I love talking about investments that can make you lots of money. But you know what I love even more? Simple strategies that can SAVE you lots of money with very little effort.
After all, even the safest investments carry risk. Meanwhile, some money-saving strategies can end up putting a lot more cash in your pockets with absolutely ZERO risk!
Take car insurance. Despite all the commercials and billboards featuring ducks, geckos, and crazy comedian ladies, I hadnt shopped around in five or six years.
But when we changed up our households car assortment and our premiums shot up substantially — I decided to see what other carriers could do for me.
At the risk of sounding like an ad, the process literally did take just 15 or 20 minutes with each company I investigated. Yet the savings were massive
Progressive ended up being 30% cheaper than Liberty Mutual.
Meanwhile, Geico offered the same level of coverage at 58% less cost!
Needless to say, I switched.
That process was perfectly simple, too.
And the difference between the price quotes has literally meant thousands of dollars back in my familys pocket over the last couple years.
Now Im about to do a fresh comparison check especially since Ive seen ads for a new type of insurance company called Metromile that charges based on the mileage you actually drive rather than estimates you provide. Esurance also offers this type of insurance as well.
Anyway, the point isnt that you will see the same type of results I did or that one particular carrier is always the lowest option.
That isnt the case at all. A lot will depend on your location, driving history, car assortment, mileage being driven, and a million other factors.
The point is that if its been a while since you last shopped for home and auto insurance, do it as soon as youre done reading this article.
Also realize that car insurance has all kinds of variables you can control.
Obviously theres no way for me to tell you what particular aspects your situation requires, or even what items or choices your state mandates.
What I can say is that you should look carefully at these inputs for two big reasons…
Big Reason #1:
You might find new ways to save money even with your current carrier.
For example, a lot of people have roadside assistance through their cars warranty or AAA, yet theyre paying for the same service on their insurance policy.
They may also be paying for rental reimbursement when they have extra cars that could provide transportation in a pinch.
You might even find that youre paying for extra medical coverage that is redundant with your healthcare insurance.
Big Reason #2:
You have to use these same inputs when you get competitive quotes.
If your current policy has $500,000 in liability coverage and a $1,000 deductible theres no point in comparing it to a quote that has $15,000 and $250, respectively.
It seems like common sense, but youd be surprised how many people make this mistake. Thats especially true since website quoting tools often use different default inputs.
Call me a geek, but I like using one tool and altering the choices for a while just to get a sense of where the biggest savings come from. What Ive personally found is that higher levels of liability coverage cost just ten or twenty dollars more a year. Deductible amounts make a bigger difference since your typical claim is for relatively minor amounts of money.
Obviously, Ive just scratched the surface of this whole topic. But you dont have to make it too complicated if you dont want to.
At the very least, get a little more familiar with what specific variables are currently on your auto and homeowners policies.
Then, take an hour to get comparative quotes from a couple other big, well-known companies.
For that relatively minor investment of time, you might end up getting an immediate return worth hundreds or even thousands a year. I certainly did.
To a richer life,
Editor, The Rich Life Roadmap