Saving on my car insurance
Posted by Frugal on April 24th, 2006
I’m paying $529.60 a year for car insurance on my two cars. It’s probably not easy to pay a lower amount than this. I think there are four major reasons for this low rate:
- Both my wife and I have a clean driving record and zero claim history.
- Our cars are modest and not very new (year 2000 and year 1995 Toyotas). Their values are less than $10K in Kelly’s blue book, and so it doesn’t cost a fortune to insure them.
- We only have liability insurance ($100K/$300K/$100K), and a high deductible of theft/comprehensive coverage. Obviously, I won’t recommend anyone to have liability only, unless the cars are not very new, and also you can afford to lose the cars in an accident. It means that you are financially capable of replacing a lost car, without causing hardship to your life.
- The fact that we don’t drive or commute a lot of miles helps lowering the rate. If you get online quotes, one of the advantages is that you can play with your annual mileage and see what’s the range of mileage that will put you to the next bracket of insurance rate. The lowest rate bracket at most insurance companies seem to be at 0 to 7500 miles. But you don’t want to have your claims denied only because you put down some out-of-whack mileage numbers on the insurance policy.
- I shop for a good deal on my car insurance. I got very competitve quotes from www.insurance.com, but I ended up using Costco’s.
If your car insurance rate on a per car basis is cheaper than mine, please leave a short comment. I would be thrilled to hear from you.
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April 28th, 2006 at 3:32 am
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June 15th, 2006 at 3:22 am
It’s important to realise that there are more things to be taken into consideration when you have an accident than who was at fault. The insurance company will be looking out for other factors that may have contributed to the accident – bald tyres for example, or worn down brakes. And it won’t be just your car they’ll be looking at – they’ll need to be sure that you are roadworthy too – specifically when it comes to your eyesight.
December 27th, 2006 at 12:38 pm
Insurance market is ever-changing. There are special discounts every year, new companies enter the market, etc. I can suggest everyone to check out Wawanesa, which offers affordable car insurance rates.
June 25th, 2008 at 9:26 am
Nine plus nine all fine.
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