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Money Saving information for Auto Insurance


plusalpha
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Sorry folks to ask this question on the investing board, But I thought it will be great if I can learn some money saving tips from the Value minded people on the board who be saving money on auto insurance.

So here is my particular situation.

I am located in Michigan and have 2001 Honda Accord which I have Basic Insurance and 2012 Toyota Prius V which I have full coverage. Its approaching the end of 6month period of current insurance and I am in the market for next 6 month auto insurance policy.

Some things I currently do to maximize saving.

1) Combined insurance with Home insurance.

2) High deductible on Toyota Prius.

3) No comprehensive or Collision coverage on Honda Accord.

Please let me know if you have any more tips to add saving on auto insurance.

 

Thank you

plusAlpha

 

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I'm no insurance expert, and markets are highly state dependent so what I say might not apply, but here's what I've found in Pennsylvania.

 

I've talked to the agent extensively about different options for lowering payments.  What it comes down to is reducing liability from $300k to $100k reduces the 6mo amount by a few dollars.  In PA the only way to significantly reduce insurance expense is to go no tort vs full tort.  No tort means if you get in an accident you have signed away your right to legal recourse.  There is no reason to ever go no tort unless you're crazy. 

 

My conclusion has been this.  There is a base price to insure a car, say $100/mo.  If you lower deductibles and get the max liability it might go to $115 a month, but unless you go no tort you can't get it lower.  At one point I had a $100 deductible, I asked what it would be to go to a $1000 deductible, they said a $10 difference per year.  The payback on that isn't there.  On my insurance at least it shows how much each category costs and costs beyond the base are negligible. 

 

We found the best deal with Erie Insurance.  They were lower than Nationwide and State Farm, easier to work with and had a good reputation from friends.  Had Geico at one point, crazy high prices.  Tried to insure with them again, tried calling and getting a quote.  They never called me back, so not sure what's going on there.

 

I combine everything, homeowners, car, rv on the same insurance, easier that way.  I pay annually to save as well.

 

My favorite insurance story is when we had Nationwide we received a letter in March or April of 2009.  The letter said "due to recently increasing house prices and limited availability in the homebuilding market we're raising your homeowner rate."  I should have framed it, in the middle of a housing crash they sent a letter saying rates were going up because house prices were high and it was hard to get a homebuilder to work on a house. 

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Get a quote from Geico. My wife and I both drive older Honda (Civics '01 and '07) and pay $470/6mos for full coverage, comprehensive, and roadside assistance. I have no justification for full coverage other than it makes my wife happy which is well worth the extra $260/year.

 

For homeowners check out Amica.

 

Amica was 40% cheaper than Liberty Mutual (even with bundled with Geico). I shop around every year for insurance and have found no savings from bundling insurance. The insurance companies that stress bundling seem to have terrible rates until you bundle. Not good rates then even better rates.

 

 

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Thanks Nate and Ross for your input.

 

My conclusion has been this.  There is a base price to insure a car, say $100/mo.  If you lower deductibles and get the max liability it might go to $115 a month, but unless you go no tort you can't get it lower.  At one point I had a $100 deductible, I asked what it would be to go to a $1000 deductible, they said a $10 difference per year.  The payback on that isn't there.  On my insurance at least it shows how much each category costs and costs beyond the base are negligible. 

 

Previously I took quote with $500 deductible and $1000 deductible, i found the difference is worth thinking about high deductible and thats why i currently have high deductible on Toyota Prius. But sorry I don't remember the difference now.

 

But when i took insurance last time, 6 months back , it was $825/6 months for both vehicle.

 

 

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If you are able to, check out USAA.  I normally think moats are for crap, but USAA is one I truly believe in.  I would never shop around for a better rate and have no idea whether they're higher or lower than competitors.  They truly treat their customers like they would want to be treated.  The few times I have needed them to live up to their obligations they have exceeded them.  They immediately jump into action and will do what they can to handle things.  A couple times when there was an issue (a mistake on their end) they seemed mortified and 2 people called over the next couple of days to make sure things were right.

 

Thanks Kraven.

One thing i value is service.Good to know about USAA and the quick service they provide. I will definitely check with them. I currently have insurance with AAA. So far I am good with their service, but I never had to file any claim.

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I've heard that fifteen minutes can save you...

 

Sorry couldn't resist :)

 

I am also in Michigan and found that the best way to save on insurance is to not get any speeding tickets.

 

I have been very happy with Michigan Auto owners for home, cars and I also bought a 100K life insurance policy because it cost me 110 per year and saves me around 85 a year on my other policies. I don't mind paying 25 a year for 100K of life insurance.

 

Since you are in Michigan I will put in a simple plug for my independent agent who is the best at understanding and explaining insurance options of anyone I have met. His Name is Lowel Winne (269) 906-5112 and if you tell him you are as crazy about saving on insurance as Seth Getz, he will understand and take the time to explain all the options.

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I've heard that fifteen minutes can save you...

 

Sorry couldn't resist :)

 

 

ha ha ha , few years back I compared  GEICO with others and found, in reality they are kinda on higher side compare to others.

 

Thanks SmallCap, noted name and number and will check with him.

 

Here are 2 article i found online which may help other in some saving.

http://www.iii.org/article/how-can-i-save-money-auto-insurance

http://legacyoneinsurance.com/files/2014/10/Special_Report_Auto_Insurance.pdf

 

Thanks

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An update on this, a very timely one.  Purchased a car recently and received my insurance information in the mail today.

 

Our annual premiums are $574 for this car for the year.  Here are some figures:

 

Comprehensive: $60

Collision $215

Property Damage: $104

 

So those three are $375 of the $574 are those three items.  Then there's bodily injury at $96, medical expenses at $21, uninsured motorists $59 (this is the no-fault state thing) and a few random items like funeral benefit for $1 and accidental death for $1.  This just re-affirms what I posted earlier, unless you drop most of your coverage messing with the deductible isn't going to result in much savings.  You need to drop collision and comprehensive and maybe move your liability protection down to the legal minimum of $10k or whatever it is.

 

I guess I'd have to echo Eddie Willers, it's the Prius.  $825 for six months is high.  We have three cars (one to be sold) plus an RV and it's $1671 annually.  In other words we're paying the same amount but have full coverage on three newer cars and an RV.

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