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?!
AUTHOR Derek Sall
Derek has a Bachelor's degree in Finance and a Master's in Business. As a finance manager in the corporate world, he regularly identified and solved problems at the C-suite level. Today, Derek isn't interested in helping big companies. Instead, he's helping individuals win financially--one email, one article, one person at a time.