How I Saved Over $450 a Year on Insurance

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Do you ever feel like you’re just paying too much for car insurance? I sure did. I bought my 2001 Honda Civic for $2,500 in October, 2012 and have been paying $77 a month for car insurance ever since. That’s $924 a year for a junky car! Over the course of three years, I will have paid more in car insurance than my entire car is worth! This just didn’t seem right.

Talking With My Current Provider

I have insured my car and my house through State Farm Insurance for many years and for the most part, they have done a decent job. But, this year I made the goal of paying off my home mortgage and really started paying attention to my bills. I have already saved over $200 on my cell phone bill and am now working on reducing my car insurance rates.

I decided to first get a quote from Progressive, and soon discovered that my car insurance through them would only be about $650 a year. That’s a huge difference from the $924 that I was currently paying. So, I immediately went to State Farm to see if there was anything they could do for me…

Not only could they not reduce my rate, but they let me know that if I switched over my car insurance, my home insurance would increase by $200 a year! “Well screw that,” I thought to myself. “I will just switch them both to Progressive.” I then found out that Progressive was not insuring homes at the moment… I was stuck, but only momentarily. I needed to find yet another insurance company.

Removing My Escrow Account

Since I knew that I wanted to move both my car and home insurance away from State Farm, I figured it would be easiest if I just discontinued my escrow account. This way I wouldn’t have to communicate the switch over with a third party company and could just do it myself whenever I wanted (there were some additional benefits to this move as well).

Insurance Through Work

So here was my scenario:

  • I could not just move my car insurance to another company because my home insurance premiums would skyrocket
  • I could not insure both my car and house with Progressive because they were not currently bundling these items
  • This meant that I had to find a company that would insure both my car and home at a lower rate than State Farm

I tried a few different companies (Geico and All State to name a few), but the story was the same – they could insure my car, but not my house. Then I got a letter in the mail from my employer that reminded me they had partnered with Met Life Insurance. I immediately called the 1-800 number that was provided in the letter. After only 20 minutes or so, they had quoted me $636 a year for my car and only $322 a year for my house insurance. The yearly total for both would be $958 compared to my current bill of $1,412!

I saved over $450 on insurance this year. Are you ready to search for your savings yet?!

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Money Save Money

Derek

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

8 Comments

  1. I will have to look into Metlife! That’s a good deal. We currently pay around $700 for home insurance (Statefarm is the cheapest for us when it comes to that – everyone else wanted like $1,200 to $1,500). We then have Geico for our cars and it’s $100 for the both of us (and we have full coverage on both of our nice cars).
    Michelle recently posted..Reasons You’re Still In Debt

    • I called MetLife before, and they were not quite as cheap. I think the difference was the fact that they coordinate the insurance through my work and automatically deduct the payments from my bi-weekly paychecks. I hope it works out for you though. There’s no harm in getting a quote! 🙂

  2. Congrats! That’s great savings. What’s interesting about the insurance industry is that everyone’s experience is different. One person will say Geico is cheapest. Another swears by Allstate. A third will say, no way, it’s Progressive. That’s why I compare the best rates every 6 months. The companies are all using different formulas and I don’t want to miss out on savings by just not comparison shopping.
    Mortgage Free Mike recently posted..6 Ways to Cut Your Bills Now

    • Very to Mike! It’s good to check some other companies once in a while because the rates are always variable from year to year, depending on the formula that’s used! Just a few minutes could save you $100 or more a year. I’d say it’s worth it.

  3. I can only say that you shouldn’t only call around, sometimes call the same insurance provider to get quotes from different agencies. That is how our car insurance went DOWN when we moved from PA into NJ.
    Chris recently posted..Net worth as of Jan 2014

    • Good point Chris. Thanks for the valuable comment!

  4. My insurance company wouldn’t lower my rate so I called and got a better quote then switched companies. When I called my company back to cancel the policy they tried to get me to stay by lowering the rate. SORRY TOO LATE!
    Marvin recently posted..Financial Wisdom


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