Here's another real-life example of how to save on car insurance by shopping around. It was left as a comment on my post titled A Real-Life Example of How to Save $1,300 in Less than Two Hours by Shopping Around for Car Insurance:
I had the same thing happen to me! We had been with state farm for years, and a friend of ours told us about AIG insurance for autos. I gave them a call, and they quoted me at $680/six months for 2 cars (a 1997 toyota camry & a 2002 subaru outback-full coverage on both). With state farm we were paying $640/6mo-toyota and $720/6mo-subaru. It's almost half! When I called to cancel, my statefarm agent yelled at me, and told me that "I'd be coming back." I don't think that will be the case. It made me want to look around for a different home owners insurance policy too.
Almost a 50% discount is pretty good, huh?
Surprised that the state farm agent was yelling. I guess they must think they won't come back with that customer service!
Posted by: Laura | July 08, 2008 at 07:08 AM
Good job with the switch! You WERE paying way too much on such an old Toyota! Cheers to you, hope you can save the extra $100/mo, or put it toward debt retirement.
Posted by: michelle | July 08, 2008 at 07:55 AM
I'd been meaning to comment on our car insurance switch as well. We had been with Nationwide for ages (basically since I got my license 18 years ago!). I plugged in my information at one of those insurance quote websites (be prepared for the onslaught of phone calls, I used GrandCentral to screen them), and after reviewing a couple of them, I went with AIG as well. Two cars on Nationwide: $1440.20. Same coverage on AIG: $660.66. Yearly savings: $779.54.
My homeowners' insurance is expiring in October, so I'll be reviewing that as well. We're going to use the savings to finally get around to buying term life insurance, which we've been lax in getting around to.
Posted by: Brian D | July 08, 2008 at 08:08 AM
I just switched my car insurance as well. I had been with Farm Bureau since I turned 16. My parents have been with them for all eternity as well. My monthly premium for a 2003 Toyota and a 2006 Kia was $140! Granted, I had a minor, weather-related accident (single car) a couple of years ago so I can understand that it has gone up.
I did the online quote thing too (and got inundated with calls!) and heard from Liberty Mutual. Turns out I got a discount based on where I went to college in addition to them not holding the accident against me. My annual premium is now $1024, down from $1680. The only down side is that I will lose my multi-policy discount with my FB homeowner's insurance, but I have already paid through June 09 so it is no big deal right now. Even without that discount, FB is still cheaper on the home front, and I am still saving $45+ per month!
Posted by: justin | July 08, 2008 at 08:21 AM
I too was with State Farm forever. I have nothing against them othe than the high rates. Other than that, I loved them. However, being just out of college, I need to save money.
So I went on JD Powers to read their reviews of insurance companies and found Erie Insurance (I think they only service a few states around Lake Erie of course). They were extremely highly rated (better than State Farm). I called them up and got a quote which was way less.
Now, I just bought a 2009 Toyota Corolla and my wife has a 2003 Mazda 6, both relatively new cars I guess. For both of us, we pay $540/6 months total... Less than half of what State Farm was charging. Not to mention, they consider you an adult at age 24 and can add on other discounts (employer for example).
I also get renter's insurance for $11/month which is pretty much standard.
I haven't had to use them yet in an accident, but so far they've been good. Also, they sell through independent agents which drastically cuts down on costs cause they don't have to pay as much commission as State Farm does.
Posted by: Keith | July 08, 2008 at 08:36 AM
Our insurance agent actually shopped for us with several companies he has access to - being an independent agent he has that ability. I was very appreciative since it saved me a couple hours of searching for quotes online. This is the kind of professional I want to work for - one that is proactive in helping me save money. I went on Progressive just to be sure we couldn't get anything lower there, but sure enough, his quotes were below what I found - so we are with Travelers now for auto and home.
Much better than an agent yelling at me over the phone!
Posted by: Kevin | July 08, 2008 at 09:04 AM
BrianD -
There's nothing stopping you from switching homeowners' insurance right now. If you start a new policy, you can cancel the old one. The insurance company will have to refund any unearned premium (insurance speak for coverage you prepaid for, but won't need since you're canceling the policy).
Posted by: BenG | July 08, 2008 at 09:05 AM
Studies have shown that only about 20% shop their insurance. Look at how much they could save just by shopping!
Posted by: "Mo" Money | July 08, 2008 at 10:17 AM
You should try doing the same thing with your life insurance policy. Consumer Report's August issue says that life insurance premiums have dropped dramatically since the 1990's. It will probably pay for your to replace a policy bought years ago with a comparable new one. For example, a $500,000 20 year guaranteed level term policy from Prudential cos a 50 year old in 1998 about $2,125. Today the same guy, now 60 could pay Prudential $1,385 a year for the same coverage over the next 10 years saving $60 per month!
Posted by: Byron Udell | July 08, 2008 at 03:47 PM
BenG -
Thanks, I did know that. I'm trying to minimize the hassle (and expense) of having to get a refund, etc. We actually budget to pay the homeowner's in October, so that's when I'll have the money to do so!
Plus, it's just easier for my head (and my wife's) to change one thing at a time.
Posted by: BrianD | July 08, 2008 at 10:00 PM
A similar thing happened to me and in my case it was GEICO (yes GEICO) that gave me a SUPERB deal on Auto and American Family who gave me a fabulous deal on Home insurance. Between these two new policies (3 cars and 1 house), I save $600 per year with better coverage (went to $1M liability coverage since I have contractors at my home all the time for additions/improvement/maintenance).
Bottom line is that I hired the BEST companies for their 'sweet spot' and got myself a 'honey pot worth $600 per year' for better coverage. HOW CAN YOU BEAT THAT?
Kenny
Posted by: Kenny | July 10, 2008 at 01:05 AM