Car Insurance: How I’m Saving $428

GeicoA couple months ago I finally had it with my car insurance bill from State Farm.  In the past year my bill had gone up by $300 and for no good reason.  We are safe drivers with no driving violations ever and we don’t put very much mileage on our cars.  So I decided to call my agent.

Dealing with State Farm

When I spoke to my State Farm agent he didn’t have much to say other than, “oh rates have gone up in the state and there is really nothing I can do. If you want you can install the Drive Safe and Save in your cars”.  This is a program where they collect data about your driving then use that information to calculate your discount which can be up to 50%. However, you have to sign up for or have one of these already in your car, OnStar, In-Drive or SYNC.  My vehicles do not have any of these programs so I would have to sign up for In-Drive, which is free for the first year and then $6.99/month after that.  This sounded like to many hoops to jump through just to see if I would get a discount.  I was not feeling it.  I mean, isn’t our driving records enough now a days?

I decided not to sign up for the program and so I increased my deductibles to lower my rates.  I wasn’t happy about it and was ready to look elsewhere.  I felt like State Farm wasn’t really doing much to keep me as a customer even though I have had a clean driving record my whole driving life.

My Switch to Geico

A couple weeks ago my sister told me she got an excellent  car insurance rate from Geico. Of course I had seen all the commercials promoting the save 15% on car insurance in 15 minutes but I had never seriously considered them. So, I headed over to their website and got my quote.  I ended up getting my car insurance policies with more coverage and lower deductibles at a 36% discount compared to State Farm.  Wow, can’t beat that deal!  I jumped right into transferring my policy with them.

My 6 months savings with Geico will be $428.  I guess I can now say that phrase, “I just saved a bunch of money on my car insurance by switching to Geico”.  🙂 They also told me if my driving record remains the same then my policy rate will not go up.  We’ll see about that, but for now I’m feeling pretty happy about my savings.

I plan on using that money to replace the tires on my car which I noticed this weekend are pretty much done.  It’s been 4 years since I last replaced them so it’s definitely time.  I was thinking of checking out the tire shop at Sam’s club since I read that they have good prices.

I still have my home insurance with State Farm so we’ll see how it goes with the rates now that I switched my car insurance and no longer qualify for the discounts I was getting for bundling up.  I’ll definitely consider Geico if my rate goes up too high with State Farm.

Have you ever tried Geico? Do you have any recommendations on where I can buy my tires?  

Photo by: Flickr

Comments

Car Insurance: How I’m Saving $428 — 32 Comments

  1. Congrats! That’s a material amount saved and definitely is something to be happy about. I don’t think we’ll ever switch (maybe I shouldn’t say that publicly haha) because both my wife and I really like our agent. When my wife’s car got broken into at college the agent really took control of the situation and remedied it. She also talked to me for over a half hour after there was a big storm in our state that caused water to enter our basement.
    DC @ Young Adult Money recently posted…4 Ways to be Better Prepared for Taxes Next YearMy Profile

    • Yes, seems to me the agent didn’t really want to work at keeping me as a customer.

    • It’s all a matter of paying attention to your finances. I bring a lot of value to a car insurance company because I’m a good driver. Don’t know why State Farm didn’t fight to keep me happy.

    • It’s definitely worth shopping around. You never know how much money you could be saving with a different provider.

    • Really? I guess they all play these tricks. It’s ridiculous! Why wouldn’t they want to keep us good customers happy?

  2. We switched to Geico a year ago and it saved a ton of money. We also took advantage of homeowner’s and an umbrella policy, so it was huge savings across the board. At renewal this year, our auto insurance went up a ton. Most of it was because I got two speeding tickets. I haven’t had one in over a decade and got two withing a couple of months. Not sure what was going on there, but those were my fault. They told me how much that accounted for but blamed the rest on standard rates going up for everyone in Colorado. I priced out with Progressive and it wasn’t a whole lot different, so I sucked it up and paid. It still saved lots on the homeowner’s to stick with them. Moral of the story is drive the speed limit!
    Kim recently posted…Eyes on the Dollar Special Announcement, Plus a New DesignMy Profile

    • It will be interesting to see what rate I get in six months or a year. My rate with State Farm stayed the same for a full year then they increased it first $150 and then another $150. Yeah, those tickets are a stinger because of the points in your license, at least that’s how it works here in Jersey. It last about 5 years on the record so not only do you pay a hefty fine but you then have to pay higher rates on your car insurance.

  3. That’s awesome Raquel! Where will that extra money go? I went through all the work of switching insurance last year and saved about $700 a year on car/home insurance. It really pays to shop around once in a while. We try to do it once per year whenever we get our insurance renewal papers.
    Thomas @ i need money ASAP! recently posted…Busking For MoneyMy Profile

  4. We got the very same spiel from our AAA agent. The cars kept getting older, we kept increasing the deductible until one day l decided to try Geico. It was insane the difference! Like just over $750 difference on both cars. We couldn’t believe it either. We had gotten lazy over the years and believed because it was AAA, we were getting the best price. We switched. We never had a claim prior but had a hit and run whilst with them, and they took care of it pronto (replaced the bumper). These companies spend more money recruiting new customers and end up screwing over their old customers.
    Kemkem recently posted…How to pack for short trips – 6 tips to helpMy Profile

    • I had stayed with one company for a very long time as well but I probably could have gotten a better deal elsewhere. It’s definitely nice to have several options for car insurance.

    • We didn’t have to deal with two cars for a while because my husband worked in NYC for 10 years and commuted via train so that was nice. Though the cost of mass transit was getting expensive as well.

  5. Congrats on being able to save so much on your car insurance. I’m pretty convinced it’s at least partially a scam! As a male driver under the age of 25, I have no tickets or accidents and my car is now 10 years old but my insurance went up. Shouldn’t that cost the insurance company less to insure me?! They also told me it won’t really go down when I’m 25. I definitely plan on shopping around this Summer and taking a defensive driving course for the discount.

    For tires it seems that local places always have a better deal for me than the big clubs, but I do recommend researching on tirerack.com and discounttire.com, they are good for finding reviews and comparing warranties, etc. When you narrow it down you can even google for specific reviews of those tires depending on who sells what tire near your location.
    Debt Hater recently posted…Fairy Stone State Park ReviewMy Profile

    • Thanks for the tips on the tires. Sometimes I wonder the same regarding car insurance. I’m not sure why someone who has a degree and is married gets a discount. I guess that makes people more responsible?

    • Perhaps if I had a more caring agent I would have stayed but why pay so much more if I’m not even getting good service.

  6. That’s a great amount of savings. Really shows that you have to look at these things periodically. I’m pretty happy with our vehicle insurance right now. We’re with The Personal. Not our home insurance though which is with State Farm. We had a big claim in 2009 due to freak storm which flooded our basement (sump pump couldn’t keep up). Apparently we can’t switch until 5 years after that claim. That can’t come soon enough.
    debt debs recently posted…7 things about Jim Flaherty and why do I care?My Profile

  7. Wow, Raquel, great job!! It’s amazing how much money you can save on insurance by shopping around. When we looked for this house, our long-time agent with a certain big-name company quoted us a rate that was $800 a year higher than the rate we got through the guy our mortgage rep recommended. We switched and haven’t looked back, even though we’d been with our other company for a decade and a half. They just couldn’t match up.
    Laurie @thefrugalfarmer recently posted…Our “A-ha” Money MomentMy Profile

    • Thanks. Sounds like you found an excellent deal too. I don’t know why these companies raise prices on loyal long time customers. It should be the opposite.