When I first moved to Texas I was floored by how much car insurance cost me per month. At that time I was an Airman (E-2) in the Air Force making slightly over $1000.00 per month. My first insurance company was charging $407 per month for car insurance. I could understand if I had a convertible 6 cylinder but no, I had a 2 wheel drive truck that did not go over 90 mph. As I shopped around from company to company the price was lowered but only slightly. As my age increased, a speeding ticket was removed from my record and my driving record remained impeccable my monthly charges decreased. However, my monthly payments were still fairly high even at 24 years old. I waiting patiently for my 25th birthday for that large drop in insurance. When I turned 25 a few weeks ago, I eagerly called my local agent and proclaimed my age!
“Let’s see what we have here” my agent said.
“OK, looks like we do have your birthday discount in there, but the company has raised your rates in other area’s.”
At this point I asked “Well, what do you mean they raised it in other area’s? I’m trying to do the budget for July, how much did it go down per month”
Her response irritated me. After a long elaboration on raising this, lowering that and a bunch of other magic math she stated “Your rates were raised $8 dollars per month”
WHAT?!?
Just turning 25 does not necessarily mean you will be receiving a discount on your car insurance. As she elaborated further I remained calm and opened up a few “tabs” in Firefox. I started browsing to the various insurance sites to get new quotes. Turns out, going back to USAA the company originally responsible for charging me $407 dollars a month for my truck would save me over $130 per month with two vehicles now that I was a veteran of two wars and 25 years old. You should never feel commitment towards any company just because you have been with them for a period of time. Always shop around for car insurance. I regret not doing it sooner, who knows how long I had been over paying ALLSTATE!
I only wish this was made up but it is not. This was a true account of what happened to me only 2 weeks ago. It has inspired me to write a new article on Friday about shopping for car insurance. I hope this inspires all of you savvy consumers, spenders, and savers to strongly consider your bills and the value of shopping around for cheaper prices. Just because the price is cheaper may not dictate the quality either. For instance, I have more coverage now with USAA than I did with ALLSTATE for much less!
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