Thursday, May 03, 2012

Auto Insurance Sticker Shock

My auto insurance paperwork this morning


Yesterday I received notice of my auto insurance renewal.  The price went up again!

Up until I got my new 2010 Subaru Forester in September of 2010, I was paying around $68.00 a month for full coverage for my previous car, also a Subaru Forester 1998.

I expected my monthly premium to go up and it did, to about $88.00 a month.  My insurance is renewed every six months.  Each time my premium crept up.  My latest premium was $97.00 (I left off the pennies) a month.  So yesterday I was justifiably shocked when I received my new premium notice for $103.97 a month!  Now I was paying over $1,200 a year for auto insurance coverage.

Excuse me?  I have an excellent credit rating.  I haven't had any accidents or moving violations.  I've never made a claim on my auto insurance.  And my rate goes up each six month interval?  Really?

Yesterday at work I check with my boss to see what he was paying for auto insurance.  He told me "around $800 a year." His insurance also included his life insurance!  Like me he said he got a reduced rate because he bundled his homeowner's insurance with his other insurance policies.  I do the same but still have high premiums.

Time to shop around for new insurance.  That's what I did this morning.

I am a member of AARP (of course I am, I'm an Oldie Goldie) and AAA.  I called the AARP Insurance program from The Hartford.  I receive mailings all the time urging me to change insurance but I've always thrown them away, figuring they're all about the same.  Oh how wrong I was.

I called the number for the AARP Insurance program from The Hartford this morning.  What a surprise!

Here's the deal:

They can get me a YEAR of insurance for $566.00.  That is a 54% savings over my State Farm auto insurance policy!  54%!!!!  YES!

I also got a quote for my homeowner's insurance (for which I've never made claim) and they quoted me $574 versus $849 that State Farm was charging me.  That is a 32% savings!

Of course I signed up immediately.  They take care of all the paperwork.  I don't even have to call State Farm to inform them that they were overcharging me.  All I have to do is sign the papers that The Hartford sends to me.

My total savings are $660.06 on auto insurance and $275.00 on homeowner's insurance for a total combined savings of $811.00.  Hey folks, I can use it.

Being retired as I am now, I am living on a fixed income.  I have my part-time job to try and stay ahead of inflation and to indulge occasionally in a few little "extras".  One of the main reasons I moved to Delaware was to get away from the ever increasing school taxes of Pennsylvania.  Now I had a new problem with my auto and homeowner's insurance.  I just took care of that little problem this morning.

Thank God for competition.  At least I can buy some time now with these new insurance policies.

This is a good start to my day.

2 comments:

  1. There's an old adage: you get what you pay for. Make sure you search around the internet to see if and how many stories are floating around about them refusing to pay off on claims.

    ReplyDelete
    Replies
    1. Cubby,

      I know that adage. I considered this aspect before I changed insurance carriers. I knew I was being overcharged bigtime. The same thing happened with me with Nationwide. I was insured with them for years at over $1,500 a year. A co-worker happened to find out what I was paying and she said "Why?" I never thought to question it so I did some checking and found out that I was a prime customer because of my excellent credit rating (high 800's)and no accident history I qualified for a low premium. Do you think Nationwide would tell me that? No way. When I moved to Delaware I had to get a new insurance carrier. A friend recommended State Farm. At first the rates were reasonable but since I got my new car they have risen a total of 53%. That's too much. There was no reason for it. I learned my lesson. There is another old adage. When something costs too much...shop around. Competition.

      Ron

      Delete