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ø How We Cut Our Car Insurance Bill in Half ø

By: Green Panda | Date posted: February 25, 2009 (8:55 am) | Write a Comment (15 Comments)

Looking for a Better Deal with Our Car Insurance Premiums

Last night we canceled our car insurance with Progressive and went with Ameriprise through our Costco membership. Progressive was $118/month. It jumped about $20 this last term.

We called to see if we could do something to lower our auto insurance premiums, like adding rental insurance with them or increase our deductibles. They said it was the lowest they would go.

I shopped around for car insurance rates and Amerprise offered a little bit more for insurance coverage for $58/month.

We price different companies’ policies when our car insurance renewals come around. Last time, I didn’t have a Costco membership and I didn’t ask around at some smaller insurance companies to look at.

mini-car

How to Shop For Affordable Car Insurance

1. Have a copy of your current insurance policy. You want to know what exact coverage you have and how much you’re paying for it. This will important later.

2. Shop around online to see what’s a ballpark figure for your insurance. As I’m comparing with other companies, I use my current policy to enter in what coverage I’m looking for. Some websites to check out: NetQuoteGeicoEsurance, or Progressive.

3. Check out your AAA, Costco, or other membership club’s connection. We found our current car insurance policy by checking out Costco’s benefits. We requested a quote and found a great deal.

4. Examine your top choices’ complaints at your state’s insurance department. It’s important to check the company out for their customer service. It does you no good if they don’t cover you well or offer bad service.

5. Call the insurance companies and review exact policy coverage. Have your current policy out and compare line by line the coverage amounts.

How to Save Money on Car Insurance

It doesn’t hurt to ask to see if you can get a discount on your car insurance premiums. You want to

  • Maintain a good driving record. It’s obvious, but helps. Our last six month’s premiums went down because an old accident went off the record after 3 years.
  • Develop and keep a good credit history. Another reason why being smart with your bills helps out.
  • If you’re a college student, see if your grades qualify you for a discount. It’s usually a GPA of 3.0 and higher. Check your company to what their discount is for good students.
  • Increase your deductible. Only do this if your emergency fund is in place. Don’t get a $1000 policy if you only have $500 in your emergency fund.
  • Pay in one or two installments. Insurance companies tend to give a discount if you pay your premiums up front.
  • If your commute has shorten a bit, let them know. It can lower your expense. Even if they don’t drop it as low as you want, you save on gas money.
  • See if you can add home insurance with the company. Some companies, like Nationwide, have a discount for using them for both policies.

Your Take

What tips do you have on finding affordable auto insurance? Please let me know how you save on car insurance by leaving a comment. We can share our tips together.

Photo Credit: Team Dalog


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15 Comments
  1. Comment by Miranda — February 25, 2009 @ 1:30 pm

    Great post. Unfortunately, my car insurance post goes something like this: How to double your car insurance by buying a second car. Just one of the expenses we considered before we bought.

  2. Comment by Green Panda — February 25, 2009 @ 2:33 pm

    @Miranda: Hopefully you got a multi car discount. :)

  3. Comment by Miss M — February 26, 2009 @ 10:12 pm

    You’re making me think I should shop around for a better rate. We’re with progressive too, they were the cheapest a few years ago but I haven’t compared in awhile. I didn’t know that costco had an insurance program, i’ll have to look into it. One other tip, ask about discounts related to your career or professional organizations. I once got a discount for my line of work, I just had to fax in my diploma!

  4. Comment by Green Panda — February 27, 2009 @ 8:03 am

    @Miss M: That’s a great idea! I didn’t know your career can give you a discount. Thanks for sharing, I hope your tip can help some people.

  5. Comment by Kate Kashman — February 28, 2009 @ 11:13 am

    Great article! It is so important that people are comparing the same coverages and you’ve done an excellent job of making that clear. I’ve linked to you!

  6. Comment by Green Panda — February 28, 2009 @ 3:38 pm

    @Kate Kashman : Thanks for the link! Every dollar counts. We decided we’d rather use it to put down for a house than overpaying bills.

  7. Pingback by February 2009: Progress Update — March 2, 2009 @ 8:02 am

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  9. Comment by thomas — March 3, 2009 @ 1:28 am

    Yeah, I need to look into my insurance costs with another company. I looked at changing mine and it was only a savings of $100 a year.

  10. Comment by Matt Riker — March 6, 2009 @ 6:10 am

    I have been using DesktopBudget.com to manage my personal finances for a few months now. Its the easient to use offline personal finance manager I have seen so far.

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  13. Comment by Simon — April 4, 2009 @ 11:59 pm

    very informative post, unfortunately, i have just bought a car and it is going to drag me for 9 years, which is a 108 months of repayment!

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