How I Cut 25% From My Car Insurance Payments
I keep seeing commercials advertising low auto insurance and decided I should give it a try. I still carry my car insurance through the same provider my parents started me on as a kid. I like the small town service so I want to stay with them, but I didn’t tell my agent that when I called. Here’s what I did:
1. I reminded Bob that I was 21 now and was free to choose my own car insurance beyond my parent’s coverage.
2. I dropped the liability insurance on my old car that sits in my garage. I have no intent on ever driving it again unless it is to the junkyard. I asked if this was fine and Bob agreed. He said I must call before I plan to drive the car and he would put temporary coverage on just in case. I did lose my muti-car discount though…
3. I reminded Bob that I am a good college student so I can keep my discount for that.
4. It has been more than three years since my one and only speeding ticket so I keep my discount for being a good driver.
5. I used to pay 20% more because I drive more than 20 miles to work everyday. I got that dropped.
6. The discount for holding a rental insurance policy has recently risen from 15 to 20%. So that shaved a little more off as well.
7. This was a little risky: I upped my deductibles. I used to pay $250 comp and $500 collision and raised them to $500 and $1000, respectively. If I don’t get in an accident this saves me money. But if I do, I will have to come up with a lot more money. This is why I have an emergency savings fund.
Altogether I saved 25% with the changes I made. For full coverage insurance on my 2005 Hyundai Sonata I now pay $435.38 every six months or $72.56 per month.
Just for fun I did the Progressive thing. Their online calculator quoted me at $75.52 for a similar package. They offered a discount to pay the six months in full, which my insurance also provides. It would be a good idea to save in advance… I’m missing out on that discount.