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Better to buy or rent? The price-to-rent ratio is a reference point that can help gauge affordability in any city — especially for people on the move. More specifically, the price-to-rent ratio can be helpful when looking at a certain area and deciding whether to sink your life savings into a home, or pay a landlord and wait to buy.

Read on to see the home price-to-rent ratio in some of the biggest U.S. cities.

First, What Is the Price-to-Rent Ratio?

The price-to-rent ratio compares the median home price and the median annual rent in a given area. (You’ll remember that the median is the midpoint, where half the numbers are lower and half are higher.) To make sense of a city’s price-to-rent ratio, here’s a general idea of what the number suggests:

•   A ratio of 1 to 15 typically indicates that it’s more favorable to buy than rent in a given community.

•   A ratio of 16 to 20 indicates that it’s typically better to rent than buy.

•  A ratio of 21 or more indicates that it’s much better to rent than buy.

As you can see, the ratios could be useful when considering whether to rent or buy. Investors also often look at the ratios before purchasing a rental property.

The number also may be used as an indicator of an impending housing bubble. A substantial increase in the ratio could mean that renting is becoming a much more attractive option in that specific housing market.

If you’re exploring different areas, it can also be a good idea to estimate mortgage payments based on median home prices. That way, you can determine if it’s a cost you can reasonably afford to add to your budget on a monthly basis.

Recommended: How to Apply for a Home Loan Online

Price-to-Rent Ratio by City

Here are 52 popular metropolitan areas and their price-to-rent ratios. As of the third quarter of 2022, the median home sale price in the U.S. was $454,900, the Federal Reserve Bank of St. Louis reported.

Median sale price listed comes from Redfin as of December 2022. Median rents listed come from the Zumper National Rent Report from November 2022, based on a one-bedroom apartment. Remember, as home prices and rents shift over time, so do the ratios.

1. San Francisco

It’s no secret that San Francisco housing prices are way up there. The median sale price was $1,352,500, and the median rent for a one-bedroom apartment was $3,000 per month (or $36,000 a year). That gives the hilly city a price-to-rent ratio of nearly 38.

2. San Jose, Calif.

Golden State housing continues its pricey reputation in San Jose. The median sale price here was $1,222,500, and the city had a median one-bedroom rent of $30,480 annually ($2,540 a month), leading to a price-to-rent ratio of 40.

3. Seattle

The Emerald City had a median sale price of $820,000. Meanwhile, the median annual rent for a one-bedroom was $23,160, for a price-to-rent ratio of around 35.

4. Los Angeles

A median sale price of $965,000 and a median one-bedroom rent of $29,160 a year ($2,430 a month) shines a Hollywood light on renting, with a rent-to-price ratio of 33.

5. Long Beach, Calif.

With a median home price of $765,000 and one-bedroom rent averaging $1,770 a month, Long Beach earned a ratio of 36.

6. Honolulu

The ratio in the capital of Hawaii is a steamy 25, with a $552,500 median sale price and a median rent of $21,600 per year.

7. Oakland, Calif.

Oakland, across the bay from San Francisco, had a median sale price of $870,000 and median rent of $26,760 a year ($2,230 a month). This earned the location a price-to-rent ratio of 32.

8. Austin, Texas

A hotbed for artists, musicians, and techies, Austin had a price-to-rent ratio of nearly 27. This was thanks to a median sale price of $540,000 and median annual rent of $20,160.

9. San Diego

Hop back to Southern California beaches and “America’s Finest City,” where a median sale price of $835,000 and median rent of $30,000 a year led to a ratio of almost 28.

10. New York, N.Y.

The median sale price here was $790,000 and median rent was $45,480 a year ($3,790 a month), which equates to a price-to-rent ratio of roughly 17.

Of course, the city is composed of five boroughs: the Bronx, Brooklyn, Manhattan, Queens, and Staten Island, and it’s probable that most of the sales under $790,000 were not in Manhattan (where the median sale price was $1.2 million) or Brooklyn (where the median was $950,000). Just looking at Manhattan using the same annual average rent figure, the ratio looks more like 26.

11. Boston

With a median sale price of $775,000 and median rent of $36,000 a year, Beantown had a price-to-rent ratio of over 21.

12. Portland, Ore.

The midpoint of buying here of late was $524,500, compared with median rent of $18,480 per year, for a price-to-rent ratio of 28.

13. Tucson, Ariz.

In Tucson, the median sale price of $329,950 and median annual rent of $11,280 came out to a ratio of 29.

14. Denver

The Mile High City logged a renter-leaning ratio of nearly 29, thanks to a median sale price of $575,000 and median annual rent cost of $20,040.

15. Colorado Springs, Colo.

With a median sale price of $420,000 and annual rent of $14,760, this city at the eastern foot of the Rocky Mountains had a recent price-to-rent ratio of 28.

16. Albuquerque, N.M.

In the Southwest, Albuquerque heated up to a ratio of 26, based on a median home sale price of $300,000 and annual rent of $11,400.

17. Washington, D.C.

The nation’s capital is another pushpin on the map with a high cost of living. The median sale price of $650,000 compares with median rent of $27,600 annually ($2,300 a month), translating to a ratio of nearly 24.

18. Mesa, Ariz.

With a median sale price of $430,000 and median annual rent of $16,320, Mesa has a price-to-rent ratio of 26.

19. Las Vegas

Sin City has reached a ratio of 25, based on a $385,000 median sale price vs. $15,600 in annual rent.

20. Phoenix

Phoenix’s price-to-rent ratio has revved up to 24, with a median home sale price of $408,000 and $16,680 in rent.

21. Raleigh, N.C.

North Carolina’s capital, the City of Oaks, logs a ratio of nearly 27. This is based on a $407,500 median home sale price and median annual rent of $15,240.

22. Tulsa, Okla.

Tulsa had a price-to-rent ratio of 19, with median annual rent of $10,680 and home sale prices at a median of $203,750.

23. Dallas

This sprawling city had a recent median sale price of $400,000 and median annual rent of $17,040, leading to a price-to-rent ratio of 23.

24. Sacramento, Calif.

This Northern California city had a recent median sale price of $450,000 and median annual rent of $18,720, for a price-to-rent ratio of 24.

25. Fresno, Calif.

Fresno makes the list with a price-to-rent ratio of 20, based on median home sale prices of $380,000 and median annual rent of $15,960.

26. Oklahoma City

The capital of Oklahoma had one of the lower price-to-rent ratios until recent home price spikes. It logs a ratio of 24 lately, based on a median sale price of $251,800 and median annual rent of $10,440.

27. Arlington, Texas

Back to the Lone Star State, this city between Fort Worth and Dallas has a price-to-rent ratio of 24. This is thanks to a median sales price of $320,000 and median annual rent of $13,200.

28. San Antonio

This Texas city southwest of Austin had a median sale price of $285,000 and median annual rent of $13,920, resulting in a price-to-rent ratio of 20.

29. El Paso, Texas

El Paso traded a low price-to-rent ratio for a higher one when home prices rose. It’s at a 23, based on recent figures of a median sale price of $235,000 and median rent at $10,200 a year.

30. Omaha, Neb.

With a median sale price of $255,000 and median annual rent of $10,920, Omaha has a recent home price-to-rent ratio of 23.

31. Nashville, Tenn.

The first Tennessee city on this list is the Music City, with a price-to-rent ratio of 21. Nashville has a median sale price of $440,000 and a median annual rent of $20,400 ($1,700 per month).

32. Virginia Beach, Va.

The ratio here has nearly reached 20, based on a median home sale price of $330,000 and median rent of $16,800 per year.

33. Tampa, Fla.

This major Sunshine State city has a price-to-rent ratio of almost 21, based on a median home sale price of $410,000 and median annual rent of $19,800.

34. Jacksonville, Fla.

This east coast Florida city had a recent ratio of 19, based on a median sale price of $289,000 and median rent of $15,000 per year.

35. Charlotte, N.C.

Charlotte’s price-to-rent ratio of 22 arises from a median home sale price of $391,900 and median annual rent of $17,760.

36. Fort Worth, Texas

Panther City’s price-to-rent ratio has crept up to 22, based on a median home sale price of $340,000 and median rent of $15,120 per year.

37. Houston

Houston, we have a number: it’s a price-rent-ratio of 19. That’s based on a median sale price of $305,000 and median annual rent of $16,080.

38. Louisville, Ky.

Kentucky’s largest city has a median home sale price of $224,950 and median annual rent of $12,720. That leaves Louisville with a price-to-rent ratio of almost 18.

39. Columbus, Ohio

The only Ohio city on this list has a price-to-rent ratio of 19, due to a median sale price of $249,900 and median annual rent of $12,840.

40. Atlanta

Heading South, Atlanta has a median sale price of $400,000 and median annual rent of $19,440, for a price-to-rent ratio of 20.

41. Miami

Those looking to put down roots in this vibrant city will find a price-to-rent ratio of just under 19, based on a median home sale price of $525,000 and median rent of $19,200 annually.

42. Minneapolis

The Mini-Apple is sweeter on renting, with a ratio of 21. This is based on a median sale price of $320,000 and median annual rent of $14,880.

43. New Orleans

Next up is another charming southern city. New Orleans has a price-to-rent ratio of nearly 18, given a median sale price of $325,000 and median rent of $18,240 per year.

44. Kansas City, Mo.

In this Show-Me State city, a median home value of $246,000 and median annual rent of $12,720 equate to a price-to-rent ratio of 19.

45. Chicago

Chi-Town’s 14 price-to-rent ratio is based on a $310,000 median home sale price and $22,440 median annual rent.

46. Memphis, Tenn.

Memphis logs a price-to-rent ratio of nearly 15, with a median home sale price of $179,500 and median annual rent of $12,240.

47. Indianapolis

The ratio in this capital city is 18, thanks to a median home sale price of $225,000 and median annual rent of $12,360.

48. Philadelphia

This major East Coast city had a recent median sale price of $250,750 and median annual rent of $17,640, for a price-to-rent ratio of 14.

49. Baltimore

Charm City had a recent median home sale price of $215,000 and median annual rent of $16,560, resulting in a price-to-rent ratio of 13.

50. Newark, N.J.

Newark, anyone? The median sale price here is $409,000, with median rent at $1,400 a month (or $16,800 a year), leading to a ratio of 24.

51. Milwaukee

Milwaukee is slightly more favorable to homebuyers than renters, thanks to a price-to-rent ratio of 15. This Midwest city had a recent median sale price of $180,000 and median annual rent of $11,640.

52. Detroit

Detroit saw a spike in home sale prices, though the latest median sale price was a relatively low $82,000, compared with median annual rent of $13,200. This resulted in a price-to-rent ratio of 6.

Recommended: Cost of Living Index by State

How to Calculate Price-to-Rent Ratio

If you don’t see your city on the list, rest assured that it’s possible to calculate price-to-rent ratio yourself. To do so, you’ll simply take the median home sale price in your area and divide it by median annual rent.

Here’s an example: Let’s say the median rent in a city is $3,000 a month, and the median sale price is $1 million. You’d divide $1 million by $36,000 ($3,000 per month multiplied by 12, the number of months in the year). The result is a price-to-rent ratio of nearly 28.

The Takeaway

The price-to-rent ratio lends insight into whether a city is more favorable to buyers or renters. Usually in a range of 1 to 21-plus, the ratio is useful to house hunters, renters, and investors who want to get the lay of the land.

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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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Changing your windshield wipers helps keep you and others safe in low-visibility conditions, from rain and snow to dust and mud. It can also save you money on a service-station visit.

We’ll walk you through how and when to change your windshield wipers, and the types of wipers that are standard on older and newer cars.

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

Can Anyone Replace Windshield Wipers?

Changing your windshield wipers may be one of the easiest DIY car-maintenance tasks. All you need is a needle-nose pliers and an old towel to protect the windshield. And wiper blades can be pretty inexpensive — as little as $12 per set.

Types of Wiper Blades

There are three main types of wiper blades to choose from, each with a different price point.

Standard

The most common type of wiper blades is the standard, where a rubber squeegee is held by a metal frame. The frame pivots to keep the squeegee angled properly against the windshield. You’ll find affordable standard wipers on most older cars.

Beam

The newer beam design features a solid piece of rubber serving as frame and squeegee. Instead of pivoting, the wiper is curved to maintain contact with the windshield. Without a metal frame, this wiper is less likely to get clogged with leaves or ice.

Beam wipers are more efficient and last longer. However, they’re also more expensive. Luxury vehicles tend to feature beam-style wipers because they’re seen as more sleek and modern.

Hybrid

This style of wiper has nothing to do with hybrid cars. The hybrid wiper has a metal frame, like the standard, but an updated blade design that’s more efficient. These wipers are priced between the low-cost standard and the higher-cost beam.

While some drivers may choose their wipers based on how much their car is worth (cheap car = cheap wipers), remember that safety is the most important factor.

Recommended: Insurance Tips for First-time Drivers

Getting Ready To Change Wiper Blades

The prep work is pretty simple, but we’ll break it down anyway.

If this type of project is up your alley, check out other ways to save on car maintenance.

Know Which Part of the Blade To Change

Standard windshield wipers contain three main parts: a lower wiper arm, a blade that connects to the arm, and a rubber liner that wipes off your windshield. It’s the rubber refill that typically needs to be changed. Beam-style wipers have only two parts: the arm and the rubber blade.

Measure the Blade You Have

Measure both of your wiper blades — the driver’s side and the passenger’s side may not be the same length.

Buy Replacement Blades

Many auto-parts store websites feature parts-finder tools that allow you to match the type of wiper to your make and model of car. At the auto-parts store, measure the replacements to make sure you’re getting the exact same size as what you currently have.

By the way, windshield wiper replacements aren’t covered by car insurance, nor do they count toward your insurance deductible.

Recommended: How To Lower Your Car Insurance

Installing New Wiper Blades

All it takes is three steps to remove the old wipers and insert the new ones.

Unhook the Old Wiper Blade

For standard wipers, gently pull the arm of the wiper away from the windshield glass. You may want to place a folded towel against the glass just in case you accidentally let the wiper go. Flip the rubber blade so it goes bottoms-up. Find the retaining clips near the end of the blade. Use pliers to pinch them together so you can slide out the blade.

Another style of connector is the J-hook, named for the J shape at the end of the blade. J-hooks have a tab that must be lifted or pushed to release the blade. Once released, pull the wiper down toward the base to remove it.

Insert the New Wiper

Slide the replacement blade into the same place where you just removed the old one. Make sure that the replacement blade is between the clips so they won’t scratch your windshield. Then make sure that the last clip clicks into place. Gently turn the arm back to its normal position, and release the arm of the blade.

Make sure to test your blades while parked. You don’t want an improperly attached blade flying off on a rainy day!

When To Change Wipers

There are a few reasons you might want to replace your windshield wipers. Consider keeping a pair of replacement blades in your trunk or garage so that you have them when you need them.

It’s recommended that you change both wipers at the same time, even if only one is giving you trouble. Now is a good time to check your wiper fluid as well.

How Often To Change Wipers

Experts recommend changing wiper blades every year. But it depends on what type you have and how hard they have to work. Inexpensive standard wipers should be replaced every six months. Beam-style blades last twice as long.

In regions with long, icy winters and/or dry, dusty summers, you may need to replace your blades more frequently. In balmier climates, every two years might be sufficient. To be on the safe side, you can proactively change them at predetermined intervals — possibly at the same time as your personal insurance planning check-in.

Cracked Wipers

Periodically check the wipers for cracks or tears, even if you haven’t noticed any problems. Also check to see if any small chunks are missing. You don’t want to wait till you’re driving in the rain to discover a problem.

Wipers Leaving Streaks

If your blades leave streaks, this likely means that they’ve outlived their useful life. If in doubt, change your blades.

Recommended: How to Calculate Expected Rate of Return

The Takeaway

Changing out windshield wipers is an easy maintenance task that anyone can handle. However, some auto-parts stores will install wipers for free with their purchase. Older cars tend to feature standard wipers, which have a metal frame holding a rubber blade. Newer cars commonly have one-piece, “beam-style” wipers. Beam wipers are more efficient and last longer, but are also more expensive. Standard wipers are less expensive but don’t last as long. It’s a good idea to change your wipers every six to 12 months — more if you live in an area with extreme winters.

Here’s another way to protect yourself behind the wheel: getting the right auto insurance. SoFi has partnered with Experian to use a blend of technology and human interaction to provide you with multiple insurance quotes from top insurers in just minutes.

Real rates, with no bait and switch.

FAQ

Can you replace a windshield wiper yourself?

This is one of the easiest car maintenance tasks, so yes. You can replace them yourself with just a pair of needle-nose pliers and a towel to protect your windshield.

Is it cheaper to replace windshield wipers yourself?

It can be. If you buy windshield blades online, they can be as low as $12-16 per set. In an auto-parts store, they can go for $23-38 per set or more — though some stores will install them for you free.

Is it easy to install wiper blades?

Fortunately, there are just a couple of simple steps involved to remove the blades and put new ones on. Although everyone defines “easy” differently, this is one of the more straightforward car maintenance tasks.

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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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Deciding when to apply for Social Security can be a complicated math problem, one that has a different answer for each person depending on their circumstances. The earlier you file, the lower your benefit amount, but the more payments you receive over time. The later you file, the higher the benefit, but the fewer payments you receive. If you have other income, the portion of your benefit could be taxed — up to 85%. And if you’re married, you may be able to stagger your individual Social Security retirement benefit applications for an optimal financial outcome.

Generally speaking, the main constant in this math problem is a person’s expected Social Security retirement benefit: the amount you would receive if you waited until full retirement age to claim your benefit. By creating an account at SSA.gov , you can see what your benefit is projected to be at each age from 62 on. But there are many other factors to consider when choosing your retirement date.

At What Age Can You Apply for Social Security

Here, you’ll learn more about selecting the right age to apply for Social Security, whether that’s 62 or older.

Applying for Social Security at Age 62

The earliest most people can apply for Social Security is age 62. The greater the difference between when you apply and when you reach full retirement age, the more the Social Security Administration will reduce the amount of your benefit. For those born in 1960 or later, full retirement age is 67. Taking retirement at 62 will cause your benefit to be reduced by about 30%.

If your benefit at full retirement would be $1,000 a month, and you file for benefits at 62, you will only receive about $700 or 70% of the amount you would have received at full retirement. For each month you wait past the age of 62, that amount rises a little bit. At $700 a month, if you lived to the average U.S. lifespan of about 80 years old, you would receive $151,200 over your lifetime.

Applying for Social Security at Age 65

Many people don’t want to wait for their full retirement age. In fact, the average retirement age is 64. If you were born after 1960 and you retire at 65, you can expect to receive 86.7% of your full retirement benefit. The Social Security Retirement Age Calculator shows when to apply for Social Security for maximum benefit with minimum waiting.

Applying for Social Security at Age 67

If you wait to apply for benefits until full retirement, you will get the full amount of your benefit. In the example used above, that would be $1,000 a month. In this scenario, if you live to age 80, you would receive $156,000 over your lifetime, which is $5,000 more than if you filed five years earlier.

Applying for Social Security at Age 70

Every month you delay applying for benefits causes the monthly benefit amount to grow, up until age 70. If you file at age 70, your monthly Social Security retirement payment is 30% higher than it would have been if you filed at full retirement. Rather than receiving $1,000 a month you would receive about $1,300 a month. If you live to age 80, that comes to $156,000 which is the same total amount you would receive if you filed at full retirement age. This brings into the equation one of the factors that influences at what age you may want to file for Social Security benefits: how long you expect to live.

Other Factors That Drive When To Apply For Social Security

Now, here’s what you need to consider in terms of the other factors that impact when you apply for Social Security benefits.

How Long Will You Live?

Of course, no one knows for certain how long they will live. The Social Security Administration has a rather sobering life expectancy calculator that shows at what age a person born on your birthday can expect to die, on average. It’s based on your birthdate and doesn’t factor in health, genetics, or lifestyle. If you expect to live only to age 75, for example, you might be inclined to take your Social Security benefit early so that you could enjoy it for a longer time. But if you live until age 90, taking Social Security retirement benefits early could cost you a lot of money. Here’s how your lifetime benefit would be impacted by filing at different ages if your full retirement benefit is $1,000 a month:

•   At age 62, you would receive a total of $235,000 over your lifespan.

•   At age 65, you would receive $260,100.

•   At 67 that jumps to $276,000.

•   If you wait until age 70 it is $312,000.

So, if you expect to live a long life, waiting a few years to file could make a big difference in your total benefit.

Are You Married?

There are many myths around Social Security benefits, so it’s important to delve into your particular situation. Spouses are eligible for half of the benefit their spouse would receive at full retirement age. That amount is reduced if the primary beneficiary files early. For instance, if you apply for Social Security benefits before you reach full retirement age, you would automatically be deemed as applying for spousal benefits as well if your spouse is already receiving benefits. The maximum spousal benefit you can qualify for is typically 50% of your partner’s benefits calculated at full retirement age.

One option for spouses is to file for one spouse’s benefit early, say at 62, and postpone filing for the other spouse’s benefit until age 70. This can provide money now and more money later. If one partner dies, the surviving partner is automatically assigned the higher benefit between their own and their late spouse.

Do You Have Other Income?

You may wonder what is a good monthly retirement income for a couple. Keep in mind that the average couple in their 60s and 70s spends around $4,000 a month, or $48,000 a year.

A lot of that is spent on the typical retirement expenses of housing and healthcare. The average retirement benefit in May 2022 was $1,688. So an average couple would receive $3,376 in benefits. Consequently, many people have to rely on other forms of income including wages from a job, pensions, dividends, interest or capital gains in addition to their Social Security benefit. In fact, having access to other forms of income may impact when you can retire.

If you do have income besides your Social Security benefit, and most people do, you might want to delay claiming your benefit. If you earn income from working, and you claim your benefit before full retirement age, your benefit may be reduced. If you have other types of income, such as pensions or interest on the money you’ve saved in your retirement account, your benefit will not be reduced; these don’t count as earnings. However, you may have to pay taxes on it.

The Takeaway

For most people, their Social Security benefit is unlikely to sustain them through their retirement years; they need to have another source of income. The earlier they retire, the smaller their benefit will be and the more they may need a second or third source of income. Gaining that income through wages can reduce your benefit if you retire before full retirement age.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help grow your nest egg with a SoFi IRA.

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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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So you need expensive dental work, and you’re wondering how to pay for it. After getting a quote from your dentist and learning how little your insurance will cover, you may be thinking, This can’t be right. I must be missing something.

We’ve got good news and bad news. Bad news first: Despite insurance, dental work can cost a lot out-of-pocket. The good news: While there’s no simple and obvious solution to covering the bills, there are many tricks you can use to make your dollar stretch farther (and get a tax break while you’re at it).

We’ll explain all the ways you can save a little here and there on dental work. Altogether, they can add up to quite a discount off your dentist’s quote.

8 Ways To Pay for Dental Work

Many people cover their dental work by combining several of the strategies below. It’s tough to avoid paying out-of-pocket entirely, but you can get a hefty discount off the original quote.

1. Medical Insurance

Dental work isn’t typically covered by medical insurance, but certain procedures may be covered if they’re deemed “medically necessary.” For instance, oral surgery potentially can be billed as a medical procedure. Before you move forward with any dental work, it’s a smart idea to talk to your medical insurance company to find out what may be covered.

Recommended: Beginner’s Guide to Health Insurance

2. Dental Insurance

You should know that there’s a difference between a dental office that takes your insurance and a dental office that is in-network. A dentist may take your insurance even though they are out-of-network.

When a dentist says that they take your insurance, that likely means that they will file an insurance claim for you. But if your insurance doesn’t cover a procedure or service, the price will generally be set at your dentist’s discretion — and you’ll typically be responsible for paying the costs out-of-pocket.

Generally, using an out-of-network dentist means your insurance will cover less and you’ll pay more. Being in-network, on the other hand, usually means that your insurance company has pre-negotiated the fees with the dentist and they generally can’t charge more than that. So you’ll usually pay less with an in-network dentist.

Recommended: Budgeting as a New Dentist

3. Payment Plans

Paying a bill on a weekly or monthly basis can be much more manageable than paying it in a lump sum. That’s why many dental offices offer payment plans for procedures not covered by insurance.

Payment plans can be offered directly through your dentist’s office, or by third-party services like CareCredit. Ask about the specific terms of any payment plan offered. For example:

•   What procedures qualify for a payment plan?

•   Will they charge interest? And if so, how much?

•   Do they have to check your credit first?

Asking these questions beforehand can help keep you from getting blindsided by unexpected costs.

4. Flexible Spending Account

A Flexible Spending Account (FSA) is a special savings account offered through some employer benefit plans. FSAs allow employees to pay for certain out-of-pocket medical and dental costs with tax-free money.

The typical taxpayer saves about 30% in federal, state, Social Security, Medicare, and Unemployment taxes. That translates to a 30% discount off all eligible medical and dental expenses.

FSA rules cap the amount of money that can be placed in the account each year ($3,050 for 2023), and also dictate which types of expenses are FSA-eligible. Most routine dental work and orthodontia qualify: cleanings, X-rays, fillings, crowns, extractions, implants, and Invisalign.

FSAs can’t be used for any procedure that is considered “cosmetic,” including teeth whitening and veneers. But in some instances, if a typically cosmetic procedure is deemed medically necessary — as with some veneers — you may be able to use your FSA. Talk to your dental insurance company for more information.

One drawback of FSAs is that any funds that are unused at the end of the plan year are forfeited — so make sure you don’t leave any money on the table. In the plus column, because FSAs are funded with pre-tax dollars, they reduce your taxable income, which is always nice.

5. Health Savings Account

A Health Savings Account (HSA) is similar to an FSA in several ways:

•   Both are funded with pre-tax dollars

•   Both are used to cover healthcare expenses

•   Both can be established through your employer, and funded with payroll deductions

But there are also key differences between an FSA and HSA:

•   HSAs must be used with a High Deductible Health Plan (HDHP)

•   The 2023 HSA funding cap is $3,850 for individuals, $7,750 for families

•   HSA funds roll over from year to year

•   You can set up an HSA through some health insurance companies and banks, making them a good option for the self-employed

If you don’t have access to an FSA — and you are currently covered by a high-deductible health plan — you can open an HSA at any time.

6. Talk With Your Dentist

The cost of dental work can actually be negotiable, depending on your dentist and your situation. First, have your dentist walk you through the treatment plan. Ask lots of questions, including:

•   Are all the procedures they’re suggesting equally urgent? Can some be postponed?

•   Can you get a discount by paying cash or the entire cost upfront? Some dentists give a percentage off for this.

•   If you don’t have insurance, ask if you can score an uninsured rate.

Some dentists will be flexible, and the worst that can happen is they say no. Another thing you can do is to have an honest conversation with your dentist about your financial situation. If your budget has no breathing room, see if they are open to giving you a discount, or if they are willing to push out your bill for a few months.

If the planned dental work is important but not super urgent, you may be able to schedule your appointments so they straddle two plan years. For example, if your plan year is January-December, you might schedule half the appointments for December, and a half for the following January. That way, you can take advantage of two annual benefit maximums for insurance and two years’ worth of FSA or HSA funds.

7. Credit Cards

In some circumstances, a credit card can be a suitable payment option for dental bills. If you have a card that offers rewards or cash back, it can also provide some benefits in return.

You might also consider looking for a medical credit card. These cards are issued by banks, credit unions, and other lenders and can only be used for healthcare and within a specific provider network.

Some medical credit cards defer interest for a period of time after your healthcare charges are incurred — much like 0%-interest cards. No interest is charged so long as those charges are paid off in full before the interest-free period expires. Late payments or balances that have not been fully paid before the deferment period ends can incur interest charges.

Speaking of 0%-interest cards, they’re another option to finance expensive dental work. By law, these interest-free promotional financing offers must last at least six months. But the most competitive offers go well beyond this to offer 0% introductory APR financing for 14 months or longer.

Before you commit to a new card, it’s a good idea to shop around for the best terms and make sure dental work meets the requirements for any rewards.

8. Personal Loan

A personal loan is an unsecured loan that you can use for almost anything. Because of this flexibility, many people use personal loans to pay for out-of-pocket medical expenses.

Using a personal loan to finance dental work might be a better option than a credit card. The lower the interest rate, the lower your monthly payment. And personal loans tend to have lower interest rates than credit cards. Credit cards currently have an average interest rate of 22.4%, but online lenders such as SoFi offer personal loans with lower interest rates to qualified borrowers.

How much you can borrow is also flexible, and getting approved for a personal loan can be done entirely online. In short, a dental loan might be a good option to cover additional dental needs, from basic fillings to more complex, high-cost procedures.

Recommended: Secured vs. Unsecured Personal Loans

The Takeaway

There is no one perfect solution for financing expensive dental work. But there are a number of resources and tricks you can call upon to stretch your dollar. Discuss your options with your dentist to find out what discounts and payment plans they may offer. Avail yourself of an FSA or HSA to pay with pre-tax dollars — an effective discount of 30%. Another option is to pay your bill with a 0% interest credit card, rewards card, or medical credit card that defers interest for six months or more. And you can maximize your insurance and FSA/HSA benefits by scheduling your appointments so they straddle two plan years.

Another option is to finance your dental work with a personal loan. SoFi offers personal loans with low fixed rates, no fees, and flexible repayment terms. From a simple whitening treatment to a complicated root canal, SoFi loans help cover the costs that insurance won’t.

Pay for medical costs — without sinking into high-interest debt.

FAQ

What can I use as financial assistance for dental work?

To finance expensive dental work, you may have to employ a few different tricks. First, if you have an FSA or HSA, paying your bills with pre-tax funds will net you an effective 30% discount. You can also schedule work to straddle two plan years so that your dental insurance and FSA/HSA cover twice the annual amount. If you’re uninsured, explain your financial situation to your dentist to see if they’ll offer a discount. And consider taking out an unsecured personal loan.

Can I use a personal loan as financial assistance for dental work?

Yes, a personal loan can be a great option for covering expensive dental work, compared to high-interest revolving credit. Shop around for the best rate and terms, and watch out for hidden fees.

Is it hard to get financial assistance for dental work?

It will take some work on your part, but financial assistance is available for low-income patients through dental schools, clinical trials, United Way, Medicare, and Medicaid. Find out what kind of assistance you may be eligible for on the U.S. Department Health & Human Services website at HHS.gov.

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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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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Many drivers choose liability-only car insurance to save money. The average annual premium is $1,070, according to the Insurance Information Institute. However, this type of coverage is not a good fit for everyone.

We’ll discuss exactly what liability-only insurance is, what it covers, and whether it’s the right choice for your needs.

What Is Liability Car Insurance?

Liability-only car insurance is a type of policy that provides the minimum protection that’s legally required by your state. More specifically, it covers the cost of bodily injury and property damage for other drivers and vehicles, up to a set limit, if you’re found at fault in a car accident. A liability-only policy is usually the most affordable car insurance you can get.

What Does Liability Car Insurance Cover?

There are two kinds of protection for liability-only car insurance: property damage and bodily injury coverage:

•   Property damage: Pays for others’ medical bills, lost wages, and expenses due to pain and suffering if the policyholder is found at fault. It can also cover legal bills if you’re sued over the accident, also up to the policy limit. (Find out how much car insurance goes up after an accident.)

•   Bodily injury: Pays for damages to another person’s vehicle and property if the policyholder is found at fault.

How Does Liability Car Insurance Work?

Liability car insurance will pay up to a certain dollar limit. If damages or bills exceed that limit, you’re responsible for the remainder. While it’ll cover things like medical bills and car repairs for others, this type of policy won’t pay for repairs to your own vehicle or your medical bills.

Recommended: Insurance Tips for First-Time Drivers

Liability Car Insurance Coverage Requirements by State

Most states require car insurance, though the minimum coverage requirements vary. See below for a state by state breakdown.

State	Minimum Coverage Requirements
	Minimum Bodily injury per person	Minimum bodily injury per accident	Minimum property damage per accident
Alabama	$25,000	$50,000	$25,000
Alaska	$50,000	$100,000	$25,000
Arizona	$25,000	$50,000	$15,000
Arkansas	$25,000	$50,000	$25,000
California	$15,000	$30,000	$5,000
Colorado	$25,000	$50,000	$15,000
Connecticut	$20,000	$50,000	$25,000
Delaware	$25,000	$50,000	$10,000
District of Columbia	$25,000	$50,000	$10,000
Florida	N/A	N/A	$10,000
Georgia	$25,000	$50,000	$25,000
Hawaii	$20,000	$40,000	$10,000
Idaho	$20,000	$50,000	$15,000
Illinois	$25,000	$50,000	$20,000
Indiana	$25,000	$50,000	$10,000
Iowa	$20,000	$40,000	$15,000
Kansas	$25,000	$50,000	$10,000
Kentucky	$25,000	$50,000	$10,000
Louisiana	$15,000	$30,000	$25,000
Maine	$50,000	$100,000	$25,000
Maryland	$30,000	$60,000	$15,000
Massachusetts	$20,000	$40,000	$5,000
Michigan	$20,000	$40,000	$10,000
Minnesota	$30,000	$60,000	$10,000
Mississippi	$25,000	$50,000	$25,000
Missouri	$25,000	$50,000	$25,000
Montana	$25,000	$50,000	$10,000
Nebraska	$25,000	$50,000	$25,000
Nevada	$25,000	$50,000	$20,000
New Hampshire	$25,000	$50,000	$25,000
New Jersey	$15,000	$30,000	$5,000
New Mexico	$25,000	$50,000	$10,000
New York	$25,000	$50,000	$10,000
North Carolina	$30,000	$60,000	$25,000
North Dakota	$25,000	$50,000	$25,000
Ohio	$25,000	$50,000	$25,000
Oklahoma	$25,000	$50,000	$25,000
Oregon	$25,000	$50,000	$20,000
Pennsylvania	$15,000	$30,000	$5,000
Rhode Island	$25,000	$50,000	$25,000
South Carolina	$25,000	$50,000	$25,000
South Dakota	$25,000	$50,000	$25,000
Tennessee	$25,000	$50,000	$15,000
Texas	$30,000	$60,000	$25,000
Utah	$25,000	$65,000	$15,000
Vermont	$25,000	$50,000	$10,000
Virginia	$30,000	$60,000	$20,000
Washington	$25,000	$50,000	$10,000
West Virginia	$25,000	$50,000	$25,000
Wisconsin	$25,000	$50,000	$10,000
Wyoming	$25,000	$50,000	$20,000

Data courtesy of the Insurance Information Institute

How Much Is Liability Only Car Insurance by State

State	Average National Monthly Premium	Average National Annual Premium
Alabama	$43.93	$527.20
Alaska	$48.74	$584.90
Arizona	$51.88	$622.55
Arkansas	$40.36	$484.37
California	$51.89	$622.77
Colorado	$58.73	$704.82
Connecticut	$66.62	$799.45
Delaware	$74.82	$897.87
District of Columbia	$68.28	$819.36
Florida	$83.10	$997.20
Georgia	$83.10	$997.20
Hawaii	$39.90	$478.83
Idaho	$36.13	$433.66
Illinois	$43.42	$521.11
Indiana	$37.08	$444.98
Iowa	$29.19	$350.31
Kansas	$35.51	$426.14
Kentucky	$50.83	$609.98
Louisiana	$85.32	$1,023.91
Maine	$31.28	$375.40
Maryland	$62.43	$749.18
Massachusetts	$55.41	$664.92
Michigan	$81.62	$979.47
Minnesota	$41.86	$502.32
Mississippi	$45.37	$544.43
Missouri	$43.96	$527.59
Montana	$36.47	$437.69
Nebraska	$35.97	$431.71
Nevada	$77.14	$925.71
New Hampshire	$36.87	$442.52
New Jersey	$79.86	$958.31
New Mexico	$48.68	$584.25
New York	$77.70	$932.46
North Carolina	$32.67	$392.06
North Dakota	$26.02	$312.30
Ohio	$37.32	$447.86
Oklahoma	$42.06	$504.79
Oregon	$57.06	$684.81
Pennsylvania	$45.71	$548.58
Rhode Island	$76.52	$918.30
South Carolina	$59.60	$715.26
South Dakota	$28.09	$337.11
Tennessee	$39.95	$479.43
Texas	$54.18	$650.17
Utah	$51.26	$615.15
Vermont	$31.17	$374.06
Virginia	$40.96	$491.51
Washington	$58.76	$705.11
West Virginia	$42.93	$515.20
Wisconsin	$35.10	$421.21
Wyoming	$29.67	$356.08

Data courtesy of the Insurance Information Institute

Liability Car Insurance vs Full Coverage

How much auto insurance you need depends partly on whether you can afford to repair or replace your car. Full coverage will pay for your car repairs and medical bills after an accident, no matter who is at fault.

It also covers repairs or replacement of your vehicle for covered “perils” (an auto insurance term) like theft, fire, flood, collisions with animals, vandalism, and falling objects. Because of the additional features, full coverage car insurance tends to cost much more than liability insurance.

When To Drop Comprehensive and Collision Coverage

Because your insurance needs change over time, it makes sense to reevaluate those needs on a regular basis with a personal insurance planning session. In some cases, you may find that it makes sense to drop comprehensive and collision coverage:

•   You’re not currently driving your vehicle: If your car is parked in a garage or at home and you don’t intend to drive it, comprehensive coverage doesn’t make sense. However, you may want to keep collision coverage because it protects against perils such as theft, fire, and vandalism.

•   Your car has a low market value: If your car is worth less than a few thousand dollars, getting pricey repairs — after you pay your deductible — may not be worth it. (Learn about the different types of insurance deductibles.)

Recommended: How to Save Money on Car Maintenance

How To Shop for Liability-Only Car Insurance

The first step in getting car insurance is determining how much you need. You must purchase the minimum coverage required by your state. If you want more financial protection — especially if you’re worried about medical bills and car repairs for expensive vehicles — then consider a higher coverage limit to give you more peace of mind.

Then it’s time to shop around on online insurance sites to get a sense of the going rates. Factors to look for include what is a covered peril and the insurer’s customer reviews.

The Takeaway

Liability-only car insurance is best suited for drivers with low-value vehicles who want to save money. Keep in mind that liability policies don’t cover your own medical bills or vehicle after an accident. If you want this protection, you may be better off paying more and purchasing full coverage.

Shopping around is the best way to find a policy that suits your needs. SoFi makes it easy by helping you compare rates from top insurers in just minutes.

Real rates, with no bait and switch.

FAQ

Do I need liability insurance when renting a car?

You don’t need to have your own auto insurance policy when renting a car, as rental car companies typically have their own coverage. However, you can purchase collision or comprehensive insurance while renting a vehicle if you want additional coverage.

At what point is full coverage not worth it?

Full coverage auto insurance typically is not worth it if your vehicle has a low value or you don’t intend to drive your vehicle for a long period.

When should I go from full coverage to liability?

Going from full coverage to liability requires careful consideration. In most cases, if your vehicle is worth less than what your deductible will cost, it might be time to drop down to liability coverage.

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Photo credit: iStock/Antonio_Diaz

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

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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