There are quite a few areas where I know I’ve made mistakes in my financial past. For instance, I know I bought more house than I needed. That’s a mistake that costs me unnecessarily on utilities, property taxes, and insurance. A downgrade is a real possibility, and perhaps the topic of a post in the future.
But I recently found a much more subtle mistake that was costing me without even thinking about it. While evaluating my largest annual costs, I took a closer look at my insurance. What I found was pretty staggering.
I wasn’t quite sure what was normal for insurance on a home and two cars, but I felt like I was getting screwed. But I’d been with my previous insurance company, American Family, for years and hadn’t been given any reason to change. My wife and I are safe drivers and smart home owners. Outside of getting side-swiped by an old man running a red light more than a decade ago, we had filed no claims, had no tickets, and always paid on time. The perfect customers.
So I gave American Family the benefit of the doubt, and reached out to my agent. I laid out the argument above, and asked what they could do to lower our monthly premium on home and auto. They came back with a “new plan” that could save me whopping $30 annually. So I took to the web to get some estimates.
And it’s good thing I did.
First stop was Geico. Next stop was Allstate, then Esurance, and so on. I gathered 7 quotes, and the results were pretty staggering.
After weighing the options, I landed on Allstate. Below is the cost breakdown of the annual premiums for home and auto:
So with a combined savings of $741.20 (or 22.8%), Geico was right. 15 minutes COULD save you 15% or more on insurance.
Moral of the story is, don’t wait a decade to look at your insurance costs. Look every year. I know I will.