How I Saved $146 Per Year on Car Insurance

by Kevin on April 6, 2009

(Photo by [177])

The money saving quest continues. First I saved $175 per year off of our DirecTV bill. Now we’ve saved $146 per year on car insurance.

How to Save on Car Insurance

There are four ways you can save on car insurance:

  1. ask for a discount from your current company
  2. switch to another company for a lower rate
  3. lower your coverages (this only works to a point and you risk being underinsured)
  4. going without insurance (illegal and obviously don’t do this)

In our case we were not unhappy with our current company. They haven’t done anything wrong. That is until I did a rate check with a competitor and discovered we could get better coverage for less money.

Sounds like a win-win situation for us; not so much for them.

However, I wanted to give them a shot so I called up and tried option number one — asking for a discount.

I called up our current company and explained what firm I was about to switch to, what the coverages were, and what the 6 month rate (without the first time sign-up discount) would be. I asked if they could beat it. After a few minutes of polite conversation they told me that unfortunately they could not match that rate.

However, I didn’t cancel the coverage just yet. I told them I would want it to expire at the end of the policy and I would call back if anything changed. Then I went and ordered my new coverage.

Once I had the new coverage account created and my credit card charged, I called our company back to verify they were canceling my account. I again received great customer service and of course they tried to keep me as a customer, but to get the coverage we were about to switch to the cost was obviously higher than we had currently.

So we made the switch. The only issue I am having is priting our temporary coverage cards — and I need them by tomorrow! — but I’ve talked with customer service about it and don’t think it will be a problem. (Unless Murphy’s Law kicks in…)

Summary of the Steps We Took:

1. did a price comparison among several car insurance companies; found a better price with higher coverage and lower deductibles (yes, saving money while getting better coverage and lower deductibles)

2. called my current provider and asked if they could beat the quoted rate; they could not

3. ordered the new insurance while maintaining old coverage

4. once new coverage was confirmed, canceled old coverage

Our Total Savings with Asking for a Discount

With a few phone calls we have now saved $321 per year based on two services we use. First TV service. Now car insurance. Luckily we didn’t have to change our TV service, but switching car insurance is relatively easy to do.

I’m looking for other areas that we could ask for a discount or switch providers to save some dollars. Any ideas?

Any way you cut it, $321 per year is a significant savings. We’ll take it.


[email protected] Wasn't In The Plan April 6, 2009 at 12:47 pm

We changed car insurance companies a year ago for the same reason – we knew we could pay less elsewhere. When we talked to the agent at our current company (now our old company) he mentioned that since we had been customers for so long we had accident forgiveness (our rates wouldn’t go up if we were involved in an accident) and by canceling our coverage we were forfeiting that. We talked to the new company and asked approximately how much our rates would go up should we get in an accident, that was still slightly less than the price we would pay at the other company, so we switched companies.

Baker @ ManVsDebt April 6, 2009 at 2:26 pm

I love saving money like this! So many people are afraid to step up and ask for a discount. I recently saved a $175 disconnect fee that we had already budgeted for. It’s awesome knowing that $175 can be applied somewhere else instantly!

Emily April 6, 2009 at 7:04 pm

Congrats! I readjusted my coverage last year and ended up saving $$ as well. This year, I was eligible for an additional discount. I’m sure you’ve asked your current carrier about those! I’m actually commenting because you said you were having trouble printing your insurance cards. My carrier faxed mine with a simple phone call to customer service. I had it within 5 minutes. Hope that helps and fingers crossed that Murphy’s Law doesn’t kick in.

Ken April 6, 2009 at 9:19 pm

Interesting stuff! I’m about to purchase homeowner’s insurance…it’s time to start comparing prices.

Mike April 7, 2009 at 11:20 am

You fourth way to save, going without insurance, is actually legal in some states. I know that when I lived in NH, you could go without insurance but were automatically the one at fault if you got in an accident (even if the other driver was at fault). As you said, going without insurance isn’t something you should do, but the illegal part isn’t always true.

Kevin April 7, 2009 at 3:54 pm

@Alison: Yea… better coverage… less price… awesome.

@Baker: There’s the key — making sure you save that discount.

@Emily: I need to update the post, but I finally got my temporary cards. They were having technical issues.

@Ken: Yea and make sure you do your research on how often they raise rates. Ours went up after one year. Very pissed about that.

@Mike: Interesting. It sounds like they allow it, but the law makes it so that it really isn’t worth your while. Thanks for the info. Then again maybe there isn’t as many people in NH, so less risk of hitting someone…

Sam P April 12, 2011 at 2:22 pm

Kevin it was great to read your story here. Sadly so many people overlook the fact that they can save on insurance by simply comparing prices and seeing what the best quote is out there. Another method to save on your auto insurance would be to raise your deductible. That would lead to higher risk overall, especially in case of an accident, but I thought it would be something at least worth mentioning.

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