Finding more ways to save and lower costs on things I already use is exciting to me. The beginning of each year comes with renewing subscriptions and my car insurance follows that schedule. The company I currently use sent a notice of the new policy premium I didn’t like, so I made it a point to change it so it’s easier on my budget.
My car insurance policy is on 6 month cycles starting in February and August of each year. I start every year hoping the policy gets lower, but for the past few years, the payments have gone up. Turning 25 is the magical year that car insurance payment is supposed to go down, but being irresponsible with having multiple car payments, accidents, and traffic violations have made my premiums trend up. As the years have gone by and I get smarter with my finances as well as becoming a better driver, I’d like everything to reflect that positive change.
On this last cycle, my last car insurance payments were $111.49 per month and I knew it should be lower than that. It’s a used car, so I opted for the limited liability policy with options to make sure I wasn’t under insured. In the past when I had a multi car policy coupled with an accident and a traffic violation, my policy was closer to $200. Now with only one used car on the policy with no lien, I was expecting to pay $50 a month since that’s what my payments years ago when when I had a similar car. Accounting for the accident and running a red light, $75 should was my desired monthly total, so I emailed my local agent months prior to see what we could to to get closer to that. I got no reply from the agent, so in January, a few weeks before the renewal, I shopped around with 2 other companies. There are a few ads saying to call in order get quotes for potential savings, but I prefer using the websites because it’s convenient. I put in my personal and car information into the required fields and both the companies gave me cheaper quotes. The one with the “Name Your Own Price” option had the lowest quote so I went with them. That option sometimes has the barebones features and after adding in towing services, and changing the deductible, the total payment came down to $282. That’s $47 a month locked in for the next 6 months. The major discounts making it so low were transacting online and paying in full, but that’s a premium I’m more than ok with. Coming down from $111.49, that’s a $64.49 monthly savings for a similar policy, and all I had to do was want a change. It’s been almost 3 years since
I love saving on things I already use. The biggest one I have this year so far is getting to save on my car insurance. Crazy how much can be made with about half hour of "work".— K.P @ Hungry Being (@hungry_being) February 27, 2018
Transportation costs already eat too much into the regular person’s budget. Giving the insurance company anything over $75 was hurting my wallet and stressing me out monthly. I put up with it for a long time because I thought that was my only choice. As I was about to pay for the newly quoted premium, I saw a disclaimer that car insurance policies can be canceled early with a prorated cost. I could have lowered my monthly payments months ago had I known this, and now I will never forget. The whole process took about half an hour. I found 2 reputable companies to price the quotes through, entered all the information, contacted my current insurer to cancel my policy when it would be up and now I get to use the savings to build more of my me fund.
If you are struggling to make some payments, look to see how cutting down costs can help. Maybe having a lower car insurance payment can help make the next few months a bit easier. Name your own price, adjust for not being underinsured and enjoy the savings. Get a policy that benefits rather than limits.