3 Ways to Save Money on Insurance and a Myth Busted
As I kicked my down payment savings effort into high gear and continued to tighten my budget, I called my insurance agent to discuss what I was paying for renters and auto insurance. After talking through my age, location and future purchase plans, I came across an insurance myth that is just plain wrong and a number of ways I could save.
Myth: Your insurance will drop by up to half when you turn 25
I had heard this from a number of people but, as I just turned 25 last month, it’s definitely not the case. I saved about $100. Why? When I turned 25 I was disqualified for a number of the discounts that I had including the Steer Clear/defensive driving course I took and the Good Student discount I had. I went from being a good student educated driver to a regular old twenty five year old. Don’t count on a big premium drop when you turn 25.
3 Ways You Could Save on Insurance
1. Get renter’s insurance - If you don’t already have it already, it usually qualifies you for a multi-line discount with your insurance provider that can make the total you pay even less then what you paid just for car insurance!
2. Buy a condo and switch to condo insurance - Buying a condo that is roughly what I mentioned in my down payment post can actually save you another $100 under what you paid for your renters/auto insurance due to an increased multi-line discount.
3. Move to a better zip code, or store your car there - Moving literally 2 football fields from where I live into another zip code would save me another $200 in premiums due to the decreased crime and risk in that zip code. When considering where to move, be sure to check out how the area would effect your insurance(this is definitely one of the questions you should ask when considering a house or condo). Also, although I wouldn’t do it due to the inconvenience, I have a friend who used to store his car at work and bus back and forth to get the better zip code insurance rate.
Disclaimer: These are just general strategies and examples from my insurance provider, they may not be applicable in the same manner with other providers but the general concepts are.
Do you have any insurance savings tips? Please share them in the comments!
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Tags: Budget, Budgeting, Condo, Finance, Home, House, Insurance, The Dream Home
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Like I wrote...
June 6th, 2008 at 10:23 am
My insurance went up $10 per month, after I moved to a better ZIP and had been a great customer for the previous 6 months. So I got angry and cancelled it.
3 days later, finding no insurance for less than my previous company, so I went back tail tucked between my legs. Lo and behold, the same company gave me a price that was $15 less per month than what I was originally paying.
I don’t know if this is true everywhere, but if you can stomach the lapse for a week, then it might work.
June 6th, 2008 at 10:44 am
My insurance did not go down when I turned 25. Hitting your mid to late 20’s has no benefit. Doh!
June 7th, 2008 at 7:48 pm
I did get a refund check when I turned 25 last year, but my overall payment didn’t drop too much. Any drop there is ok with me though. I know that since I bus commute that qualifies me for a reduction and also keeps my annual miles a lot lower than normal so that can play into it as well. My dad said he saved a lot of money using insurance.com, but I haven’t used it and he’s in a different age category than us so I’m not sure whether to endorse it, but I know there are several internet outlets available from a variety of websites where you can comparison shop if that works best for you.
June 8th, 2008 at 2:37 pm
Realtors (R) are actually forbidden by law to give you advice like what you’re suggesting, as if they do, that can be construed as a legal advice. Lame, I know..
That being said, if you’re friends with your Realtor (R), he’ll likely help you out anyway.
June 10th, 2008 at 9:34 am
I didn’t know it was illegal to get this from your realtor but it was actually just information I found out on my own from my insurance agent. The realtors have a bit of a racket going when you think about it. They get a percentage of the sale as their fee so they are motivated to get you to pay the highest price possible (without looking bad).
August 1st, 2008 at 10:11 am
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