Our insurance costs for auto and home have been killing our budget. It is one of the categories in our budget I have identified as HOT. The goal is to save money!
Well this became even more important when I received our homeowner’s insurance rate for next year. Our current policies for auto and home are with Safeco, A Liberty Mutual Company. Our policy renews in December. Our rate increased from $1560 to $1700. This is the second year of an increase. Last year it went up from $1400 to $1560. I was so appalled by the new figure, I decided it was time to shop around and find the best rate.
I spend Sunday afternoon filling out online quote forms. Today, it seems like every single insurer called me. I have received quotes from Geico, Nationwide, Progressive, and Allstate. Allstate has been the best quote so far. Below is the situation.
Allstate’s homeowner’s insurance beat Safeco’s policy. It is $908. The deductible is 1% of the home value. I have requested a second quote with a higher deductible to see the savings. At $908, switching to Allstate is a no brainer.
Allstate’s car insurance is also lower. Right now our annual premium with Safeco includes comprehensive/collision coverage for a whopping $2060 with a $500 deductible. Yes! Crazy amount. My husband turned 26 and I turned 25 in the past couple months, so I believe our new rates reflect our aging age! Allstate’s rates are lower. As you can see the same coverage with $500 deductible is $1538. Savings, but it’s not high enough savings for it to make a real difference in the budget. So, I requested a second quote for a higher deductible. The $1000 deductible equates to a $1344 premium. $192 difference. I would make that savings up by not having any claims in 2 years.
So HERE IS THE DILEMMA. If I drop comprehensive/collision coverage, my premium goes down to $716. That is a $1344 difference from current policy and a $628 difference from 1000 deductible.
Our KBB book values are at the top. The money we would save, would establish the new car fund. In just 3 years, the fund would be $1884 from the savings. The risk is if something happens and it’s our fault, the damage to our car would not be covered.
Any advice for a fellow blogger considering this move?