Car Insurance: 6 Ways to Save Money and How I Saved Over $400

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Jonathan graduated with a degree in Business Administration from Ouachita Baptist University. He also holds a Masters in Business Administration from the University of Texas at Arlington. While he works for a contractor buying specialized tools, his passion is personal finance, frugal living, blogging, and stewardship.

Car insurance can sometimes be a headache right? This week I was determined to shop around for better pricing and coverage. So I gave Wells Fargo Insurance a call.

A couple years ago we switched from Framers Insurance to Progressive through Wells Fargo and cut our car insurance bill in half. I decided it was worth giving it a try again this year as our car insurance expires this month in February. I must say I was pleasantly surprised!

We have had a couple accidents in the past few years and so our insurance premiums have gone up with Progressive. I thought there was no way I could get better coverage or get a reduced premium.

Our policy with Progressive that covered $50,000 per accident, $100,00 per occurrence per period, and $50,000 total property damage per period.

Progressive was asking for $1004.00 for 6 months. We typically have paid every 6 months our car insurance to get a discount. Since we set aside about $120 a month for car insurance, we had the money saved up in our sinking funds.

Still, I called Wells Fargo Insurance and spoke to Kawane Singleton. Kawane (pronounced “Quon”) was very attentive and patient as I asked many questions. We probably spent over an hour on the phone.

The first carrier would not approve us as we had more than 1 accident over a 5 year period. The second provider, Traveller’s, was the ticket though. They approved us so we upgraded our coverage to $100,000 per accident, $300,000 per occurrence per period, and $100,000 total property damage per period.

We decided to drop one of the older vehicles full coverage insurance and just get a liability policy on it. It is a vehicle I primarily use for work. We have saved up enough to replace it with our sinking funds should something happen to it.

The total cost with Traveller’s was $1,595.00 for the whole year!

We also got a better policy that doubled the coverage on the family van too!

All for $413 less than what we would’ve paid with Progressive.

Wells Fargo Insurance provides multiple quotes by using companies like Traveller’s, Progressive, SafeCo, Hartford, 21st Century, Allied, etc.

Wells Fargo NEW logo

Kewane Singleton
Personal Insurance Agent | Wells Fargo Insurance
Tel: 612-594-5699
Fax: 1-877-869-6339
Email: Kawane.Singleton@WellsFargo.com

Or you can also call toll free 1-866-294-2571 if you would rather contact Wells Fargo Insurance directly. Please let them know Jonathan Key suggested you contact Wells Fargo.

Here’s 6 Ways to Save Money On Car Insurance.

Save Money on Car Insurance

1. Shop Around for Car Insurance Every 6 or 12 Months

Car insurance rates vary from one company to another on the same exact coverage terms. I would recommend using a company like Wells Fargo Insurance or a local insurance agent to get quotes from at least three insurers. But don’t shop on price alone: Look at the company’s reputation and its customer satisfaction ratings.

2. Drop Collision and Comprehensive Coverage on Older Cars

For older vehicles, it may not make sense from a financial standpoint to pay insurance premiums to maintain collision and comprehensive coverage. Typically, it doesn’t make sense to buy comprehensive and collision coverage for a car worth less than $1,000. Also, if you have saved up money in an emergency fund or sinking fund towards the purchase of a new vehicle you might consider dropping comprehensive coverage on older cars.

3. Consider Higher Deductibles on Collision and Comprehensive Coverage

Your deductible is the amount of money you owe prior to receiving money from your insurance provider. Higher deductibles typically mean lower premiums. For example, increasing your deductible from $250 to $1000 on collision and comprehensive coverage could save you up to 40 percent. Just ensure you have saved up your deductible in your emergency fund or with a sinking fund.

Liability insurance is required by law. There is no deductible on liability insurance. This means if you are at fault in an accident and someone files a claim against your insurance, you are not responsible for paying anything toward that particular claim. This will typically result at increase premium rates when you renew your insurance policy.

4. Take Advantage of Low Mileage Discounts

Many car insurance companies offer discount savings to drivers who put fewer than a preset number of miles on their vehicles each year.

5. Ask About Car Safety Discounts

Ask your provider about car safety discounts. Many insurers give discounts for car alarms, antilock brakes, air bags, and other car safety features.

6. Ask About Other Car Insurance Discounts

There are many discounts out there available. These will typically vary by insurance company and state. Periodically review your policy to see if you might be missing out on some discounts.

Biggest discounts typically include:

  • Good student discount – if your teens get good grades.
  • Marital status – being married in this case.
  • Low annual mileage – a vehicle that doesn’t get much mileage will often get you a discount.
  • Use of car for personal use.
  • Having another type of insurance policy with the same insurer.

Of note many auto insurers will give discounts if you buy two or more types of insurance from the company. This is known as bundling insurance. Policies that are typically bundled are home owner insurance, boat insurance, motorcycle insurance, RV insurance, and of course car insurance.

Disclaimer: The opinions expressed in this article are my own. By contacting Keane Singleton or Wells Fargo Insurance the author may receive a $25 gift card to Target for up to 8 contact leads.

Further Reading:

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When was the last time you shopped around for car insurance?

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About Jonathan Key 112 Articles
Jonathan graduated with a degree in Business Administration from Ouachita Baptist University. He also holds a Masters in Business Administration from the University of Texas at Arlington. While he works for a contractor buying specialized tools, his passion is personal finance, frugal living, blogging, and stewardship.

36 Comments

  1. Great tips – we have started doing this about every 18 months – mostly because our lives are too busy to do so more often. It does end up helping quite a bit. I had to remind myself that the companies are in business for profit first, not my well-being, and I have to be a smart consumer, even with insurance.

    • Marissa, shopping around every 18 months is a good idea too. It’s so true that companies are in business for profit first and the customer second. Glad you found this helpful! Thanks for reading!

  2. Nice article and great score! We have been using one of DR’s ELP’s for about 2 years now for auto insurance and it’s been pretty good. It was amazing that I could get way more coverage for less when we started shopping with a broker rather than an agent! Those savings will definitely help you towards your next baby step!

  3. These are some great tips to note & it is awesome to hear you saved almost 400 on that. Low mileage discounts are something we always look for & I think it is time to look for those special discounts as well.

  4. Very useful article Jonathan! We’ve using AXA for the last few years and guess what this year we changed to anotner provider coz they increased our premium by £150 and claim its the costs and they gotta pass them on. We shopped round and got it £112 cheaper than our outgoing AXA price..sweet! It was amazing that we could get way more coverage for less when we shopped a bit online after ensuring our cache was cleared with every result. Those savings will definitely help you towards your next trip!

    • Hi Bismah thanks for checking out the blog! Yes, it can be quite amazing to see the exact same coverage offered at a fraction of the price at another insurance provider. Thanks for reading and commenting!

  5. My insurance broker is a godsend! I never would have discovered Travelers without her. I have had great coverage and even BETTER prices through them. <3 Pinning stumbling and tweeting this post. Happy Wednesday!

  6. Some awesome tips, Jonathan. I just want to add that you can obtain discount when you park your vehicle in garage specially at night. The insurance companies love the fact that you care your vehicle. Specially, if you live in a crime prone area, then garage your car and let your provider know as well.
    Mike N. recently posted…Get Affordable Motorcycle Insurance at 18My Profile

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