Wednesday, January 11, 2012

Saving on car insurance

  Our car insurance renewal comes up every six months.  We use GMAC though we have used different companies in the past and compared rates, we have been happy with this one for the past three or four years.  The thing that attracted me to this company initially was that they offered a discount of $100 off your premium if you paid it in full before the due date.  The discount amount appears to be less than that now but, still significant.

  Insurance rates are often based on several factors.  Two important ones are your driving record and your credit history.  Both of ours are good and we drive older vehicles so we have lower rates.  We have two '95 Honda minivans, one 90 chevy truck and one 97 civic sedan.  All of them have an average of 200,000 miles on them.  The truck is used as a farm truck and only gets used periodically.  The two minivans are driven to work and the civic has been sitting for over six months because it is our backup car when another one goes down.  My point in providing all this information is that I was wondering how we could save more on our insurance.  Then the thought occurred to me that we aren't using the civic and won't need it for at least six months.  It also has the highest rate of all our vehicles since it is the newest so I decided to drop it from our policy for six months until we need it and then we will add it back on at the next renewal.  That will save us $87 for six months while it just sits in the yard unused.

Update:  I knew I was going to get a refund since I cancelled my coverage before the policy ended but, I wasn't sure how much.  The check came today for $19 so net saved for changing my coverage: $106.

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