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.
Here’s 6 Ways to 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.
- 11 Ways to Quickly Build Your Emergency Fund
- 4 Reasons Why Everyone Should Have an Emergency Fund
- 5 Ways to Grow Your Emergency Fund
- Reduce Your Stress With Sinking Funds
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When was the last time you shopped around for car insurance?