Welcome to the 10 day money saving challenge! Over the next 10 days, we will focus on one new way to save money. The savings will be recurring each month, so take the time to put in the work and you will continue to see your savings increase!
Be sure to track your savings in the printable tracker. If you don’t have the tracker yet, get it here.
I encourage you to open up a new bank account to put your saved money into. It is a wonderful feeling to watch it grow! Then at the end of the month, quarter, or year, you can do something specific with the money. Give you finances the best benefit from this challenge that you can!
The topic for day 7 is car insurance (actually, any insurance!). Oh the savings to be had with car insurance!
Car insurance is one of those necessary evils. You need it in case you ever get in an accident, but if you don’t then you just spent a lot of money every month for the off chance you would.
I am constantly surprised by how many people are overpaying for their car insurance. They have been with the same company for many years, and don’t give their premiums a fleeting glance.
Stop this trend now, and learn how to get a better rate!
Just because your mother, brother, or uncle George uses xyz company, it doesn’t mean you need to as well! If you feel bad about not “keeping it in the family”, think of it this way: they are not being a good family friend if they aren’t giving you the best rate, so if they can’t match rates you find, don’t feel bad about leaving them!
I always take an hour out of my time every year and check at least one other insurance companies rates to be sure what I am paying now is market value.
If you aren’t utilizing all of the discounts available to you, then you are missing out! And if your insurance provider isn’t working for you to find you those discounts, then you may want to consider switching carriers.
Currently, we have multi-policy discounts, good driving discounts, and a discount based on not having any tickets. Previously, we had good student discounts when we were in college.
While it’s difficult to put an exact number on how much we have saved from discounts, I can tell you it is in the hundreds.
Challenge your current provider
If you feel like you are paying too much for insurance, or if you think you may be missing out on discounts, don’t feel bad for challenging your insurance provider. You have chosen them to help you get the best coverage at the lowest price. If they aren’t doing that for you, then find someone who will.
I called my carrier one day and asked them to look into my insurance premiums and find out if they could lower my rates. They did some more digging and found a discount on my renters insurance. Was it much? No, just a few dollars. Was it worth the quick phone call? Sure, for me it was!
Be sure to also inquire as to the frequency of payments. If you are paying just a few times a year, be sure you are getting a discount for that. A lot of places will offer a small discount for making annual or bi-annual payments, instead of monthly.
Take care of tickets
Do you have a ticket on your license that you could get rid of by taking a class? Then you might want to do that. Those tickets are likely costing you higher premiums.
In the same token, if you have a ticket fall off your license (they will after a set number of years), be sure you contact your insurance carrier and let them know. In most cases, your premium will go down.
I currently pay 2 of my policies once a year, and save an average of $30/year by doing this.
I also bundle all of my policies (including renters and home) to save on the premiums. Though I don’t have the exact numbers, I can estimate it to be around $150-250/year.
Lastly, we take advantage of all of the discounts available to us, and shop around once a year to be sure we still have the best rate. This is hard to put a number on, so I will guess we save between $200-$300/year on all of our insurances.
Are you satisfied with your car insurance premiums? When is the last time you looked at them? Let us know if you have tried and of the above, and how much you have saved by doing so!