-
My Car Insurance Makeover
9
January 18th, 2010Budget, Car, Law School, PF LessonsFinancial Goals for Spring 2010
- Make my 2010 Roth IRA Contribution
- Roll over 401(k) from my holiday job to a Roth or transfer it to my brokerage
- Find more affordable car insurance before February 11
- Obtain a credit report from one of the three agencies
- Budget/Keep track of my expenses
- Diversify my investments
Come February, I will be covered by Geico. The gecco offered me an unbeatable rate for liability insurance for my 1997 Honda Civic with 150k miles on it. I never had full insurance coverage on a car. This was a terrible decision for my first car since I wrecked it within 3 months of getting it but since I am a more experienced driver the libility-only mode of coverage has worked well for me. Also, since I live in DC, I have alternative options for transportation. I live near two bus stops and while the metro is not very close it is a doable 15-20 minute walk.
Before
Nationwide Insurance
- 6 Month Premium = $241.36
- Per month: $40.22
After
Geico
- 6 Month Premium = $138.80
- Per month: $23.13
Total Savings:
- Per month: $17.09
- Per year: $205.12
I have been with Nationwide ever since I started driving. We’ve been together for a long time but its now time to move onto greener pastures. So, why the big savings? It wasn’t all about Geico’s “15 minites or more could save you 15% on your auto insurance,” rather “Not having your paret paying for your car insurance can substantially lower your insurance premiums.” The payment I made with Geico recently is the first time that I paid for car insurance because my parent has been paying my insurance all these years. When someone else is paying for it you take it for granted and don’t compare shop as you would with your own money. I didn’t notice the amount since I had no reason to. I didn’t even find out what my actual insurance was until I called Nationwide to find out my monthly rate so I could do some comparison shopping. I am glad that I took the time to compare my rate and make the switch. I only wish I had done it sooner.
How fabulous is my car insurance makeover? Do you always compare shop? What about when you were younger and you were using your parent’s money?
Tags: Car, Car Insurance, Geico, Insurance, Switching to Geico
8 responses to “My Car Insurance Makeover” 
-
I have Geico and have been a very happy customer. I’ve been in a few accidents (most not my fault) and they’ve been so easy to deal with. Everyone has been superhelpful and I don’t feel like I’m dealing with a horrible buracracy like I do with some of my other billers (Comcast, for example). The other thing to check with Geico is if you can get a further discount for any organizations you are affiliated with (college, work place, professional organizations, fraternity or sorority, etc.).
-
We’re also with Geico, but we haven’t been in any accidents yet to rate how they handle things.
When I was in my early 20s, I was part of my parent’s plan (I think Allstate). But then around 26, I went with Progressive, and just 2 years ago we switched to Geico.
You are correct in checking every year though, that’s the best way to keep a nice low rate!
-
@MeinMillions & @MoneyReasons
Wow, it seems everyone has Geico. I had a small accident a few years ago but the payout was under $1,800 so they didn’t count that and gave me a 5 year good driver discount.
@MeinMillions
You’re right that Geico gives you an additional discount if you are with a group. I looked at their list of groups and I belonged to none, but I choose a sorority anyway and no one asked me for any follow up information such as a membership number. Of course, I “forgot” about this little detail in my post! -
How funny, I just posted about my car today!
I’ve had such good experiences with Progressive (they’re great about dealing with accidents quickly) and I haven’t found an offer with a significantly lower rate, so I’ve stuck with them for the past few years. Although I like having the warranty and low mileage that my current car has, it would be nice to cut those insurance payments down!
-
I have Nationwide, because that’s what my parents have had for years and so it was easy to sign up. For my rental insurance (about $10-12/month) and car, my insurance just went up to $114 a month. I’ve never had any accidents and drive a car with 160k…why is it so high?!!? Guess I need to shop around.
-
@Bethany,
Welcome to the site! Your rate also depends on your geography. The DC/MD area is very expensive for car insurance so I keep it registered at my Home State. I believe that helps with my rate. I am approaching 160k on my car too.
-
I was under the impression that your car insurance depended on where you lived… can you keep your car registered at your Home State even though you drive it in DC area?
I recently (actually, just today!) checked with my insurance carrier too. Got a lower rate because my yearly mileage was revised downwards. They’ll even send me a check for the overpayment for the past few months.
-
@WellHeeled
This isn’t something I disclose to my insurance carrier. But, as a full time student and a technical if not a year round physical resident (license, voter registration, taxes paid etc…) of my Home State I use my Home State address for insurance purposes. The argument would become much weaker once I start working.
1 Trackbacks / Pingbacks
-
Tweets that mention See Jane Get Rich » Blog Archive » My Car Insurance Makeover -- Topsy.com January 20th, 2010 at 20:04
[...] This post was mentioned on Twitter by See Jane Get Rich and Tonya Harmon, Georgia Chadwick. Georgia Chadwick said: See Jane Get Rich » Blog Archive » My Car Insurance Makeover http://tinyurl.com/ybja2q9 [...]
me in millions January 18th, 2010 at 21:41