Looking for a Better Deal with Our Car Insurance Premiums

Last night we canceled our car insurance with Progressive and went with Ameriprise through our Costco membership. Progressive was $118/month. It jumped about $20 this last term.

We called to see if we could do something to lower our auto insurance premiums, like adding rental insurance with them or increase our deductibles. They said it was the lowest they would go.

I shopped around for car insurance rates and Amerprise offered a little bit more for insurance coverage for $58/month.

We price different companies’ policies when our car insurance renewals come around. Last time, I didn’t have a Costco membership and I didn’t ask around at some smaller insurance companies to look at.

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How to Shop For Affordable Car Insurance

1. Have a copy of your current insurance policy. You want to know what exact coverage you have and how much you’re paying for it. This will important later.

2. Shop around online to see what’s a ballpark figure for your insurance. As I’m comparing with other companies, I use my current policy to enter in what coverage I’m looking for. Some websites to check out: NetQuoteGeicoEsurance, or Progressive.

3. Check out your AAA, Costco, or other membership club’s connection. We found our current car insurance policy by checking out Costco’s benefits. We requested a quote and found a great deal.

4. Examine your top choices’ complaints at your state’s insurance department. It’s important to check the company out for their customer service. It does you no good if they don’t cover you well or offer bad service.

5. Call the insurance companies and review exact policy coverage. Have your current policy out and compare line by line the coverage amounts.

How to Save Money on Car Insurance

It doesn’t hurt to ask to see if you can get a discount on your car insurance premiums. You want to

  • Maintain a good driving record. It’s obvious, but helps. Our last six month’s premiums went down because an old accident went off the record after 3 years.
  • Develop and keep a good credit history. Another reason why being smart with your bills helps out.
  • If you’re a college student, see if your grades qualify you for a discount. It’s usually a GPA of 3.0 and higher. Check your company to what their discount is for good students.
  • Increase your deductible. Only do this if your emergency fund is in place. Don’t get a $1000 policy if you only have $500 in your emergency fund.
  • Pay in one or two installments. Insurance companies tend to give a discount if you pay your premiums up front.
  • If your commute has shorten a bit, let them know. It can lower your expense. Even if they don’t drop it as low as you want, you save on gas money.
  • See if you can add home insurance with the company. Some companies, like Nationwide, have a discount for using them for both policies.

Your Take

What tips do you have on finding affordable auto insurance? Please let me know how you save on car insurance by leaving a comment. We can share our tips together.

Photo Credit: Team Dalog