Are you paying too much for car insurance?

I’m a firm believer in shopping around for car and/or homeowners insurance every year or every few years. Rates can vary tremendously from company to company just based on your age, education, driving record, gender, etc. There are so many factors that go into your insurance company determining your rates.

I personally check every year to see if I can get a better deal as we have three cars and a home to insure. Many companies offer multi-policy discounts, discounts if you pay in full once a year, anti-theft discounts, safe driver discounts, accident forgiveness…the list goes on and on. If you have been with the same insurance company for many years it might be worth your time to check around for a better rate.

So today I called our insurance carrier and was told if we rewrote the policy I could save an additional $400.00 per year and get some added bonuses that we didn’t have previously. I said, “Sign me up!”

BE SURE TO COMPARE apples to apples. It’s not a good deal if the coverage is less than what you’re getting now.

We drop collision on our cars after they are 6 years old; most times the savings are huge but you need to make sure it’s best for you. Cars depreciate so quickly and if the car is totaled in an accident your insurance company will ONLY give you the Kelly Blue Book value for that car. They will not replace the car or buy you a new one.

We have $500 deductibles on all of our cars, which helps keep the rate down as well. We feel it is best for us but you have to determine what is best for you.

We saved a bundle (over $1,000 per year) for our son’s Ford F150 when we switched. Instead of them using his “age” to determine the rate, they based the rate on what it would cost to repair the truck had it gotten into an accident. We would have never known this had I not taken the time to shop around.

I also found this fabulous article by BOTTOM LINE Publications on how to save big-time on your car insurance. I actually have taken advantage of several of the things mentioned there. I also shop around for carriers every few years and compare rates. It pays off!

You can also check my hero Clark Howard for more tips on how to save on car insurance here 


Posted in Consumer Tips.