I Just Saved a Bunch of Money on Car Insurance…
Author: Nick
Category: Money
Topics: frugality, transportation
…by switching from GEICO.
I’ve been with GEICO for my car insurance for almost as long as I’ve been driving. They’ve been the cheapest for me time and time again when I go on a quest for better rates from other insurers. Of all the times I would’ve expected another company to come along and beat GEICO’s rates, I didn’t think it would be now… or anytime in the next couple of years.
That’s because, roughly 15 months ago, I had a tiny (big) meeting (traffic stop) with a police officer (harbinger of doom). On just my second trip in my brand new MINI Cooper, I had a bit of a mix-up between my miles per hour readout and my miles per gallon display. Long story short, I easily shattered all notions of a speed limit on a lovely little country road. Lesson learned; I now drive like a little old lady… one with a couple of points on her license and a few more locked away thanks to a judge’s parole deal.
After that incident, I feared my upcoming 6-month bill from GEICO like I fear extremely tall women (a story for another day); but instead of a brain-meltingly insane rate hike, I instead received a significant drop in my insurance premium. At first I wondered if I might have free insurance under GEICO’s apparently reverse logic had I instead crashed into a school bus full of nuns on their way to take care of abandoned puppies, but I just considered myself lucky and forgot all about it.
I also forgot to get my usual periodic rate quotes from other insurers since I assumed no other company would demonstrate GEICO’s forgiveness of my sins. It was only when my alma mater sent me notice of their new favorite car insurance company, Liberty Mutual, that I even dreamt of pursuing new rate quotes. Even then, it took the bribe of a $5 Visa Gift Card to get me to pick up the phone and call Liberty Mutual.
And that’s just what I did on Saturday. A few phone calls later, I had a policy with Liberty Mutual (no other insurer that I called could beat their offer) ready to take effect as soon as GEICO’s is up in July. My savings? See for yourself…
Current GEICO rate: $698 (every six months) x 2 = $1,396/year
New Liberty Mutual rate: $1,006/year
Even my minor automobiling miscalculation wasn’t enough to deter Liberty Mutual from absolutely annihilating GEICO’s rate (which I re-quoted at minimal savings). Oddly enough, two other companies also came in under GEICO’s re-quote.
Another lesson learned. Even if you run your vehicle through a Nativity scene and your insurance rate comes out unscathed, don’t let it stop you from seeking better rates whenever your policy comes up for renewal. I may have been paying too much for over a year now, but that’s not a mistake I’ll make again.
And neither should you!
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37 Responses »
1.
mapgirl
May 15th, 2006 at 8:12 am
Me too!
Liberty Mutual sure knows how to target an audience through those alumni solicitations!
2.
BD
May 15th, 2006 at 8:21 am
If you live in California or Oregon, check out Wawanesa (a company named after the town in Canada where it was founded). They don’t advertise at all but I’ve found they have the best rates around – and they get positive reviews from customers who file claims, too.
3.
Andrew
May 15th, 2006 at 5:18 pm
My past roomate and good friend had insurance through Wawanesa and raved about the price. Of course he drove a Ford Festiva with a 4 mile round trip drive to work. But seriously they do offer great prices.
4.
Obbop
October 12th, 2007 at 11:53 pm
Using cost alone as a basis for buying insurance seems overly-simplistic to me.
There are other considerations that should also be factored into the equation when determining what firm to go with.
5.
Carte di credito
May 23rd, 2009 at 2:29 am
Hi, it’s nice that you are going to save some difference amount from your insurance expense. Exactly we become so much attached with the service providing company that we dare to compare them with others but it is not the right way we should always get reviews of the lattest rate of the market. May be some one who can provide you same or more better service at low cost.
6.
Car Insurance Quote
May 31st, 2009 at 6:54 pm
We get annoyed with those commercials quite often and it’s sad that for many, as your blog points out, find cheaper rates online for auto insurance. As long as you take the time to compare your car insurance every six months or annually at the minimum, you should always be able to find better rates. One thing we did want to point however was that now many insurance companies are offering discounts depending on how long you’ve been a customer. Some even offer accident forgiveness if you’ve had coverage with them for at least a year. I don’t know if you’ve even been involved in car accident, but typically an insurance company will raise your rates through the roof. After an accident, it can be pretty difficult to get cheap insurance.
7.
European Breakdown Cover
June 1st, 2009 at 7:59 am
Bottom line is always shop around. I have been with Elephant for about 3 or so years and they have always been the cheapest for me so far. That doesn’t stop me from having a quick look around though when renewal time comes around. With 6 points on my license though, I would be suprised to find any insurer THAT forgiving to ‘qoute me happy’ (to qoute a popular phrase…)
8.
payday loan
June 4th, 2009 at 11:16 am
thanks for the great blog!!
9.
car insurance quotes
June 8th, 2009 at 12:40 am
you always have to shop around for good insurance. I like geico and everything about them.
10.
Insurance Plus
September 28th, 2010 at 9:38 am
It always pays to shop around a little for your car insurance. A little persistence can pay off with a Cheaper Auto Insurance rate.
11.
autocarez
October 12th, 2010 at 4:04 am
what??
Current GEICO rate: $698 (every six months) x 2 = $1,396/year
New Liberty Mutual rate: $1,006/year
wow thats a decent of money. but im agree with ya
12.
financialratios
October 12th, 2010 at 4:06 am
hey autocarez, what you talking about? the insurance is kinda nice. are you a poor or something? may i help you? lol
13.
DanAlexander
November 18th, 2010 at 5:39 pm
I compared home insurance this year and saved close to $1000!
Saved $250 on auto…
You can be sure that your carrier won’t call you and tell you that you could pay less
14.
دليل
November 30th, 2010 at 2:20 pm
There are already special and liked it a lot because it contains wonderful information
15.
Sam Allgoode
December 2nd, 2010 at 5:09 pm
Great story! I think the key take-away here is to compare, compare, and compare! I had a life insurance policy here in the UK for 5 years with a big name company — decided to go online to compare rates (I used http://www.bestlifeinsurance.co/ ) and was SHOCKED to have the broker tell me that the could get me a better rate at my current company! I ended up saving about hundred quid a year – maybe not much for some, but a couple of nice dinners for my family!
16.
potenciador sexual
December 20th, 2010 at 10:09 am
past roomate and good friend had insurance through Wawanesa and raved about the price. comprar maxidus
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young drivers insurance
April 14th, 2011 at 3:26 pm
I just switched from GEICO as well to Costco (yes, the warehouse Costco) and saved a ton of money. Looks like I’m not the only one with this experience.
20.
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April 27th, 2011 at 1:48 am
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May 14th, 2011 at 2:46 am
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cheng@car insurance
June 14th, 2011 at 2:47 am
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September 14th, 2011 at 8:46 pm
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30.
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March 12th, 2012 at 8:23 am
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Liquor Delivery
March 13th, 2012 at 6:39 am
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March 13th, 2012 at 7:11 am
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March 15th, 2012 at 4:01 am
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JFK Airport limousine
March 23rd, 2012 at 2:13 pm
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