I hate when I get the letter about car insurance renewal. They ALWAYS increase the price, even if you didn’t claim a thing, even though your car is now 6 or 12 months older. In years past, I would fuss and then figure out how to come up with the additional money. Since our financial awakening through Dave Ramsey’s Financial Peace University including a conversion to a budget and focus on paying off debt, that letter is now a calling card to find a better deal!
To save my monthly budget, I now use www.answerfinancial.com. This site serves as your own online insurance broker. After inputting information about you and your driving record, your vehicles and loans, and your current coverage, quotes are offered. You select the one you want and finish the process with the company. It’s pretty simple. I just completed the process in about an hour and was able to save over $300 by implementing some of these smart money tips:
- Drive safely. A history of accidents, even one, increases your premiums.
- Increase the deductible to lower the premium. Deductibles range from $250 – $1000 on standard policies. The higher the deductible the lower the premium. Only increase the deductible if you have savings to cover it.
- Pay the cost in full to eliminate the interest charges. This can save $150-$300 a policy period.
- Always shop around! Never settle for the renewal price until you do the research.
So the next time you get that dreaded letter, don’t settle. Shop! And you too can be on the path to financial peace!