Saving On My Car Insurance

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:

  1. Both my wife and I have a clean driving record and zero claim history.
  2. 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.
  3. 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.
  4. 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.
  5. I shop for a good deal on my car insurance. I got very competitve quotes from, 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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