Insurance: Why change to save money?

I remember when I was sixteen my parents said if I wanted to drive I would have to cover my part of the insurance.  Twenty-six years ago I think that amounted to $100-$200.  Even as a kid I thought that was really expensive but didn't know much about how the world works.  So I had a job and handed the money over to my parents when the time came.  Life was good.

Then I went off to college and eventually bought my first car.  Sorry to say but my financial skills were poor and I actually used student loan money to pay for that $900 piece of steel.  At that time I switch from my parents insurance to my own.  I was able to find a company that provided the same coverage but costed less.  Then I started looking at the coverage amounts and they were in excess to cover my clunker.  Did I really need full coverage or just liability?  So I continued to learn and find ways to save money.

Fast forward to today and the cycle continues.  Every few years after I watch the rates climb up and up I switch companies and save money.  At the core they all provide the same thing…insurance.  I have never used it but it is there just in case an accident happens.  My deductible amount stays the same and so do the limits.  These companies all want my money so they can increase their float.  Some just want it more and are willing to accept less cash to gain my business.

The process is pretty simple.  There are so many sites out there that let you compare insurance rates with others.  In my case I kept seeing this commercial for eSurance on the channels my kids watch.  They know parents are lurking in the background watching the cartoons too and target us suckers.  Once you find a rate make sure it starts when your one ends.  If you have a bank mortgage the bank requires continuous coverage for that pretty little house they own.  A few phone calls to cancel the old insurance and you are done!  Unfortunately you will have to put up with their attempts to try and keep you.  It is not as bad as cable companies but it still exists.

So I did end up switching to eSurance in June.  Regarding my automotive it went down from $495 to $309 every six months.  Not bad but most of the savings came from me dropping full coverage on my fully paid off and old vehicles.  The larger savings is when I combined my home insurance with them and ended up saving around half.   The old yearly cost was $1008 and with all of the discounts eSurance provided it was brought down to $595/year.

The cycle will continue and those rates will climb.  In a few years I may be writing another post on my next switch.  For now I am happy saving $599 for this year.  Don't let them have your hard earned money.  Shop around.  I think the entire process took maybe an hour of my life.

Have a great Saturday,

Dividend Family Guy


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