How We Saved $248 on Car Insurance with Equal Coverage

by Kevin on April 18, 2011

Will shopping around on car insurance really save you that much money? Surely not. Surely you can’t save a lot of money just by doing a few quick searches online. Right?

What if I told you I’d hand you a $20 bill every month this year? You wouldn’t have to change your life at all. I would just show up at your door, ring the doorbell, and hand you a crisp Andrew Jackson. Is it possible?

Today I’m going to walk you through how I just cut $248 off my annual car insurance bill. That’s $124 every 6 months or $20.66 per month I saved. And it wasn’t difficult!

Find Better Car Insurance Rates

I’ve told you about my previous adventures in shopping my car insurance around to get a better price. It worked then.

As well documented here at No Debt Plan we recently relocated from Birmingham, Alabama to Knoxville, Tennessee. We still owned a home in Alabama so we were able to ignore making any significant changes to our car insurance for a little bit since that was still our permanent address. But, then we sold our house (hooray!) and in doing so the need to get new car insurance came back.

We decided to do some price checks on our current coverage at several of the big insurance companies. The ones we were most interested in have websites ready to accept your personal and car information to generate a quote. We did that, compared the quotes, and saved big. It was that easy.

How Much We Saved

The bottom line is $248 came off the bottom line of our costs for this year. Was it all in part to shopping the insurance coverage around? Not exactly, but let me explain.

Our previous 6 month cost for car insurance was $555 for the two of us in Alabama. When we did the price quotes the same company could write a Tennessee policy for about $470 every 6 months. That in and of itself is a savings of $170 per year. That’s a big win in my book.

But instead of just taking our current company’s cost and accepting it, we checked some others. Another company offered identical coverage for $431 every 6 months. An additional savings of $78 per year. Even if we had already been living in the state, we still would save by shopping our costs around.

Why Did Our Cost Go Down?

I think it comes down to two things:

  • we moved states: different state, different policy, different insurance risks, lower cost
  • we got older: we both got over the insurance age peak of 25 since the last time we had a quote generated; we are in a lower risk class now

How to Find Identical Coverage at a Better Price

Looking to do what we did and save big on your car insurance? Here’s what you will need to be successful:

  • a copy of your current car insurance coverages
  • the driver’s license information for anyone going on the policy
  • a few minutes of your time per quote you generate

Make sure you have the full list of coverages including your bodily injury limits, uninsured/underinsured driver limits, whether or not medical benefits are paid out, your comprehensive and collision deductible costs, and whether or not you get towing or rental car coverage. Then all you have to do is find the insurance company’s website and start the quoting process.

Seriously, asking for a discount works. Providing researched evidence of better deals in the marketplace will get you a better deal. And consistently shopping your car insurance around every 12-24 months will save you a lot of money in the long haul.

{ 2 comments }

Ravi Gupta April 18, 2011 at 6:13 pm

I’m glad that I’m not paying for auto insurance yet. The prices are quite high but my dad was able to save quite a bit by shopping around as you recommended.
Nice snag on the savings 🙂

-Ravi Gupta

Steve in Denmark April 20, 2011 at 11:43 am

Shopping around really will save you money.
Insurance prices here in DK are sky-high anyway, but we felt our insurer wasn’t doing a good enough job, and we felt we were perhaps a little under-insured. But were scared to ask for a new quote as we felt their prices were a bit steep.
We called a company linked to our unemployment insurers and got a visit. We’ve got everything through them: House, contents, car, personal.
Long story short: We save a little bit every month compared to previously, but: We’ve upped our household insurance to reflect the cost of all the new computers, tvs, etc we’ve got since our last evaluation. We’ve also now got each others life insured, included.
So a lot more – for a bit less. Sleeping easier – priceless.

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