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.

Comments on this entry are closed.