,000, with an average cost of $6,000.

Can I use a home improvement loan for driveway paving?

You can use a home improvement loan for a driveway paving project. You’ll want to look for a loan with the amount needed plus the lowest terms and flexible rates possible.

Are there government programs for driveway improvement financing?

Government home repair assistance programs exist, and you’ll need to check if you qualify for a home improvement loan. Eligibility criteria may include income, age, location, property type, and if you belong to a specific group.

Further, single-family housing repair loans and grants can be available at the state, county, and city levels. You’ll need to check locally to see what’s out there and how to qualify for a loan or grant to spruce up your home.

Photo credit: iStock/irina88w

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q424-005

Today, the term “sunroof” is typically used to refer to any panel or window in the roof of a vehicle that may pop up or slide open to allow air to circulate inside the cabin. A moonroof is a type of sunroof that features a stationary glass panel. There are many different sizes, shapes, and styles of sunroofs.

If you’re deciding which one to choose for a new car, we’ll share the differences and the pros and cons of each.

What Is a Sunroof?

“Sunroof” has become a generic term for any panel or window in a car’s roof. More specifically, a sunroof is usually a panel located on the top of a vehicle that slides back to reveal a window or opening in the roof. The panel is usually opaque, matching the vehicle’s body color. It can be electric or manual.

Sunroofs can come in sliding or pop-up versions. Sometimes, a sunroof’s panel can be completely removed.

What Is a Moonroof?

“Moonroof” is a term introduced in 1973 by a marketing manager at Ford. A moonroof is a type of sunroof, made of transparent glass. It may be stationary or slide back, but can’t be removed. New cars typically have moonroofs instead of sunroofs.

A “lamella” moonroof has multiple glass panels that slide back and provide a scenic view. A panoramic moonroof has fixed glass panels that cover most of the vehicle’s roof and extend to the backseat.

Moonroof vs Sunroof Differences

As mentioned above, a sunroof is typically a painted metal panel that blends into the rest of the car roof and that slides open or can be removed. A moonroof is essentially a window in the roof, whose glass panel may or may not slide open.

Pros and Cons of a Sunroof

Pros and Cons of a Moonroof

Because a moonroof is a type of sunroof, most of the sunroof pros and cons above also apply to moonroofs. However, there are a few additional considerations:

Safety Considerations for Sunroofs and Moonroofs

As mentioned, it can be tempting to reach through or stand up in a vehicle with a sunroof or moonroof. For safety reasons, once the car is turned on, the driver and passengers should be seated and buckled.

Sunroofs and moonroofs also make a car more susceptible to break-ins, since there’s one more entry point for thieves to smash or pry open.

In case of a collision, there is additional risk of glass shattering, which can cause injury.

Recommended: How Much Does Car Insurance Go Up After an Accident?

Maintaining a Sunroof or Moonroof

As with any car feature, regular maintenance of your sunroof is recommended. And knowing how to DIY can help you save money on car maintenance. Mostly, that means keeping it clean. Here’s how:

1.    First, use a hand brush to sweep debris off the roof.

2.    Wipe down moving parts with a microfiber cloth.

3.    Clean the glass with a product without ammonia or vinegar.

4.    Lubricate moving parts with a lightweight automotive grease or WD-40.

How to Choose: Sunroof or Moonroof

When deciding between a moonroof and sunroof, consider your area’s climate and how much use you expect to get from the feature. It can also be helpful to ask friends or family who have experience with one or the other style for their opinions.

If money is a concern, a sunroof will cost $1,000-$1,500 more in a new car. Not having a sunroof can also help lower your auto insurance premiums.

In the end, it comes down to personal preference.

Recommended: How to Lower Car Insurance

The Takeaway

A sunroof refers to any opening or window in a car roof. A moonroof is a type of sunroof that usually features a stationary glass panel. There are many types, sizes, and styles of sunroofs, from electric to manual, pop-up to removable. Sunroofs will cost more upfront and possibly in maintenance fees and insurance. However, drivers and passengers will enjoy better light and air circulation, even without the air conditioner.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Is a moonroof better than a sunroof?

Moonroofs do have advantages over sunroofs, including a lack of mechanical parts that require regular maintenance and can break down. Otherwise, it’s a matter of personal preference.

What are the disadvantages of a sunroof car?

A sunroof adds to the cost of the vehicle and likely to your insurance premiums. Sunroofs also make a car more vulnerable to break-ins and break-downs of mechanical parts.

Photo credit: iStock/AscentXmedia

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q424-006

If your car is totaled in an accident, you may expect the insurance payment to come to you as the car’s owner. Not necessarily. If you financed or leased your car, the insurance company will make sure the lender or leaseholder is paid first. You’ll receive whatever remains of the settlement — if anything.

Read on for a breakdown of how the insurance claims process works and who gets the insurance check when a car is totaled.

Getting an Insurance Check for a Totaled Car

Unless your totaled car was only a few months old, or you have new-car replacement coverage, the check you receive from the insurance company probably won’t be enough to replace it with a brand-new model.

If your car is financed or leased, as noted above, the insurance company will first pay off the lender or leaseholder. The car’s owner will receive a check only if any funds remain after the car is paid off.

If you’re not sure what would happen if your car was totaled, it might be time for a personal insurance planning session to review your coverage.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

What Happens If Your Car Is Totaled in an Accident?

After an accident, your insurance company will assign an adjuster to assess your car and estimate the cost of repairs. If the estimated cost of fixing the car is more than the car’s market value, the insurance company may declare it a “total loss.” The same thing may happen if the insurance company determines the car may not be safe to drive even if it were fixed.

How Your Car’s Value Is Determined

The insurance company will determine your car’s “actual cash value” based on its pre-crash condition and what similar models are selling for in your area. They’ll also factor in things like the car’s age, wear and tear (inside and out), mileage, and any optional equipment you’ve added. (You can learn more about the lingo discussed here in our guide to car insurance terms.)

Recommended: How to Get Car Insurance

What If the Accident Wasn’t Your Fault?

If another insured driver is found at-fault for the accident that damaged your car, that person’s insurance should pay the claim — and your insurance deductible won’t come into play.

However, you should expect to pay your deductible amount if:

•   You’re responsible for an accident.

•   The fault is shared.

•   No one is at-fault for the damage to your vehicle. For example, a tree branch or other debris hits your car in a storm.

•   The driver who caused the accident is uninsured or underinsured, and your uninsured motorist coverage pays your claim.

Is a Car Totaled When the Airbags Deploy?

The cost of replacing activated airbags will be considered in the overall cost of repairing your damaged vehicle. However, a vehicle won’t necessarily be declared totaled because the airbags deployed.

Who Decides If Your Car Is Totaled?

People often use the word “totaled” as a general description for a car that’s been badly damaged. But only your insurance company can decide a car is totaled based on its value and the cost of repairs.

What Types of Coverage Will Pay for a Totaled Car?

Drivers are often more concerned about the cost of their monthly premiums than with how much car insurance they really need. But not all types of coverage will pay for a totaled car.

After an accident, you’ll need one of the following policies — which should be available from both traditional and online insurance companies — to be reimbursed for a totaled car.

Collision

Collision coverage pays for damage to your vehicle or property. That can include damage caused by crashing into another vehicle or running off the road and into a tree or fence. Even if you’re responsible for the accident, collision coverage will pay for the repairs, minus the deductible amount you’ve chosen.

Comprehensive

Comprehensive coverage pays for losses caused by something other than a collision, such as a weather event, hitting an animal, theft, or vandalism.

Property Damage Liability

Property damage liability coverage pays for damage to your vehicle (and other property) if you’re in an accident and the other driver is found to be at fault.

Uninsured / Underinsured Motorist

If you’re in an accident and the other driver is at fault but isn’t insured or doesn’t have sufficient auto insurance, uninsured motorist coverage pays for your repairs.

New-Car Replacement

With new-car replacement coverage, if your car is totaled, your insurer will pay to replace it with a brand-new car of the same make and model (minus your deductible).

Gap Coverage

If you owe more on your car loan or lease than what your insurance company says your damaged car is worth, you could end up having to make up the difference. Gap insurance can bridge the gap between your settlement and what you still owe.

Rental Reimbursement

Unless you have a backup vehicle to use until you replace your totaled car, you may have to rent a car. If your auto policy includes rental reimbursement coverage, your insurer may refund your out-of-pocket costs for the rental, but only for a limited time.

Do You Still Have to Make Loan Payments on a Totaled Car?

Even if your vehicle has been declared a total loss, your lender will likely expect you to keep making timely loan payments until the claim is settled. (If you don’t, that can hurt your credit.) So it’s a good idea to stay on top of any paperwork, and to check in with your insurance company and lender regularly to be sure the claims process is on track.

What If the Insurance Payment Isn’t Enough to Pay Off Your Loan?

Unless you have gap coverage, the settlement you receive may not be enough to pay off your loan or lease. Insurers are required to pay only what a totaled car was worth before it was damaged. So if your car’s actual cash value is less than what you owe the lender — or less than the payoff amount on your lease — you can end up having to make up the difference out of pocket.

If you research what your car was worth and think your settlement amount is too low, you can try to negotiate a higher amount. The insurer may ask you to provide documentation that proves the car was worth more than they’re offering, so be ready to round up photos of the car, maintenance receipts, and other paperwork that backs up your position.

You can also research comparable cars in your area. You may even want to hire a private appraiser to get a second opinion. If you think it will help, you might consider hiring an attorney.

Do Insurance Rates Increase After a Car Is Totaled?

Each insurance company has its own policy that determines whether a driver’s rates will increase after an accident. The decision may depend on who was at fault, your driving record, whether you’re a longtime customer or new driver, and other factors.

If you decide to shop for lower insurance rates to save money, keep in mind that you may have to answer questions about prior claims and accidents.

The Takeaway

When a car is so badly damaged that fixing it would cost more than it’s worth, the insurer may decide it’s totaled. That means instead of repairing it, the insurance company will pay the owner the car’s actual cash value, based on its condition just prior to the accident.

If you own your car outright, the payment will come to you. If the car is financed and you’re still making payments, the insurer will make sure the lender is paid first. After that, you’ll get what’s left of the settlement. Either way, you can end up short of what you’ll need to replace your damaged vehicle.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

If my car is totaled, will the insurance company send me a check?

If you own the car, the settlement payment will go directly to you. When the car is financed, the lender will be paid first, and you’ll receive what’s left of the settlement.

Can I keep the money from the insurance claim?

If you owned the car that was totaled, you probably can use the insurance settlement for anything you like. But if the car was financed, the insurance company will make sure you pay off what you owe.

Photo credit: iStock/rocketegg

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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With typical driving, a car battery usually has a lifespan of three years of trouble-free driving. At that point, you might need to charge it. But what if you park the car and just let it sit? In that case, how long does a car battery last without driving or charging?

This post will take you through a variety of scenarios to help you gauge how often you might need to start up a car in order to preserve the battery life.

How Long a Car Battery Lasts Without Driving

Although no two vehicles or batteries are exactly the same, estimates can be made. So if you’re wondering how long a car battery typically lasts when the vehicle sits idle, here are some broad averages.

First, it’s strange but true: Although many things wear down with use, a car’s battery can “die” within a couple of months if it’s not used. Here’s why: Your car battery takes chemical energy and transforms it into electrical energy when you start the ignition. That electricity then powers the radio, clock, and other accessories.

When you park your car for an extended period, the battery can go dead — meaning, not operate without a charge — as quickly as in two months’ time.

As for how long an electric car battery lasts, the answer is about the same. Electric cars are fueled solely by electricity stored in the battery. Teslas, for example, are all-electric. If the battery is in good shape and fully charged, it might take a month or two to lose power.

Then there are hybrid cars, which are fueled by a combination of electricity and gasoline. How long a hybrid car battery lasts when not in use depends on the battery. Vehicles with 12-volt batteries may drain more quickly than other kinds — in as little as one month. See your owner’s manual for guidance.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

What Can Drain a Car Battery When the Car Is Off?

Older batteries won’t hold their charge as long as new ones. But there are many other reasons for a battery to “drain” faster:

•   Electrical problems, such as bad cables, blown fuses, spark plugs

•   Corrosion on the battery

•   Alternator problems

•   The charging system itself

If you suspect one of these issues, see our advice on saving on car maintenance costs.

How to Save a Car Battery When Not in Use

As noted, using your car allows it to convert chemical energy into electrical energy. If your car will be sitting idle for a while, it’s a good idea to take it out for a 15-minute drive once a week to allow the battery to recharge.

Simply turning the ignition on and off is not enough. This sort of usage may cause more harm than good. If you’ve got more than one vehicle at home and use one as your primary vehicle, consider using the secondary vehicle more often.

Recommended: How to Lower Your Car Insurance

How to Keep a Car Battery Charged When Not in Use

Consider using a “trickle charger.” These devices, which are attached to the car long-term, recharge the battery at the same rate it typically drains. There are different types of chargers that can be left connected to your vehicle for varying lengths of time. Make sure you get the type that’s appropriate to your car model and you understand how it should be used.

Steps to Take if a Car Battery Is Dead

If you accidentally leave the lights on (or some other accessory), you probably just need to juice up the battery again.

When there’s no obvious reason that the battery is drained, check for corrosion on the terminals that connect the car battery to the charging system. If you see white deposits, try brushing the ashy material off with a wire brush and baking soda.

If the first two scenarios don’t apply, you may have a defective battery. The problem can also be other faulty or worn-down parts, such as a battery cable, terminals, or alternator. In that case, you’ll need the parts repaired or replaced.

How Much Replacing a Car Battery Costs

If you’re going the DIY route, a new battery can cost between $100-$200. If you’re going to hire a mechanic to have the work done, it may cost an additional $45 to $250, depending on the make and model and the mechanic’s pricing.

Battery replacement — and other car maintenance costs — aren’t covered by insurance. Find more insurance tips for first-time drivers.

How to Jumpstart Your Car With Cables

When you jumpstart your car, you use the power from another car battery to give yours a “jump” and allow it to operate again. If a jumpstart doesn’t work, then it’s more than likely you need a new battery.

First, park the two cars close together, turn them both off, and open the hoods. Take out your jumper cables and untangle them. Hook the red/positive clamp to the positive terminal of the battery that needs a charge. Then attach it to the working battery’s positive terminal, using the red/positive clamp.

Take the black/negative clamp and connect it to the negative terminal of the working battery. Attach the other black/negative cable end to a surface on the car with the dead battery — somewhere that’s metal and unpainted.

Start the working car, then see if the other car will also start. Turn off the working/jumper vehicle. Carefully remove the cables in the reverse order that you attached them. Let the car with the newly charged battery run for at least fifteen minutes.

Some insurance policies cover jumpstarts as part of their roadside assistance option. When deciding how much car insurance you need, weigh the cost of this extra against the added convenience.

How long the battery charge lasts can vary. If it goes dead again, have your battery checked out to see if it needs to be replaced.

How to Know When a Car Needs a New Battery

Here are some signs that your car battery may need to be replaced:

•  The battery no longer holds a charge for long.

•  Your car isn’t starting as easily as it used to or shuts down after starting.

•  The battery smells bad.

•  The battery case is swollen or bulging.

•  It’s been a while since your battery has been replaced. (A good rule of thumb is to refresh yours every three to five years.)

Car Insurance Resources

As mentioned above, some car insurance policies offer roadside assistance options. The next time you’re sitting down for a personal insurance planning session, consider the pros and cons of these kinds of extras.

To find the best rates you’re eligible for, shop around on an online insurance marketplace.

The Takeaway

How long a typical car battery lasts depends on how often you drive or charge it, how old the battery is, the type of battery, and more. A new car battery should last about four years on average. The cost of a new battery can be as little as $100 if you replace it yourself. Otherwise, a mechanic may charge you hundreds more. Keeping your battery free of corrosion may extend its life and protect your investment.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

How long does a car battery last without charging?

A car battery can last around four years if you’re regularly using the car. If you leave lights on or park the car for an extended period, then it may need charging before you can drive it. A “trickle charger” can help maintain the battery in a car that’s in storage.

How often do you need to start your car to keep the battery from dying?

A car battery can often stay in good shape for a month even when you don’t drive the vehicle. However, if you want to make sure the car is ready to use in case of an emergency, take it for a 15-minute drive once a week.

How long can a car last on just the battery?

If your alternator fails when you’re on the road, you may still be able to drive on just the battery. The amount of time you have before your car dies depends on a number of factors, including how much charge your battery has. Of course, it’s best to get the alternator repaired or replaced as soon as you can.

Photo credit: iStock/Fernando rodriguez novoa

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SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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